City Mgr's Newsletter

CITY MANAGER'S NEWSLETTER

June 11, 2010

This newsletter is an informal report by City Manager Matt Winkel on the news, issues, and other items of interest from the City of Bandon. It will normally be posted once each month (on the Friday following the City Council meeting) on the City's WEB Page at www.ci.bandon.or.us, and will be e-mailed directly to all subscribers. Subscribers will also receive copies of City Council, Planning Commission, Parks & Recreation Commission, Committee for Citizen Involvement, and Water Resource Committee agendas via e-mail in advance of each meeting.

To subscribe or un-subscribe, or if you have any questions, comments, or suggestions, please e-mail to citymanager(at)ci.bandon.or.us. Your e-mail addresses will be kept confidential and not distributed or used for any purposes other than e-mail communications with the City of Bandon.

FEATURED IN THIS ISSUE:

City Council Addresses Police Department Funding Issues
All Bandon Electric Customers To Receive A Sample Supply Of Energy Saving Light Bulbs
System Development Charge (SDC) Interest Rate Reduced
Work On The Wastewater Plant "Bringing Jack Back" Mural Restoration Project To Begin Soon
Annual Agreement With PEG Broadcast Services, Inc. For City Council Meeting Videotaping Extended
Annual Agreement With Coos County Sheriff For 9-1-1, Police, And Utility Emergency Dispatch Service Extended
Annual Agreement With Coos County Library Service District Extended
Fill Regulations In The Shoreland Overlay And CD-2 Zones Amended Public Hearing Scheduled On The Bandon Transportation Refinement Plan
Linda's Church Joke

CITY COUNCIL ADDRESSES POLICE DEPARTMENT FUNDING ISSUES

At their June 6th meeting, the City Council made several adjustments to the fiscal year 2010-2011 budget to provide interim funding for the Police Department following defeat of the proposed Local Option Police Levy (Ballot Measure 6-130) at the May 18, 2010 election by a vote of 605 (55.91%) NO to 477 (44.09%) YES.

The two main goals the proposed levy were: 1) To provide a source of revenue to fund two police officers to ensure a force of six officers for the upcoming fiscal year 2010-2011; and 2) To provide a dependable revenue source which would allow the City Council to commit to no further cuts in the Police Department to guarantee adequate 24-hour police protection by six officers for a period of five years. Since the proposed fiscal year 2010-2011 General Fund budget included $200,000 in revenues from the police levy, its failure resulted in a $200,000 shortfall in the General Fund.

Until FY 2006-2007 the City allocated 70% of the annual utility tax receipts to the General Fund, with the remaining 30% distributed to the Capital Improvement Fund and Equipment Reserve Fund for undertaking various capital improvement projects and equipment purchases. For the last four years, however, the City has not been depositing any of that money into the capital funds, but has instead been putting it into the General Fund to subsidize the Police Department. The proposed budget anticipated passage of the Police Levy, which would have ended the subsidies and allowed the City to undertake some critical infrastructure improvement projects and begin rebuilding reserves for future capital improvement projects. In addition to the Police Department subsidy from the capital funds, the City was able to balance last fiscal year's 2009-2010 budget through a voluntary one-year wage freeze and reduction in the number of employees, eliminating a police vehicle purchase, and subsidizing the General Fund with a transfer from the State Revenue Sharing Fund.

To make up the $200,000 shortfall and maintain a police force of six officers for one more year, the City Council decided to utilize a similar approach again this year, to include a Police Department subsidy from the capital funds, eliminating a police vehicle purchase, eliminating an employee position and combining some job responsibilities, reducing contributions to outside organizations to allow a transfer from the State Revenue Sharing Fund, and eliminating the 4th of July fireworks in 2011. (The upcoming 2010 4th of July fireworks will proceed as scheduled, since they were left over from the 2009 show which was cancelled due to fog.) Re-instituting the subsidies and other measures will keep the Police Department whole for the upcoming fiscal year, and will allow time to determine whether a long term solution, such as the operating levy proposed below, can be implemented to provide a dependable multiple-year revenue source for police protection.

The City had originally anticipated bringing back before the voters at the November 2010 election a measure extending the existing $.845 per $1,000 assessed valuation local option street levy, which expires after this year. The street levy was originally approved by the voters as a replacement for the Urban Renewal Special Levy, and was used to fund the 2001 City-wide street paving project and various street repairs. At the same time, the Urban Renewal Plan was amended to preclude the Urban Renewal Agency from collecting that levy in any year during which the street levy was in effect. So, if a subsequent local option levy is not approved in November 2010, the Urban Renewal Agency would be authorized to impose the Urban Renewal Special Levy. Due to increased assessed valuation within the Urban Renewal areas, the levy authority has now been increased to $.99 per $1,000 assessed valuation.

Considering the $200,000 General Fund shortfall resulting from the failure of the police levy, however, the City Council decided to replace the proposed November 2010 street tax ballot measure with an equivalent General Fund operating levy, and amend the Urban Renewal Plan to preclude the Urban Renewal Agency from collecting the special levy in any year during which the General Fund levy is in effect. By voting YES on such a measure, the voters would continue the existing $.845 per $1,000 assessed valuation levy and allow it to be used for police protection, street maintenance, and/or parks. At the same time, they would be prohibiting the Urban Renewal Agency from imposing a higher tax of up to $.99 per $1,000 assessed valuation. A NO vote would eliminate the $.845 per $1,000 tax, but would allow the Urban Renewal agency to impose a higher tax up to $.99 which could only be used for selected projects within the Urban Renewal district. Although the proposed five-year $.845 operating levy would not provide the fiscal stability of a ten-year capital streets levy combined with the previously proposed $.56 police levy, it would generate approximately $335,000 per year for five years. This would allow the needed $200,000 to be allocated to police, with $135,000 available for streets maintenance, parks maintenance, etc., without any increase in property taxes. Not only would a YES vote guarantee a lower property tax rate and provide funds for police, streets, and parks, it would also enable the City to end the capital funds subsidy of police operations and again begin allocating that money to capital reserves to undertake needed infrastructure projects such as watershed land purchase, repairing the Ohio Avenue slide damage, and constructing additional sidewalks.

ALL BANDON RESIDENTIAL ELECTRIC CUSTOMERS TO RECEIVE A SAMPLE SUPPLY OF ENERGY SAVING LIGHT BULBS

In late July or early August, to help our customers reduce their energy costs, the City of Bandon will be mailing each residential electric utility customer a sample supply of Compact Fluorescent Lights (CFL's) to use in their homes. CFL's provide the equivalent light as a standard light bulb, but only use 25% of the energy. In addition, they last ten times longer than standard light bulbs, and have a significantly reduced impact on our environment. The performance of recent CFL's has increased dramatically compared to older CFL's due to advances in lighting technology.

Each kit will include 14 CFL bulbs in a variety of sizes and configurations, as well as a mail-in coupon for a free energy and water saving showerhead. The CFL's being sent to our customers reflect the latest technology in light bulbs available in the market today. We are confident that once you get the opportunity to use these CFL's, you will continue to purchase them in the future when you need to replace your lights. This offer is being funded entirely by Bonneville Power Administration (BPA) in an effort to help us meet our regional energy efficiency goals.

SYSTEM DEVELOPMENT CHARGE (SDC) INTEREST RATE REDUCED

In 1981, the City set the annual interest rates charged for local improvement district Bancroft Bonds and System Development Charge (SDC) financing agreements at 12 %. At the time, the 12% interest rate was appropriate since Bancroft Bonds were selling at comparable rates, and the 30-year fixed annual mortgage interest rate was 16.63%.

Measure 5 was approved by the voters in 1990, which significantly changed the way local improvement districts (LID's) were financed. Bancroft Bonds are no longer used, and since LID's are now financed with local improvement district bonds issued at the time the LID improvements are made, the principal and interest payments on such bonds are now passed through to the LID participants based on the interest rate at which the bonds are sold.

Since 1981, the 30-year fixed annual mortgage rate has fallen significantly, and as of April 2010 was at 5.10%. To be more consistent with current rates, the City Council has now reduced the annual interest rate on SDC financing agreements to a more appropriate 6%.

There are currently 7 active SDC financing agreements, of which 4 are current with their payments, and 3 are in arrears. In addition to setting the interest rate for future SDC agreements at 6%, the City Council has authorized staff to re-negotiate existing agreements to lower the 12% annual interest rate for future payments to 6%, conditioned upon an agreement that the payments would be kept current or they would revert back to the 12% rate. Any interest which had previously been accumulated at 12% would continue to be due, since the lower interest would only apply to future payments. Some of the delinquent SDC accounts are so far behind that it is unlikely the payers could afford to bring the loans current and continue paying 12% annual interest. By lowering the interest rate to a reasonable amount, and conditioning that lower interest on keeping the payments current, it is anticipated that some or all of the delinquent accounts will be brought current, which would be financially beneficial to both the City and the customer.

WORK ON THE WASTEWATER PLANT "BRINGING JACK BACK" MURAL RESTORATION PROJECT TO BEGIN SOON

As you are probably aware, local artist Vicki Affatati has launched the "Bringing Jack Back" project to restore the murals painted by Jack Champayne on the wastewater treatment plant tanks and buildings. She is raising funds through grants and donations, and working with Bandon High School Students to renovate the deteriorating murals which must be repaired or removed. The City has agreed to provide a grant match in the amount of $6,500 from the Sewer Fund.

City wastewater crews will soon be working with Ms. Affatati to begin pressure washing the murals and determining the exact extent of underlying damage and amount of painting which will be necessary to restore the murals to their original condition.

A question arose during the Police Department funding discussions as to whether the $6,500 earmarked for the "Bringing Jack Back" mural restoration project could be used to help fund police. The answer is that those funds cannot be used for police since they come from the Sewer Fund, and are restricted to wastewater system operation and maintenance. The mural restoration project involves maintenance of the wastewater plant, which would be the City's responsibility even if Ms. Affatati's efforts were not taking place.

For more information on the mural restoration project, please visit the "Bringing Jack Back" website at www.bringingjackback.org.

ANNUAL AGREEMENT WITH PEG BROADCAST SERVICES, INC. FOR CITY COUNCIL MEETING VIDEOTAPING EXTENDED

The current subscription agreement with PEG Broadcast Services, Inc. for videotaping City Council meetings and transmitting the tapes to Charter Communications and ComSpan for cable television broadcasting expires on June 30, 2010. At their June 7th meeting, the City Council approved an extension of the agreement for the upcoming 2010-2011 fiscal year (July 1, 2010 - June 30, 2011). In addition to the television broadcasts on Charter Cable Channel 14 and ComSpan Channel 73, PEG Broadcast Services also maintains video-on-demand at http://coosmediacenter.pegcentral.com where internet users can access the meeting videotapes at any time. DVDs of the Bandon Council meetings are also available at the Library for check-out. The annual cost for the videotaping services is $3,492 per year, which is identical to the prior fiscal year 2009-2010.

ANNUAL AGREEMENT WITH COOS COUNTY SHERIFF FOR 9-1-1, POLICE, AND UTILITY EMERGENCY DISPATCH SERVICES EXTENDED

The City of Bandon annually contracts with the Coos County Sheriff to provide 24-hour 9-1-1 emergency telephone service and after-hours, weekend, and holiday police and utility outage dispatch services, since City dispatch staff is only available at City Hall and the Police Department from 8 AM to 5 PM, Monday through Friday. The current agreement expires on June 30, 2010. At their June 7th meeting, the City Council approved an extension of the agreement for the upcoming fiscal year 2010-2011 (July 1, 2010 - June 30, 2011). The annual cost for the dispatch services is $50,906.77, which represents an increase of 2% over the prior fiscal year 2009-2010.

ANNUAL AGREEMENT WITH THE COOS COUNTY LIBRARY SERVICE DISTRICT EXTENDED

The funds for most of the Public Library's operating expenses are received by the City of Bandon through a distribution of funds from the Coos County Library Service District property tax. Major maintenance expenses for the Library building are funded from other City resources such as the General Fund and Capital Improvement Fund. To receive a share of the Library Service District tax, the City is required to enter into an agreement with the County for that purpose. The existing agreement was originally entered into in fiscal year 1996-1997, and has been subsequently updated each year to extend the term and adjust the amount to be received. At their June 7th meeting, the City Council approved the annual amendment to update the term for the upcoming fiscal year 2010-2011 (July 1, 2010 - June 30, 2011), and to update the amounts distributed to Southwestern Oregon Community College for the Coastline Budget (for maintaining the county-wide automated computer system) and the Extended Service Office (for operating the county-wide outreach, courier van, and inter-library loan program). It is estimated that the City will receive $245,917 from the Library Service District in the upcoming fiscal year.

FILL REGULATIONS IN THE SHORELAND OVERLAY AND CD-2 ZONES AMENDED

In an effort to bring consistency between the City's practices and the provisions of the zoning ordinance, the Planning Commission has been reviewing the City's regulations related to placing fill within the Shoreland Overlay Units, which are located along the Coquille River waterfront. The City's zoning regulations contain a matrix which prohibits any fill within those Units. Technically, such a prohibition would prevent any construction, landscaping, streets, sidewalks, or underground utilities in those areas. It is unclear as to why that prohibition was included in the zoning regulations, since neither Federal Emergency Management Agency (FEMA) floodplain regulations nor the Coquille River Estuary Management Plan (CREMP) contain any such prohibitions.

Staff determined that such a complete fill prohibition was unreasonable, and has for many years exercised discretion in applying that particular regulation, since FEMA regulations, the City's floodplain regulations, and the City's grade and fill permit regulations have provided adequate protection for the waterways and against negative impacts of fill on adjacent properties and drainage. Staff has allowed fill within the Shoreland Overlay Units, provided that activity was in compliance with the floodplain regulations, grade and fill regulations, and other state and federal regulations applicable to fill within the waterways. On the South Jetty, however, due to the sensitivity of the area and the prohibition against extension of sewer service to properties within the floodplain and outside the Jetty Sewer Local Improvement District (LID), fill has been allowed as long as it was incidental to building construction, installing utilities, road and sidewalk construction, and landscaping, but has been prohibited for the purpose of raising property out of the floodplain.

The Planning Commission determined it was appropriate to allow fill in all areas of the community, as long as it was incidental to building construction, installing utilities, road and sidewalk construction, and landscaping, and provided it complied with the City's grade and fill regulations, floodplain regulations, and other applicable state and federal regulations. With respect to using fill to bring properties out of the floodplain, however, the Planning Commission considered a number of factors and analyzed the pros and cons of that type of filling. After studying the matter, the Planning Commission determined that adequate regulatory protection existed to allow fill for purposes of bringing properties out of the floodplain in all areas except within the Controlled Development 2 (CD-2) Zone on the South Jetty

Based on the recommendation of the Planning Commission, the City Council adopted Ordianace No. 1580 at their June 7th meeting, which amended the zoning regulations to allow fill within the Shoreland Overlay Units, but prohibits fill to bring properties out of the floodplain within the CD-2 Zone on the South Jetty. All fill within the City remains subject to the floodplain regulations, grade and fill regulations, and other applicable state and federal regulations. Additional information and/or a copy of the fill regulations can be obtained by contacting City Planner Charli Davis at City Hall, telephone 541-347-2437, e-mail cdavis06(at)ci.bandon.or.us.

PUBLIC HEARING SCHEDULED ON THE BANDON TRANSPORTATION REFINEMENT PLAN

The City Council will be holding a Public Hearing on amending the Comprehensive Plan to add the Bandon Transportation Refinement Plan into the Bandon Transportation Plan. The project was funded by a grant from the Oregon Department of Transportation (ODOT) through the Transportation and Growth Management (TGM) program.

Preparation of the Plan involved significant input from a Citizen Advisory Committee appointed by the City Council. It details the transportation solutions for a 1.5 square mile area in the south end of the City of Bandon where recent development and annexation activity has occurred. (The study area is generally bounded by 18th Street on the north, Polaris Lane on the south, the ocean beach on the west, and segments of Rosa Road on the east.) The recommended street improvements are primarily intended to serve new development within the study area, while also working to reduce reliance on Highway 101 for local trips.

The Public Hearing will be held in the City Council Chambers on Monday, June 21 at 2:00 PM. Time will be allowed for public testimony. It is recommended that all testimony be submitted in writing prior to the hearing if possible. Copies of the proposed Refinement Plan are available for inspection at City Hall and the Library. If you have any comments or questions, need additional information, or require special accommodations to attend or participate in the hearing, please contact Michelle Hampton, City Planner, telephone 541-347-2437, ext. 231, e-mail mhampton(at)ci.bandon.or.us.

LINDA'S CHURCH JOKE

Linda sends along this link to a pretty funny YouTube video, that will be particularly appreciated by dog owners and lovers: http://www.youtube.com/watch?v=HaAVZ2yXDBo.

ANYTHING ELSE?

Do you have any questions, input, or suggestions? Are there any topics you want addressed or covered in the Newsletter? If so, please let me know at citymanager(at)ci.bandon.or.us. For more complex questions or issues that may take significant discussion, please feel free to contact me by telephone at (541) 347-2437, voice mail ext. 229, so we can schedule an appointment.

Also, remember to visit the City of Bandon WEB page at www.ci.bandon.or.us, where you can get more information on this wonderful place in which we live.

That's it for now. Have a good one!

Matt Winkel

City Manager