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City Council Packet - 02/27/2007 City of Tigard, Oregon • 13125 SWHall Blvd. • Tigard, OR 97223 TIGARD TIGARD CITY COUNCIL MEETING February 27, 2007 COUNCIL MEETING WILL BE TELEVISED 1:\Ofs\Donna's\Ccpkt3 Phone: 503.639.4171 . Fax: 503.684.7297 . www.tigard-or.gov . TTY Relay: 503.684.2772 1 COMMUNITY n CITY OF TIGARD SPAPERS t OREGON 6605 SE Lake Road, Portland, OR 97222 • PO Box 22109 • Portland, OR 97269 PUBLIC HEARING ITEM: Phone: 503-684-0360 Fax: 503-620-3433 The following will be considered by the Tigard City Council on Email: legals@commnewspapers.com Tuesday Februarv 27. 2007 at 7:30 PM at the Tigard Civic Center - Town Hall, 13125 SW Hall Blvd., Tigard, Oregon. Both AFFIDAVIT O F PUBLICATION public oral and written testimony is invited. The public hearing on this matter will be conducted in accordance State of Oregon, County of Washington, SS with the Tigard Municipal Code and the rules of procedure adopt- ed by the City Council and available at City Hall of the rules of I, Charlotte Allsop, being the first duly sworn, -procedure set forth in Chapter 18.390. Testimony maybe submit- depose and say that I am the Accounting ted in,writing prior to or at the public hearing or verbally: at the Manager of The Times (serving Tigard, public hearing only. Failure to raise an issue to person or by let- ter at some point prior to the close of the hearing accompanied by Tualatin & Sherwood), a newspaper of statements or evidence sufficient to afford the decision-maker an general circulation, published at Beaverton, in opportunity to respond to the issue precludes appeal to the Land the aforesaid county and state, as defined by Use Board of Appeal based on that issue. Failure to specify the ORS 193.010 and 193.020, that criterion from the Community Development Code or Comprehensive Plan at which a comment is directed precludes an City of Tigard appeal based on that criterion. Public Notice Item A copy of the application and all documents and evidence submit- ted by or on behalf of the applicant and the applicable criteria are TT10917 available for inspection at no cost. If you want to inspect the file, please call and make an appointment with either the project Plan- a copy of which is hereto annexed, was ner or the planning technicians. A copy of the staff report will be published in the entire issue of said made available for inspection at no cost at least seven?0) days newspaper for t prior to the hearing, and copies for all items can also be'provided 1 t at a reasonable cost.J Further information may be obtained from the Planningd)ivision successive and consecutive weeks in;the (staff contact: Gary Pagenstecher) at 13125 SW HIII Blvd., following issues . Tigard, Oregon 97223, by calling 503-639-4171, or by 9mail to February 8, 2007 gg1yp .tieard-or:g_ov. ZCA2005-00004 q SUNRISE LANE ANNEXATION LUBA REMAND ITEM ON REMAND: The Land Use Board of AppealsfLUBA) C~ held that the City had to choose one of three options regarding the applicability of the Bull Mountain Community Plan (BMCP) and Charlotte Allsop (Accounting Man ger) other Washington County provisions: (1) The City could continue to apply the county regulations, including the BMCP; (2) The City February 8, 2007 r could establish that the City's regulations are sufficient to ensure NOTARY PUBLIC FOR OREGON My commission expire "OV Acct #10093001 Attn: A/P OFFICIAL SEAL Patty Lunsford SUZETTE I CURRAN NOTARY PUBLIC-OREGON City of Tigard COMMISSION NO. 373063 13125 SW Hall Blvd. MY COMMISSION EXPIRES NOV. 28, 2007 Tigard, OR 97223 Size:2 x 11.5 Amount Due $192.05, 'Remit to address above Q Revised 2/27/07 - Added Agenda Item No. 11: Executive Session Revised 2/23/07 - Added Agenda Item No. 6: Update on Library and Police Performance Audit and Added Consent Agenda Item No. 3.5: Approve Intergovernmental Agreement With Oregon Dept. of Transportation for Local Fuel Tax Collection F RD CITY COUNCIL AND L CONTRACT REVIEW BOARD MEETINGUARY 27, 2007 6:30 p.m. IGARD CITY HALL 125 SW HALL BLVD TIGARD.OR 97223 PUBLIC NOTICE: Anyone wishing to speak on an agenda item should sign on the appropriate sign-up sheet(s). If no sheet is available, ask to be recognized by the Mayor at the beginning of that agenda item. Citizen Communication items are asked to be two minutes or less. Longer matters can be set for a future Agenda by contacting either the Mayor or the City Manager. Times noted are estimated; it is recommended that persons interested in testifying be present by 7:15 p.m. to sign in on the testimony sign-in sheet. Business agenda items can be heard in any order after 7:30 p.m. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 503-639-4171, ext. 2410 (voice) or 503-684-2772 (TDD - Telecommunications Devices for the Deaf). Upon request, the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments; and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers, it is important to allow as much lead time as possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling: 503-639-4171, ext. 2410 (voice) or 503-684-2772 (TDD - Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA COUNCIL AGENDA - FEBRUARY 27, 2007 page 1 AGENDA TIGARD CITY COUNCIL MEETING 6:30 PM • STUDY SESSION > City Center Advisory Commission 2006 Annual Report • Community Development Department Staff > Jaywalking Ordinance Discussion • Police Department Staff > Graffiti Ordinance Discussion • Police Department Staff > Status Update - Highway 99W Corridor Improvement and Management Plan • Community Development Department > Balloon Festival Use of Cook Park • Administration Department • EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 7:30 PM 1. BUSINESS MEETING 1.1 Call to Order - City Council & Local Contract Review Board 1.2 Roll Call 1.3 Pledge of Allegiance 1.4 Council Communications & Liaison Reports 1.5 Call to Council and Staff for Non-Agenda Items 7:35 PM 2. CITIZEN COMMUNICATION (Two Minutes or Less, Please) • Tigard Area Chamber of Commerce Representative Ralph Hughes • Follow-up to Previous Citizen Communication COUNCIL AGENDA - FEBRUARY 27, 2007 page 2 7:40 I'M 3. CONSENT AGENDA: These items are considered to be routine and may be enacted in one motion without separate discussion. Anyone may request that an item be removed by motion for discussion and separate action. Motion to: 3.1 Approve Council Minutes for January 23, 2007 3.2 Establish the Fanno Creek Park/Plaza Master Plan Steering Committee - Resolution No. 07-09 RESOLUTION NO. 07-09 - A RESOLUTION ESTABLISHING A CITIZEN ADVISORY COMMITTEE TO GUIDE THE PREPARATION OF A MASTER PLAN FOR FANNO CREEK PARK AND A DOWNTOWN PUBLIC PLAZA 3.3 Reassign City Center Advisory Commission (CCAC) Membership Terms - Resolution No. 07-10 RESOLUTION NO. 07-10 - A RESOLUTION REASSIGNING CITY CENTER ADVISORY COMMISSION MEMBERSHIP TERMS 3.4 Local Contract Review Board: a. Award Contract for Fuel Delivery and Card-Lock Services at Both Captive and Foreign Sites to Bretthauer Oil Company b. Award Contract for the Construction of SW 87ffi Court and Hall Boulevard Sanitary Sewer Extension (Sewer Reimbursement District No. 37) C. Award Contract for the Construction of SW Hill View Street and 102°a Avenue Sanitary Sewer Extension (Sewer Reimbursement District No. 39) 3.5 Approve Intergovernmental Agreement with Oregon Department of Transportation for Local Fuel Tax Colllection • Consent Agenda - Items Removed for Separate Discussion: Any items requested to be removed from the Consent Agenda for separate discussion will be considered immediately after the Council has voted on those items which do not need discussion. 7:45 I'M 4. UPDATE ON 2007 OREGON LEGISLATIVE SESSION WITH SENATOR BURDICK AND REPRESENTATIVE GALIZIO • Introduction: Administration Department 8:15 PM 5. UPDATE FROM METRO COUNCILOR CARL HOSTICKA • Introduction: Administration Department COUNCIL AGENDA - FEBRUARY 27, 2007 page 3 8:30 PM 6. UPDATE ON LIBRARY AND POLICE PERFORMANCE AUDITS, AND AN UPDATE ON THE FINANCIAL AUDIT • Staff Report: Financial and Information Services Department 8:45 PM 7. CONSIDER NAMING THE TUALATIN RIVER BICYCLE AND PEDESTRIAN BRIDGE THE "IC-A-1i'UTS BRIDGE" IN HONOR OF THE TUALATIN NATIVE AMERICAN HEADMAN, IC-A-KUTS • Staff Report: Public Works Department Staff • Council Discussion • Council Consideration: Resolution No. 07-11 RESOLUTION NO. 07-11 - A RESOLUTION NAMING THE TUALATIN RIVER BICYCLE AND PEDESTRIAN BRIDGE AS THE "KI-A-KUTS BRIDGE" IN HONOR OF THE TUALATIN NATIVE AMERICAN HEADMAN, KI-A-KUTS 8:55 1'M 8. REVIEW CITY ENCROACHMENT PERMIT POLICY • Staff Report: Community Development Department Staff • Council Discussion • Council Consideration: Provide direction on a policy regarding structures that encroach into the rights of way, utility easements or other public property. 9:25 PM 9. COUNCIL LIAISON REPORTS 10. NON AGENDA ITEMS 9:30 PM 11. EXECUTIVE SESSION: The Tigard City Council will go into Executive Session to discuss potential property negotiations under ORS 192.660(2) (e) and consultation with counsel concerning legal rights and duties regarding current litigation or litigation likely to be filed under ORS 192.660 (2) (h). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 10:15 PM 12. ADJOURNMENT Omdm\calhy\cca\2007\070227,doc COUNCIL AGENDA - FEBRUARY 27, 2007 page 4 0 Revised 2/23/07 - Added Agenda Item No. 6: Update on Library and Police Performance Audits and Financial Audit and Added Consent Agenda Item No. 3.5: Approve IGA with ODOT AM u onze qty Manager to ign ~r TIGARD CITY COUNCIL AND LOCAL CONTRACT REVIEW BOARD MEETING FEBRUARY 27, 2007 6:30 p.m. T IGARD CITY HALL 125 SW HALL BLVD TIGARD. OR 97223 PUBLIC NOTICE: Anyone wishing to speak on an agenda item should sign on the appropriate sign-up sheet(s). If no sheet is available, ask to be recognized by the Mayor at the beginning of that agenda item. Citizen Communication items are asked to be two minutes or less. Longer matters can be set for a future Agenda by contacting either the Mayor or the City Manager. Times noted are estimated; it is recommended that persons interested in testifying be present by 7:15 p.m. to sign in on the testimony sign-in sheet. Business agenda items can be heard in any order after 7:30 p.m. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 503-639-4171, ext. 2410 (voice) or 503-684-2772 (TDD - Telecommunications Devices for the Deaf). Upon request, the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments; and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers, it is important to allow as much lead time as possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling: 503-639-4171, ext. 2410 (voice) or 503-684-2772 (TDD - Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA COUNCIL AGENDA - FEBRUARY 27, 2007 page 1 AGENDA TIGARD CITY COUNCIL MEETING 6:30 PM • STUDY SESSION > City Center Advisory Commission 2006 Annual Report • Community Development Department Staff > jaywalking Ordinance Discussion • Police Department Staff > Graffiti Ordinance Discussion • Police Department Staff > Status Update - Highway 99W Corridor Improvement and Management Plan • Community Development Department > Balloon Festival Use of Cook Park • Administration Department • EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 7:30 PM 1. BUSINESS MEETING 1.1 Call to Order - City Council & Local Contract Review Board 1.2 Roll Call 1.3 Pledge of Allegiance 1.4 Council Communications & Liaison Reports 1.5 Call to Council and Staff for Non-Agenda Items 2. CITIZEN COMMUNICATION (Two Minutes or Less, Please) • Tigard Area Chamber of Commerce Representative Ralph Hughes • Follow-up to Previous Citizen Communication COUNCIL AGENDA - FEBRUARY 27, 2007 page 2 3. CONSENT AGENDA: These items are considered to be routine and may be enacted in one motion without separate discussion. Anyone may request that an item be removed by motion for discussion and separate action. Motion to: 3.1 Approve Council Minutes for January 23, 2007 3.2 Establish the Fanno Creek Park/Plaza Master Plan Steering Committee - Resolution No. 07- 3.3 Reassign City Center Advisory Commission (CCAC) Membership Terms - Resolution No. 07- 3.4 Local Contract Review Board: a. Award Contract for Fuel Delivery and Card-Lock Services at Both Captive and Foreign Sites to Bretthauer Oil Company b. Award Contract for the Construction of SW 871h Court and Hall Boulevard Sanitary Sewer Extension (Sewer Reimbursement District No. 37) C. Award Contract for the Construction of SW Hill View Street and 102nd Avenue Sanitary Sewer Extension (Sewer Reimbursement District No. 39) 3.5 Approve Intergovernmental Agreement with Oregon Department of Transportation for Local Fuel Tax Collection and Authorize the City Manager to Sign • Consent Agenda - Items Removed-for S4arate Discussion: Any items requested to be removed from the Consent Agenda for separate discussion will be considered immediately after the Council has voted on those items which do not need discussion. 4. UPDATE ON 2007 OREGON LEGISLATIVE SESSION WITH SENATOR BURDICK AND REPRESENTATIVE GALIZIO • Introduction: Administration Department 5. UPDATE FROM METRO COUNCILOR CARL HOSTICKA • Introduction: Administration Department 6. UPDATE ON LIBRARY AND POLICE PERFORMANCE AUDITS, AND AN UPDATE ON THE FINANCIAL AUDIT • Staff Report: Financial and Information Services Department 7. CONSIDER NAMING THE TUALATIN RIVER BICYCLE AND PEDESTRIAN BRIDGE THE "KI-A-KUTS BRIDGE" IN HONOR OF THE TUALATIN NATIVE AMERICAN HEADMAN, KI-A-KUTS • Staff Report: Public Works Department Staff • Council Discussion • Council Consideration: Resolution No. 07- COUNCIL AGENDA - FEBRUARY 27, 2007 page 3 8. REVIEW CITY ENCROACHMENT PERMIT POLICY • Staff Report: Community Development Department Staff • Council Discussion • Council Consideration: Provide direction on a policy regarding structures that encroach into the rights of way, utility easements or other public property. 9. COUNCIL LIAISON REPORTS 10. NON AGENDA ITEMS 11. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 12. ADJOURNMENT i:\adm\cathy\ccat2007\070227p.doc COUNCIL AGENDA - FEBRUARY 27, 2007 page 4 Agenda Item No. 3 . / For Agenda of to Tigard City Council Meeting Minutes Date: February 27, 2007 Time: 7:30 p.m. Place: Tigard City Hall, 13125 SW Hall Boulevard, Tigard, Oregon Attending: Mayor Craig Dirksen Presiding Councilor Sally Harding Councilor Sydney Sherwood Councilor Tom Woodruff Councilor Gretchen Buehner Agenda Item Discussion & Comments Action Items (follow u Study Session Mayor Dirksen called the Study Session to order at 6:35 p.m. • City Center Advisory Commission 2006 Annual Report - Senior Planner Nachbar said Alice Ellis Gaut and Carolyn Barkley were in attendance representing the CCAC. Ms. Ellis Gaut gave CCAC highlights of 2006 which included: > Intense involvement in the urban renewal ballot measure effort, with bi-weekly meetings held through the end of the summer. > Participating with the City in the Downtown Plan open houses as well as individually making presentations to various businesses and organizations, which helped the CCAC understand their specific interests. > Preparing, reviewing and revising the Downtown implementation strategy document. > Working on Commuter Rail issues and shelter upgrade design > Attending Streetscape meetings > Educating themselves about design guidelines and providing direction for their development in the Downtown area > Developing the CCAC By-laws > Working on MTIP projects with Metro. She noted that the Greenstreets Program was on Metro's short Tigard City Council Minutes - February 27, 2007 -1- Agenda Item Discussion & Comments Action Items (follow u list and they were hoping for full funding -She said the CCAC had three recommendations for Council: > Encourage architecture in the downtown design guidelines that provides harmony and diversity. > Apply "Form-Based Code" - a new regulatory means of defining architecture criteria in graphic format. > Include height restrictions in the design guidelines that maintain a view corridor into the downtown area from Highway 99W Mayor Dirksen said he had heard of Form Based Code working successfully elsewhere but had not heard of it being used locally. Ms. Ellis-Gaut agreed that if Tigard chose to use this type of code, they would be Oregon's first. Ms. Ellis Gaut said the CCAC is drafting a resolution asking Council to consider removing the requirement to have a sitting Planning Commission member on the Commission. She said they don't have one presently and the position may be difficult to fill. Mayor Dirksen said they are looking at ways to make this work. Ms. Ellis Gaut said there will be two CCAC members on the Fanno Creek Park Master Plan Committee and they are excited to start on this project. Mayor Dirksen complimented the CCAC on the volume of work they took on and their innovative ideas. Councilor Harding said she appreciated their perseverance. Councilor Buehner said she hopes that Council will hold regular joint meetings with CCAC and the Planning Commission during Council workshop sessions to discuss the various issues coming within the next six months. Tigard City Council Minutes - February 27, 2007 -2- Agenda Item Discussion & Comments Action Items (follow u • Jaywalking Ordinance - Police Chief Dickinson said that as part of the Police Department's mission statement and their goal to preserve and protect life, they propose a jaywalking ordinance. Chief Dickinson noted there have been at least three car/pedestrian accidents this year. He introduced Officer Erickson who has been working on preparing the ordinance. Officer Erickson said that based on input received in November when this issue was first raised with Council there were two changes made to the proposed ordinance: > The distance from a crosswalk that a pedestrian has to be within, in order for this ordinance to be in effect, was changed from 150 to 100 feet. > At the suggestion of the City Attorney, the actual definition of a crosswalk is included, rather than just the ORS number. Chief Dickinson said the essence of the ordinance is, "If you are in the middle of the block and just want to cross the street to get to your mailbox, you can. But if you are within 100 feet of a crosswalk we ask that you use it." In response to a question from Councilor Woodruff about the Hall Boulevard and O'Mara Street intersection, Chief Dickinson said the law says whether or not there is a marked crosswalk at an intersection, it is legal to cross there. City Manager Prosser said Hall Boulevard is a state highway and the City asked for a marked crosswalk to be placed at O'Mara but ODOT wouldn't allow it. Chief Dickinson said the focus of the proposed ordinance is mid-block crossings or someone wandering down the middle of a street. Councilor Harding expressed concerns about the Burnham Street Project which includes islands in the middle of the street. She said part of the reason for the islands is to help people safely cross. Chief Dickinson agreed that safety needs to be a consideration when planting the medians because a child or wheelchair user might not be seen b drivers Tigard City Council Minutes - February 27, 2007 -3- Agenda Item Discussion & Comments Action Items (follow u if bushes and shrubs are too tall. City Manager Prosser said the Burnham Street design does include mid-block crossings that use the medians and these will be marked. He said the medians are there not to give people a refuge. He said there will be breaks in the medians to enable people to use the crosswalks. Mayor Dirksen expressed concern that he did not see a differentiation between arterial and regular neighborhood streets in the proposed ordinance. Chief Dickinson said they couldn't find a way to make that distinction. Officer Erickson said a definition of "arterial" exists but it is so overly broad that the ordinance would be unenforceable in court. Mayor Dirksen said that the ordinance defines crosswalks by Oregon State Statutes which state any place there is an intersection, there is a crosswalk. He said in most neighborhoods you would be within 100' of an intersection in the middle of the block. He asked if the ordinance could be changed to define this as "within 100 feet of a marked crosswalk." In response to a question from Councilor Sherwood, Police Chief Dickinson said the biggest jaywalking problem area is Highway 99W. Other areas of concern are the roads in front of schools. Councilor Buehner asked if it couldn't be addressed as an internal policy whereby we say the neighborhood streets are not the focus; the focus is the arterial and collector streets. Councilor Sherwood said if there was an ordinance and an officer saw a child running across the street they could at least stop them and advise them they could be hurt running into the street and it is against the law. She said she would like this used as more of an educational tool to give the police the ability to stop people. Police Chief Dickinson asked if Council would consider putting in a sunset clause and revisiting the ordinance after a few ears. Tigard City Council Minutes - February 27, 2007 -4- Agenda Item Discussion & Comments Action Items (follow u Mayor Dirksen said he could support this ordinance as is, so long as there is a discussion with police that we don't want a policy where this is used punitively on neighborhood streets. City Manager Prosser suggested that rather than including a sunset clause, there could be an administrative direction to report back to Council in one year. He said it could be included as part of the annual police report. Councilor Harding mentioned that she was also had concerns about bicycle laws and how they differ from city to city. She asked if the Student Resource Officers are educating young cyclists. Police Chief Dickinson said they do an annual bicycle fair and safety town program to target children, but that this doesn't do much for adults. Police Chief Dickinson asked if Council's direction is to put it on the agenda. Council agreed that it should be considered at the next Council business meeting. • Graffiti in the City of Tigard - Police Chief Dickinson said that graffiti and gang activity are on the increase in Tigard. He said there are two issues: > the actual act of vandalism > the graffiti that can be seen in the community Police Chief Dickinson introduced Community Service Officer McMahan who tracks all graffiti and looks for commonalities and gang related tagging. She presented a PowerPoint on Gangs and Graffiti. A copy of this presentation is in the City Recorder's Office. Officer McMahan said that so far in 2007, Tigard police had taken 94 reports of graffiti which is one third of the entire total for 2006. Of the 94 cases, 26% are gang related. She said graffiti is one way gangs communicate with each other and typically the graffiti in Tigard has been from Hispanic or Latino/Latina gang members. Tigard City Council Minutes - February 27, 2007 -5- Agenda Item Discussion & Comments Action Items (follow u Police Chief Dickinson said the people who have had graffiti sprayed on their property have already been victimized and he would like to work cooperatively with them. Council agreed a heavy-handed approach would make property owners feel further victimized. Councilor Buchner asked what reasons people give for not wanting to clean it up. Officer McMahan said some people feel their property will just get hit with graffiti again and some businesses say it would cost too much. City Attorney Ramis mentioned that in another jurisdiction there was resistance to graffiti removal because it was felt removal would put them into a confrontation with the gangs. Councilor Harding says that criminal justice statistics show that removing graffiti stops or reduces it. Officer McMahan said gangs are not targeting the property owner but are using their fence or building for a billboard. Councilor Buchner said the public needs to be educated on this. Officer McMahan said the Washington County Graffiti Task Force is coming up with a website to tell citizens why it is important to remove graffiti. Officer McMahan said there is a clause in the citation process that will give them more time if they contact the City and explain why they cannot remove it. Officer McMahan said one quarter to one third of property owners do not clean it right away. Council agreed that police should bring this back for their consideration at a future business meeting. • Status Update - Highway 99W Corridor - Discussion was postponed until after the Business meeting due to time constraints. • Use of Cook Park during the Balloon Festival - Due to time constraints, the discussion on the use of Cook Park during the Balloon Festival will be tabled until the next Council meeting. Tigard City Council Minutes - February 27, 2007 -6- Agenda Item Discussion & Comments Action Items (follow u The Study Session concluded at 7:30 p.m. Business Meeting 1.1 Mayor Dirksen called the City Council and Local Contract Review Committee meeting to order at 7:35 p.m. 1.2 Council Present: Mayor Dirksen, Councilors Buchner, Harding, Woodruff and Sherwood. 1.3 Pledge of Allegiance 1.4 Council Communications & Liaison Reports Mayor Dirksen, Councilor Buchner and Councilor Sherwood indicated they had liaison reports. Mayor Dirksen recommended that due to time constraints these items be discussed at the end of the meeting. City Manager Prosser noted that there is also an Executive Session scheduled at the end of the Business Meeting. 2. Citizen > Sharon Maroney, 14070 SW Hall Boulevard, Tigard, Communication spoke on behalf of the Broadway Rose Theater Company. She said in working with the Tigard/Tualatin School District to make the old C. F. Tigard building their permanent home, they discovered a zoning issue. She requested that the City Council direct staff to make a text amendment to the Code allowing Broadway Rose as a conditional use on the C.F. Tigard site. Mayor Dirksen said he would recommend this to staff and supported this use of the old C.F. Tigard school property. Councilor Sherwood also expressed her support. > Tigard Chamber of Commerce President Ralph Hughes said he fielded a phone call from a national hotel chain interested in this area. Mayor Dirksen said he visited with the contact. Mr. Hughes asked if Tigard was interested in pursuing Tigard City Council Minutes - February 27, 2007 -7- Agenda Item Discussion & Comments Action Items (follow u Schumacher Furs, noting that Washington Square did not have space available for this Portland business wanting to relocate. He said there will be a meeting at 9:30 a.m. on March 15 regarding using the additional 2% tax being collected for Washington County tourism. Anyone interested in the encouraging tourism and longer stays in the Tigard area should contact Jeremy Monlux at the Chamber of Commerce. Mayor Dirksen said this is a unique opportunity for a partnership with the Chamber. Upcoming Chamber of Commerce events: • Shining Stars Event in April • Leadership Group raffle in May • Membership Event was rescheduled to August Mayor Dirksen asked if there was anyone wanting to speak who had not yet signed up to do so. There was none. 3. Consent Mayor Dirksen read through the Consent Agenda Motion by Councilor Agenda items and asked if there were requests to remove any Harding, seconded by items for separate discussion. Councilor Sherwood to approve the Consent 3.1 Approve Council Meeting Minutes for January Agenda with Item No. 3.5 23, 2007 removed for separate discussion. 3.2 Establish Fanno Creek Park/Plaza Master Plan Steering Committee The motion was approved by a unanimous vote of Resolution No. 07-09 - A RESOLUTION Council present. ESTABLISHING A CITIZEN ADVISORY COMMITTEE TO GUIDE THE Councilor Woodruff Yes PREPARATION OF A MASTER PLAN Mayor Dirksen Yes FOR FANNO CREEK PARK AND A Councilor Buehner Yes DOWNTOWN PUBLIC PLAZA Councilor Harding Yes Councilor Sherwood Yes 3.3 Re-assign City Center Advisory Commission (CCAC) Membership Terms Tigard City Council Minutes - February 27, 2007 -8- Agenda Item Discussion & Comments Action Items (follow u Resolution No. 07-10 - A RESOLUTION RE-ASSIGNING CITY CENTER ADVISORY COMMISSION MEMBERSHIP TERMS 3.4. Local Contract Review Board a. Award of Contract for Fuel Delivery and Card-lock Services at Both Captive and Foreign Sites b. Award of Contract for the Construction of 87`h Court & Hall Blvd. Sanitary Sewer Extension (Sewer Reimbursement District No. 37) c. Award of Contract for the Construction of Hill View Street and 102nd Avenue Sanitary Sewer Extension (Sewer Reimbursement District No. 39) 3.5 Approve Intergovernmental Agreement with Oregon Department of Transportation for Local Fuel Tax Collection Councilor Woodruff thanked the volunteers who will be serving on the Fanno Creek Park and Downtown Public Plaza Master Plan Steering Committee: Carl Switzer, Alice Ellis Gaut, Mike Freudenthal, Tricia Swanson, Dan Dolan, Chuck O'Leary, Eugene Butera, Lisa Olson, Brian Wegener, Mike Swanda and Meg Schultz. Mayor Dirksen noted that Councilor Buchner requested that Item 3.5 be removed from the consent agenda for separate discussion. City Manager Prosser asked if discussion on this matter could be postponed until later in the meeting, in deference to guest speakers. Councilor Buchner said that would be acceptable. 4. Legislative Senator Burdick gave an overview of current legislative Briefing by activity. She said she is on the Senate Revenue Senator Committee and is Chair of the Senate Judiciary Burdick and Committee and expects some controversial bills before Representative them. She said there is a clear agenda this year, with Galizio Measure 37 being a big focus. She noted the City of Tigard is supporting a Measure 37 "time out" and was Tigard City Council Minutes - February 27, 2007 -9- Agenda Item Discussion & Comments Action Items (follow u pleased they were taking this position. She said that from her land use perspective, annexation is good for land use policy. She said she did not believe that the State should be pre-empting cities and counties from doing their job and that Tigard could count on her support. Representative Galizio mentioned he is on the Ways and Means Committee as well as Consumer Protection Agency. He said they passed some bills closing pay day loan loopholes. He said another main issue is Education. He predicted investment in Education support not just in K-12 but in pre-K and Head Start, Community Colleges and Universities, both in operations and capital construction. Councilor Woodruff thanked them for coming and asked for their comments on a letter the City sent them stating positions on current legislation. He asked if they were in sync with Tigard. Collective Bargaining Legislation: Senator Burdick said the Labor bills axe difficult with good people on both sides. She said she thought the impact will not be as severe as people predict. Representative Galizio said he was leaning in the directions the City does not favor. Mayor Dirksen noted that the labor legislation bill language is extremely broad. He asked Representative Galizio and Senator Burdick, that if they choose not to oppose the bill altogether, to suggest changes in the language. Measure 37: Senator Burdick said that she and Representative Gahzio will be hosting a Town Hall meeting on Measure 37 in March 14`h, to be held at the PCC Sylvania campus. Councilor Buehner said she receives many e-mails regarding property owners wishing to build one house on their property, largely a rural issue. She said Tigard's Measure 37 claims did not include one that was not commercial, including claims for billboards. She said she didn't think that large commercial claims and more billboards were what Measure 37 proponents had in mind. She asked that this point be brought to the committees so rural residents realize what is happening Tigard City Council Minutes - February 27, 2007 -10- Agenda Item Discussion & Comments Action Items (follow u in the urban areas. Senator Burdick said she agreed this is not what people who voted for Measure 37 intended but that she needs to hear from them. Annexation: Councilor Buehner said the fallout from last session's bills effectively denies cities the right to annex, which is in direct contravention of Metro's policies. She said she wanted to draw their attention to an issue with land located east of Highway 217 that runs up to the Portland city limits. It is surrounded by Tigard, Beaverton and Portland. She said County service providers have to drive four or five miles through another city to get to that island area. She said this does not make sense and hopes this would be brought back to the legislature for discussion. Mayor Dirksen asked that they take to the legislators a request as they consider this issue to ask themselves what they want these areas to look like in ten or fifteen years. Councilor Buehner said that there are now more people living in urbanized unincorporated Washington County than living in the Washington County cities and rural areas combined and this must be addressed. Representative Galizio said that conceptually, urban areas are the best and most efficient service providers. He said however, that he also represents people in unincorporated Washington County, Metzger and Bull Mountain. He said there are quite a few annexation- related measures this session and he would be glad to listen if Tigard wanted to make a case. Representative Galizio said he agreed with the Mayor Dirksen about the amount of overhang last session when some anti- annexation bills were successful. He said he was not on a land use committee and urged Councilor Buehner to contact those legislators and work through the democratic process at Salem. Gas Tax: Councilor Buehner referenced a recent study which shows that because of the relatively flat revenues due to more fuel-efficient cars etc., the value of the gas tax has been going down about one cent a year. She said Tigard City Council Minutes - February 27, 2007 -11- Agenda Item Discussion & Comments Action Items (follow u one of the concerns raised by the Petroleum Association when Tigard City Council passed a gas tax in December was that they felt this should be a state- wide issue. Tigard's gas tax ordinance says that if the state increases their tax, the City will reduce or eliminate theirs. She stressed that this issue must be addressed as it doesn't affect just Tigard; every city and county is struggling to maintain transportation infrastructure. Senator Burdick discussed the difficulties politicians can experience if they vote in favor of taxes. She said it was hard to get a 3/5 vote to pass a tax. Representative Galizio said he appreciated the open communication from the Council and the visits from City Manager Prosser and Assistant City Manager Newton. 5. Metro Long Range Planning Director Ron Bunch introduced Briefing by Metro Councilor Hosticka. He said Councilor Metro Hosticka would be discussing three areas Tigard and Councilor Carl Metro have in common: Greenspaces, land use, and Hosticka transportation planning. Councilor Hosticka discussed Metro's New Look program. He said about one million new people are expected to come into the region by 2030 and we need to plan where they will live, work and play. He said this has traditionally taken the form of an Urban Growth Boundary (UGB) expansion discussion but Metro's current thinking is to place more emphasis on reinvesting within the UGB, primarily in centers and corridors. He said planning is needed so that, if and when the UGB is expanded, complete communities are created, with infrastructure to serve them. He said Metro does not think that it is appropriate to go right back into another cycle of UGB expansion. He said the Metropolitan Policy Advisory Committee (MPAC) has a bill before the legislature to expand the cycle from five years to seven years. He said they are working on an analysis of costs in new development versus reinvestment in existing areas within centers. He said most of the Metro Council Tigard City Council Minutes - February 27, 2007 -12- Agenda Item Discussion & Comments Action Items (follow u agrees that the same amount of investment going into green fields, such as new development in Washington County's Bethany area, could probably have a higher yield if reinvested within existing areas. He said Metro is trying to develop a regional infrastructure plan using the revenue raising capacity of the entire region to contribute to a fund targeted for investments. He thanked the City of Tigard for going on record to support Metro's local bond measure for parks and greenspaces. He said Tigard's local share is $1.4 million and bonds will be sold this month, making money available in April. Councilor Hosticka said Metro is in the process of updating the regional transportation plan and noted several significant items: > He said they are trying to base the plan on reasonably anticipated finances. > There is discussion about directing more investment towards arterials and transportation that supporting land use plans emphasizing centers. He said Tigard's Downtown, with its link to the commuter rail system is a major focus. > Highway 99W, classified as a regional arterial, would get attention under these priorities. > If the legislature does not act to increase the gas tax, Metro would consider developing a regional measure. He applauded Tigard for coming up with a local gas tax to help solve a local problem. Councilor Hosticka noted some specific projects: >The Metropolitan Transportation Improvement Plan (MTIP) will distribute $45 million and the Tigard Downtown Main Street project is on the short list. > The Highway 99W/I-5 connector's exact alignment is still not decided. On this topic, Mayor Dirksen advised that the further south the connection to I-5 moves, the less value it has for Tigard. Councilor Hosticka said it would most likely remain within the current planned area. Tigard City Council Minutes - February 27, 2007 -13- Agenda Item Discussion & Comments Action Items (follow u Councilor Hosticka asked if the City Council had any questions. Councilor Sherwood said she is concerned about workforce housing. She asked if anything was being done to help solve the affordable housing issue, noting that a few years ago Tigard met the goal of having enough affordable housing and is nowhere near that goal presently. Metro Councilor Hosticka said Metro is strongly in favor of having more affordable housing and he will keep taking the message back that this is not just a Portland issue. Councilor Buehner said that Tigard just completed their buildable land inventory. She said Tigard has very little left and less than ten acres of land available for multi-family housing. She said Tigard is looking at putting dense housing in the downtown area but that would not even begin to fill the need. She noted that of the one million new people coming to the area, 400,000 would be coming to Washington County where there is already a critical shortage of residential housing. She said the jobs are here and people are commuting from Clackamas County to get to them. Councilor Buehner said that the vast majority of property added to the last urban grown boundary expansions has been in Clackamas County, not Washington County - which is where the jobs are happening. She recommended the focus be put on getting more land for housing to help keep the price of housing down and provide opportunities for multi- family housing. She said people in the unincor- porated areas don't want the density, which is in direct, contravention to Metro's policy. She said it comes back to the issue of whether or not urbanized areas should be in cities. Metro Councilor Hosticka said Metro's primary focus is not on in-fill or increased neighborhood density. He said Metro's policy is to encourage redevelopment, primarily in centers, as a way to deal with increasing capacity within the UGB. Tigard City Council Minutes - February 27, 2007 -14- Agenda Item Discussion & Comments Action Items (follow u He said Metro is also attempting to change the way urban reserves are designated. Councilor Buchner said Metro could provide a wonderful leadership role by looking at the interplay between cities and counties and determining who should be providing what services to meet Metro's goals. Metro Councilor Hosticka said he appreciated her point and that the least Metro could do is add a condition in any further expansion of the urban growth boundary that development would not occur unless it is in an incorporated city. He said Metro has that power. Councilor Buchner said that Highway 99W has more traffic than any other road in the area outside of the freeways. She urged addressing this issue in the update of the regional transportation plan. Mayor Dirksen gave Councilor Hosticka a letter seeking full 2010-11 MTIP funding for the reconstruction of Main Street to full Greenstreet standards from the railroad tracks to Highway 99W. 3.5 IGA with City Engineer Duenas introduced this item, reporting Motion by Councilor Oregon De- that the City has been working with the Oregon Sherwood, seconded by partment of Department of Transportation to get an agreement in Councilor Buehner to Transportation place and ready for an effective tax collection date of approve Consent Agenda for Local Fuel April 1, 2007. Item No. 3.5 Tax Collection The motion was approved (This consent City Manager Prosser said that although ODOT will by a unanimous vote of agenda item officially notify gas station owners, the City also wants Council present. was heard out to make additional information available to the station of order.) owners and the public. Councilor Woodruff Yes Mayor Dirksen Yes In response to a question from Councilor Buchner, Councilor Buchner Yes City Engineer Duenas said setting up the tax Councilor Harding Yes collection process would cost up to $7,500, with an Councilor Sherwood Yes annual charge of $10,000-$15,000. Councilor Buchner stated that this is a very reasonable expense for the City to pay in order to collect a large amount of money. Mayor Dirksen noted he has heard citizen sentiment lately in support of the gas tax. Tigard City Council Minutes - February 27, 2007 -15- Agenda Item Discussion & Comments Action Items (follow u 6. Update on Financial and Information Services Director Sesnon Library and updated Council on the library and police Police performance audits as well as the City's annual Performance financial audit. Audits, and an Update on the He said the Tigard Public Library audit report, Financial Audit completed by library expert Jeanne Goodrich, showed that the Library is well managed and is very well liked by the public. Recommendations were made regarding work flow, materials flow, processes and staffing in order to identify potential efficiencies. Under consideration are: > adding desk-less, roving reference people > utilizing non-degreed personnel > contracting out some cataloging > reducing holds that are not picked up > pre-sorting > increasing the use of the self-check machine by patrons A copy of the Tigard Public Library Performance Audit is on file in the City Recorder's Office and also available on the City's website. Financial and Information Services Director Sesnon said the Police Department audit is being done by consultant Steven Winegar and is not complete at this time. He said the three major components under study are: > Property and Evidence Management > Mutual Aid Response > Employee Retention He said he had an update on Police personnel retention from Consultant Winegar who said the national average loss rate is 7% and the City of Tigard experiences a loss rate of 5%. He noted that it is very costly to hire and train new officers and that the City should do whatever it can do to reduce turnover. > Regard for compensation - The Human Resources Department needs to remain diligent in ensuring that the officers are being fairly compensated. Tigard City Council Minutes - February 27, 2007 -16- Agenda Item Discussion & Comments Action Items (follow u > Creative compensation - look at different ways to pay officers, such as a longevity bonus. > Professional Development - are opportunities being promoted? > Job Sharing offers increases variety. Mr. Sesnon said there are areas within the Property Evidence function that can be improved. The consultant's recommendations have not been received yet on this and the evaluation of the Mutual Aid Response component. He said the City of Tigard changes auditors periodically as a good business practice and this was the first year for Grove, Mueller and Swank, P.C. He said the City's financial audit was very positive and no adjusting journal entries were necessary. He said that for the past two decades the City of Tigard has submitted their Comprehensive Annual Financial Report (CAFR) to the Government Finance Officer's Association who issues an award for excellence in financial reporting. He said he was proud to say that Tigard has received that award for nineteen consecutive years. Staff submitted this latest CAFR and he hopes the award-winning trend continues. He said there is a rigid set of standards that must be met and it shows the commitment to excellence the finance staff has. Councilor Sherwood thanked Mr. Sesnon for the report on the City's financial picture. She said these awards are important and she is proud that the City has earned them. Councilor Buehner remarked that it saves staff time and taxpayer money when things don't have to be changed. Councilor Woodruff noted that Council had already received this report and heard the consultants at the last Workshop meeting but he felt the City's financial news was so good and so important, that it should be presented at a televised Business Meeting. He said citizens are concerned with public money being spent _Properly, fully accounted for, and with independent Tigard City Council Minutes - February 27, 2007 -17- Agenda Item Discussion & Comments Action Items (follow u oversight. He said Tigard is looking for every way possible to make sure that we're being efficient at how we're using public funds. Councilor Buehner asked if the consultant's reports would be posted on the website. City Manager Prosser said the Library Report was already posted and the Police Report would be posted when completed. Mayor Dirksen mentioned it was the opinion of the Library Performance Audit consultant that, "For every dollar spent by the library, the community receives four dollars in benefit. That's a good return on any investment." 7. Consider The staff report was given by Parks Manager Plaza. Motion by Councilor Naming the He said the Tigard Historical Society and the Tualatin Harding, seconded by Tualatin River Historical Society have joined together in requesting Councilor Woodruff to Bicycle and that the bridge be named, Ki-a-kuts Bridge. adopt Resolution No. 07-11. Pedestrian Bridge the "Ki-a- He said Ki-a-kuts was the last headman and The motion was approved Kuts Bridge" in spokesman of the Tualatin (Atfalati) Native Americans by a unanimous vote of honor of the Council present. Tualatin Native and signed treaties at both Champoeg and Dayton. American He said the other Tualatin river bridge partners - Councilor Woodruff Yes Headman, Ki-a- Durham, Tualatin and Clean Water Services - are Mayor Dirksen Yes Kuts considering similar resolutions and if they agree, there Councilor Buehner Yes will be a bronze name plaque placed at the site. Councilor Harding Yes Councilor Sherwood Yes He said the bridge grand opening ceremony has been postponed from April 28`h and will probably occur in May. Martha Worley from the Tigard Area Historical & Preservation Association spoke, saying they are interested in, "preserving history and our history goes back a lot farther than our pioneers who brought farming and cattle and brought us into this century. We need to recognize our deeper roots." She said the Oregon Board of Geographic Names approved this name for the falls discovered on the Tualatin River by the Tualatin Riverkeepers, and in 1999 the U.S. Board of Geographic Names accepted it, including putting in hyphens. Tigard City Council Minutes - February 27, 2007 -18- Agenda Item Discussion & Comments Action Items (follow u Resolution No. 07-11 CONSIDER NAMING THE TUALATIN RIVER BICYCLE AND PEDESTRIAN BRIDGE THE "IC-A-KUTS BRIDGE" IN HONOR OF THE TUALATIN NATIVE AMERICAN HEADMAN, KI-A-KUTS 8. Review City Community Development Director Coffee said Right- Encroachment of-Way Administrator Werner would be giving the Permit Policy staff presentation, noting that this would be her last Council meeting as she has accepted a position with a law firm. Right-of-Way Administrator Werner gave some background on what an encroachment is and what Tigard's policy has been. She said the Tigard Municipal Code already prohibits, with some exceptions, the placement of any structures or vegetation in unimproved rights-of-way, easements or other public property without a revocable permit. Ms. Werner said, however, the City doesn't have a permit process set up and hasn't really enforced this section of the Code yet. Ms. Werner said there have been times when Public Works staff had to remove fences or sheds to access an area they were required to maintain. She said there was an instance where City staff couldn't even access a manhole cover due to a wall and fill material covering it. Right-of-Way Administrator Werner said her research showed most jurisdictions have a code section similar to Tigard's and most cities require removal if a safety or utility access issue exists. She said the three main issues are: > Liability - There is possible City liability for encroachments that cause injury > Expense to the City - Costs for repairs and maintenance increase due to the need to move or avoid encroachments or to repair damaged encroachments. It adds to the effort and expense of maintaining public works to have access blocked or hindered to hydrants, water meters, manholes and other facility access points. Tigard City Council Minutes - February 27, 2007 -19- Agenda Item Discussion & Comments Action Items (follow u > Street and Sidewalk Damage - During a recent Verizon project the streets were being dug up rather than adjacent homeowners' walls or landscaping which was actually in the public right-of-way. Community Development Director Coffee asked if Council direction to staff was to educate the public over a period of time and then develop this process for revocable permits so we do begin recording them. Mayor Dirksen agreed that this was the Council's direction. Councilor Sherwood said there is a lot of education that needs to be done. She noted that citizens attending a Fifth Tuesday meeting said they didn't know where the right-of-way begins and ends. Community Development Director Coffee said it involves education but also the use of this revocable permit that says, "If you want to encroach in the right- of-way we allow it under certain circumstances. But in return for that permission you grant us a revocable permit so if the question ever comes up in the future it is clear." Councilor Harding said she did an on-line search of other cities which showed permit fees that were less than the $300 suggested by Community Development. She suggested the City take a non-aggressive approach unless safety hazards exist. She said most people pay taxes on the right-of-way, and are also expected to mow and maintain it, so the Code language may seem burdensome. City Manager Prosser noted that what is being discussed is right-of-way owned by the City. He said it is outside the legal description of the property and the home owners do not pay taxes on this land. Mayor Dirksen said that may not be a property owner's perception because they don't know where the right-of way is. Community Development Manager Coffee said that the City's GIS system upgrade will have interactive maps to help citizens locate the tights-of-way near Tigard City Council Minutes - February 27, 2007 -20- Agenda Item Discussion & Comments Action Items (follow u their property. Mayor Dirksen asked if the existence of this Code section solves this problem of setbacks that came up in a Fifth Tuesday. He asked if this code section was written as a response to encroachments. City Manager Prosser said he thought it had come about because of encroachments on City parks. He further clarified that the issue brought to Council at the recent Fifth Tuesday meeting was about construction of structures within setbacks. He said that the setback issue and right-of-way encroachment are two different things. City Attorney Ramis requested to review any proposed language if staff moves in the direction of a revocable permit. Right-of-Way Administrator Werner said the one remaining question is the permit fee. She said staff recommended $300, because that is the minimum fee for a city improvement project. Mayor Dirksen suggested basing the fee on the actual administrative costs of the program. Community Development Director Coffee said he would obtain that amount for future discussion. City Manager Prosser said he wanted to publicly thank Right-of-Way Administrator Werner for her excellent work for the City. He noted that she has become a recognized expert in the state on telecommunication franchise issues. 9. Council Mayor Dirksen said he attended a Washington County Liaison Reports Coordinating Committee meeting and one issue on the table was the MTIP funding for Tigard's Greenstreets project and he was assured by WCCC membership that they are in full support. Councilor Harding noted that Metro Councilor Harrington will be the liaison with WCCC. Councilor Buchner attended the Intergovernmental Water Board's meeting where a discussion was held on the disposition of the property at Canterbury. The consensus of IWB members was that the property Tigard City Council Minutes - February 27, 2007 -21- Agenda Item Discussion & Comments Action Items (follow u needs to be deeded out of the name of the Water District to interest holders: Durham, King City, and Tigard. She said Public Works Director Koellermeier will be working on this and it should be resolved in a few months. Mayor Dirksen requested further dialog on this issue. Councilor Sherwood said the Project Homeless breakfast would be held Wednesday at the Hillsboro Armory and would include representatives from the Department of Human Services and the Veteran's Administration. Services such as showers, haircuts, eyeglasses and food stamps will be provided. Councilor Sherwood said she would represent the City. 10. Executive At 10.00 p.m. the Tigard City Council went into Session Executive Session to discuss potential property negotiations under ORS 192.660(2) (e) and consultation with counsel concerning legal rights and duties regarding current litigation or litigation likely to be filed under ORS 192.660 (2) (h). Executive Session ended at 10:30. 11. Non Due to time constraints in the Study Session, the Agenda Items Status Update - Highway 99W Corridor Improvement and Management Plan was not discussed. City Manager Prosser asked Council members to read the materials on this item prepared by City Engineer Duenas and included in their packet. Adjournment The meeting adjourned at 10:35 p.m. Motion by Councilor Woodruff, seconded by Councilor Sherwood, to adjourn the meeting. The motion was approved by a unanimous vote of Council present. Councilor Woodruff Yes Mayor Dirksen Yes Councilor Buchner Yes Councilor Harding Yes Councilor Sherwood Yes Tigard City Council Minutes - February 27, 2007 -22- Carol A. Krager, Deputy City Re rder Attest: Mayo/, City of Tigard 4 D~j Date Tigard City Council Minutes - February 27, 2007 -23- STUDY SESSION AGENDA TIGARD CITY COUNCIL BUSINESS MEETING February 27, 2007 13125 SW Hall Boulevard, Tigard, Oregon 6:30 PM • STUDY SESSION > City Center Advisory Commission 2006 Annual Report • Community Development Department Staff > jaywalking Ordinance Discussion • Police Department Staff > Graffiti Ordinance Discussion • Police Department Staff > Status Update - Highway 99W Corridor Improvement and Management Plan • Community Development Department > Balloon Festival Use of Cook Park • Administration Department • EXECUTIVE SESSION: The Tigard City Council will go into Executive Session to discuss real property transaction negotiations under ORS 192.660(2) (e). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. • ADMINISTRATIVE ITEMS > Gas Tax Update and Implementation - Liz N. Executive Session - The Public Meetings Law authorizes governing bodies to meet in executive session in certain limited situations (ORS 192.660). An "executive session" is defined as "any meeting or part of a meeting of a governing body, which is closed to certain persons for deliberation on certain matters." Permissible Purposes for Executive Sessions: 192.660 (2) (a) - Employment of public officers, employees and agents, If the body has satisfied certain prerequisites. 192.660 (2) (b) - Discipline of public officers and employees (unless affected person requests to have an open hearing). 192.660(2) (c) - To consider matters pertaining to medical staff of a public hospital. 192.660 (2) (d) - Labor negotiations. (News media can be excluded in this instance.) 192.660 (2) (e) - Real property transaction negotiations. 192.660 (2) - Exempt public records - to consider records that are "exempt by law from public inspection." These records are specifically identified in the Oregon Revised Statutes. 192-660 (2) (g) - Trade negotiations - involving matters of trade or commerce in which the governing body is competing with other governing bodies. 192.660 (2) (h) - Legal counsel - for consultation with counsel concerning legal rights and duties regarding current litigation or litigation likely to be filed. 192.660 (2) (i) - To review and evaluate, pursuant to standards, criteria, and policy directives adopted by the governing body, the employment-related performance of the chief executive officer, a public officer, employee or staff member unless the affected person requests an open hearing. The standards, criteria and policy directives to be used in evaluating chief executive officers shall be adopted by the governing body in meetings open to the public in which there has been an opportunity for public comment. 192.660 (2) Public investments - to carry on negotiations under ORS Chapter 293 with private persons or businesses regarding proposed acquisition, exchange or liquidation of public investments. 192.660 (2) (k)- Relates to health professional regulatory board. 192.660 (2) (1)- Relates to State Landscape Architect Board. 192.660 (2) (m)- Relates to the review and approval of programs relating to security. i:\adm\cathy\cca ss - pink sheet\2007/070227ps.doc FAGENDA ITEM NO.2 - CITIZEN COMMUNICATION DATE: February 27, 2007 (Limited to 2 minutes or less, please) The Council wishes to hear from you on other issues not on the agenda, but asks that you first try to resolve your concerns through staff. This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony becomes part of the public record. The names and addresses ofpersons who attend or participate rn City of Tigard public meetings will be included sn the meeting minutes, which is a public record. NAME, ADDRESS & PHONE TOPIC STAFF Please Print CONTACTED Name: S V O Ct. C7 A 2 Also, please spell your name as it sounds, if it will help the presiding officer pronounce: J Oct- 1. ca Address / -7 C) :S LU IT / ~ S P(oSS -e city I ` r 0,\ Ct State Zip Phone No. -sO 3 - ~Q l7 -7s' Name: Also, please spell your name as it sounds, if it will help the presiding officer pronounce: Address City State Zip Phone No. Name: Also, please spell your name as it sounds, if it will help the presiding officer pronounce: Address City State Zip Phone No. CITIZEN COMMUNICATION STUDY SESSION AGENDA TIGARD CITY COUNCIL BUSINESS MEETING February 27, 2007 13125 SW Hall Boulevard, Tigard, Oregon 6:30 PM • STUDY SESSION > City Center Advisory Commission 2006 Annual Report • Community Development Department Staff > Jaywalking Ordinance Discussion • Police Department Staff > Graffiti Ordinance Discussion • Police Department Staff > Status Update - Highway 99W Corridor Improvement and Management Plan • Community Development Department > Balloon Festival Use of Cook Park • Administration Department • EXECUTIVE SESSION: The Tigard City Council will go into Executive Session to discuss real property transaction negotiations under ORS 192.660(2) (e). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. • ADMINISTRATIVE ITEMS > Gas Tax Update and Implementation - Liz N. Executive Session - The Public Meetings Law authorizes governing bodies to meet in executive session in certain limited situations (ORS 192.660). An "executive session" is defined as "any meeting or part of a meeting of a governing body, which is closed to certain persons for deliberation on certain matters." Permissible Purposes for Executive Sessions: 192.660 (2) (a) - Employment of public officers, employees and agents, If the body has satisfied certain prerequisites. 192.660 (2) (b) - Discipline of public officers and employees (unless affected person requests to have an open hearing). 192.660 (2) (c) - To consider matters pertaining to medical staff of a public hospital. 192.660 (2) (d) - Labor negotiations. (News media can be excluded in this instance.) 192.660 (2) (e) - Real property transaction negotiations. 192.660 (2) (f) - Exempt public records - to consider records that are "exempt by law from public inspection." These records are specifically identified in the Oregon Revised Statutes. 192-660 (2) (g) - Trade negotiations - involving matters of trade or commerce in which the governing body is competing with other governing bodies. 192.660 (2) (h) - Legal counsel - for consultation with counsel concerning legal rights and duties regarding current litigation or litigation likely to be filed. 192.660 (2) (i) - To review and evaluate, pursuant to standards, criteria, and policy directives adopted by the governing body, the employment-related performance of the chief executive officer, a public officer, employee or staff member unless the affected person requests an open hearing. The standards, criteria and policy directives to be used in evaluating chief executive officers shall be adopted by the governing body in meetings open to the public in which there has been an opportunity for public comment. 192.660 (2) Public investments - to carry on negotiations under ORS Chapter 293 with private persons or businesses regarding proposed acquisition, exchange or liquidation of public investments. 192.660 (2) (k)- Relates to health professional regulatory board. 192.660 (2) (1)- Relates to State Landscape Architect Board. 192.660 (2) (m)- Relates to the review and approval of programs relating to security. i:\adm\cathy\cca ss - pink sheet\2007/070227ps.doc Agenda Item # __5'f/(,t ellev ✓C'.f~'4c~ Meeting Date February 27, 2007 CITY CENTER DEVELOPMENT AGENCY AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title City Center Advisory Commission 2006 Annual Report Prepared By: Phil Nachbar Dept Head Approval: City Mgr Approval: ISSUE BEFORE THE CITY CENTER DEVELOPMENT AGENCY Review City Center Advisory Commission (CCAC) 2006 Annual Report. STAFF RECOMMENDATION No formal action required. KEY FACTS AND INFORMATION SUMMARY As part of its new by-laws, adopted by Council in October 2006, the CCAC is responsible for submitting an Annual Report. The report is intended to summarize its activities for the year, and identify any specific recommendations to better accomplish its mission. The CCAC's mission, as defined in its by-laws, is to advise the City Center Development Agency, the Urban Renewal Agency for the City of Tigard, on matters pertaining to Urban Renewal Plan implementation and tax increment fund allocations for the City Center Urban Renewal District. The year began with extensive citizen involvement to inform the public about the upcoming ballot measure in May 2006 in which voters would decide whether tax increment financing (Urban Renewal) could be used in the Downtown. The vote passed with a 65% majority. The CCAC became involved with efforts to inform the public and participated in the production of a video about the Downtown Plan and Urban Renewal. There were several key projects in which the CCAC were directly involved. These included Commuter Rail, and the upgrade of a shelter for the new station, the Downtown Implementation Strategy, a preliminary framework study for new land use regulations and design guidelines for Downtown, the formation of new by-laws, two Metro Transportation Improvement Projects (MTIP) in Downtown, and the Fanno Creek Park Master Plan Request for Proposals (RFP). OTHER ALTERNATIVES CONSIDERED None. CITY COUNCIL GOALS Implementation of Downtown Plan, including specific objectives to assist in passage of Urban Renewal Plan, make changes to the Tigard Development Code for Downtown, and implement "catalyst" projects. I:\I,RPI.N\Council Materials\ 2007\ 2- 27-07 CCAC 2006 Annual Report final.doc ATTACHMENT LIST CCAC 2006 Annual Report. FISCAL NOTES No cost impact. 1:\L.RPLN\Council Materials\ 2007\ 2-27-07 CCAC 2006 Annual Report final.doc 2006 Annual Report of the City Center Advisory Commission The 2006 calendar year marks the first annual report of the.Commission as set forth in Section 11 of the new By Laws. This year also began the prioritization, funding, and implementation of key projects identified in prior planning efforts. With the adoption of the Tigard Downtown Improvement Plan in September 2005, the Urban Renewal Plan in December 2005, and the passing of the Urban Renewal Ballot Measure in May of 2006, the ground work was completed to begin a more formal strategy for the Downtown. In August 2006, the City Center Development Agency (CCDA) adopted the Downtown Implementation Strategy, which will guide the City's policies and work program for the Downtown over a three (3) year period. The Strategy and work program will be updated annually. The year began with extensive citizen involvement to inform the public about the upcoming Ballot Measure in May 2006, in which voters would decide whether Tax Increment Financing (Urban Renewal) could be used in the Downtown. The vote passed with a 65% majority. The CCAC became involved with efforts to inform the public and participated in the production of a video about the Downtown Plan and Urban Renewal. There were several key projects in which the CCAC was directly involved. These projects included Commuter Rail, the upgrade of a shelter for the new Commuter Rail Station, the Downtown Implementation Strategy, a preliminary framework study for new land use regulations and design guidelines for Downtown, the formation of new By Laws, two Metro Transportation Improvement Projects (MTIP) in Downtown, and the Fanno Creek Park Master Plan Request for Proposals (RFP). From June to September, the Commission worked on a bi-weekly schedule to review and provide policy direction for the development of preliminary land use / design guidelines for Downtown. The Commission is concerned about the impact of development proposals that will be submitted to the City prior to adopting new regulations. Such proposals have the possibility of being "out of sync" with the Downtown Plan, and could obstruct efforts to implement parts of the Plan. As a result, the Commission crafted a letter to potential development applicants in the Downtown, encouraging their adherence to the intent of the Downtown Plan. The letter, now with City Council approval, will be provided at all pre- application meetings for Downtown projects with staff present to explain how applicants can design their projects to be in line with anticipated the design guidelines for Downtown. The Commission had three recommendations that were added to the preliminary set of land use and design guidelines. The CCAC recommended that staff: 1) evaluate the use of a "form-based code", 2) include height restrictions and a "view corridor" from 99W into Downtown, and 3) develop design guidelines that address the "architectural character" of a traditional Main Street. The Commission is very much in favor of developing a traditional Main Street. A "form-based code" is a new regulatory means of defining architectural criteria in graphic format. In addition, the Commission actively participated in two Outreach Open Houses to update and inform Downtown business and property owners about progress being made and the new regulations being undertaken. The direct efforts of CCAC members were instrumental in gaining attendance and developing relationships that may be helpful to the Downtown mission. Several Downtown business and property owners from these meetings have shown interest in participating in upcoming efforts. Obtaining the support of 2006 CCAC Annual Report Page 1 Downtown business and property owners will be critical to the future success of Downtown projects. The Commission worked with Staff to assist in the promotion of two MTIP projects which were identified for Downtown: 1) Main Street Retrofit, the redesign and reconstruction of approximately one half of Main Street in accordance with "Green Street" standards, and 2) Tigard Transit Center Redesign, a master plan to redesign the existing bus station and surrounding area for redevelopment, more efficient bus use, and pedestrian use. The CCAC wrote a letter of support to Metro, which was signed by all of its members. Several members and others made presentations at the Metro "listening posts" at locations in Beaverton and Downtown Portland to provide public testimony for these projects. The projects could significantly improve progress in the Downtown and both are still in the running. A decision will be forthcoming in March, 2007. The Downtown Implementation Strategy was prepared by Staff and then reviewed and revised with input from the Commission. The Commission played the important role of ensuring that the projects and ideas in the Tigard Downtown Improvement Plan were incorporated appropriately into the Strategy. The Strategy was endorsed by the Commission, and adopted by the City Center Development Agency in August of 2006. With the passage of the Urban Renewal Ballot Measure in May, the Commission's future became more secure, and the need for a redefinition of its mission was warranted. The Commission and staff drafted its By Laws and submitted them to Council for revision. The result is a set of By Laws with which both City Council and the Commission are comfortable, and ones for which the Commission feels a personal sense of ownership. They were adopted by Council in October 2006. One of the key projects begun in 2006 is the Fanno Creek Park and Public Use Master Plan Area Request for Proposals (RFP). The RFP was issued in late November 2006, with proposals due in mid January 2007. The Commission has taken particular interest in the master plan, and looks forward to the role it will play in facilitating broad community support. The Chair of the CCAC will act as Chair of the Fanno Creek Park / Plaza Steering Committee. The design of a central public gathering space that truly meets the long-term needs and desires of the community is an important objective and will become our mission. Additional Recommendations to Council: In order to better carry out its mission, the City Center Advisory Commission requests that the City Center Development Agency make additional resources available through professional memberships and access to outside expertise, events, and publications. Signed Carl Ultzer, Chair, Ci V~ente Advi ory Commission 2006 CCAC Annual Report Page 2 Agenda Item No. act& SAS l O tj Meeting of--) Fleeting Date January 16, 2007 COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Follow-Up Presentation to Council by the Chief on proposed aMalking Ordinance. Prepared By: Chief Bill Dickinson Dept Head Approval: City Mgr Approval: ISSUE BEFORE THE COUNCIL A new jaywalking ordinance was offered for Council consideration at the November 28, 2006, City Council meeting. Council directed staff to revisit several issues in the proposed ordinance. Staff is returning with a revised version for Council consideration and discussion. STAFF RECOMMENDATION Staff recommends that Council consider placing this ordinance on a future Council business meeting agenda. KEY FACTS AND INFORMATION SUMMARY The discussion with Council will be to review the recommendations and amendments stemming from Council comments during the November 28th, 2006 workshop meeting. Staff reduced the distance for compulsory use of a crosswalk and established a clearly defined rule for citizens to follow when not within 100 feet of a crosswalk. The purpose of the ordinance is to enhance safety through the reduction of car vs. pedestrian accidents. . OTHER ALTERNATIVES CONSIDERED Redraft the proposed ordinance subject to further Council revisions. Do not consider passing a jaywalking Ordinance. CITY COUNCIL GOALS None. ATTACHMENT LIST Attachment A: Draft Jaywalking Ordinance. Attachment B: ORS 801.220 FISCAL NOTES There is no cost associated with this presentation. \\Ug20Unetpub\tig2G\w oot\foms\form dots\muncil agenda item summary sheet 07.doc ATTACHMENT A CITY OF TIGARD, OREGON R TIGARD CITY COUNCIL ORDINANCE NO. 07- AN ORDINANCE AMENDING THE TIGARD MUNICIPAL CODE BY ADDING A NEW SECTION 10.32.235 REGARDING USE OF CROSSWALKS QAYWALKING) WHEREAS, Tigard has experienced collisions involving pedestrians and vehicles as well as injuries resulting from those collisions; and WHEREAS, the City Council finds that guidelines f64 pedestrians crossing public roadways are necessary for increased public safety and to reduce the number of collisions involving pedestrians and vehicles; NOW, THEREFORE, THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Tigard Municipal Code is amended by adding a new Section 10.32.235 to read as follows: 10.32.235 USE OF CROSSWALKS QAYWALKING) 1. No pedestrian may cross the street or roadway other than within a crosswalk if they are within 100 feet of a crosswalk. 2. A Pedestrian shall cross a street or roadway at a right angle unless crossing within a crosswalk. 3. For purposes of this section, "crosswalk" has the same meaning as found in Oregon Revised Statutes. 4. A violation of any provision of this section is a Class D violation notwithstanding any other provision in this chapter. SECTION 2: This ordinance shall be effective 30 days after its passage by the Council, signature by the Mayor, and posting by the City Recorder. PASSED: By vote of all Council members present after being read by number and title only, this day of 32007. Catherine Wheatley, City Recorder ORDINANCE No. 07- Page 1 APPROVED: By Tigard City Council this day of )2007. Craig Dirksen, Mayor Approved as to form: City Attorney Date ORDINANCE No. 07- Page 2 ATTACHMENT B ORS 801.220 801.220 "Crosswalk." "Crosswalk" means any portion of a roadway at an intersection or elsewhere that is distinctly indicated for pedestrian crossing by lines or other markings on the surface of the roadway that conform in design to the standards established for crosswalks under ORS 810.200. Whenever marked crosswalks have been indicated, such crosswalks and no other shall be deemed lawful across such roadway at that intersection. Where no marked crosswalk exists, a crosswalk is that portion of the roadway described in the following: (1) Where sidewalks, shoulders or a combination thereof exists, a crosswalk is the portion of a roadway at an intersection, not more than 20 feet in width as measured from the prolongation of the lateral line of the roadway toward the prolongation of the adjacent property line, that is included within: (a) The connections of the lateral lines of the sidewalks, shoulders or a combination thereof on opposite sides of the street or highway measured from the curbs or, in the absence of curbs, from the edges of the traveled roadway; or (b) The prolongation of the lateral lines of a sidewalk, shoulder or both, to the sidewalk or shoulder on the opposite side of the street, if the prolongation would meet such sidewalk or shoulder. (2) If there is neither sidewalk nor shoulder, a crosswalk is the portion of the roadway at an intersection, measuring not less than six feet in width, that would be included within the prolongation of the lateral lines of the sidewalk, shoulder or both on the opposite side of the street or highway if there were a sidewalk. [1983 c.338 §36] Agenda Item No. S +Ud,2 SASS i OY-) Meeting of a-1 p~ COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Presentation to Council by the Chief on a Proposed Graffiti Ordinance. Prepared By: Chief Bill Dickinson Dept Head Approval: 1-" O City Mgr Approval: ISSUE BEFORE THE COUNCIL Recent citizen complaints about the increased incidence of graffiti in Tigard prompted Council to direct staff to bring the issue and possible solution forward for discussion. STAFF RECOMMENDATION Staff recommends that Council review statistical and anecdotal information regarding the graffiti problem in Tigard. Staff will present two recommended ordinances employed by neighboring jurisdictions for Council consideration. Both are effective ordinances; however, staff leans towards recommending a hybrid model of the two. KEY FACTS AND INFORMATION SUMMARY The discussion with Council will determine whether or not to initiate a new ordinance to give police a tool to deal with the negative impact of graffiti crimes. Information will be presented regarding the increased rates of graffiti in Tigard, including the incidence of gang graffiti, as well as an increase in hate crime graffiti that has been associated with some of our recent incidents. The proposed ordinance is intended to provide a procedure for removal of graffiti from buildings, walls and other structures in order to reduce social and economic deterioration within the City and to promote public safety and health. Material presented for review includes the City of Portland's Chapter 14B.80 (Graffiti Nuisance Property) and Tualatin's Municipal Code, Chapter 6-10 governing graffiti. These two examples offer both soft and hard line approaches toward addressing the removal of graffiti from private property. Although both models can be effective, staff recommends a hybrid model which first encourages compliance but ultimately gives us an effective tool for gaining compliance by property owners. OTHER ALTERNATIVES CONSIDERED • Adopt City of Portland Ordinance • Adopt City of Tualatin Ordinance. • Take no action. CITY COUNCIL GOALS None. ATTACHMENT LIST Attachment A: Copy of language used in the City of Portland Municipal Code regarding graffiti. Attachment B: Copy of Chapter 6-10 of the Tualatin Municipal Code.. Attachment C: Proposed hybrid ordinance. FISCAL NOTES No cost associated with this presentation. \\tig20Ynetpub\tig20\wwwmot\fo"s\fo" docs\council agenda item summary sheet 07.doc Page 1 of 5 ATTACHMENT A Chapter 14B.80 Graffiti Nuisance Property 14B.80.010 Declaration of Purpose. A. It is the purpose and intent of this ordinance to provide for a procedure for removal of graffiti from buildings, walls and other structures in order to reduce social deterioration within the City and to promote public safety and health. B. The Manager may adopt procedures, forms, and written policies for administering and implementing the provisions of this Chapter. 1413.80.020 Graffiti Nuisance Property. A. Any property, building or structure within the City of Portland which becomes a graffiti nuisance property is in violation of this Chapter and is subject to its remedies. B. Any person who permits property under their control to become a graffiti nuisance property shall be in violation of this Chapter and subject to its remedies. 14B.80.030 Definitions. For the purposes of this Chapter, the following definitions shall apply: A. Graffiti: Any unauthorized markings of paint, ink, chalk, dye or other similar substance which is visible from premises open to the public, and that have been placed upon any real or personal property such as buildings, fences, structures, or the unauthorized etching or scratching of such described surfaces where the markings are visible from premises open to the public, such as public rights of way or other publicly owned property. B. Manager: The Graffiti Abatement Manager is the City official, or designated representative, who is responsible for the administration of the Graffiti Nuisance Abatement program under this Chapter. In accordance with adopted procedures, the Manager may appoint such officers, employees and agents as shall be authorized and necessary to enforce the provisions of this Chapter. C. Graffiti Nuisance Property: Property upon which graffiti has been placed and such graffiti has been permitted to remain for more than ten (10) days after the property owner of record has been issued written notification pursuant to Section 14B.80.040 B. D. Occupant: Any person or sublessee, successor or assignee who has control over property. E. Owner: Any person, agent, firm or corporation having a legal or equitable interest in a property and includes but is not limited to: 1. A mortgagor in possession in whom is vested all or part of the legal title to the property or all or part of the beneficial ownership and a right to present use and enjoyment of the premises; or 2. An occupant who has control over the property/premises. F. Permit: Knowingly to suffer, allow, or acquiesce by any failure, refusal or neglect to abate. http://www.portlandonline.com/auditor/index.cfm?cce 28580_print=1&c=28580 12/8/2006 Page 2 of 5 G. Property: Any real or personal property and that which is affixed incidental or appurtenant to real property but not limited to any premises, house, building, fence, structure or any separate part thereof, whether permanent or not. H. Unauthorized: Without the consent of the owner or the occupant. 14B.80.040 Procedures. (Amended by Ordinance No. 178352, effective May 28, 2004.) A. Required Graffiti Removal. The owner or occupant of any property in the City shall remove any graffiti from such property within ten (10) days of the graffiti's appearance. B. Notification 1. Whenever the Manager determines that graffiti exists on any structure in the City of Portland, the Manager may issue an abatement notice. 2. The Manager shall cause the notice to be served upon the property owner and any occupant. The owner or occupant shall have ten (10) days after the date of service of the notice in which to remove the graffiti. The Graffiti Abatement Manager shall have the sole discretion to grant the property owner the option of giving the City written permission to enter on the property and remove the graffiti. 3. Service shall be accomplished by addressing the notice to the owner and occupant and sending it by personal service, registered mail or certified mail. Service on the occupant may also be accomplished by posting the notice in a clearly visible location on the subject property. 4. If graffiti is not removed or written permission is not given to the City to remove the graffiti, the costs of removal may be assessed to the owner and will become a lien on the affected property. For each instance of graffiti abatement, the Manager shall keep an accurate account of all expenses incurred, including an overhead charge of 25 percent for program administration and a civil penalty of $250 for each abatement. In the event that the measures taken are deemed by the Code Hearings Officer to be appropriate, the cost for the same may be made as an assessment lien upon the property. C. Appeal 1. Within ten (10) days of the receipt of the notice, the property owner or occupant may appeal the notice from the Manager to the Code Hearings Officer of the City of Portland, as set out in Chapter 22.10 of this Code. 2. Upon receipt of the appeal request, the Code Hearings Officer shall set the matter for hearing within ten (10) business days. If the Code Hearings Officer finds the property to -be a Graffiti Nuisance Property, and the owner or responsible party has been given notice in accordance with Subsection B. above, the Code Hearings Officer shall specify when and under what conditions the graffiti shall be abated. D. Removal of Graffiti 1. The Manager may summarily abate any graffiti on any utility poles and cabinets, on exterior walls and fences immediately abutting public streets or property, or on any public property, http://www.portlandonline.com/auditor/index.cfm?cce_28580_print=l &c=28580 12/8/2006 Page 3 of 5 including but not limited to traffic signs and lights. 2. Whenever the Manager has reasonable cause to believe that there exists upon any building or structure any graffiti requiring abatement under this Chapter, the Manager may enter upon the graffiti nuisance property at all reasonable times to perform any duty imposed on the Manager under this Chapter, and to enforce the provisions of this Chapter. Upon the failure to comply with the notice of abatement by the designated compliance date, and if the property owner or occupant has not appealed the notice as provided under Subsection C., the following steps may be taken if the graffiti nuisance property is plainly enclosed to create privacy and prevent access by unauthorized persons: a. If the graffiti nuisance property is occupied, the Manager shall first present proper credentials and demand entry to cause the graffiti to be abated. If entry is refused, the Manager may attempt to secure entry by any legal means. b. If the graffiti nuisance property is unoccupied, the Manager shall first make a reasonable attempt to locate the owner or occupant and demand entry. Such demand may be included in the initial notice sent to the owner or occupant under Subsection B. above. If entry is refused, the Manager may attempt to secure entry by any legal means. (1) If the Manager has first obtained an administrative search warrant to secure entry onto the graffiti nuisance property to abate the graffiti, no owner or occupant shall refuse, fail or neglect, after proper request, to promptly permit entry by the Manager to abate the graffiti. (2) It shall be unlawful for any owner or occupant to refuse to permit entry by the Manager to abate graffiti under this Chapter after an administrative search warrant has been obtained. Any violation of this Subsection is punishable upon conviction by a fine of not more than $500 and a jail sentence of up to six months. c. If the graffiti is not removed and abated, or cause shown, as specified above, the Manager may cause the graffiti to be removed and abated upon issuance of an Administrative Search warrant. (1) Graffiti Abatement. If the graffiti is not removed and abated, or cause shown, as specified above, the Manager may cause the graffiti to be removed and abated. (2) Warrants. The Manager may request any Circuit Court judge to issue a graffiti abatement warrant whenever entry onto private property is necessary to remove and abate any graffiti. (3) Grounds for Issuance of Graffiti Abatement Warrants; Affidavit. (a) Affidavit. A graffiti abatement warrant shall be issued only upon cause, supported by affidavit, particularly describing: the applicant's status in applying for the warrant; the ordinance or regulation requiring or authorizing the removal and abatement of the graffiti; the building or property to be entered; the basis upon which cause exists to remove or abate the graffiti, and a statement of the graffiti to be removed or abated. (b) Cause. Cause shall be deemed to exist if there is reasonable belief that a http://www.portlandonline.com/auditor/index.cfm?cce_28580-Print=l &c=28580 12/8/2006 Page 4 of 5 graffiti violation exists, as defined in this Chapter, with respect to the designated property, and that the property owner has been given notice and an opportunity to abate the graffiti, and has not responded in a timely fashion. (4) Procedure for Issuance of a Graffiti Abatement Warrant. (a) Examination. Before issuing a graffiti abatement warrant, the judge may examine the applicant and any other witness under oath and shall be satisfied of the existence of grounds for granting such application. (b) Issuance. If the judge is satisfied that cause for the removal and abatement of any graffiti nuisance exists and that the other requirements for granting the application are satisfied, the judge shall issue the graffiti abatement warrant, particularly describing the person or persons authorized to execute the warrant, the property to be entered, and a statement of the general types and estimated quantity of the items to be removed or conditions abated. The warrant shall contain a direction that it be executed on any day of the week between the hours of 8:00 a.m. and 6:00 p.m., or where the judge has specially determined upon a showing that it cannot be effectively executed between those hours, that it be executed at any additional or other time of the day or night. (c) Police Assistance. In issuing a graffiti abatement warrant, the judge may authorize any peace officer, as defined in Oregon Revised Statutes, to enter the described property to remove any person or obstacle and to assist the representative of the bureau in any way necessary to enter the property and, remove and abate the graffiti. (5) Execution of Graffiti Abatement Warrants. (a) Occupied Property. Except as provided in 1413.80.040 D.2., in executing a graffiti abatement warrant, the person authorized to execute the warrant shall, before entry into the occupied premises, make a reasonable effort to present the person's credentials, authority and purpose to an occupant or person in possession of the property designated in the warrant and show the occupant or person in possession of the property the warrant or a copy thereof upon request. A copy of the warrant shall be left with the occupant or the person in possession. (b) Unoccupied Property. In executing a graffiti abatement warrant on unoccupied property, the person authorized to execute the warrant need not inform anyone of the person's authority and purpose, as prescribed in 1413.80.040 D.2.c.(5)(a), but may promptly enter the designated property if it is at the time unoccupied or not in the possession of any person or at the time reasonably believed to be in such condition. In such case a copy of the graffiti abatement warrant shall be conspicuously posted on the property. (c) Return. A graffiti abatement warrant must be executed within 10 working days of its issue and returned to the judge by whom it was issued within 10 working days from its date of execution. After the expiration of the time prescribed by this subsection, the warrant unless executed is void. http://www.portlandonline.com/auditor/index.cfm?cce_28580_print=1 &c=28580 12/8/2006 Page 5 of 5 E. Graffiti Abatement Consent Forms. 1. The Manager shall develop consent forms allowing the Manager to enter onto property to abate the graffiti without prior notice from the Manager. The Manager shall make these consent forms available to the public. 2. Property owners and occupants may request and sign consent forms for allowing graffiti abatement. The Graffiti Abatement Manager shall renew the consent forms at least biannually. http://www.portlandonline.com/auditor/index.cfm?cce 28580_print=l&c=28580 12/8/2006 ATTACHMENT B Tualatin Municipal Code 6-10-010 Chapter 6-10 Graffiti Sections: (9) "Manager" means the Tualatin City Manager 6-10-010 Definitions. or the manager's designee who is responsible for 6-10-020 Graffiti Prohibited. the administration of the graffiti nuisance abatement 6-10-030 Possession of Graffiti Implement program under this chapter. Prohibited. (10) "Occupant" means any person, tenant, sub- 6-10-040 Other Violations. lessee, successor or assignee that has control over 6-10-050 Community Service. property. 6-10-060 Graffiti Removal; Notice and (11) "Owner" means any person, agent, firm or Procedures. corporation having a legal or equitable interest in a 6-10-070 Emergency Clause. property and includes but not limited to a mortgagor in possession, an occupant, or a person, agent, firm 6-10-010 Definitions. or corporation that owns or exercises control over (1) "Abate" means to remove graffiti from the items of property, such as utility poles, drop boxes, public view. postal collection boxes, and other types of contain- (2) "Aerosol paint container" means any aerosol ers. container adapted or made for spraying paint. (12) "Permit" means to knowingly allow, suffer, (3) "Etching device" means a glass cutter, awl or acquiesce by a failure, refusal or neglect to abate. any device capable of scratching or etching the sur- (13) "Premises open to the public" means all face of any structure or personal property. public spaces, including but not limited to streets, (4) "Felt tip marker" means an indelible marker alleys, sidewalks, parks, rights of way and public or similar implement with a tip which, at its broad- open space, and private property onto which the est width, is greater than one-fourth inch. public is regularly invited or permitted to enter for (5) "Graffiti" means any inscription, word, fig- any purpose. ure, or design that is marked etched, scratched, (14) "Property" means any real or personal drawn, or painted on any surface with paint, ink, property, including but not limited to items affixed chalk, dye or other similar substance, regardless of or appurtenant to real property or premises, house, content, which is visible from premises open to the building, fence, or structure, and items of machin- public, such as public rights of way or other pub- ery, drop boxes, waste containers, utility poles and ljcly-owned property, and that has been placed upon vaults, and post office collection boxes. any real or personal property, such as buildings, (15) "Responsible party" means an owner, an fences, and structures, without authorization from entity or person acting as an agent for an owner by the owner or responsible party. agreement, that has authority over the property or is (6) "Graffiti implement" means an aerosol paint responsible for the property's maintenance or man- container, a felt tip marker, an etching device, or a agement. There may be more than one party re- graffiti stick. sponsible for a particular property. (7) "Graffiti nuisance property" means a prop- (16) "Unauthorized" means without consent of erty upon which graffiti has been placed and such the owner, occupant or responsible party. graffiti has been permitted to remain for more than [Ord. 1205-06, March 13, 20061 seven days after the property owner of record or oc- cupant has been issued written notification. 6-10-020 Graffiti Prohibited. (8) "Graffiti stick" means a device containing a (1) It is unlawful and a violation of this chapter solid form of paint, chalk, wax, epoxy, or other for any person to place or put by any means, any similar substance capable of being applied to a sur- drawing, inscription, figure, symbol, mark, or any face by pressure, and upon application, leaving a type of commonly known graffiti on any public or mark at least one-fourth of an inch wide. private property without the consent of the owner of 6-10 - 1 (Revised 3/2006) 6-10-030 Tualatin Municipal Code the premises on which the property is located, or stances exist that would preclude such service. upon natural surfaces such as rocks, trees or any Reasonable effort shall be made to require the vio- surface whatsoever. It is unlawful and a violation lator to perform a type of community service that is of this chapter for any person to solicit or command reasonably expected to have the most rehabilitative another person to apply graffiti or aid or abet an- effect on the person, preferably community service other person in applying graffiti. that constitutes in significant part the removal of (2) A violation of subsection (1) of this section graffiti. is a violation punishable by a maximum fine not to [ord. 1205-06, March 13, 2006] exceed three hundred sixty dollars. Each wall or object upon which graffiti is placed constitutes a 6-10-060 Graffiti Removal; Notice and separate violation. Each day on which a violation Procedures. occurs or continues is a separate violation. (1) The owner or occupant of any property [Ord. 1205-06, March 13, 20061 within the City of Tualatin shall remove any graffiti from that property within seven days of the graf- 6-10-030 Possession of Graffiti Implement fiti's appearance. Prohibited. (2) Whenever the Manager determines that graf- (1) No person may possess, with the intent to fiti exists on any property in the City, the Manager unlawfully apply graffiti on any real or personal may issue an abatement notice. The owner or oc- property of another, any graffiti implement. cupant shall have seven days after the date of ser- (2) Unlawful possession of a graffiti implement vice of the notice to remove the graffiti. is a violation of this chapter punishable by a maxi- (3) The notice shall be served by addressing the mum fine not to exceed ninety dollars. Each day on notice to the owner and occupant and delivering it which a violation occurs is a separate violation. by personal service or by mailing it as certified (3) In addition to issuing a citation, a graffiti im- mail. Service may also be accomplished by posting plement used or possessed in violation of this sec- the notice in a clearly visible location on the subject tion may be immediately seized and impounded by property. the police department. The court, upon disposition (4) If the person who was served the notice is of the issued citation, shall determine whether the unable to remove, or cause to remove, the graffiti instrument shall be returned to the defendant or within the seven-day period due to a hardship, he or deemed to be contraband subject to destruction un- she may apply to the Manager for an extension of der Oregon law. time in which to remove the graffiti. For purposes [Ord. 1205-06, March 13, 20061 of this subsection, "hardship" includes but is not limited to serious illness or disability, extremely in- 6-10-040 Other Violations. clement weather that temporarily prevents removal (1) Any property located in the City of Tualatin of the graffiti, or other extraordinary circumstance. that becomes a graffiti nuisance property is in viola- (5) If graffiti is not removed within seven days tion of this chapter and is subject to its remedies. after serving notice on the owner and occupant, the (2) Every responsible party who permits a prop- Manager may cause a citation to be issued to the erty to become a graffiti nuisance property is in vio- owner or occupant or both requiring the person to lation of this chapter and subject to its remedies. appear in Tualatin Municipal Court. [ord. 1205-06, March 13, 2006] (6) Failure to remove graffiti as required by this section is a violation punishable by a fine of up to 6-10-050 Community Service. one hundred fifty dollars. Each day the graffiti re- in lieu of a portion of any fine that may be mains after the notice is sent constitutes a separate imposed under TMC 6-10-020 and 6-10-030, the offense. court shall order the violator to perform community service, unless the court finds that special circum- (Revised 3/2006) 6-10 - 2 Tualatin Municipal Code 6-10-070 (7) The City Manager may adopt rules and pro- cedures to implement this chapter. [Ord. 1205-06, March 13, 20061 6-10-070 Emergency Clause. [ord. 1205-06 §7, March 13, 2006] 6-10 - 3 (Revised 3/2006) ATTACHMENT C Graffiti Ordinance Definitions 1) "Abate" means to remove graffiti from the public view. 2) "Graffiti" means any inscription, word, figure, or design that is marked, etched, scratched, drawn or painted on any surface with paint, ink, chalk, dye, other similar substance or placement of stickers or appliques, regardless of content, which is visible from premises open to the public, such as public right of ways or other publicly-owned property, and that has been placed upon any real or personal property, such as buildings, fences, and structures, without authorization from the owner or responsible party. 3) "Graffiti nuisance property" means a property upon which graffiti has been placed and such graffiti has been permitted to remain for more than 14 days after the property owner of record or occupant has been issued written notification. 4) "Manager" means the Tigard City Manager or the manager's designee who is responsible for the administration of the graffiti nuisance abatement program under this chapter. 5) "Occupant" means any person, tenant, sublessee, successor or assignee that has control over property. 6) "Owner" means any person, agent, firm or corporation having a legal or equitable interest in a property and includes but not limited to a mortgagor in possession, an occupant, or a person, agent, firm or corporation that owns or exercises control over items of property such as utility poles, drop boxes, postal collection boxes, and other types of containers. 7) "Permit" means to knowingly allow, suffer, or acquiesce by any failure, refusal, or neglect to abate. 8) "Premises open to the public" means all public spaces, including but not limited to streets, alleys, sidewalks, parks, rights of way and public open space, and private property onto which the public is regularly invited or permitted to enter for any purpose. 9) "Property" means any real or personal property, including but not limited to items affixed or appurtenant to real property or premises, house, building, fence or structure and items of machinery, drop boxes, waste containers, utility poles and vaults, and post office collection boxes. 10) "Responsible party" means an owner, an entity or person acting as an agent for an owner by agreement, that has authority over the property or is responsible for the property's maintenance or management. There may be more than one party responsible for a particular property. 11) "Unauthorized" means without consent of the owner, occupant or responsible party. Graffiti Nuisance Property 1) Any property location in the City of Tigard that becomes a graffiti nuisance property is in violation of this chapter and is subject to its remedies. 2) Every responsible party who permits a property to become a graffiti nuisance property is in violation of this chapter and subject to its remedies. Graffiti Removal; Notice and Procedures 1) The owner or occupant of any property within the City of Tigard shall remove any graffiti from that property within 14 days of the graffiti's appearance. 2) Whenever the Manager determines that graffiti exists on any property in the City, the Manager may issue an abatement notice. The owner or occupant shall have 14 days after the date of service of the notice to remove the graffiti. 3) The notice shall be served by addressing the notice to the owner or occupant and delivering it by personal service or by mailing it as certified mail. Service may also be accomplished by posting the notice in a clearly visible location on the subject property. 4) If the person who was served the notice is unable to remove, or cause to remove, the graffiti within the seven-day period due to a hardship, he or she may apply to the Manager for an extension of time in which to remove the graffiti. For purposes of this subsection, "hardship" includes but is not limited to serious illness or disability, extremely inclement weather that temporarily prevents removal of the graffiti, or other extraordinary circumstance. 5) If the graffiti is not removed within 14 days after serving notice on the owner or occupant, the Manager may cause a citation to be issued to the owner or occupant or both requiring the person to appear in Tigard Municipal Court. 6) Failure to remove the graffiti as required by this section is a violation punishable by a fine of up to one hundred dollars. Each day the graffiti remains after the notice is sent constitutes a separate offense. 7) The City Manager may adopt rules and procedures to implement this chapter. On S dy Sss o~ CITY OF TIGARD, OREGON DRAFT ORDINANCE NO. 07 AN ORDINANCE AMENDING THE TIGARD MUNICIPAL CODE TO ADD SECTION 7.40.125 FOR THE REGULATION OF GRAFFITI IN PUBLIC PLACES. WHEREAS, the rate of graffiti left on public places in the city is increasing; and WHEREAS, gang graffiti and hate graffiti have been associated with some of the recent incidents reported by the Tigard Police Department; and WHEREAS, the Community Service Officers are well placed to observe the nuisance and to act to enforce the new city regulations against graffiti; and WHEREAS, the Council finds that graffiti has become a nuisance affecting public safety that should be closely regulated, and to do so is in the public interest and necessary for the peace, health and safety of the general public; NOW, THEREFORE, THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Tigard Municipal Code is amended by adding a new Section 7.40.125 Graffiti, to read as follows: 7.40.125 Graffiti A. Definitions. As used in this section, unless the context requires otherwise: 1. "Abate" means to remove graffiti from the public view. 2. "Graffiti" means any inscription, word, figure, or design that is marked, etched, scratched, drawn or painted on any surface with paint, ink, chalk, dye, other similar substance or placement of stickers or appliques, regardless of content; which is visible from premises open to the public, such as public right of ways or other publicly owned property, and that has been placed upon any real or personal property, such as buildings, fences, and structures, without authorization from the owner or responsible party 3. "Graffiti nuisance property" means a property upon which graffiti has been placed and such graffiti has been permitted to remain for more than 14 days after the property owner of record or occupant has beers issued written notification. Ordinance No. 07- Page 1 4. "Manager" means the Tigard City Manager or the manager's designee who is responsible for the administration of the graffiti nuisance abatement program under this chapter. 5. "Occupant" means any person, tenant, sublessee, successor or assignee that has control over property. 6. "Owner" means any person, agent, firm or corporation having a legal or equitable interest in a property and includes but not limited to a mortgagor in possession, an occupant, or a person, agent, Gm or corporation that owns or exercises control over items of property such as utility poles, drop boxes, postal collection boxes, and other types of containers. 7. "Permit" means to knowingly allow, suffer, or acquiesce by any failure, refusal, or neglect to abate. 8. "Premises open to the public" means all public spaces, including but not limited to streets, alleys, sidewalks, parks, rights of way and public on space, and private property onto which the public is regularly invited or permitted to enter for any purpose. 9. "Property" means any real or personal property, including but not limited to items affixed or appurtenant to real property or premises, house, building, fence or structure and items of machinery, drop boxes, waste containers, utility poles and vaults, and post office collection boxes. 10. "Responsible party" means an owner, an entity or person acting as an agent for arm owner by agreement, that has authority over the property or is responsible for the property's maintenance or management. There may be more than one party responsible for a particular property. 11. "Unauthorized" means without consent of the owner, occupant or responsible party. B. Graffiti Nuisance Property 1. Any property location in the City of Tigard that becomes a graffiti nuisance property is in violation of this chapter and is subject to its remedies. 2. Every responsible party who permits a property to become a graffiti nuisance property is in violation of this chapter and subject to its remedies. C. Graffiti Removal; Notice and Procedures 1. The owner or occupant of any property within the City of Tigard shall remove any graffiti from that property within 14 days of the graffiti's appearance. Ordinance No. 06- Page 2 2. Whenever the Manager determines that graffiti exists on any property in the City, the Manager may issue an abatement notice. The owner or occupant shall have 14 days after the date of service of the notice to remove the graffiti. 3. The notice shall be served by addressing the notice to the owner or occupant and delivering it by personal service or by mailing it as certified mail. Service may also be accomplished by posting the notice in a clearly visible location on the subject property. 4. If the person who was served the notice is unable to remove, or cause to remove, the graffiti within the seven-day period due to a hardship, he or she may apply to the Manager for an extension of time in which to remove the graffiti. For purposes of this subsection, "hardship" includes but is not United to serious illness or disability, extremely inclement weather that temporarily prevents removal of the graffiti, or other extraordinary circumstance. 5. If the graffiti is not removed within 14 days after serving notice on the owner or occupant, the Manager may cause a citation to be issued to the owner or occupant or both requiring the person to appear in Tigard Municipal Court. 6. Failure to remove the graffiti as required by this section is a violation punishable by a fine of up to one hundred dollars. Each day the graffiti remains after the notice is sent constitutes a separate offense. 7. The City Manager may adopt rules and procedures to implement this chapter. SECTION 3: This ordinance shall be effective 30 days after its passage by the Council, signature by the Mayor, and posting by the City Recorder. PASSED: By vote of all Council members present after being read by number and title only, this day of , 2007. Catherine Wheatley, City Recorder APPROVED: By Tigard City Council this day of , 2007. Craig Dirksen, Mayor Ordinance No. 07- Page 3 Approved as to form: City Attorney Date G:ImuniMgar&Graftt ordinance.doc Ordinance No. 06- Page 4 Agenda Item No. S+U- u C S 1 Meeting of a . C-) 7 C7'7 ~1 - MEMORANDUM A0 TO: Mayor and City Councilors Craig Prosser, City Manager FROM: Gus Duenas 9d4 City Engineer RE: Status Update - Highway 99W Corridor Improvement and Management Plan DATE: February 13, 2007 The preparation of the Highway 99W Corridor Improvement and Management Plan began August 18, 2006. The grant amount is $176,000 matched by $24,000 in local funds for a total project amount of $200,000. Completion of the project is a current City Council Goal. Project Objectives • Develop concept-level plans for transportation improvements, including roadway cross-section, changes to channelization and traffic control, and identification of alternative mode facilities on 99W, including crosswalks and transit stops. • Identify solutions to accommodate regional and local travel demand in the corridor through transportation improvements and access management. • Identify an integrated system of bicycle, pedestrian and transit facilities to the corridor, including facilities on cross-streets up to one quarter mile from 99W. • Explore options for improving local circulation, particularly to reduce local trip demand on 99W. • Ensure consistency with state and local transportation plans. • Ensure the development and selection of alternatives address social, environmental and financial impacts. • Ensure coordination with stakeholders agencies including Metro, Tri-Met and Oregon Department of Transportation. • Ensure community stakeholders have an opportunity to learn about corridor issues and provide input through an effective public involvement process. The expected outcome is a package of projects that can be implemented over a period of years to ensure that the most benefits are received for project dollars in future construction. The project will also identify opportunities for potential land use changes that could be implemented as redevelopment occurs or explored through future land use studies. Plan Preparation The consulting team of OTAK, Inc. and DKS Associates is preparing the plan with oversight and management by ODOT and City of Tigard staff. A TAC (Technical Advisory Committee), consisting of representatives from agencies and jurisdictions that have an interest in Highway 99W, has been formed to ensure coordination among agencies and jurisdictions and to provide technical oversight. The TAC ensures that information is accurate and that the ultimate products are technically feasible and consistent with interests and goals of public agencies potentially affected by the project A CAC (Citizen Advisory Committee) has also been formed to guide the preparation of the plan and to ensure that the plan takes the citizens' perspective into account in the plan preparation. The CAC is composed of a cross-section of the community with stakeholders along the corridor and the City at-large represented in the membership. Project Schedule The project goals will be achieved by completion of the following tasks: Task 1 - Project Management, Interagency Coordination and Public Involvement. This task will continue throughout the project. Task 2 - Existing Conditions, Plans, and Policies. The report for this task was completed January 2007. Task 3 - Identify Needs, Opportunities and Constraints. This task was completed with an opportunity for the public to review the report at a February 7, 2007 Open House meeting. Public comments were obtained through direct interaction with the consultants and City staff and through a questionnaire made available at the meeting. Task 4 - Alternatives Development. The report for this task is expected to be available for public review on April 12, 2007. The report will be presented and comments from the public will be requested at an Open House meeting (the second of three) scheduled for 6:30 PM Thursday, April 19, 2007 at City Hall. The public input period will be held open for a week following the meeting. Input received will be considered in the evaluation of alternatives. Task 5 - Alternatives Evaluation. The evaluation report is expected to be available on May 24, 2007. The report will be presented and comments from the public will be requested at an Open House meeting (the third of three) scheduled for 6:30 PM Thursday, June 7, 2007 at City Hall. The public input period will be held open for a week following this meeting. Task 6 - Refinement/ Implementation. This task will result in the final plan, which is expected to be available in early July 2007. Attached is a chart providing an overview of the plan preparation process including the tasks and overall timeline for completion. Current Status The Existing Conditions (Task 2) and Needs, Opportunities and Constraints Reports (Task 3) have been submitted. The Existing Conditions Report provided up-to-date information on the existing highway and identified policies, standards and best-practices guidelines to be applied in subsequent tasks. The Needs, Opportunities and Constraints Report identified the transportation needs within the corridor, developed potential measures to alleviate congestion and enhance multi-modal transportation options, and identified opportunities for applying these solutions together with tradeoffs inherent in each measure. An open house meeting (the first of three) was conducted Wednesday, February 7, 2007 at 6:30 PM in the Tigard Library Community Meeting Room. The purpose of this first public meeting was to get a sense from the community as to whether or not the future needs have been accurately and comprehensively identified, and that the measures that have been developed are appropriate to address those needs. A project overview, project status update, and a summary of the identified needs, opportunities and constraints were presented at this meeting. The meeting was well-attended by approximately 35 citizens (many who lived along or had business interests along the corridor) who listened to the presentation and provided input to help guide the preparation of the plan. The needs, opportunities and constraints identified will be used as a basis for the development of alternatives, which is the next phase of the project. Stakeholder interviews will be conducted as part of the next phase to obtain more detailed input from citizens and businesses along the corridor. The next open house meeting will seek public input on the alternatives developed during Task 4. It is scheduled for 6:30 PM Thursday, April 19, 2007 at City Hall. Those attending will be requested to comment on which alternatives should be included in the final plan. The comments will be considered in the preparation of the report for Task 5 - Alternatives Evaluation. The third and final open house meeting is scheduled for Thursday, June 7, 2007 at City Hall. The project will be considered complete after presentation of the plan recommendations to Council sometime in July or August 2007. Attachment c: Tom Coffee, Community Development Department Director Ron Bunch, Long Range Planning Manager Overview of Project Process Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Needs Project Existing Alternatives Alternatives Refinement Management Conditions Opportunities Development Evaluation Implementation Constraints Ongoing Nov 06 Jan 07 Mar 07 May 07 Jun 07 Highway 99W Corridor Improvement and Management Plan Agenda Item # Meeting Date February 27, 2007 COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Establishment of the Fanno Creek Park / Plaza Master Plan Steering Committee Prepared By: Phil Nachbar Dept Head Approval: City Mgr Approval: ISSUE BEFORE THE COUNCIL Review and approve a resolution establishing the Fanno Creek Park / Plaza Master Plan Steering Committee. STAFF RECOMMENDATION Approve the attached resolution establishing the Steering Committee and appointment of terms. KEY FACTS AND INFORMATION SUMMARY The development of a master plan for Fanno Creek Park and public plaza in Downtown is one of the key projects within the Downtown work program for FY 07-08, adopted by Council in August 2006. The project will provide a master plan for the park area and a public plaza. The importance of this project is that it defines the location and design of the central public meeting place for Downtown in addition to adjoining park improvements. As such, the composition of the Steering Committee is intended to seek both broad community support and the support of the Downtown business community and local neighborhoods. This project is listed as a "catalyst" project within the Downtown Plan. It is anticipated that the project will take a minimum of six (6) and up to nine (9) months to complete. The term of appointed members will terminate upon completion of the project. The Fanno Park / Plaza Steering Committee is being set up to provide review and recommendations with regard to the master plan to City Center Development Agency (CCDA). OTHER ALTERNATIVES CONSIDERED None. CITY COUNCIL GOALS The establishment of this steering committee is in further of the one of top Council goals to implement the Downtown Plan. ATTACHMENT LIST Resolution Establishing the Fanno Creek Park / Plaza Master Plan Steering Committee FISCAL NOTES No impact. ~v CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO.07- A RESOLUTION ESTABLISHING A CITIZEN ADIVSORY COMMITTEE TO GUIDE THE PREPARATION OF A MASTER PLAN FOR FANNO CREEK PARK AND A DOWNTOWN PUBLIC PLAZA WHEREAS, the City of Tigard has approved the Tigard Downtown Improvement Plan and City Center Urban Renewal Plan, which identify Fanno Creek Park between Hall Blvd. and Main Street, and a public plaza as key catalyst projects for Downtown; and WHEREAS, the use of Tax Increment Financing was approved by voters in May 2006, providing a long-term financing plan for projects within the City Center Urban Renewal District; and WHEREAS, Fanno Creek Park and a public plaza in Downtown will be used by the whole community and a Citizen Advisory Committee will help establish broad community support for the design of these public spaces; and WHEREAS, individuals representing a wide range of community interests are needed to form the committee and provide input into the preparation of the master plan; and WHEREAS, the committee members were selected through an established process lead by the Mayor. NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: SECTION 1: The Fanno Creek Park and Downtown Public Plaza Master Plan Steering Committee is hereby established to guide the preparation of a master plan. Its membership shall consist of those individuals listed on the attached Exhibit "A" SECTION 2: The mission of the Committee is to: (1) Review and comment on draft master plan materials prepared by the project consultant; and (2) Guide the master plan to ensure that the proposed master plan meets community needs; and (3) Promote public understanding of the proposed master plan. RESOLUTION NO. 07 - 01 Page 1 r SECTION 3: The Fanno Creek Park and Downtown Public Plaza Master Plan Steering Committee shall: (1) Participate in at least four meetings conducted by the project consultant; and (2) Participate in up to three public open house meetings at the completion of project milestones to provide the public with an opportunity to review the progress of the project and offer comments: and (3) Consider comments received by the public; and (4) Present findings and recommendations to City Council and the City Center Development Agency (CCDA) at appropriate times. SECTION 4: The term of service for members of the committee shall expire after the completion of the master plan and the presentation to the City Council and CCDA, and the committee itself shall be terminated at that time. SECTION 5: The Senior Planner for Downtown is assigned as staff liaison to the Committee. Other City staff will be used to support the Committee's activities as deemed necessary throughout the process. SECTION 6: This resolution is effective immediately upon passage. PASSED: This day of 2007. Mayor - ity of Tigard ATTEST: City Recorder - City of Tigar RESOLUTION NO. 07 - Page 2 Exhibit A Fanno Creek Park and Downtown Public Plaza Master Plan Steering Committee Carl Switzer, Chair (City Center Advisory Committee) Alice Ellis Gaut (City Center Advisory Committee) Mike Freudenthal (Parks Board) Trisha Swanson (Parks Board) Dan Dolan (Downtown Business / Property Owner) Chuck O'Leary (Downtown Business / Property Owner) Eugene Butera (Neighborhoods) Lisa Olson (At-large) Brian Wegener (At-large) Mike Swanda (V alternate) Meg Schultz (2nd alternate) Agenda Item # Meeting Date February 27, 2007 COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Re-assignment of City Center Advisory Commission Membership Terms Prepared By: Phil Nachbar Dept Head Approval: City Mgr Approval: C2 ISSUE BEFORE THE COUNCIL Approve a proposed resolution which re-assigns the terms for City Center Advisory Commission (CCAC) members in accordance with their new by-laws adopted in October 2006. STAFF RECOMMENDATION Review and approve the proposed resolution. KEY FACTS AND INFORMATION SUMMARY Under Section 3 of the new CCAC by-laws, the City has the responsibility to determine a means of staggering appointments of all current members using three (3) three-year terms, three (3) two-year terms, and three (3) one-year terms. At a previous study session with Council to determine this, Council suggested that Staff see if the CCAC wanted to come up with their own means of staggering their terms. At the January 10, 2007 CCAC meeting, the CCAC resolved the issue by assigning terms in accordance with the Bylaws. The following is the reassignments that were approved by the CCAC, and are incorporated into the attached resolution. 3-Year Appointment: Commissioners Switzer, Lily, and vacant position 2-Year Appointment: Commissioners Barkley, Potthoff, and Ellis Gaut 1-Year Appointment: Commissioners Gallagher, Craghead, and second vacant position OTHER ALTERNATIVES CONSIDERED None. CITY COUNCIL GOALS The CCAC supports Council's goal of implementing the Downtown Improvement Plan. ATTACHMENT LIST Proposed Resolution for Reassignment of CCAC Membership Terms. FISCAL NOTES N/A CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 07-A- A RESOLUTION RE-ASSIGNING CITY CENTER ADVISORY COMMISSION MEMBERSHIP TERMS WHEREAS, Section 4 of the City Center Advisory Commission (CCAC) by-laws adopted by Council on October 24, 2006 requires that the terms of members be re-assigned to three 3-year terms, three 2- year terms, and three 1-year terms; and WHEREAS, Council has delegated the re-assignment of terms to the CCAC, and at its January 10, 2007 meeting, the CCAC approved new terms for its members; and WHEREAS, re-assignment of membership terms will help meet the new composition of the CCAC per Section 2 of the new by-laws. NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: the following terms be re-designated as follows SECTION 1: 3-year appointments: Commissioners Switzer, Lily, and vacant position; 2-year appointments: Commissioners Barkley, Potthoff, and Ellis Gaut; 1-year appointments: Commissioners Gallagher, Craghead, and vacant position. SECTION 2: In accordance with the Section 4 of CCAC Bylaws, all terms begin January 1 and end December 31. SECTION 3: This resolution becomes effective immediately upon passage. PASSED: This o~ -21 & day of 2007. Mayor City of Tigard ATTEST: City Recorder - City of Tigard RESOLUTION NO. 07 - / 0 Page 1 Anda Item # 3, Y. Q- Date February 27, 2007 FOCAL CONTRACT REVIEW BOARD AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title: Award of Contract for Fuel Delivery and Card-lock Services at Both Captive and Foreign Sites Prepared By: Dennis Koellermeier Dept Head Approval: City Mgr Approval: IssuE BEFORE THE LocAL CONTRACT REvIEW BoARD Shall the Local Contract Review Board award a contract to Bretthauer Oil Company for fuel delivery and card-lock services at both captive and foreign sites? STAFF RECOMMENDATION Staff recommends that the Local Contract Review Board approve the award of a contract to Bretthauer Oil Company for fuel delivery and card-lock services at the City's captive site as well as foreign sites and authorize staff to take the necessary steps to execute the agreement. KEY FACTS AND INFORMATION SUMMARY The City's contact for unleaded and diesel fuel expired at the end of 2006. Since that time, the City has been operating under a bridge agreement with a fuel provider while a detailed analysis of the City's fuel options was conducted Options considered included • Continuing with the existing system of fueling at a combination of captive, or City-owned pumps, and foreign, or commercial fueling card-lock stations • Moving exclusively to either captive or foreign sites • Participation in a "fleet card" program offered by multiple fueling companies • Using the City's purchasing card program to purchase fuel at local stations The analysis showed it was clearly in the City's best interest to retain the current format of fueling at a combination of captive and foreign card-lock stations. Under Tigard Public Contacting Rule 10.045 the purchase of gasoline and diesel fuel is exempt from competitive bidding. Staff did solicit quotes where possible and has documented all efforts in accordance with the terms detailed under Public Contracting Rule 10.045. When all options and quotes were reviewed, including a detailed review of both hard and soft dollar estimates, the Bretthauer Oil Company was found to be the best fuel provider for the City. Bretthauer Oil Company will deliver both unleaded and diesel fuels to the City's captive site as well as offer the same fuels at foreign sites via multiple Pacific Pride commercial fueling stations. This includes the only commercial fuel station in Tigard The cost for the fuel will be charged at a small markup over the wholesale price for the day of purchase; the captive site markup will be 61h cents and the foreign site markup will be 5 cents. OnRRALTFRNATrus CONSIDERED The Local Contact Review Board could choose not to award the contact to Bretthauer Oil Company and could direct staff on how to proceed regarding the City's fuel provider. CrrY COVNCrL GOALS None ATTACHMENT LIST None FYSCALNOTES The estimated annual cost of this contract is $225,000, with expenditures spread over multiple funds and divisions. Contract renewal options would allow the City to extend the contract for up to five years. Agenda Item # 2 . ~o Meeting Date February 27, 2007 LOCAL CONTRACT REVIEW BOARD AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title: Award of Contract for the Construction of 87`h Court & Hall Blvd Sanitary Sewer Extension Sewer Reimbursement District No. 37 Prepared B : Vannie N =en 601~e t He?dA;12roval: ~i Ci M A roval: ISSUE BEFORE THE LOCAL CONTRACT REVIEW BOARD Shall the Local Contract Review, Board; by.motion, approve ,a contract,award.for the construction:of.87`'h Court.&.HalL, , Blvd Sanitary Sewer Extension (Sewer Reimbursement District No. 37)? STAFF RECOMMENDATION Staff recommends that the Local Contract Review Board, by motion, approve a contract award to Emery & Sons Construction in the amount of $295,557.00 and authorize an additional amount of $29,500 to be reserved for contingencies and applied as needed as the project goes through construction. The total amount committed to the project is therefore $325,057.00. KEY FACTS AND INFORMATION SUMMARY • On January 23, 2007, Council approved the formation of Reimbursement District No. 37. • The project was advertised for bids on January 30, 2007 in the Daily Journal of Commerce, and February 1, 2007 in The Times. A project addendum was issued February 8, 2007 to provide bidders with an ODOT permit for work to be performed on Hall Blvd. The bid opening was conducted at 2:15 PM on February 13, 2007 and the bid results are: Emery & Sons Construction Stayton, OR $295,557.00 Dunn Construction Gresham, OR $306,673.60 NW Kodiak Construction Sherwood, OR $310,542.51 Kerr Contractors Woodburn, OR $383,607.00 Engineer's Estimate Range $228,000 to $278,000 • The project includes Bid Schedule B for construction of approximately 680 feet of 8-inch sanitary sewer main and 210 feet of 4-inch service lateral to provide sewer service to six (6) lots along 87'h Court and Hall Blvd. Costs associated with Bid Schedule B will be reimbursed by the district. The high estimate for Bid Schedule B is $135,500. The bid submitted by Emery & Sons Construction for completion of the bid schedule is $155,518.00. This bid is approximately $20,000 higher than the high Engineer's estimate. • Also included in the project is Bid Schedule A for construction of 230 feet of a downstream sewer line and other sewer facilities to serve the McDonald Street Sanitary Sewer District (District No. 1). An existing dry sewer line was constructed for the district in 1991 as part of the McDonald Street Improvements project in order to avoid the need to dig up the street in the future. It was anticipated that an outfall for the district would be constructed as developments occur or as the broader neighborhood requests sanitary sewer service. District No. 1 was formed on January 21, 1992 and the reimbursement requirement ended on January 21, 2002. The outfall has not been constructed for the district. • Had the outfall for District No. 1 been completed, the 87 h Court and Hall Blvd Sanitary Sewer Reimbursement District (this project) would not have to install the downstream sewer line to serve the proposed district. Therefore, costs associated with Bid Schedule A are considered City costs and are not included in the District Reimbursement costs. The high estimate for Bid Schedule A is $142,500. The bid submitted by Emery & Sons Construction for completion of the bid schedule is $140,039. This bid is approximately $2,500 less than the high Engineer's estimate. • As a result of the high and low bids submitted for both schedules ($20,000 higher in one bid and $2,500 lower in the other), the total bid submitted by Emery & Sons Construction is approximately $17,500 or 6.3% higher than the estimated amount. Staff has reviewed all the bids and has determined that Emery & Sons' bid is reasonable and recommends approval of the contract award to this lowest bidder. • Upon'Council approval of the contract and after a Notice to Proceed has been issued, the contractor will have 50 days to complete the construction of the project. The construction is anticipated to start in mid- March and is expected to be completed by mid-May of this year. OTHER ALTERNATIVES CONSIDERED None COUNCIL GOALS AND TIGARD BEYOND TOMORROW VISION STATEMENT The project is part of the Citywide Sewer Extension Program established by City Council to provide sewer service to developed but unserved residential areas in the City. It meets the Tigard Beyond Tomorrow Growth & Growth Management goal of "Growth will be managed to protect the character and livability of established areas, protect the natural environment and provide open space throughout the community." Sewer service enhances the environment and protects the health of the residents by providing for the closure of septic systems 40 to 50 years old. ATTACHMENT LIST Project location map FISCAL NOTES The amount of $2,000,000 is available in the FY 2006-07 Citywide Sewer Extension Program for this and other sewer extension projects. The approximate remaining fund balance of $1,850,000 is sufficient to award a contract of $295,557.00 to Emery & Sons Construction and to reserve a contingency amount of $29,500 for the project. 87TH AVENUE - FY 2006-07 SANITARY SEWER EXTENSION PROGRAM REIMBURSEMENT DISTRICT NO. 37 A PORTION OF THE SW 1 /4 SECTION 2 T2S R1 W W.M. EDGEWOOD ST FANNY ~m C A 87 N C'I' T O R Y ca MCDONALD ST J J I NY CREEK C T r VICINITY MAP NTS Agenda Item # 3 •1"4 C - Meeting Date February 27, 2007 LOCAL CONTRACT REVIEW BOARD AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title: Award of Contract for the Construction of Hill View Street & 102d Avenue Sanitary Sewer Extension Sewer Reimbursenment District No. 39 Pre aced B : Vannie N en Un` Dept Head A roval: 10_1A11 City M A roval: OP ISSUE BEFORE THE LOCAL CONTRACT REVIEW BOARD Shall the Local Contract Review Board,,by motion;-approve a.contract award for the,construction of Hill.View'Street,& 87d' Avenue Sanitary Sewer Extension (Sewer Reimbursement District No. 39)? STAFF RECOMMENDATION Staff recommends that the Local Contract Review Board, by motion, approve a contract award to NW Kodiak Construction in the amount of $125,897.80 and authorize an additional amount of $12,500 to be reserved for contingencies and applied as needed as the project goes through construction. The total amount committed to the project is therefore $138,397.80. KEY FACTS AND INFORMATION SUMMARY • On October 10, 2006, Council approved the formation of Reimbursement District No. 39. • The project was advertised forbids on January 30, 2007 in the Daily Journal of Commerce, and February 1, 2007 in The Times. No project addenda were issued. The bid opening was conducted at 2:00 PM on February 13, 2007 and the bid results are: Cipriano & Son Construction Boring, OR $115,340.70* NW Kodiak Construction Sherwood, OR $125,897.80 Kerr Contractors Woodburn, OR $157,581.50 Dunn Construction Gresham, OR $158,757.00 CivilWorks NW Vancouver, WA $160,126.00 Emery & Sons Construction Stayton, OR $177,341.00 CR Woods Trucking Sherwood, OR $199,209.70 Paul Lambson Contracting North Bonneville, WA $363,009.28 Engineer's Estimate Range $161,000 to $197,000 * Non-responsive bid • The project includes construction of approximately 700 feet of 8-inch sanitary sewer main and 200 feet of 4- inch service lateral to provide sewer service to seven (7) lots along Hill View Street and 102d Avenue north of McDonald Street and east of the Highway 99W/McDonald Street Intersection. • The apparent low bid submitted by Cipriano & Son Construction is approximately $46,000 or 28% lower than the low estimate of $161,000. After the bid opening, the contractor verbally requested withdrawal of his bid due to an oversight of a major bid item in his bid proposal. The contractor met with staff on February 16, 2007 and submitted his request in writing for withdrawal of the bid. Although soil samples were included in the bid documents depicting the existing soil conditions to bidders, the contractor stated that he had significantly underestimated the "Trench excavation & backfill" item by not including any provisions for dewatering, which will be required because of the high water tables. He stated that inclusion of an amount for the dewatering would have increased his bid beyond that of the next lowest bidder. He further stated that he cannot perform the job with the bid amount submitted. Because of the mistake admitted by the contractor both verbally and in writing, staff has determined that the bid submitted by Cipriano & Son Construction is non-responsive and should be rejected. • The next lowest bid submitted by NW Kodiak Construction is in the amount of $125,897.80. This bid is approximately $35,000 or 21.8 % lower than the low estimate of $161,000. Staff reviewed each item proposed by the contractor to ensure completeness and correctness of the bid. The contractor also expressed his interest in performing the work and assured staff that the project will be fully completed within the indicated timeframe and the bid amount. Staff therefore recommends approval of the contract award to NW Kodiak' Construction. • Upon Council approval of the contract and after a Notice to Proceed has been issued, the contractor will have 50 days to complete the construction of the project. The construction is anticipated to start in mid- March and is expected to be completed by mid-May of this year. OTHER ALTERNATIVES CONSIDERED None COUNCIL GOALS AND TIGARD BEYOND TOMORROW VISION STATEMENT The project is part of the Citywide Sewer Extension Program established by City Council to provide sewer service to developed but unserved residential areas in the City. It meets the Tigard Beyond Tomorrow Growth & Growth Management goal of "Growth will be managed to protect the character and livability of established areas, protect the natural environment and provide open space throughout the community." Sewer service enhances the environment and protects the health of the residents by providing for the closure of septic systems 40 to 50 years old. ATTACHMENT LIST Project location map FISCAL NOTES The amount of $2,000,000 is available in the FY 2006-07 Citywide Sewer Extension Program for this and other sewer extension projects. The approximate remaining fund balance of $1,850,000 is sufficient to award a contract of $125,897.80 to NW Kodiak Construction and to reserve a contingency amount of $12,500 for the project. HILL VIEW STREET & 102ND AVENUE FY 2006-07 SANITARY SEWER EXTENSION PROGRAM . REIMBURSEMENT DISTRICT NO. 39 A PORTION OF THE SW 1 /4 SECTION 2 T2S R1 W W.M. HILL VIEW ST W W N Q j ~ Q ~ (n O Q MCDONALD ST ~ W W v Q Q z Q) O o o F o° VICINITY MAP NTS a a. F U regon Oregon Department of Transportation o Support Services Theodore R. Kulongixki, Govemor Procurement Office 455 Airport Rd. SE, Bldg. K Salem, OR 97301-5348 503-986-6911 FE B2?ZOp~ a February 26, 2007 O Mr. Agustin Duenas, P.E. AR~ z City of Tigard 0 13125 SW Hall Boulevard Tigard, OR 97223 W RE: Signature for Agreement 23927 City of Tigard Motor Vehicle Fuel Dealer Tax Collection 3b Dear Mr. Duenas O Attached please find four original copies of the above referenced agreement. Please obtain the appropriate signatures for the City of Tigard and return to me in the envelope provided. If you have questions, please contact me at (503) 986-6911. Sincerely, jlx~du UjuJt' Trish Barker, Procurement and Contract Specialist ODOT Procurement Office Enclosure TB:tt Mlsc. Contracts and Agreements Agreement No. 23927 INTERGOVERNMENTAL AGREEMENT Motor Vehicle Fuel Dealer Tax Collection THIS AGREEMENT is made and entered into by and between THE STATE OF OREGON, acting by and through its Department of Transportation, hereinafter referred to as "ODOT"; and the City of Tigard, hereinafter referred to as "City", collectively referred to as "Parties". RECITALS 1. By the authority granted in ORS 190.110 and 283.110, state agencies may enter into agreements with units of local government or other state agencies for the performance of any or all functions and activities that a party to the agreement, its officers, or agents have the authority to perform. 2. By the authority granted in ORS 802.010, ODOT shall perform all of the duties, functions, and powers with respect to the administration of the laws relating to the motor vehicle fuel license tax, aircraft fuel license tax and use fuel license tax including ORS Chapter 319. 3. By the authority granted in ORS 802.110, the monies received under this Agreement shall be deposited in the Department of Transportation Driver and Motor Vehicle Suspense Account with the State Treasurer. 4. For purposes of this Agreement, duties of the tax administrator shall be defined as administration, including licensing of dealers, collection and enforcement of motor vehicle fuel tax. NOW THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the parties hereto as follows: TERMS OF AGREEMENT 1. The City of Tigard Code, Ordinance No. 06-21 attached as Exhibit A, and by this reference made a part hereof, (hereinafter referred to as "Ordinance 06-21 authorizes the collection and use of a $.03 per gallon motor vehicle fuel license tax (hereinafter referred to as "tax") on motor vehicle fuel dealers that sell, use or distribute fuel in the City. City desires that ODOT act as the tax administrator for the tax, with the exception of declaring the effective date of the tax. 2. The term of this Agreement shall begin on the date all required signatures are obtained and shall terminate on December 31, 2011, unless extended by an amendment to this Agreement. City of Tigard/ODOT Agreement No. 23927 CITY OBLIGATIONS 1. The costs incurred by ODOT as tax administrator, plus any refunds authorized by this Agreement shall be paid from the Department of Transportation Driver and Motor Vehicle Suspense Account with the State Treasurer. 2. City's Project Manager responsible for coordinating the administrative requirements of this Agreement is the City Manager or designee. ODOT OBLIGATIONS 1. Upon the effective date of Ordinance 06-21, the ongoing fee charged to the City for activities performed by ODOT required or .necessary for the implementation of City Ordinance 06-21 shall be at a rate of $55.00 per hour not to exceed 50 hours (hereinafter referred to as "start up costs). The $55.00 per hour, 50 hour cap applies only to start up costs incurred by ODOT staff. Start up costs include but are not limited to programming charges, service and supplies, travel, Attorney General costs, and ODOT staff time and are in addition to the ongoing fee for administering the ordinance. In no event will total start up costs be less than $2,200 nor shall they exceed $7,500. 2. Costs incurred by ODOT for administration of this Agreement shall be paid from the Department of Transportation Driver and Motor Vehicle Suspense Account with the State Treasurer. Administration includes, but is not limited to, processing reports and payments; entering data into system; resolving errors and discrepancies; managing records; responding to licensee inquiries, and auditing. 3. ODOT will deduct refunds, costs of administration and collection for the month, and the balance will be transferred to the City's Local Government Investment Pool Account with the state treasurer no later than the 15th day of the month following the month of collection. 4. ODOT shall be responsible for all aspects of tax administration as it pertains to Ordinance 06-21 and as further defined in this Agreement. ODOT will not act as tax administrator for purposes of declaring the effective date of the tax, or commencing and prosecuting lawsuits to final determination in any court. ODOT will provide administrative support in the event of a lawsuit. 5. ODOT may, at its sole discretion, determine what action shall be taken to enforce Ordinance 06-21 for purposes of tax administration. In exercising its discretion, ODOT shall provide a level of service comparable to the level of service it provides in the administration of the Oregon motor vehicle fuel tax statutes. Audits will be limited to motor vehicle fuel dealers that are also licensed under ORS Chapter 319. 2 City of Tigard/ODOT Agreement No. 23927 6. If the City requests and ODOT agrees, or if ODOT deems it necessary to vary substantially from the standard level of service, a supplemental Agreement shall be entered into between the parties before services are performed. 7. ODOT's Project Manager responsible for this Agreement is ODOT Fuel Tax Audit Manager or designee, PUC Building 550 Capitol St NE, Basement, Salem, OR 97301-2530. 8. Beginning in 2008 and no later than March 15 each year thereafter, ODOT shall provide a written report for. the preceding calendar year to City showing the total revenue collected, refunds paid, the expenses incurred for administration and collection of the tax, and any other information ODOT deems pertinent to this Agreement. In the annual report, ODOT may also make recommendations concerning' amendments to the code, ordinance, procedures, and policies in administration of the tax, or other related matters. 9. ODOT and the City shall coordinate all necessary announcements to the public so as to facilitate effective administration of the tax and maintain consistency in public announcements and information. 10.ODOT will maintain all databases and records created or received by ODOT under this Contract for not less than the period of time which ODOT maintains records for its administration of ORS Chapter 319. ODOT will make all such information available to City in the same format as the format used by ODOT. Such information shall include, but not be limited to, information concerning the identity, business operations and tax payment history of all fuel dealers who are subject to Ordinance 06-21. Upon termination of this Agreement for any reason, ODOT will provide City with copies of all of the data described above, in electronic format, if possible, or in the form otherwise existing within ODOT's databases. GENERAL PROVISIONS 1. In order to ensure consistency in the administration of the tax, each Party shall notify the other in writing of any change in Ordinance 06-21, and in state or local regulations or rulings related to the tax at least thirty (30) days prior to the effective date of such change. 2. This Agreement may be terminated by either party upon 90 days' notice, in writing and delivered by certified mail or in person. -3. ODOT may terminate this Agreement on 30 days notice to the extent permitted by law, effective upon delivery of written notice to City or at such later date as may be established by ODOT, under any of the following conditions: a. If Federal or State laws, regulations or guidelines are modified or interpreted in such a way that either the work under this Agreement is 3 City of Tigard/ODOT Agreement No. 23927 prohibited or if ODOT is prohibited from paying for such work from the planned funding source. b. Any termination of this Agreement shall not prejudice any rights or obligations accrued to the Parties prior to termination. 5. The Parties agree. to comply with all federal, state, and local laws, regulations, executive orders and ordinances applicable to the work under this. Agreement, including, without limitation, the provisions of ORS 279B.220, 2796:225, 2798.230, 279B.235 and 279B.270 incorporated herein by reference and made a part hereof; Without limiting the generality of the foregoing, Agency expressly agrees to comply with (i) Title VI of Civil Rights Act of 1964; (ii) Title V and Section 504 of the Rehabilitation Act of 1973; (iii) the Americans with Disabilities Act of 1990 and ORS 659A.142;' (iv) all regulations and administrative rules established pursuant to the foregoing laws; and (v) all other applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. 6. The Parties shall perform the service under this Agreement as an independent contractor and shall be exclusively responsible for all costs and expenses related to its employment of individuals to perform the work under this Agreement including, but not limited to, retirement contributions, workers compensation, unemployment taxes, and state and federal income tax withholdings. 7. All employers, including the Parties, that employ subject workers who work under this Agreement in the State of Oregon shall comply with ORS 656.017 and provide the required Workers' Compensation coverage unless such employers are exempt under ORS 656.126. The Parties shall ensure that each of its subcontractors complies with these requirements. 8. Both parties shall, to the extent permitted by the Oregon Constitution and the Oregon Tort Claims Act, indemnify, defend, save, and hold harmless each other, their officers, employees, and agents from any and all claims, suits, and liabilities which may occur in their respective performance of this Project. 9. Notwithstanding the foregoing defense obligations under the paragraph above, neither party nor any attorney engaged by either party shall defend any claim in the name of the other party or any agency/department/division of such other party, nor purport to act as legal representative of the other party or any of its agencies/departments/divisions, without the prior written consent of the legal counsel of such other party. Each party may, at anytime at its election assume its own defense and settlement in the event that it determines that the other party is prohibited from defending it, or that other party is not adequately defending it's interests, or that an important governmental principle is at issue or that it is in the best interests of the party to do so. 4 City of Tigard/ODOT Agreement No. 23927 10. City acknowledges and agrees that ODOT, the Secretary of State's Office of the State of Oregon, the federal government, and their duly authorized representatives shall have access to the books, documents, papers, and records of City which are directly pertinent to the specific agreement for the purpose of making audit, examination, excerpts, and transcripts for a period of three years after final payment. Copies of applicable records shall be made available upon request. Payment for costs of copies is reimbursable by ODOT. 11. This Agreement may be executed in several counterparts [facsimile or otherwise] all of which when taken together shall constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart.- Each copy of this Agreement so executed shall constitute an original. 12. This Agreement and attached exhibits constitute the entire agreement between the parties on the subject matter hereof. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement. No waiver, consent, modification or change of terms of this Agreement shall bind either party unless in writing and signed by both parties and all necessary approvals have been obtained. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. The failure of State to enforce any provision of this Agreement shall not constitute a waiver by State of that or any other provision. IN WITNESS WHEREOF, the Parties hereto have set their hands as of the day and year hereinafter written. The Oregon Transportation Commission on June 18, 2003, approved Delegation Order No. 2, which authorizes the Director to approve and execute agreements for day-to-day operations. Day-to-day operations include those activities required to implement the biennial budget approved by the Legislature, including activities to execute a project in the Statewide Transportation Improvement Program. On September 15,.2006, the Director of the Oregon Department of Transportation approved Subdelegation Order No. 2, Paragraph 1, in which authority is delegated to the Deputy Director, Central Services to approve and sign agreements over $75,000 when the work is related to a project included in the Statewide Transportation Improvement Program or in other system plans approved by the Oregon Transportation Commission such as the Oregon Traffic Safety Performance Plan, or in a line item in the biennial budget approved by the Director. 5 City of Tigard/ODOT Agreement No. 23927 On August 2, 2005, the Deputy Director, Central Services approved Subdelegation Order No. 9, in which the Deputy Director, Central Services delegates the authority to the Support Services Branch Manager to approve and execute agreements over $75,000 when the work is related to a project included in the Statewide Transportation Investment Program or in other system plans approved by the Oregon Transportation Commission or in a line item in the legislatively adopted biennial budget. City of Tigard, by and through its City STATE OF OREGON, by and through Manager its Department of Transportation By By Title 1~6 Date Date ff APPROVAL RECOMMENDED- By By Title Date Date By APPROVED AS TO LEGAL Date SUFFICIENCY X By g v Counsel Date Date 2-7' O7 APPROVED AS TO LEGAL SUFFICIENCY Agency Contact: By Assistant Attorney General Date: 6 EXHIBIT A CITY OF TIGA.RD, OREGON r)RIXNANC_°I' NO. de_a I AN Old)DIANCE CRFAUNG.+NID IMPOSING A TAX ON MOTOR VEHICLE FUEL DEALERS: PROVIDING FOR 1:O`FOIt_C ENIENIT, ADNAINISTRATIGV AND COLLECT C`ION OF THE. TAB.; AN[) AMFNDINO ITIE. TICIARD MUNICIPAL CODE 13Y ADDING A NMW CHAPTER 3.65. V1'1-IEttl: S, Tigard is an Oreeoa home-ndie municipal corpeiration having the authority and power under the terms of its Charter to excrcisc all the powers and audwrity that the constitution, statutes and common law of the Urtitcd States and this State csp mssly or itttplicdly ,rani or allow as tbouSh each such 1 we-rs were spsecificaliy enutnerated. therein; WHEREAS, said authority and po%:~er includes &Fc authority to itupose a tax oil the sale ofnmolor vchicle Eric] sold withui IN, City: W IEMEAS, the Cite Council .vlihes to exercise dirt pc>tti~r and to, limit the we of any revenues eeaerated by said tax to purposes associated with the a"nistration, construction, at-construction, improvement, repair, maintenancc, Operation and use of public highways, roads :ren(i st>rtswithin the city; h0t,1V.'l'HKRF-1^OKE, `l'HE CITY OF 1 IGAIU)ORDAINS AS FOLLOWS: SECTION 1: `ligatrd.municipal Code i:5 rnended by tnlding a new Chapter 165 .Motor Vehicle Fixi Tar, tp ruin] as iollows_ Chapter 3.65 MOT'OIt VEHICLE F UE L TAX 3.65.010 Short Title 3.65.015 Purpa.,w 3.65.020 befinitions 3.65.030 Tax Imposed 365.040 Amount and Payment 3165.050 Permit RequirtmenLS 3.65.060 PermitApplicatious and Issuance 3.65.070 Failure to Secure Permit 3.65.050 Revocation of Permit 365.090 Cancellation of Perttmit 3.65.100 Remedies Cumulative 3.65.11.0 Payment of tax and Or-linyueavy 3.65.120 Monthly Statement of Dvaler Ordinance No. 06- 1 Page I EXHIBIT A 3.65,130 Failure to File Monthly Statements 3,65.140 Billing Purchasers 3.65150 Failure, to Providt Invoice or Delis ery Tag 3.65.160 Transporting Motor Vehicle Fuel in Butt 3.65.170 !Exemption of Export Fuel 3.65.190 Fuel in Vehicle Corning into City Not Taxed 3.65200 Feel sold or Delh Bred to Dealers 3.65,210 Refunds 3165.220 Raamiuution and Investigations 3.65.230 Limitation on Credit for Refund or Overpayment and on Assessment of Additional Tax 3A5.240 &amining Books and accounts of Carrier of Motor Vehicle Fuel 3.65250 Records to be Kart by Dealers 3.65260 Record.- to be Kept. Three Won 3.C►5,270 Use of Tax Revenues 3:165.010 Short'fitie The provisions of this der shall be known atul may be 4.ted is the "City of Tigard .L Iotor Vehicle Fuel Tax. Ordinance", 3.0,015 Purpose `t'ree pwivse of the motor vehicle fuel tax is to raisc revenue a=tsmy for tho construction, recorrsuuction, impro%Tmert, remit-, ,rtaintet nee, Operation and we of the public sarro cysteirt iii the city. 3.651RO I)ehnitiooh. As osed in this ordinance, untess the context requires nth: rorise; I . "taty" meiui:-, City of Tigard, a municipal corporation of the State ofOregon_ 2: 'Dower" ttteans ashy Pelson who- a. Itrifk)m or causes to be imported ittotor whicle feel for sale, use or dim bution itt_ and after the same reaches the city, but'Dcaler" does not include any pemn who imports into the city motor ve=hicle fuel in quantities cif 5th gahow or less p=hased frorn.a supplicr who is licensed as a dealer hereunder aad who assuttwes Us.I.Ality for the paymcut of the applic-pble motor vehicle furl tau to the: city, or b. Fruduces, refines, mianufacum or cortwundls motor vehicle fuels in the city fear u^,e, distribution or sate in the city; or Ordin:m c No. 06- P"_O ? 8 EXHIBIT A C. Acquires in the city for sale, u~-t or distribution in the city motor vehicle fuel with respcct to which there hgs been no motor vehicle fuel tax pteviotisly incurrod. 3. "Nstrt'hutJon" mks. in r dditiott to its ordinary meaning, the deli4;acy° of motor Vehicle fuel by a dealer to arty semice station or into any tank:, Morap facility or series of tank's or storage facilities connected by pipelines, from which motor vehicle fuel is withdrawn directly for sale or for delivery into the filet tanks of motor whides whether or not the service Station, tank or storage facility is o imed, operated or controlled by the dealer. 4t "Highway" means every %uy, thoroughfurc and place of t tatcver nature, open for live of the public for the purpose of whicular travel. 5, "Motor Vchicle" mcaus all vehicles, engines or machines, momable or inunovable, opentted or prolvlled by the use of motor vehmic fuel 6. "Motor Vehicle fuel" means and includes diesel and gasoline and any other flaumniable or corn4ustib.lc gas or liquid, by whatever name such as diesel and gasoline, gas or liquid is two-an. or sold, usable as fr,►cl for the op+cration of motor v°chieics, except gas or ligt►id. the. chief use of which, as detertr►ined by the tax administrator, is for pu oses other than the propulsion of motor vehicles upon the highways. "r, " l'<rsun" includes every nattaA person, asscxiation, firm, Irallnetship, c oqr oration Montt wthrow or nthr,-r businm entity, "Serrit e Statit)n" means and includes any place operat~~l for the l?4trFc . of w inilittp and delivering) motor vehicle fuel into tk- fuel tanks of motor v :biclts . 9. "Tax Administrator" meanus the city marrtger, the cite tnattagees designee, or any person or entity wish whom the city manager o ntructs to perfortn tfinsc ritrti.es. 3.65.030 Tax lsnposed. A Tnoto3r vrbicIc fuel lax is l t cby impmed on ever ck-alcr, The tax imposcd shall. be paid rrrontltl}' to the tax administrator, The tax uiimnisirat(tr i ; autltoriyxd to exercise all supervisory and administrative poca°ers with regard, to the wife ntMent. c ollec-tiun attd adntin om ion of the motor vehicle fuel tax, includinge all powers specified in ORS 319.01 tt'to 319.430. The motor vctucl.c f wl tax shall remaut in effect through December 31, 2011, but shall not remain in efftet after that date unless rcn*Nw-d by ordi.rntttcc of the City Council. Rcriewal of tW tact shall be set. for cooneil wwsidem ion in the First half of tale ndw yt-ar?tl Ordinance No. 06- P j age , 9 EXHIBIT A 3.65.040 Amount stud PAymeot, to addition to any fm or taxes otlowise provided for br law, every dealer cngafcing in his own tom. or in the name of others, or in the name, of his repr iatative or agenis in the-tity, in the sale, use or distribution of motor vehicle fad, shall: a. Not later than. the 25th, day of =h calendar mowh, render a statement to the tax admirmastrator or duly authorized agent of all tnotor vehicle fuel sold, used or disributed by himfhes in the a ty as well as al s h fuel. sold, used or distt Cited in die city by a ptm:hase'r ttreseof upon Nxii cat We, useot distribution the dealer has monied liability for the VyA i0ble motor vehicle fuel tax during the preceding calerlar month. b, Pay a.ttttotar vehicle Biel tank computed on th;: basis of 3 cents per gallon of sack rmat«r vehicle fuel so sold, tamed or distributed as shomv by sorb buteractit in the mantes and within the time provided in this ordinance. In the e%wit that the State of Oregon or Washiagon. County inc -se, their taxes on motor vthiclc fuel, the City. wh eh receives a sham of those taxxm shall reduce the rate established by this srceticm so that. tlac City's total revenue Barra fuel taxes rimains what it would have been without the State or t; atuity rtcrc-asro'. 2. la lieu of claiming refagmd of the tax as provided am Section 3.65110, or of any prior t=s encoams paymcm of motor xThicte fuel tax masts to the city by thae dealer, the dealer may Aow such motor vehicle `futi as ati'Mdit or dcductiop tsar the monthly staictnem and pay mcut of tax, 3: The motor vehicle fuel tax shalt not bs3 is [x)se-1 x4ir sever it is prohibited by the C onstittrtion of laws of the United States or of the State: of Orgoa. 3,65,050 Permit Rv4uic^ewguts. No dealer small sell, use or distribute arty motor veltirle fuel until Wshe lifts stcttwd a dealer's pennit as required herein 3.65.060 Permit Apptlcatims slob Imuaate. 1. every person, before becoming a dealer in motor vehicle fuel in this city, Shall make an application to the tats administrator for a permit authorizing such person to engage is bus-iums as a "Cr, 2. Applications for the permit must be made ott farms presen' ed, prepared and furnished by time tax adminisu-&or. I The applicatiow shall be azcontra ticd by a duly acknowledged certificate containing: Ordiramce No. 0 Fagc 4 10 EXHIBIT A a. The business narrate under which the dealer is transacting hus-iness. b. The addrem of the applicant's principal place of business and location of distributing .stations in the city, C. The mine and address ofthe managing anent, the namt-s anti addresses of ute several, persons constituting, the brut or partnetship arid, if a corporation, the corporate name under which it is autlxirized to transact business mid the tna, Mes and addresses of its principal officers and. regis erect agent. d, If an application for a nut}tor vehicle fitel dcalefs permit is con pletc and has bm accepted for filino% the tax administrator shall is: tte. to the dealer a permit it, such form as the tax administrator may prescribe to transact business in the city. The permit so issued is not assigttabtc, and is val d only for fhc dcalcr in whose name it is issued. S. The tax a dministrator shall keep and file all tapplic iiions •-%ith an alphab ical index thereof, together with a record of all l rmitted di:aieis. 3.65.070 Failure to Secure Permit. I. If any dealer sells. distrtltutes or fist's any motor vehicle fit;.l without first filing. the certificate and securing the permit required by Section 3.65.060, he motor vehicle fuel tux shall intermediately be due and payable on account of all nnotor vehic,te fuel so sold, distributed or twee. 2, '11 tax acdmini.Straurr shall ;proceed ,fi;rth:«th to tietcmunc, frown as many available sources as the tax adminiArator detainines reasonable, the anioural of taa.x cleat, tutd shall assess die tax. hi the amount found due, together Nvith a I;ewltv of 100% of the tax, and shall maake a eeni6catg of such assessnicra and- penalty. lea any suit or ptoo ding to collect such. tax or penalty or bath, the ccrtific,sate shall be prima f tcic eviJcnce that the dealer theivin named is indebted it) the city in the amoutii of the tax and penalty stated. 3. Any tax or penalty so assessed ni aye be colleewd in the inanner prescribed in motion. 3.65,110 with rc-fmnco to dclituqucncy in payment of tk. tax or by action at la%N% 4. in the event any stmt or action is institutcxt to enforce- this section, it the city is floc: prevailing parity, the city shall be entitled to recover from lite person sued reasa tlable. attrtrriey~'s fees at trial. or upon appc4l elf such suit OT .901401), in addltiotn to Imber surfs provided by lay.-. 165.080 Revocation of Permit. -fhe faux administrator mwy revoke die permi! of ativ dcralcr cvho rails to Comply with any provisiou of sections 3.65.020 to 3 65.2?9. The tax admimstrator shall maiil by ecrtiliGd mail addressed to such dealer at.his last knoufn address at searing on thet=ilea of the tax admin..1mtor, Ordinance No. 06- pate 5 11 EXHIBIT A a.nratice of intention to cancel.'Me notice shall give, the tvason for the cancellation. The ca Wt lation shah become effective without lit€thor botioe if Mtbia 10 days from the mailing of the notice the dealer has not trade good its default or dclinquewy. 3.63.0" Cancellation of Permit 1. Thxe tax administrator may, upon n rittca request of a dealer ctxaM a permit issued to the dealer. Tho tax administrator shall, upon approv-%, tthe deale 's request for cancellation, suet a date not later than 30 days after receipt of the wtittim request. AM Mich the permit shall no longer be cffective_ 2. The tax administrator may, after 30 days' naticc has been mallcd to the last known address of the dealer, cancel the permit oftlte d <ler upon Ftditxg that the dealer is no longer eneeaged in the busincm of a dealer. 3.85.100 ltetttedies CQtnnlatiVe. Except as otherwisc pmvidrd in Sections 3.65.110 and 3.65530. the remedies provided iii Sections 3.65.070, 3.65.080 and 3-65.090 am euniulative: No action taken pursuant to those sections shall relieve any person from the penalty }provisions of this coda. 3.6 +.110 Payment of Tax and Delinquency. t Chc:ztvtor vclttGlc fuel tax rctyxs cd by sections 3.61.030 and 3.65.040 shall be paid to the tax xiinittistrutor on or befom the 25th day of each mmnth. Except as provided in subsections (3) and (4) of this wtion, if payment of the motor vela ele fuel tax is not paid as required by sub tioa (1) of this section. a Oenalty of one percent of such motor vchicle.f tel uex shall I=. scysect and be immediately due and payable. 3. 1,xeept as provided in subscc Lion (4) of arts section, if payment of the tax and pwalty*, if any, is not made on or befog the l 4 day of the next month. followitig that month in ohich payment is due, a Bather perudty- of 10 percent of the tax shall be asseesied. Saud penalty shall be in addition. to the penalty provided for in subsectiou (2) of this section, curd. shall be immediately due anti payable_ 4. Penalties imposed by this section AAA not ly if a ptvtalty has teen assessed. and paid putsuant to scc:tion 3,65.0?0. The tax admir» sttntor may for good cause sho m waive any penaltics asset-s-cd under this sec;:tion- S. If any penou fails to pay, the motor vehicle fuel tat or any penalty provided for by this section, the tax and/or penalty shall be collected from that pe sen for tho use of the city. Tito Ordinance No. 06- ,;Z t page 6 12 EXHIBIT A tax administrator shall conunenez and prosecute to fi" determinadc n in any court of critnpetent. jurisdiction cut action to collect the same. 6. In the -tvvtit any sitil or action is ituathilod to collect the motor vehicle fuel tar or sty pcn4lty provided for by this.q tion, if the city is the prevail Ag party, the city dull be entitled to recovery from the person sited rea.st)"able attaritey's 1c tit trial or uplift appeal of such. suit or action, in addition to tither surtis provided by law. T No dealer who collects from any person die tax. provided for herein shall knowingly and wrillfatlly fail to replar# and, pay the satne to the City as required herein. 3.65.120 Monthly Statement of Dealer. Every dealer in motor vehicle fuel shall provide to the talc administrator on or before the 251ft clay of c-ach month, on forms prescribod, prepared and furnished by the tart administrator, a staterncnt iyf the rt►unber iif fal[ons cif motor vehicle filet old, clistxilatttcd of usr ei by him during the preceding calendar month. Tlie at. teintrit shall be signed by die dealer or the dealer's agent- All statt'.rrient.s filed with the City, is required in this ;section,: are: public records. '4.65.130 Failure to File Monthly Staterncnts- lf a dealer fails to file any stawittent required by Section 3.65.12& the tax administrator shall pwc d forth-Mth to determine from as many availablc sources as the tax administrator dctemtinas to lri: =enable the amount of mokv vehicle fuel sold, distributed or used by such, dealer for the period utimpinte d, arid such determination shall. in any procccding be prima facia evidene:, of the saaouin of shelf fuel sold, disinb€ited, fir used- The tax adminin. rator- shall. immediately assess the dealer for the inotctr vehicle fuel tail upon the amount deter-mined, adding thei to a pcnalq of ten percent of the tax. The penalty shall be outnulative to outer penalties provided in this code. 3.65.140 Billing Purchasers. Dcalcrs in motor vehicle 1'ttcls shall render bills to all purchasers trf MGtUr vehicle fitel_ The hills 4ha ll sep:i -cet iv state and dey"e ft diffcrod products scald or diippad thereunder and shall be serialiv numbered eveept where adier sales invoice controls acocpttiblc to the tax adminisirator are maintained. 1.65.150 Failure to Prov=ide Invoke or DeWery Tar, No person Shrill rUeive and accept inots-ir vehicle fuel from arty dealer, or pay for the sane. or sell or c' ikr the rnotor vehicle fuel for Sale, unless the motor velticlc fuel is i7t oonipank d by an invoice or delivery tag showing the date ufwn which tnotor, vehicle fuel AI;; delivered, purciiased or sold, and the na,ne of the dealer in nttttor vehicle fuel. Ordinance No. 06- 1 l*aile 7 13 EXHIBIT A 16, 5.160 Transporting Motor Vehicle Fuel in Bulk: L'•~ ~ ~ m ion operating any c p weyance for the purpose of hauling, oansponing or delivering motor vehicle fuel in bulk slant; befona entering upon the public highways of the city with such con-myance. have and possess during the entire time of the hauling or trattspxnting of such rnntOT vehicle fitcl, an invoice, bill of sale or other written statement showing the number of gatlon> the Out- name and address of the seller or consignor, and the true name and address of the buyer or consignee, if any, of tb Mile- The person battling such motor vehicle fuel shalt at the request of am- officer authorized by law to inquire into or investigate such matters., prrottuce and offer for irmpeckion the invoice, bill of sale or tither stamemeent. 3-65-190 Exemption of Expert Furl. I . The motor vehicle fuel tax ieuposed by sections 3.65.030 and 3.65.040 shall not be imDoscd on motor vehicle fud: a. LA"ed fmm the city by a dealer; or b. Sold by a dealer in individual quantities of 500 p1tone or less for export by the purchmer to an area or areas outside the city in contdineaa other than the fuel tattle of a motor vehicle, but every dealer ;shad be required to report such t xpotts and sales to the city in such tf.Uil as may be required, In support of any exemption front motor vehicle fuel taxCS elaimcd under this section other titan in the, case of stock transfers or deliveries in his own equipment, every dealer most execute and file ..with thr tai administrator an vapors certificate in such form as shall be presc7ibcd, prepared and furnished by the tae administrator, containing a statement, matte by sumo person having actual knowledge of the fact of soils exportation, that flit: motor vehicle fuel has been exported from the city, and giving such +delAs with reference to such shipment as the tax .administrator may rcquirc. 11w tax administrator may demand of any dealer such additional sputa as is dtemod tees uy its support of any such cergficatc, and failure to supply such data will constitute, a waiver of all right to exwnption claimed by virtue of such cerlif ote. The tits, administrator may, in a case where tax administrator believes no useful pruq*vc Kvuld be ssrvrd by filing of an export catifi=e, waive the filing of the certificate- 3. :fin} motor --r cle NO crmied from the city in the fuel tank: of a motor vehicle shall alit be considered as exported f om the city. Ordinance No. 06- Page 8 14 EXHIBIT A 4. No person shall, through fame statement, trick or device, or otherwise, obtnin motor vehicle f el tot export as to which the. city lax, b.ts not been paid and :Wl to part the tvttc, or any portion thereof, or cause the rflotor vehicle fuel or any p-'rtio 4hereo n..0 tc't he exoortetl, or divert or cause to be diverted the motor vehicle fuel or any portian thereof to be used. distributed or sold in the city and frail to noti4t the tax adrninistintor and tite dealer from whoun tho motor tchiclc fbcl was originally purchased of biAer aet i. No dealer or other }?ersrtn shall compir+e vvi h any I emn to withhold from exert, or divert from export or to return motor vehicle fuel to the cite fc)r sale; or use so as to avoid any of the kes icrulxrsed herein. 6, In support of any momption from taxes on account of sales of motor vehicle fuel in individual quantities of 5f1t3 gallcvris or lass for export by the purchaser, the dealer shall main in hisr'ier tiles for at least three years an export certificate executed by the purchaser in Such form. and containing ssuch informer as is ptescribead by the tax administrator. 'Ibis certificate shall be prima facie evidence of the exportation of the inotor vehicle fuel to which it applies duly if €u"cptcd by dv4 dealer in gtwA faith. 3:65.175 Sales to Armed Forces :Lxemtf ted. Tbc licem tau imposed by sccti tms 165.030 and 165.041) skill not be imposed on any motor vehicle f ucl sold to the Armed Forces of the IJrvitetl Stair s for use in ships, aircral'I or for export from the city, but e'very dealer shall be reywred to report such sales to the tax administrator in such detail as :may be required. A certificate by art authorimd- officer of such Armed forces stuill be accepted by the dealer as su#ftcient.proof that the sale is for the pw pose specified in tic certificate. 3 ,65.191) Fuel in Vehicle Coming into City Not Taxed. Any person cocain. into the city in a motor vehicle may trati_spoft in. the fuel lank of 'welt vehicle, motor vchicle fncl for hiAcr o%m use only and for the purpose of opemling such motor vehicle without socuri.nu a permit or paying the iax. provided in Scc6ons 3,65-0130 and -31,65040. or "Implying %Aith any of tie provisions imposed upon dealers herein, but ifthr motes vcbiclc fuel so brought into the city ix removeA from the fuel tank of the vehicle or used for any purpose other than the propulsion of the vcbiclc; the person so importing fuel into the city shall be subject to all the provisions herein applying to deal m- 3.6520(1 Fool Sold or Dellver€d to 13culettt. 1. A dealer selling or delivering motor whicle. Pttel to dealers is not required to past a motor vehicfc fuel, tax themm: Ordinnnce No. Off- ; page, 9 15 EXHIBIT A 2. '11w dealer in ordering monthly statetiie= to the city as required byy Sections 3.64,040 and 3.65-120 shalt show separately the number of gallons of motor vehicle fuel s--U or delivered to dealers. 3.65110 Refunds. Refunds will be made pursuant to OILS 310.280 to 31.9 320. Claim fanns for reftmcls may be obtained fixetn the tar administrator's office. 3.65120 Examination and u mfigations_ The tax administrator, cc duty authorized agents; may taaal a any exarnim on of awounts, records, stocks, facilities and otit.+ipment of dealc m, s`rviee stations and other persons er tamed in storing, selling or disiributing moor vehicle fud cu other petroleum product or products within this city, and such other investigations as it considers necessary in carrying out the provisions of smhons 165.020 thwugh.3.65.279. If the examinations or investigaticns dii elosr that any reports of < valets or vther persons dreratoforc filed with the tax administrator pursuant to the requirements herein, have shorties mconutl.y the amount of gallonage or motor vehicle fuel distributod or the tax aceming themon. the wx ;s€ha:wi_stmor may moke wade changes in subsequent reports and payments of such dealers or other persons, or may m4v such rchinds, as ritzy be necessary to eornvt the errors discloses by its examination or investigations. The dcalcr shall reimburse the city for reasonable costs of the examination or investil atiou if the faction disclo-vd that ft dealer poid 93 percent or less of the tax oxvittg for the period of the examination or investigation. In the event that such examination or investigation results in an assessment by and an additional pay°meot due to the city, such additional payment shall be subject to interest at the rank of 18 percent per year firOtn the die the original tax payment wws due. =<6 230 Limitation on Credit for or Refund of Overpayment and on Avwwoaneut of Additional flax. 1. l;xcept as othcmise provided in this ordinance, any era-lit forertopeous ocreg*ytttcrtt o f tax made by a dealer taken on a submiucttt return or any claim for refund of tax erroneously overpaid riled by to dealer must be so taken or filed within three years after the date on which ilia overpayment was made to the city. 2_ Except in the case of a fraudulent report or neglect to matte a report: every notice of odditimal tax proper to be asmed wWor this codo sW b;- served on deaters within three: years fi oni the date upon Which such Widow l taxis become duc, and shall Nu subject to petwil, as provided in sat ion 3.65.110. 165140 Exainlaing floo ks and Accounts of Carrier of Motor Vehicle Fuel. Ordiame No. 06- Pagc 16 16 EXHIBIT A i rate iidniitiaaytratator duty autho iced agentq may at any time during nf)rm.al biwincse hours examine t1iE* books and accounts of any carrier of motor vehicle fusel operating) %ithin the City for the pwpose ofcnforcing the provisions of this ordinance. 3.65.250 Records to be Kept by Dealers, Every dealer u, motor-vehicle fuel shall keep a record in such form as msy be prescrilvd by the tax administrator of all purchases, receipts, sales and distribution cif motor vehicle fuel. The mcvrds shall include copies of all invoices or trills of all such sales and shall at tall times during the NLiir►ess hour; of the day be stiti ect to inspection by the tax administrator or authori2ed officers or agents of the taK utitttinistratcir, 3.65.260 Records to be Kept `T'hree Years. Every dealer shrill maintain anti keep, for a period of three years, all records of motor vehicle fuel u-ed. sold and distributed within the city by sutsh defiler,1ogethcr, with stock recon.1:i, inx~oiccs, bills of 1, ding anal other pertinent papers as may be required by, the tux admin. istrateir, in the event such wcords. are not kept within the state of Oregon, the dealer shall reimburse the tax adolitnistritur tot air travel, loxlend related cxpcnscs incurred by the tax administrator in mxatri niti sttch records. The amount of such exrg nses-sbaII be in addttional tax tnlposed by section 3.65.030. o 3.65.270 Use of Tax Revenues. I. For the purposes c,:ftlt s scction., suet rcvcnuc shall incan the revenue front the tax iutlxiyed by sections, x:65.020 throtiih 3.65.279 ro=irling after providing for the cost of administration and. imy refunds and credits authorized herein. The .tict rcvcnue shall be used only for the construction. reconstruction. itnptovemctut, repair, tmaintewAnce, opt ratioti airs) tusse of public highways, roads and streets within the city. The act revenue st*.all be used exclusively kir impruvcrnc L to the Greenburg; RoadilfCugh%my 99 intersection. 'Die City shall cease collecting die tax oucc the tnlprovc;nictrts :ire fulty furuutcd, S1 t:," i` ON 2, The tux imposed pursuant to section 3.65-03)0 shall tak--c cffcct only after duce tax administrator has davx loped the necessary forms and diwurrients to adminis-ter the tax. 'tltr tax. adrniitismitor shalt declare i4hen the tali shall take effect, raid give not less than 15 days notirc of the date before the tar: may take effect. The tae administrator's decision as to tttc co tea c date of the tax and the type ul' notice to g mvided shall be final and not siih ect to rcvic w,. Ordinance No. 06- ~ f Page.1i 17 EXHIBIT A SECMOI ' 3; if any f?txfwa of ibis Chapter is fcc any region held invalid or thiconstutional by a co wt of ompctmat. judsdietion, such portion shall be denied a separate, distinct and independesit provision anti such holding shall not affcrt the, malidity of the rents ning portions of this ordinance. SECTION 3: This ordinance shalt be cf1buive 30 days affix its passage hy° cite Council, signalum by the kfayo,-, and IN,-:brig by the 0h, Recorder. Ft1SSi?ll: By. etn(4i 1 t'i'nQ1LV % vote of all Coutwil members prat after being read by number and. Side only, this ( * duq' o f -D m--P j14,,~~, '_gtlb_ Catherine Beasley, City kword APPRf VEJ). By T. ~g;u i. f Co rl this t L clay o 2006. Craig . Di&wn, bMayor Approved as to foie: h i ty Attormy la- Date Ordinance No. 06- t Pap t2 18 Agenda Item # Meeting Date Febniary 27, 2007 COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Intergovernmental Agreement with Oregon Department of Transportation for Local Fuel Tax Collection OQ U° Prepared B. A.P. Duenas Dept Head Okay City Mgr Okay rJ ISSUE BEFORE THE COUNCIL Should Council approve the Intergovernmental Agreement (IGA) with Oregon Department of Transportation (ODOT) for local fuel tax collection and authorize the City Manager to execute the final documents when they are ready for signature? STAFF RECOMMENDATION That Council, by motion, approves the IGA with ODOT substantially in the form attached and authorizes the City Manager to execute the documents when finalized. KEY FACTS AND INFORMATION SUMMARY The City of Tigard Ordinance No. 06-21 established a 3-cent per gallon motor vehicle fuel license tax and named the City Manager as the Tax Administrator. The revenue from the local fuel tax will be dedicated solely to improvements at the Greenburg Road/Highway 99W/Main Street intersection. The City wishes to enter into an agreement with ODOT to collect the fuel tax for the City, as it does with various other cities in Oregon. The attached IGA is in draft form and is currently being reviewed by the City and ODOT. However, the final document is expected to be similar in form and content to the draft IGA. Once the agreement is final form, it will be sent to the City for signatures. To ensure that the tax collections begin as soon as possible, Council is requested to approve the IGA with ODOT and authorize the City Manager to sign the agreement when it is ready for signature. OTHER ALTERNATIVES CONSIDERED None COUNCIL GOALS AND TIGARD BEYOND TOMORROW VISION STATEMENT Traffic circulation improvements at the Greenburg Road/Hghway99W/Main Street intersection address the Council Goal to "Improve 99W Corridor." These improvements also support the Tigard Beyond Tomorrow Transportation and Traffic goals of "Improve Traffic Flow" and "Improve Traffic Safety." The establishment of the local gas tax would meet the Tigard Beyond Tomorrow Transportation and Traffic goal of "Identify and Develop Funding Resources." ATTACHMENT LIST Draft IGA with ODOT for Local Fuel Tax Collections with Ordinance No. 06-21 attached as Exhibit A to the IGA. FISCAL NOTES A 3-cent local fuel tax is expected to produce revenue of approximately $900,000 to $1,000,000 annually. The improvements to the Greenburg Road/Highway 99W/Main Street intersection are estimated at $3.5 to $4.0 million. Anticipated revenues of $4.5 to $5.0 million over a 5-year period would be sufficient to fund the project. Depending upon the timing of the various phases of the project, the funding could be made available as needed through revenue bonds with repayment of that debt from the fuel tax revenues each year. The IGA with ODOT will allow that agency to collect the local fuel tax for the City. ODOT will be compensated for setup costs and for administrative costs involved in collecting the tax. The setup costs are expected to be no more than $7,500 and the administrative costs will be determined and mutually agreed upon based on the effort required for collection and administration of the tax. Oeng\gus\council agenda summaries\02-27-07 iga with odot for local fuel tax collection.doc DRAFT Misc. Contracts and Agreements Agreement No. 23927 INTERGOVERNMENTAL AGREEMENT Motor Vehicle Fuel Dealer Tax Collection THIS AGREEMENT is made and entered into by and between THE STATE OF OREGON, acting by and through its Department of Transportation, hereinafter referred to as "ODOT"; and the City of Tigard, hereinafter referred to as "City", collectively referred to as "Parties". RECITALS 1. By the authority granted in ORS 190.110 and 283.110, state agencies may enter into agreements with units of local government or other state agencies for the performance of any or all functions and activities that a party to the agreement, its officers, or agents have the authority to perform. 2. By the authority granted in ORS 802.010, ODOT shall perform all of the duties, functions, and powers with respect to the administration of the laws relating to the motor vehicle fuel license tax, aircraft fuel license tax and use fuel license tax including ORS Chapter 319. 3. By the authority granted in ORS 802.110, the monies received under this Agreement shall be deposited in the Department of Transportation Driver and Motor Vehicle Suspense Account with the State Treasurer. 4. For purposes of this Agreement, duties of the tax administrator shall be defined as administration, including licensing of dealers, collection and enforcement of motor vehicle fuel tax. NOW THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the parties hereto as follows: TERMS OF AGREEMENT 1. The City of Tigard Code, Ordinance No. 06-21 attached as Exhibit A, and by this reference made a part hereof, (hereinafter referred to as "Ordinance 06-21"), authorizes the collection and use of a $.03 per gallon motor vehicle fuel license tax (hereinafter referred to as "tax") on motor vehicle fuel dealers that sell, use or distribute fuel in the City. City desires that ODOT act as the tax administrator for the tax, with the exception of declaring the effective date of the tax. 2. The term of this Agreement shall begin on the date all required signatures are obtained and shall terminate on December 31, 2011, unless extended by an amendment to this Agreement. City of Tigard/ODOT Agreement No. 23927 CITY OBLIGATIONS 1. The costs incurred by ODOT as tax administrator, plus any refunds authorized by this Agreement shall be paid from the Department of Transportation Driver and Motor Vehicle Suspense Account with the State Treasurer. 2. City's Project Manager responsible for coordinating the administrative requirements of this Agreement is the City Manager or designee. ODOT OBLIGATIONS 1. Upon the effective date of Ordinance 06-21, the ongoing fee charged to the City for activities performed by ODOT required or necessary for the implementation of City Ordinance 06-21 shall be at a rate of $55.00 per hour not to exceed 50 hours (hereinafter referred to as "start up costs). The $55.00 per hour, 50 hour cap applies only to start up costs incurred by ODOT staff. Start up costs include but are not limited to programming charges, service and supplies, travel, Attorney General costs, and ODOT staff time and are in addition to the ongoing fee for administering the ordinance. In no event will total start up costs be less than $2,200 nor shall they exceed $7,500. 2. Costs incurred by ODOT for administration of this Agreement shall be paid from the Department of Transportation Driver and Motor Vehicle Suspense Account with the State Treasurer. Administration includes, but is not limited to, processing reports and payments; entering data into system; resolving errors and discrepancies; managing records; responding to licensee inquiries, and auditing. 3. ODOT will deduct refunds, costs of administration and collection for the month, and the balance will be transferred to the City's Local Government Investment Pool Account with the state treasurer no later than the 15th day of the month following the month of collection. 4. ODOT shall be responsible for all aspects of tax administration as it pertains to Ordinance 06-21 and as further defined in this Agreement. ODOT will not act as tax administrator for purposes of declaring the effective date of the tax, or commencing and prosecuting lawsuits to final determination in any court. ODOT will provide administrative support in the event of a lawsuit. 5. ODOT may, at its sole discretion, determine what action shall be taken to enforce Ordinance 06-21 for purposes of tax administration. In exercising its discretion, ODOT shall provide a level of service comparable to the level of service it provides in the administration of the Oregon motor vehicle fuel tax statutes. Audits will be limited to motor vehicle fuel dealers that are also licensed under ORS Chapter 319. 2 City of Tigard/ODOT Agreement No. 23927 6. If the City requests and ODOT agrees, or if ODOT deems it necessary to vary substantially from the standard level of service, a supplemental Agreement shall be entered into between the parties before services are performed. 7. ODOT's Project Manager responsible for this Agreement is ODOT Fuel Tax Audit Manager or designee, PUC Building 550 Capitol St NE, Basement, Salem, OR 97301-2530. 8. Beginning in 2008 and no later than March 15 each year thereafter, ODOT shall provide a written report for the preceding calendar year to City showing the total revenue collected, refunds paid, the expenses incurred for administration and .collection of the tax, and any other information ODOT deems pertinent to this Agreement. In the annual report, ODOT may also make recommendations concerning amendments to the code, ordinance, procedures, and policies in administration of the tax, or other related matters. 9. ODOT and the City shall coordinate all necessary announcements to the public so as to facilitate effective administration of the tax and maintain consistency in public announcements and information. 10. ODOT will maintain all databases and records created or received by ODOT under this Contract for not less than the period of time which ODOT maintains records for its administration of ORS Chapter 319. ODOT will make all such information available to City in the same format as the format used by ODOT. Such information shall include, but not be limited to, information concerning the identity, business operations and tax payment history of all fuel dealers who are subject to Ordinance 06-21. Upon termination of this Agreement for any reason, ODOT will provide City with copies of all of the data described above, in electronic format, if possible, or in the form otherwise existing within ODOT's databases. GENERAL PROVISIONS 1. In order to ensure consistency in the administration of the tax, each Party shall notify the other in writing of any change in Ordinance 06-21, and in state or local regulations or rulings related to the tax at least thirty (30) days prior to the effective date of such change. 2. This Agreement may be terminated by either party upon 90 days' notice, in writing and delivered by certified mail or in person. 3. ODOT may terminate this Agreement on 30 days notice to the extent permitted by law, effective upon delivery of written notice to City or at such later date as may be established by ODOT, under any of the following conditions: a. If Federal or State laws, regulations or guidelines are modified or interpreted in such a way that either the work under this Agreement is 3 City of Tigard/ODOT Agreement No. 23927 prohibited or if ODOT is prohibited from paying for such work from the planned funding source. b. Any termination of this Agreement shall not prejudice any rights or obligations accrued to the Parties prior to termination. 5. The Parties agree to comply with all federal, state, and local laws, regulations, executive orders and ordinances applicable to the work under this Agreement, including, without limitation, the provisions of ORS 279B.220, 279B.225, 279B.230, 279B.235 and 279B.270 incorporated herein by reference and made a part hereof; Without limiting the generality of the foregoing, Agency expressly agrees to comply with (i) Title VI of Civil Rights Act of 1964; (ii) Title V and Section 504 of the Rehabilitation Act of 1973; (iii) the Americans with Disabilities Act of 1990 and ORS 659A.142; (iv) all regulations and administrative rules established pursuant to the foregoing laws; and (v) all other applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. 6. The Parties shall perform the service under this Agreement as an independent contractor and shall be exclusively responsible for all costs and expenses related to its employment of individuals to perform the work under this Agreement including, but not limited to, retirement contributions, workers compensation, unemployment taxes, and state and federal income tax withholdings. 7. All employers, including the Parties, that employ subject workers who work under this Agreement in the State of Oregon shall comply with ORS 656.017 and provide the required Workers' Compensation coverage unless such employers are exempt under ORS 656.126. The Parties shall ensure that each of its subcontractors complies with these requirements. 8. Both parties shall, to the extent permitted by the Oregon Constitution and the Oregon Tort Claims Act, indemnify, defend, save, and hold harmless each other, their officers, employees, and agents from any and all claims, suits, and liabilities which may occur in their respective performance of this Project. 9. Notwithstanding the foregoing defense obligations under the paragraph above, neither party nor any attorney engaged by either party shall defend any claim in the name of the other party or any agency/department/division of such other party, nor purport to act as legal representative of the other party or any of its agencies/departments/divisions, without the prior written consent of the legal counsel of such other party. Each party may, at anytime at its election assume its own defense and settlement in the event that it determines that the other party is prohibited from defending it, or that other party is not adequately defending it's interests, or that an important governmental principle is at issue or that it is in the best interests of the party to do so. 4 City of Tigard/ODOT Agreement No. 23927 10. City acknowledges and agrees that ODOT, the Secretary of State's Office of the State of Oregon, the federal government, and their duly authorized representatives shall have access to the books, documents, papers, and records of City which are directly pertinent to the specific agreement for the purpose of making audit, examination, excerpts, and transcripts for a period of three years after final payment. Copies of applicable records shall be `made available upon request. Payment for costs of copies is reimbursable by ODOT. 11. This Agreement may be executed in several counterparts [facsimile or otherwise] all of which when taken together shall constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart. Each copy of this Agreement so executed shall constitute an original. 12.This Agreement and attached exhibits constitute the entire agreement between the parties on the subject matter hereof. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement. No waiver, consent, modification or change of terms of this Agreement shall bind either party unless in writing and signed by both parties and all necessary approvals have been obtained. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. The failure of State to enforce any provision of this Agreement shall not constitute a waiver by State of that or any other provision. IN WITNESS WHEREOF, the Parties hereto have set their hands as of the day and year hereinafter written. The Oregon Transportation Commission on June 18, 2003, approved Delegation Order No. 2, which authorizes the Director to approve and execute agreements for day-to-day operations. Day-to-day operations include those activities required to implement the biennial budget approved by the Legislature, including activities to execute a project in the Statewide Transportation Improvement Program. On September 15, 2006, the Director of the Oregon Department of Transportation approved Subdelegation Order No. 2, Paragraph 1, in which authority is delegated to the Deputy Director, Central Services to approve and sign agreements over $75,000 when the work is related to a project included in the Statewide Transportation Improvement Program or in other system plans approved by the Oregon Transportation Commission such as the Oregon Traffic Safety Performance Plan, or in a line item in the biennial budget approved by the Director. 5 City of Tigard/ODOT Agreement No. 23927 On August 2, 2005, the Deputy Director, Central Services approved Subdelegation Order No. 9, in which the Deputy Director, Central Services delegates the authority to the Support Services Branch Manager to approve and execute agreements over $75,000 when the work is related to a project included in the Statewide Transportation Investment Program or in other system plans approved by the Oregon Transportation Commission or in a line item in the legislatively adopted biennial budget. City of Tigard, by and through its City STATE OF OREGON, by and through Manager its Department of Transportation By By Title Date Date APPROVAL RECOMMENDED By By Title Date Date By APPROVED AS TO LEGAL Date SUFFICIENCY By By Counsel Date Date APPROVED AS TO LEGAL SUFFICIENCY Agency Contact: By Assistant Attorney General Date: 6 EXHIBITA CITY OF TIGARD, OREGON ORDINANCE NO. 06-Q I AN ORDINANCE CREATING AND IMPOSING A TAX ON MOTOR VEHICLE FUEL DEALERS; PROVIDING FOR ENFORCEMENT. ADMINISTRATION AND COLLECTION OF THE TAX; AND AMENDING THF:. TIGARD MUNICIPAL CODE BY ADDING ANEW CHAPTER 3.65. WHEREAS, 'Tigard is an Oregon home-rule municipal corporation having the authority and power under the terms of its Charter to exercise all the powers and authority that the constitution, statutes and common law of the United Statcs and this State expressly or impliedly grant or allow as though each such powers were specifically enumerated therein; WHEREAS, said authority and power includes the authority to impose a tax on the sale of motor vehicle fuel sold within the City; WHEREAS, the City Council wishes to exercise that power and to limit the use of any revenues generated by said tax to purposes associated with the administration, construction, reconstruction, improvement, repair, maintenance, operation and use of public highways, roads and strocts within the city; NOW, THEREFORE, THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Tigard Municipal Code is amended by adding a new Chapter 3.65 Motor Vehicle Fuel Tax, to read as follows: Chapter 3.65 MOTOR VEHICLE FULL TAX 3.65.010 Short Tide 3.65.015 Purpose 3.65.020 Definitions 3.65.030 Tax Imposed 3.65.040 Amount and Payment 3.65.050 Permit Requirements 3.65.060 Permit Applications and Issuance 3.65.070 Failure to Secure Permit 3.65.080 Revocation of Permit 3.65.090 Cancellation of Permit 3.65.100 Remedies Cumulative 3.65.110 Payment of tax and Delinquency 3.65,120 Monthly Statement of Dealer Ordinance No. 06-. a Page 1 City of Tigard/ODOT . Agreement No. 23927 Exhibit A 3.65.130 Failure to File Monthly Statements 3.65.140 Billing Purchasers 3.65.150 Failure to Provide Invoice or Delivery Tag 3.65.160 Transporting Motor Vehicle Fuel in Bulk 3.65.170 Exemption of Export Fuel 3.65.190 Fuel in Vehicle Coming into City Not Taxed 3.65.200 Fuel sold or Delivered to Dealers 3.65.210 Refunds 3.65.220 Examination and Investigations 3.65.230 Limitation on Credit for Refund or Overpayment and on Assessment of Additional Tax 3.65.240 Examining Books and accounts of Carrier of Motor Vehicle Fuel 3.65250 Records to be Kept by Dealers 3.65.260 Records to be Kept Three Years 3.65.270 Use of Tax Revenues 3.65.010 Short Title The provisions of this Chapter shall be known and may be cited as the "City of Tigard Motor Vehicle Fuel Tax Ordinance". 3.65.015 Purpose The purpose of the motor vehicle fuel tax is to raise revenues necessary for the construction, reconstruction, improvement, repair, maintenance, operation and use of the public street system in the city. 3.65.020 Definitions. As used in this ordinance, unless the context requires otherwise: I . 'City" means City of Tigard, a municipal corporation of the State of Oregon. 2. "Dealer" means any person who: e. Imports or causes to be imported motor vehicle fuel for sale, use or distribution in, and after the same reaehes the city, but 'Dealer" does not include any person who imports into the city motor vehicle fuel in quantities of 500 gallons or less purchased from a supplier who is licensed as a dealer hereunder and who assumes liability for the payment of the applicable motor vchiclc fuel tax to the city; or b. Produces. refines, manufachucs or compounds motor vehicle fuels in the city for use, distribution or sale in the city; or Ordinance No. 06- a 1 Page 2 8 City of Tigard/ODOT Agreement No. 23927 Exhibit A C. Acquires in the city for sale, use or distribution in the city motor vehicle fuel with respect to which there has been no motor vehicle fuel tax previously incurred. 3. "Distribution" means, in addition to its ordinary meaning, the delivery of motor vehicle fuel by a dealer to any service station or into any tank, storage facility or series of tanks or storage facilities connected by pipelines, from which motor vehicle fuel is withdrawn directly for sale or for delivery into the fuel tanks of motor vehicles whether or not the service station, tank or storage facility is owned, operated or controlled by the dealer. 4. "Highway" means every way, thoroughfare and place of whatever nature, open for use of the public for the purpose of vehicular travel. 5. "Motor Vehicle" means all vehicles, engines or machines, movable or immovable, operated of propelled by the use of motor vehicle fuel. 6. "Motor Vehicle Fuel" means and includes diesel and gasoline and any other flammable or combustible gas or liquid, by whatever name such as diesel and gasoline, gas or liquid is known or sold, usable as fuel for the operation of motor vehicles, except gas or liquid, the chief use of which, as determined by the tax administrator, is for purposes other than the propulsion of motor vehicles upon the highways. 7. "Person" includes every natural person, association, firm, partnership, corporation, joint venture or other business entity. 8. "Service Station' means and includes any place operated for the purpose of retailing and delivering motor vehicle fuel into the fuel tanks of motor vehicles. 9. "Tax Administrator" means the city manager, the city manager's designee, or any person or entity with whom the city manager contracts to perform those duties. 3.65.030 'l'ax Imposed. A motor vehicle fbel tax is hereby imposed on every dealer. The tax imposed shall be paid monthly to the tax administrator. The tax administrator is authorized to exercise all supervisory and administrative powers with regard to the enforcement, collection and administration of the motor vehicle fuel tax, including all powers specified in ORS 319.010 to 319.430. The motor vehicle fuel tax shall remain in effect through December 31, 2011, but shall not remain in effect after that date unless renewed by ordinance of the City Council. Renewal of the tax shall be set for council consideration in the first half of calendar year 2011. Ordinance No. 06- Page 3 9 City of Tigard/ODOT Agreement No. 23927 Exhibit A 3.65.040 Amount and Payment. In addition to any fees or taxes otherwise provided for by law, every dealer engaging in his own name, or in the name of others, or in the name of his representatives or agents in the city, in the sale, use or distribution of motor vehicle fuel, shall: a. Not later than the 25th day of cash calendar month, render a statement to the tax administrator or duly authorized agent of all motor vehicle fuel sold, used or distributed by him/her in the city as well as all such fuel sold, used or distributed in the city by a purchaser thereof upon which We, use or distribution the dealer has assumed liability for the applicable motor vehicle fuel tax during the preceding calendar month. b. Pay a rotor vehicle fuel tax computed on the basis of 3 cents per gallon of such motor vehicle fuel so sold, used or distributed as shown by such statement in the manner and within the time provided in this ordinance. In the event that the State of Oregon or Washington County increm their taxes on motor vehicle fuel, the City, which receives a share of those taxes, shall reduw the rate established by this section so that the City's total revenue from fuel taxes remains what it would have been without the State or County inks 2. In lieu of claiming refund of the tax as provided in Section 3.65.210, or of any prior erroneous payment of motor vehicle fuel tax made to the city by the dealer, the dealer may show such motor vehicle fuel as a credit or deduction on the monthly statement and payment of tax. 3. The motor vehicle fuel tax shall not be imposed wherever it is prohibited by the Constitution of laws of the United States or of the State of Oregon. 3.65.050 Permit Requirements. No dealer shall sell, use or distribute any motor vehicle fuel until he/she has secured a dealers permit as required herein. 3.65.060 Permit Applications and Issuance. I . Every person, before becoming a dealer in motor vehicle fuel in this city, shall make an application to the tax administrator for a permit authorizzing such person to engage in business as a dealer. 2. Applications for the permit must be made on forms prescribed, prepared and furnished by the tax administrator. 3. The applications shall be accompanied by a duly acknowledged certificate containing: Ordinance No. 06- I Pagc 4 10 City of Tigard/ODOT Agreement No. 23927 Exhibit A a. The business name under which the dealer is transacting business. b. The address of the applicant's principal place of business and location of distributing stations in the city. G. The name and address of the managing agent, the names and addresses of the several persons constituting the fine or partnership and, if a corporation, the corporate name under which it is authorized to transact business and the names and addresses of its principal officers and registered agent. 4. If an application for a motor vehicle fuel dealer's permit is complete and has bees accepted for filing, the tax administrator shall issue to the dealer a permit in such form as the tax administrator may prescribe to transact business in the city. The permit so issued is not assignable, and is valid only for the dealer in whose name it is issued. 5. The tax administrator shall keep and file all applications with an alphabetical index thereof, together with a record of all permitted dealers. 3.65.070 Failure to Secure Permit. . 1. If any dealer sells, distributes or uses any motor vehicle fuel without first filing the certificate and securing the permit required by Section 3.65.060, the motor vehicle fuel tax shall immediately be due and payable on account of all motor vehicle fuel so sold, distributed or used. 2. The tax administrator shall proceed forthwith to determine, from as many available sources as the tax administrator determiners re=asonable, the amount of tax due, and shall assess the tax in the amount found due, together with a penalty of 1 p(1% of the tax, and shall make a certificate of such assessment and penalty. In any suit or proceeding to collect such tax or penalty or both. the certificate shall be prima facie evidence that the dealer therein named is indebted to the city in the amount of the tax and penalty stated. 3. Any tax or penalty so assessed may be collected in the manner prescribed in section 3.65.110 with reference to delinquency in payment of the tax or by action at law. 4. In the event any suit or action is instituted to enforce this section, if the city is the prevailing party, the city shall be entitled to recover from the person sued reasonable attorney's fees at trial or upon appeal of such suit or action, in addition to other sums provided by law. 3.65MO Revocation of Permit. The tax administrator may revoke the permit of any dealer who fails to comply with any provision of sections 3.65.020 to 3.65279. The tax administrator shall mail by certified mail addressed to such dealer at his last known address appearing on the files of the tax administrator, Ordinance No. 06- Page 5 11 City of Tigard/ODOT Agreement No. 23927 Exhibit A a notice of intention to cancel. The notice shall give the reason for the cancellation. The cancellation shall become effective without further notice if within 10 days from the mailing of the notice the dealer has not made good its default or delinquency. 3.63.090 Cancellation of Permit. 1. The tax administrator may, upon written request of a dealer, eancel a permit issued to the dealer. The tax administrator shall, upon approving the dealer's request for cancellation, set a date not later than 30 days after receipt of the written request, after which the permit shall no longer be effective. 2. The tax administrator may, after 30 days' notice has been mailed to the last known address of the dealer, cancel the permit of the dealer upon finding that the dealer is no longer engaged in the business of a dealer. 3.65.100 Remedies Cumulative. Except as otherwise provided in Sections 3.65.110 and 3.65.130, the remedies provided in Sections 3.65.070, 3.65.050 and 3.65.090 are cumulative. No action taken pursuant to those sections shall relieve any person from the penalty provisions of this code. 3.65.110 Payment of Tax and Delinquency. 1. The motor vehicle fuel tax imposed by sections 3.65.030 and 3.65.040 shall be paid to the tax administrator on or before the 25th day of each month. 2. Except as provided in subsections (3) and (4) of this section, if payment of the motor vehicle fuel tax is not paid as required by subsection (1) of this section, a penalty of one percent of such motor vehicle fuel tax shall be assessed and be immediately due and payable. 3. Fxcept as provided in subsection (4) of this section, if payment of the tax and penalty, if any, is not made on or before the I' day of the next month following that month in which payment is due, a further penalty of 10 percent of the tax shall be assessed. Said penalty shall be in addition to the penalty provided for in subsection (2) of this section, and shall be immediately due and payable. 4. Pecalties imposed by this section shall not apply if a penalty has been assessed and paid pursuant to section 3.65.070. The tax administrator may for good cause shown waive any penalties assessed under this section. 5. If any person fails to pay the motor vehicle fuel tax or any penalty provided for by this section, the tax and/or penalty shall be collected from that person for the use of the city. The Ordinance No. 06- vZ Page 6 12 City of Tigard/ODOT Agreement No. 23927 Exhibit A tax administrator shall commence and prosecute to final determination in any court of competent jurisdiction an action to collect the same. 6. In the event any suit or action is institutod to collect the motor vehicle fuel tax or any penalty provided for by this section, if the city is the prevailing party, the city shall be entitled to recover from the person sued reasonable attorney's fees at trial or upon appeal of such suit or action, in addition to other sums provided by law. 7. No dealer who collects from any person the tax provided for herein shall knowingly and willfully fail to report and pay the same to the City as required herein. 3.65.120 Monthly Statement of Dealer. Every dealer in motor vehicle fuel shall provide to the tax administrator on or before the 25th day of each month, on forms prescribed, prepared and furnished by the tax administrator, a statement of the number of gallons of motor vehicle fuel sold, distributed or usod by him during the preceding calendar month. 'Me statement shall be signed by the dealer or the dealer's agent. All statements filed with the City, as roquired in this section, are public records. 3.65.130 Failure to File Monthly Statements. If a dealer fails to file any statement required by Section 3.65.120, the tax administrator shaU proceed forthwith to determine from as many available sources as the tax administrator determines to be reasonable the amount of motor vehicle fuel sold, distributed or used by such dealer for the period unreported, and such determination shall in any proceeding be prima facie evidence of the amount of such fuel sold, distributed or used The tax administrator shall immediately assess the dealer for the motor vehicle fuel tax upon the amount determined, adding thereto a penalty of ten percent of the tax. Tate penalty shall be cumulative to other penalties provided in this code. 3.65.140 Billing Purchasers. Dealers in motor vehicle fuels shall render bills to all purchasers of motor vehicle fuel. The bills shall separately state and describe the different products sold or shipped thereunder and shall be serially numbered except where other sales invoice controls acceptable to the tax administrator are maintained. 3.65.150 Failure to Provide Invoice or Delivery Tag. No person shall receive and accept motor vehicle fuel from any dealer, or pay for the same, or sell or offer the motor vehicle fuel for sale, unless the motor vehicle fuel is accompanied by an invoice or delivery tag showing the date upon which motor vehicle fuel was delivered,.purchased or sold, and the name of the dealer in motor vehicle fuel. Ordinance No. 06- a Page 7 13 City of Tigard/ODOT Agreement No. 23927 Exhibit A 3.65.160 Transporting Motor Vehicle Fuel in Bulk Every person operating any conveyance for the purpose of hauling, transporting or delivering motor vehicle fuel in bulk shall, before entering upon the public highways of the city with such conveyance, have and possess during the entire time of the hauling or transporting of such motor vehicle fuel, an invoice, bill of sale or other written statement showing the number of gallons, the true name and address of the seller or consignor, and the true name and address of the buyer or consignee, if any, of the same. The person hauling such motor vehicle fuel shall at the request of any officer authorizes by law to inquire into or investigate such matters, produce and offer for inspection the invoice, bill of sale or other statement. 3.65.170 Exemption of Export Fuel. 1. The motor vehicle fuel tax imposed by sections 3.65.030 and 3.65.040 shall not be imposed on motor vehicle fuel: a. Exported from the city by a dealer, or b. Sold by a dealer in individual quantities of 500 gallons or less for export by the purchaser to an area or areas outside the city in containers other than the fuel tank of a motor vehicle, but every dealer shall be required to report such exports and sales to the city in such detail as may be required. 2. In support of any exemption from motor vehicle fuel taxes claimed under this section other than in the case of stock transfers or deliveries in his own equipment, every dealer must execute and file with the tax administrator an export certificate in such form as shall be prescribed, prepared and furnished by the tax administrator, containing a statement, made by some person having actual knowledge of the fact of such exportation, that the motor vehicle fuel has been exported from the city, and giving such details with reference to such shipment as the tax administrator may require. The tax administrator may demand of any dealer such additional data as is deemed ncccwary in support of any such certificate, and failure to supply such data will constitute a waiver of all right to exemption claimed by virtue of such certificate. The tax administrator may, in a case where tax administrator believes no useful purpose would be served by filing of an export certificate, waive the filing of the certificate. 3. Any motor vehicle fuel carried from the city in the fuel tank of a motor vehicle shall not be considered as exported from the city. Ordinance No. 06- 0 Page 8 14 City of Tigard/ODOT Agreement No. 23927 Exhibit A 4. No person shall, through false statement, trick or device, or otherwise, obtain motor vehicle fuel for export as to which the city tax has not been paid and fail to export the same, or any portion thereof, or cause the motor vehicle fuel or any portion thereof not to be exported, or divert or cause to be diverted the motor vehicle fuel or any portion thereof to be used, distributed or sold in the city and fail to notify the tax administrator and the dealer from whom the motor vehicle fuel was originally purchased of hislhcr act 5. No dealer or other person shall conspire with any person to withhold from export, or divert from export or to return motor vehicle fuel to the city for sale or use so as to avoid any of the fees imposed herein. 6. In support of any exemption from taxes on account of sales of motor vehicle fuel in individual quantities of 500 gallons or less for export by the purchaser, the dealer shall retain in his/her files for at least three years an export certificate executed by the purchaser in such form and containing such information as is prescribed by the tax administrator. This certificate shall be prima facie evidence of the exportation of the motor vehicle fuel to which it applies only if accepted by the dealer in good faith. 3.65.175 Sales to Armed Forces Exempted. The license tax imposed by sections 3.65.030 and 3.65.040 shall not be imposed on any motor vehicle fud sold to the Armed Fonts of the United States for use in ships, aircraft or for export from the city, but every dealer shall be required to report such sales to the tax administrator in such detail as may be required. A certificate by an authorized officer of such Armed Forces shall be accepted by the dealer as sufficient proof that the sale is for the purpose specified in the certificate. 3.65.190 Fuel in Vehicle Coming into City Not Taxed. Any person coming into the city in a motor vehicle may transport in the fuel tank of such vehicle, motor vehicle fuel for his/her own use only and for the purpose of operating such motor vehicle without securing a permit or paying the tax providod in Sections 3.65.030 and 3.65.040, or complying with any of the provisions imposed upon dealers herein, but if the motor vehicle fuel so brought into the city is removed from the fuel tank of the vehicle or used for any purpose other than the propulsion of the vehicle, the person so importing fuel into the city shall be subject to all the provisions herein applying to dealers. 3.65.200 Fuel Sold or Delivered to Dealers. 1. A dealer selling or delivering motor vehicle fuel to dealers is not required to pay a motor vehicle fuel tax thereon. Ordinance No. 06- a page 9 15 City of Tigard/ODOT Agreement No. 23927 Exhibit A 2. The dealer in rendering monthly statements to the city as required by Sections 3.65.040 and 3.65.120 shall show separately the number of gallons of motor vehicle fuel sold or delivered to dealers. 3.65110 Refunds. Refunds will be made pursuant to ORS 319.280 to 319.320. Claim forms for refunds may be obtained from the tax administrator's office. 3.65.224 Examination and Investigations. The tax administrator, or duly authorimd agents, may make any examination of accounts, records, stocks, facilities and equipment of dealers, service stations and other persons engaged in storing, selling or distributing motor vehicle fuel or other petroleum product or products within this city, and such other investigations as it considers necessary in carrying out the provisions of sections 3.65.020 through 3.65.279. If the examinations or investigations disclose that any reports of dealers or other persons theretofore filed with the tax administrator pursuant to the requirements herein, have shown incorrectly the amount of gallonage or motor vehicle fuel distributed or the tax accruing thereon, the tax administrator may make such changes in subsequent reports and payments of such dealers or other persons, or may make such refunds, as may be necessary to correct the errors disclosed by its examinations or investigations. The dealer shall reimburse the city for reasonable costs of the examination or investigation if the action disclosed that the dealer paid 95 percent or less of the tax owing for the period of the examination or investigation. In the event that such examination or investigation results in an assessment by and an additional payment due to the city, such additional payment shall be subject to interest at the rate of 18 percent per year from the date the original tax payment was due. 3.65.230 Limitation on Credit for or Refund of Overpayment and on Assessment of Additional Tax. 1. Except as otherwise provided in this ordinance, any credit for erroneous overpayment of tax made by a dealer taken on a subsequent return or any claim for refund of tax erroneously overpaid filed by a dealer must be so taken or filed within three years after the date on which the overpayment was trade to the city. 2. Except in the case of a fraudulent report or neglect to snake a report, every notice of additional tax proposed to be assessed under this code shall be served on dealers within three years from the date upon which such additimW taxes become duc, and shall be subject to penalty as provided in section 3.65.110. 3.65.240 Examining Books and Accounts of Carrier of Motor Vehicle Fuel. Ordinance No. 06- oZ Page 10 16 City of Tigard/ODOT Agreement No. 23927 Exhibit A 'I'he tax administrator or duly authorized agents may at any time during normal business hours examine the books and accounts of any carrier of motor vehicle fuel operating within the City for the purpose of enforcing the provisions of this ordinance. 3.65.250 Recor&q to be Kept by Dealers. Every dealer in motor vehicle fuel shall keep a record in such form as may be prescribed by the tax administrator of all purchases, receipts, sales and distribution of motor vehicle fuel. The records shall include copies of all invoices or bills of all such sales and shall at all times during the business hours of the day be subject to inspection by the tax administrator or authorized officers or agents of the tax administrator. 3.65.260 Records to be Kept Three Yeats. C- very dealer shall maintain and keep, for a period of three years, all records of motor vehicle fuel used, sold and distributed within the city by such dealer, together with stock records, invoices, bills of lading and other pertinent papers as may be required by the tax administrator. In the event such records arc not kept within the state of Oregon, the dealer shall reimburse the tax administrator for all travel, lodging, and related expenses incurred by the tax administrator in examining such records. The amount of such expenses shall be an additional tax imposed by section 3.65.030. 3.65170 Use of Tax Revenues. For the purposes of this section, net revenue shall mean the revenue from the tax imposed by sections 3.65.020 through 3.65.279 retraining after providing for the cost of administration and any refunds and credits authorized herein. 2, The net revenue shall be used only for the construction, reconstruction, improvement, repair, maintenance, operation and use of public highways, roads and streets within the city. The net revenue shall be used exclusively for improvements tD the Cmaenburg RoadMighway 99 intersection. The City shall cease collecting the tax once the improvcnicnts are fully funded. SECTION 2: The tax imposed pursuant to section 3.65.030 shall take effect only after the tax administrator has developed the necessary forms and documents to administer the tax. The tax administrator shall declare when the tax shall take effect, and give not Icss than 15 days notice of the date before the tax may take effect The tax administrator's decision as to the effective date of the tax and the type of notice to provided shall be final and not subject to review. Ordinance No. Ott- a Page I1 17 City of Tigard/ODOT Agreement No. 23927 Exhibit A SECTION' 3: If any portion of this Chapter is for any reason held invalid or unconstitutional by a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions of this ordinance: SECTION 3: This ordinance shall be effective 30 days after its passage by the Council, signature by the Mayor, and posting by the City Recorder. PASSED: By Orlin 1 nn US vote of all Council members present after being head by number and title only, this 1!3 4~ day ofDeMmIga , 2006. Catherine Wheatley, City Recrn APPROVED: By Tigard Git Cu it this day ofd vm~2Qlt . , 2006. Craig Didcscn, Mayor Approved as to form: V 4ty Attorney 0- ICi -D(o Date Ordinance No. 06- Page 12 18 Agenda Item # Meeting Date February 27, 2007 COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Legislative Briefing by Senator Burdick & Representative Galizio Prepared By ._Joanne Ben on CW Dept Head ApprovaL 02 City Mgr Approvah ISSUE BEFORE THE COUNCIL Council and legislative representatives will discuss issues affecting the City of Tigard and State Senator Ginny Burdick and State Representative Larry Galizio will provide an update on the local issues before the Legislature at this time. STAFF RECOMMENDATION Identify issues of interest or concern to Senator Burdick and State Representative Galizio. KEY FACTS AND INFORMATION SUMMARY Senator Burdick and Representative Galizio were contacted and agreed to meet with the Qty Council to provide an update on the 2007 Legislative Session. OTHER ALTERNATIVES CONSIDERED N/A. CITY COUNCIL GOALS Council Goal # 5: Increase Tigard's involvement with Washington County, Metro, State, ODOT, TnMet and Federal government. Tigard Beyond Tomorrow -Community Character and Quality of Life - Communication Goal - Citizen involvement opportunities will be maximized by providing educational programs on process, assuring accessibility to information in a variety of formats, providing opportunities for input on community issues and establishing and maintaining two-way communication. ATTAcHmENT LIST 1- City of Tigard Legislative Priorities 2- Letter to Senator Burdick & Representative Galizio dated 2-6-07 FISCAL NOTES N/A i\adm\cirycouncAcou 0agenda item sum cries\ais for gaUzio-butdick070227.doc2/16/07 City of Tigard Legislative Priorities " Annexation SB 122 required agreements to define service providers for urban areas. If cities are designated as the ultimate service providers for urban unincorporated areas, public policy needs to support that goal. The legislature has dramatically limited the ability of cities to annex those areas. Having a variety of annexation methods available allows cities and residents of those areas maximum flexibility in the timing and circumstances to annex areas and provide urban services. Pending .Bills: HB 2050 Island Annexation Limited to Provision of Services Oppose Modifies requirements and procedure for city to annex territory surrounded by city. Requires finding of clear and convincing evidence by city to use island annexation, limited to properties which require essential services. Requires 10-year tax phase-in. (By the House Interim Committee on Land Use) If the reason for annexation is to provide services that propery will benefit from, why not require property owners to pay their share? Measure 37 The City of Tigard has received nine (9) Measure 37 claims. Some of the claimants have filed merely to protect their rights. The City of Tigard supports suspending the Measure for a time certain and referring changes to the voters. Pending Bills: None identified: Transportation Fundi The Tigard City Council recently approved a 3¢ local gas tax to fund improvements to the Greenburg Rd-Main St./Hwy 99W intersection. The tax would be reduced if state and/or county taxes increase. Funding transportation improvements continues to be a challenge for local governments. The City of Tigard supports increasing the state gas tax and/or vehicle registration fees if the funds are allocated for transportation system improvements. Pending Bills: None identified: System Development Charges: (SDC's for Schools) The need for new school facilities is directly tied to population growth. It is appropriate to collect SDC's for schools in the same manner collected for parks, streets, sanitary sewer and water. Tigard supports the identification of schools as an essential service and SDC's for schools but not if limits are imposed on existing SDC's. Pending.Bills: SB 366 Impact Fees: Schools: Reviewing with School District Authorizes school districts to establish an impact fee on new lots or parcels and caps the fee at $6,500/lot or parcel. Requires county recording officers to administer the collection Tigard Legislative Priorities 2/16/2007 1 of the fee, and authorizes the county to assess a charge of up to one percent to cover administrative costs. (By Senator Schrader and Representative Tomei) SIB 45 Parks/Schools System Development Charges: Oppose- only applies to Authorizes a schools system development charge (SDC) school sites adjacent to parks as a component of a parks and recreation SDC. Caps the or recreation facilities. level of parks/recreation/schools SDCs at an unspecified Limits ability of schools to collect amount. Requires that school facilities funded with SDC toward funding full cost of growth. fees be adjacent to a park or recreation facility and be made available for public use. (By the Senate Comm. on Educational Excellence) Collective Bargaining: The City opposes legislation that modifies the definition of employment relations; public safety supervisor; and last best offer arbitration award criteria because it would limit the city's ability to manage public safety work forces by subjecting service levels and personnel to collective bargaining. Pending Bills: SB 313 Public Safety Staffing Oppose Modifies definition of "employment relations" to include certain staffing levels and safety issues for certain employees who are prohibited from striking. (By OR State Firefighters Council) SB 400 Staffing Levels for Bargaining Units Prohibited from Striking: Oppose Modifies definition of "employment relations" to include certain staffing levels and safety issues for certain employees who are prohibited from striking. (By Senators Brown and Prozanski) SIB 401 Modifies Definition of Public Safety Supervisor Oppose Modifies definition of "supervisory employee" for purposes of public employee collective bargaining law. A public safety officer who has no authority to impose economic discipline on subordinate employees may not be considered to be supervisory. (By Sen. Brown) SB 402 Amends Last Best Offer Arbitration Award Criteria: Oppose Modifies criteria used by arbitrators in public collective bargaining. (By Sen. Brown) HB 2404 Public Safety Staffing: Oppose Modifies definition of "employment relations" to include certain staffing levels and safety issues for certain employees who are prohibited from striking. (By Rep. Schaufler) is\adm\joanne\city of turd Icgislarire priorirics070130.doc 1/30/07 Tigard Legislative Priorities 2/16/2007 2 February 6, 2007 <Lett d)azd> (This sane letter uas sent to Rep. Galizio Senator Ginny Burdick Representative Larry Galizio 900 Court St. NE., S-317 900 Court St NE, H-390 Salem, OR 97301 Salem, OR 97301 Dear Ginny, Dear Larry, Thank you for taking the time to meet with us last week, We recognize how valuable your time is, so we are especially appreciative. As we indicated, we hope to make regular visits to Salem over this legislative session, and plan on improving our communications with you so that you are aware of issues of concern to Tigard. By the same token, we truly hope that you will call on us as you need help on legislative issues. As we discussed, one of Tigard's major concerns are the public safety collective bargaining bills that have been introduced this session (SB 313, SB 400, SB 401, SB 402, and HB 2404). We recognize that labor organizations are urging your support of this legislation, but we want to provide you with some additional thoughts from the city's perspective. As we discussed this issue on the way home, we found ourselves stumped by a fundamental question: What is the problem that we are trying to solve? Safety of our police officers and other City employees is a primary concern of the City. We have a remarkable safety record, and consistently win awards from the League of Oregon Cities for our excellent safety record. In addition, we have not heard of other major public safety issues from other jurisdictions. Given this excellent record statewide, is legislation as proposed in SB 400 and HB 2404 really required to address this issue? If there is a problem with officer and firefighter safety in Oregon, is a change to collective bargaining laws really the best solution? Officer and firefighter safety issues often rest on technical evaluations (for example, performance characteristics of one manufacturer's Kevlar vest vs. another manufacturer's vest.) As you know, public safety unions are prohibited from striking and collective bargaining impasses are referred to independent arbitrators. These arbitrators are skilled at employment law issues, but they know nothing about officer safety. If there is a problem with the safety of Oregon public safety officers, wouldn't it be better to have these issues settled by a trained, independent office or board rather than labor arbitrators who cannot weigh the merits of technical safety issues? Would a better solution regarding safety issues be to assign responsibility to an independent board such as DPSST or the State Fire Marshall to set and enforce standards that all jurisdictions would have to meet? One of Tigard's concerns about SB 400 and HB 2404 is that they would require the City to negotiate staffing levels with our union. That is clearly not an appropriate role for collective bargaining. Decisions concerning staffing levels should and must remain with local elected officials, not the collective bargaining table. Citizens of our communities, through their local elected officials, make the decisions about the level and quality of all public services they want and need. It is up to the citizens to make the ultimate decision regarding the level of policing and other services that they want, not unions and management. Once the community has made that decision, it is up to management to make sure that the level of service desired is provided in a safe and effective manner. SB 401 changes the definition of "supervisory employee" to exclude first line supervisors (in Tigard's case, sergeants) It does this byrestricting "supervisory employees" to include only those who can impose economic discipline. This is unworkable. First line supervisors, such as sergeants have direct responsibility for managing employees and ensuring that the terms of all personnel policies and union contracts are enforced. Management imposes economic sanctions (suspension, demotion, or termination) for performance violations only in extreme cases. Because of that, all levels of management, up to and including the City Manager review and discuss these sanctions before they are imposed. No supervisor has the authority to impose these sanctions without the express approval of the Chief of Police, and often the City Manager. SB 401 would change the system so that sergeants, lieutenants, captains, and even the police chief become union members while simultaneously being held responsible for enforcing the union contract. This would create an unworkable situation. Finally, SB 402 removes the number one priority that existing law places on the interest and welfare of the public in collective bargaining arbitration. How can that not be the first priority of any decision of government? We are public servants. We serve the public. The interest and welfare of the public always has to be our primary consideration. Once that changes, we are no longer here to serve the public, but our own self-interest. We apologize for waxing on too long, but these bills are of vital interest to our citizens. Please let us know if we can provide you with any other information. Once again, thank you for meeting with us last week. We look forward to your visits with the Tigard City Council, and our future visits with you in Salem. Sincerely, Craig Prosser Liz Newton City Manager Assistant City Manager cc: Mayor Craig Dirksen Tigard City Council League of Oregon Cities Agenda Item # 5 Meeting Date Feb. 27.2006 COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Metro Briefing by Metro Councilor, Carl Hosticka - Possible Discussion Topics Prepared By: Ron Bunch Dept Head Approval: City Mgr Approval: ISSUE BEFORE THE COUNCIL The appended "talking points" are provided as examples of issues that Council may wish to discuss with Metro Councilor, Carl Hosticka. STAFF RECOMMENDATION No action is requested. KEY FACTS AND INFORMATION SUMMARY During the process of developing the Tigard 2007 - Comprehensive Plan Resource Report and work with the public, the Community Development Department identifed seven themes which are of City and Metro joint interest. OTHER ALTERNATIVES CONSIDERED Not Applicable CITY COUNCIL GOALS Increase Tigard's involvement with TriMet and ODOT and Washington County, Metro, state and federal governments. ATTACHMENT LIST Attachment 1: Talking Points FIscAL NOTES Not Applicable \\tig20\inetpub\tig20\ww =tkfoms\fom docs\council agenda item summary sheet 07.doc Talking Points Ron Bunch x2427 2-18-07 Talking Points for Tigard Council Meeting with Metro Councilor Hostika Topic Why it is important to Tigard and the Region ✓ Promotes fragmentation of governance and Urban development of unincorporated county services; cities are best suited to provide the lands range of services needed to accommodate Urban Growth. This is an issue which Tigard has confronted for ✓ City's loose control of development on their many years. The concern is that Washington boundaries and often must accommodate County is turning its back on its commitment to "external costs" (parks and leisure services, recognize cities as the proper entities to provide transportation, emergency services). urban services. Bull Mountain is a case in point, ✓ Once established, unincorporated urban as is the County's proposal to plan for and lands are often self perpetuating and can urbanize Urban Growth Area's 63 and 64. block cities' ability to plan for and urbanize new UGB areas; in Tigard's case, areas 63 Source Experience with Bull Mountain; recent and 64. discussions with County representatives; concerns ✓ Cities are the best building blocks of highly expressed by other Mayors and Washington efficient and compact urban areas that County City Managers provide the full range of urban land uses including employment. ✓ Unincorporated urban lands may not be economically sustainable as the economy of urban areas adjusts to new energy and transportation realities. ✓ Causes political and social conflict. Oregon's incorporation statutes do not ✓ Existing cities and counties and Metro in the recognize the importance of implementing the Portland Metropolitan Region must prove Metro Functional Plan or 2040 Growth Plan that major land use actions are consistent with the Statewide Planning Goals, Metro Tigard's experience with the Bull Mountain 2006 Functional Plan and the Metro 2040 Growth incorporation proposal was that there was no Concept. burden of proof how such action would serve to ✓ The incorporation of new cities has potential implement either the Metro Functional Plan or the for profound impacts on the character and 2040 Growth Concept. form of the region, but is not evaluated according to these criteria. It may be Source: Experience with Bull Mountain; positions appropriate for Metro Council to take a taken by certain state and county political leaders; larger role in this issue. concerns expressed by other Mayors and Washington County Co City Managers Talking Points Ron Bunch x2427 2-18-07 Topic Why it is important to Tigard and the Region Transportation issues are raised consistently ✓ Metro and the State have emphasized by Tigard's residents, particularly Highway improvements to Highway 26 for a number 99W. Tigard also has significant concerns of years. It is in Tigard's and the City of with the future of Interstate 5 and Highway Portland's interest to address Highway 99W 217 congestion and quality of life concerns. ✓ Highway 217 is one of the most congested Transportation issues are important to Tigard segments of freeway in the state. The freeway since it is affected by major north south routes, I- is so congested that the state imposed a de- 5 and Highway 99w in addition to being traversed facto moratorium on large scale development by the region's major east west freeway - Hwy. in the Tigard Triangle. Capacity 217. improvements and operations management on all of these major roads are of great Source: Tigard Community Surveys - Ongoing interest to Tigard. and consistent community concern; Tigard ✓ It is also important to Tigard to begin to Chamber of Commerce consider transit has having greater future role. ✓ It is time for Tigard and its Regional Partners to make significant long term plans regarding the City's its transportation future such as: Boulevard Development and Light Rail on Highway 99W; Capacity, Operations and safety improvements on Hwy. 217; major corridor land use changes to promote a more rational land use/ transportation relationship. Economic Development Emphasis on ✓The region and its economic development Sustaining and Growing Existing Businesses, organizations should promote this objective and Maximizing Use of Underutilized land whenever possible. There certainly is a need for large industrial sites, which must be Tigard because of its location, not adjacent to the accommodated on the urban boundary fringe, urban growth boundary, has an interest in growing but most growth employment occurs from the its existing businesses and maximizing the use of incremental expansion of small to midsized its existing employment land. businesses. Source: Tigard Chamber of Commerce; findings of Tigard 2007 Comprehensive Plan Resource Document Talking Points Ron Bunch x2427 2-18-07 Topic Why it is important to Tigard and the Region Funding assistance to promote redevelopment in Centers and upgrade existing infrastructure ✓ In most suburban areas the market does not systems to accommodate growth. provide the returns to make private mixed use development feasible, particularly when More and better ways are needed to leverage parking needs and infrastructure private investment into Centers. Growth is not improvements (especially street paying for its impacts on existing infrastructure improvements) costs are considered. systems, particularly transportation. Additional funding assistance through low/subsidized loans; grants, tax credits would Source: Metro Council, various Metro studies make a big difference in achieving the region's and Tigard's experience Center's Development Policy. Loss of neighborhood trees and green spaces ✓ Development, at densities needed to meet the region's urban growth goals, has resulted in Citizens have expressed concern that urban small single-family residential lots and development has been allowed to occur at such intensely developed attached and multi-family densities/ intensities that most trees on a sites. Development on these sites typically development site are cut down and there is results in removal of most of the existing trees inadequate property left to landscape / plant trees. and lot coverage that prevent meaningful tree The result is a dramatic and most often negative planting or landscaping. The result is a change in neighborhood character. dramatically changed neighborhood character. ✓ It is important for cities to address site design Ways are needed to incorporate site design and tree preservation and tree planting issues measures to prevent loss of existing trees and to to mitigate impacts aesthetic and allow for larger areas of private green space and environmental impacts on their communities. tree planting areas, even it means reducing ✓ This is particularly important when infill maximum allowed density on a development site. development - development in established neighborhoods occur. Source: Tigard Tree Board and Tigard ✓ Furthermore it is essential for the region's Community Surveys environmental health to preserve and plant trees and other vegetation and minimize impermeable areas. Workforce Housing ✓ Work force housing is important for sustained The supply of affordable'workforce housing has economic development / stability. decreased in the Metro region to the extent that it ✓ Safe and affordable housing is necessary for may pose problems for the region's economic social stability and essential for children to viability. Furthermore, the opportunity for thrive. households to build equity in homeownership is ✓ Families/ households need opportunities to decreasing. build wealth and equity. The Portland Metro Region must not go the way of parts of the Source: Tigard 2007 Comprehensive Plan Country where social class is often determined Resource Document; Studies by Metro and others; by those that own property and those that do Housing advocates; Tigard Chamber leadership not. forum Agenda Item No. Meeting of , 7 v2130:Z City of Tigard, Oregon 13125 SW Hall Blvd. TIGARD:l February 27, 2007 Carl Hosticka Metro Regional Council 600 NE Grand Ave. Portland, OR 97232-2736 Dear Councilor Hosticka: The more than half-year-long process for selecting projects for 2010-11 MTIP funding is coming to a close. On March 1st, JPACT is scheduled to act on a TPAC Recommended Final Cut List. Metro Council review and adoption of the JPACT list is set to take place two weeks later on March 151h. As you know, Tigard is seeking $2.54 million in MTIP funding to reconstruct Downtown Main Street from the RR tracks to HWY 99W to full Greenstreet standards. This 1,400 lineal foot project, representing half of Main Street's length, is the first phase of its planned end to end green redevelopment. At last week's JPACT briefing on the MTIP candidate projects, Councilor Burkholder, as Chair, distributed a handout containing a Metro Council "Core Program" project list. He described the projects on the list as "key pieces that Metro Council would not want to lose." No explanation regarding the funding levels shown was provided, however. Main Street is among the projects included on the Council list. This demonstration of Metro Council support is highly appreciated by Tigard. At the same. time, a cause for concern is that the funding amount shown reflects the City's "scalable", or minimum request ($2.0 million), and not the full request of $2.54 million. Our concern is that the $2.0 million will be seen by JPACT as the Metro Council's "recommended" amount, as opposed to the "least amount acceptable", the actual meaning Council intended to convey. While the $2.0 million is a substantial sum, it will not be sufficient for the accomplishment of a full project. Without full funding, Tigard will be required to reduce the scope of an already downscaled project. As the Westside's first-ever green street, Main will be a demonstration project for the many other jurisdictions located within the area. Its importance as an example is in addition to the project's many other benefits: Town Center revitalization, stormwater infiltration, and Commuter Rail access. 1 Phone: 503.639.4171 . Fax. 503.684.7297 www.tigard-or.gov TTY Relay: 503.684.2772 Metro staff and MPAC are each on record as supporting full funding for Main Street. As the District 3 Representative on Metro Council, we ask that you clarify to JPACT, on or before JPACT"s March 1st meeting, that Metro Council endorses the Metro staff and MPAC full funding recommendation with regard to Main Street. Thank you for your consideration. Sincerely, Craig Dirksen, Mayor City of Tigard 2 Q~ Agenda Item # Meeting Date February 27, 2007 COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Update on the Library and Police Performance audits and the City financial audit Prepared By: Robert Sesnon Dept Head Approval: w City Mgr Approval: ISSUE BEFORE THE COUNCIL The City Council requested that staff provide a summary of the library and police performance audits and the annual financial audit and findings during a televised City Council meeting. STAFF RECOMMENDATION None. Informational only KEY FACTS AND INFORMATION SUMMARY During the February 20, 2007 workshop meeting the Council heard presentations from the consultants conducting performance audits of specific library and police operations. In addition, Mr. Thomas E. Glogau, CPA, of the public accounting firm of Grove, Mueller and Swank, P.C. gave a brief presentation of the recently completed city audit. The City Council requested that staff provide a summary of these audits and findings during a televised City Council meeting. OTHER ALTERNATIVES CONSIDERED Not applicable. CITY COUNCIL GOALS Not applicable ATTACHMENT LIST Tigard Public Library Performance Audit dated December 31, 2006 Memorandum from Public Safety Liability Management, Inc. regarding status of Tigard Police Department performance audit City of Tigard Comprehensive Annual Financial Report for the Year Ended June 30, 2006. FISCAL NOTES None. \Vig20Unetpub\lig2ONw rootVomuVo" oocstcouncil agenda item summary sheet 07.ooc 4 T.IGARD PUBLIC LIBRARY PERFORMANCE AUDIT December 31, 2006 Jeanne Goodrich ~ch 1 C 0 N S U L T I N G TABLE OF CONTENTS Executive Summary Performance Audit Purpose 3 Overall Assessment 3 Summary of Recommendations 4 Introduction The Performance Audit Project 7 The Tigard Public Library 7 Findings and Recommendations Value for Resident Investment 9 Doing Things Right 15 Workflow and Work Process Review 19 Conclusions 33 Page 2 of 34 EXECUTIVE SUMMARY Performance Audit Purpose This performance audit is designed to review work flow, materials flow, work processes, and staffing allocations for the Tigard Public Library in order to identify potential efficiencies. It is also designed to answer the question: Are Tigard residents receiving appropriate value for their investment in the Tigard Public Library? The audit was conducted by gathering and reviewing background information such as the budget, performance measurements, statistics, and various reports, surveying all staff members regarding their work activities, processes and opinions, touring the library and observing work processes and activities, meeting a number of staff members, and interviewing library managers. Overall Assessment High Satisfaction, High Return on Investment According to both the community and library surveys, the library is highly regarded by both Tigard residents and those who actually use the library. The Uft satisfaction numbers are unusually high, signifying f that the library is in touch with what the community and its users need and want. The fact that the city and - the library proactively engage with the community to ensure that they are hearing from their constituents is very positive as is the fact that the city builds effectiveness measurements into its budgeting process and that the library conscientiously tracks them and 71 uses them as it makes service and resource allocation decisions. The library provides a return on investment of nearly $4 for every tax dollar invested in its collections and services. This figure was computed using very conservative methodology and is deemed highly credible. In addition, the library is a key community institution in support of children and families, education, community building, the free and open exchange of ideas, the joy and utility of reading, and the pursuit of worthwhile leisure activities. There is no way to compute a monetary value but these intangible benefits are understood by both the community at large and library users and are reflected in the regard held for libraries in general and the Tigard Public Library in particular. The library is staffed by highly competent, dedicated, customer service oriented employees and managers. The staffing level is neither severely deficient nor generous but basically adequate for the size of the facility, hours of operation, and programs and services provided. These paid employees are augmented by over 400 volunteers who donate the equivalent of seven full time positions. These volunteers provide essential services such as checking in returned books, reshelving books, searching for requested items, and processing and mending library materials. These are basic meat and potatoes services, not nice to Page 3 of 34 have extra's. Without these volunteers, the library simply could not function and the quality of service and customer interactions would suffer tremendously. The library is well managed. It plans its work and works its plan. Managers know their numbers and work to reassess work practices and work flow. This is, of course, a never ending process and there is always room for fresh perspectives and additional review. However, the managers are open to this sort of analysis and hold themselves and their employees accountable for achieving articulated goals. There are areas where efficiencies could be achieved but it's important for everyone involved to understand that the adoption of the kinds of suggestions and recommendations made in this report involve tradeoffs. The library and the City, for example, place a high value on providing responsive, personalized service to city residents. Time and money can be saved by using self-service technology but this could impact user satisfaction. The challenge will be to consider options within the larger context of the community's character and values system. Summary of Recommendations • Continue to conduct periodic trend analyses and comparisons to track the basic direction of fundamental indicators such as those shown in Appendix A and various tables throughout this report. The library's managers are aware of their effectiveness and work load measures and routinely track this management information. Conducting longitudinal assessments of both outputs (such as circulation, program attendance, questions answered) and inputs (budget for library materials, staff) will provide information with which to make management assessments and decisions. • Continue to maintain a close connection between the goals and objectives of the strategic plan, which was derived through substantial citizen input, and the annual budget. The library is doing well with this and should continue this practice. • Become more proactive in using the effectiveness and workload measures so that slippages are addressed rather than just noted. Utilize process improvement techniques to determine how the work is currently being done and to determine what steps can be altered or eliminated so that productivity can be maintained or even improved. • Continue the annual library surveys. This commendable practice is comparatively rare in public libraries but is essential to maintaining responsive services. The Tigard Public Library is regarded as very effective because it routinely asks its users how well it's doing and makes service adjustments based on the answers received. • Continue to carefully watch and monitor how volunteers are utilized with the goal of having both a strong volunteer program and ensuring, to the extent possible, that volunteer work is done as efficiently as possible. This is an area where there are tradeoffs that must be recognized and discussed. • Work with city web staff and other city departments to create and support websites that are as dynamic and interactive as possible. Library staff are eager to create, deliver, and share content online using new tools such as blogs, podcasts, and wikis. Advocate for usability testing involving citizens and library users to ensure that the website and interfaces (such as the library catalog and electronic databases) are easy to use and allow users to find the information they are seeking. Page 4 of 34 Work with WCCLS and SAM, the vendor of the PC management software to complete the installation of the software and its integration with Polaris (the cooperatively owned integrated library system) so that public PCs and printing through them can be managed as efficiently as possible. • Continue to develop the roving/deskless reference concept so that reference staff move out from behind their desks and work proactively with library customers on the floor and at the study tables. This major change in service model will require continued training and discussion among library staff and managers. Accelerate the development of a comprehensive collection development/materials selection policy and attendant procedures so that staff who select materials have clear guidance and so that selection of age level and print and non-print materials are selected in a way that is consistent with identified community needs and wants and the strategic plan. Continue and refine the use of turnover rates and other collection usage statistics as the basis for both selection, replacement, and retention decisions. • Utilize vendor provided selection and acquisitions services as extensively as possible for popular, high demand materials so that selectors can devote their time to sculpting a collection that meets local needs. • Continue with the targeted approach to programming. The Tigard Public Library has developed sophisticated program plans that link both to identified community needs and the library's strategic plan. • Utilize non-MLS degreed senior library assistants to supplement the desk, programming, and collection development work of librarians. This approach has begun but could be developed further. As library work has changed, this classification can play a larger role without a decline in service quality. • As additional outreach services are planned and developed, investigate collaboration opportunities with other agencies and organizations to find ways to extend services beyond the physical confines of the library building. This approach is a key factor in community building and can often contribute to the economic development of the communities served, also. However, everyone involved must understand that developing such partnerships takes time away from other library activities. Care must be taken to backfill staff who are assigned to do this and/or to develop alternative staffing patterns, such as more extensive use of senior library assistants. • Conduct process analyses of Technical Services and Circulation activities using techniques provided to library managers to decrease turn around time in both divisions. Besides knowledgeable, friendly, helpful staff, responsive customer service requires that materials be made available to the public as quickly as possible. Effectiveness measures must be revised so that materials are made available sooner. • Review the purpose for various color codes, labels, collection locations and codes, etc. with public services staff. The handling and labeling necessitated by these add to the processing and reshelving time, thus impacting output in both Technical Services and Circulation. Take advantage of vendor provided processing and cataloging services. By using process analysis techniques, the true cost of doing this work in house can be compared with purchasing vendor services. If labels and other special handling is reduced, it will be less expensive both to do the work Page 5 of 34 in house and for the vendor to do the work. Many libraries use both approaches, which can result in material moving through Technical Services more quickly. • Cross train Technical Services employees so that work can be assigned based on where it is backing up. Individuals may have expertise that others can call on, but the goal should be that all employees can perform the various tasks so that work doesn't back up if a particular employee is out ill, on vacation, etc. • Experiment with the concept of a sorter (which could be a paid staff member or volunteer) in Circulation so that those checking materials in don't have to stop to place materials on the various shelving carts around the room. Determine whether or not a way can be found to determine the percentage of holds not picked up by library customers. Determine what seems to be an acceptable "cost of doing business" and track the figure to determine whether or not it exceeds this level. Consider using positively worded bookmarks and other methods for communicating with library customers, asking their assistance in managing this problem (such as cancelling unwanted holds, etc.). • Working with WCCLS, develop workload and effectiveness measures related to the holds and delivery process. This is a time and labor consuming part of library work that is still relatively new. Good, standardized measures are not yet available which means that each library must work to develop its own. • Implement the planned activities to raise awareness among library customers of the self-check option and its advantages to them. Review the placement of the machine(s) to ensure that they are visible and seem like a primary rather than a secondary option for library users. Arrange for several months worth of friendly, personal assistance so that library customers learn how easy the self-check option is. Review policies to be sure that they don't present barriers to the use of the self-check option. • Shelve holds in a user accessible area near the self-check machines so that library users can pick up and check out their holds themselves rather than having to ask desk staff to retrieve them. Many libraries have now gone to this system and have been able to work out issues of security and confidentiality to the satisfaction of the vast majority of users. • Set an ambitious self-check utilization rate of 20% by the end of 2007 and 40% by the end of 2008. Page 6 of 34 INTRODUCTION The Performance Audit Project Scope of the Project This performance audit is designed to review work flow, materials flow, work processes, and staffing allocations for the Tigard Public Library in order to identify potential efficiencies. It is also designed to answer the question: Are Tigard residents receiving appropriate value for their investment in the Tigard Public Library? Project Methodology The consultant received background information provided by the library, including various reports, the budget, the union contract, and available service and output statistics. In addition, survey forms were prepared and distributed to all staff members. The survey asked for details about how each employee spent his or her time, requested information about work space and equipment, and asked for the employees' opinions on work flow and work activities. An extraordinary 100% return rate meant that the consultant was able to hear, through the confidentially submitted surveys, from every staff member. This background information provided a beginning context for three days spent on site, conducting interviews with division managers, meeting a number of staff members, observing work processes and activities throughout the library, and observing staff and volunteer interactions with library customers. Additional information was then requested and analyzed along with the information gathered through the direct observations provided by the site visits. Acknowledgements The consultant was impressed with the openness, candor, and responsiveness to the project evinced by the library's managers and staff members. Library employees were aware of the project, participated fully in terms of completing the survey forms and providing requested information promptly and completely, and indicated that they are well versed in their job duties and responsibilities, proud of their contributions to their division's work efforts, and committed to providing quality, customer-oriented library services to Tigard residents. The Tigard Public Library Founded in 1963, the Tigard Public Library serves the 65,310 citizens of Tigard and surrounding areas through a 48,000 square foot building opened in 2004.1 The library provides a broad array of library services, from the traditional loaning of books and audiovisual materials, answering of questions, and provision of children's programming to the "new basic" _ services of public PCs, classes in how to use technology, book discussion clubs and leading edge services such as downloadable books, coffee service, and free wireless access for those who bring their own laptops to the library. The current population of the City of Tigard is 45,500. The library's service population is larger than the population of Tigard alone. Page 7 of 34 Since moving in to the new building, which is over three times larger than the old building, the library has seen a 24% increase in circulation and a 33% increase in visits by library customers. The Library is a department of Tigard city government. Library services are planned, managed, and provided by 34.2 full time equivalent (FTE) staff members. A seven person citizen Library Board advises the City Manager and City Council regarding library policies, budget, facilities and community needs in support of providing quality library service. The function of the Library Board is established in the Tigard Municipal Code (2.36.030). The library's FY 2006/2007 operating budget is Operating $2,819,251. The expenditure break down is shown by the 6% pie chart to the left. The source of the operating budget is Lib Mtls the City's General Fund. The annual operational budget 13% for the Library is funded by the City General fund and redistributed tax dollars from Washington County. The funding the City receives from Washington County is based on a formula. This formula each year determines the amount of funding each public library in Washington Staff County receives from the Washington County Library 81% Cooperative System (WCCLS). Administration 12% The library is organized into four divisions. The pie circulation chart to the right shows the percentage of the budget 29° allocated to each division. Administration (12%) is responsible for overseeing Readers' Svcs library operations and managing the library's 45% volunteer program and public information activities. Technical Svcs 14% Readers' Services (45%) is responsible for selecting and managing library materials, providing professional assistance to library customers in using the library's collections and services, accessing resources beyond the library through arranging for loans from other libraries, and developing and producing programming for children, teens, and adults. Technical Services (14%) is responsible for ordering, receiving, cataloging, and processing books and other library materials, maintaining the database of library holdings information, and mending damaged materials. Circulation (29%) is responsible for checking materials in and out, answering customer questions about library facilities and programs, issuing library cards and collecting fees and fines, processing materials delivered from and returned to other libraries, finding requested materials (holds) in the library's collections, maintaining the database of borrowers' records, and reshelving returned library materials. Page 8 of 34 FINDINGS & RECOMMENDATIONS Value for Resident Investment Efficiency and Effectiveness Citizens and policy makers want accountability from the service providers in which they invest taxpayers' money and from whom they receive public services. They also want to understand what they are buying with their investment. They want service providers to be willing and able to tell them what they do, how they do it, and how much it costs. They want to feel confident that the service is being provided in a cost effective manner. Management literature often makes the distinction between "effectiveness" which is doing the right thing and "efficiency" which is doing things right.2 Too often the jump is made immediately to efficiency before contemplating what effectiveness means. Determining the Right Things to Do According to the library's strategic plan, Mapping the Future: The Tigard Public Library's Strategic Plan 2005-2010, the library's mission is as follows: The Tigard Public Library serves the Tigard community by promoting reading and providing access to materials in all formats to meet residents' informational, cultural, educational and recreational needs. The Library fosters lifelong learning and provides an array of programs and services to encourage the development of well-rounded citizens. This mission is complemented by the library's values statement: Respect a variety of viewpoints and opinions and make them available to the public in the interest of promoting a healthy democracy. Encourage library users to become comfortable in using information in a wide variety of formats and instruct them in using new technologies for information gathering. Assist patrons in finding the information they want, when they want it and in a form that is most useful to them. Develop partnerships with the community to ensure that library services truly respond to the needs and desires of Tigard residents. During the strategic planning process which resulted in Mapping the Future, citizens assisted the Library Board and library managers and staff in identifying four service priority areas: Peter F. Drucker, Management: Tasks, Responsibilities, Practices (New York: HarperBusiness, 1993), 45. Page 9 of 34 • Current Topics and Titles: The Tigard Library helps fulfill the community's appetite for information about popular cultural and social trends and their desire for satisfying recreational experiences. • General Information: The Tigard Library helps meet the need for information and answers to questions on a broad array of topics related to work, school and personal life. • Commons: The Tigard Library provides an environment that encourages people to meet and interact with others in their community and to participate in public discourse about community issues. • Information Literacy: The Tigard Public Library helps address the need for skills to find, evaluate and use information effectively. These statements provide a picture of what the library is trying to accomplish, based on citizen input. How is the Library Doing? Several tests can be conducted to ascertain whether or not the library is meeting its effectiveness goals: • Does the library develop an annual plan, as reflected in its annual budget, which correlates with the goals and objectives articulated in its strategic plan? Yes, the budget and the effectiveness measures in the budget are clearly linked to the strategic plan. • Do the library administration and division managers use the plan or is it simply placed on the shelf? Yes, the plan is used and referred to by the library director and her managers. While not all objectives (which are specific measurements associated with goal achievement in the planning model used)3 carry the same weight and some have been adjusted, based on annual service priorities and available resources, they are clearly used as the basis for program development and evaluation. • Are the effectiveness measures in the budget document being met? Effectiveness measures are developed and tracked as part of the City's annual budget process. The library prepares effectiveness measures for each division of the library. Tigard Public Libra Effectiveness Measures FY 2004- FY 2005- =Bd FY 2007- 2005 2006 2008 Actual Actual Projected Libra Administration Patrons who rate overall Library service as good or excellent % 88% 90% 90% 90% 3 The Tigard Public Library used the Public Library Association planning model, Planning for Results, as the basis for its strategic plan. This model, fully explained in the book The New Planning for Results (ALA, 2001), defines an objective as "The way the library will measure its progress toward reaching a goal." Page 10 of 34 FY 2004- FY 2005- FY 2006- FY 2007- 2005 2006 2007 2008 Actual Actual Budget Projected Volunteers rating their experience at the Library as satisfying % 91% 93% 95% 95% Staff rating volunteers as critical to the success of the Libra % 95% 95% 95% 95% Increase in annual circulation 20% 30% 30% 30% Weekly open hours 50.5 54-58 55 62 Libra Readers' Services Increase in service interactions 29% 1% -10% 2% Increase in Youth Services program attendance % 32% -21% 35% 5% Increase in Summer Reading Program registrants % 3% 78% 2% 5% Increase in adult program attendance % 57% 0% -11% 11% Increase in computer class attendance % 471% 125% -18% 9% Increase in public computer use 186% 42% 8% 8% % of library patrons who rated reference service good or excellent 76.4% 77.3% 78% 78% Libra Technical Services Average number of days between orders being submitted and being laced 2 2.5 3 3 Average number of days between order being received and item being ready for circulation 33 36 40 35 Staff rating of services provided by Technical Services as good or excellent % 100% N/A 100% 100% Libra Circulation Materials checked out on self- checkout machine % 25% 6% 10% 20% Materials returned to shelf within 48 hours % N/A 85% 85% 85% Library patrons who rated service received as "good" or "excellent" at the Check Out Counter % 85% 90% 91% 92% Note that some measurements were impacted by the library's move to its new building in August, 2004. • Are Tigard residents and library users satisfied with the services provided? Yes, library residents indicated in the 2006 Community Attitude Survey conducted by Page 11 of 34 Riley Research Associates, that they were very satisfied with library services by giving the library an 8.9 mean rating out of a possible 10. In fact, 43% of the survey respondents gave the library a 10 out of 10 rating. The library rated the highest of any city service surveyed. • Are library users satisfied with the library materials and services provided? Yes! For six years the Tigard Public Library has conducted non-scientific user surveys by distributing surveys to library users in the library, and through making the survey available through Cityscape and the library's webpage. The survey is made available in both English and Spanish versions. In 2006, 2,325 people returned surveys. The table below summarizes key findings. Survey results are compiled (comments run to 88 pages) and analyzed by library managers and used as the basis for changes in services and policies. Summary of 2006 Library Survey Frequency of use At least once a month 83% Is the Library Serving Your YES 97% Needs? NO 3% Age of Users 18 or younger 15% 19-60 68% 61 or older 17% Rating of Availability of Internet Good to Excellent 61% Computers Don't Use 32% Rating of Services of Checkout Good to Excellent 93% Desk Don't Use 3% Rating of Services of Reference Good to Excellent 77% Desk Don't Use 20% Rating of Services of Children's Good to Excellent 49.48% Room Don't Use 49% Rating of Library Web Page Good to Excellent 59% Don't Use 30% Page 12 of 34 Return on Investment A number of studies have been conducted over the last several years designed to determine the economic impact of public libraries in their communities.4 One of the most recent and comprehensive was conducted by the public policy and taxation research firm of Levin, Driscoll & Fleeter for nine public library systems in southwestern Ohio. The economic benefits study, Value for the Money: Southwestern Ohio's Return from Investment in Public Libraries, released in June, 2006, provides a solid methodology for quantifying the economic return from library services. The researchers were scrupulous in developing a conservative valuation approach that would provide a fair statement of the direct benefits that a local community receives from its public library. Direct Benefits: 4 to 1 Return on Investment Noting that public libraries are similar to other municipal services such as parks, schools and police protection because their benefits serve the residents who live within the services area of these public goods, the researchers selected the "return on investment" approach to their economic analysis. This approach estimated the value returned to a community for each dollar invested by the community. Of the various methods available for determining libraries' value, the "consumer surplus" method was chosen as the most accurate and appropriate. The consumer surplus method refers to actual costs of counterparts to library services in the local marketplace. In FY 2005/2006, the residents of Tigard invested $2,819,251 in General Fund monies to provide library services. Using the approaches and derived values of the Ohio study, the direct benefits (the value of a loaned item or a service such as a program or computer training) of the services provided by the Tigard Public Library can be computed.5 Library Service Estimated Value Circulation $4,237,545 Reference Services $2,474,326 Computer Use $817,440 Computer Training $3,150 Programs $21,090 TOTAL $7,532,462 Computations based on FY 2005/2006 statistics. This represents a Return on Investment of $2.67 for every $1.00 tax dollar invested in library services.. The application of a conventional economic multiplier raises the total benefit for library services in Tigard to $11,218,848 or a total return of $3.98 for every dollar invested. The "household consumption multiplier" is used because the library materials and services provided by the library frees up $7.5 million for households to spend on other items, activities, or services.6 Although other library studies have attempted to quantify the impact of public libraries on patronage and spending at local businesses and the benefits businesses, job seekers and personal investors receive from their use of library services and resources, no attempt is made here to do that. However, it's important to 4 The Library Research Services at the Colorado State Library provides links to these studies at their website http://www.irs.org/topics.asp#econ2. 5 The full report, Levin, Driscoll & Fleeter, Vahie for Money: Southwestern Ohio's Return from Investment in Public Libraries (Columbus, 2006) which includes detailed explanations of the formulae used and the basis for them, can be found at http://91ibraries.info/. 6 The multiplier of 1.4894 was used, the same household consumption multiplier used for the Ohio study. Page 13 of 34 note that there is tremendous value derived from the use of the information provided by library materials and services. For example, a library customer could both save the cost of purchasing expensive investment tools and profit from making a successful personal investment based on the information gleaned from the tools. A job seeker could use the library as a place to research job openings using the library's public computers, borrow books on resume writing and job interview preparation, and research the employer's financial statements using print and online reference sources, with a librarian's assistance. A book about installing a wireless network could save a local business owner the cost of hiring someone else to do it or the time lost if the business owner tries to do it without adequate information. There is no method available to estimate the value of the information or entertainment provided by library materials. However, the fact that library materials are heavily used (circulation per capita is 12, well over the national average of 7.5) and that library customers are so overwhelmingly satisfied with the library appears to imply that they receive value from them. Indirect Benefits The Tigard Public Library also provides a number of c I p services to Tigard residents that cannot be readily quantified. In economic theory there is the concept of externality, the idea that activities have spill-over or side-effects. Some externalities can be negative (such as pollution caused by a local rendering plant) or ' positive. The precept behind public support of libraries is that they have a positive external effect. As the Ohio study notes "Some of these externalities include improvement in the level of literacy, deepening of job skills related to the ability to use information, promotion of understanding and tolerance among diverse groups in the population, and an overall enhancement in the level of civility and cultural awareness in society. In addition, the fulfillment of the library's role in the education of the public fosters an informed citizenry and promotes the republican form of government..."7 The many programs that the library provides are an example of the positive externalities related to the library's role in the community. Programs and activities for children include weekly programs for babies, toddlers and preschoolers, and family story times and pajama story times. Storytellers, puppeteers and musicians provide performances and there are book discussion clubs for kids, movies and crafts and even a chess group. The Summer Reading Program keeps reading skill levels up during the summer months and instills a love for reading for pleasure and personal fulfillment. Special classes and workshops are provided for teachers, caregivers and parents. A full slate of programs are also offered for teens and include movies, a book club, and poetry nights as well as informative workshops on choosing a college. Adults are offered cultural and educational programming such as the Portland Art Museum lecture series, history and poetry programs, book discussion groups, computer classes and an English conversation group for those who wish to practice their English speaking skills. Programs for seniors have included such timely topics as reverse mortgages, protecting financial assets, and making decisions about changing living arrangements. All of these activities are designed to promote reading and learning and are consistent with the library's role as a community center, a place where people can come together to socialize, learn, and discuss issues 7 Levin, Driscoll & Fleeter, 25. Page 14 of 34 of community concern. There is not way to assign a direct benefit to these activities, but the impact on the community is enormous and clearly valued by community residents. Doing Things Right Comparisons There are no national standards for public libraries. The last formulaic national standards (e.g., two to four books per capita, as a book collection standard) were published over forty years ago. They were abandoned because public librarians felt that the minimums were often interpreted as ceilings rather than floors and because they didn't take into account differences among communities. Standards were replaced by community needs based planning models. As the Foreword to the first book on the new approach to public library planning declared "...what public librarians need now are not rules for sameness but tools which will help them analyze a situation, set objectives, make decisions and evaluate achievements."s Since then, public library planning has evolved through five models, each more focused than its predecessor on assessing community needs, on not taking on more than can be realistically achieved, and on matching resources with service goals. While national standards are lacking, an array of statistics are collected by each state library and reported to the United States Department of Education. Many libraries also contribute to a publication of the Public Library Association, The Public Library Data Service Statistical Report (PLDS). Many library managers use the information in this publication to develop a sense of how their library compares to other libraries on the basis of any number of factors. A software product called Bibliostat Connect provides access to all statistics collected by the state libraries, the national statistics, and a few other statistical sources. Bibliostat Connect provides a researcher with a convenient way to collect, compile, and analyze public library statistics. At the same time that numeric standards were being eliminated at the national level, many librarians felt that they did need standards that would represent the best professional thinking on what is necessary to provide quality library service. Many states have developed such standards at the state level and in many states the standards are linked to the award of monies for local, regional or system library services. The Oregon Library Association appointed a task force in 1987 to develop standards for Oregon public libraries. The latest version was approved by the Public Library Division and the Oregon Library Association in 2000. The availability of all this information means that the Tigard Public Library can be analyzed through a number of lenses: national, state, and regional. While such analyses can be informative, it should be remembered that every library's local situation is different. What each community needs and wants is different, local values and standards are different, and local capacity to pay for services is different. As public library planners have said throughout the evolution of the planning process, "excellence must be defined locally-it results when library services match community needs, interests, and priorities.s9 8 Mary Jo Lynch, "Foreword" in a Planning Process for Public Libraries (Chicago: American Library Association, 1980), xii. 9 Sandra Nelson, The New Planning for Results: A Streamlined Process (Chicago: American Library Association, 2001), 1. Page 15 of 34 National Comparison The Public Library Data Service Statistical Report, compiled annually by the Public Library Association, provides comparable information on a number of different measurements used by public libraries. Because the Tigard Public Library doesn't contribute to the report, information from the Oregon Library Statistical Report was used and compared to medians provided for libraries within the Tigard population grouping (99,999 to 50,000). The 2006 report contains data for fiscal year 2005. One hundred eighty- two public libraries within the Tigard population grouping reported. The table below provides a number of statistics (data elements) which are commonly collected by public libraries. Fiscal 2005 statistics are provided for Tigard Public Library. The arrows in the column on the far right indicate whether the Tigard Public Library is above, below or at the median when compared to public libraries in its population grouping. "Turnover rate" is an important statistic that shows how relevant a library's collection is to the community it serves. It is similar to "turn on inventory" and is computed by dividing the annual circulation of materials by the total number of holdings of units). "Total ILLs Provided and Received" refers to interlibrary loans made to other libraries and received from other libraries. Tigard Public Library Compared PLDS Nationally 2005 Data Elements 2005 Median # of FTE with MLS Degree 12.7 # of Registered Borrowers 31,759 # of Total Paid Staff FTE 33.2 # of Total Units 125,906 Circulation per Capita 11.54 Circulation per FTE 21,928 Percent of Ex sent on Libra Materials 13.97% Population of The Legal Service Area 63,110 Reference Transactions per Capita 0.82 b Registered Borrowers as % of Population 50% Staff Expenditures as % of Operating Budget 81% Total # of Reference Transactions 51,710 Total Circulation 728,003 Total Collection Expenditures $312,790 $4.96 Total Collection Expenditures per Capita Total ILLs Provided 109,313 Total ILLs Received 103,954 Total Operating Expenditures $2,238,427 Total Operating Expenditures per Capita $35 Total Staff Expenditures $1,816,690 Turnover Rate 5.78 Visits 343,390 Visits per Capita 5.44 Page 16 of 34 State Standards Standards for Oregon Public Libraries: 2000 provides a touchstone against which local library managers and staff, local decision makers and local residents can measure themselves. 10 The standards address • governance • access • staff • materials and services • technology • community involvement • facilities Standards are articulated for three levels: Threshold, Adequate, and Excellent. Tigard Public Library is at the adequate level for most measurements and at the excellent level for staffing level, the percentage of staff with a Masters in Library Science degree, technology, and for the size of its facility. It is at the threshold level for the size of its collection and the number of hours open per week. The Tigard Public Library is currently open 55 hours a week. To raise itself to the adequate level, would require being open 60 hours a week. The excellent level for a library serving the size population Tigard serves would be 75 open hours a week. Regional Comparisons The City of Tigard often compares itself or its departments against seven other jurisdictions: Beaverton, Gresham, Hillsboro, Lake Oswego, Milwaukie, Oregon City, and West Linn. Library services are provided to Gresham by the Multnomah County Library so that comparable is not shown on the table below. Lake Oregon West Tigard Beaverton Hillsboro Oswego Milwaukie City Linn MEDIAN Population Served 64,041 115,130 153,791 43,201 30,127 52,635 25,892 52,635 Borrowers as % of Pop. 50% 61% 37% 75% 60% 44% 61% 60% FTEs 34.2 46 55.16 34.2 12.63 6.01 16.15 34 Librarians 12.5 14.4 16.88 12.1 4.50 1.4 8.15 12.1 Librarians as % FTE 37% 31% 31% 35% 36% 23% 50% 35% Total staff per 1000 population 0.53 0.40 0.36 0.79 0.42 0.11 0.62 0.42 Hours Open Per Week 55 49 54 65 52 23 53 53 Circulation 850,326 1,711,923 1,805,630 1,403,048 542,635 489,898 632,573 850,326 Circulation per Capita 13.28 14.87 11.74 32.48 17.93 9.31 24.43 14.87 Reference per Capita 0.78 0.94 0.52 1.33 1.18 0.32 0.97 0.94 Holdings per Capita 2.15 2.38 1.84 4.48 3.66 2.20 4.19 2.38 Visits per Capita 5.83 5.52 4.29 8.48 6.50 NA 11.92 6.16 Program Attendance per Capita 0.21 0.29 0.09 0.25 0.25 0.02 0.60 0.25 Turnover Rate 6.17 6.24 6.38 7.25 4.92 4.23 5.83 6.17 Operating Expenditures per Capita $37.17 $40.13 $33.54 $70.06 $51.47 $12.89 $46.70 $40.13 Personnel Expenditures per Capita $29.87 $27.22 $21.38 $48.87 $27.83 $8.63 $38.07 $27.83 Personnel Ex as % of Operating 80% 68% 64% 70% 54% 67% 82% 68% 10 A copy of the standards can be obtained at http://www.olaweb.org/pld/standards_intro.html. Page 17 of 34 Lake Oregon West Tigard Beaverton Hillsboro Oswego Milwaukie City Linn MEDIAN Materials Expenditures per Capita $5.40 $4.04 $2.61 $9.90 $3.43 $0.59 $4.05 $4.04 Materials Expenditure a % of Operating 15% 10% 8% 14% 7% 5% 9% 9% Volunteers, Number of 410 296 373 353 64 35 123 296 Volunteer Hours 14,326 13,835 15,596 10,481 5,816 2,039 2 609 10 481 Volunteer FTE equivalents 6.89 6.65 7.50 5.04 2.80 0.98 1.25 5.04 Paid staff FTE per volunteer FTE 4.97 6.92 7.36 6.79 4.52 6.13 12.88 6.79 Statistics shown are for FY 2005/2006 as reported to the Oregon State Library. The population of Tigard's service area is slightly lower than the figure provided in the Introduction to this report because it is from the previous year. For most measurements, the library is at or near the median for the seven city libraries. However, comparisons should be made judiciously, starting with questions rather than conclusions. For example, the higher percentage of the operating budget allocated for library materials is a positive finding. For decades the rule of thumb has been to strive for 15%, which Tigard has achieved. However, as salaries and benefits have increased and operating costs like utilities have gone up, most libraries have not been able to come close to this level, as the table indicates. Budget composition and local requirements will also influence proportions (for example, many facilities and operating costs are not charged to the Tigard Public library by the city), so conclusions cannot be reached without drilling much more deeply. All a comparison like this can really do is provide a starting point for questions and additional data gathering. Local Trends The Tigard Public Library has undergone a number of changes over the past six years that are important to note. In August of 2004, the library moved into a new library building, over three times larger than its previous building. With this new building came increased usage, more service points and much more floor space for employees to serve and monitor, more public computers to manage (from 13 public computers in the old building to 65 in the new building), and many more library visitors. The table in Appendix A provides a full picture of the changes that have taken place over the last six years. The table below shows the changes in a number of key service indicators. % Change Data Elements in 6 Years # of FTE with MLS Degree 56% # of Registered Borrowers -26% # of Total Paid Staff FTE -2% # of Total Units 23% Circulation er Capita 17% Circulation per FTE 46% Percent of Operating Expenditures spent on Libra Materials 12% Population of The Legal Service Area 22% Public Service Hours -13% Reference Transactions per Capita -4% Registered Borrowers as % of Population -39% Staff Expenditures as % of Operating Budget -1% Total # of Public PC Uses 201% Total # of Reference Transactions 16% Total Circulation 43% Page 18 of 34 % Change Data Elements in 6 Years Total Collection Expenditures 61% Total Collection Expenditures per Capita 32% Total Hours in Typical Week Open -20% Total ILLs Provided 197% Total ILLs Received 156% Total Library Program Attendance per Capita -9% Total Operating Expenditures 44% Total Operating Expenditures per Capita 18% Total Staff Expenditures 43% Total Staff Expenditures per Capita 18% Turnover Rate 16% Visits 49% Visits per Capita 22% At the same time as residents and staff were enjoying their new building, the library suffered a reduction in hours because of the failure of the countywide levy. This meant that library customers had fewer hours within which to make use of library services and collections. Despite the reduction in hours, circulation continued to increase. Reference use, while up overall, has declined with the reduction in hours, since people can't ask for assistance when the library isn't open. As will be noted in the next section, the number of reference transactions is also influenced by the new ways that people are using public libraries, with the variety of information services that are now available through the internet and the increased number of computers available to many users at home, work and school. Workflow and Work Processes Review Work flow, work processes and materials movement was reviewed and observed in the three library divisions that provide direct public services: readers' services, technical services, and circulation. The fourth division, library administration, provides overall direction and management of library services and direct management of the library's volunteer services and public information programs. These activities were not within the scope of this study and will be referred to only in general terms and as they impact the direct delivery of library services. Staffing Allocations For Fiscal Year 2006-2007, Tigard Public Library staff are allocated to the divisions as follows: FTEs Percentage People Administration 3.3 10% 4 Readers' Services 12.2 36% 14 Technical Services 6.2 18% 8 Circulation 12.5 37% 18 TOTAL 34.2 100% 44 Page 19 of 34 As part of the budget planning process, each division develops workload and effectiveness measures. The effectiveness measures have already been presented. Workload measures will be identified and reviewed as part of this section of the project report. Library Administration Library Administration is responsible for overseeing the operations of the library and for managing the volunteer program and public communications. This division is staffed by a Library Director, an Executive Confidential Assistant, a 20 hour a week Information Coordinator, and a 32 hour a week Volunteer Coordinator. This staffing level is very appropriate for a library the size of the Tigard Public Library and for the activities performed by this division. Libra Administration Workload Measures FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2007-2008 Actual Actual Budget Pro'ected Population served 68,143 69,000 65,310 66,000 (includes non-City residents Annual Visits 360,000 380 000 400,000, 410-1000 Number of volunteer 13,444 14,325 15,000 15,500 hours per year Value of volunteer $235,942 $258,423 $277,500 $294,500 hours Heavy Use of Volunteers It should be noted that the volunteers who assist paid staff at the Tigard Public Library are an essential rather than a supplemental part of the library's operation. Many libraries have turned to volunteers to assist them, as budgets have been cut or have remained stagnant while demands for services have increased. The Tigard Public Library's use of volunteers is at the far end of the utilization spectrum. Volunteers carry a major part of the load in the provision of core activities such as checking books in, shelving returned books and other materials, searching the shelves for requested materials, and processing and mending materials. The hours volunteered are equivalent to nearly seven full time equivalent (FTE) positions, which means that there is a volunteer for every five paid FTEs. This utilization rate can be compared to the Sonoma County (CA) Library which is also heavily reliant on volunteers which has a ratio of 1:7 or the Multnomah County Library, which also has an extensive volunteer program, where the ratio is 1:15. Many of the other seven regional comparables have also experienced tight budgets and are also finding their use of volunteers is increasing. The use of volunteers is clearly a highly regarded library and City value. It is a practice that must be carefully watched and monitored, however. While it is wonderful to have citizens donate their time and effort, it does take paid staff time to train, schedule, plan and lay out work, and ensure quality control. Many volunteers work in two hour shifts, which means there is time lost to starting up and finishing up various activities and the need for numerous communications between volunteers and paid supervisors. The pace of work performed also appeared to be noticeably slower than in other libraries. Volunteer A, who works a two hour shift once a week, does not have the same sense of urgency as an employee who will face the same mound of unfinished work the next day if it isn't completed. As is typical, many volunteers are older than the average paid staff member and some also have physical disabilities that limit 11 One of the goals enunciated by the City of Tigard Vision Task Force states: "The City will maximize the effectiveness of the volunteer spirit to accomplish the greatest good for our community." Page 20 of 34 their pace of work. Volunteers were also observed taking the time to peruse or read materials, a practice which paid staff are not allowed to engage in but which is difficult to dissuade someone who is donating their time from doing. On the other hand, there is no question that volunteers are essential to the successes of the Tigard Public Library. Good use is made of both individual donations of time and groups who wish to donate blocks of time or work on a one-time project and heavy use is made of individuals who are assigned to do community service. Management Excellence It should also be noted that the library director and division managers are dedicated, focused managers who are aware of trends and innovations in public library service, knowledgeable about the community they serve, and very conversant with the workload and effectiveness measurements in their divisions. The TPL managers, unlike managers in many public libraries, truly function as managers: they monitor workload and various performance and effectiveness measures, they write comprehensive monthly reports, and they perform personnel evaluations. These are typical expectations of managers but many public library managers do not effectively carry out these functions either because their time is stretched so thin or because the expectation has not been set that they will or they are not held to it if set. Several innovations are worth noting. All employees are now involved in "shadowing" projects so that they can observe what co-workers do. This is not designed as cross-training but as a method to increase understanding and appreciation among staff members. Short, ten to fifteen minute "stand around" meetings are held each morning. All staff attend and quickly learn about major activities in the building, any absences or activities that will take staff out of the building, projects or issues that need to be addressed, and one or two pieces of good news about accomplishments or exemplary service interactions. Persons in Charge (PICs) are assigned for every open hour, so staff always know who to turn to if there is an emergency or a question or customer interaction that requires a higher level manager. PICs also handle building issues, monitor the facility, ensure appropriate usage, etc. White boards are used as communication devices throughout the building. This is particularly useful, because changes in policies, procedures, work assignments and so on have to be communicated to a large number of staff, volunteers, and hourly employees. Constraints on Public Communication and Information An area of constraint mentioned by some library managers and staff was the library's web presence. This presence is managed by the city, as it is for all other city departments. Library staff who mentioned this said that they would like a more dynamic, interactive web page. The library's webpage has a "second generation" brochure ware look to it. Basic information is provided and hours and a link to the library catalog are prominently displayed, but the page is very dense and cluttered. The page does nothing to invite a viewer to use the library or its services. As librarians contemplate the Web 2.0 and Library 2.0 world they desire websites that provide the possibility of substantially more interaction and communication between users and library staff and users and other users. Features such as blogs, wikis, podcasts, and RSS feeds are becoming more common on library and local government pages. A more sophisticated web presence requires additional resources, however. Four distinct skill sets are required for modern website design and development: 12 12 Information provided by Jim Barrentine, President, Information Partners, Inc., a consulting firm specializing in library technology. Mr. Barrentine recommends the websites of the Phoenix Public Library, Maricopa County Library, Hennepin County Library, Las Vegas Clark County Library District, and the Pikes Peak Library District as examples of good library websites. While these are much larger libraries, the design principles still hold. Page 21 of 34 • Information Architect - this is the person who knows how people use electronic information and how to design websites that are easy to navigate for both the novice and experienced user • Content Provider/Coordinator - this person provides the actual content that appears on the website • Web Developer - this is the person who turns the information architects' design and the content into the actual website • Web Programmer- most websites are now interactive with a database. To achieve this requires programming skills to access the database and place the retrieved information in the appropriate place on the web page. Plans for the city's website may involve developing the kinds of interactivity that the library staff is requesting. Library representatives should be active participants in any website planning and ongoing development discussions and decision-making. They should advocate for usability testing involving citizens and library users to ensure that the website and interfaces (such as to the library catalog and electronic databases) are easy to use and permit users to find the information they are seeking. Readers' Services This division is responsible for selecting and managing all library materials, providing professional assistance using the library's collections and electronic resources, accessing additional resources through borrowing materials from other libraries (interlibrary loan), and providing children's, young adult, adult, and intergenerational programming to enhance lifelong learning and recreational experiences. This division is staffed by a Division Manager, two Library Services Supervisors (one each for adult and youth services), a Senior Librarian, 6.7 FTE Librarians, and 1.5 FTE Senior Library Assistants. The Readers' Services division provides staffing for three public service desks, which are located in the children's, adult and teen areas. The teen desk is only staffed during certain hours. The adult desk is usually staffed with two librarians while the children's services desk is staffed with one or two librarians, depending upon the time of day, whether or not there are programs or school visits, etc. The division's staffing level is at a basic level for the size building, number of public service desks, and mix of activities that are carried out. Readers' Services Workload Measures FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2007-2008 Actual Actual Budget Projected Number of service 78,391 78,581 70,623 72,035 interactions Interlibrary loan 1,956 2,006 1,479 1,552 transactions Youth Services 304 384 330 346 programs Youth Services 15,199 11,990 16,218 17,028 program attendance Summer Reading 1,014 1,805 1,846 1,938 Program registrants Contacts with children 6,558 1,883 807 1,008 in school and childcare Adult programs 34 37 42 56 Page 22 of 34 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2007-2008 Actual Actual Budget Projected Adult program 1,008 1,009 894 994 attendance Computer classes 43 84 84 56 Computer class 297 669 546 596 attendance Public computer use 76,114 108,133 117,414 126,807 sessions Changing Nature of Public Services Work Reference and public service work has changed considerably in public libraries over the last ten years. With the advent of the Internet, widespread availability of computer resources and Internet connection at home, school, and work, and the development of exceedingly user friendly services like Google, libraries have seen a drop in the number of traditional reference and information questions being asked at public service desks. At the same time, the need and desire for access to computers and Internet resources has not abated but has increased (the use of public PCs has increased over 200% in the last six years). Most users simply expect that the public library will have a number of PCs, with fast internet connectivity and a number of programs and services available for their use. A PC with fast connectivity is seen as a utility: I have well functioning plumbing available at home, work, school, etc., and I expect the same at the library. While users of traditional library services and materials may lament this development, it is pointless to fight it. It must, instead, be well managed. Libraries who have conducted studies regarding the amount of time that reference personnel now spend on computer related activities (scheduling, assisting with use, handling equipment problems, explaining how to s use electronic services, etc.) have found that it can be -f as high as 40-45% of their time. This is a workload figure that has not traditionally been gathered and for which there are no uniform definitions or methodologies for collecting. The Tigard Public Library has been proactive in addressing this workload by acquiring and installing PC reservation and timing software and a printing card vend machine, thus reducing the impact on public services staff. Some additional work should be done to make the PC reservation module fully implemented, but that requires coordination with WCCLS and the vendor, so has not yet been completed. Public access computers have brought new users into the library, particularly those who do not have access elsewhere. These users are often not familiar with conventional modes of behavior in public library settings and can sometimes present behavioral problems that must be dealt with my library staff, supervisors, and managers. In most cases there are not behavioral problems but there are issues that arise when scarce resources must be rationed and managed. Developing and enforcing use policies, issuing temporary cards so users can log into the computers, managing the print vend machine, selling disks upon which materials can be saved, developing and maintaining adequate security, and safeguarding equipment and components are just a few of the management issues that must be addressed. Page 23 of 34 While these changes have been taking place, the demand for programming for all age levels has not declined. In fact, as the user population ages, the demand for services such as book groups, author programs, programs on how to effectively use computers and the Internet, is increasing. Readers' advisory services (recommending good books, DVDs, or books on CD) is also growing, as library customers realize that trained library personnel can assist them in working through the abundance of informational and leisure options available to them to find the title that is just right for them. Readers' Services keeps and analyzes the kinds of interactions they have at their desks and knows that about 55% are now reference or informational and the other 45% are directional, related to the use of public PCs, or informational at a level that doesn't require extensive expertise or the use of sophisticated reference resources. There are staffing implications for this change in transaction mix. Consideration is being given to developing senior library assistant positions that could assist librarians at the reference desk. Staff in these positions would be able to handle the directional and less difficult information questions and could assist patrons with public PC issues. This type of staffing is a trend in public libraries, as they see their traditional reference use fall and new kinds of interactions and transactions presented to them. Readers' Services is also experimenting with "roving reference" which means providing reference service by moving out from behind a desk and directly asking people if they need help on the library floor. Time is now structured into the adult reference desk schedule for periodical visits to the floor. Libraries that have adopted this service strategy have found that their reference transaction numbers have gone up. Most people don't ask for help in the library. However, when help is offered to them in the stacks or at their table they often do have questions that staff can assist them with answering. This concept should be developed further and integrated fully into the service delivery approaches used. Specific Assignments The Readers' Services division employees have three basic job responsibilities: to assist library customers at public service desks, to select library materials and maintain library collections, and to develop and present library programs. The Tigard Public Library is well managed in that time and assignments are structured so that these activities are equitably distributed among available staff. Desk assignments take about 50% of employees' time with the other major responsibilities and activities such as attending meetings, communicating, serving on committees, and handling special projects taking up the other half. All librarians are involved in selecting new and replacement materials, developing collections to meet community needs, and weeding out unused, outdated or worn out materials. These activities are carried out using broad policy statements concerning the types of items that will be purchased to fulfill the library's mission. Work has begun to develop a comprehensive collection development/materials selection plan and the policies to go with it. This is an important activity that is very time consuming. Every effort should be made to keep this process on schedule so that a comprehensive collection development process and plan is in place by the end of FY 2011-2012. Books and other library materials are selected and ordered according to a written schedule, with dollar amounts assigned to each selector and each order cycle. Selectors routinely analyze usage patterns and adjustments to materials allocations are made in response to usage trends. Materials budget funds are monitored to ensure that materials are selected according to plan and to make sure that the Technical Services division receives new materials in a roughly uniform way, so that they aren't overwhelmed by large influxes of new materials. Again, this can sound like a common sense way to manage this process, but many public libraries are not so well organized. Public libraries select new and replacement materials by dividing the work up among a number of staff members (as Tigard does), by centralizing the process by having only a few staff members select materials (as the Multnomah County Library does), or through some sort of combination (adult fiction Page 24 of 34 and popular audiovisual may be centralized, with nonfiction subject divided up among other staff, for example). The argument for decentralized selection is that librarians can develop in-depth expertise in their subject areas, that those who work directly with library customers can make the best selection decisions, and that selecting materials and developing collections is a primary professional responsibility (and, frankly, one that most librarians enjoy). The argument for centralized selection is that it is more efficient because fewer people are involved, that one or two selectors can provide a broad oversight of the library's collection, and that the collection development processes can be conducted in a more consistent way. There is no one right way and the approach a library takes (and many libraries swing back and forth across the centralized/decentralized continuum) should ultimately relate to the library's service philosophy, its available resources, and objective measurements of collection usage. The Tigard Public Library comes out well: circulation is high, library customer satisfaction is extremely high, and the collection turnover rate is healthy. While Tigard has a smaller collection than Oregon standards or national rankings call for, its collection is well maintained and timely. In other words, other libraries may have larger collections, but these collections could contain more outdated and little used materials than Tigard's. Every adult services librarian is expected to develop and present eight computer classes and eight other programs during each year and children's librarians and senior library assistants present a wide variety of programs targeted at all ages, infants through grade 12. These programs a specifically designed to develop and reinforce literacy skills, are based on current cognitive development and brain theories, and link precisely to strategic service plan goals and objectives. With the new structure and oversight that has come with new Readers' Services management, programming attendance levels should once again meet targeted levels. Additional Staff Needed At the current staffing level, Readers' Services is just barely able to keep up. Fewer staff or more open hours without additional staff would mean a diminution in service quality. Either the public service desks won't be staffed at current levels, there will be fewer classes and programs, or collection development will suffer. Library managers have projected additional staffing needed for the seven proposed additional open hours planned now that the WCCLS levy has passed. The projections are reasonable and will allow the library to provide services at the current level. At the current staffing level the library hasn't been able to engage in the level of outreach activities the community has asked for. In response to expressed community needs and wants, the library would like to provide additional services to community schools and day care centers and to senior citizens. There are also opportunities to collaborate more extensively with other community agencies and organizations and to work to find ways to extend services outside the physical confines of the library building. Exploring options and developing the most promising possibilities requires additional staff time. Technical Services This division is responsible for ordering, receiving, cataloging, processing and mending books and other library materials, and maintaining the library's holding information in the countywide shared catalog. This division is staffed by a Library Services Supervisor, a Technical Services Coordinator, a .5 FTE Librarian, two Senior Library Assistants, 1.2 FTE Library Assistants, and a .5 FTE Library Aide. Over the last seven years, the number of items handled has doubled while staffing has increased only about 25%. This is a typical pattern. Public libraries try to put any increases in budget into public service hours, services and library materials and look towards their Technical Services managers and staff to find innovative ways to streamline their work operations in order to handle increased workloads. Page 25 of 34 In many ways Technical Services (and to a lesser extent, Circulation) are the "factory floors" in libraries. The work done can be standardized, there is usually more control over materials flow, processes can be batched, and there are many vendor provided services and technologies that can be taken advantage of. For example, years ago clerks had to type and file catalog cards, make any corrections by hand, type, burst and file multi-part order forms, type invoices by hand and post expenditures by hand, etc. Now these processes are done electronically. Technical Services Workload Measures FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2007-2008 Actual Actual Budget Projected Orders laced 20,496 21,987 22,500 28,000 Orders received 20,708 22,714 23,000 28,500 (including standing orders New titles added to 6,775 8,444 9,500 10,100 catalog New items added 21,976 26,356 27,000 31,500 (includes periodicals and donations Materials withdrawn 9,794 14,890 11,0001 12 000 The Technical Services division is taking advantage of technology by using the Polaris acquisitions module, building selection carts with its major vendor, Ingram, and using OCLC Connexion for cataloging. Minimal vendor provided processing is obtained for some materials (book jackets and security strip), with volunteers assisting with processing most materials. Workflow and work processes are routinely reexamined and changes made as workload warrants and vendor services appear in the market. Throughput is Slowing Down However, even with this the effectiveness measures are slipping. The average number of days between receiving an item and its becoming ready for circulation is now over a month. Backlogs of materials were observed at most stages of the - Technical Services processes. Work slips were observed on December 18 showing receipt dates of October 16, more than two month's earlier. Work slips are color coded and dated once a week, so staff and volunteers can easily see which are the oldest materials. This coding and the way materials are handled necessitates quite a bit of shelving in the workroom. Volunteers assist with physical processing and mending. As with other library assignments, most work in two hour blocks, which means considerable time is spent in setting up and putting work items away. Paid staff time is spent in training, laying out work, managing work flow, communicating, and correcting the work of volunteers. While the contribution of volunteers is essential to the throughput of materials, it is not without cost in paid staff time. Page 26 of 34 Customization is Costly Public service staff have asked for a number of location codes, labels and other designators. Some materials, such as new DVDs, will be placed in the Browsing Collection initially and later recataloged and relabeled for the general collection. One staff member suggested placing nonfiction and foreign films and other less popular titles directly into the general collection and this seems like an idea worth considering. Every handling of an item and every change to a bibliographic or item record must be reviewed in terms of real (not conjectured) benefit to the library customer. Adding location codes, labels, sticker, and creating specialized collections are all forms of customization that cause additional time and expense as materials are ordered, cataloged, and processed. The greatest efficiencies can be achieved when all materials can move through one processing stream. Whenever an item has to take a detour because it must be handled differently, costs and time mount up. ~9. Circulation staff requested color coded labels to make \ it easier for volunteers to learn and remember collection locations. Again, these special labels add to processing time and to training time for both volunteers and paid staff. Customized processing also means that the library is less able to take advantage of vendor provided processing and cataloging services. Numerous labels and special local cataloging practices will either make it too costly for the vendor to provide the service or impossible for them to do so. The library loses an opportunity to cut costs and reduce time to shelf if it can't consider purchasing these services. Efficiencies Come Through Process Analysis The only way that more work can be done with the same number of staff or that increased work can be handled by the same or only slightly more staff is through analyzing work processes. Step by step procedures and forms to use in doing so are provided in Staffing for Results: A Guide to Working Smarter. 13 It appears that Technical Services has kept detailed production statistics. These should be analyzed and coupled with timing studies so that the library can determine how long it takes to perform various tasks and what the steps involved are. For example, the statistics provided indicate that it takes longer to process and catalog juvenile books than video recordings or recorded books. This is the opposite of what is found in most libraries. Careful analysis of how the work is done and the time that various steps take for various kinds of materials will provide information that can be used to streamline workflow and reduce the number of steps and times that an item is handled. This analysis will also provide information that can be used to develop cost data that can then be used to compare the cost of performing tasks in-house versus buying processing, cataloging or both from library vendors. Using vendor provided services can be a mix and match process. Many libraries purchase adult and juvenile fiction fully processed and cataloged. These materials can then be quickly finished in the library and put out for library customers to borrow within a few days. This frees library staff to spend their time on more complex cataloging and processing tasks. In an effort to balance workload and ensure that materials move through the department, library staff have been assigned categories of materials to catalog and process. This practice should be reexamined as 13 Diane Mayo and Jeanne Goodrich, Staffing for Results: A Guide to Working Smarter (Chicago: American Library Association, 2002). Page 27 of 34 processes and work flow are analyzed and vendor products are considered. Most libraries have moved to a generalist concept, so that all materials are handled by all staff members. This ensures that backlogs won't occur if someone is on vacation and that everyone is familiar with how to catalog and process the various kinds of materials that come through the department. A model approach, developed by the Phoenix Public Library, will be shared with the Library Director and Technical Services Supervisor. Phoenix knows exactly how long it takes to place an order, catalog an item, etc. and is able to both set and meet its internal standards and to make detailed comparisons between what it costs to perform various tasks and what vendors charge for various services. Recalibrate Effectiveness Measures The current effectiveness measure for moving materials through Technical Services upon receipt is not a worthy performance standard because it is much too long. It appears to be a measurement that is reported after the fact rather than used to stimulate achievement. The concept of a throughput standard should be revisited and addressed proactively by both Technical Services and staff members from Readers' Services and Circulation. Technical Services staff can't do the impossible. Expectations and requirements must be negotiated so that a reasonable standard can be developed. Other libraries have set standards such as "95% of the time materials will move through Technical Services within ten days of receipt by the department." Such a standard gives other staff an understanding of the timeframes involved so they don't inquire about materials until the timeframe has been exceeded and gives Technical Services staff motivation to develop approaches that allow them to maintain these standards. As materials budgets increase, everyone will know what the quality level has been and what it takes to maintain it so that resources can be identified to enable Technical Services to continue to meet the standards. Circulation Circulation is responsible for checking materials in and out, answering users' questions about library facilities and programs, renewing and shelving all library materials, collecting fines, issuing new library cards, reconciling patron records, and answering general questions. Circulation staff track down and retrieve lost and missing items and maintain accurate patron records in the countywide database. Circulation staff are also responsible for processing patrons' requests (reserves or holds). This division is staffed by a Division Manager, two Supervisors, 1.4 FTE Senior Library Assistants, and 7.7 FTE Library Assistants. These paid staff members are supplemented by a number of volunteers who check in library materials, search for requested materials, and shelve returned materials. The Circulation division provides staffing for three public service points: the entry point, welcome desk and the circulation desk. The entry point is staffed primarily by volunteers. This is a first point of contact for many library visitors. Material return slots are at this point and simple directional information can be provided. The Welcome Desk is where new cards are issued, the telephone is answered, guest passes are issued for public computer use, and many questions about library policies are answered. Library materials are checked out at the Circulation Desk, fines are collected or negotiated there, and holds are retrieved from shelves behind the Circulation Desk. Returned materials and materials that arrive through the delivery are processed in a work room behind the circulation desk area. For many library users, the staff and volunteers in Circulation are the first, last, and often only contact they have with library staff. Customer service is a critical feature of the work done in this division. Circulation is the "face" of library service to most users. Page 28 of 34 Circulation Workload Measures FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2007-2008 Actual Actual Budget Projected Materials checked out 728,250 850,000 918,540 1,032,891 per year Materials checked in 568,280 722,500 734,832 745,375 per year Materials checked out 14,005 16,346 17,864 19,863 per week Materials checked in 10,928 13,894 14,131 14,334 per week Materials renewed per 2,408 3,923 3,886 3,937 week Library cards issued per 131 110 130 116 week Materials checked out 1,065 981 1,300 3,973 per week on self- checkout machines Materials shelved per 10,928 13,894 14,131 14,334 week Intralibrary loans per 115 123 125 130 week crates Yearly checkout per 56,019 70,833 73,483 73,778 staff member FTE Heavy Reliance Upon Volunteers Most of the library's check in and shelving is done by - - - volunteers. Because of the large number of individuals involved in these activities, the supervisors spend much of their time managing work flow and materials flow in the circulation work room. Volunteers work mostly in two hour shifts, so there is quite a bit of coming and u ' going and communication that must take place as people perform various tasks. The supervisors must ensure that the materials continue to move and that necessary tasks are being done. Most volunteers only work once a'` week, so the kind of continuity found with regular employees is missing. Managers and staff have devised a number of techniques, often involving labels and color, codes to assist volunteers. As in the Technical Services work area, this necessitates considerable space for materials (shelf space in Technical Services and book cart space in Circulation). The circulation work room is large and would be the envy of many libraries, but it feels very cluttered and crowded because of the number of carts, work stations, and perimeter shelving units (for overflow shelving) housed there. Volunteers check in items, then takes stacks to the appropriate carts, which are labeled with shelving locations and arranged around the room. This careful sorting on to carts is a time consuming activity that interrupts the flow of check in and takes time as people walk to and from the carts. The Circulation Manager has suggested the use of a sorter (which could be a paid or volunteer position) to move materials Page 29 of 34 from the check in stations to the carts, sorting as they are placed on the carts. This is an idea that should be considered but in the context of a total analysis of work processes and work flow within the workroom. As in Technical Services, Staffing for Results should be consulted for techniques and work forms to use to carry out this analysis. Circulation Work Has Also Changed The type and mix of work in the Circulation Division has changed as it has in Readers' Services. With the shared online catalogs, library customers are able to place holds (requests) on items which are not currently available at the Tigard library or from any other library in WCCLS. A daily courier service delivers and returns items among the thirteen WCCLS libraries. Being able to request items which are out and items from other libraries is a wonderful service and tremendously popular. About 15% of the total circulation is now generated by Holds. Tigard is a large library, with a number of collection locations, so locating requested items can take quite a bit of time. There are from 200-300 items on each daily holds list. Workflow has been reconfigured to ensure that the list is completed each day. If an item isn't found, a second search is made (usually by an experienced, paid staff member) and ultimately a third search will be made before an item is declared missing. After items are retrieved from the shelves, they must be processed so that slips can be printed out with the borrower's name, and then filed on shelves. A clever change in the filing process has just been made so that staff are facing towards rather than away from the Circulation Desk while shelving or retrieving holds. Unfortunately, a certain amount of this work goes to waste, as staff estimate that approximately 10% of holds are not picked up. Libraries are struggling with this phenomenon and a certain percentage will have to be accepted as the cost of business. However, this percentage should be tracked and some efforts made to communicate positively with library users about how they can manage holds by cancelling those they no longer use, etc. The entire holds process has become a significant part of the work done by Circulation, but standardized, meaningful statistics have not yet been developed or consistently collected and reported. The difficulty of doing this is magnified by the cooperative arrangement among WCCLS libraries and the shared database. The Tigard Public Library is working on finding the most accurate way to measure this workload and plans to develop workload and effectiveness measures around the holds service. Locating holds, processing delivery materials, searching for missing items, and processing a number of other lists related to managing the library collection are all very detailed, time consuming activities performed by Circulation. There are opportunities to analyze these processes and continuously question the utility of processing various lists. There are always tradeoffs. Close stewardship of the collection may have to be given up in favor of other activities that are more closely related to customer service, such as reshelving materials in a timelier manner. Reshelving Standard The reshelving standard currently is to reshelve 91 % of returned materials within 48 hours. Besides volunteers, on call library aides and regular staff also shelve materials. There are 1.5 FTE on call library aides budgeted. This level is not sufficient to meet the current or projected standard of 91-92% reshelved within 48 hours. By way of comparison, the Hollywood Branch of the Multnomah County Library employs 5.25 FTE shelvers to handle the equivalent circulation level. Continuous process improvement must be done to make sure that the standard doesn't slip. Even at the current level, considerable staff time is wasted in looking for items on the reserve list that haven't yet been reshelved and in explaining to library customers why items that are shown as "on shelf' in the catalog aren't there. Page 30 of 34 Underutilization of Self-Check One of the options that is now available for handling increasing circulation workload is self-check. These machines allow library customers to check their materials out themselves. The use of self-service checkout in libraries has developed in parallel with similar systems in the retail world. Just as in retail, some customers appreciate the fact that self-checkout allows them to perform their transactions quickly and confidentially, while others aren't comfortable using a machine and/or prefer human interaction. Providing a self-service option is now common in many public libraries and their experiences can be used to increase utilization at Tigard. The San Jose Public Library in California has been very successful in incorporating self-check and reports that 85-90% of its circulation is now done on self-check machines. Locally, the Multnomah County Library averages around 30% of circulation going through self-check, for those branches that have the machines. Libraries in Canada, western Europe, Singapore and Hong Kong also report very high utilization rates, as high as 90-95% in some instances. The keys to acceptance and use are these: • Machine location and placement: self-check must be designed as the primary rather than secondary method for checking out materials. They must be easy to find by library users. • Machine environment: library customers are very used to Ch,~C _1 using ATMs. Self-check machines should have similar I' cabinetry and convenience features such as a shelf to place materials on. • Sufficiency of machines: there need to be enough machines (at least two) so that most of the time users can walk up and use one, thus eliminating Self-check at San Jose Public Library the need to line up for either in-person or self-check out. • Self pick-up of holds: Because holds are such a significant portion of circulation, many patrons have holds. If they have to go to the Circulation Desk so that staff retrieve holds for them, they can't use the self-check machines. Many libraries have now put holds out for library customers to retrieve themselves (CDs and DVDs are often exceptions if they don't have security tags). Issues of confidentiality, security, and filing arrangements have been resolved by many libraries. Tigard can benefit from the experience of those who have pioneered this approach. • Review of policies and limitations: The goal is to make it possible for the majority of library users to use self-check. Fine thresholds, alerts, etc., should be reviewed so that people receive alerts if they have fines or overdue items but that they aren't stopped from checking items out until they've reached a reasonable threshold level. For example, if people are blocked from using self-check at the $5 level many more will be blocked than if the level Page 31 of 34 were set to $25. Threshold levels are set collectively for WCCLS members. The current fine threshold is $9.95 • Machines that will check out and handle security for audiovisual items: Earlier self-check machines either couldn't handle security tags or conflicted with them. Since many libraries put some sort of security tag on high theft items, the self-check machine must be able to handle them and perform the necessary desensitization process so that items can be taken through security gates. The Tigard Public Library has begun to place security strips in most audiovisual material (CD's & DVD's) so that self-check machines can be used and to protect materials from theft. • Good staff training: Staff acceptance and understanding of self-check is essential to its being embraced by library users. Staff must understand why the machines are being used, what the utilization targets are, and how their jobs will change. Management must understand that staff who work with library customers will need additional training and the right customer service competencies because if self-check is heavily used, the users staff deal with will have problems with fines or overdues or other issues that prevent them from using the self-check machines. • Floor assistance to library customers: A successful roll-out of self-check requires several months of friendly, positive assistance by staff or volunteers (similar to docents). Self-check must be presented as a positive, time saving benefit not as one more way that public employees are trying to shirk their work or shift it to the public. The Tigard Public Library did provide such an introduction last spring and plans another, even more focused process this coming spring. Another benefit that many libraries have heard expressed by their users is that people appreciate the confidentiality of self-check because no one sees the books or subjects they are borrowing. This benefit should be emphasized, in addition to the convenience and time-saving aspects of self-check. The Tigard library has tried some of these suggestions and has tried to position the machine it has closer to the circulation desk. However, the machine is _ L9 obscured by people waiting to check materials out and is not available until one comes to it, if there is a line. In other words it's not a clear first choice option. The size and placement of the Circulation Desk - announces "this is the place to check materials out". It will be difficult to get customers to use the self-check t machines until a rearrangement and redesign is completed. The FY 2006 utilization rate was 6% and the target for FY 2007 has been set at 10%, with future targets Self-check machine is not visible from the line. ultimately moving up to 35-40%. This goal should be rethought. There is an opportunity to utilize staff in other ways if self-check were utilized at a higher level. Page 32 of 34 CONCLUSIONS The Tigard Public Library is valued highly by both its users and Tigard residents. According to the latest survey of library users, library users make heavy use of the library and indicated by a resounding97% that the library is meeting their needs. Tigard residents indicated in the 2006 Community Attitude Survey that they were very satisfied with library services by giving the library an 8.9 mean rating out of a possible 10. In fact, 43% of the survey respondents gave the library a 10 out of a 10 rating. The library provides nearly a four to one return on tax payer dollar investment. In addition to the quantifiable return on investment, library materials and services provide information that provides tangible benefit to users as well as enriches their lives. The library also provides numerous, unquantifiable benefits to users and the community by supporting literacy and the love of learning, serving as an important community center that allows everyone to be together in a positive, neutral environment, and providing information and programs of interest to community members of all ages. When compared to other libraries at the national, state, and regional level, the Tigard Public Library does better than average in many areas of comparison and is at average in most others. Because of county- wide budget restrictions, some measures have slipped in recent years, but performance should improve in these areas as monies from the recently approved tax levy come in. The library compares well to other public libraries its size in terms of the quality of its management. Staff and management take seriously and conscientiously their commitment to providing excellent customer service in a community that places a premium on community involvement and engagement and expects and supports personal service. While a number of recommendations are made in this report designed to improve service efficiency, they are made within the context of a library operation that is regarded as highly effective by its users and the community and that appears to be appropriately staffed for the current service offerings, open hours, and building size and configuration. Page 33 of 34 Appendix A Tigard Public Library - 6 Years' Statistics Source: Oregon Statistics as reported by BibliostatConnect % Change Data Elements 2001 2002 2003 2004 2005 2006 in 6 Years # of FTE with MLS Degree 8 8.2 7.9 9.2 12.7 12.5 56% # of Registered Borrowers 43,428 46,703 50,041 29,739 31,759 32,207 -26% # of Total Paid Staff FTE 35 30.6 30.65 28.9 33.2 34.2 -2% # of Total Units 112,339 108,571 107,781 114,400 125,906 137,908 23% Circulation per Capita 11.14 11.03 11.27 10.55 11.54 13.02 17% Circulation per FTE 17,027 21,872 22,317 22,561 21,928 24,863 46% Percent of Op Exp spent on Library Materials 13.04% 12.67% 13.21% 13.68% 13.97% 14.54% 12% -Population of The Legal Service Area 53,519 60,676 60,676 61,808 63,110 65,310 22% Public Service Hours 3,282 3,462 3,474 3,047 2,716 2,866 -13% Reference Transactions per Capita 0.8 0.86 1.06 0.99 0.82 0.77 4% -Registered Borrowers as % of Population 81% 77% 82% 48% 50% 49% -39% Staff Expenditures as % of Operating -Budget 81% 81% 81% 82% 81% 80% _1% Total # of Public PC Uses 35,930 54,051 68,752 66,411 76,114 108,133 201% Total # of Reference Transactions 43,017 51,966 64,258 60,995 51,710 50,056 16% Total Circulation 595,935 669,297 684,023 652,004 728,003 850,326 43% Total Collection Expenditures $214,900 $234,233 $247,357 $251,356 $312,790 $346,075 61% Total Collection Expenditures per Capita $ 4.02 $ 3.86 $ 4.08 $ 4.07 $ 4.96 $ 5.30 32% Total Hours in Typical Week Open 69 69 69 61 55 55 -20% Total ILLs Provided 56,807 83,172 97,241 101,538 109,313 168,614 197% Total ILLs Received 50,842 67,472 84,245 90,835 103,954 130,172 156% Total Library Program Attendance per -Capita 0.23 0.22 0.24 0.2 0.25 0.21 -9% -Total Operating Expenditures $1,648,568 $1,848,304 $1,872,620 $1,837,487 $2,238,427 $2,380,450 44% Total Operating Expenditures per Capita $31 $30 $31 $30 $35 $36 18% Total Staff Expenditures $1,333,085 $1,499,500 $1,523,269 $1,504,735 $1,816,690 $1,912,796 43% Total Staff Expenditures per Capita $ 24.91 $ 24.71 $ 25.11 $ 24.35 $ 28.79 $ 29.29 18% Turnover Rate 5.30 6.16 6.35 5.70 5.78 6.17 16% Visits 250,175 276,023 281,574 268,916 343,390 373,176 49% Visits per Capita 4.67 4.55 4.64 4.35 5.44 5.71 22% Page 34 of 34 PUBLIC SAFETY LIABILITY MAMAGENENT, INC. 2441 NW Pinehurst Drive McMinnville, Oregon 97128 (503)434-5983 Fax (503) 435-0299 psim2OO3@verizon.net Tigard Police Department Mutual Aid Responses Challenges: • Accurate and complete data • What exactly is a mutual aid response Preliminary information (2004 only) • Tigard responded outside city 841 responses • Outside agencies into Tigard 802 responses Property Evidence Function Facilities • I nefficient • Capacity Record Keeping • Manual Data Policies and Procedures What Comes In/Goes Out Training • Legal and Procedural Employee Retention Critical Issue Department Turnover Quantitative Aspects • Compensation • Opportunities • Innovative Efforts Qualitative Aspects • Work/Life Balance • Employee Welfare/Organizational Climate • Succession Plan Steven Winegar, Ph.D. 503-691-2124 stevewinegar(cDverizon. net ,A, TIGARD PUBLIC LIBRARY { 13344 ;W "Aal SOU16YARD I •~q~ Yy y,. .j ~f , 1 • • • • Comprehensive Annual Financial Report Cover Description/Narrative • • • E On the Front Cover: • On May 21, 2002, Tigard citizens approved a $13 million general obligation bond to • construct a new library facility. The new library opened in August 2004 with much celebration. The new library is more than three times the same size of the former • library and includes a larger children's room, a local history room, a computer • training room, the Grace Tigard Houghton reading room, and a community meeting • room. • • The front cover features the new library, the Grace Tigard Houghton reading room; • Curtis Tigard, brother of Grace T. Houghton, and the City of Tigard's Mayor, Craig • Dirksen, at the Library's grand opening; computer area, and the whimsical painted • columns by Mary Josephson in the children's area. The reading room is due to the generous donation of the estate of Grace T. Houghton and the art in the children's • area is due to the generous donation of the estate of Neva Root. • • • • • • • • • • • • • • • • r • • • • • • Cover design courtesy of Maureen Denny • • • • • • • • • • • • • • • • • • • CITY OF TIGARD, OREGON • • • • COMPREHENSIVE ANNUAL FINANCIAL • REPORT • • For the fiscal year ended June 30, 2006 • • • Prepared by: City of Tigard - Financial and Information Services Department • • • • • • • • • • • • • • • - • • • • • • • • • • • •.i..•~~~~_ ~~~i~~~i i~r~~~•• 1~+~ t . • • • • City of Tigard, Oregon • Table of Contents • • • . INTRODUCTORY SECTION: Page Letter of Transmittal 1-7 • Certificate of Achievement for Excellence in Financial Reporting 8 . Organization Chart 9 • Mayor and City Council Members 10 FINANCIAL SECTION: • Independent Auditors'Report 11-12 • Management's Discussion and Analysis 13-25 • • Basic Financial Statements • Government-Wide Financial Statements Statement of Net Assets 26 • Statement of Activities 27-28 • Fund Financial Statements Major Governmental Funds: • Balance Sheet ...........................................................................................29 • Statement of Revenues, Expenditures, and Changes in Fund Balances 30 • Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 31 • Proprietary Funds: • Statement of Net Assets 32 • Statement of Revenues, Expenses, and Changes in Fund Net Assets 33 Statement of Cash Flows ..................................................................................34 Pension Trust Fund: Statement of Plan Net Assets 35 • Statement of Changes in Plan Net Assets .....................................................................35 Notes to Basic Financial Statements 36-55 • Required Supplementary Information:. • Schedule of Revenues and Expenditures - Budget and Actual: • General Fund ...........................................................................................56 Gas Tax Fund 57 • Parks SDC Fund 58 • Other Supplementary Information: . Nonmajor Governmental Funds Combining Statements: Combining Balance Sheet 59 • . Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . • Special Revenue Funds: • -Combining Balance Sheet - Nonmajor Special Revenue Funds 61 • Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Special Revenue Funds 62 • Schedules of Revenues and Expenditures - Budget and Actual: • Criminal Forfeiture Fund 63 Traffic Impact Fund ......................................................................................64 • Electrical Inspection Fund .................................................................................65 • • • • • • • • • • • • • City of Tigard, Oregon • Table of Contents, Continued • • • FINANCIAL SECTION, Continued: Page Other Supplementary Information, Continued: • Special Revenue Funds, Continued: • Schedules of Revenues and Expenditures - Budget and Actual, Continued: • Underground Utility Fund 66 Insurance Fund 67 • Building Fund ...........................................................................................68 • Traffic Impact Fee Urban Services Fund 69 • Urban Services Fund .....................................................................................70 Street Maintenance Fee Fund ...............................................................................71 • Debt Service Funds: • Schedules of Revenues and Expenditures - Budget and Actual: • Bancroft Debt Service Fund ...............................................................................72 General Obligation Bond Debt Service Fund 73 • Capital Projects Funds: • Combining Balance Sheet- Nonmajor Capital Projects Funds 74 . Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Projects Funds 75 • Schedules of Revenues and Expenditures - Budget and Actual: • Parks Capital Fund 76 • Facility Fund 77 Wall Street Local Improvement District Fund 78 • 79th Avenue Local Improvement District Fund 79 • Proprietary Funds: Enterprise Funds: Schedules of Revenues and Expenditures - Budget and Actual: • Sanitary Sewer Fund ......................................................................................80 • Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses - Sanitary Sewer Fund 81 • Storm Drainage Fund .....................................................................................82 • Water Quality and Quantity Fund 83 • Reconciliation of Budgetary Revenues and Expenditures to Proprietary Revenues and Expenses- Storm Sewer Funds ................................................................84 • Water General Fund ......................................................................................85 • Water Systems Development Fund 86 Water Capital Projects Fund 87 • Reconciliation of Budgetary Revenues and Expenditures to Proprietary 0 Revenues and Expenses- Water Funds 88 • Reconciliation of Budgetary Fund Balances to Generally Accepted • Accounting Principles Basis Net Assets 89 0 Internal Service Funds: • Combining Statement of Net Assets 90 • Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 91 Combining Statement of Cash Flows.......... 92 • Schedules of Revenues and Expenditures - Budget and Actual: • Central Service Fund 93 • Fleet/Property Management Fund 94 • • • • • • • • • • 0 0 City of Tigard, Oregon 40 Table of Contents, Continued • • FINANCIAL SECTION, Continued: Page Other Supplementary Information, Continued: Other Schedules: . Schedule of Property Tax Transactions and Outstanding Balances 95 • Schedule of Bond and Bond Interest Transactions ..................................................................96 Schedule of Future Debt Service Requirements of . Long-term Notes Payable ...................................................................................97 • Schedule of Future Debt Service Requirements of • Bancroft Improvement Bonds 98 Schedule of Future Debt Service Requirements of General Obligation Bonds 99 • STATISTICAL SECTION- 0 Net Assets by Component ......................................................................................100 Changes in Net Assets 101-102 . Fund Balances of Governmental Funds 103 • Changes in Fund Balances of Governmental Funds 104 . Government- Wide Revenues ...................................................................................105 . Government- Wide Expenses by Function ..........................................................................106 • General GovemmentalRevenues by Sources ....:...................................................................107 • General Governmental Expenses by Sources 108 Market Value and Assessed Value of Taxable Property 109 • Property Tax Rates - Direct and Overlapping Governments 110 . Principal Property Taxpayers ....................................................................................111 . Property Tax Levies and Collections ...............................................................................112 Special Assessment Collections 113 • Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita 114 • Ratio of Annual Debt Service Expenditures for Long-Term Debt to Total General Governmental Expenditures 115 Computation of Direct and Overlapping General Obligation Debt 116 • Computation of Legal Debt Margin 117 • Ratio Debt by Type 118 . . • Demographics Statistics .......................".................................................................119 Principal Employers ...........................................................................................120 Property Value and Construction 121 Full-time Equivalent Cry Government Employees by Function 122 . Operating Indicators by Function/Program .........................................................................123 Capital Assets Statistics by Function 124 Miscellaneous Statistical Data 125 • AUDIT COMMENTS AND DISCLOSURES REQUIRED BY • STATE REGULATIONS: • Auditors' Comments and Disclosures 126-127 - 0 1~~~ a 0600 • • City of Tigard, Oregon* 13125 SWHall Blvd. Tigard, OR 97223 ~ October 25, 2006 Citizens of Tigard • Honorable Mayor TIGARD' • Members of the City Council • • • It is our pleasure to submit to you the Comprehensive Annual Financial Report of the City • of Tigard, Oregon, for the fiscal year ended June 30, 2006. • • Oregon Revised Statutes (ORS) 297.425 requires that every municipal corporation publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing standards generally accepted in the United States of America bya firm of licensed certified public accountants. This report consists of management's representations concerning the finances of the City. • Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations,, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide. reasonable rather than absolute assurance that the financial • statements will be free from material misstatements. As management, we assert that, to the • best of our knowledge and belief, this financial report is complete and reliable in all material • respects. • • The City's financial statements were audited by Grove, Mueller & Swank, P.C., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June • 30, 2006, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by the management; . and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an • unqualified opinion that the City's basic financial statements for the fiscal year ended June 30, 2006, are fairly presented, in all material respects, in conformity with GAAP. The independent auditor's report is included in the Financial Section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and • should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. • • • 1 • • Phone: 503.639.4171 . Fax: 503.684.7297 . www.tigard-or.gov . TTY Relay: 503.684.2772 • • Profile of the Government The City of Tigard is located in southeast Washington County, 15 minutes from downtown • Portland, Oregon and along major highways, Interstate 5 and Highway 217. The City is included in the Metro urban growth boundary and Tigard's closest neighboring cities include Beaverton, Lake Oswego, Tualatin, Durham, Portland, and King City A state highway, 99W, runs north and south through the eastern portion of the City and is a major transportation corridor leading to the City of Portland. There is also a major greenway called Fanno Creek that connects neighborhoods to the natural environment and several of the City's parks. The incorporated area of the City represents 11.71 square miles and has a population of 45,500. The City has experienced a steady growth since its incorporation in t 1961. Population increases have varied from a yearly-change of less than 1% to almost 50% since incorporation. It is projected that the City will have a population of over 47,000 by • 2007. The City can extend its corporate limits by annexation which is permitted by state • statute. • • The City is governed by an elected Mayor and four council members who comprise the City 0 Council. The City's Curter established the Mayor/Council form of government. Each • member of the City Council is elected at-large to serve a four-year term The Mayor presides • at Council meetings and is elected at-large for a four-year term The Major and Council provide community leadership, develop policies to guide the City in delivering services and achieving community goals, and encourage citizen awareness and involvement. • The City Council appoints a City Manager, who is the chief administrative officer of the City. The City Manager is responsible for ensuring Council policies are implemented using resources appropriated by the Council to achieve desired service results in the community. . The City provides a full range of municipal services. These services include police, municipal court, community planning and development, parks, library, capital improvement S planning, administration and central services, street maintenance, water, and other general public works activities. The City owns and maintains the wastewater and storm drainage system within the City limits under an agreement with Clean Water Services. Fire protection is provided by Tualatin Valley Fire and Rescue. • The City maintains budgetary controls to ensure compliance with legal provisions in the • annual appropriated budget adopted by the City Council. Activities of all funds are included in the annual adopted budget. The level of budgetary control (that is, the level at which • expenditures cannot legally exceed the appropriated amount) is established by program within each individual fund. • As demonstrated by the statements and schedules included in the financial section of this report, the City continues meeting its responsibility for sound financial management. • Factors Affecting Financial Condition • The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Tigard operates. • • • • 2 • • • Local economy The City's location in the Portland metropolitan area provides citizens with many diverse employment opportunities. Unemployment data is not collected specifically for Tigard, so information related to Washington County and the Portland Metro area is used to gauge the unemployment rate for the City. The chart below shows a six year comparison of unemployment rates. The Portland Metro area and the State of Oregon have the. highest rates over the six year time period, with • Washington County and the US. lower. Washington County has leveled out to a rate consistent with the overall country in 2005, with Portland Metro and Oregon still a little • higher. Rates for all areas during the time period peaked in 2003, and are currently in a state of decline. • • Unemployment Rate Comparison 8.0s.~ e„1:~y yy r~~~~ r • ~ 7.0 • m 60s 1f _ a _ ~I E 5.0. - jf • a 4.0 • m 3.0 - • j 2.0 1.0 . 0.0 l - s • 2000 2001 2002 2003 2004 2005 Year ----Oregon -s--•-United States ---Portland Metro -Washington Co. • • Wholesale trade, retail trade, and the service industry all play a large role in Tigard's • economy. Retail trade has the most establishments; and the retail and service industries • employ the most people. The City has within its boundaries one of the largest shopping malls in the region, Washington Square. The mall has five major department stores and A more than 140 specialty shops. In 2005, Washington Square completed an 80,000 sq. ft. • expansion that added an additional 28 specialty stores and restaurants. This expansion increased the size of the mall to over 1.3 million square feet. • Summate of Economic Data • . Number of Businesses, as of October 2006 3,412 • Median Household income (2000) $51,581 • Primary Economic Sector (receipts/ sales) Wholesale Trade & Information • • General Fund Permenent Tax Rate $2.51310 per $1000 of assessed value • Total Assessed Value (2006) $4,087,904,786 • • 3 • • • • • • • Ten Largest Employers • (as of March 2006) Employer Product or service Employment ' Renaissance Credit Services Financial Services 1,116 • Macy's Retail department store 704 • Nordstrom Retail department store 461 Oregon Public Employees Retirement Public retirement system 347 Costco Wholesale Corporations Box store 341 • Providence Health System Health care provider 303 • City of.Tigard Local government 271 • The Cheesecake Factory Food service 250 • Home Depot Building/home supplies 241 • North Pacific Group, Inc. Wholesale distributor 238 • Long-term financial planning • • The City has developed a comprehensive long-term financial forecast every year since the • 1980's. By forecasting and anticipating financial trends, the City can develop strategies to respond to emerging financial trends. The City forecasts operating fund revenues and • expenditures over a five-year period. The forecast is adjusted as each year's final results are • known and as budgets are prepared for the following year. In addition, the City also prepares a five-year Capital Improvement Program (CP) that is also updated every year. The CIP is developed through a process separate from, but parallel to the budget process. The impact on future operating and maintenance costs are projected from the CIP and then incorporated in the long-term financial forecast.. • Relevant financial policies The City of Tigard has an important responsibility to its citizens to carefully account for public funds, manage municipal finances wisely, and plan adequate funding of services and • facilities desired and needed by the public. • • In support of this effort, the City has established a set of fiscal policies to ensure that the public's trust is upheld. With such fiscal policies, the City has established the framework A under which it will conduct its fiscal affairs, ensuring that it is and will continue to be capable of funding and providing outstanding local government services. • The goals of Tigard's fiscal policies are: • • • To enhance the City Council's pohcy-making ability by providing accurate • information on program and operating costs. • • • To assist sound management of the City government by providing accurate and • timely information on current and anticipated financial conditions. • • • To provide sound principles to guide important decisions of the Council and • management which have significant fiscal impact. • • • 4 • • • • • • To set forth operational principles, which minimize the cost and financial risk of our • City's government consistent with services, desired by the public. • • To employ revenue policies, which prevent undue or unbalanced reliance on any one source, distribute the cost of municipal services fairly and provide adequate funds to operate desired programs • To provide and maintain essential public facilities, utilities, infrastructure, and capital equipment. • To protect and enhance the City's credit rating. • • • To insure that all surplus cash is prudently invested in accordance with the investment policy adopted by the Council to protect City funds and realize a reasonable rate of return. • • Major initiatives The Tigard City Council meets at the beginning of each calendar year to establish goals. Council goals comprise high-priority or programs that the Oty Council intends to ~ • complete or initiate during the year, though attainment of these goals may take several years. • The goals are based on the City's Vision Task Force goals, departmental needs, and City . Council priorities. In the goal setting meeting, the City Council reviews information and • develops its annual and long-term goals. Council goals set the priorities for City government and are incorporated into departmental work plans. • • Goal 1: Revise City of Tigard Comprehensive Plan • Complete draft by year end • • Last year, Council had a goal to address growth. In 2006, that goal has been • modified to revise Tigard's Comprehensive Plan. This plan sets the long term • vision for the City, defines our character, and guides development and growth. • Goal 2: Implement Downtown Plan r • Implement catalyst projects including improvements to Burnham Street and identify and purchase land for a Downtown public gathering place • • Work to assure passage of the Urban Renewal Plan ballot measure. The ballot was passed by City voters in May 2006 • • Identify and make changes to the Tigard Development Code needed to implement the Downtown Plan (e.g., zoning overlays, design standards) On a special note, the City is happy to report that Tigard voters approved an urban renewal • district for Tigard's historic Main Street and surrounding area. Goal 3: Improve 99W Corridor • Complete Transportation Growth Management (I'GM) Corridor Study • • Continue Greenburg Road intersection project • Continue Hall Boulevard intersection project • • Other important City Council goals for 2006 include the following: • 5 • • • • Improve communication and relationship with citizens • Consider opportunities for major greenspaces purchases • Clarify City's position on the provision of urban services to unincorporated areas and in the best interests of the citizens of Tigard • Secure long-term water source(s) • Stabilize financial picture • With the passage of Tigard's Urban Renewal ballot measure, the City established a permanent funding base to implement the Tigard Downtown Improvement Plan. The formation of the Urban Renewal District sends a clear message that the City is now financiallycommitted to carrying out its Downtown Plan and, will be in a position to support investments there. Although it will take time for tax revenues to accumulate under the tax increment financing process, it is anticipated that enough funding will be available for $22 million in public improvements for downtown. The implementation of all of the projects such as streets, parks, plazas, a public market, and performing arts center will take up to 20 years to accomplish but that doesn't mean citizens won't see improvements in the near future. Street improvements, a downtown streetscape design, and other improvements are already being designed and construction should begin within one year. Awards. and Acknowledgements • The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Tigard for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2005. This was the 21st consecutive year that the City has received this esteemed award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAM This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. • In addition, the City also received the GFOA's Distinguished Budget Presentation Award for its annual budget for fiscal year 2006-2007. This was the nineteenth consecutive year that the City has received this prestigious award 'In order to qualify for the Distinguished Budget Presentation Award, the City's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. As a management note, the City's new Director of Financial and Information Services began employment with the City in February 2006. The preparation of this report was made possible by the dedicated' service of the entire staff of the Finance Department and our auditors. Each member of the Department has our sincere appreciation for the contributions made in the preparation of this report. Special 6 • • recognition should be given to Roger Dawes, Accounting Supervisor and Amanda • Bewersdorff, Accountant; for their work in preparing this document. Credit also must be given to the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Tigard's finances. • i Res bmitted,. • • Craig I'~osser Robert Sesnon • CityNlanager Director of Financial and • Information Services • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 7 • • • • • • Certificate of • Achievement • • for Excellence • • in Financial • Reporting Presented to • City of Tigard Oregon ~ For its Comprehensive Annual • Financial Report • • for the Fiscal Year Ended • June 30, 2005 • • A Certificate of Achievement for Excellence in Financial • Reporting is presented by the Government Finance Officers • Association of the United States and Canada to government units and public employee retirement • systems whose comprehensive annual financial • reports (CAFRs) achieve the highest standards in government accounting • and financial reporting. • • • OF • CW= M s President • neat' • • */J/W • Executive Director • • • • • • • 8 • • • • • • CITIZENS OF TIGARD Mayor& dtyCouncil 0 Conn nunity Public i? Development r Policy and 0 Services Works Services ,ux Administration 0 Police Library Public Community Engineering City Finance • Works Development Administration • Administration Administration Administration Administration Department Engineering CRY Finance Department Management AdrrinisVation • operations Readers' Parks Building Street Lights Human Financial Services & Grounds Inspection & Signals Resources. Operations • • Support Technical Sanitary • Qurent Risk Admnstrative Services Services Sewer Planning nrtanagement Services CVculation Storm Long Range Inforrretan Sew er Planning Technology • • Street lv ain tenance • • Fleet Maintenance 0 Property 0 Management 0 --L-] Water • • • • • • • • 0 • - 0 0 0 • • • 0 0 9 • • 0 • • • • City of Tigard, Oregon • Z • • PRINCIPAL OFFICIALS AS OF JUNE 30, 2006 • • • ELECTED OFFICIALS: • • Name Term Expires • Mayor Craig Dirksen December 31, 2006 • • Councilor Nick Wilson December 31, 2006 • • Councilor Sydney Sherwood December 31, 2006 • • Councilor Sally Harding December 31, 2008 • Councilor Tom Woodruff December 31, 2008 • • • • APPOINTED OFFICIALS: • • Craig Prosser, City Manager • • • • All may be reached at: • 13125S W Hall Boulevard • Tigard, OR 97223 • • LEGAL COUNSEL Ramis, Crew, Corrigan & Bachrach • 1727 NW Hoyt Street • Portland, OR 97209 • • • • • • • • • 10 • • • • ` i -V . - - - ~ _ . • • ~~'I~ ~IIII • V • GROVE, MUELLER & SWANK, P.C. • • CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 • (503) 581-7788 • • INDEPENDENT A UDITOR'S REPORT • • Honorable Mayor and Members of the City Council • City of Tigard • Tigard, Oregon • We have audited the accompanying financial statements of the governmental activities, the business-type • activities, each major fund, and the aggregate remaining fund information of the City of Tigard, Oregon as of • and for the year ended June 30, 2006, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our • responsibility is to express an opinion on these financial statements based on our audit. • We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also • includes assessing the accounting principles used and significant estimates made by management, as well as • evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable • basis for our opinion. • In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Tigard, Oregon as of June 30, 2006 and the respective changes in financial position and its cash flows, where applicable, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis and required supplementary information are not a required part of • the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures that consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a • whole. The other supplementary information in the table of contents is presented for purposes of additional • analysis and is not a required part of the basic financial statements of the City of Tigard, Oregon. Such • information has been subjected to the auditing procedures applied in the audit of the basic financial statements • and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken • as a whole. • • • ~ 11 • • • The data presented in the accompanying statistical and introductory sections, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic. financial statements. This information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on such data. r GROVE, MUELLER, & SWANK, P.C. CERTIFIED PUBLIC A CCO UNTA NTS By: Charles A. Swank, A Shareholder October 25, 2006 0 12 Management's Discussion and Analysis As management of the City of Tigard, we offer readers this narrative overview and analysis of the financial activities of the City of Tigard for the fiscal year ended June 30, 2006. It focuses on significant financial issues, major financial activities, and resulting changes in financial positions, as well as economic factors affecting the City. This Management's Discussion and Analysis W&A) is based on currently known facts, decisions, and conditions that existed as of the date of the independent auditors' report. We encourage readers to consider the information presented here in conjunction with the transmittal letter at the front of this report and the City's financial statements which follow this discussion and analysis. Financial Highlights • The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $275.4 million (net assets). Of this amount, $42.2 million (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. The City's net assets increased $7.3 million over the course of this year's operations. • Within this total the net assets of our business-type activities increased by $6.3 million or • 27.3 percent, and net assets of our governmental activities increased by $1.0 million or • 0.8 percent. • During the fiscal year, the City generated $28.3 million in taxes, charges for services, and other revenues for governmental programs while incurring expenses from governmental activities totaling $27.3 million, for an increase in net assets of $1.0 million. • In the City's business-type activities, revenues increased by $5.1 million or 45.1 percent, while expenses decreased by $0.8 million or 7.3 percent. The increase in revenues is due primarily to the completion of major private development projects that have been turned over to the City and reported as capital contributions. As of the close of fiscal year 2006, the City's governmental funds reported combined ending fund balances of $25.0 million, an increase of $2.7 million. This increase is directly related to the continued growth in the fund balances in the Parks SDC Fund and the Gas Tax Fund. These funds will eventually be used for capital projects. • At the end of the fiscal year, unreserved fund balance for the General Fund was $8.4 million, an increase of $0.2 million or a 2.2 percent increase from the previous year. • The City's total debt decreased by $0.8 million during fiscal year 2006. This is entirely due to the normal, annual debt service payments on the general obligation bonds, long- term notes, Bancroft Improvement Bonds, and also the prepayment on some earlier issued improvement bonds. • 13 • • • • Overview of the Financial Statements • In addition to this discussion and analysis, the financial section of this annual report contains the basic financial statements, required supplementary information, and the combining • statements of the non-major funds and schedules demonstrating legal compliance. • • The basic financial statements also include notes that explain the information in the financial • statements and provide more details. The statements are followed by the required • supplementary information section that supports the information in the financial statements. In addition to this discussion and analysis, the financial section of this annual report contains the basic financial statements, required supplementary information, and the combining statements of the non-major funds and schedules demonstrating legal compliance. • • Required Elements of the Comprehensive Annual Financial Report • • MANAGEMENT'S DISCUSSION AND ANALYSIS • • FINANCIAL STATEMENTS • • • Government-wide (full accrual) Fund • Governmental Activities Governmental (modified accrual) • Business-type Activities Proprietary (full accrual) • Fiduciary (full accrual) • Notes to Basic Financial Statements • • REQUIRED SUPPLEMENTAL INFORMATION (other than MDBA) • OTHER SUPPLEMENTARY INFORMATION Government-wide Financial-Statements. • The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. • The Statement of Net Assets presents information on all of the City s- assets and liabilities, • with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. • The Statement of Activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will • result in cash flows in a future fiscal period. Examples of such items include earned, but uncollected property taxes, and earned, but unused compensated absences. • • 14 • • • P Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) r from other functions that are intended to recover all of a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include the following: • Community services, police, library, and social services • Public works, including parks and recreation • • Development services, planning and engineering • Policy and administration • • The business-type activities of the City include the following: • • Sanitarysewer • Storm water • • Water • The government-wide financial statements can be found on pages 26-28 of this report. • r Fund Financial Statements are designed to display compliance with finance-related legal requirements demonstrated by the use of fund accounting. A fund is a grouping of related • accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. The funds of the City can be divided into the following categories: governmental funds, proprietary funds, and a fiduciary fund. Gowrnmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of available resources, as well as on balances of available resources at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial capability. • Because the focus of governmental funds is narrower than that of the government-wide i financial statements, it is useful to compare the information presented for governmental 0 funds with similar information presented for governmental activities in the government-wide 0 financial statements. By doing so, readers may better understand the long-term impact of 0 the City's near-term financing decisions. Both the governmental fund balance sheet and the i governmental fund statement of revenues, expenditures, and changes in fund balance • provide a reconciliation to facilitate this comparison between governmental funds and • governmental activities. 0 • The City maintains 20 individual governmental funds. Information is presented separately in • the governmental fund balance sheet and the statement of revenues, expenditures, and • changes in fund balances for those funds that are considered significant (major) to the City • taken as a whole. These financial statements report four major funds: General Fund, • Bancroft Debt Service Fund, Gas Tax Fund, and Parks SDC Fund. Data from the other 16 • governmental funds are combined into a single, aggregated presentation. Individual fund • data for each of these non-major governmental funds is provided in the form of combining • statements elsewhere in this report. • • 15 • • • The Parks SDC Fund was created in fiscal year 2006 to track the revenues associated with the collection of Park System Development Charges (SDC's). The City Council approved a new SDC methodology and fee that went into effect in January 2005 and this fund will give the City the ability to track this revenue stream separately from other park related fees and charges. The City adopts an annual appropriated budget for all of its governmental funds. A budgetary comparison statement has been provided for each fund individually to demonstrate compliance with their budgets. The basic governmental fund financial statements can be found on pages 29-31 of this report. Proprietary funds are used to account for a government's business-type activities. The City maintains two different types of proprietary funds enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the governmental-wide financial statements. The City uses enterprise funds to • account for its sanitary sewer, storm water, and water operations. Internal service funds are • an accounting device used to accumulate and allocate costs internally among the City's . various functions. The City uses internal service funds to account for fleet maintenance, risk . management, office services, finance and accounting, and other management services. r The City reports all three of the enterprise funds as major funds. These funds are the 0 Sanitary Sewer Fund, the Storm Sewer Fund, (which consists of the budgetary Storm Sewer and the Water Quality/Quantity Funds), and the Water Fund, (which includes the budgetary • Water, Water SDC, and Water CIP.Funds). However, for budgetary and legal purposes these funds are accounted for separately. Conversely, all internal service funds are combined • into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided as other supplementary information. • The City also adopts an annual appropriated budget for all proprietary funds. To demonstrate compliance with the budget, budgetary comparison statements have been • provided for the enterprise funds as other supplementary information on pages 80-89 of this report. Budgetary comparisons for the internal service funds are provided on pages 93-94 of this report. The proprietary fund financial statements can be found on pages 32-34 in the basic financial statements. • Fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore cannot be used to support the government's own programs. The City has a pension trust fund that accounts for employee defined contribution plans. The accounting used for the fiduciary fund is much like that used for the proprietary funds. No budget is adopted for the fiduciary fund in accordance with Oregon Local Budget Law. • The fiduciary fund financial statements can be found on page 35 in the basic. financial • statements. • 16 • • • Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 36-55 of this report. The combining statements referred to earlier in connection with non-major governmental funds and business-type funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be. found on pages 59-89 of this report. • • Government wide Financial Analysis • • Net assets. As noted earlier, net assets may serve over time as a useful indicator of the City's financial position. In the case of the City, assets exceeded liabilities by $275.4 million at June 30, 2006. • • The largest portion of the City's net assets (82.3 percent) reflects its investment in capital assets (e.g., land, buildings, roads, sewers, storm water facilities, etc), less any related debt used to acquire those assets that is still outstanding. The majority of these capital assets, including the City infrastructure, are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities. City of Tigard, Oregon • Net Assets as of Fiscal Year-end • (in millions) • • Governmental Business-type • Activities Activities Total • FY 05-06 FY 04-05 FY 05-06 FY 04-05 FY 05-06 FY 04-05 • Assets • Current and other assets $ 31.3 $ 29.8 $ 26.0 $ 26.2 $ 57.3 $ 56.0 . Net capital assets 181.6 183.3 58.1 51.9 239.7 235.2 Total assets 212.9 213.1 84.1 78.1 297.0 291.2 • • Liabilities Other liabilities 4.8 5.2 1.8 2.1 6.6 7.3 Long-term debt outstanding 15.0 15.8 - - 15.0 15.8 • Total liabilit ies 19.8 21.0 1.8 2.1 21.6 23.1 Net Assets Invesied in capital assets, net of related debt 168.6 169.5 58.0 51.9 226.6 221.4 • Restricted 1.9 1.4 3.8 3.8 5.7 5.2 - Unrestricted 22.6 21.2 20.5 20.3 43.1 41.5 Total net assets $ 193.1 $ 192.1 $ 82.3 $ 76.0 $ 275.4 $ 268.1 • The City's net-ass ets increased by $7.3 million during the fiscal year. The largest portion of this increase is directly related to the completion of. major private development projects where major components of the infrastructure were turned over to the City and are being. reported as capital assets of the City. This amounted to approximately $6.0 million. 17 • • • The remainder of the growth is primarily related to increases in service charges from the water utility operations and other fees that are adjusted annually based on certain price indexes. • The revenues and expenses shown on the next table explain changes in net assets for fiscal year 2006. City of Tigard, Oregon Changes in Net Assets (in millions) • Governmental Business-type Activities Activities Total • FY 05-06 FY 0405 FY 05-06 FY 04-05 FY 05-06 FY 04-05 • Revenues Program revenues Charges for services $ 7.8 $ 6.1 $ 9.7 $ 10.5 $ 17.5 $ 16.6 Capital Grants and Contributions - - 6.0 - 6.0 - • Operating grants and contributions 0.1 0.3 - - 0.1 0.3 Total Program revenues 7.9 6.4 15.7 10.5 23.6 16.9 • Taxes 10.8 10.3 - - 10.8 10.3 • Interest 0.9 0.9 0.6 0.6 1.5 1.5 • Other 8.7 7.8 0.1 0.2 8.8 8.0 • Total General revenues 20.4 19.0 0.7 0.8 21.1 19.8 Total revenues 28.3 25.4 16.4 11.3 44.7 36.7 Expenses • Community services 11.2 10.3 - - 11.2 10.3 Public works 3.1 2.2 - - 3.1 2.2 • Development services 4.7 4.2 - - 4.7 4.2 • Policy and administration 7.4 6.2 - - 7.4 6.2 • Interest on long-term debt 0.9 0.7 - - 0.9 0.7 • Sewer - - 1.4 1.3 1.4 1.3 Storm water - - 1.4 1.4 1.4 1.4 • Water - - 7.3 8.2 7.3 8.2 • Total expenses 27.3 23.6 10.1 10.9 37.4 34.5 Changes in net assets 1.0 1.8 6.3 0.4 7.3 2.2 Beginning net assets 192.1 190.3 76.0 75.6 268.1 265.9 • Ending net assets $ 193.1 $ 192.1 $ 82.3 $ 76.0 $ 275.4 $ 268.1 • • Revenues • Governmental Activities • Property taxes continue to be a major source of revenue for the funding of City programs. Oregon voters passed Measure 50, a State Constitutional Amendment, which fundamentally • changed property tax calculation and administration in Oregon in May 1997. Measure 50 • converted operating property tax authority from a "levy-based" system to a "rate-based" • system, and it became effective in FY 1997-98. The City's tax base, which was $6,891,856 in • FY 1997-98, was converted to a permanent tax rate of $2.5131 by the measure. The measure established FY 1997-98 assessed value at FY 1995-96 values less 10 percent. 18 • • The permanent rate is multiplied by the assessed value each year to arrive at the tax authority for that year. Assessed value growth is limited to 3 percent per year, plus a pro-rated share of new construction and annexations. The City has seen significant growth in construction since then and the annexation of the Walnut Island area which occurred in FY 1999-00. • • Measure 50 did not change the basis for calculating General Obligation (GO) debt service • levies. GO debt service levies are calculated to produce enough tax revenues that (when • combined with other resources such as interest earnings and fund balance) will be enough to • pay debt service due on these voter approved bonds. On May 21, 2002, voters approved a • bond measure in the amount of $13.0 million for a new library. The City sold the bonds to the Oregon Economic and Community Development Department. Taxes collected through the tax levy will repay this bonded debt. • Both other revenues and charges for services combined constitute 58 percent of total revenues and the primary sources include the following: • • • Franchise fees are charged to public utilities for the use of the public right-of-way. Franchised activities paying the fee include electricity, natural gas, telecommunications, cable television, and solid waste haulers - $3,042, 187. • • Intergovernmental revenue is the other significant revenue category in other revenues and totals $5,152,236. These revenue sources include state shared revenues • such as gas tax, cigarette tax, liquor tax, and revenue sharing. In addition, this category also includes the City's portion of the Washington County Cooperative Library System (WCCLS) levy and the countywide Hotel/Motel Tax. Charges for service includes a variety of land use planning and permit fees, library • fines, system development charges, and other miscellaneous types of fees and • charges - $7,791,508. • • • Governmental Activities Fiscal Year 2006 Revenues by Source • Taxes, $28,348,486 • $10,804,524 Interest, • 38% $922,508 . 3% Other, • - t $8,696,437 Operating x • 31% Grants and • Contribution Charges for • $133,509 Service, • 1% $7,791,508 27% • • .19 • • • • Business-type Activities • Charges for services represent 93 percent of total revenues 'and are composed of fees that are charged to all users for services provided such as water, sanitary sewer, and storm water. • The sanitary and storm water fees are established by Clean Water Services (CWS) and are set • by the agency each year. The City Council, through an intergovernmental agreement with • other water system participants, sets the water rates. • The City is continuing to pursue efforts to secure a long-term water source to meet future demands over the next 50 years. The final decision on the source(s) will impact how future water rates will be established. Over the past six years, the City Council has approved a yearly 6 percent water rate adjustment in anticipation of having to issue revenue bonds to finance capital projects associated with these potential water sources. • Sanitary rates have been traditionally adjusted by CWS annually with the increase in revenues being dedicated to debt service requirements for treatment plant expansions made by agency. Storm water rates have not been adjusted for several years. • • Expenses Governmental Activities • • Expenses related to governmental activities are shown in the chart below and are expressed as a percent of total expenses for all governmental activities. • The majority of the expenses (41 percent) relate to the City Library and Police Department • within the Community services activity. • • Overall, expenses in Governmental activities increased by $3.7 million over the previous • fiscal year. The majority of this increase can be attributed to adjustments in construction in. progress that were made between the two fiscal years now being reported in the Changes in Net Assets. e Expenses by Service Type Fiscal Year 2006 • Governmental Activites • $27,361,003 • Interest on long- • Policy and term debt, • administration, $935,359 Community $7,447,828 3% services, • 27% $11,241,521 • 41% U61 WE 1;i • Development • services, Public works, . $4,669,452 $3,078,772 • 17% 11% • • • 20 • • • • • Business-type Activities • The majority of the expenses (72 percent) relate to the drinking water service provider activity. The City does not have its own water source, so it has to purchase water from other agencies. This water purchase expense is a major portion of the total water expenses. The decrease of $0.9 million in water is related to a sign cant adjustment in depreciation and accumulated depreciation in the previous fiscal year. In FY 2004-05, the City upgraded its • fixed assets software, which provided the City the ability to more accurately calculate depreciation. • • Both the sanitary and storm water expenses increased only slightly from the previous fiscal year. Neither of these activities have experienced major growth or expansion of their • respective systems, so expenses continue to increase only moderately due to increases in wages and benefits and material costs such as fuel. • • Expenses by Service Type Fiscal Year 2006 • Business-type Activites • $10,136,910 . Sewer Storm water, • $1,454,150 $Q91,158 . 14% 14% • • Water . $7,291,602 • 72% • Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. • Governmental Funds • • The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful • measure of the City's net resources available for spending at the end of the fiscal year. • • As of the end of the fiscal year 2006, the Gtys governmental funds reported combined ending fund balances of $25.0 million. Of this amount, $2.7 million is reserved for capital projects and prepaid insurance. • General Fund The General Fund is the chief operating fund of the City. At the end of the fiscal year 2006, the unreserved fund balance was $8.4 million that can be used for funding of City programs. This was a slight increase of $0.2 million. This increase can be primarily attributed to the combined increased revenues from franchise fees, property taxes, and charges for service. • ' 21 • • • • Bancroft Debt Service Fund • Revenue in this fund is derived from assessments on properties that participate in local • improvement districts and from proceeds of Bancroft bonds to retire short-term debt issued • to fund the local improvements. At the end of the FY 2006, the fund balance was $1.6 • million, an increase of $0.7 million. This increase is due to a large pre-payment of assessments by a property owner within one of the local improvement districts. • • Gas Tax Fund • This fund records shared revenues from State and County taxes on sale and use of motor vehicle fuel. Funds are used for construction, reconstruction, improvement, repair, maintenance, operation, and use of public highways, roads, streets, and roadside rest areas. • This revenue source can also be used for street lighting and cleaning, storm drainage, traffic control devices, and cost of administration. At the end of the FY 2006, the fund balance was $2.0 million, an increase of $0.7 million. This fund balance will eventually be used to • completed capital projects • Parks System Development Charge (SDC Fund • This fund was established in FY 2006 to track the revenues associated with the collection of Parks System Development Charges (SDC's). Park SDC's are charged when a building permit is issued for any new residential, multi-family, or commercial construction, additions, alterations, or change in use. Funds collected are used to finance the acquisition, • development, and expansion of additional recreation spaces and facilities that are included in the City's Park Master Plan. At the end of the FY 2006, the fund balance was $2.8 million. • This fund balance will eventually be used for the acquisition and development of parks • throughout the City. • Proprietary Funds • The City's proprietary funds include the Sanitary Sewer, Storm Sewer, Water, and Internal • Services Funds. • The unrestricted net assets of the business-type activities which include the Sanitary Sewer, Storm Sewer, and Water Funds at the end of the year amounted to $20.5 million. The total growth in net assets for these funds was slightly over $0.2 million. The factors concerning the finances of the funds have already been addressed in the discussion of the City's business-type activities. • • General Fund Budgetary Highlights • The City Council approved seven budget amendments to the adopted General Fund budget. Total increase in appropriations was $114,029. The changes are summarized as follows: • • • Increase of $22,254 in the Street Maintenance Division for the purchase of a utility truck chassis that was originally scheduled to be replaced in FY 2004-05. • • Increase of $21,000 in the Street Maintenance Division for the replacement of a • plotter and computer. • Increase of $41,240 in the Police Department in recognition of a Police Buffer Zone • Protection Plan Grant. 22 • • • • • • $12,500 increase in the budget for Mayor and Council for the funding of a contract • for graphic design consulting services. • Increase of $6,656 for the City's contribution to the League of Oregon Cities for • telecommunications litigation expenses. • $1,500 increase to fund a portion of the Tualatin River National Wildlife Refuge grand opening ceremony. • Increase of $8,879 in the budget for Mayor and Council for the funding of Family Week activities and other miscellaneous items. • Capital Asset and Debt Administration • Capital Assets • Governmental Activities • The City's investment in capital assets for its governmental activities as of June 30, 2006, amounts to $181.6 million (net of accumulated depreciation). This investment in capital assets primarily includes land, buildings, machinery and equipment, office equipment, and • infrastructure. The infrastructure includes roads, curbs and sidewalks, signage, streetlights; 0 and right-of-ways. The total decrease in the City's investment in governmental activities capital assets was less than 1 percent and this was primarily due to normal depreciation. • Business-type Activities • • The City's investment in capital assets for its business-type activities as of June 30, 2006, 0 amounts to $58.1 million (net of accumulated depreciation). In addition to machinery, equipment, and vehicles, the capital assets include the sanitary sewer collection system, storm 0 drainage, and water systems. Total increase in the City's investment in business-type • activities capital assets was approximately 12 percent. This is due to further expansion of the • City's water reservoir system City of Tigard, Oregon Capital Assets at Year-end (Net of Depreciation) • (in millions) • • Goverrrrrental Business-type • Activities Activities Total • FY 05-06 FY 0405 FY 05-06 FY 0405 FY 05-06 FY 0405 • Land $ 5.8 $ 5.8 $ 1.0 $ 1.0 $ 6.8 $ 6.8 Construction in progress 0.5 0.5 1.5 1.6 2.0 2.1 Buildings and building improvements 16.0 16.4 0.7 0.6 16.7 17.0. • Land improvements 1.1 1.6 - - 1.1 1.6 0 Sev~tr system - - 15.2 13.2 15.2 13.2 • Storm drainage system - - - 10.9 10.0 10.9 10.0 • Water system - - 28.5 25.1 28.5 25.1 • Machinery and equipment 0.5 0.6 - - 0.5 0.6 • Autos and tricks 0.7 0.5 0.3 0.4 1.0 0.9 • Office equipment - - - - - - • Infrastn~cture 157.0 157.9 - - 157.0 157.9 Total capital assets $ 18L6 $ 183.3 $ 58.1 $ 519 $ 239.7 $ 235.2 • 0 Additional information on the City's capital assets can be found in the notes on pages 48-49 • of this report. 23 • • 0 • Debt Outstanding As of year-end, the City had three types of debt currently outstanding, which are all governmental. They include general obligation bonds ($11.6 million) secured by the City's authority to levy property taxes, and assessment bonds ($2.3 million) secured by installment • payment contracts with property owners. The third is a loan ($1.5 million) through the • Oregon Economic and Community Development Department (OECDD). This loan was secured by current and future parksystem development charges collected by the Gty. • • The most recent bond rating occurred in 1993 and the rating given by Moody's was Al. Existing debt levels have no direct impact on current or future City operations. • The State of Oregon limits the amount of general obligation debt that cities can issue to 3 • percent of the real market value of all taxable property within the Cry limits. The City's • total outstanding general obligation debt is significantly below the 3 percent limit of $170.8 million. • Additional information on the City's debt can be found on pages 50-51 of this report. • • City of Tigard, Oregon Outstanding Debt at Fiscal Year-end (in millions) • Total Totals Percentage FY 05-06 FY 0405 Change Governmental: • General obligation $ 11.6 $ 12.1 (4.10%) • Local improvement 2.3 3.1 (25.8%) • Long-term note 1.5 1.7 (11.8%) Total outstanding debt $ 15.4 $ 16.9 (8.9%) • • Economic Factors • • The unemployment rate for the Portland metro area was 5.3 percent at the end of the fiscal • year, June 30, 2006. This is a decrease from the same period last year, when the rate was 6.2 percent. While the rate is declining, it is still above the national average of 4.6 percent for June 2006. and 5 percent for June 2005. • The City of Tigard issues licenses for businesses operating within the City limits. As of • February 2006, there were 3,124 businesses licensed in the City with a total of 30,616 employees. The U.S. Economic Census, which takes place every five years, provides data on • industry sales within the City. Wholesale trade is generating the most dollars in shipments, sales, and receipts. Retail trade employed the most people, and also ranks second in the amount of dollars generated. Almost 70 percent of land within the City is planned to accommodate residential use, ranging from low density single family homes to high density multi-family dwellings. The City tracks buildable lands through a yearly inventory process. At the end of 2005, less than 10 percent of land within the City was considered buildable. Single family home construction, which includes free standing and attached, hit a high of 335 units in 1995 and • dipped to a low of 187 in 2002. • 24 • • • • • The number constructed went above 300 in 2005 for the first time since 1996. Residential • construction valuation over the last three years has been consistent at around $80 million per • year. Total housing units in the City totaled 19,415 at the end of April 2006. • The City of Tigard has developed a comprehensive long-term financial forecast every year • since the 1980's. This forecast allows the City to project expected revenues and expenditures for each of its funds to help anticipate financial requirements. • The comprehensive long-term financial forecast continues to be central to Tigard's financial management strategy. By forecasting and anticipating financial trends, Tigard can develop • strategies to respond to these emerging financial trends. • • The current forecast shows that in the short term the City's financial condition is stable in • most funds. The FY 2006-07 budget took the initial step in addressing a portion of the • projected General Fund deficit that had been forecasted to occur earlier than what is now • projected. By including a utility franchise fee, the City can delay the deficit by one year. This revenue source would continue to create a more stable financial condition over time, • although more substantive options might need to be considered in the future. • The City will also need to establish sound financing for the capital improvement program • that is needed in order to maintain and improve the City's infrastructure. A Downtown • Revitalization Plan was adopted by the City Council and recommended the creation of an • Urban Renewal District. The creation of the district and use of tax increment financing was • approved by the voters in May 2006. The City will still need to fund some catalyst projects • that are identified in the Plan and financing of these projects will need to come from other . sources. The voters in Washington County and the City of Tigard just recently approved an • operational tax levy throughout the County that will help in sustaining the operation of the City's library. • Requests for Information • • This financial report is designed to provide a general overview of the City of Tigard's • finances for all those with an interest in the City's finances. Questions concerning any of the • information provided in the report or requests for additional financial information should be • addressed to the Financial and Information Services Director, City of Tigard, 13125 SW Hall • Blvd., Tigard, Oregon 97223. • • • • • • • • • • • • • • • • 25 • • r - • BASIC FINANCIAL STATEMENTS TIGARD • • QTY OF TIGARD, OREGON STATEMENT OF NET ASSETS June 30, 2006 • • • • • Governmental Business-Type • Activities Activities Total • ASSETS Cash and investments $ 28,698,818 $ 23,450,363 S 52,149,181 • Accounts receivable 615,462 2,532,370 3,147,832 • Property taxes receivable 310,629 60 310,689 Assessment liens receivable 1,639,875 - 1,639,875 Prepaid expenses 20,291 - 20,291 • Inventory 46,770 82,357 129,127 . Capital assets: • Land and construction in process 6,278,200 2,452,402 8,730,602 Other capital assets (net of accumulated depreciation) 175,336,485 55,605,806 230,942,291 • Total Assets 212,946,530 84,123,358 297,069,888 • LIABILITIES • Accounts payable and accrued liabilities 1,554,857 1,853,428 3,408,285 • Customer deposits 1,521,650 89,045 1,610,695 • Due to (from) other activities 258,892 (258,892) - Accrued interest payable 380,516 - 380,516 • Noncurrent liabilities: • Accrued compensated absences 834,125 139,487 973,612 • Due within one year. Notes payable 222,820 - 222,820 • Bonds payable 505,836 505,836 • Special assessment bonded debt • with government commitment 206,199 206,199 Due in more than one year. • Notes payable 1,242,187 1,242,187 • Bonds payable 11,066,369 11,066,369 Special assessment bonded debt with government commitment 2,076,747 - 2,076,747 • • Total Liabilities 19,870,198 1,823,068 21,693,266 NET ASSETS • Invested in capital assets, net of related debt 168,577,473 58,058,208 226,635,681 • Restricted for. • Capital projects 2,792,703 3,761,976 6,554,679 Debt service - • Other purposes 20 291 - 20,291 • Unrestricted 21,685,865 20,480,106 42,165,971 • Total Net Assets $ 193,076,332 $ 82,300-190 $ 275,376,622 • • • • The accompanying notes are an integral pan of the basic financial statements. • • • • 26 • • CITY OF TIGARD, OREGON STATEMENT OF ACTIVITIES For the fiscal year ended June 30, 2006 Program Revenues Charges Operating Capital. for Grants and Grants and Functions /Programs Expenses Services Contributions Contributions t Governmental activities: • Community services $ 11,241,521 $ 146,798 S 109,449 $ • Public worls 3,078,772 2,165,451 3,900 Development services 4,669,452 4,463,283 20,160 Policy and administration 7,447,828 1,015,976 - • Interest on long-term debt 935,359 - - • Total governmental activities 27,372,932 7,791,508 133,509 - Business-type activities: Sewer 1,454,150 1,555,358 1,645,651 Storm Water 1,391,158 1,176,816 970,276 • Water 7,291,602 6,953,809 3,461,937 S Total business-type activities 10,136,910 9,685,983 6,077,864 • Total $ 37,509,842 $ 17,477,491 $ 133,509 $ 6,077,864 General Revenues: • Property taxes, levied for general purposes Property taxes, levied for debt service • Franchise taxes • Restricted intergovernmental revenues (excluding grants) Unrestricted intergovernmental revenues Interest earnings a Mscellaneous • Total general revenues Change in net assets • Net assets--beginning Net assets--ending The accompanying notes are an integral part of the basic financial statements. 27 Net (Expense) Revenue and Changes in Net Assets Primary Government • Governmental Business-type Activities Activities Total i • $ (10,985,274) $ $ (10,985,274) • (909,421) (909,421) (186,009) (186,009) (6,431,852) (6,431,852) • (935,359) (935,359) • (19,447,915) - (19,447,915) • 1,746,859 1,746,859 • 755,934 755,934 3,124,144 3,124,144 . 5,626,937 5,626,937 • (19,447,915) 5,626,937 (13,820,978) • 10,048,589 10,048,589 755,935 755,935 3,042,187 3,042,187 • 3,288,530 3,288,530 1,863,706 1,863,706 922,508 580,004 1,502,512 • 513,943 94,427 608,370 • 20,435,398 674,431 21,109,829 987,483 6,301,368 7,288,851 • 192,088,849 75,998,922 268,087,771 . $ 193,076,332 $ 82,300,290 $ 275,376,622 28 CITY OF TIGARD, OREGON GOVERNMENTAL FUNDS BALANCE SHEET - June 30, 2006 Bancroft Other Total • General Gas Tax Parks SDC Debt Service Governmental Governmental Fund Fund Fund Fund Funds Funds ASSETS Cash and investments S 9,242,444 $ 3,230,796 f 2,792,703 S 1,591,679 S 10,537,583 $ 27,395,205 - Accounts receivable 217,293 - - 158,185 375,478 Property taxes receivable 287,303 - 23,326 310,629 Assessment hens receivable 1,549,529 328,511 1,878,040 • Prepaid insurance 20,291 20,291 • Total assets S 9,767,331 $ 3,230,796 $ 2,792,703 S 3,141,208 $ 11,047,605 f 29,979,643 • LIABILITIES • Accounts payable and accrued liabilities S 761,655 $ 98,152 $ - S S 526,235 S 1,386,042 Customer deposits 419,903 412,646 689,101 1,521,650 • Deferred revenues: Property taxes 1%,689 - 15,571 212,260 Assessment liens 1,549,529 328,511 1,878,040 • Accrued interest on delinquent assessments 2,661 2,661 Total liabilities 1,378,247 510,798 1,552,190 1,559,418 5,000,653 • FUND BALANCES - Reserved for. • Capital project 2,719,998 - 2,719,998 Prepaid insurance 20,291 - 20,291 - Unreserved, reported in: • General fund 8,368,793 8,368,793 Special revenue funds 2,792,703 7,415,574 10,208,277 • Capital projects funds - 1,811,861 1,811,861 • Debt service funds 1,589,018 260,752 1,849,770 Total fund balances 8,389,084 2,719,998 2,792,703 1,589,018 9,488,187 24,978,990 • Total liabilities and fund balances $ 9,767,331 S 3,230,796 S 2,792,703 $ 3,141,208 S 11,047,605 - Amounts reported for governmental activities in the Statement • of Net Assets are different because: • Capital assets used in governmental activities are not financial • resources and therefore are not reported in the funds, net • of accumulated depreciation of $52,172,475 181,614,685 • Other long-term assets are not available to pay for currem-period expenditures and, therefore are deterred in the funds: - Assessment hens (includes interest on delinquent liens) 1,880,701 • Property taxes earned but not available 212,260 . Internal service funds are used by management to charge the • cost of administrative functions as well as fleet and property management to individual funds. A portion of the assets and • liabilities of the internal service funds are included in • governmental activities in the statement of activities. 776,677 Accrued compensated absences are not due and payable in the • current period and therefore are not reported in the funds. (68607) • Long-term habilnties - not reported in the funds: • Bonds, notes payable and other liabilities, not due and • payable in current period (15,320,158) Accrued interest payable, not due and payable in the current period (380,516) • Net Assets of Governmental Activities S 193,076,332 • The accompanying notes are an integral pan of the basic financial statements. • • • • 29 • • • • CITY OF TIGARD, OREGON • GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE • For the fiscal year ended June 30, 2006 • • • . Bancroft Other Total General Gas Tax Parks SDC Debt Service Governmental Governmental • Fund Fund Fund Fund Funds Funds • REVENUES . Taxes S 9,998,252 $ s $ $ 819,634 $ 10,817,886 Franchise fees 3,042,187 3,042,187 • Special assessments - 1,421,765 1,421,765 Licenses and permits 354,545 1249,686 - 3,248,488 4,852)19 • Intergovernmental revenues 2,882,918 2,382,666 20,160 5,285,744 Charges for service 1,700,433 14,129 974,923 2,689,485 Fines and forfeitures 702,469 702,469 • Interest earnings 290,879 71,287 46,973 231,108 263,388 903,635 • Miscellaneous 18,892 35,088 - 448,971 502,951 • Total revenues 18,990,575 2,503,170 1,296,659 1,652,873 5,775,564 30,218,841 • • EXPENDITURES Current operating: • Community services 11,377,118 11,377,118 • Public works 2,273,569 - 2,273,569 Development services 2,673,696 419,815 1,615,922 4,709,433 • Policy and administration 3,788,655 272,323 503,422 4,564,400 • Debt service: • Principal 821,321 704,965 1,526,286 Interest 146,831 550,474 697,305 • Capital outlay 306,656 - 2,045,467 2,352,123 • Total expenditures 20,113,038 998,794 968,152 5,420,250 27,500,234 • Excess (deficiency) of revenues . over (under) expenditures (1,122,463) 1,504,376 1,296,659 684,721 355,314 2,718,607 • • OTHER FINANCING SOURCES (USES) • Transfers in 1,355,068 1,900,000 - 791,734 4,046,802 • Transfers out (29,265) (763,537) (403,956) (2,850,044) (4,046,802) • Total other financing sources (uses) 1,325,803 (763,537) 1,496,044 (2,058,310) • Net change in fund balances 203,340 740,839 2,792,703 684,721 (1,702,996) 2,718,607 • • Fund balances - beginning 8,185,744 1,979,159 904,297 11,191,183 22,260,383 • Fund balances - ending $ 8,389,084 $ 2,719,998 $ 2,792,703 $ 1,589,018 $ 9,488,187 $ 24,978,990 • • • The accompanying notes are an integral part of the basic financial statements. • • • • • • • • • • • 30 • • CITY OF TIGARD, OREGON RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the fiscal year ended June 30, 2006 • Net change in fund balances--total governmental funds $ 2,718,607 Amounts reported for governmental activities in the • Statement of Activities are different because: • Governmental funds report capital outlays as expenditures • while governmental activities report depreciation expense to • allocate those expenditures over the life of the assets. This is • the amount by which capital outlay exceeded depreciation in the current period. Expenditures for capital assets - less donated $ 2,245,638 Less current year depreciation (4,139,788) (1,894,150) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. . Property taxes (13,358) • Assessment Liens (1,465,774) (1,479,132) . Repayment of bond principal is an expenditure in the • governmental funds, but the repayment reduces long-term • liabilities in the Statement of Net Assets. • Principal payments 1,526,286 Some expenses reported in the Statement of Activities • do not require the use of current financial resources • and therefore are not reported as expenditures in governmental funds. Compensated absences 135,027 Accrued interest on debt (23,371) 111,656 • Internal service funds are used by management to charge the cost of administrative functions as well as fleet and property management to individual funds. The net revenue of a portion • of internal service funds is reported with governmental activities. • Change in Net Assets - Internal Service Funds 5,681 • Less amount attributable to Business-Type Activities (1,465) 4,216 Change in Net Assets of Governmental Activities $ 987,483 The accompanying notes are an integral part of the basic financial statements. 31 • • • • CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF NET ASSETS June 30, 2006 • • • • Business-type Activities Governmental Enterprise Funds Activities • • Internal • Sanitary Storm Service • Sewer Sewer Water Totals Funds ASSETS Current assets: • Cash and investments S 8,379,524 $ 2,647,657 $ 12,423,182 S 23,450,363 S 1,303,613 Accounts receivable 1,104,512 228,836 1,199,022 2,532,370 1,819 • Property taxes receivable - - 60 60 • Inventory - - 82,357 82,357 46,770 • Total current assets 9,484,036 2,876,493 13,704,621 26,065,150 1,352,202 • Capital assets: Land and construction in process 219,043 9,797 2,223,562 2,452,402 - • Other capital assets (net of accumulated depreciation) 15,262,807 11,012,966 29,330,033 55,605,806 • Total noncurrent assets 15,481,850 11,022,763 31,553,595 58,058,208 • Total assets 24,965,886 13,899,256 45,258,216 84,123,358 1,352,202 • • LIABILITIES • Current liabilities: • Accounts payable and accrued liabilities 1,314,820 64,294 474,314 1,853,428 168,815 Customer deposits 2,118 86,927 89,045 • Noncurrent liabilities: • Accred compensated absences 31,362 26,064 82,061 139,487 147,818 • Total liabilities 1,346,182 92,476 643,302 2,081,960 316,633 • • NET ASSETS • Invested in capital assets 15,481,850 11,022,763 31,553,595 58,058,208 - Restricted for capital projects 3,550,776 - 211,200 3,761,976 - • Unrestricted 4,587,078 2,784,017 12,850,119 20,221,214 1,035,569 • Total net assets S 23,619,704 $ 13,806,780 S 44,614,914 82,041,398 S 1,035,569 • • Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 258,892 • Net assets of business-type activities $ 82,300,290 • • • • The accompanying notes are an integral part of the basic financial statements. • • • • • • • • • 32 • • • CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS • For the fiscal year ended June 30, 2006 • • Business-type Activities Governmental • Enterprise Funds Activities • • Internal • Sanitary Storm Service • Sewer Sewer Water Totals. Funds • OPERATING REVENUES • Service charges S 1,555,358 S 1,176,816 S 6,952,344 8 9,684,518 S 5,589,135 • Miscellaneous - 94,427 94,427 14,656 Total operating revenues 1,555,358 1,176,816 7,046,771 9,778,945 5,603,791 • • OPERATING EXPENSES Salaries and wages 444,034 411,511 1,026,261 1,881,806 3,088,888 • Contracted services 5,278 211,081 90,942 307,301 825,281 • General, administrative and other 91,416 139,158 4,137,662 4,368,236 1,708,926 Depreciation 493,155 367,446 903,056 1,763,657 • Services performed by other funds 420,267 261,962 1,133,681 1,815,910 • Total operating expenses 1,454,150 1,391,158 7,291,602 10,136,910 5,623,095 • Operating income (loss) 101,208 (214,342) (244,831) (357,965) (19,304) • • NONOPERATING REVENUES Investment revenue 197,909 68,830 313,265 580,004 25,165 • System development revenue 248,612 - 1,600,927 1,849,539 - • Total nonoperating revenue 446,521 68,830 1,914,192 2,429,543 25,165 • Net income before contributions (loss) 547,729 (145,512) 1,669,361 2,071,578 5,861 • Capital contributions 1,397,039 970,276 1,861,010 4,228,325 • • (Mange in net assets 1,944,768 824,764 3,530,371 6,299,903 5,861 . Net assets--beginning 21,674,936 12,982,016 41,084,543 1,029,708 • Net assets--ending $ 23,619,704 S 13,806,780 $ 44,614,914 $ 1,035,569 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 1,465 • Change in net assess of business-type activities S 6,301,368 • • • • • • The accompanying notes are an integral pan of the basic financial statements. • • • • • • • • • 33 • • • • • CITY OF TIGARD, OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the fiscal year ended June 30, 2006 - Governmental • Business-type Activities - Enterprise Funds Activities • Sanitary Storm Internal Sewer Sewer Water Totals Service Funds • • CASH FLOWS FROM OPERATING ACTIVITIES • Receipts from customers S 1,513,900 S 1,175322 S 6,727,745 S 9,416,967 S 5,589,135 Payments to suppliers 4,880 (352,021) (4517,702) (4,864,843) (2,555,234 • Payments to employees (432,604) ) (413,215) (1,008,694) (1,854,513) (3,075,124) • Other receipts 94,421 94,411 14,656 . Internal activitypaymenu to other funds (420,267) (261,962) (1,133,681) (1,815,910) S Net cash provided (used) byoperating activities 665,909 148,124 162,089 976,122 (26,567) • CASH FLOWS FROM CAPITAL AND RELATED • FINANCING ACTIVITIES • System development revenue 248,612 1,600,927 1,849,539 • Acquisition of capital assets (1,094,287) (415,803) (2,221,486) (3,731576) • Net cash (used) bycapital and related • financing activities (845,675) (415,803) (620559) (1,882,037) • CASH FLOWS FROM INVESTING ACTIVITIES • Interest earnings 197,909 68,830 313,265 580,004 25,165 • Net increase (decrease) in cash and cash equivalents 18,143 (198,849) (145,205) (325,911) (1,402) • Balances--beginning of the year 8,361,381 2,846,506 12,568,387 23,776,274 1,305,015 • Balances--end of the year $ 8,379,524 $ 2,647,657 $ 12,423,182 $ 23,45_363 $ 1,303,613 • RECONCILIATION OF OPERATING INCOME (LOSS) TO • NET CASH PROVIDED BY OPERATING ACTIVITIES • Operating income (loss) S 101,208 $ (214,342) S (244,831) $ (357,965) S (19,304) Adjustments to reconcile operating income to net cash • provided by operating activities: • Cash flows reported in other categories: • Depreciation expense 493,155 367,446 903,056 1,763,657 - • Change in assets and liabilities: • Receivables (41,458) (1,493) (168,346) (211,297) 1,635 • Inventory - 54,384 54,384 (11,952) Accounts payable and accred liabilities 101,574 (1,783) (343,482) (243,691) (10,710) • Accrued compensated absences 11,430 (1,704) 17,567 27,293 13,764 . Unearned revenue - (6) (6) • Cistomerdeposits (56,253) (56,253) - • Net cash provided (used) by operating activities $ 665,909 S 148,124 S 162,089 $ 976,122 S (26567) • Supplemental Schedule of Noncash • Capital and Related Financing Activities: • Contributed sewer, storm and water lines $ 1,397,039 $ 970,276 $ 1,861,010 $ 4,228,325 • • The accompanying notes are an integral pan of the basic financial statements. 34 • - • CITY OF TIGARD, OREGON • • STATEMENT OF PLAN NET ASSETS • PENSION TRUST FUND • June 30, 2006 • • Cash and investments $ 12,554,462 • Net assets held in trust for pension benefits $ 12,554,462 • • • • • STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUND • For the fiscal year ended June 30, 2006 • • • Additions: Contributions - employer $ 1,204,285 Contributions - employee 2,515 • Investment income 886,507 Total additions 2,093,307 • Deductions: • Benefit payments and withdrawals (839,261) • Increase in net assets 1,254,046 Net assets held in trust for pension benefits • Beginning of year 11,300,416 • End of year $ 12,554,462 • • • The accompanying notes are an integral part of the basic financial statements. • 35 • • • ~i - ~ - ~ ~ C/) R3 U _ _ ~ ~i ~ - ~ ~ ~ ~1 ~ ~ - ~ _ - I _ . _ - MM~ h~l ~ ~ 4, - ~ ~ . ~ ~ , F-~ ~ . , - _ ~ _ ~ - ~ ~ • • City of Tigard, Oregon Notes to Basic Financial Statements • 1. Summary of Significant Accounting Policies: • • The City of Tigard, under its Charter of 1961, is governed by an elected mayor and four council members who comprise the City Council. The City Council appoints a City • Manager, who acts as the administrative head of government for the City. The City has no • component units. • The financial statements of the City have been prepared in accordance with generally • accepted accounting principles (GAAP). GAAP statements include all relevant • Governmental Accounting Standards Board (GASB) pronouncements. The financial statements have incorporated all applicable GASB pronouncements as well as Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting • Procedures issued on or before November 30, 1989, unless those pronouncements conflict ' with or contradict GASB pronouncements. • The City applies the provisions of all applicable GASB Statements that define requirements and the reporting model for the annual financial reports of state and local governments. The City has recorded capital and certain other long-term assets and liabilities in the statement of net assets, reported all revenues and the cost of providing services under the accrual basis of • accounting in the statement of activities, and uses the direct method of reporting cash flows. • • Basic Financial Statements • • Basic financial statements are presented at both the government-wide and fund financial level. Both levels of statements categorize activities as either governmental or business-type. Governmental activities, which are normally supported by taxes and intergovernmental • revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. • Government-wide financial statements display information about the City as a whole. For the most part, the effect of interfund activity has been removed from these statements. These statements focus on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal year. These aggregated statements consist of the Statement of Net Assets and the Statement of Activities. The Statement of Activities demonstrates the degree to which the direct expenses of a given • function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are • restricted to meeting the operational or capital requirements of a particular function or • segment. Indirect expenses are recovered through internal service fund charges. These • indirect expenses are allocated based on a full-cost approach, thereby allocating indirect • expenses among functions with the objective of allocating all expenses. Taxes and other • items not properly included among program revenues are reported instead as general • revenues. • 36 • • • City of Tigard, Oregon • Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies, Continued: • • Separate financial statements are provided for governmental funds, proprietary funds, and • the pension trust fund, even though the pension. trust fund is excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. • Fund financial statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. Funds are classified and summarized as governmental, proprietary, or fiduciary. • Currently, the City has governmental, proprietary, and fiduciary fund s. Non-major ~'Pe • funds are combined into a single column in the basic financial statements and are detailed in the supplemental information. , Basis of Presentation The financial transactions of the City are recorded in individual funds. Each fund is 46 accounted for by providing a separate set of self-balancing accounts that comprises its assets, • liabilities, fund equity, revenues and expenditures/expenses. • • Professional standards het. forth minimum criteria (percentage of the assets liabilities, revenues or expenditures/expenses or either fund category or the governmental and • enterprise combined) for the determination of major funds. The City electively added funds • as major funds, which either had debt outstanding or specific community focus. Non-major • funds are combined in a column in the fund financial statements and detailed elsewhere in • the financial report. Measurement Focus and Basis of Accounting • Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus. • The government wide, proprietary fund, and fiduciary fund financial statements are presented on a full accrual basis of accounting with an economic resource measurement focus. An economic resource focus concentrates on an entity or fund's net assets. All transactions and events that affect the total economic resources (net assets) during the period are reported. An economic resources measurement focus is inextricably connected with full accrual accounting. Under the full accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are. incurred, • regardless of the timing of related cash inflows and outflows. • • Governmental funds financial statements are presented on a modified accrual basis of • accounting with a current financial resource measurement focus. This measurement focus • concentrates on the fund's resources available for spending currently or in the near future. • Only transactions and events affecting the fund's current financial resources during the • period are reported. • • 37 • • City of Tigard, Oregon Notes to Basic Financial Statements • 1. Summary of Significant Accounting Policies, Continued: • Similar to the connection between an economic resource measurement focus and full accrual accounting, a current financial resource measurement focus is inseparable from a modified accrual basis of accounting. Under modified accrual accounting, revenues are recognized as • soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available • if they are collected within 60 days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Property taxes, intergovernmental and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered susceptible to accrual as revenue of the current period. All other revenues are considered to be measurable and available only when cash is received by the City. A deferred revenue liability arises in the governmental funds balance sheet when potential revenue does not meet both the measurable and available criteria for recognition in the current year. This unavailable deferred revenue consists primarily of uncollected property taxes and assessments not deemed available to finance operation of the current period. In the government-wide Statement of Activities, with a full accrual basis of accounting, revenue must be recognized as soon as it is earned regardless of its availability. • Thus, the liability created on the governmental fund balance sheet for unavailable deferred revenue is eliminated. Note that deferred revenues also" arise outside the scope of • measurement focus and basis of accounting, such as when the City receives resources before • it has a legal claim to them. For instance, when grant monies are received prior to the • incurrence of qualifying expenditures. • Similar to the way its revenues are recorded, governmental funds only record those expenditures that affect current financial resources. Principal and interest on general long- term debt are recorded as fund liabilities only when due, or when amounts have been accumulated in the debt service fund expenditures only to the extent that they are expected to be liquidated with expendable financial resources. In the government-wide financial S statements, however, with a full accrual basis of accounting, all expenditures affecting the economic resource status of the government must be recognized. Thus, the expense and related accrued liability for long-term portions of debt and compensated absences must be included. Since the governmental fund statements are presented on a different measurement focus and . basis of accounting than the government-wide statements' governmental column, a reconciliation is necessary to explain the adjustments needed to transform the fund based financial statements into the governmental column of the government-wide presentation. This reconciliation is part of the basic financial statements. S • • 38 • • • City of Tigard, Oregon Notes to Basic Financial Statements • L Summary of Significant Accounting Policies, Continued: • Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. ~ Operating revenues and expenses generally result from providing services, and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's Sanitary Sewer, Storm Sewer and Water Funds are charges to customers for sales and services. The Sanitary Sewer, Storm Sewer and Water Funds also recognize fees intended to recover the cost of connecting new customers to the City's utility systems as operating revenues. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and overheads, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non- • operating revenues and expenses. The fiduciary fund accounts for the resources held by the City in a custodial capacity, on behalf of the employees of the City. Assets, Liabilities, and Equity Receivables and Payables Property taxes are levied and become alien on July 1. Collection dates are November15, February 15, and May 15 following the lien date. Discounts are allowed if the amount due is received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are considered delinquent. • Inventories • Inventories of parts, materials and supplies are stated at cost on the fast-in, first-out basis in the proprietary funds. The purchases method is used in accounting for inventory for all funds on the budgetary basis. The consumption method is used for the government-wide presentation as well as the proprietary funds and business-type activities. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, pathways, street lights, .etc) are reported in the applicable governmental or business type , activities columns in the government-wide financial statements. Capital assets are charged to expenditures as purchased or constructed in the governmental 0 fund statements, and capitalized in the proprietary fund statements. Capital assets are 41 recorded at historical cost or estimated historical cost. Donated assets are recorded at 0 estimated fair market value as of the date of the donation. • 39 0 41 City of Tigard, Oregon Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies, Continued: Capital Assets, Continued: Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more, and an estimated useful life of greater than five years. Additions or improvements and • other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Other costs for repairs and maintenance are • expensed as incurred. • • Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of • Activities with accumulated depreciation reflected in the Statement of Net Assets and is provided on the straight-line basis over the following estimated useful lives: • Asset Years • Buildings and improvements 25-40 • Improvements other than buildings 10-20 0 Machinery and equipment 5-10 • Vehicles 5-10 • Utility systems 25-40 Infrastructure 20-40 Accrued Compensated Absences and Sick Pay • It is the City's policy to permit employees to accumulate earned but unused vacation and sick • pay benefits. There is no liability for unpaid accumulated sick leave, since the City does not have a policy to pay any amounts when employees separate from the City. All vacation pay • is accrued when incurred in the government-wide and proprietary fund financial statements. • A liability for these amounts is reported in the governmental funds only when it has • matured, for example, as result of employee resignations or retirements. • • Interfund Transfers • Interfund transfers are used to pay administrative services, provide funds for debt service, . • contribute toward the cost of capital projects, and provide operational resources. Transfers S for fiscal year ended June 30, 2006 are as follows: Transfers 0 From Other Transfers to Funds Other Funds • General Fund $ 1,355,068 $ 29,265 Gas Tax Fund - 763,537 • Parks System Development Fund 1,900,000 403,956 • Nonmajor Governmental Funds 791,734 2,850,044 • $ 4,046,802 $ 4,046,802 • • 40 • • • i • City of Tigard, Oregon Notes to Basic Financial Statements 41 1. Summary of Significant Accounting Policies, Continued: • Long-term Debt • In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type in the Statement of Net Assets. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs, which are immaterial, are treated as period costs • in the year of issue and are shown as other financing uses. • In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. • Fund Equity • • In the fund financial statements, governmental funds report reservations of fund balance for • amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. The City currently has .no designations of fund balance. Use of Estimates ' • • In preparing the City's financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported • amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. • Cash and Investments • Investments included in cash and investments are stated at cost, which is approximate to the fair value. Investments in the pension trust fund are stated at fair value. • For purposes of the statement of cash flows, the City considers the proprietary funds' cash and investments with initial maturities to the Caty of three months or less, and the amounts • in the Oregon State Treasurer's Investment Pool, to be cash equivalents. • • • 41 0 City of Tigard, Oregon Notes to Basic Financial Statements 1. Summary of Significant Accounting Policies, Continued: • Budget A budget is prepared for each fund, except for the Pension Trust Fund, essentially in accordance with the modified accrual basis of accounting used by governmental funds, which is in accordance with the legal requirements of Oregon Local Budget Law. • The resolution authorizing appropriations sets the maximum level of expenditures for each • fund. Appropriations may not be legally overexpended. Appropriations lapse at the end of • each fiscal year. Appropriations are made at the major program level for each fund, for example, Community Services, Public Works, Development Services, Policy and Administration, General Government, Debt Service, Capital Improvements and Contingency. The detail budget document is required to contain more detailed information for the above-mentioned expenditure categories. Budget amounts include original approved amounts and all subsequent appropriation transfers approved by the City Council. After budget approval, the City Council may approve supplemental budgeted appropriations if an occurrence, condition, or need exists which had not been ascertained at the time the budget was adopted. A supplemental budget may require hearings before the • public, publications in newspapers and approval by the City Council. Original and • supplemental budgets may be modified by the use of appropriations transfers between the • levels of control. Such transfers require approval by the City Council. Management may • not amend the budget without Council approval During the fiscal year ended June 30, • 2006, fourteen appropriation transfers were made to the budget. • The budgets for each of the funds include capital outlay appropriations. • Debt service is also budgeted separately. For GAAP presentation, the transfers from operating funds for services provided by the internal service funds and the General Fund • are considered revenues and expenses/expenditures, as appropriate, but are considered to • be interfund transfers for budgetary purposes. • 2. Fund Types: i • The City's financial operations are accounted for in the following funds: • Governmental Funds Governmental funds finance most governmental functions of the City. The acquisition, use • • and balances of the Cit/, s expendable financial resources and the related liabilities, • excluding those accounted for in proprietary funds, are accounted for through governmental funds.' The measurement focus is upon determination of changes in current • financial resources, rather than upon net income determination. The following are the City's major governmental funds: General Fund - This fund accounts for the City's general operations. It is used to account for all transactions not specifically required to be accounted for in the City's • other funds. • 42 • • • • City of Tigard, Oregon • Notes to Basic Financial Statements 2. Fund Types, Continued: • Gas Tax Fund - This fund records shared revenues from the State and County taxes on the sale and use of motor vehicle fuel. Funds are used for construction, reconstruction, improvement, repair, maintenance, operation and use of public • highways, roads, streets, and roadside rest areas. Monies may also be used for street • lighting and cleaning, storm drainage, traffic control devices and administration • costs. • • Parks System Development Charge Fund - This fund was established in fiscal • year 2005-06 to track the revenues associated with the collection of Parks System • Development Charges (SDC's). Park SDC's are charged when a building permit is • issued for any new residential, multi-family, or commercial construction, additions, alterations or change in use. Amounts collected are used to fund the acquisition, • development, and expansion of additional recreation spaces and facilities that are r included in the City's Park Master Plan. • Bancroft Debt Service Fund - This fund accounts for payment of special assessment improvement bond principal and interest. The principal source of revenue is the collection of assessments against benefited property, interest and contributions from other funds for their share of costs. • • Proprietary Funds • Proprietary funds are used to account for the acquisition, operation and maintenance of sewer, storm drainage, and water systems in the _ City. These funds are entirely or 0 predominantly self-supported, through user charges to customers. The measurement focus • is upon net income determination, rather than upon determination of changes in current • financial resources. The following are the City's major proprietary funds: • Enterprise Funds: • Sanitary Sewer Fund - This fund accounts for the City's sewer utility operations. • Storm Sewer Fund - This fund accounts for the City's storm drainage operations which consists of the following two budgetary funds: Storm Sewer Fund and 0 Water Quality/Quantity Fund. 0 Water Fund - This fund accounts for the City's water operations which consists of • the following three budgetary funds: Water Fund, Water SDC Fund and Water • CP Fund. • • • • • • • • 43 • • • • • City of Tigard, Oregon Notes to Basic Financial Statements • • 2. Fund Types, Continued: Additionally, the City reports the following fund type. Neither of these funds are major funds: • • Internal Service Funds: r Central Services Fund - This fund accounts for the central administrative • functions within the City which are generally allocated to other funds. • • Fleet/Property Management Fund - This fund accounts for all activity related • to the Fleet Maintenance and Property Management divisions in the Cary. r - Fiduciary Fund: • Pension Trust Fund - This fund accounts for the City's employee defined contribution pension plan. • Nonmajor Governmental Funds • Other governmental funds include nonmajor special revenue, debt service, and capital • projects funds of the City. The following lists all other governmental funds by 0 governmental fund type: • Special Revenue Funds: i • Criminal Forfeiture Fund • Traffic Impact Fee Fund • Electrical Inspection Fund • Underground Utility Fund • Insurance Fund • Building Fund Urban Services Traffic Impact Fee Fund • Urban Services Fund 0 Street Maintenance Fee Fund • • Debt Service Fund: • • General Obligation Debt Service i - Capital Projects Funds: • • Parks Capital Fund Facility Fund Wall Street Local Improvement District Fund • • 79th Avenue Local Improvement District Fund • 44 • • • City of Tigard, Oregon • Notes to Basic Financial Statements • 3. Cash and Investments: • The City maintains a cash and investment pool. that is available for use by all funds, except • the Pension Trust Fund. Each fund type's portion of this pool is displayed on the • combined balance sheet as "cash and investments". The investments of the Pension Trust 0 Fund are held separately from those of other City funds. • Cash and investments are comprised of the following at June 30, 2006: r Cash on hand $ 7,477 • Cash held by Department of Finance, Washington County 44,970 • Deposits with financial institutions 1,501,611 • Investments 50,595,123 . Total cash and investments $ 52,149,181 • • • Deposits • Deposits with financial institutions include bank demand deposits and time deposit accounts. The total bank balance is $1,963,412 (book balance is $1,501,611). Of these deposits, $100,000 was covered by federal depository insurance and $1,863,412 was collateralized with securities held by collateral pool managers. • Custodial credit risk - deposits. In the case of deposits, this is the risk that in the event • of bank failure,.the Caty's deposits may not be returned to it. Oregon Revised Statutes • require the depository institution to maintain on deposit, with a collateral pool manager, 0 securities having a value not less than 25 percent of the outstanding certificates of collateral issued by the pool manager. The Gty's deposits are fully collateralized in accordance with • state law. • • Investments • • State statutes authorize the City to invest primarily in general obligations of the U.S. • government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, bankers' acceptances, certain commercial paper and the State of Oregon Local Government Investment Pool. • Interest rate risk. In accordance with its investment policy, the Gty manages its exposure to declines in fair value by limiting the individual maturities in its investment portfolio to eighteen months or less. The City does have a provision in its investment policy that up to • twenty percent of the portfolio can have maturities from eighteen months to thirty-six • months. • • • • • • 45 • • 1 ~ • City of Tigard, Oregon Notes to Basic Financial Statements • • 3. Cash and Investments, Continued: • Custodial credit risk - investments. For an investment, this is the risk that, in the event • of failure of the counterparty, the Gty will not.. be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All of the • Gty s investments, except for the investment in the Local Government Investment Pool, which is not evidenced by securities, are held in safekeeping by the financial institution counterparty in the financial institution's general customer account name. • • The City participates in the Oregon State Treasurer's Local Government Investment Pool • (LGIP), an open-ended; no-load diversified portfolio created under ORS 294.805 to 294.895 that is not registered with the U.S, Securities and Exchange Commission as an • investment company. The LGIP is administered by the State Treasurer and the Oregon • Investment Council with the advice of the Oregon Short-Term Fund Board. These funds • must be invested and managed, as a prudent investor would, exercising reasonable care, skill • and caution. The Oregon Audits Division of the Secretary of State's Office audits the • LGIP annually. • The City employees participate in a defined contribution pension plan. These funds are • recorded in the City's Pension Trust Fund. The balance at June 30, 2006 is $12,554,462. This balance is not included in the government-wide or fund financial statements, but is shown separately on page 35. • As of June 30, 2006, the City had the following investments: • Percentage of • Investment Tyne Fair Value Cost Portfolio • State Treasurer's Local • Government Investment Pool $ 6,865,566 $ 6,879,325 13.60% • U.S. Government Securities 36,673,645 36,727,038 72.59% • Municipal bonds 986,205 983,165 1.94% • Corporate bonds 5,901,594 6,005,595 11.87% • • Total Investments $ 50,427,010 $ 50,595,123 100.00% • Concentration of credit risk. The City's policy for investing in individual issuers varies depending on the type of investments. Agency securities are restricted to no more than 90 • percent of the total portfolio. Municipal bonds are restricted to no more than 25percent of • the total portfolio No more the 35 percent of the total portfolio of investments my be_ • invested .in corporate bonds. Investments in corporate bonds of anyone issuer may not • exceed 5 percent of the investment portfolio. • • • • • • • 46 • • • • City of Tigard, Oregon • Notes to Basic Financial Statements • 3. Cash and Investments, Continued: • • Credit risk. The City's policy, which adheres to State of Oregon law, is to limit its Corporate and Municipal investments to the following: Is within Oregon must be rated "A" (bonds) or A-2 / P-2 (commercial paper) or better by Standard and Poor's, Moody's Investors Service or any other nationally recognized statistical rating organization. • Issuers not in Oregon must be rated AA / Aa (bonds) or A 1 / P-1 (commercial paper) or better. • At June 30, 2006, the City's investments were rated as follows: • • Highest Raring from • Moody's Investors Service or Standard & Poor's Corporation • Investment Type Total Aaa / AAA Aa / AA A / A P-1 / A - 1 Not Rated • • Local governement $ 6,879,325 $ - $ - $ - $ - $ 6,879,325 • investment pool - • U.S. agency securities 36,727,038 36,727,038 - - - - • Municipal bonds 983,165 - 225,243 - - 757,922 • Corporate bonds 6,005,595 353,262 3,633,133 1,532,295 486,905 - 0 • Total $ 50,595,123 $ 37,080,300 $ 3,858,376 $ 1,532,295 $ 486,905 $ 7,637,247 0 • 4. Assessment Liens Receivable: • • Assessment liens receivable represent the uncollected amounts levied against benefited property for the cost of local improvements. Because the assessments are liens against the benefited property, an allowance for uncollectible amounts is not deemed necessary. Substantially all assessments are payable over a period of 10 to 20 years. Assessments bear • interest from 5.2 to 9.4 percent. At June 30, 2006, the portion of the assessments • receivable balance that represents delinquent accounts is approximately $44,099. • • • • • • • • • • • • 47 • • • • • • City of Tigard, Oregon Notes to Basic Financial Statements • • 5. Capital Assets: Capital asset activity for governmental activities for the year ended June 30, 2006 was as • follows: • • June, 30 Reclassifications June, 30 2005 Additions Adjustments Retirements 2006 Non-depreciable • Land $ 5,786,010 $ - $ - $ - $ 5,786,010 Construction in progress 464,019 328,629 (269,210) (31,248) 492,190 Total non-depreciable 6,250,029 328,629 (269,210) (31,248) 6,278,200 Depreciable • Building and building improvements 18,726,235 31,248 - - 18,757,483 • Land improvements 4,966,083 201,691 - - 5,167,774 Machinery and equipment 1,561,540 122,114 - - 1,683,654 • Autos and trucks 1,803,286 374,578 - (197,684) 1,980,180 • Office equipment 449,186 - - - 449,186 • Infrastructure 197,759,713 1,710,970 - - 199,470,683 Total depreciable 225,266,043 2,440,601 - (197,684) 227,508,960 • • Accumulated depreciation • Building and building improvements (2,287,114) (466,748) - - (2,753,862) • Land improvements (3,342,456) (742,144) - - (4,084,600) • Machinery and equipment (996,010) (162,280) - - (1,158,290) • Autos and trucks (1,364,570) (136,160) - 197,684 (1,303,046) Office equipment (411,096) (9,387) - (420,483) • Infrastructure (391829,125) (2,623,069) - - (42,452,194) Total accumulated depreciation (48,230,371) (4,139,788) - 197,684 (52,172,475) • Governmental activities • capital assets, net $ 183,285,701 $ (1,370,558) $ (269,210) $ (31,248) $ 181,614,685 **Adjustments column include reclassifications and construction in progress in previous years that were completed within the current fiscal year. • • Depreciation expense for governmental activities is charged to functions as follows: • General government $ 3,831,961 Community services 186,861 Public works 89,614 Developmental services. 27,457 • Policy and administration 3,895 • Total depreciation for governmental activities $ 4,139,788 • • • • • • • • 48 • • • • City of Tigard, Oregon Notes to Basic Financial Statements • 5. Capital Assets, Continued: • Capital assets activity for business-type activities for the year ended June 30, 2006, was as follows: Balances Reclassifications Balances • June 30, 2005 Additions Adjustments Retirements June 30, 2006 Non-depreciable • Land $ 997,734 $ - $ - $ - $ 997,734 Construction in progress 1,568,907 845,768 (4,513) (955,494) 1,454,668 • Total - non-depreciable 2,566,641 845,768 (4,513) (955,494) 2,452,402 • Depreciable Land imtrovements 360,669 - 360,669 Buildings and building improvements 1,072,019 73,982 - 1,146,001 • Sewer system 18,413,258 2,409,535 - - 20,822,793 0 Storm drainage system 13,669,969 1,307,327 - - 14,977,296 • Watersystem 41,919,576 4,231,093 - - 46,150,669 0 Equipment 846,056 - - - 846,056 • Auto and trucks 1,230,429 52,204 - (26,293) 1,256,340 0 Total depreciable 77,511,976 8,074,141 - (26,293) 85,559,824 40 Accumulated depreciation • Land inupovements (357,656) (2,110) - (359,766) • Buildings and building improvements (446,911) (29,398) - - (476,309) • Sewer system (5,203,978) (445,746) - - (5,649,724) Storm drainage system (3,717,521) (341,626) - - (4,059,147) • Water system (16,823,995) (798,911) - - (17,622,906) • Equipment (801,434) (6,260) - - (807,694) Auto and trucks (865,159) (139,606) - 26,293 (978,472) • Total accumulated depreciation (28,216,654) (1,763,657) - 26,293 (29,954,018) • Business-type activities • capital assets, net $ 51,861,963 $ 7,156,252 $ (4,513) $ (955,494) $ 58,058,208 • **Adjustments column include reclassifications from previous years recording of capital assets. • Depreciation expense for business-type activities is charged to activities as follows: • Sanitary sewer $ 493,155 • Storm sewer 367,446 • Water 903,056 • • Total depreciation for business-type activities $ 1,7637657 • • • • • • • • • • 49 • • • • • City of Tigard, Oregon • • Notes to Basic Financial Statements • 6. Long-term Debt and Other Debt: • General Obligation Bonds payable • • Bond transactions for the year ended June 30, 2006, and future maturities of bond principal • and interest, are as follows: • • General Obligation bond issues - Original amount was $13,000,000. Funds were used to • build new library. Interest rates from 3 percent to 4.75 percent • • Fiscal Year Outstanding Paid Outstanding Future • Due June 30, 2005 During Year June 30, 2006 Interest • • 2006 $ 488,335 $ (488,335) $ - $ - • 2007 505,836 - 505,836 469,578 • 2008 518,411 - 518,411 454,403 • 2009 536,063 - 536,063 438,850 • 2010 553,795 - 553,795 422,768 • 2011 571,890 - 571,890 404,493 • 2012 590,281 - 590,281 384,477 • 2013 613,891 - 613,891 363,227 • 2014 632,787 - 632,787 340,206 • 2015 656,991 - 656,991 315,527 • 2016 686,471 - 686,471 289,248 • 2017-2022 5,705,789 - 5,705,789 1,110,233 • • $ 12,060,540 $ (488,335) $ 11,572,205 $ 4,993,010 • • Bancroft Improvement Bonds: • • Bancroft improvement bond issues - Interest rates from 3.9 percent to 7.25 percent; • payable first from assessments to benefited properties and second, from the general credit • of the City. • Paid and Fiscal Year Outstanding Called Outstanding Future • Due June 30, 2005 During Year June 30, 2006 Interest • • 2006 $ 387,549 $ (387,549) $ - $ - • 2007 381,260 (175,061) 206,199 116,058 • 2008 221,054 (3,565) 217,489 106,532 • 2009 225,683 - 225,683 96,527 • 2010 236,219 - 236,219 86,022 • 2011 247,234 - 247,234 74,982 2012 258,835 258,835 63,380 • 2013-2022 1,146,433 (255,146) 891,287 189,971 • • $ 3,104,267 $ (821,321) $ 2,282,946 $ 733,472 • • 50 • • • • City of Tigard, Oregon • Notes to Basic Financial Statements • • 6. Long-term Debt and Other Debt, Continued: • • Bancroft improvement bonds - original amount of $1,307,969 for 69`h Avenue Local Improvement District and original amount of $1,947,678 for Dartmouth Street Local • Improvement District. • Notes Payable: • • Note payable issued January 23, 2003 - Original amount of $2,290,248. Funds were used • for expansion and updating for Cook Park Interest rates from 3 percent to 4.35 percent; • payable from Parks SDC Fund. • • Fiscal • Year Outstanding Paid Outstanding Future • Due June 30, 2005 During Year June 30, 2006 Interest • • 2006 $ 216,630 $ (216,630) $ - $ - • 2007 222,820 - 222,820 59,205 • 2008 229,201 - 229,201 51,072 • 2009 235,690 - 235,690 42,363 • 2010 247,318 - 247,318 32,935 • 2011 259,053. - 259,053 22,795 • 2012 270,925 - 270,925 11,785 • - • Totals $ 1,681,637 $ (216,630) $ 1,465,007 $ 220,155 • • • Other long-term obligations for accrued compensated absences and changes thereto during • the year ended June 30, 2006 are as follows: • Balance Balance Due • June 30, June 30, in current • 2005 Additions Retirements 2006 year • Governmental activities: • Compensated absences $ 685,335 $ 1,198,393 $ (1,049,603) $ 834,125 $ - • • Business -type activities: • Compensated absences $ 112,194 $ 179,002 $ (151,709) $ 139,487 $ - • • Compensated absences for governmental activities are generally liquidated by the fund • expensing the respective payroll. • • • • • • • • 51 • • • 0 • • • City of Tigard, Oregon • Notes to Basic Financial Statements • • 7. Transfers: • • The City utilizes three types of interfund transfers. The first We is transfers received for • services provided. These transfers are based on a.cost allocation plan and are reflected as • expenses of the appropriate activity in the government - wide statements. The second type • of transfer is a transfer of resources. Typically, this transfer is made to close out funds that • are no longer needed for financial reporting. The third type of transfer is a transfer for • direct costs that can be specifically identified and billed directly to the benefiting fund. • These types of transfers are reflected as expenses of the appropriate activity in the • government - wide statements. • 8. Retirement Plans: • • The City contributes to retirement plans on behalf of all eligible employees. At June 30, • 2006, the following employee groups were covered by the following retirement plans: • • Group Retirement Plan • Management/Professional Staff (Nonunion) International CityManagers Association • Retirement .Corp. (ICMARQ Money • Purchase Plan • Oregon Public Employees Union Employees IC MARC Money Purchase Plan • • Tigard Police Officers State of Oregon Public Employees • Retirement System (PERS) • • Oregon Public Employees Retirement Systems (OPERS) • • Plan Description • • The City is a participating employer in the Oregon Public Employees Retirement System • (OPERS), an agent multiple-employer public employee retirement system, established • under Oregon Revised Statutes, Section 238.600, that acts as a common investment and • administrative agent for public employers in the State of Oregon. Substantially all full-time • police employees are participants in PERS. The plan provides retirement, death and • disability benefits to participants or their beneficiaries. Benefits are established by State • Statute, and employer contributions are made at an actuarially determined rate as adopted • by the OPERS Retirement Board. OPERS, a component unit of the State of Oregon, • issues a comprehensive annual financial report, which may be obtained by writing to • Oregon Public Employees Retirement System, P.O. Box 23700, Tigard, Oregon 97281- 3700. • • Funding Policy • • The City's annual required contribution rate, as of the most recent actuarial valuation of July • 1, 2003, is 17.69 percent of covered payroll for Tier I & II employees and 11.65 percent of • covered payroll for Tier III employees. At June 30, 2006, the City had seven employees ui • the Tier III category. • 52 • • • City of Tigard, Oregon • Notes to Basic Financial Statements • • 8. Retirement Plans, Continued: • • The City is required by State Statute to contribute its current employer rate of 17.69 percent • and 11.65 percent of covered wages, and has contractually committed to pay the employee • contributions of 6 percent. • • Annual Pension Cost • Because all OPERS participating employers are required bylaw to submit the contributions • as adopted by the OPERS Retirement Board, there is no net pension obligation to report • and the annual contributions are equal to the annual pension cost. For the fiscal years • ended June 30, 2006, 2005 and 2004, the City's annual pension cost was $753,721, $571,920 • and $505,230, respectively. • • The City's pension liability and the annual required contribution rate were determined as • part of the December 31, 2003 actuarial valuation using the entry age actuarial cost method. • The unfunded actuarial accrued liability is amortized as a level percentage of covered payroll • over a 30-year open period. Currently, the Cityis in an overfunded position and has been • for several years. The actuarial assumptions include a rate of return on investment of • present and future assets of 8 percent per year, projected salary increase of 3.5 percent per • year, and cost of living adjustments of 2 percent per year for post-retirement benefits. • The following table presents a schedule of funding progress for the City's multiple- • .employer pension plan: • • Overfunded • Overfunded Liability as a • Actuarial Actuarial Actuarial Percent of • Actuarial Value of Accrued Accrued Funded Covered Covered • Valuation Date Assets Liability Liability Ratio Payroll Payroll • • December 31, 1995 $ 7,946,463 $ 7,616,462 $ 330,001 104% $ 2,353,479 14% • December 31, 1997 9,664,661 7,952,478 1,712,183 122% 2,360,045 73% 40 December 31,1999 17,817,986 14,743,905 3,074,081 121% 2,838,373 108% 0 December 31, 2001 19,351,861 14,361,706 4,990,154 135% 3,072,422 162% 0 December 31, 2003 21,361,627 20,355,961 1,005,666 105% 3,616,568 28% 0 • ICIVIARC Plans • • The City contributes to defined contribution, single employer retirement plans at a specified • percent of gross salary depending on the employment group, for all employees who are not • covered under the Police Pension Plan. Employees do not make contributions to these • plans. The City is required to make contributions to these plans under authority of City • Council resolution and the plan documents. • • • • • 53 • • • • • • • City of Tigard, Oregon • Notes to Basic Financial Statements • • 8. Retirement Plans, Continued: • • Employees become eligible to participate in the plans after six months of service and vest • immediately. Employees may withdraw funds upon retirement or termination of • employment. • • Contributions to the plans are made to a fiduciary. Since the plans are administered by the • City, the assets, equity and operations of the plans are accounted for in the General • Employees Pension Plan Fund, a pension trust fund. The plans invest in various money • market and equity mutual funds. Required and actual contributions to the plan were $1,107,494 for the year ended June 30, • 2006. Contributions are calculated as a percentage of gross payroll. The contributions • range from.10 to 11 percent for all eligible employees participating in the plans. • • Deferred Compensation Plans • The City offers certain employees deferred compensation plans created in accordance with • Internal Revenue Code Section 457. The plans permit employees to defer a portion of their • salary until future years. Contributions for the plans are made to fiduciaries who hold the • funds in trust for the plans' participants. The deferred compensation plans are not • considered City funds and are excluded from the City's financial statements. • • 9. Transactions with Clean Water Services of Washington County: • • The City collects charges for treatment of City sewage on behalf of the Clean Water • Services of Washington County and remits all collections to Clean Water Services, except • for 17.52 percent of sewer service charges collected and 20 percent of connection charges • collected, in accordance with an agreement between the City and Clean Water Services. • Payments of $6,852,502 were made to Clean Water Services during fiscal year 2006 under • this agreement. • The City has a similar agreement with the Regional Surface Water Management Agency, • which is an affiliate of Clean Water Services, for storm water systems. Payments made to • the Agency during fiscal year 2006 under the agreement were $367,172. • • The net amount retained by the City is reported as revenue in the enterprise funds in the • proprietary funds statement of revenues, expenses and changes in fund net assets. • Revenues are reported net because the City acts in a fiduciary capacity on behalf of Clean • Water Services. • • • • • • • • • 54 • • • City of Tigard, Oregon j Notes to Basic Financial Statements • • 10. Constitutional Property Tax Limitations: • • In November 1990, the Oregon voters approved a State constitutional limit on property • taxes for schools and nonschool government operations. Under the provisions of the • limitation, tax revenues are separated into those for the public school system and those for • local government operations other than the public school system. The limitation specifies $10 is the maximum allowable tax for each $1,000 of property real market value imposed by • local governments other than the public school system. • The limitation applies to all state and local taxes and charges on property except for the • following: • 1. Incurred charges for goods or services received at the owner's option; 0 • 2. Assessments for capital construction that provide a special benefit to the property • and that can be paid off over at lease ten years; • • 3. Taxes to repay bonded debt authorized by the state constitution; • • 4. Taxes to repay existing bonded debt for capital construction, and • • 5. Taxes to repay new bonded debt for capital construction if approved by voters. • • During May 1997, Oregon voters approved Measure 50 which limits taxes on each property • by reducing the 1997-98 assessed value of each property to 90 percent of its 1995-96 value. • Measure 50 also limits future growth of the taxable value of each property to 3 percent per • year with cert aim exceptions. Measure 50 also establishes permanent tax rates for Oregon's • local taxing districts, which replace the former tax base amounts of the districts. Tigard's • taxing authority is limited to its permanent rate of $2.51 per thousand dollars of assessed • value. • At the beginning of each fiscal year, the Washington County Assessor determines assessed • values of properties in the City. Washington County is responsible for the levying and • collecting the property taxes as well as distributing the tax revenue to all taxing jurisdictions • in the County. • • 11. Risk Management: • • The City is exposed to various risks of loss related to torts; theft of, damage to, and • destruction of assets; errors and omissions; injuries to employees and others; and natural • disasters. The City purchases commercial insurance to deal with substantially all these risks • with nominal deductibles. Settled claims resulting from these risks have not exceeded • commercial insurance coverage in any of the past three fiscal years. • • • • • • • • 55 • • 0 0 _ ~ - " - _ ' ~ _ _ j. I~ - ' " _ ~ ~ . ~ _ - ~ ~ ~ i C~ , ' ~ , J . •••a••w••••••••~•"1~••i•••A••••~••••~~••••••A•~••••••••'•••• CITY OF TIGARD, OREGON GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • • • • Variance • Budgeted Amounts Actual Over • REVENUES: Original Final Amounts (Under) • • Taxes $ 9,582,474 $ 9,582,474 $ 9,998,252 $ 415,778 • Franchise fees 2,822,409 2,822,409 3,042,187 219,778 0 Licenses and permits 291,575 291,575 354,545 62,970 • Intergovernmental revenues 2,875,495 2,916,735 2,882,918 (33,817) Charges for services 720,120 720,120 1,110,496 390,376 • Fines and forfeitures 650,827 650,827 702,469 51,642 Interest earnings 204,000 204,000 290,879 86,879 Miscellaneous 25,000 25,000 18,892 (6,108) • Total revenues 17,171,900 17,213,140 18,400,638 1,187,499 • EXPENDITURES: Community services 11,969,249 12,011,989 11,377,118 634,871 Public works 2,629,088 2,672,342 2,273,569 398,773 • Development services 2,941,422 2,941,422 2,673,696 267,726 . Policy and administration 343,085 371,120 363,848 7,272 • Contingency 1,000,000 927,211 - 927,211 Total expenditures 18,882,844 18,924,084 16,688,231 2,235,853 • • Change in fund balance before other financing sources (uses) (1,710,944) (1,710,944) 1,712,407 3,423,352 • • Other financing sources (uses): • Operating transfer in 2,677,233 2,677,233 1,945,005 (732,228 Operating transfer out (4,507,732) (4,507,732) (3,454,072) 1,053,660 • Total other financing sources (uses) (1,830,499) (1,830,499) (1,509,067) 321,432 • Change in fund balance (3,541,443) (3,541,443) 203,340 3,744,784 • • UNDESIGNATED, UNRESERVED - • FUND BALANCE BEGINNING OF YEAR 8,671,679 8,671,679 8,185,744 (485,935) UNDESIGNATED, UNRESERVED - FUND BALANCE END OF YEAR $ 5,130,236 $ 5,130,236 $ 8,389,084 $ 3,258,849 • • • • r 56 • CITY OF TIGARD, OREGON GAS TAX FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • • • Variance • Budgeted Amounts Actual Over Original Final Amounts (Under) REVENUES: • Federal grants $ 228,025 $ 228,025 $ - $ (228,025) • State gas tax 2,232,900 2,232,900 $2,187,565 (45,335) County gas tax 175,000 175,000 195,101 20,101 • Street lighting fees 8,420 8,420 14,129 5,709 Interest earnings 31,300 31,300 71,287 39,987 Miscellaneous 111,636 111,636 35,088 (76,548) • Total revenues 2,787,281 2,787,281 2,503,170 (284,111) • • EXPENDITURES: • Development services 445,000 445,000 419,815 25,185 Contingency 350,000 280,000 - 280,000 Capital projects 1,943,361 2,013,361 306,656 1,706,705 • Total expenditures 2,738,361 2,738,361 726,471 2,011,890 • Change in fund balance • before other financing (uses) 48,920 48,920 1,776,699 1,727,779 • Other financing (uses): Transfer out (1,305,617) (1,305,617) (1,035,860) 269,757 • Change in fund balance (1,256,697) (1,256,697) 740,839 1,997,536 • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 1,552,821 1,552,821 1,979,159 426,338 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 296,124 $ 296,124 $ 2,719,998 $ 2,423,874 • • • • • • • 57 • • • CITY OF TIGARD, OREGON PARKS SDC FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • • • • Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) REVENUES: • System development charges $ 1,608,286 $ 1,608,286 $ 1,249,686 $ (358,600) Interest earnings 61,380 61,380 46,973 (14,407) • • Total revenues 1,669,666 1,669,666 1,296,659 - (373,007) • Change in fund balance before other financing sources (uses) 1,669,666 1,669,666 1,296,659 (373,007) • Other financing sources (uses): Transfer in 1,900,000 1,900,000 1,900,000 - Transfer out (1,909,917) (1,909,917) (403,956) 1,505,961 • Total other financing sources (9,917) (9,917) 1,496,044 1,505,961 • Change in fund balance 1,659,749 1,659,749 2,792,703 1,132,954 • • UNDESIGNATED, UNRESERVED . FUND BALANCE, BEGINNING OF YEAR - - - - UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 1,659,749 $ 1,659,749 $ 2,792,703 $ 1,132,954 • • • • • • • • • • • • • • 58 • • ~~~~~r~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~ • . _ ~ ~ - _ - ~ ~ H ~ - ~ ~ . k. _ - _ - ~ s, ~ - ~ r. • • CITY OF TIGARD, OREGON COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2006 • • • • • • • General • Obligation • Special Capital Bond Debt ` Revenue Projects Service Funds . Funds Fund Total ASSETS: • Cash and investments $ 7,978,785 $ 2,305,801 $ 252,997 $ 10,537,583 Accounts receivable 132,690 263,660 - 396,350 . Taxes receivable - - 23,326 23,326 • Assessment liens receivable 90,346 - - 90,346 • Total assets $ 8,201,821 $ 2,569,461 $ 276,323 $ 11,047,605 • LIABILITIES: • Accounts payable $ 472,253 $ 53,982 $ $ 526,235 Customer deposits 249,143 439,958 689,101 • Deferred revenues - Property taxes - - 15,571 15,571 • Deferred revenues - Assessment liens 64,851 263,660 - 328,511 • Total Liabilities 786,247 757,600 15,571 1,559,418 • • FUND BALANCES - • Unreserved 7,415,574 1,811,861 260,752 9,488,187 • Total fund balances 7,415,574 1,811,861 260,752 9,488,187 • Total liabilities and fund balances $ 8,201,821 $ 2,569,461 $ 276,323 $ 11,047,605 • • • • • • • • • • • • • • 59 • • CITY OF TIGARD, OREGON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the fiscal year ended June 30, 2006 General Obligation • Special Capital Bond Debt • Revenue Projects Service Funds Funds Fund Total REVENUES: Properrytaxes $ - $ - $ 819,634 $ 819,634 Licenses and permits 3,248,488 - 3,248,488 Intergovernmental revenues - 20,160 20,160 Charges for services 951,637 - - 951,637 Interest earnings 192,560 65,399 5,430 263,390 Miscellaneous revenues 218,569 230,402 - 448,971 Total revenues 4,611,254 315,961 825,064 5,752,280 • EXPENDITURES: Development services 1,615,923 - - 1,615,923 • Policy and administration 503,422 - - 503,422 Debt Service - 282,876 972,563 1,255,439 Capital projects 1,245,677 799,790 - 2,045,467 Total expenditures 3,365,022 1,082,666 972,563 5,420,251 Changes in fund balance • before other financing sources (uses) 1,246,232 (766,705) (147,499) 332,029 • Other financing sources (uses): Operating transfer in 360,547 454,473 - 815,020 Operating transfer out (944,276) (1,905,768) - (2,850,044) • Total other financing sources (uses) (583,729) (1,451,295) - (2,035,024) Changes in fund balance 662,503 (2,218,000) (147,499) (1,702,996) • FUND BALANCE - beginning of year 6,753,071 4,029,861 408,251 11,191,183 FUND BALANCE - end of year $ 7,415,574 $ 1,811,861 $ 260,752 $ 9,488,187 • 60 • Special ,Revenue FundS The balance sheet and statement of revenues, expenditures, and charges in fund balance of the nonmajor special revenue funds are reported in the combining governmental fund statements. Fund statements for • the major special revenue funds are reported in the basic financial statements. • • Schedules of revenues, expenditures, and changes iri fund balance- budget and actual are also presented • here for each individual special revenue fund. • Nonmajor Special Revenue Funds: Criminal Forfeiture Fund - This fund accounts for funds, and property, seized from criminals in connection with crimes committed prior to passage of Ballot Measure 3 • Traffic Impact Fee Fund - This fund accounts for traffic impact fees charged for new development. Funds will be, used for highway and transit capital- improvements approved in the Citys Capital Improvement Plan (CIP). • Electrical Inspection. Fund - This fund accounts for fees charged for permits, plan check fees and • inspection of electrical improvements. • Underground Utility Fund _ -This fund accounts .for monies received from developers for future • underground utility improvements. Insurance Fund - Records. refunds, of prior,years workers' compensation premiums and other insurance • related. revenues. • Building. Fund - This fund accounts for fees charged for building inspection and-plan review activities. • Traffic Impact Fee Urban Services Fund = This fund accounts for traffic impact fees collected on .roads within the City's urban services area. Funds will be used for highway and transit capital improvements approved in the City's Capital Improvement Plan (CIP). Urban Services Fund - This fund accounts for all revenues and expenditures related to'services provided to the urban service areas of Washington County. The City of Tigard provides services to- this area • pursuant to an intergovernmental' agreement with Washington County- 0. Street Maintenance Fee Fund - This fund was established in FY 2003-04 to track the, revenues and • expenditures for the Street Maintenance Fee; This fee provides revenue designated for use in the • maintenance of existing streets. 0 CITY OF TIGARD, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2006 Traffic Street Criminal Traffic Electrical Underground Impact Fee Urban Maintenance Forfeiture Impact Fee Inspection Utility Insurance Building Urban Services Services Fee Fund Fund Fund Fund Fund Fund Fund Fund Fund Total ASSETS: Cash and investments $ 64,228 $ 2,693,922 $ 283,608 $ 238,567 $ 615,833 $ 1,787,849 $ 845,748 $ 722,112 $ 726,918 $ 7,978,785 Accounts receivable - - 1,425 2,671 1,050 - 5,393 122,151 132,690 Assessment liens receivable 90,346 90,346 Total assets $ 64,228 $ 2,784,268 $ 285,033 $ 238,567 $ 618,504 $ 1,788,899 $ 845,748 $ 727,505 $ 849,069 $ 8,201,821 LIABILITIES AND FUND BALANCES: LIABILITIES: Accounts payable $ $ 13,806 $ $ $ $ 47,151 $ $ 1,649 $ 409,647 $ 472,253 Customer deposit - 6,227 2,500 240,416 - 249,143 Deferred revenues 64,851 - - - 64,851 Total liabilities 78,657 6,227 49,651 242,065 409,647 786,247 FUND BALANCE UNRESERVED 64,228 2,705,611 278,806 238,567 618,504 1,739,248 845,748 485,440 439,422 7,415,574 Total liabilities and fund balances $ 64,228 $ 2,784,268 $ 285,033 $ 238,567 $ 618,504 $ 1,788,899 $ 845,748 $ 727,505 $ 849,069 $ 8,201,821 CITY OF TIGARD, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the fiscal year ended June 30, 2006 Traffic Street Criminal Traffic Electrical Underground ImpactFee Urban Maintenance Forfeiture Impact Fee Inspection Utility Insurance Building Urban Services Services Fee Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES: Licenses and permits $ $ 720,558 $ 285,985 $ - $ $ 1,507,446 $ 192,360 $ 542,139 $ - $ 3,248,488 Charges for services 90,281 9,315 - 3,115 848,926 951,637 Interest earnings 1,529 67,726 7,043 5,353 15,170 45,646 18,684 18,497 12,912 192,560 Miscellaneous revenues 198,852 6,759 ,11,179 - - 1,779 218,569 Total revenues 1,529 987,136 293,028 95,634 21,929 1,573,586 211,044 563,751 863,617 4,611,254 EXPENDITURES: Development services 1,615,923 - - 1,615,923 Policy and administration 16,922 38,768 216,452 7,288 140,547 83,445 503,422 Capital projects 408,826 93,067 - 450 743,334 1,245,677 N Total expenditures 425,748 38,768 93,067 1,832,375 7,738 140,547 826,779 3,365,022 Changes in fund balance before other financing sources (toes) 1,529 561,388 254,260 2,567 21,929 (258,789) 203,306 423,204 36,838 1,246,232 Other financing sources (uses): Transfer in - - - - 360,547 - - 360,547 Transfer our 332 (143,306) (241,499) (172,677) (22,081) (329,769) (34,612) (944,276) Total other financing sources (uses) 332 (143,306) 241,499 - 187,870 (22,081) (329,769) (34,612) (583,729) Changes in fund balance 1,197 418,082 12,761 2,567 21,929 (70,919) 181,225 93,435 2,226 662,503 FUND BALANCE - beginning of year 63,031 2,287,529 266,045 236,000 596,575 1,810,167 664,523 392,005 437,196 6,753,071 FUND BALANCE - end of )tar $ 64,228 $ 2,705,611 $ 278,806 $ 238,567 $ 618,504 $ 1,739,248 $ 845,748 $ 485,440 $ 439,422 $ 7,415,574 CITY OF TIGARD, OREGON CRIMINAL FORFEITURE FUND SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL S For the fiscal year ended June 30, 2006 • • • Variance Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: • Interest earnings $ 500 $ 500 $ 1,529 $ 1,029 Miscellaneous 35,000 35,000 - (35,000) • • Total revenues 35,500 35,500 1,529 (33,971) Change in fund balance • before other financing (uses) 35,500 35,500 1,529 (33,971) • • Other financing (uses): • Transfer out (50,000) (50,000) (332) 49,668 • a Change in fund balance (14,500) (14,500) 1,197 15,697 • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 23,966 23,966 63,031 39,065 UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 9,466 $ 9,466 $ 64,228 $ 54,762 • • • • • • • i • • • • • • 63 • • • CITY OF TIGARD, OREGON TRAFFIC IMPACT FEE FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL t For the fiscal year ended June 30, 2006 f • Variance Budgeted Amounts Actual Over Original Final Amounts (Under) • REVENUES: Federal grants $ 21,306,324 $ 660,000 $ - $ (660,000) ! System development charges 735,000 735,000 720,558 (14,442) • Interest earnings 40,000 40,000 67,726 27,726 Miscellaneous 150,000 150,000 198,852 48,852 ! Total revenues 22,231,324 1,585,000 987,136 (597,863) EXPENDITURES: • Contingency 325,000 275,000 - 275,000 • Capital projects 2,051,364 2,101,364 408,826 1,692,538 • Total expenditures 2,376,364 2,376,364 408,826 1,967,538 ! • Change in fund balance • before other financing (uses) 19,854,960 (791,364) 578,310 1,369,675 ! Other financing (uses): • Transfer out (206,797) (206,797) (160,228) 46,569 • Change in fund balance 19,648,163 (998,161) 418,082 1,416,244 • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 1,187,867 1,187,867 2,287,529 1,099,662 • f UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 20,836,030 $ 189,706 $ 2,705,611 $ 2,515,906 • • • • • • • 64 ! • • CITY OF T I GARD, OREGON ELECTRICAL INSPECTION FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • • • • • Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: • Electrical permit fees $ 238;980 $ 238,980 $ 270,900 $ 31,920 Electrical plan check fees 5,450 5,450 15,085 9,635 • Interest earnings 5,500 5,500 7,043 1,543 • • Total revenues 249,930 249,930 293,028 43,098 • EXPENDITURES: • • Contingency 40,000 40,000 - 40,000 • Change in fund balance before other financing (uses) 209,930 209,930 293,028 83,098 • Other financing (uses): • Transfer out (295,662) (295,662) (280,267) 15,395 • Change in fund balance (85,732) (85,732) 12,761 98,493 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 245,933 245,933 266,045 20,112 • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 160,201 $ 160,201 $ 278,806 $ 118,605 • • • • • • • • • 65 • • • CITY OF TIGARD, OREGON UNDERGROUND UTILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • • • • • • Variance Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: • • Charges for services $ 35,000 $ 35,000 $ 90,281 $ 55,281 • Interest earnings 7,500 7,500 5,353 (2,147) • Total revenues 42,500 42,500 95,634 53,134 • • EXPENDITURES: • Contingency 26,000 26,000 - 26,000 • Capital projects 170,000 170,000 93,067 76,933 • Total expenditures 196,000 196,000 93,067 102,933 • • Change in fund balance (153,500) (153,500) 2,567 156,067 UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 366,014 366,014 236,000 (130,014) UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 212,514 $ 212,514 $ 238,567 $ 26,053 • • • • • • • • • • • • • • • 66 • • • • • CITY OF TIGARD, OREGON INSURANCE FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • • • • • • • Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: • Interest earnings $ 14,500 $ 14,500 $ 15,170 $ 670 • Miscellaneous 30,000 30,000 6,759 (23,241) • • Total revenues - change in fund balance 44,500 44,500 21,929 (22,570) • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 617,000 617,000 596,575 (20,425) • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 661,500 $ 661,500 $ 618,504 $ (42,995) • • • • • • • • • • • • • • • • • • • • • • 67 • • • • CITY OF TIGARD, OREGON BUILDING FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • • • • • • Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) REVENUES: Licenses and permits $ 1,380,906 $ 1,380,906 $ 1,507,446 $ 1265540 • Charges for services 8,000 8,000 9,315 1,315 • Interest earnings 31,500 31,500 45,646 14,146 Miscellaneous - - 11,179 11,179 • Total revenues 1,420,406 1,420,406 1,573,586 153,180 • EXPENDITURES: • Development services 1,720,916 1,720,916 1,615,923 104,993 • Contingency 300,000 300,000 - 300,000 • • Total expenditures 2,020,916 2,020,916 1,615,923 404,993 • • Change in fund balance before other financing sources (uses) (600,510) (600,510) (42,337) 558,173 • Other financing sources (uses): • Transfer in 389,106 389,106 360,547 (28,559) Transfer out (398,138) (398,138) (389,129) 9,009 • Total other financing sources (uses) (9,032) (9,032) (28,582) (19,550) Change in fund balance (609,542) (609,542) (70,919) 538,623 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 1,619,687 1,619,687 1,810,167 190,480 • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 1,010,145 $ 1,010,145 $ 1,739,248 $ 729,103 • • • • • • • • 68 • • CITY OF TIGARD, OREGON TRAFFIC IMPACT FEE URBAN SERVICES FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • • • • Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: System development charges $ 175,000 $ 175,000 $ 192,360 $ 17,360 • Interest earnings 15,000 15,000 18,684 3,684 • Total revenues 190,000 190,000 211,044 21,044 • EXPENDITURES: • Contingency 34,000 34,000 - 34,000 • . Capital projects 200,000 200,000 450 199,550 Total expenditures 234,000 234,000 450 233,550 Change in fund balance • before other financing (uses) (44,000) (44,000) 210,594 254,594 • Other financing (uses): Transfer out (30,952) (30,952) (29,369) 1,583 • • Change in fund balance (74,952) (74,952) 181,225 256,177 UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 599,700 599,700 664,523 64,823 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 524,748 $ 524,748 $ 845,748 $ 321,000 • • • • • • • • • 69 • • • CITY OF TIGARD, OREGON URBAN SERVICES FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 Variance Budgeted Amounts Actual Over Original Final Amounts (Under) REVENUES: Licenses and permits $ 507,043 $ 507,043 $ 542,139 $ 35,096 • Charges for services - - 3,115 3,115 • Interest earnings 7,500 7,500 18,497 10,997 Total revenues 514,543 514,543 563,751 49,208 EXPENDITURES: Contingency 49,000 49,000 - 49,000 • Change in fund balance before other financing (uses) 465,543 465,543 563,751 98,208 Other financing (uses): Transfer out (494,917) (494,917) (470,316) 24,601 Change in fund balance (29,374) (29,374) 93,435 122,809 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 630,525 630,525 392,005 (238,520) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 601,151 $ 601,151 $ 485,440 $ (115,711) 70 • CITY OF TIGARD, OREGON STREET MAINTENANCE FEE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • • • • • Variance • Budgeted Amounts Actual Over Original Final Amounts (Under) • REVENUES: Fees and charges $ 800,000 $ 800,000 $ 848,926 $ 48,926 • Interest earnings 4,000 4,000 12,912 8,912 • Miscellaneous - - 1,779 1,779 Total revenues 804,000 804,000 863,617 59,617 • EXPENDITURES: • Contingency 80,500 - - - Capital projects 725,000 805,500 743,334 62,166 • Total expenditures 805,500 805,500 743,334 62,166 • • Change in fund balance • before other financing (uses) (1,500) (1,500) 120,283 121,783 Other financing (uses): Operating transfer out (119,800) (119,800) (118,057) 1,743 • Change in fund balance (121,300) (121,300) 2,226 123,526 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 128,136 128,136 437,196 309,060 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 6,836 $ 6,836 $ 439,422 $ 432,586 • • • • • • • • • • 71 • • } ~N Debt Se m` c.e Funds The balance sheet and statement of revenues, expenditures; and changes in fund balance of the nonmajor debt, service fund is reported.. 'in the combining nonmajor governmental' fund *statements. Fund statements for the major debt service fund are reported in the basic financial st'atem'ents.. Schedules of revenues; expenditures, and changes in'fund balance - budget and actual are . also presented here for each'debt service fund. Major Debt Service Fund: Bancroft Debt Service Fund - This fund accounts for payment of Bancroft improvement bond principal and interest. The sources of revenue is the collection of assessments against benefited property, interest and contributions from other funds for their share of costs.. Nonmajor Debt Service Fund:. ` General Obligation Debt Service Fund This fund accounts for payment of general obligation bond ' principal' and interest. The sources of revenue is from property taxes and interest earnings. • CITY OF TIGARD, OREGON BANCROFT BOND DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • w • • • • Variance • Budgeted Amounts Actual Over Original Final Amounts (Under) • REVENUES: • • Collection of bonded assessments $ 260,773 $ 260,773 $ 1,421,765 $ 1,160,992 • Interest earnings 189,709 189,709 231,108 41,399 • Total revenues 450,482 450,482 1,652,873 1,202,391 • EXPENDITURES: • Debt service 969,736 969,736 968,152 1,584 • • Change in fund balance (519,254) (519,254) 684,721 1,203,975 • DESIGNATED - FUND BALANCE, • BEGINNING OF YEAR 541,198 541,198 904,297 363,099 • DESIGNATED FUND BALANCE, END OF YEAR $ 21,944 $ 21,944 $ 1,589,018 $ 1,567,074 • • • • • w • • • • • • • • • • • • • • • • • 72 • • • CITY OF TIGARD, OREGON • GENERAL OBLIGATION DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • • • Variance • Budgeted Amounts Actual Over Original Final Amounts (Under) REVENUES: • Taxes $ 790,331 $ 790,331 $ 819,634 $ 29,303 • Interest earnings 9,500 9,500 5,430 (4,070) • Total revenues 799,831 799,831 825,064 25,233 • • EXPENDITURES: Debt service 972,563 972,563 972,563 - • • Change in fund balance (172,732) (172,732) (147,499) 25,233 DESIGNATED FUND BALANCE, BEGINNING OF YEAR 397,700 397,700 408,251 10,551 DESIGNATED FUND BALANCE, • END OF YEAR $ 224,968 $ 224,968 $ 260,752 $ 35,784 • • • • • • • • • • • • • • • • • 73 • • • Capital Projects Funds Combining statements. for all 'individual nonmajor capital projects funds are, reported here. The combined totals are reported in the, combining nonmajor governmental fund statements. Fund , statements for the major capital projects fund are reported in the basic financial statements. 0 Schedules of, revenues, expenditures, and changes in fund balance - budget and actual are also presented • here for each capital projects fund. ` Nonmajor Capital Projects Fund: Parks Capital Fund - This fund accounts for system, development charges for major improvements to • recreational facilities within;the'City. FacilityFund - This fund accounts for monies set aside for future major City facility improvements. Wall Street Local Improvement District Fund This fund' accounts for construction of a local improvement district project from the sale of bond anticipation notes. The City's portion of the project is funded by a transfer of resources from the Traffic Impact Fee Fund. 79th Avenue Local Improvement District Fund This fund, accounts for'the potential creation of a new Local Improvement District (LID) to improve SW 79th Avenue from SW Bonita Road to just north of Gentle Woods Drive. Council decided in *FY 2005-06 not to proceed with formation of this LID. This fund was closed in the year ended June 30, 2006. . 6% • • • CITY OF TIGARD, OREGON • NONMAJOR CAPITAL PROJECTS FUNDS • COMBINING BALANCE SHEET • June 30, 2006 • • • • • • • Wall Street • Local • Parks Improvement Capital Facility District • • Fund Fund Fund Total • ASSETS: • • Cash and investments $ 895,123 $ 1,408,594 $ 2,084 $ 2,305,801 Accounts receivable 263,660 - - 263,660 Total assets $ 1,158,783 $ 1,408,594 $ 2,084 $ 2,569,461 • LIABILITIES AND FUND BALANCES: • • LIABILITIES: • Accounts payable and accrued liabilities $ 946 $ 50,952 $ 2,084 $ 53,982 • Customer deposits 439,958 - - 439,958 • Deferred revenues 263,660 - - 263,660 • • Total libilities 704,564 50,952 2,084 757,600 • • FUND BALANCES - • UNRESERVED 454,219 1,357,642 - 1,811,861 • Total liabilities and fund balances $ 1,158,783 $ 1,408,594 $ 2,084 $ 2,569,461 • • • • • • • • • • • 74 • • • CITY OF TIGARD, OREGON • NONMAJOR CAPITAL PROJECT'S FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES • AND CHANGES IN FUND BALANCE • For the fiscal year ended June 30, 2006 • • • • • Wall Street • Local • Parks Improvement • Capital Facility District Fund Fund Fund Total • REVENUES: Intergovernmental revenues $ 20,160 $ $ $ 20,160 • Interest earnings 30,034 35,365 65,399 Miscellaneous 180,389 50,013 230,402 • Total revenues 230,583 85,378 315,961 • EXPENDITURES: • Debt service 282,876 - 282,876 • Capital projects 522,841 274,718 2,231 799,790 . Total expenditures 805,717 274,718 2,231 1,082,666 • • Change in fund balance ! before other financing sources (575,134) (189,340) (2,231) (766,705) . Other financing sources (uses): Transfers in 428,956 23,286 2,231 454,473 • Transfers out (1,900,000) (5,768) - (1,905,768) • Total other financing sources (uses) (1,471,044) 17,518 2,231 (1,451,295) • • Change in fund balance (2,046,178) (171,822) - (2,218,000) • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 2,500,397 1,529,464 4,029,861 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 454,219 $ 1,357,642 $ $ 1,811,861 • • • • • • • • • • • • 75 • • • • CITY OF TIGARD, OREGON • PARKS CAPITAL FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • • • • • • Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: • Intergovernmental revenues $ 865,694 $ 865,694 $ 20,160 $ (845,534) • Tree replacement revenue 10,000 10,000 148,772 138,772 • Interest earnings 51,000 51,000 30,034 (20,966) • Miscellaneous 105,000 105,000 31,617 (73,383) • • Total revenues 1,031,694 1,031,694 230,583 - (801,111) • EXPENDITURES: • • Debt Service 282,876 282,876 282,876 • Contingency 150,000 - - - Capital projects 3,714,566 3,864,566 522,841 3,341,725 • • Total expenditures 4,147,442 4,147,442 805,717 3,341,725 Change in fund balance before other financing sources (3,115,748) (3,115,748) (575,134) 2,540,614 • • Other financing sources: - • Transfer in 2,804,987 2,804,987 428,956 (2,376,031) Transfer out (1,900,000) (1,900,000) (1,900,000) - • • Total other financing sources 904,987 904,987 (1,471,044) (2,376,031) Change in fund balance (2,210,761) (2,210,761) (2,046,178) 164,583 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 2,211,721 2,211,721 2,500,397 288,676 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 960 $ 960 $ 454,219 $ 453,259 • • • • • • • • 76 • • CITY OF TIGARD, OREGON FACILITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 Variance Budgeted Amounts Actual Over Original Final Amounts (Under) REVENUES: • Interest earnings $ 35,000 $ 35,000 $ 35,365 $ 365 Miscellaneous - - 50,013 50,013 Total revenues 35,000 35,000 85,378 50,378 EXPENDITURES: Contingency 260,000 260,000 - 260,000 • Capital projects 1,470,254 1,470,254 274,718 1,195,536 Total expenditures 1,730,254 1,730,254 274,718 1,455,536 Change in fund balance before other financing sources (uses) (1,695,254) (1,695,254) (189,340) 1,505,914 Other financing sources (uses): • Transfers in 583,000 583,000 23,286 (559,714) Transfers out (51,000) (51,000) (5,768) 45,232 Total other financing sources (uses) 532,000 532,000 17,518 (514,482) Change in.fund balance (1,163,254) (1,163,254) (171,822) 991,432 UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,500,070 1,500,070 1,529,464 29,394 0 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 336,816 $ 336,816 $ 1,357,642 $ 1,020,826 77 CITY OF TIGARD, OREGON A WALL STREET LOCAL IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 S Variance Budgeted Amounts Actual Over • Original Final Amounts (Under) EXPENDITURES: Capital projects $ 40,000 $ 40,000 $ 2,231 $ 37,769 Other financing sources: Transfer in 40,000 40,000 2,231 (37,769) Total other financing sources 40,000 40,000 2,231 (37,769) Change in fund balance - - - UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR - - - UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ $ $ $ - 78 QTY OF TIGARD, OREGON 79TH AVENUE LOCAL IMPROVEMENT DISTRICT FUND A SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • 0 • 0 0 Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) REVENUES: 0 0 Interest earnings $ 15,000 $ 15,000 $ $ (15,000) • EXPENDITURES: 0 0 Capital projects 1,350,000 1,350,000 1,350,000 0 Change in fund balance • before other financing sources (1,335,000) (1,335,000) - 1,335,000 r 0 Other financing sources: 0 Bond proceeds 1,350,000 1,350,000 (1,350,000) 0 Change in fund balance 15,000 15,000 - (15,000) • • UNDESIGNATED, UNRESERVED 0 FUND BALANCE, BEGINNING OF YEAR - - - 0 UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 15,000 $ 15,000 $ - $ (15,000) 0 0 • • 0 0 0 0 • • 0 0 0 0 • • • 0 0 0 0 • 79 0 • 0 • • E nteipris a Funds For GAAP reporting purposes, the City reports three proprietary funds as major funds. These funds are the Sanitary Sewer Fund; the Storm.Sewer Fund, which consists of the Storm Sewer Fund and the Water Quality/Quantity Fund; and'the Water Fund, which includes' the Water Fund, Water SDC Fund and , • Water.CIP Fund. However, for budgetary and legal purposes these funds are accounted for separately as listed below: All of the City's enterprise funds meet the criteria for major. fund reporting and are reported in the basic financial statements. • Schedules or revenues -and changes' in fund net assets - budget and actual are presented here for each ' individual enterprise fund as required by Oregon regulations. MajorEnterprise Funds: Sanitary Sewer Fund - This fund. accounts for the City's sewer utility operations. Storm Sewer Fund - This fund accounts for the City's storm drainage operations. ' Storm Sewer Fund (budgetary basis financial statements only) Water Quality/ Quantity Fund (budgetary basis financial statements only) Water Fund - This fund accounts for the City's water operations. . Water Fund.(budgetary basis financial statements only). • Water SDC Fund (budgetary basis financial statements onl~ : • Water CIP Fund (budgetary basis financial statements only) - • CITY OF TIGARD, OREGON SANITARY SE WE R FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • • Variance Budgeted Amounts Actual Over Original Final Amounts (Under) REVENUES: Service charge $ 2,069,957 $ 2,069,957 $ 1,803,970 $ (265,987) Interest earnings 188,000 188,000 197,909 9,909 • • Total revenues 2,257,957 2,257,957 2,001,879 (256,078) • EXPENDITURES: • Public works 899,832 913,079 560,920 352,159 • Contingency 679,000 665,753 - 665,753 Capital projects 2,990,000 2,990,000 1,062,664 1,927,336 • Total expenditures 4,568,832 4,568,832 1,623,584 2,945,248 • Change in fund balance • before other financing (uses), (2,310,875) (2,310,875) 378,295 2,689,170 Other financing (uses): Transfer out (574,216) (574,216) (420,267) 153,949 • Change in fund balance (2,885,091) (2,885,091) (41,972) 2,843,119 • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 8,569,263 8,569,263 8,211,188 (358,075) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 5,684,172 $ 5,684,172 $ 8,169,216 $ 2,485,044 • • • • • • • • • • • • 80 • • • CITY OF TIGARD, OREGON SANITARY SEWER FUND RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES For the fiscal year ended June 30, 2006 • • Operating and • Non Operating Expenditures / Revenues Expenses • $ 2,001,879 $ 1,623,584 • • Change in accrued compensated absences - 11,430 Expenditures capitalized - (1,094,286) • Services performed by other funds - 420,267 • Depreciation expense - 493,155 • • • Revenue and expenses - page 33 $ 2,001,879 $ 1,454,150 • • • • • • • • • • • • • • • • • • • • 81 • • • CITY OF TIGARD, OREGON STORM SEWER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 Variance Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: Service charge $ 1,097,000 $ 1,097,000 $ 1,140,191 $ 43,191 Interest earnings 17,500 17,500 20,292 2,792 Total revenues 1,114,500 1,114,500 1,160,483 45,983 • EXPENDITURES: Public works 877,367 877,367 762,336 115,031 Contingency 150,000 150,000 - 150,000 Capital projects 674,000 674,000 295,537 378,463 Total expenditures 1,701,367 1,701,367 1,057,873 643,494 • Change in fund balance before other financing (uses) (586,867) (586,867) 102,610 689,477 Other financing (uses): Transfer out (411,908) (411,908) (261,167) 150,741 Change in fund balance (998,775) (998,775) (158,557) 840,218 • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 1,073,959 1,073,959 982,023 (91,936) UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 75,184 $ 75,184 $ 823,466 $ 748,282 f 82 CITY OF TIGARD, OREGON WATER QUALITY/QUANTITY FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • Variance Budgeted Amounts Actual Over • Original Final Amounts (Under) . REVENUES: • Service charge $ 26,500 $ 26,500 $ 36,625 $ 10,125 • Interest earnings 39,000 39,000 48,538 9,538 • • Total revenues 65,500 65,500 85,163 19,663 EXPENDITURES: • Contingency 34,000 34,000 - 34,000 • Capital projects 275,000 275,000 121,385 153,615 • Total expenditures 309,000 309,000 121,385 187,615 • Change in fund balance • before other financing (uses) (243,500) (243,500) (36,222) 207,278 Other financing (uses): Transfer out (76,194) (76,194) (795) 75,399 • Change in fund balance (319,694) (319,694) (37,017) 282,677 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,875,868 1,875,868 2,023,630 147,762 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 1,556,174 $ 1,556,174 $ 1,986,613 $ 430,439 • • • • • 83 • • • CITY OF TIGARD, OREGON STORM SEWER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES For the fiscal year ended June 30, 2006 • • • Operating and • Non Operating Expenditures / • Revenues Expenses • • Storm Sewer $ 1,160,483 $ 1,057,873 • Water Quality/ Quantity 85,163 121,385 • • Total 1,245,646 1,179,258 • Change in accrued compensated absences - (1,704) • Expenditures capitalized - (415,804) • Services performed by other funds - 261,962 • • Depreciation expense - 367,446 • • Revenue and expenses - page 33 $ 1,245,646 $ 1,391,158 • • • • • • • • • • • • • • • • • • • • • 84 • • • • CITY OF TIGARD, OREGON • WATER FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • • • • • Variance • Budgeted Amounts Actual Over • Original . Final Amounts (Under) . REVENUES: • Intergovernmental revenue $ 50,000 $ 50,000 $ - $ (50,000) Service charge 6,895,367 6,907,367 6,917,583 10,216 • System development charges 261,491 261,491 408,321 146,830 Interest earnings 185,000 185,000 65,201 (119,799) Miscellaneous 65,500 53,500 74,174 20,674 • Total revenues 7,457,358 7,457,358 7,465,279 7,921 • EXPENDITURES: Public works 5,250,315 5,250,315 5,307,634 (57,319) Contingency 1,000,000 864,140 - 864,140 Capital projects 1,130,250 1,266,110 649,677 616,433 • Total expenditures 7,380,565 7,380,565 5,957,311 1,423,254 • • Change in fund balance • before other financing (uses) 76,793 76,793 1,507,968 (1,415,333) • • Other financing (uses): • Transfer in 63,701 63,701 - (63,701) . Transfer out (7,339,350) (7,339,350) (6,733,681) 605,669 . Total other financing sources (uses) (7,275,649) (7,275,649) (6,733,681) 541,968 • Change in fund balance (7,198,856) (7,198,856) (5,225,713) (873,365) • UNDESIGNATED, UNRESERVED ' FUND BALANCE, BEGINNING OF YEAR 7,204,703 7,204,703 7,471,081 266,378 • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 5,847 $ 5,847 $ 2,245,368 $ 2,239,521 • • • • • • • • 85 • • • • CITY OF TIGARD, OREGON WATER SDC FUND SCHEDULE OF REVENUES AND'EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • • Variance • Budgeted Amounts Actual Over Original Final Amounts (Under) REVENUES: • System development charges $ 346,272 $ 346,272 $ 687,550 $ 341,278 Interest earnings 45,000 45,000 37,550 (7,450) • • Total revenues 391,272 391,272 725,100 333,828 ` EXPENDITURES: • . Contingency 100,000 41,640 - 41,640 . Capital projects 830,000 888,360 218,940 669,420 Total expenditures 930,000 930,000 218,940 711,060 • Change in fund balance before other financing (uses) (538,728) (538,728) 506,160 1,044,888 • Other financing (uses): • Transfer out (970,476) (970,477) (900,000) 70,477 Change in fund balance (1,509,204) (1,509,205) (393,840) 1,115,365 • • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF YEAR 1,520,563 1,520,563 1,949,968 429,405 • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 11,359 $ 11,358 $ 1,556,128 $ 1,544,770 • • • • • • • 86 • CITY OF TIGARD, OREGON WATER CIP FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • Variance Budgeted Amounts Actual Over Original Final Amounts (Under) . REVENUES: System development charges $ 350,000 $ 350,000 $ 558,360 $ 208,360 Interest earnings 100,000 100,000 210,514 110,514 Miscellaneous - - 1,710 1,710 Total revenues 450,000 450,000 770,584 320,584 • EXPENDITURES: Contingency 373,500 113,500 - 113,500 Capital projects 3,538,993 3,798,993 1,282,533 2,516,460 Total expenditures 3,912,493 3,912,493 1,282,533 2,629,960 • Change in fund balance before other financing sources (3,462,493) (3,462,493) (511,949) 2,950,544 Other financing sources: Transfers in 6,570,476 6,570,478 6,500,000 (70,478) Change in fund balance 3,107,983 3,107,985 5,988,051 2,880,066 • UNDESIGNATED, UNRESERVED FUND BALANCE, BEGINNING OF. YEAR 1,971,127 1,971;127 3,234,275 1,263,148 UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ , 5,079,110 $ 5,079,112 $ 9,222,326 $ 4,143,214 . • 87 • CITY OF TIGARD, OREGON WATER FUNDS RECONCILIATION OF BUDGETARY REVENUES AND EXPENDITURES TO PROPRIETARY REVENUES AND EXPENSES • For the fiscal year ended June 30, 2006 • • Operating and Non Operating Expenditures / • Revenues Expenses • • Water $ 7,465,279 $ 5,957,311 • Water SDC 725,100 218,940 • Water CIP 770,584 1,282,533 • • Total 8,960,963 7,458,784 • • Change in inventory - 54,384 • Change in accrued compensated absences - 17,567 • Expenditures capitalized - (2,275,870) • Services performed by other funds - 1,133,681 Depreciation expense - 903,056 • • • Revenue and expenses - page 33 $ 8,960,963 $ 7,291,602 • • • • • • • • • i • • • • • • • • • • • • • • 88 • • CITY OF TIGARD, OREGON ENTERPRISE FUNDS RECONCILIATION OF BUDGETARY FUND BALANCE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS NET ASSETS For the fiscal year ended June 30, 2006 • • • Total Total • Sanitary Storm Total Sewer Sewer Water • • Sanitary Sewer Fund $ 8,169,216 $ - $ • Storm Sewer Fund - 823,466 - Water Quality /Quality Fund 1,986,613 • Water Fund - 2,245,368 Water SDC Fund - - 1,556,128 • Water CIP Fund - - 9,222,326 • Fund balance - budget basis 8,169,216 2,810,079 13,023,822 • Adjustments from budgetary basis to generally accepted accounting principles basis: Change in inventory - 37,201 • Inventory - - 82,357 Capital assets, net 15,481,850 11,022,763 31,553,595 S Accrued vacation payable (31,362) (26,064) (82,061) • Total Net Assets - • generally accepted accounting • principles basis - pages 32 and 33 $ 23,619,704 $ 13,806,778 $ 44,614,914 • • • • • • • • • • • 89 • • • S . ed totals are reported . un n bm Se~Ce orted here• ~'e co 1 I me it ce funds are rep rte presented serve ' actual' are . for internal cial statem " eats the basic fu?ai' budget an d ~mbuung statem funds d net 'assets ul un ty alongside the enterp re eases, and chedanges by Orego. n regalations- the O es of revenues, .exP d as re9"'r adnative,nctions Schedul al $ervice fun the Meet' related to for each intern central . activity fund accounts tor the here ,,d This, fund 'accounts for all central rvices f fund - the City . Property Manegenei ment d'vislons fleet/ ce and Prop rlY Maintenan 0 • • CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS • JUNE 30, 2006 • • • • Central Fleet/Property • Services Management • Fund Fund Total • ASSETS • • Current assets: Cash and investments $ 1,186,728 $ 116,885 $ 1,303,613 • Accounts Receivable 1,819 - 1,819 • Inventory 32,853 13,917 46,770 • Total assets 1,221,400 130,802 1,352,202 • • LIABILITIES • • Current liabilities: • Accounts payable and accrued . liabilities 124,605 44,210 168,815 Accrued compensated absences 138,087 9,731 147,818 • • Total liabilities 262,692 53,941 316,633 • • NET ASSETS • Net assets, unrestricted $ 958,708 $ 76,861 $ 1,035,569 • • • • • • • • • • • • • • • • • • 90 • • • CITY OF TIGARD, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES • AND CHANGES IN FUND NET ASSETS • For the fiscal year ended June 30, 2006 • • • Central Fleet/Property • Services Management • Fund Fund Total • OPERATING REVENUES: • • Service charges $ 4,406,155 $ 1,182,980 $ 5,589,135 • Miscellaneous 14,656 - 14,656 Total operating revenues 4,420,811 1,182,980 5,603,791 • • OPERATING EXPENSES: • • Salaries and wages 2,741,279 347,609 3,088,888 Contracted services 545,927 279,354 825,281 General, administrative and other 1,183,157 525,769 1,708,926 • Total operating expenses 4,470,363 1,152,732 5,623,095 • • Operating income (loss) (49,552) 30,248 (19,304) • • NONOPERATING REVENUE: • Interest revenue 24,395 770 25,165 • Net income (loss) (25,157) 31,018 5,861 • • NET ASSETS - beginning of year 983,865 45,843 1,029,708 • • NET ASSETS - end of year $ 958,708 $ 76,861 $ 1,035,569 • • • • • • • • • • • • • • • • 91 • • • • CITY OF TIGARD, OREGON • INTERNAL SERVICE FUNDS • COMBINING STATEMENT OF CASH FLOWS • For the fiscal year ended June 30, 2006 • • • • • • • Central Fleet/Property • Services Management Fund Fund Totals • • CASH FLOWS FROM OPERATING ACTIVITIES • Receipts from customers $ 4,406,155 $ 1,182,980 $ 5,589,135 • Payments to suppliers (1,713,347) (841,887) (2,555,234) • Payments to employees (2,724,499) (350,625) (3,075,124) • Other receipts 14,656 14,656 • Net cash provided (used) by operating activities (17,035) (9,532) (26,567) • • CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 24,395 770 25,165 • • Net increase in cash and cash equivalents 7,360 (8,762) (1,402) • • Balances--beginning of the year 1,179,368 125,647 1,305,015 • Balances--end of the year $ 1,186,728 $ 116,885 $ 1,303,613 • • • RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ (49,552) $ 30,248 $ (19,304) • Adjustments to reconcile operating income (loss) to net cash • provided by operating activities: Change in assets and liabilities: • Receivables 1,635 - 1,635 • Inventories (9,663) (2,289) (11,952) • • Accounts payable 23,765 (34,475) (10,710) • Accrued compensated absences 16,780 (3,016) 13,764 • Net cash provided (used) by operating activities $ (17,035) $ (9,532) $ (26,567) • • • • • 92 • • CITY OF TIGARD, OREGON • CENTRAL SERVICES FUND • • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL • For the fiscal year ended June 30, 2006 • • • • • • • Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: • Interest earnings $ 30,000 $ 30,000 $ 24,395 $ (51605) • Miscellaneous - - 14,656 14,656 • • Total revenues 30,000 30,000 39,051 9,051 • • EXPENDITURES: Policy and administration 4,103,247 4,153,837 3,859,491 294,346 • Contingency 718,625 571,035 - 571,035 • General government 417,682 514,682 484,836 29,846 • • Total expenditures 5,239,554 5,239,554 4,344,327 895,227 • • Orange in fund balance • before other financing sources (uses) (5,209,554) (5,209,554) (4,305,276) 904,278 • Other financing sources (uses): • Transfer in 4,638,892 4,638,892 4,406,155 (232,737) • Transfer out (201,077) (201,077) (109,257) 91,820 • • Total other financing sources (uses) 4,437,815 4,437,815 4,296,898 (140,917) • Change in fund balance (771,739) (771,739) (8,378) 763,361 • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 1,314,517 1,314,517 1,105,173 (209,344) • • UNDESIGNATED, UNRESERVED • FUND BALANCE, END OF YEAR $ 542,778 $ 542,778 $ 1,096,795 $ 554,017 • • • • • • • • • • 93 • • • • • • CITY OF TIGARD, OREGON • FLEET/PROPERTY MANAGEMENT FUND • SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL For the fiscal year ended June 30, 2006 • • • • • Variance • Budgeted Amounts Actual Over • Original Final Amounts (Under) • REVENUES: • • Interest earnings $ 3,350 $ 3,350 $ 770 $ (2,580) • EXPENDITURES: • Public works 1,141,217 1,166,225 1,079,106 87,119 • Contingency 90,000 64,992 - 64,992 • • Total expenditures 1,231,217 1,231,217 1,079,106 152,111 • Change in fund balance • before other financing sources (uses) (1,227,867) (1,227,867) (1,078,336) (154,691) • • Other financing sources (uses): • Transfer in 1,258,707 1,258,707 1,182,980 (75,727) • Transfer out (82,348) (82,348) (76,641) 5,707 • Total other financing sources (uses) 1,176,359 1,176,359 1,106,339 (70,020) • Change in fund balance (51,508) (51,508) 28,003 (224,711) • • UNDESIGNATED, UNRESERVED • FUND BALANCE, BEGINNING OF YEAR 60,000 60,000 58,587 (1,413) • • UNDESIGNATED, UNRESERVED FUND BALANCE, END OF YEAR $ 8,492 $ 8,492 $ 86,590 $ 78,098 • • • • • • • • • • • • • 94 • • s, tam chedu es , Cl fiances sclUde in thts Se~ Schedule d C~utstand'n . coons an . . PrOF ns 'Transactio , . Pa ble . rid Bond Interest' . 'Tenn Notes }3oack a is 'of Long . ent Service Reg6remen rovem a . Fine Debt s crof t IMP , is Of eq~e~en ~ Fuse Debt Service. anon Bonds ! oacks is of G6riera iCe equemen g • tore Debt Se : i . • • CITY OF TIGARD, OREGON SCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES • For the fiscal year ended June 30, 2006 • • w . • • Property Add Property Taxes Levy as Taxes Receivable Extended Deduct Add Receivable • June 30, by Discounts (Deduct) Add Deduct June 30, • 2005 Assessor Allowed Adjustments Interest Collections 2006 • 2005 - 2006 E S 11,115,136 $ (281,996) $ (53,199) S 4,178 S (10,571,115) $ 213,004 w 2004 - 2005 225,240 - (5,587) 10,941 (176,989) 53,605 • 2003- 2004 61,520 (2,286) 6,239 (39,900) 25,573 • • 2002 - 2003 31,338 (1,211) 5,805 (24,751) 11,181 • 2001- 2002 11,046 (1,090) 2,924 (9,981) 2,899 • 2000 - 2001 2,655 (1,899) 620 1,376 • 1999 - 2000 &Prior 4,207 (750) 757 (1,223) 2,991 • S 336,006 S 11,115,136 _L__281,996 ) $ (66,022) S 31,464 S (10,823,959) S 310,629 • Property Taxes Cash Receivable Distributed as follows: Collections June 30, 2006 • General Fund: Current $ 9,770,493 S 196,872 • Prior years' levies 234,564 90,431 w Total General Fund 10,005,057 287,303 • Enterprise Funds: Prior Years' levies 6 • • Debt Service Funds: Current 800,625 16,132 • Prior years' levies 18,271 7,194 • Total Debt Service Funds 818,896 23,326 • Total S 10,823,959 S 310,629 • . NOTE: Taxes, other than property taxes, are included in Taxes revenue on the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance (page 27). • • • • • • • • 95 • w • CITY OF TIGARD, OREGON SCHEDULE OF BOND AND BOND INTEREST TRANSACTIONS For the fiscal year ended June 30, 2006 • • • • Bond Transactions Interest Transactions • • Outstanding June Matured/ Outstanding • Bancroft Bonds Original Issue 30, 2005 Additions Called Paid June 30, 2006 Matured Paid • Issued November 30, 1998 S 1,565,576 S 348,026 S S 348,026 S (348,026) S - S 10,528 S (10,528) • Issued June 27, 2002 1,307,969 907,823 37,900 (37,900) 869,923 66,017 (66,017) • Issued December 3, 2003 1,947,678 1,848,418 435,395 435,395 1,413,023 70,286 (70,286) $ 3,104,267 S S 821,321 1_18 O21 $ 2,282,946 S 146,831 _L_1146,831 • General Obligation Bonds • Issued December 4, 2002 $ 13,000,000 S 12,060540 $ $ 488535 S 488,335 S 11,572,205 S 484,228 _L_(484,228 ) • • • • • • • • • • • • • • • • • • • • • • 96 • • • • CITY OF TIGARD, OREGON • SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS • OF LONGTERM NOTES PAYABLE JUNE 30, 2006 • • • Issued - January 23, 2002 • 3.00% to 4.35% Original Issue - $ 2,290,248 Total • Payment Coupon Debt Date Principal Interest Rate Service • • January 1, 2007 222,820 59,205 3.65% 282,025 • January 1, 2008 229,201 51,072 3.80% 280,273 • • January 1, 2009 235,690 42,363 4.00% 278,053 • January 1, 2010 247,318 32,935 4.10% 280,253 • January 1, 2011 259,053 22,795 4.25% 281,848 January 1, 2012 270,925 11,785 4.35% 282,710 • • Totals $ 1,465,007 $ 220,155 $ 1,685,162 • • • • • • • • • • • • • • • • • • • • • • 97 • • • CITY OF TIGARD, OREGON • SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS • OF BANCROFT IMPROVEMENT BONDS • June 30, 2006 • • • • • Issued Issued • June 27, 2002 December 3, 2003 Year of Total Requirements 7.25% 3.90% • Maturity Principal Interest Principal Interest Principal Interest • 2006-2007 $ 206,199 $ 116,058 $ 40,800 $ 62,617 $ 165,399 $ 53,441 • • 2007-2008 215,712 106,532 43,800 59,604 171,912 46,928 • 2008-2009 225,683 96,527 47,000 56,370 178,683 40,157 2009-2010 236,219 86,022 50,500 52,901 185,719 33,121 • • 2010-2011 247,234 74,982 54,200 49,174 193,034 25,808 • 2011-2012 258,835 63,380 58,200 45,173 200,635 18,207 • • 2012-2022 893,064 189,971 575,423 177,573 317,641 12,398 Totals $ 2,282,946 $ 733,472 $ 869,923 $ 503,412 $ 1,413,023 $ 230,060 • • • • • • • 0 • • 0 • • • • • 0 • • • • • • 98 • • 0 • CITY OF TIGARD, OREGON SCHEDULE OF FUTURE DEBT SERVICE REQUIREMENTS OF GENERAL OBLIGATION BONDS • June 30, 2006 • • • • • • Fiscal Issued: December 4, 2002 • Year of Total Debt 3.00% to 4.75% • Maturity Requirement Principal Interest • 2006-2007 975,414 505,836 469,578 • 2007-2008 972,814 518,411 454,403 • 2008-2009 974,913 536,063 438,850 • 2009-2010 976,563 553,795 422,768 2010-2011 976,383 571,890 404,493 • 2011-2012 974,758 590,281 384,477 • • 2012-2013 977,118 613,891 363,227 • • 2013-2014 972,993 632,787 340,206 • 2014-2015 972,518 656,991 315,527 • • 2015-2016 975,719 686,471 289,248 • • 2016-2022 6,816,022 5,705,789 1,110,233 • $ 16,565,215 $ 11,572,205 $ 4,993,010 • • • • • • • • • • • • • • 99 • • d • STATISTICAL SECTION • This part of the City of Tigard's comprehensive annual financial report.presents detailed information as a context for understanding what.the information in the financial statements, note disclosures, required supplementary information, and supplementary information says about the City's overall financial health. • Contents Page • Financial Trends loo- 109 These schedules contain trend information to help the reader understand how financial performance has changed over time. • Revenue Capacity, - 110 113 • These schedules contain information to help the reader assess the City's most significant local revenue source, property taxes. Debt Capacity 114-1 118 ' These schedules present information to help the reader assess the affordability of the City's' current levels of outstanding debt and the. City's ability to issue,additional debt in the future. Demographic.and Economic Information 119- 121- These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 122 125' These. schedules contain service and infrastructure data-to help the reader understand how the information in the City's financial re port relates to the services the City' rovides and the activities it performs. • Sources: Unless otherwise rioted, the information in these schedules is derived from the comprehensive annual . financial. reports for the relevant year. The City implemented GASB Statement 34 in the fiscal-year 2003 .and is • implementing GASB Statement 44 with this report. 0.0.9 r TIGARD • CITY OF TIGARD, OREGON NET ASSETS BY COMPONENT for the last four fiscal years (accrual basis of accounting) • • • • Fiscal Year . 2003 2004 2005 2006 Governmental activities • Invested in capital assets, net of related debt. $ 165,584,303 $ 167,289,278 $ 169,543,524 $ 168,577,473 • Restricted 2,529,038 1,782,382 1,367,179 2,812,994 • Unrestricted 21,057,629 21,197,594 21,178,146 21,685,865 • Total governmental activities net assets 189,170,970 190,269,254 192,088,849 193,076,332 • • Business-type activities Invested in capital assets, net of related debt 48,011,698 51,186,594 51,861,963 58,058,208 • Restricted 5,816,599 5,548,698 3,761,976 3,761,976 . Unrestricted 18,755,869 19,877,044 20,374,983 20,480,106 • Total business-type activities net assets 72,584,166 76,612,336 75,998,922 82,300,290 • • Pnmarygovemment • Invested in capital assets, net of related debt 213,596,001 218,475,872 221,405,487 226,635,681 Restricted 8,345,637 7,331,080 5,129,155 6,574,970 • Unrestricted 39,813,498 41,074,638 41,553,129 42,165,971 • • Total primary govemment net assets $ 261,755,136 $ 266,881,590 $ 268,087,771 $ 275,376,622 • • • • • • • • • • • • • • • • • 100 • • • • QTY OF TIGARD, OREGON CHANGES IN NET ASSETS for the last four fiscal years • (accrual basis of accounting) • • • • Fiscal Year • • 2003 2004 2005 2006 • Expenses Governmental activities Community services $ 8,058,670 $ 8,744,613 $ 10,253,764 $ 11,241,521 • Public works 1,890,644 2,735,212 2,172,874 3,078,772 • Development services 3,311,058 3,791,317 4,224,696 4,669,452 • Policy and administration 3,548,649 6,175,917 6,166,577 7,435,899 • Interest on long-term debt 602,291 947,848 716,899 935,359 Total governmental activities expenses 17,411,312 22,394,907 23,534,810 27,361,003 • Business-type activities • Sewer 901779 945,102 1,297,582 1,454,150 • Storm Water 1,056,795 1,090,550 1,374,459 1,391,158 • Water 5,325,045 5,555,590 8,200,928 7,291,602 • Total business-type activities program expenses 7,283,619 7,591,242 10,872,969 10,136,910 • Total primary government expenses $ 24,694,931 $ 29,986,149 $ 34,407,779 $ 37,497,913 • Program Revenues • Governmental activities Charges for services: • Community services 114,454 119,513 146,798 • Public works - 603,352 1,741,747 2,165,451 • Development services 73,332 2,928,733 3,335,125 4,463,283 . Policy and administration - 822,177 908,053 1,015,976 Operating grants and contributions 133,253 252,805 285,888 133,509 Total governmental activities program revenues 206,585 4,721,521 6,390,326 7,925,017 • Business-type activities • Charges for services: • Sewer 1,923,598 1,809,032 1,601,113 1,555,358 • Storm Water 1,246,809 1,156,863 1,156,220 1,176,816 • Water 6,877,765 7,202,910 7,762,153 6,953,809 Capital grants and contributions - - - 6,077,864 • Total business-type activities program revenues 10,048,172 10,168,805 10,519,486 15,763,847 • Total primary government program revenues $ 10,254,757 $ .14,890,326 $ 16,909,812 $ 23,688,864, • • • • • • • • • • • • 101 • • • • QTY OF TIGARD, OREGON CHANGES IN NET ASSETS for the last four fiscal years (accrual basis of accounting) • • • • • Fiscal Year 2003 2004 2005 2006 • Net (Expense) Revenue • Governuental activities. $ (17,204,727) S (17,613,386) S (17,144,484) $ (19,435,986) Business-type activities 2,764,553 2,577,563 716,899 5,626,937 Total primary government net expenses $ (14,440,174) $ (15,035,823) $ (16,427,585) $ (13,809,049) • • • General Revenues and Other Changes in Net Assets • Governmental activities: • Taxes Property taxes S 10,472,108 $ 9,763,281 S 10,273,332 $ 10,804,524 Franchise taxes 2,567,881 2,431,324 2,670,050 3,042,187 • Restricted intergovernmental revenues (excluding grants) - 3,447,895 3,288,530 • Unrestricted intergovernmental revenues 8,778,951 5,204,135 1,430,206 1,863,706 Interest earnings 912,288 890,785 859,057 922,508 • Miscellaneous (90,350) 422,145 283,539 513,943 • Total govenunental activities 22,640,878 18,711,670 18,964,079 20,435,398 Business-type activities: • Interest earnings 593,484 426,853 604,977 580,004 • Miscellaneous 248,885 23,754 135,092 94,427 • Total business-type activities 842,369 450,607 740,069 674,431 • Total primary govenunent $ 23,483_247 $ 19,162,277 $ 19,704,148 $ 21,109,829 Change in Net Assets Governmental activities $ 5,436,151 $ 1,098-284 $ 1,819,595 $ 999,412 Business-type activities 3,606,922 3,028,170 386,586 6,301,368 • Total primary government $ 9,043,073 $ 4,126,454 $ 2,206,181 $ 7,300,780 • • • • • • • • • • • • • • • • • • 102 • • • QTY OF TIGARD, OREGON • FUND BALANCES OF GOVERNMENTAL FUNDS for the last four fiscal years (modified accrual basis of accounting) • • • • • • • Fiscal Year • 2003 2004 2005 2006 • • General Fund Reserved $ 58,523 $ 69,069 $ 54,632 $ 20,291 • Unreserved 7,878,589 8,343,762 8,131,112 8,368,793 • Total general fund $ 7,937,112 $ 8,412,831 $ 8,185,744 $ 8,389,084 • • • • All other governmental funds • Reserved $ 15,612,154 $ 7,198,519 $ 4,821,174 $ 2,719,998 Ureserved, reported in: • Special reveune furnds 8,355,147 7,282,391 9,253,467 10,208,277 Debt service funds - - - 1,811,861 • Capital projects funds 9,050 8,971 - 1,589,018 • Total all other governmental funds $ 23,976,351 $ 14,489,881 $ 14,074,641 $ 16,329,154 • • • • • • • • • • • • • • • • • • • • • 103 • • • • • • CITY OF TIGARD, OREGON CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS • for the last four fiscal years • (modified accural basis of accounting) • • • Fiscal Year • • 2003 2004 2005 2006 • REVENUES • Taxes $ 10,453,992 $ 9,775,325 $ 10,334,295 $ 10,817,886 • Franchise fees 2,567,881 2,431,324 2,670,050 3,042,187 • Special assessments 542,816 568,971 373,141 1,421,765 • Licenses and permits 3,505,499 3,668,335 4,442,222 4,852,719 • Intergovernmental revenues 4,837,982 5,456,940 5,134,991 5,285,744 C barges for service 1,539,676 1,819,907 2,354,372 2,689,485 • Fines and forfeitures 480,963 613,785 646,406 702,469 • Interest earnings 902,312 .880,070 836,359 903,635 • Miscellaneous 424,525 420,390 280,411 502,951 S Total revenues 25,255,646 25,635,047 27,072,247 30,218,841 • • • EXPENDITURES • Current operating: • Community services 8,692,327 9,014,200 10,750,344 11,377,118 • Public works 2,236,753 2,104,617 2,172,875 2,273,569 Development services 3,628,238 3,891,491 4,316,517 4,709,434 • Policy and administration 3,884,883 4,051,476 4,334,147 4,564,400 Debt service: • Principal 2,344,496 1,300,979 1,285,275 1,526,286 • Interest 302,674 951,072 748,417 697,305 • Capital outlay 6,613,827 13,210,578 4,106,999 2,352,123 • Total expenditures 27,703,198 34,524,413 27,714,574 27,500,235 • • Excess (deficient} of revenues • over (under) expenditures (2,447,552) (8,889,366) (642,327) 2,718,606 • • OTHER FINANCING SOURCES (USES) • • Proceeds from bond / long-term note 14,509,175 1,947,678 - - • Transfers in 3,747,649 2,581,668 2,893,435 4,046,802 • Transfers out (3,747,649) (2,581,668) (2,893,435) (4,046,802) • Total other financing sources (uses) 14,509,175 1,947,678 - • Net change in fund balances $ 12,061,623 $ (6,941,688) $ (642,327) $ 2,718,606 • • Debt service as a percentage of noncapital expenditures 12.55% 10.57% 8.61% 8.84% • • • • • 104 • • CITY OF TIGARD, OREGON GOVERNMENT-WIDE REVENUES! For the last four fiscal years Program Revenues General Revenues Gain (Loss) Fiscal Charges Operating Capital on Disposition Year Ended for Grants and Grants and Intergovernmental Interest Donated of Capital June 30 Services Contributions Contributions Taxes Franchise Taxes Revenues Earnings Assets Assets Miscellaneous Total 2003 $ 14,107,966 S 133,253 $ 87,760 $ 10,472,108 S 2,567,881 $ 4,704,729 $ 1,505,772 S (27,850) $ (491,023) S 677,408 33,738,004 2004 16,561,227 252,805 6,077,864 9,763,281 2,431,324 5,204,135 1,317,638 445,899 42,054,173 2005 16,623,924 285,888 10,273,332 2,670,050 4,878,101 1,464,034 418,631 36,613,960 2006 17,477,491 133,509 6,077,864 10,804,524 3,042,187 5,152,236 1,502,512 608,370 44,798,693 *This schedule has been added with the implementation of GASB 34 effective fiscal )ear 2003. Source: Comprehensive Annual Financial Report of the Gry. O 0000090000000000000000000000000000000000000000000006000 CITY OF TIGARD, OREGON GOVERNMENT-WIDE EXPENSES BY FUNCTION For the last four fiscal years Fiscal Interest on Year Ended Community Development Policy and Long-Term Storm June 30 Services Public Works Services Administration Debt Sewer Water Water Total 2003 $ 8,058,670 $ 1,890,644 $ 3,311,058 $ 3,548,649 $ 602,291 $ 901,779 $ 1,056,795 $ 5,325,045 $ 24,694,931 2004 8,744,613 2,735,212 3,791,317 6,175,917 947,848 945,102 1,080,550 5,555,590 29,986,149 2005 10,253,764 2,172,874 4,224,696 6,166;577 716,899 1,297,582 1,374,459 8,200,928 34,407,779 2006 11,241,521 3,078,772 4,669,452 7,435,899 935,359 1,454,150 1,391,158 7,291,602 37,497,913 *This schedule has been added with the implementation of GASB 34 effective fiscal year 2003. Source: Comprehensive Annual Financial Report of the City. • CITY OF TIGARD, OREGON GENERAL GOVERNMENTAL REVENUES BY SOURCES - • BUDGETARY BASIS • For the last ten fiscal years • • • Fiscal Licenses Inter- Charges • Year-Ended Franchise and governmental For Fines and Miscellaneous • June 30 Taxes Fees Pemtits Revenues Services Forfeitures Revenues ° Total • 1997 S 7,699,435 S 1,736,933 S 3,746,604 S 3,834,114 S 798,129 $ 397,637 S 1,632,664 S 19,845,516 • 1998 8,255,173 1,755,719 2,823,031 4,085,789 375,890 378,145 1,522,273 19,1%,020 • 1999 8,617,809 1,970,740 2,780,779 4,715,386 449,997 390,967 4,082,654 23,008,332 • 2000 7,876,219 1,960,768 2,271,148 4,658,795 675,323 371,594 3,404,178 21,218,025 • 2001 8,504,271 2,063,978 4,057,117 4,760,711 732,797 367,732 1,730,569 22,717,175 • 2002 9,018,360 2,674,388 3,147,960 4,778,451 443,418 415,760 1,359,360 21,837,697 2003 10,453,992 2,567,881 3,505,499 4,837,982 865,242 480,%3 1,869,653 24,581,212 2004 9,775,325 1,431,324 3,668,335 5,456,940 1,148,271 613,785 1,858,371 24,952,351 • 2005 10,334,295 2,670,050 4,442,222 5,134,991 1,743,493 646,406 1,489,909 26,46067 • 2006 10,817,886 3,042,187 4,852,719 5,285,744 2,689,485 702,469 2,828,351 30,218,841 ' Includes special assessments collections and private donations. • Infomntion derived from Comprehensive Annual Financial Reports for all Governmental Fund Types • • • • • • • • • • • • • • • • • • • • • • • • • 107 • • • • • CITY OF TIGARD, OREGON • GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION - • BUDGETARY BASIS • For the last ten fiscal years • • City-Wide Support • Public Works Functions, Fiscal and Capital • Year Ended Community Community Policy and Projects Debt lime 30 Services Development Administration and Other Service Total 1997 S 6,537,097 $ 3,507,919 $ 1,699,813 $ 3,182,818 $ 2,117,957 $ 17,045,604 1998 6,973,417 4,072,109 1,914,207 5,084,190 2,171,542 20,215,465 1999 7,778,333 4,476,564 2,100,829 4,349,185 6,850,522 25,555,433 2000 8,322,224 4,738,142 2,287,819 3,902,719 2,699,338 21,950,242 • 2001 8,696,210 4,832,637 2,593,816 3,894,954 672,656 20,690,273 • 2002 8,372,801 5,927,523 309,559 2,700,075 2,785,404 20,095,362 • 2003 8,692,327 5,864,991 279,753 2,971,446 2,647,170 20,455,687 • 2004 9,014,200 5,996,108 821,553 13,210,578 4,310,054 33,352,493 2005 10,750,344 6,489,391 1,017,764 4,106,999 2,033,691 24,398,189 • 2006 11,377,118 6,983,003 4,564,400 2,352,123 2,223,591 27,500,235 • • • • • • • • • • • • • • • • • • • • • 108 • • QTY OF TIGARD, OREGON MARKET VALUE AND ASSESSED VALUE OF TAXABLE PROPERTY For the last ten fiscal years Fiscal Assessed Value Assessed to • Year Public Total Estimated Value as a Ended Real Personal Utility Total Direct Real Market Percentage June 30 Property * Property a Property Assessed Value Tax Rate Value (RMV) of RMV • 1997 $ $ $ $ 3,111,388,324 $ 2.54 S 3,111,388,324 100.00% 1998 2,711,669,298 3.12 3,424,967,272 79.17% • 1999 2,556,684,350 212,026,836 100,949,648 2,869,660,834 3.10 3,601,609,341 79.68% 2000 2,694,978,680 224,934,987 113,115,415 3,033,029,082 2.59 3,938,205,819 77.02% 2001 2,903,403,430 229,530,723 121,662,548 3,254,596,701 2.60 4,354,132,334 74.75% ` 2002 3,085,457,460 221,564,523 163,556,880 3,470,578,863 2.58 4,624,009,037 75.06% 2003 3,227,082,340 215,829,652 178,798,982 3,621,710,974 2.90 4,804,794,161 75.38% 2004 3,376,409,604 206,038,692 171,911,103 3,754,359,399 2.68 5,151,890,520 72.87% 2005 3,543,033,334 204,589,409 160,586,232 3,908,208,975 2.70 5,402,433,125 72.34% r 2006 3,717,827,074 210,841,242 159,236,470 4,087,904,786 2.70 5,913,857,305 69.12% Source: Washington County Department of Assessment and Taxation. Assessed value, up until July 1, 1997, was defined as market value. A new property tax limitation known as Measure 50 passed in May 1997 which disconnected assessed value from market value for purposes of distributing • property tax levies. Measure 50 reduced assessed value for 1997/98 to the 1995/96 market value less 10% plus new construction. In addition, the maximum assessed value of a property was limited to a maximum of 3% growth per year. Total assessed value is available for these fiscal years; however the underlying allocation is unavailable. Assessed Value by Type for the fiscal year ended 2006 Real Property 91% • Personal Property • 5% • Public Utility Property 4% • 109 CITY OF TIGARD, OREGON PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (Dollars per $1,000 of Assessed Value rounded to the nearest cent) For the last ten fiscal years Tigard/ Washington Washington Fiscal Metzger Tualatin . Beaverton Tualatin County County Year Water School School Unified Valley Rural Fire Portland Education Other Ended District City of Washington District District Sewerage Fire & Rescue District Community Service Taxing June 30 Combined Tigard County No. 23- No. 48 Agency District No. 2 College District Agencies Total 1997 $ 0.23 $ 2.54 S 1.35 $ 12.85 S 11.41 S 0.05 $ _1.52 S $ 0.73 $ 0.30 $ 0.83 $ 31.81 1998 0.27 3.12 2.60 6.60 6.16 1.54 - 0.37 - 0.78 21.44 1999 0.28 3.10 2.57 6.65 6.17 1.53 1.15 0.35 0.81 22.61 2000 0.21 2.59 2.54 6.31 6.19 1.56 1.29 0.36 0.70 21.75 2001 0.25 2.60 2.53 7.24 6.12 1.59 1.30 0.37 0.70 22.7 O 2002 0.23 2.58 2.96 7.04 6.37 1.83 1.31 0.55 0.69 23.56 2003 0.23 2.90 2.91 7.90 6.56 1.82 1.12 0.49 0.63 24.56 2004 0.22 2.68 2.90 7.88 8.01 1.83 1.12 0.51 0.62 25.77 2005 0.13 2.70 2.87 7.79 6.60 1.83 1.12 0.51 0.62 24.16 2006 - 2.72 2.84 7.85 7.98 1.82 1.12 0.50 0.63 25.44 Tax rates, expressed in dollars and cents per $1,000 of assessed value of taxable property in each taxing district, are required by the State Constitution to be uniform throughout the district. Taxes levied may be composed of three types of levies: (1) a base operating levy, (2) a special operating levy approved by the voters in the district and (3) a debt service levy. Each district with outstanding General Obligation bonded debt is required to levy taxes sufficient with other available funds, to meet principal and interest payments when due. All operating levies were convened to a permanent rate by the passage of measure 50 in 1997. Permanent rates can not be changed. Prior to Measure 50, rates were dependent on both the levy and assessed value. Assessment and tax rolls are prepared and maintained by Washington County for all taxing districts with territory in the County. The County collects all taxes against property in the County (except assessments for improvements charged to benefited property and distributes taxes collected at least monthly. No charges are made to the taxing districts for these services. NOTE: • Not all taxing districts are charged on each parcel of property, actual rates on tax bills are a combination of the above depending upon the location of the parcel and the school district and sewer and water district boundaries. Total overlapping tax rates for property in Tigard in 2004 ranged from $12.11/$1,000 to $16.64/$1,000. Source: Washington County Department of Assessment and Taxation. • CITY OF TIGARD, OREGON PRINCIPAL PROPERTY TAXPAYERS For current and nine years ago • • • • • 2006 1997 Percentage Percentage Taxable of Total City Taxable of Total Cary • Assessed Assessed Assessed Assessed • Taxpayer Value Rank Value Value Rank Value • Pacific Realty Associates $ 155,750,406 1 3.81% $ 131,953,480 1 4.24% PPR Washington Square, LLC 85,486,047 2 2.46% - - EOP-Lincoln, LLC 72,572,972 3 1.78% - - • Verizon Northwest Inc 49,926,247 4 1.22% - - • • Calwest Industrial Holdings, LLC 32,954,660 5 0.81% - - Sprint Spectrum LP (PCS) 29,855,700 6 0.73% - - • Portland General Electric 27,947,989 7 0.68% - - • Northwest Natural Gas 24,578,200 8 0.60% - - • Nesbitt Portland Property LLC 22,518,470 9 0.55% 23,183,794 5 0.75% • May Department Stores Company 22,071,385 10 0.54% - - Robinson, Constance - 16,866,248 6 0.54% • Wuunar Company 117,165,590 2 3.77% • SF Oregon Company Ltd. - 67,289,495 3 2.16% • Spieker Properties - 23,354,628 4 0.75% • Real Estate Equities Joint Venture - - 13,370,038 7 0.43% • Costco/Wholesale - - 11,796,652 8 0.38% • Pacific Corporation - - 10,622,574 9 0.34% FIG Holding Company - - 10,595,353 .10 0.34% • • $ 523,662,076 13.18% $ 426,197,852 13.70% . • • • Source: Washington County Assessment & Taxation records. • • • • • • • • • • • • 111 • • • • CITY OF TIGARD, OREGON PROPERTY TAX LEVIES AND COLLECTIONS For the last ten fiscal years Percent Percent • Total Tax Delinquent Fiscal Total Percent Delinquent Total Collections Outstanding Taxes Year Ended Tax Current Tax of Levy . Tax Tax To Tax Delinquent To Tax • June 30 Levy Collections Collections Collections Collections Levy Taxes Levy 1997 $ 7,924,163 $ 7,511,237 94.79% S 167,262 S 7,678,499 96.90% S 284,176 3.59% • 1998 8,470,116 8,119,848 95.86% 135,325 8,255,173 97.46% 318,590 3.76% • 1999 8,915,821 8,400,875 94.22% 227,801 8,628,676 96.78% 418,484 4.69% • 2000 7,881,754 7,385,015 93.70% 270,169 7,655,184 97.13% 395,297 5.02% • 2001 8,479,977 8,017,056 94.54% 241,309 8,258,365 97.39% 365,837 4.31% 2002 8,984,987 8,498,029 94.58% 241,336 8,739,365 97.27% 373,584 4.16% • 2003 10,521,836 9,942,473 94.49% 252,892 10,195,365 96.90% 394,897 3.75% • 2004 10,072,155 9,519,258 94.51% 249,358 9,768,616 96.99% 388,113 3.85% 2005 10,568,724 10,032,595 94.93% 293,729 10,326,323 97.71% 330,296 3.13% • 2006 11,115,136 10,571,115 95.11% 252,844 10,823,959 97.38% 310,629 2.79% • Taxes are levied as of July 1 each year-and are payable in three installments, without interest, on November 15, February 15, and May • 15. Interest is charged at the rate of 1% per month on delinquent taxes. Tax liens are foreclosed after three year's delinquencies. • Taxpayers receive a discount of 3% for payment in full by November 15 and 2% for payment of two thirds of the total taxes due. City Property Taxes Levied $12,000,000 - - - - - • $11,000,000 - • $10,000,000 $9,000,000 - - $8,000,000 - $7,000,000 - - - • $6,000,000 - - ! $5,000,000 $4,000,000 - $3,000,000 - - - - • $2,000,000 $1,000,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 112 • 0 CITY OF TIGARD, OREGON • SPECIAL ASSESSMENT COLLECTIONS For the last ten fiscal years • • • • • Fiscal Year Current Ratio of Total Ended Assessments Assessments Collections Outstanding • June 30 Due (1) Collected (2) to Amount Due Assessments 6 1997 $ 145,000 $ 353,977 244.12%a $ 1,846,910 • 1998 275,000 173,947 63.25% 6,046,590 • • 1999 1,565,576 2,056,305 131.34% 4,613,840 • • 2000 329,174 971,414 295.11% 3,761,444 0 • 2001 234,907 290,268 123.57% 3,494,465 • 2002 240,894 343,642 142.65% 4,621,388 • • 2003 185,975 542,816 291.88% 4,150,052 • 0 2004 637,900 557,911 87.46% 3,471,643 • • 2005 598,804 373,141 62.31% 3,074,031 • 2006 821,321 1,421,765 173.11% 1,639,875 • 0 • (1) This amount is equal to the matured principal on Bancroft improvement bonds. (2) Represents collections of current assessments for payment of Bancroft improvement bonds as well • as assessment collections on projects for which such bonds have not been issued. • 0 • Source: City assessment records • • • • • • • • • 0 • • 113 • • • 0 • CITY OF TIGARD, OREGON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR LONGTERM DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES. For the last ten fiscal years • • • Total Percent of Debt Fiscal Year Total General Service to Ended Debt Governmental Total General • June 30 Principal Interest Service Expenditures Expenditures • • 1997 $ 5,755,000 $ 447,957 $ 6,202,957 $ 21,130,604 29.36% • 1998 6,390,000 406,542 6,796,542 20,215,465 33.62% • 1999 6,190,576 659,946 6,850,522 25,555,433 26.81% • 0 2000 2,487,352 211,986 2,699,338 21,950,242 12.30% • • 2001 2,408,085 207,914 2,615,999 22,638,451 11.56% 40 2002 4,195,966 325,036 4,521,002 20,095,362 22.50% • • 2003 2,351,917 254,833 2,606,750 20,455,687 12.74% • • 2004 3,358,982 929,462 4,288,444 34,524,413 12.42% • • 2005 1,285,275 748,417 2,033,692 27,714,574 7.34% • 2006 1,526,286 697,305 2,223,591 27,500,235 8.09% • • 0 0 Source: Comprehensive Annual Financial Reports of the City. • (1) Includes bond anticipation notes principal and interest. • (2) Includes bond anticipation notes interest and certificates of participation principal and interest • • 0 • • - • , • • • 0 • • • 114 • 0 • CITY OF TIGARD, OREGON • RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA For the last ten fiscal years • • • • Gross • General Ratio of • Obligation Less Debt Net Bonded • Fiscal Year Bonded Service Net Debt to Net Bonded Ended Assessed Debt Out- Monies Bonded Assessed Debt Per • June 30 Population Value Standing Available Debt Value Capita • 1997 35,925 $ 3,111,388,324 $ 5,125,000 $ 4,514,054 $ 6,407,898 0.21% $ 178.37 • • 1998 36,680 3,424,967,272 3,360,000 206,712 3,153,288 0.09% 85.97 • 1999 37,200 3,601,609,341 2,991,249 792,529 2,198,720 0.06% 59.11 • • 2000 39,672 3,033,029,082 2,442,075 1,492,889 949,186 0.03% 23.93 • 2001 42,260 4,354,132,334 1,982,168 1,609,030 373,138 0.01% 8.83 • • 2002 43,040 3,470,578,863 2,824,243 2,154,758 669,485 0.02% 15.55 • 2003 44,070 4,804,794,161 15,393,293 2,270,985 13,122,308 0.27% 297.76 • • 2004 45,130 3,754,359,399 16,239,519 1,713,313 14,526,206 0.39% 321.87 • 2005 44,650 3,908,208,975 15,164,807 1,312,547 13,852,260 035% 31024 • • 2006 46,411 4,087,904,786 11,572,205 1,849,770 9,722,435 0.24% 209.49 • • • ° Excludes bond anticipation notes payable. • Sources: City budget documents, Comprehensive Annual Financial Reports of the City and Washington County Department of • Assessment and Taxation. • • • • • • • • • • • • 115 • • • • CITY OF TIGARD, OREGON COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT • June 30, 2006 • Percent Amount Applicable Applicable • Net Debt Inside City Inside City • urisdiction Outstanding of Tigard of Tigard • Tigard/Tualatin School District # 23-J $ 57,857,240 50.8814% $ 29,438,574 • Tri-Metropolitan Transportation District 2,930,966 3.7858% 110,961 Metro 4,283,996 3.7631% 161,211 • Beaverton School District a 48 10,425,731 3.8990% 406,499 • Portland Community College 3,538,610 4.7887% 169,453 • • Washington County 5,471,943 11.2603% 616,157 • Tualatin Valley Fire &Rescue District 519,219 12.5719% 65,276 • Sub-Total of Overlapping Debt 85,027,705 30,968,131 City of Tigard 11,572,205 100.0000% 11,572,205 • Total for Overlapping Debt $ 96,599,910 $ 42,540,336 • • • Source: Oregon State Treasury Debt Management Division • • • • • • • • • • • • • 116 • CITY OF TIGARD, OREGON COMPUTATION OF LEGAL DEBT MARGIN For the last ten fiscal years 1997 1998 1999 1000 2001 2002 2003 1004 2005 2006 Debt limit $ 93,341,650 S 102,749,018 $ 108,048,280 $ 118,146,175 $ 130,623,970 $ 138,720,271 $ 144,143,825 $ 154,556,716 $ 162,072,994 $ 122,637,144 Total net debt applicable to limit 3,965,000 2,475,000 905,000 695,000 470,000 245,000 19,526,586 14,428,648 12,060,540 9,289,259 Legal debt margin $ 89,376,650 $ 100,274,018 $ 107,143,280 $ 117,451,175 $ 130,153,970 $ 138,475 271 S 124,617 239 $ 140,128,068 $ 150,012,454 S 113 347,885 Total net debt applicable to the limit as a percentage of debt limit 4.25% 2.41% 0.84% 0.59% 0.36% 0.18% 13.55% 9.34% 7.44% 7.57% y Legal Debt Margin Calculation at June 30, 2006 True cash value (2005-2006) $ 4,087,904,786 3% Debt Limt (3% of total property real market value) 122,637,144 Debt applicable to limit: Gross bonded debt S 11,572,205 Excludable debt - Bancroft improvement bonds (2,282,946) Debt subject to limitation 9,289,259 Legal debt margin - amount available for future indebtedness $ 113,347,885 Total net debt applicable to the limit as a percentage of debt limit 7.57% Note: Pursuant to Oregon Revised Statutes 287.004, outstanding general obligation debt is limited to 3 percent of real market value Source: Washington County Department of Assessment and Taxation • • CITY OF TIGARD, OREGON RATIO OF DEBT BY TYPE For the last ten fiscal years • • • • • • • • (1) • Fiscal Year General Long-Term Percentage (2) Ended Obligation Bancroft Note Payable Total of Personal Per • June 30 Population Bonded Debt Bonded Debt Debt Government Income Capita • • 1997 35,925 $ 5,125,000 $ 1,160,000 $ $ 6,285,000 0.60% $ 174.95 • 1998 36,680 3,360,000 885,000 4,245,000 0.41% 115.73 • 1999 37,200 2,991,249 2,086,249 5,077,498 0.49% 136.49 • 2000 39,672 2,442,075 1,747,075 4,189,150 0.40% 105.59 • . 2001 42,260 1,982,168 1,512,168 3,494,336 0.34% 82.69 2002 43,040 2,824,243 2,579,243 2,290,248 7,693,734 0J4% 178.76 • • 2003 44,070 15,393,293 2,393,293 2,091,727 19,878,313 1.91% 451.06 2004 45,130 16,239,519 3,703,071 1,892,200 21,834,790 2.09% 483.82 • • 2005 44,650 15,164,807 3,104,267 1,681,637 19,950,711 N/A 446.82 • 2006 46,411 11,572,205 2,282,946 1,465,007 15,320,158 N/A 330.10 • • (1) See page 00 for personal income data • (2) Per capita data is using Tigard's population • • N/A = Not available • Sources: Gry budget documents, Comprehensive Annual Financial Reports of the Gry and Washington County Department of Assessment and Taxation. • • • • • • • • • • • • • • 118 • • CITY OF TIGARD, OREGON ! DEMOGRAPHICS STATISTICS For the last ten fiscal years ! (4) Assessed Total (2) • Value Personal Unemployment • of Taxable (3) (4) Income Rate Fiscal Year (1) Property School Per Capita (thousands Portland • Ended June 30 Population Per Capita Enrollment Income of dollars) Metro Area . 1997 35,925 $ 86,608 10,829 $ 29,032 $ 1,042,966 3.90% 1998 36,680 73,928 11,071 29,592 1,085,443 4.30% • 1999 37200 74,537 11,080 28,803 1,071,473 4.50% 2000 39,672 76,453 11,145 27,974 1,109,793 4.10% 2001 42,260 77,014 11,500 27,128 1,146;445 4.50% • 2002 43,040 80,636 11,785 26,584 1,144,177 750% 2003 44,07b 82,181 11,686 26,145 1,152,206 8.80% 2004 45,130 83,190 11,831 25,734 1,161,384 6.80% 2005 44,650 87,530 11,653 N/A N/A 630% • 2006 46,411 88,081 12,134 N/A N/A 6.30% Sources of Information: (1) State of Oregon, Department of Administrative Services , (2) US. Bureau of Labor Statistics (3) Tigard/Tualatin School District fl 23-J - City student totals not available . (4) Washington State University- Northwest Income Indicators Project • * - Personal income data for Tigard was not available so data was calculated using the ratio of Tigard's population to Washington County's total population. The ratio was then applied to total personal income for Washington County ! to arrive at an estimated personal income for the City of Tigard. • Population and School Enrollment Trends 50,000 - 45,000 y 40,000 `r.: - - - • 35,000 - - 30,000 25,000 - - • 20,000 15,000 - - 10,000 5,000 - - - - 1997 1"s 1999 2000 2001 2002 2003 2004 2005 2006 • -4 -Population -0 School Enrollment • • • • • 119 • • CITY OF TIGARD, OREGON • PRINCIPAL EMPLOYERS For current year and nine years ago • • • • 2006 1997 • Percentage Percentage of total City of total City Employer Employees Rank employment Employees Rank employment • • Renaissance Credit Services 1,116 1 3.57% - - Tigard - Tualatin School District 779 2 2.49% 592 2 2.10% Meier & Frank 704 3 2.25% - - • Nordstrom 461 4 1.47% 503 3 1.78% Oregon PERS 347 5 1.11% - - . Costco/Wholesale 341 6 1.09% 251 9 0.89% Providence Health System 303 7 0.97% - - • Ikon Office Solutions 277 8 0.89% - - City of Tigard 267 9 0.85% - - FUR Systems, Inc. 250 10 0.80% - - Percision Interconnect - 683 1 2.42% • US West Direct - - 340 4 1.20% • Farmers Insurance - - 325 5 1.15% • Coming Clinical - - 318 6 1.13% . JC Penny Company - - 300 7 1.06% Fred Meyer 260 8 0.92% • Coe Manufacturing - 236 10 0.84% 4,845 15.50% 3,808 13.49% • • • • Source: City of Tigard • • • • • • • • • • • 120 • • • CITY OF TIGARD, OREGON • PROPERTY VALUE AND CONSTRUCTION For the last ten fiscal years • • • • Commercial Residential Fiscal Year Construction (1) Construction (1) Ended Number of Number of June 30 Permits Value Permits Value • 1997 22 $ 44,227,644 355 $ 59,581,425 • 1998 28 45,381,833 147 30,720,243 • 1999 18 26,772,534 229 37,876,657 • 2000 22 55,244,410 198 (2) 37,202,497 • 2001 23 47,262,611 576 (2) 114,188,480 2002 12 21,583,399 387 (2) 96,339,584 • 2003 10 22,289,054 375 (2) 104,951,598 • 2004 17 59,523,557 375 (2) 99,056,117 • 2005 it 49,645,891 325 (2) 96,002,190 2006 8 50,744,300 299 (2) 100,965,847 • • (1) From City of Tigard Building Department. Multi-family permits are included in the number of permits issued for residential construction. • (2) Residential totals for permits and value include amounts from Urban/ Washington County as well as City of Tigard • • • • • • • • • • • • • 121 • • • • CITY OF TIGARD, OREGON FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION • For the last ten fiscal years • Full-time Equivalent Employees as of June 30 • 1997 1998 1999 2000 2001 2001 2003 2004 2005 2006 Function / Program • Community services Police 63.50 69.00 69.00 72.00 76.33 75.50 75.00 76.00 77.00 78.00 • Library 24.11 25.16 27.52 29.70 31.00 30.70 30.65 28.90 33.20 33.20 Parks maintenance (a) 6.00 6.50 8.50 - - - - • • Public works Administration 3.25 3.00 4.00 6-00 6.00 6.50 7.00 7.00 7.85 7.60 • Parks maintenance (a) - - - 9.50 9.50 9.75 10.25 11.00 10.75 10.75 • Street maintenance 7.00 10.00 10.50 11.50 11.50 9.35 9.20 8.50 8.00 7.00 Fleet maintenance 2.00 2.00 2.50 3.00 3.00 3.22 3.10 3.25 3.00 2.50 ' Property management 1.00 1.00 2.50 3.00 3.00 3.38 3.25 3.25 3.25 3.25 Development services • Administration 8.00 9.00 9.00 9.00 3.00 3.00 3.00 3.00 3.00 3.00 • Budding inspection 11.00 18.50 19.00 15.00 12.50 13.50 13.50 16.30 18.30 18.80 Current planning 4.00 6.50 6.50 6.50 9.00 9.00 9.00 810 8.20 8.20 • Long range planning 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00 7.00 . Engineering 14.00 14.00 14.50 15.50 15.50 16.00 16.00 15.50 15.50 15.50 • Policy and Administration City management 4.50 4.50 4.50 5.50 5.80 5.80 5.80 4.00 3.80 3.80 • Human resources 3.50 3.50 3.50 3.50 3.50 4.00 4.00 4.00 4.00 4.00 • Information technology 2.50 3.50 4.50 4.50 4.50 8.00 8.00 6.00 6.00 7.00 Risk management 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 • Finance admnistration 1.00 1.00 1.00 1.00 2.00 3.00 3.00 3.00 3600 3600 • Financial operations 8.00 8.00 9.00 10.00 10.75 10.80 10.80 10.80 10.80 10.80 • Office services 6.50 6.50 6.50 7.00 7.00 7.00 7.00 7.30 7.30 7.30 Municipal court 3.00 3.00 3.00 3.00 4.00 4.00 3.00 3.00 3.00 3600 • SanitarySewer 6.58 6.75 7600 7.00 7.00 6.93 6.95 715 7.75 7.25 • Storm Sewer 5.58 4.75 7.00 7.00 7.00 6.92 6.95 7.75 8.25 7.25 • Water 14.59 15.50 16.00 17.00 17.00 17.95 18.00 17.00 16.25 16.50 • Total 205661 227.66 241.52 252.20 254.88 261.30 260.45 258600 265.20 266.70 Source: City of Tigard Finance Department • • (a) Parks maintenance was budgeted in Community Services until FY 2001-02 at which time it was moved to the Public Works division. • • • • • • • 122 • • CITY OF TIGARD, OREGON OPERATING INDICATORS BY FUNCTION/PROGRAM For the last four fiscal years • Fiscal Year Functions/ Programs 2003 2004 2005 2006 • Governmental activities: Community services Police-number of traffic citations issued 6,993 6,815 6,006 6,800 Police-number of calls for service 50,403 49,333 53,754 51,062 Library number of items in collection 114,094 115,618 125,570 143,500 Librarymaterials checked out each year 684,475 685,000 728,250 850,000 • Public works Acres of park land maintained 165 170 170 170 • Crack sealing completed annually (linear feet) 150,000 98,000 150,000 151,000 Vehicles maintained to industry standard 140 140 144 144 Development services • Number of inspections (Tigard) 13,000 14,200 21,000 19,550 • Number of permits (all types) in Tigard 2,760 3,300 3,600 31351 • Number of development applications 330 400 430 374 • • Policy and administration Number of job applications 1,000 1,800 1,900 2,000 Laptops and computers to maintain 275 325 445 500 Insured value of City's real property (in millions) $ 25.2 $ 27.9 $ 38.8 $ 40.8 Number of utility bills sent 104,014 106,055 109,854 112,775 Average fine amount collected $ 53 $ 68 $ 78 $ 75 Business-type activities: Sewer • Miles of sewer lines cleaned (annual goal) 47.3 53.2 48.5 50.8 Miles of sewer lines video inspected (annual goal) 20.3 20.7 26.1 21.8 Storm Water • Miles of storm sewer lines cleaned 27.8 30.2 13.7 28.5 • Number of Water Quality facilities 45 60 62 65 • Total number of catch basins cleaned 3,760 3,867 3,915 4,100 • Water Number of accounts 16,364 16,712 17,022 17,300 • Number of main breaks repaired 12 15 10 10 • • Source: City of Tigard Finance Department • • 123 • • • CITY OF TIGARD, OREGON CAPITAL. ASSETS STATISTICS BY FUNCTION • For the last four fiscal years • • • Fiscal Year Functions /Programs 2003 2004 2005 2006 • • Governmental activities: ` Community services Police stations 1 1 1 1 Library buildings 1 1 1 1 Public works Number of parks 11 13 13 13 • Acres of park and greenspaces 293.5 347.0 347.0 348.0 Miles of streets 142.5 150.0 150.0 150.0 • Development services • See Note • Policy and administration • Cityowned building facilities 4 5 5 5 • • Business-type activities: Sewer . Total miles of sanitary sewer lines .142.0 146.6 148.0 152.8 • Storm Water Total miles of storm sewer lines 111.0 110.6 113.0 116.6 • Number of Water Quality facilities 45 60 62 62 • Water Water mains in miles 210 210 220 223.7 Number of reservoirs 13 13 13 13 • • • • Source: City of Tigard Finance Department • Note: No capital assets indicators are available for development services functions. • t • • • • • • • 124 • • • CITY OF TIGARD, OREGON MISCELLANEOUS STATISTICAL DATA June 30, 2006 • • • • Date of Incorporation 1961 • Form of government Mayor / Council with a City Manager as the administrative head of the government of the City Area (Square Miles - incorporated area) 11.7 • Miles of streets 150.00 • Population 46,411 • • Drinking Water. • Water mains 223.7 miles • Reservoirs 13 • • • Police protection: • Number of stations 1 • Number of sworn police officers 60 • • Education: Attendance centers 15 • Number of teachers 621 • Number of students 12,134 • Sanitary sewers 152.8 miles • • Storm sewer lines 116.6 miles • • Building Permits issued (2004-2005) 353 • Recreation and culture: • Number of parks 13, totaling 176 acres Greenways 172 acres Number of libraries 1 • Number of volumes (estimated) 143,500 • Employees: Classified service (union) 178 • Unclassified (non-union) 96 • Information obtained from the various departments of the City of Tigard, Oregon and Tigard/Tualatin School District # 23-J - City student totals not available • • 125 • • oMMENTS AND AUDIT C D BY DISCLOSURE REQUIRE STATE REGULATIONS : • • • • CITY OF TIGARD, OREGON • A UDITOR 'S COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS • YEAR ENDED JUNE 30, 2006 • STATE OF OREGON COMPLIANCE SECTION • • Oregon Administrative Rules 162-10-000 through 162-16-000 of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in annual financial reports. Required comments and disclosures related to our audit of such financial statements and • schedules are set forth on the following pages. • Significant Accounting Policies • The significant accounting policies followed in preparing the City's financial statements are summarized in the • notes to the financial statements. • Organization and Fund Structure • • The organization and fund structure of the City is documented in the notes to the financial statements. • Internal Accounting Control • We have audited the basic financial statements of the City of Tigard as of and for the year ended June 30, 2006, • and have issued our report thereon dated October 25, 2006. As part of our audit, we made a study and evaluation • of accounting systems and controls as required by auditing standards generally accepted in the United States of America. The purpose of our study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the City's financial statements. Our study and evaluation was • more limited than would be necessary to express an opinion on the system of internal accounting control of the • City taken as a whole. Our study and evaluation disclosed no condition that we believe to be a material weakness. However, we noted certain matters that we have reported to management of the City of Tigard in • our letter dated October 25, 2006. • • Adequacy of Collateral Securing Depository Balances • ORS 295 provides that each depository, throughout the period of its possession of public fund deposits, shall, r maintain on deposit with its custodians, at its own expense, securities having a value not less than 25% of the • certificates of participation issued by the pool manager for funds in excess of those insured by the Federal Deposit Insurance Corporation. Our review of the adequacy of collateral securing depository balances indicated • the collateral was sufficient during the year ended June 30, 2006. • Indebtedness • • The general obligation bonded debt of the City is in compliance with the limitation imposed by law. We noted no • defaults in principal, interest, sinking fund, or redemption provisions with respect to any of the City's liabilities, • and no breach of the bond agreements, at June 30, 2006. • Budget Compliance • The City has complied with Local Budget Law (ORS 294) in the preparation and adoption of its budget and tax • levy for fiscal years ending June 30, 2006 and 2007. • • Insurance and Fidelity Bonds • • We have reviewed the City's insurance and fidelity bond coverage at June 30, 2006. We ascertained that such • policies appeared to be in force and in compliance with legal requirements relating to insurance and fidelity bond • coverage. We are not competent by training to comment on the adequacy of the insurance policies. • 126 • 0 • • CITY OF TIGARD, OREGON AUDITOR 'S COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS (Continued) • YEAR ENDED JUNE 30, 2006 • STATE OF OREGON COMPLIANCE SECTION (Continued) • Highway Funds The City complied with the legal requirements, Article IX, Section 3a of the Oregon Constitution pertaining to the use of revenue from taxes on motor vehicle fuel, and the statutory requirements of ORS 294, 368 and 373 as they pertain to the use of road funds. Programs Funded from Outside Sources • • We have reviewed the City's compliance with appropriate laws, rules, and regulations pertaining to programs • funded wholly or partially by other governmental agencies. The City is in compliance with the guidelines in all • material respects. • Investments • • Our review of deposit and investment balances indicated that the City was in compliance with ORS 294, as it pertains to investment of public funds, during the year ended June 30, 2006. • • Public Contracting and Purchasing • Our review of the. City's public contracting, purchasing procedures and construction of public improvement • requirements (ORS 279) indicated that the City was in compliance. • • Financial Reporting Requirements • We have reviewed financial reports and other data relating to programs funded wholly or partially by other . • governmental agencies. This data, filed with other governmental agencies, is in agreement with and supported by • the accounting records. Schedule of Accountability of Independently Elected Officials • • There are no elected City officials who collect or receive funds on behalf of the City. This report is intended for the information of the City Council and management of the City of Tigard, and the State of Oregon, Division of Audits. GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS • • • By' • Charles A. Swank, A Shareholder • October 25, 2006 • • • • • • • 127 • • • • • TIGARD CITY OF TIGARD i SETTING THE -STANDARD FOR SERVICE. EXCELLENCE, • • We are committed to: " • PARTICIPATION ! Citizens and 'employees working "together • INNOVATION Consider and respect ideas • RESPONSIVENESS' • Accurate and: timely • COMMUNICATION ! C►pen and,clear 0 COURTESY . To all • 0 Agenda Item # Meeting Date Febivary 27, 2007 COUNC[. AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Consider Naming the Tualatin River Bicycle and Pedestrian Bridge as the "Ki-a-kuts Bridge" in honor of the Tualatin Native American Headman, Ki-a-kuts Prepared By: Dennis Koellermeier Dept Head Okay City Mgr Okay IssuE BEFORE TIE COUNCIL AND KEY FACIs Shall City Council approve a resolution naming the Tualatin River Bicycle and Pedestrian Bridge as the "Ki-a-kuts Bridge" in honor of Tualatin Native American Headman, K--a cuts? STAFF RMOMMENDATION Approve the resolution naming the Tualatin River Bicycle and Pedestrian Bridge as the "Ki-a-kuts Bridge." KEY FACTS AND INFORMATION SUMMARY ■ The Tigard and Tualatin historical societies are urging the elected officials of Tualatin, Tigard, Durham, and Clean Water Services to name the bridge "Ki-a-kuts Bridge." Ki-a-kuts: - Was the last headman for the Tualatin (Atfalatii) Native Americans. - Signed treaties, at Champoeg and Dayton, which turned over the Atfalati's land to the American government. - Accepted the government's decree to move to the Grand Ronde Reserve in January of 1855. ■ Tigard's partners on the bridge project, namely the Cities of Durham and Tualatin as well as Clean Water Services, are considering similar resolutions and staff expects they will support the Ki-a-kuts Bridge designation. ■ If the name is approved by the partners, a plaque detailing the origin of the bridge's name will be installed near the structure. ■ A grand opening and dedication ceremony will be held from 11 am. to noon on Saturday, April 28. ■ In accordance with Resolution No. 99-37, the Council has the authority to name City facilities. CqH M ALTERNATIVES CONSIDERED The Council could choose not to name the Tualatin River Bicycle and Pedestrian Bridge as the "Ki-a-kuts Bridge." COUNCIL GOALS AND TYGARD BEYOND TOMORROW VISION STATEMENT Not Applicable. ATrACnvrn T LIST 1. Resolution 2. Resolution No. 99-37 with Exhibit A 3. October 23, 2006 Letter from Tigard Area Historical & Preservation Association HSCAL NOTES If the Ki-a-kuts Bridge designation is approved, the four project partners would share in the cost of the plaque which is estimated to be $1,500. Attachment 2 CITY OF TIGARD, OREGON _ RESOLUTION NO. 99-b7 A RESOLUTION ESTABLISHING A POLICY OF THE CITY COUNCIL ON PLACING MEMORIALS IN CITY PARKS. WHEREAS, the Tigard City Council desires to have a policy for designating memorials within City park facilities, City-owned properties and with the naming of building and park properties; and WHEREAS, the City Council -recognizes that over the past several years, various park lands have been acquired by the City of Tigard and various facilities have been built at City parks and properties which could appropriately be named in memory of individuals who have provided service to the community; and WHEREAS, in the past the City has named properties or facilities in memory of individuals without the benefit of an established. City policy; and WHBRBAS, the Council wishes to have a formal policy to apply for official naming of City parks, facilities and features within parks. NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: SECTION 1: Time City Council hereby adopts the Memorial Policy described in Exhibit "A!, attached hereto. PASSED: This day of 1999. o r - City of Tigard M ATTEST: City Recorder - City of Tigard i_tadm~mdi tcouna'litsolution memorial policy.dot RESOLUTION NO.99-,3 ? Page 1 EXHIBIT "A" TIGARD MEMORIAL POLICY FOR NAMING CITY PARK FACILITIES, DISTINCT ELEMENTS WITHIN CITY-OWNED. PROPERTIES, AND CITY BUILDINGS PURPOSE: To outline the policy, criteria and process for designating memorials within City park facilities, distinct elements within City-owned properties and naming of buildings and park properties. BACKGROUND: As the City adds parks, open spaces and public facilities by acquisition and donation, the City has found that there is a need for a process to honor individuals or groups by naming City parks, distinct elements within City-owned properties or City buildings and to place memorials to advise the public of the recognition. In addition, the City has been the recipient of bequests which have required that the City recognize the financial contributions by memorializing the gift in some way. Finally, in the past, the City has accepted as a term of purchase of park land a requirement that' the City acquired property be developed into a park with a specified park name. In order that the City Council and staff have guidelines to. follow when considering requests that memorials be placed within City park facilities or that City parks or buildings be named after individuals, a policy should be in place. POLICY: r Land, facilities and features within property owned by the City of Tigard will be named through an administrative process in accordance with established criteria that emphasize community identity and service to the community. Criteria for naming City park facilities, distinct elements within City-owned properties, and City buildings: 9. Memorials within City park facilities - Memorials included within this category are memorials which would be placed on or near basic park amenities, such as benches, picnic tables, trees, shrubs and plaques. If the memorial meets park standards for construction and materials, the Parks Division will. assume maintenance responsibility for the useful life of the memorial. Replacement.of the memorial shall be at the discretion of the Parks Division staff Interested parties must submit a written request to the Parks Division regarding the type of memorial, proposal occasion and significance of the memorial. Parties interested in placing memorials shall be financially responsible for the purchase of the memorial. An extensive review -process is not necessary for . these types of memorials. These requests shall be.handled administratively by the Parks Division to ensure that City standards are met. The Parks Division has the right to adjust the location of the proposed memorial. The Parks Division shall notify the City Council of any actions taken to accept and place new memorials within City parks. The standards that the Parks Division will follow in regard to park*memorials are: a) Benches - benches must be made of wood, contoured or flat-styled pedestal, outdoor benches unless an alternative material is approved by the Parks Division upon a finding that there are circumstances that exist that make it appropriate to use the alternative material. Any bench to be contributed as a memorial and to be placed within City park facilities shall be purchased through a Parks Division approved manufacturer. A brass plaque may be attached to the bench but shall be no larger than 2 Y2 x 6 inches in size. Prior to purchasing any . bench for display in City parks, an interested party must contact City staff and review the example of approved benches maintained.by the City staff. b). Trees - trees planted at City facilities as memorials must be at least 2 inches caliper, native to the area and fit into the existing landscape scheme of the park area or fit into the adopted plan for tree planting in that area. c) Plaques -~plaques may be placed. in conjunction with a sfirub or tree which are donated to the City as a memorial. Plaques shall not be' placed as stand alone features. Plaques must be made of bronze and be no larger than 8 Yx 11 inches in size. Plaques must be set.in concrete, aggregate rock, or a boulder. City staff shall review the design of plaque and setting: Examples of the type 'of plaques approved by the City shall be made available -by Parks staff. 2. Distinct elements within City-owned parks - Memorials can be placed at distinct elements. of City-owned properties, such as shelters, sports fields, gardens, wetlands, tennis courts, rooms, fountains, ponds, paths, art, etc. Individuals interested in having a distinct element named in honor of an individual are required to submit a written request to the Tigard City Council regarding the particular type of amenity in which they are interested in sponsoring. Applications shall be made through the Parks Division. Requests for such amenities may be made to honor an individual who has passed away or as an honorarium for someone who is living and has made a contribution to the City, either financially or through civic duty. Review of such requests shall be made by the City Council. Council approval is needed. Guidelines regarding signage shall be adopted by Council based on recommendations made by the Parks Division. The standards that the Parks Division will follow in regard to signage wip.be kept on record at the Public Works office. Examples of suitable signage will be available for public viewing. 3. Naming of buildings and park properties - City buildings and park properties may be named to honor individuals or groups. Interested parties shall submit a written request to the Tigard City Council regarding the property or building which they are interested in having Council name in honor of an individual or group. In addition, the City Council on its own motion, may consider naming a building or park. This type of memorial requires extensive review and Council approval in the form of a resolution. City staff will deal with guidelines for Council consideration. The standards that the Parks Division will follow in regard to signage will be kept on record at the Public Works 'office. Examples of suitable signage will be available for public viewing. ]Aadmlmemorial policy.doc Attachment 3 Tigard ar ea 5CutoricaC & Preservation Association (T'.~CP-A) 77 PO Box 23.0402 ♦ Ttgar4 Oregon -97281-0402 ♦ 503-63-9-2857 CM I&SO ~ 1COC October 23, 2006 oC~ Tigard City Council Pd~ 13125 SW Hall Blvd. Tigard, Oregon 97223 Re: Naming the pedestrian bridge For centuries. the Tualatin (Atfalati) native people traveled up and down the 'Tualatin River and throughout the Tualatin valley in search of sustenance. There has been much evidence of their summer camps found in Tualatin, Durham and Tigard. As the new pedestrian bridge across the Tualatin River nears completion, we are requesting that you consider naming the bridge `Ki-a-kuts'. Ki-a-kuts was the last headman and spokesman of the Tualatin (Atfalati) Indians and it was he who signed the treaties, both at Champoeg and again in Dayton, ceding the Atfalati's land to the American government. Ki-a-kuts was an honest good man, who did not want to give up his people's way of life, and pled that the Atfalati be allowed to stay near Wapato Lake, where camas and wapato, the mainstay of their diet, grew abundantly. Finally, in January of 1855, he accepted the government's decree that the band remove to the Grand Ronde Reserve, where he died. The board of the Tigard Historical Association join the Tualatin Historical Society in urging you to consider naming the bridge for Ki-a-kuts, the great Atfalati headman. Sincerely, 1i Dian Ross, President I CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO.07- A RESOLUTION NAMING THE TUALATIN RIVER BICYCLE AND PEDESTRIAN BRIDGE AS THE "KI-A-KUTS BRIDGE" IN HONOR OF THE TUALATIN NATIVE AMERICAN HEADMAN, KI-A-KUTS WHEREAS, the actions of Ki-a-kuts, headman of the Tualatin (Atfalati) Native Americans, were of great historical importance to the region: and WHEREAS, Ki-a-kuts signed treaties, at Champoeg and Dayton, which turned over the Atfalati's land to the American government; and WHEREAS, Ki-a-kuts accepted the government's decree to move to the Grand Ronde Reserve in January of 1855; and WHEREAS, the Tigard and Tualatin historical societies are urging the elected officials of Tualatin, Tigard, Durham, and Clean Water Services to name the bridge "Ki-a-kuts Bridge" in honor of Ki-a- kuts; and WHEREAS, in accordance with Resolution No. 99-37, the Council has the authority to name City facilities. NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: SECTION 1: The Tualatin River Bicycle and Pedestrian Bridge will be named the "Ki-a-kuts Bridge" in honor of the Tualatin Native American headman, Ki-a-kuts. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2007. or City of Tigard Ntq ATTEST. Gail ~ City Recorder - City of Ti d RESOLUTION NO. 07 I Page 1 1~ Agenda Item # Meeting Date February 27, 2007 COUNCIL AGENDA ITEM SUMMARY City Of Tigard, Oregon Issue/Agenda Title Review City Encroachment Permit Policy Prepared By: Nancy Werner Dept Head Approval: City Mgr Approval: ISSUE BEFORE THE COUNCIL Review City policy for permitting encroachments into the rights-of-way, easements and public property. STAFF RECOMMENDATION Provide direction on a policy regarding structures that encroach into the rights-of-way, utility easements or other public property. KEY FACTS AND INFORMATION SUMMARY Chapter 15.16 of the Tigard Municipal Code prohibits, with some exceptions, the placement of any structures or vegetation in unimproved right-of-way, easements or other public property without a revocable pernzit from the City. Staff occasionally finds fences, retaining walls or other encroachments that have been built without the proper permit. Staff is requesting direction on a policy for implementing or, if necessary, amending Chapter 15.16 to ensure consistent treatment of both requests for new encroachments as well as enforcement of the Code when existing encroachments are reported. The attached memorandum describes the encroachment regulations in Chapter 15.16, the City's current enforcement practices as well as that of other cities, and the potential issues with encroachments. OTHER ALTERNATIVES CONSIDERED N/A. COUNCIL GOALS AND TIGARD BEYOND TOMORROW VISION STATEMENT The encroachment permit policy would contribute to the Tigard Beyond Tomorrow goals of "Communication" and "Improve Traffic Safety." Implementation of an encroachment policy may provide the City the opportunity to inform citizens of the location of the right-of-way and utility easements, and of a Code requirement that is not widely known, and may prevent or remove encroachments that create a traffic hazard. ATTACHMENT LIST • Memorandum to Council regarding Encroachment Permit Policy FISCAL NOTES I` None at this time. Enforcement of the existing Code regulation on encroachments would require some additional staff time, but staff does not expect a substantial increase in workload. Other Code requirements, such as sending notice of an encroachment application to adjacent homeowners and recording revocable permits, will result in additional costs for postage, the filing fee ($22 for the first page; $5 for each additional page) and other incidental administrative costs. iladmtcathyVonnst200MwunciI agenda item summary sheet 06 - june revisiun.doc Y w MEMORANDUM AI TO: Mayor Dirksen and City Council FROM: Nancy Werner, Right-of-Way Administrat "tom k/ RE: Encroachment Permit Policy DATE: February 13, 2007 Staff is requesting direction on a policy for implementing or, if necessary, amending Chapter 15.16 of the Tigard Municipal Code, which regulates encroachments in the City's unimproved rights-of-way, utility easements and other public property. Staff would like to ensure a consistent response to requests for encroachments and consistent enforcement of existing encroachments built without permits. 1. MUNICIPAL CODE REQUIREMENTS Chapter 15.16 of the Tigard Municipal Code prohibits, with limited exceptions, the placement of any structures or vegetation in unimproved rights-of-way, easements or other public property without a revocable permit from the City. The unimproved right-of-way refers to the portion of the right-of-way other than streets and sidewalks. The unimproved right-of-way often extends several feet behind the sidewalk into the area many homeowners mistakenly assume is part of their lot. In addition, most developments include utility easements that allow public and private utilities to place facilities outside the right-of-way. Utility easements generally are located at the edge of the property line (where the right-of-way ends), and also may be located along the side or rear lot lines. Thus, in many cases, the right-of-way and easements extend well into the grass or landscaped area in front and of homes. Chapter 15.16 prohibits any encroachment into the unimproved right-of-way,1 easements or other public property (such as parks) unless the homeowner receives a permit or is exempt from the permit requirement. An encroachment is exempt from the permit requirement if it does not create a line of sight hazard and the encroachment: • Would have a minor impact on the present or planned use of the public right-of-way, easement or public property; • Is expressly permitted by the Code; or t Encroachments into the improved right-of-way (i.e., streets and sidewalks), such as abandoned vehicles or property blocking the sidewalk, are regulated in other Chapters of the Code. • Is listed as exempt in section 15.16.020 of the Code (which includes mailboxes, temporary signs permitted under the sign code, guard/handrails, lawns, plants, and approved street trees). The Code sets forth a detailed procedure for applying for and receiving a permit. The applicant must provide a description and scale drawing of the proposed encroachment, a survey (if required by the City), a petition indicating support for the encroachment by owners or occupants within 200 feet in each direction of the boundary of the encroachment, and a fee set by Council resolution. The City may approve, deny or modify the application, and may place conditions on the approval to ensure compliance with the Code and to protect the public interest.z The application may be approved if the following standards can be met (or are clearly not applicable): • The appropriate clearances are met: o 3 feet on all sides of a fire hydrant; o 1 foot behind and 2 feet from the sides of water meter boxes (unless the applicant pays for relocation); o 7 feet from manholes or underground pipelines such as City sewer lines, water lines and storm drain lines; o Any clearance required by underground utilities such as power, telephone, and cable TV that are affected by the encroachment; • The encroachment does not prevent access to, cover or block the flow of water to or into catch basins, ditches or swales, or otherwise alter the natural drainage patterns in a manner that adversely affects other property; • The adjacent right-of-way has been fully improved to its planned dimensions with associated curbs, sidewalks, utilities and street trees, provided there is at least one foot clearance between the encroachment and the back edge of the sidewalk; • There is sufficient room for off-street parking or pedestrian travel, and the encroachment does not result in a loss of area needed for parking, vehicular maneuvering, or pedestrian travel; and • It is determined that the requested encroachment is consistent with the current use of the public right-of-way or easement. The City must send notice of the decision on the application to the owners or occupants within 200 feet of the proposed encroachment. The applicant and any of the owners/occupants within 200 feet may appeal the decision to the City Council. If the City approves the application, the revocable permit must be recorded against the title of the benefiting property. 2 Conditions include requiring an insurance policy if the encroachment may subject the City to liability; limits on the time the encroachment may remain; appropriate maintenance; and a fee for use of public property. Chapter 15.16 declares that the installation or maintenance of an encroachment in violation of the Chapter, or failure to comply with the permit terms, is a civil infraction subject to enforcement and a public nuisance subject to abatement. II. CURRENT COMPLIANCE/ENFORCEMENT A. City of Tigard The City currently has no encroachment permit application and Council has not set the fee referenced in the Code. It does not appear that the City has been advising people that inquire about building a fence or wall of the potential need for an encroachment permit until very recently. With respect to existing encroachments; the City does not appear • to have enforced Chapter 15.16 except in a few cases in which the encroachment was blocking access to utilities or obstructing traffic signs. In a few instances, staff has required removal of encroachments such as storage sheds in order to access and repair City facilities. The City also has occasionally paid the costs to remove or reinstall encroachments after working in the easement. These generally have not been handled as code violations (e.g., citations, potential fines, etc.), but as informal, case-by-case discussions to obtain access to an easement. B. Other Jurisdictions Most area cities have a code provision similar to Chapter 15.16 prohibiting or restricting encroachments in the right-of-way without a permit or other permission from the city. Several cities do not have an encroachment permit, but do occasionally enter into agreements with homeowners to allow encroachments, provided the homeowner agrees to remove the encroachment if requested by the city. The cities generally indicated that enforcement of existing encroachments is generated by complaint only (staff does not go looking for violations) and is handled on a case-by-case basis. Staff will inspect the encroachment and consider various factors, including safety concerns, access to utilities, likelihood of need to use additional right-of-way, and other existing encroachments in the neighborhood, before determining how to handle a specific encroachment. Most cities indicated that if an encroachment is blocking access to utility facilities or is a safety issue, the code enforcement officer will require the homeowner to remove it at the homeowners' expense. Several cities indicated that they have not required removal or taken further action on encroachments that do not appear to create an access or safety issue. Other cities inform the homeowner of the code violation and explain that the encroachment must be removed if necessary, but may not pursue any enforcement action. In some cases, cities have required the homeowner to get a permit, but not remove the encroachment if there is no access or safety issue. III. POTENTIAL IMPACTS OF ENCROACHMENTS Many encroachments may exist in the right-of-way, easements or public property without impact to the City or public safety. However, staff have recognized several concerns with encroachments that are erected without notice or permission to the City, including: • Liability to the City for an encroachment that causes injury; • Increased costs in improving rights-of-way due to demands that the City pay to remove or relocate the encroachment; • Claims by homeowners that they have the legal right to the public property on which the encroachment was built; • Interference with emergency responders by. blocking or obscuring the address on, the building or inhibiting access to the building; • Vision clearance issues for vehicles, pedestrian, bicyclists, etc. • Blocking or obscuring the view of speed limit signs, stop signs, etc. • Blocking or hindering access to hydrants, water meters, manholes and other facility access points; • Increased costs for repairs to and maintenance of City facilities due to moving or avoiding encroachment or to repair a damaged encroachment; • Damage to sidewalks and streets for installation of new private utilities (phone, cable, etc.) that could have gone in an easement but for the encroachment preventing or limiting access. N.L.W.