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HomeMy WebLinkAboutAgenda Packet - 2010-11-02 PMLAXE oswEco AGENDA CITY OF LAKE OSWEGO Centennial 1910-2010 CITY COUNCIL REGULAR MEETING 380 AAvenue PO Box 369 b1ba Tuesday, November 2, 2010 Lake Oswego, OR 97034 5:30 p.m. 503-675-3984 Council Chambers, 380 AAvenue www.ci.oswego.or.us Contact: Robyn Christie, City Recorder Also published on the internet at: Email: rchristie@ci.oswego.or.us www.ci.oswego.or.us Phone: 503-675-3984 The meeting location is accessible to persons with disabilities. To request accommodations, please contact the City Recorder's Office at 503-635-0236, 48 hours before the meeting. Page # 1. CALL TO ORDER 2. ROLL CALL 3. PRESENTATIONS (20 minutes) 3.1 LOIS Update 3.2 Water Partnership Update 3.3 Review of First Quarter Financial Information 4. CONSENT AGENDA (5 minutes) ♦ The consent agenda allows the City Council to consider items that require no discussion. ♦ An item may only be discussed if it is pulled from the consent agenda. ♦ The City Council makes one motion covering all items included in the consent agenda. 4.1 REPORTS 4.1.1 Resignation from the Historic Resources Advisory Board Action: Accept resignation of Marylou Colver from the Historic Resources Advisory Board Jack Hoffman, Mayor ■ Roger Hennagin, Councilor ■ Dan Vizzini, Councilor Donna Jordan, Councilor ■ Sally Moncrieff, Councilor ■ Mary Olson, Councilor ■ Bill Tierney, Councilor Page 2 4.2 RESOLUTIONS 4.2.1 Resolution 10-63, appointing youth members on advisory boards Action: Adopt Resolution 10-63, appointing Kevin O'Leary to the Library Advisory Board; Josh Nudelman to the Parks & Recreation Advisory Board; Madeline Brewster to the Historic Resources Advisory Board; Kavita Rajani to the Transportation Advisory Board; and Stephani Wax to the Natural Resources Advisory Board 4.2.2 Resolution 10-64, authorizing the establishment of commercial food waste collection rates for Allied Waste of Lake Oswego Action: Adopt Resolution 10-64 4.2.2 Resolution 10-66, making appointments to the Planning Commission Action: Adopt Resolution 10-66, appointing Puja Bhutani to a four-year term ending May 31, 2014; Todd Prager to the remainder of a term ending May 31, 2011; and to designate Ryan Flynn as alternate should there be a vacancy due to attrition through April 30, 2011 4.3 MINUTES 4.3.1 March 23, 2010, regular meeting 4.3.2 June 22, 2010, special meeting 4.3.3 June 23, 2010, special meeting 4.3.4 September 28, 2010, special meeting Action: Approve minutes as written END CONSENT AGENDA 5. ITEMS REMOVED FROM THE CONSENT AGENDA 6. CITIZEN COMMENT (30 minutes) The purpose of citizen comment is to allow citizens to present information or raise an issue regarding items not on the agenda or regarding agenda items that do not include a public hearing. A time limit of three minutes per citizen shall apply. Page 3 7. PUBLIC HEARING (15 minutes) 7.1 Ordinance 2559, an ordinance annexing to the City of Lake Oswego one parcel comprising approximately 0.65 acres at 4747 Upper Drive; declaring City of Lake Oswego zoning pursuant to LOC 50.05.025; and removing the parcel from certain districts (AN 10-0004) Public Hearing Process: Review of hearing procedure by David Powell, City Attorney Staff Report by Paul Espe, Associate Planner The following time limits on testimony shall be observed, but may be changed by the Council: Testimony will be taken in the following order: in support of annexation, in opposition to annexation, neutral. • 10 minutes for a representative of a recognized neighborhood association, homeowner association, or government agency, or other incorporated public interest organization; • 5 minutes for other persons. Questions of Staff Discussion Motion: Move to enact Ordinance 2559. 8. REPORTS (30 minutes) 8.1 Personal Services Contract to Provide Right -of -Way Acquisition Services for the expansion of the City of Lake Oswego's Water Supply System Motion: Move to approve award of a personal service contract in the amount not - to -exceed $399,844 to Universal Field Services, Inc., to provide right-of-way acquisition services related to the expansion of the City of Lake Oswego's water supply system 8.2 Resolution 10-58, declaring the public necessity to acquire real property for the Lake Oswego -Tigard Water Partnership Project and authorizing related activities Motion: Move to adopt resolution 10-58 9. INFORMATION FROM COUNCIL (15 minutes) This agenda item provides an opportunity for individual Councilors to provide information to the Council on matters not otherwise on the agenda. Each Councilor will be given five minutes. Page 4 9.1 Councilor Information 9.2 Reports of Council Committees, Organizational Committees, and Intergovernmental Committees 10. REPORTS OF OFFICERS (15 minutes) 10.1 City Manager 10.1.1 Review of Council Schedule 10.1.2 Review of Council Digest 10.2 City Attorney 11. ADJOURNMENT CABLE VIEWERS: This meeting will be shown live on Channel 28, at 6:30 p.m. The meeting will be rebroadcast at the following times on Channel 28: Wednesday 7:30 p.m. Friday 2:30 a.m. Thursday 7:00 a.m. Saturday 12:00 p.m. Watch Council meetings live wherever you are via live streaming video at mms://www.ci.oswego.or.us/live CITY COUNCIL / LORA TENTATIVE SCHEDULE Items known as of 10/28/10 DATE MEETING Monday, Joint meeting with the City of Tigard, WEB, Willamette Room 7 p.m. November 8 Tuesday, Special Meeting, 6:30 p.m. Council Chambers November 9 • Emergency Operations Plan Update (30 minutes) • Sensitive Lands Amendments to Definitions and Exempt Development (LU 10-0043) (1 hour) • Revisions to list of invasive tree species (20 minutes) • Comprehensive Plan text amendment to definition of congregate housing (LU 10-0041) (20 minutes) Monday, Special Meeting, 6:30 p.m. WEB, Santiam Room November 15 • Lake Oswego to Portland Transit Project Status Update and Council Questions (60 minutes) Tuesday, Special Meeting, 5:30 p.m. Municipal Court November 16 • Comprehensive Plan Update — Draft Vision/ Futures Scenario Development (with Planning Commission) Regular Meeting, 6:30 p.m. Council Chambers • Photo Contest Winners • Neighbors Helping Neighbors • Electric Lightwave Franchise Renewal (Ord. 2564) • Closed Session: real property Study Session • Natural Area Restoration and Maintenance (30 minutes) • Natural Resource Education and Outreach Proposals (30 minutes) Tuesday, Break for Thanksgiving November 23 Monday, Special Meeting, 6:30 p.m. Council Workroom November 29 • Charter Officer Evaluations Tuesday, Special Meeting, 6:30 p.m. Council Chambers November 30 • Update to Water Cost of Service Analysis (30 minutes) • Update to Master Fees and Charges (30 minutes) • Lake Grove Neighborhood Overlay (30 minutes) • Review of small isolated tree groves on the Natural Resources Map (30 minutes) • Natural Resources Map Correction Process (30 minutes) • CDC Amendment to extend development permit completion deadline (30 minutes) Monday, Redevelopment Agency, 6:30 p.m. Main Fire Station December 6 BOLD ITEMS — New issues added to schedule CITY COUNCIL / LORA TENTATIVE SCHEDULE Items known as of 10/28/10 DATE MEETING Tuesday, Regular Meeting, 6:30 p.m. Council Chambers December 7 • LOIS Update • Water Partnership Update • Comp Plan Update • Unsung Hero Awards • Award Professional Services Contract for Stormwater Code Rewrite • Multiple site landscape contract • Lake Oswego -Tigard Water Supply Partnership: Approval of Supply Facilities Capital Improvement Plan • Support of statewide plastic bag ban (Res. 10-65) Public Hearings • Comprehensive Plan text amendment to definition of congregate housing (LU 10-0041) Monday, Special Meeting, 6:30 p.m. Council Chambers December 13 Public Hearings • Sensitive Lands Amendments to Definitions and Exempt Development (LU 10-0043) • Adoption of revised list of invasive tree species Tuesday, Regular Meeting, 6:30 p.m. Council Chambers December 14 • Award Construction Contract for Chow Corner Pedestrian Improvements • Northwest Natural Franchise Renewal (Ord. 2565) • PRAB Recommendation for naming lakefront park • Adoption of Emergency Operations Plan • Review of 2010 Goals • Audit Committee Report Public Hearings • Lake Grove Neighborhood Plan Implementation —Amendments to create new overlay zone (LU 10-0040) • Adoption of Update to Master Fees and Charges • CDC Amendment to extend development permit completion deadline Tuesday, No Meeting December 21 Tuesday, No meeting December 28 To Be Scheduled • Lake Oswego to Portland Transit Locally Preferred Alternative Process (December/January) • Review draft Wastewater Master Plan (January 2011) • Context statement relating to Lake Oswego's Iron Industry and Mid -Century periods • Lake Down Tour • ACC National Accreditation • Vancouver, WA fieldtrip • Foothills Update • Industrial Park Zone Amendment (LU 10-0042) • Media in Executive Session Policy • Municipal Finance Presentation BOLD ITEMS — New issues added to schedule LAKE OSWEGO Centennial 1910-2010 FROM: SUBJECT DATE: ACTION COUNCIL REPORT Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager -3 .'3 CITY OF LAKE OSWEGO 380 A Avenue PO Box 369 Lake Oswego, OR 97034 Ursula Euler, Finance Director and Shawn Cross, Assistant Finance Director 503-675-3984 www.ci.oswego.or.us Review Financial Information as of the first quarter that ended on September 30, 2010 October 25, 2010 Review and discuss fiscal year 2010-11 financial information of the first quarter ending September 30, 2010. INTRODUCTION The first quarter of the new fiscal year has passed and staff is presenting financial information for all funds. Staff compared actual expenditures to the same period of the previous year and to current year expectations, and commented on those items that might raise questions, either because the current year information is much different from the previous year, or because revenues or expenditures seem to trail or exceed expectations. BACKGROUND AND DISCUSSION General Fund Clackamas, Washington and Multnomah Counties have certified the amounts of total assessed value and Property Taxes to be billed for FY2010-11. When compared to the property tax budget and the information used to develop it, it becomes apparent that the assumed growth of 1% (over and above the allowed 3% increase) for property in Clackamas County, has not materialized; instead, actual growth was closer to 0.3%. In the past five years, growth has proved to range between 0.9% and 2.5%; here, history may not be a good indicator for the future. When staff presents the 5 -year forecast for the General Fund, assessed value growth is an impactful variable and it may be prudent to assume a factor that is smaller than 1%. The FY2010-11 reports from the three counties show again that compression is not a factor in Lake Oswego. According to the recent report by Todd Chase of FCS Group, median home prices in Lake Oswego Page 2 have declined by 22% since hitting a peak in February 2008, narrowing the gap between current market values and assessed values in the future and the time within which compression might become a factor. Should this trend continue, staff estimates that for an average home owner, assessed value might merge with market value in approximately 10 years, unless values recover. This fiscal year's final tax collection will certainly be affected by such factors as collectability and the number of people who will take advantage of early payment discounts. It is noteworthy that Comcast has challenged its assessed property values. Clackamas and Multnomah Counties have informed staff that the resolution of cases such as this can take many years. If it were resolved in favor of Comcast, the City's annual property tax billings may decline by as much as $90,000 annually. Both counties will begin to establish a reserve this fiscal year by withholding distributions from its jurisdictions for the previous fiscal year, but the magnitude is yet to be determined. Tax collections may be slightly less than budgeted; it is early in the year and after the December 2010 distributions are received, staff will be in a better position to assess the reduction, if any. Licenses and Fees are well within budget. Permitting fees so far have been realized as expected, as have Hotel/Motel taxes. In the latter case, a downward trend had been incorporated into this fiscal year's budget. Other Financing Sources are also well within budget, but lower than in the previous year because intra - General Fund payments for services (transfers) are no longer recorded, while services by the General Fund — mostly administrative services — to other funds are recorded. In July, the City paid the entire fiscal year's workers compensation insurance cost. This means an early cost of approximately $380,000 to the General Fund. Without it, overall General Fund Personal Services spending would stand at 24.1% of budget. (City-wide it would stand at 24.4%.) Fire and Police are making use of overtime to bridge personnel absences (due to FMLA leave and turn -over), and Personal Services expenditures in Parks at 25.5% reflects seasonal expenditure acceleration, which will likely be offset by a slow -down later in the year. Spending in Materials and Services appears to be lagging. It usually accelerates as staff completes necessary contracts and as work can begin under these agreements for the new fiscal year. Debt Service represents the interest payment on the Line of Credit. The interest payment is made semi- annually, while the interest rate changes quarterly. The most recent annual rate has moved from 1.8977% to 1.7250%. As the table to the left shows interest Time period Line -of - Credit Interest Rate Jan 7 — April 6, 2010 1.5697% April 7 —July 6, 2010 1.6786% July 7 - October 6, 2010 1.8977% October 7, 2010 - January 6, 2011 1.7250% rates increased until July 2010 and more recently declined again. The FY2010-11 Budget incorporates $600,000 for interest expense at an approximately average interest rate of 3%. This will stand in good stead for the cost of a more permanent financing for the West End Property. The Line of Credit expires as of July 6, 2011 and it is likely that the City will have to enter into a bridge financing vehicle between then and Page 3 until an alternate funding plan can reasonably be implemented after a May 2011 vote. Transfers to other funds will catch up later in the year when certain transfers are made in support of Golf and Streets operations, if needed. Planning and Building is budgeted to transfer $290,000 to Streets to forward funds from the Bridgeport case settlement in payment of the Chow Corner work to be performed by Public Works. Attached you will find a report on capital projects budgeted in the General Fund, which explains progress and spending in capital outlay. Tourism Fund Hotel/Motel taxes are received once a month with a one month lag. They are tracking very closely to the previous year's experience and budget. The budget incorporated an expected downward trend for this revenue stream. A one-time transfer of $300,000 to the General Fund in reimbursement of the cost of the Iron Furnace is scheduled for October. Trolley Fund The City and its three Consortium members make a $20,000 payment once a year toward the end of the calendar year. Engineering is overseeing maintenance work for the trolley, much of which is scheduled as the need arises. Golf and Tennis Both enterprises are highly seasonal, with Golf revenues lagging expectations and Tennis revenues exceeding expectations. In both funds, Personal Services follow the revenues, with Golf slowing spending and with Tennis experiencing accelerated expenditures. Water Fund Sales and Services revenue reflects rate increases that were implemented as of July 1, 2010, where the first two billing cycles (mid-July for one half of customers, and mid-August for the other half) included some pre -July 1 consumption at previous rates. It is reasonable to assume a high pace of revenue realization in the first and second quarter (Summer and Fall), which is then offset by a slower pace in Winter and Spring. Staff has begun work on a water consumption report that can show consumption by Tier. Tiered rates for residential customers became effective as of July 1, 2009, and are to be phased in over several years; tiered rates are a long-term pricing tool and our residential customers just recently completed one first full cycle under the new pricing methodology. Current year miscellaneous revenues are much lower than for the same period in the previous year, because current interest rates are lower than in the previous year. The budget anticipated this trend. A separate capital report is attached to provide insight into the progress of planned capital projects. Page 4 Wastewater Sales & Services revenue includes the July 1, 2010 rate increase. Similar to what was described for the Water Fund, fees were prorated for pre -July 1 estimated usage. This is due to the every -other -month billing cycle. Although early in the year, staff is hopeful that this utility's revenues will be within expectations. Its revenue variability is low because usage is based on the previous average winter usage, which has little variability in itself, and because the fixed portion of the typical customer's charge is about 73%. This was by design to afford the utility a reliable revenue stream for future debt service payments. The issue of the second LOIS bond was completed successfully on September 30, 2010. The true interest cost is 3.3861%, a very favorable rate. Actual proceeds were $34,865,537, with a premium of $227,466, to be amortized over the life of the bond, and an underwriter's fee of $361,929, or 1.03%. The latter does not include rating agency fees, printing fees, fees for legal counsel or the financial advisor, and several smaller fees. Staff expects all bond issue costs to be around 1.5% of the bond issue. The Capital Outlay budget includes $39,425,000 for LOIS and $5,041,000 for non -LOIS projects. $7,361,402 of actual spending this year relates to LOIS, while $6,917 relates to non -LOIS projects. The enclosed capital projects reports provides more insight into the progress of specific projects. Surface Water Once again, Sales & Services revenue includes a 7% rate increase as of July 1, 2010, that was pro -rated for the billing cycle falling before and after July 1St Personal Services appear to outpace any seasonality and might require attention later this year, as may Personal Services in the other utilities. Staff will keep an eye on it. Materials and Services spending is lagging at this time but is expected to catch up as the year progresses. Street Fund Intergovernmental revenues (Highway taxes) are collected monthly with a one month delay. The current budget incorporated a higher budget than the previous year in expectation of higher fuel taxes. It is too early in the year to predict if expectations were realistic. Licenses and Fees include the first of three scheduled increases of Street fees; so far revenue realized slightly exceeds expectations. A transfer of $290,000 is scheduled for October from the Planning Department (in the General Fund) to the Street Fund. This is for Bridgeport funds originally received into Planning, while the Street Fund will actually undertake the project — listed as Chow Corner Sidewalk in the Capital Improvement Plan. The enclosed capital projects report provides more insight into capital spending and the progress of specific capital projects. Maintenance Services & Motor Pool and Engineering In the first three months, both of these funds held their own in that revenues slightly exceeded Page 5 expenditures. Staff continues to analyze labor division and costs in the Motor Pool and labor utilization in the Engineering Fund. Some changes have been made and staff is hopeful that they will continue to bear fruit, so that both funds can cover their own costs through appropriate charges. Other During the FY2009-10 audit, it has become apparent that the newly established fund for the Lake Oswego - Tigard Water Partnership is better handled as a department integral to the Water Fund, similar to the LOIS department within the Wastewater Fund, rather than as a separate fund. Staff could continue to maintain a separate fund for internal reporting or reporting to Council. For the Comprehensive Annual Financial Report the two funds will have to be combined and treated as one. Staff would like to consider doing the same for internal reporting and will consolidate this budget change with a future budget supplement. Staff is happy to answer any other questions either during the study session or after. ATTACHMENTS 1. Exhibit A - City of Lake Oswego Budget Report, September 30, 2010 2. Exhibit B — FY 2010-11 First Quarter CIP Spending 3. Exhibit C — Engineering Construction Services — Composite Project Schedule Reviewed bv- Alex D. cl City Manag LAKEOSWEGO Centennial 1910-2010 FY 2009-10 ACTUAL YTD City of Lake Oswego Budget Summary - Citywide September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD ACTUAL BUDGET BALANCE % of BUDGET Revenues Property Taxes 151,910 158,166 29,698,000 29,539,834 0.5% Franchise Fees 126,093 135,199 2,438,000 2,302,801 5.5% Intergovernmental 493,525 1,857,955 11,130,000 9,272,045 16.7% Licenses and Fees 1,228,110 1,734,213 5,703,000 3,968,787 30.4% Fines and Forfeitures 240,131 290,623 970,000 679,377 30.0% Sales and Services 5,382,776 6,153,549 22,195,000 16,041,451 27.7% Special Assessments 27,904 4,894 44,000 39,106 11.1% Miscellaneous Revenues 366,679 266,620 1,331,000 1,064,380 20.0% Other Financing Sources 1,849,583 37,653,891 61,391,000 23,737,109 61.3% Total Revenues 9,866,711 48,255,110 134,900,000 86,644,890 35.8% Expenditures Personal Services 8,914,468 9,483,574 37,467,000 27,983,426 25.3% Materials and Services 2,817,727 2,861,072 19,601,000 16,739,928 14.6% Other Financing Uses 0 0 0 0 NaN Debt Service 12,455,531 0 7,620,000 7,620,000 0.0% Transfers to Other Funds 1,847,083 2,653,891 11,391,000 8,737,109 23.3% Capital Outlay 5,870,042 9,209,447 56,319,776 47,110,329 16.4% Contingency 0 0 34,957,612 34,957,612 0.0% Total Expenditures 31,904,852 24,207,984 167,356,388 143,148,404 14.5% Revenues - Expenditures = Surplus (Deficit) (22,038,141) 24,047,126 (32,456,388) (56,503,514) (74.1%) As of 1011412010 Page 1 of 1 LAKEOSWEGO City of Lake Oswego Centennial 1910-2010 General Fund Summary September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD FY 2009-10 ACTUAL YTD ACTUAL BUDGET BALANCE % of BUDGET GENERALFUND Revenues Property Taxes 138,305 142,125 26,475,000 26,332,875 0.5% Franchise Fees 126,093 135,199 1,938,000 1,802,801 7.0% Intergovernmental 283,387 270,701 4,190,000 3,919,299 6.5% Licenses and Fees 484,561 592,143 2,326,000 1,733,857 25.5% Fines and Forfeitures 240,131 290,623 970,000 679,377 30.0% Sales and Services 588,613 991,759 3,455,000 2,463,241 28.7% Special Assessments 0 0 0 0 NaN Miscellaneous Revenues 172,731 139,732 652,000 512,268 21.4% Other Financing Sources 1,242.607 715,621 2,996,000 2,280,379 23.9% Total Revenues 3,276,427 3,277,903 43,002,000 39,724,097 7.6% Expenditures Personal Services 7,076,059 7,551,710 30,176,000 22,624,290 25.0% Materials and Services 1,953,074 1,913,923 10,652,000 8,738,077 18.0% Debt Service 14,194 0 600,000 600,000 0.0% Transfers to Other Funds 887,457 199,796 1,355,000 1,155,204 14.7% Capital Outlay 124,776 190,200 466,000 275,800 40.8% Contingency 0 0 7,270,000 7,270,000 0.0% Total Expenditures 10,055,560 9,855,629 50,519,000 40,663,371 19.5% Revenues - Expenditures = Surplus (Deficit) (6,779,133) (6,577,725) (7,517,000) (939,275) 87.5% As of 1011412010 Page 1 of 1 LAKE OSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) FY 2009-10 ACTUALYTD ACTUAL Fiscal Year 2010-11 YTD BUDGET BALANCE % of BUDGET GENERALFUND Revenues Property Taxes 138,305 142,125 26,475,000 26,332,875 0.5% Franchise Fees 126,093 135,199 1,938,000 1,802,801 7.0% Intergovernmental 283,387 270,701 4,190,000 3,919,299 6.5% Licenses and Fees 484,561 592,143 2,326,000 1,733,857 25.5% Fines and Forfeitures 240,131 290,623 970,000 679,377 30.0% Sales and Services 588,613 991,759 3,455,000 2,463,241 28.7% Special Assessments 0 0 0 0 NaN Miscellaneous Revenues 172,731 139,732 652,000 512,268 21 A% Other Financing Sources 1,242,607 715,621 2,996,000 2,280,379 23.9% Total Revenues 3,276,427 3,277,903 43,002,000 39,724,097 7.6% General Administration Personal Services 1,033,648 1,229,523 5,294,000 4,064,477 23.2% Materials and Services 937,390 994,023 4,617,000 3,622,977 21.5% Debt Service 14,194 0 600,000 600,000 0.0% Transfers to Other Funds 64,247 37,062 324,000 286,939 11.4% Capital Outlay 107,290 0 30,000 30,000 0.0% Contingency 0 0 7,270,000 7,270,000 0.0% Total Expenditures 2,156,768 2,260,608 18,135,000 15,874,392 12.5% Fire Personal Services 1,854,901 1,974,446 7,445,000 5,470,554 26.5% Materials and Services 116,462 105,004 832,000 726,996 12.6% Transfers to Other Funds 179,740 13,177 65,000 51,823 20.3% Capital Outlay 0 0 32,000 32,000 0.0% Total Expenditures 2,151,103 2,092,628 8,374,000 6,281,372 25.0% Library Personal Services 579,064 610,412 2,522,000 1,911,588 24.2% Materials and Services 106,765 111,050 620,000 508,950 17.9% Transfers to Other Funds 67,504 0 0 0 NaN Capital Outlay 0 0 0 0 NaN Contingency 0 0 0 0 NaN Total Expenditures 753,333 721,462 3,142,000 2,420,538 23.0% Municipal Court Personal Services 75,493 65,020 316,000 250,980 20.6% Materials and Services 46,542 67,355 308,000 240,645 21.9% Transfers to Other Funds 38,204 0 0 0 NaN Contingency 0 0 0 0 NaN Total Expenditures 160,239 132,376 624,000 491,624 21.2% As of 1011412010 Page 1 of 11 LAKEOSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD FY 2009-10 ACTUAL YTD ACTUAL BUDGET BALANCE % of BUDGET Parks and Recreation Personal Services 754,918 819,880 3,209,000 2,389,120 25.5% Materials and Services 486,755 379,900 2,164,000 1,784,100 17.6% Transfers to Other Funds 127,809 59,577 287,000 227,423 20.8% Capital Outlay 17,486 190,200 222,000 31,800 85.7% Total Expenditures 1,386,968 1,449,557 5,882,000 4,432,443 24.6% Adult Community Center Personal Services 178,381 182,963 737,000 554,037 24.8% Materials and Services 64,851 35,181 279,000 243,819 12.6% Transfers to Other Funds 32,688 1,168 9,000 7,832 13.0% Capital Outlay 0 0 0 0 NaN Total Expenditures 275,920 219,312 1,025,000 805,688 21.4% Planning and Building Personal Services 572,811 633,953 2,686,000 2,052,047 23.6% Materials and Services 54,808 59,263 952,000 892,737 6.2% Transfers to Other Funds 125,760 65,589 552,000 486,411 11.9% Capital Outlay 0 0 0 0 NaN Total Expenditures 753,379 758,806 4,190,000 3,431,194 18.1% Police Personal Services 2,026,844 2,035,512 7,967,000 5,931,488 25.5% Materials and Services 139,501 162,146 880,000 717,854 18.4% Transfers to Other Funds 251,505 23,223 118,000 94,777 19.7% Capital Outlay 0 0 182,000 182,000 0.0% Total Expenditures 2,417,850 2,220,882 9,147,000 6,926,118 24.3% Revenues - Expenditures = Surplus (Deficit) (6,779,133) (6,577,725) (7,517,000) (939,275) 87.5% As of 1011412010 Page 2 of 11 LAKE OSWEGO Centennial 1910-2010 FY 2009-11 ACTUALYT TOURISM FUND 250,000 Revenues 23.1% Licenses and Fees 63,597 Miscellaneous Revenues 10 Total Revenues 63,607 Expenditures 8,554 Materials and Services 0 Transfers to Other Funds 0 Capital Outlay 0 Total Expenditures 0 Revenues - Expenditures 8,662 = Surplus (Deficit) 63,607 TROLLEY FUND 250,000 Revenues 23.1% Intergovernmental 0 Miscellaneous Revenues 3,557 Other Financing Sources 4,997 Total Revenues 8,554 Expenditures 86,000 Materials and Services 8,662 Transfers to Other Funds 0 Contingency 0 Total Expenditures 8,662 Revenues - Expenditures 30,000 = Surplus (Deficit) 54.3% As of 1011412010 City of Lake Oswego Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD ACTUAL BUDGET BALANCE % of BUDGET 57,750 250,000 192,250 23.1% 539 3,000 2,461 18.0% 58,289 253,000 194,711 23.0% 1,136 86,000 0 10,000 10,000 0.0% 1,753 307,000 305,247 0.6% 16,302 30,000 13,698 54.3% 18,055 347,000 328,945 5.2% 40,234 (94,000) (134,234 ,i (42.8%) 0 60,000 60,000 0.0% 1,136 6,000 4,864 18.9% 0 20,000 20,000 0.0% 1,136 86,000 84,864 1.3% 4,094 120,000 115,906 3.4% 52,503 60,000 7,497 87.5% 0 272,775 272,775 0.0% 56,597 452,775 396,178 12.5% (55,461) (366,775) (311,314) 15.1% Page 3of11 LAKEOSWEGO Centennial 1910-2010 FY 2009-10 ACTUAL YTD City of Lake Oswego Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD ACTUAL BUDGET BALANCE % of BUDGET GOLF COURSE FUND Revenues Sales and Services 301,009 267,025 836,000 568,975 31.9% Miscellaneous Revenues 7.889 4,248 14,000 9,752 30.3% Other Financing Sources 0 0 110,000 110,000 0.0% Total Revenues 308,899 271,273 960,000 688,727 28.3% Expenditures Personal Services 176,873 156,664 508,000 351,336 30.8% Materials and Services 47,720 59,040 294,000 234,960 20.1% Transfers to Other Funds 9,711 31,271 143,000 111,729 21.9% Capital Outlay 0 0 0 0 NaN Contingency 0 0 20,366 20,366 0.0% Total Expenditures 234,304 246,975 965,366 718,391 25.6% Revenues - Expenditures = Surplus (Deficit) 74,594 24,298 (5,366) (29,664) (452.8%) TENNIS FACILITY FUND Revenues Licenses and Fees 454 441 2,000 1,559 22.1% Sales and Services 130,671 138,672 352,000 213,328 39.4% Miscellaneous Revenues 4,038 1,814 9,000 7,186 20.2% Total Revenues 135,163 140,927 363,000 222,073 38.8% Expenditures Personal Services 28,721 35,534 129,000 93,466 27.5% Materials and Services 14,569 36,900 123,000 86,100 30.0% Transfers to Other Funds 30,207 31,513 123,000 91,487 25.6% Capital Outlay 16,642 0 0 0 NaN Contingency 0 0 91,879 91,879 0.0% Total Expenditures 90,139 103,947 466,879 362,932 22.3% Revenues - Expenditures = Surplus (Deficit) 45,024 36,981 (103,879) (140,860) (35.6%) As of 1011412010 Page 4 of 11 LAKE OSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD FY 2009-10 ACTUAL YTD ACTUAL BUDGET BALANCE % of BUDGET PERCENT FOR ART FUND Revenues Miscellaneous Revenues 234 34 1,000 966 3.4% Other Financing Sources 25,003 25,003 100,000 74,997 25.0% Total Revenues 25,237 25,037 101,000 75,963 24.8% Expenditures 82,516 38,068 180,000 141,932 21.1% Materials and Services 36,500 50,000 88,000 38,000 56.8% Transfers to Other Funds 0 1,753 7,000 5,247 25.0% Capital Outlay 0 0 12,000 12,000 0.0% Total Expenditures 36,500 51,753 107,000 55,247 48.4% Revenues - Expenditures 466,608 419,145 2,220,000 1,800,855 18.9% = Surplus (Deficit) (11,263) (26,716) (6,000) 20,716 445.3% WATER FUND Revenues Intergovernmental 0 0 0 0 NaN Licenses and Fees 3,236 1,283 10,000 8,717 12.8% Sales and Services 2,085,562 1,972,082 6,490,000 4,517,918 30.4% Miscellaneous Revenues 82,516 38,068 180,000 141,932 21.1% Other Financing Sources 0 0 0 0 NaN Total Revenues 2,171,314 2,011,432 6,680,000 4,668,568 30.1% Expenditures Personal Services 350,523 371,039 1,440,000 1,068,961 25.8% Materials and Services 466,608 419,145 2,220,000 1,800,855 18.9% Other Financing Uses 0 0 0 0 NaN Debt Service 337,838 0 958,000 958,000 0.0% Transfers to Other Funds 247,832 1,325,744 5,313,000 3,987,257 25.0% Capital Outlay 16,774 19,644 1,178,000 1,158,356 1.7% Contingency 0 0 3,818,209 3,818,209 0.0% Total Expenditures 1,419,575 2,135,572 14,927,209 12,791,637 14.3% Revenues - Expenditures = Surplus (Deficit) 751,739 (124,141) (8,247,209) (8,123,068 ; 1.5% As of 1011412010 Page 5 of 11 LAKE OSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD FY 2009-10 ACTUALYTD ACTUAL BUDGET BALANCE % of BUDGET WASTEWATER FUND Revenues Licenses and Fees 176,860 162,019 400,000 237,981 40.5% Sales and Services 1.839,264 2,312,934 9,159,000 6,846,066 25.3% Miscellaneous Revenues 34,676 24,465 91,000 66,535 26.9% Other Financing Sources 0 35,000,000 50,000,000 15,000,000 70.0% Total Revenues 2,050,799 37,499,418 59,650,000 22,150,582 62.9% Expenditures 62,280 86,996 326,000 239,004 26.7% Personal Services 262,054 281,306 1,090,000 808,694 25.8% Materials and Services 98,418 170,502 3,389,000 3,218,498 5.0% Debt Service 12,103,500 0 2,489,000 2,489,000 0.0% Transfers to Other Funds 252,787 339,658 1,374,000 1,034,342 24.7% Capital Outlay 5,645,121 7,368,319 44,466,000 37,097,681 16.6% Contingency 0 0 17,843,877 17,843,877 0.0% Total Expenditures 18,361,879 8,159,785 70,651,877 62,492,092 11.5% Revenues - Expenditures = Surplus (Deficit) (16,311,080) 29,339,633 (11,001,877) (40,341,510) (266.7%) SURFACE WATER FUND Revenues Sales and Services 437,657 468,692 1,893,000 1,424,308 24.8% Miscellaneous Revenues 8,745 4,878 25,000 20,122 19.5% Other Financing Sources 0 0 0 0 NaN Total Revenues 446,402 473,570 1,918,000 1,444,430 24.7% Expenditures Personal Services 62,280 86,996 326,000 239,004 26.7% Materials and Services 45,946 23,790 817,000 793,210 2.9% Other Financing Uses 0 0 0 0 NaN Debt Service 0 0 235,000 235,000 0.0% Transfers to Other Funds 152,847 234,531 947,000 712,470 24.8% Capital Outlay 1,495 30,400 305,000 274,600 10.0% Contingency 0 0 632,328 632,328 0.0% Total Expenditures 262,567 375,716 3,262,328 2,886,612 11.5% Revenues - Expenditures = Surplus (Deficit) 183,835 97,853 (1,344,328) (1,442,181) (7.3%) As of 1011412010 Page 6 of 11 LASEOSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD FY 2009-10 ACTUAL YTD ACTUAL BUDGET BALANCE % of BUDGET STREET FUND 0 Revenues NaN Intergovernmental 0 Revenues 120,475 Special Assessments 1,550 Miscellaneous Revenues 15,716 Franchise Fees 0 0 500,000 500,000 0.0% Intergovernmental 208,037 268,511 1,820,000 1,551,489 14.8% Licenses and Fees 286,940 422,229 1,499,000 1,076,771 28.2% Miscellaneous Revenues 86 3,256 9,000 5,744 36.2% Other Financing Sources 0 0 334,000 334,000 0.0% Total Revenues 494,890 693,995 4,162,000 3,468,005 16.7% Expenditures Personal Services 163,243 131,469 402,000 270,531 32.7% Materials and Services 112,321 145,172 1,149,000 1,003,828 12.6% Transfers to Other Funds 172,910 254,376 1,037,000 782,624 24.5% Capital Outlay 47,679 258,349 1,514,000 1,255,651 17.1% Contingency 0 0 259,732 259,732 0.0% Total Expenditures 496,153 789,366 4,361,732 3,572,366 18.1% Revenues - Expenditures = Surplus (Deficit) (1,263) (95,371) (199,732) (104,361) 47.7% SYSTEMS DEV CHARGES FUND 0 Revenues NaN Intergovernmental 0 Licenses and Fees 120,475 Special Assessments 1,550 Miscellaneous Revenues 15,716 Total Revenues 137,741 Expenditures 19.8% Materials and Services 0 Capital Outlay 0 Contingency 0 Total Expenditures 0 Revenues - Expenditures 60,000 = Surplus (Deficit) 137,741 0 0 0 0 NaN 197,064 741,000 543,936 26.6% 0 7,000 7,000 0.0% 9,295 47,000 37,705 19.8% 206,359 795,000 588,641 26.0% 0 0 0 NaN 203 60,000 59,798 0.3% 0 3,440,139 3,440,139 0.0% 203 3,500,139 3,499,937 0.0% 206,157 (2,705,139) (2,911,296) (7.6%) As of 1011412010 Page 7 of 11 LAKEOSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) ENGINEERING FUND FY 2009-10 ACTUALYTD ACTUAL Fiscal Year 2010-11 YTD BUDGET BALANCE % of BUDGET MAINT SVC & MOTOR POOL Revenues Revenues Intergovernmental 0 0 0 0 Licenses and Fees 0 0 0 0 NaN Miscellaneous Revenues 12,468 25,713 220,000 194,287 11.7% Other Financing Sources 120,985 255,975 1,202,000 946,025 21.3% Total Revenues 133,453 281,688 1,422,000 1,140,312 19.8% Expenditures Expenditures Personal Services 208,213 209,119 844,000 634,881 24.8% Materials and Services 18,366 10,911 311,000 300,089 3.5% Transfers to Other Funds 1,376 37,700 158,000 120,300 23.9% Capital Outlay 13,412 0 0 0 NaN Contingency 0 0 100,000 100,000 0.0% Total Expenditures 204,636 257,730 1,413,000 1,155,270 18.2% Revenues - Expenditures Revenues - Expenditures = Surplus (Deficit) i 23,957 9,000 0 266.2% ENGINEERING FUND Revenues Intergovernmental 0 0 0 0 NaN Licenses and Fees 91,988 138,841 475,000 336,159 29.2% Miscellaneous Revenues 379 247 6,000 6,247 4.1% Other Financing Sources 455,991 639,289 2,557,000 1,917,711 25.0% Total Revenues 548,357 777,883 3,038,000 2,260,117 25.6% Expenditures Personal Services 553,709 575,232 2,093,000 1,517,768 27.5% Materials and Services 33,421 17,814 324.000 306,186 5.5% Transfers to Other Funds 66,798 119,414 476,000 356,586 25.1% Capital Outlay 0 0 0 0 NaN Contingency 0 0 145,000 145,000 0.0% Total Expenditures 653,929 712,460 3,038,000 2,325,540 23.5% Revenues - Expenditures = Surplus (Deficit) (105,571) 65,423 0 -Infinity As of 1011412010 Page 8 of 11 LMGOSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD FY 2009-10 ACTUAL YTD ACTUAL BUDGET BALANCE % of BUDGET LO - TIGARD WTR SUPPLY 0.5% 17.1% 0.7% Revenues 0.0% Property Taxes 13,605 Revenues 22,713 Total Revenues 36,318 Expenditures Intergovernmental 0 1,316,031 5,042,000 3,725,969 26.1% Licenses and Fees 0 162,444 0 162,444 -Infinity Sales and Services 0 2,385 10,000 7,615 23.9% Miscellaneous Revenues 24 4,840 18,000 13,160 26.9% Other Financing Sources 0 1,018,003 4,072,000 3,053,997 25.0% Total Revenues 24 2,503,703 9,142,000 6,638,297 27.4% Expenditures Personal Services 32,793 84,506 459,000 374,494 18.4% Materials and Services 18,852 9,781 104,000 94,219 9.4% Transfers to Other Funds 25,158 23,880 91,000 67,120 26.2% Capital Outlay 0 1,324,195 8,120,000 6,795,805 16.3% Contingency 0 0 1,045,000 1.045,000 0.0% Total Expenditures 76,803 1,442,361 9,819,000 8,376,639 14.7% Revenues - Expenditures = Surplus (Deficit) (76,827) 1,061,342 (677,000) (1,738,342) (156.8%) BONDED DEBT SERVICE 0.5% 17.1% 0.7% Revenues 0.0% Property Taxes 13,605 Miscellaneous Revenues 22,713 Total Revenues 36,318 Expenditures Debt Service 0 Total Expenditures 0 Revenues - Expenditures = Surplus (Deficit) 36,318 16,041 8,213 Q 3,223,000 48,000 3,271,000 3,338,000 24,254 (67,000) 3,206,959 39,787 3,246,746 0.5% 17.1% 0.7% 3,338,000 0.0% 3,338,000 0.0% (91,254) (36.2%) As of 1011412010 Page 9 of 11 LAICEOSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD FY 2009-10 ACTUAL YTD ACTUAL BUDGET BALANCE % of BUDGET ASSESSMENT PROJECT FUND Revenues Licenses and Fees 0 0 0 0 NaN Special Assessments 26,354 4,894 37,000 32,106 13.2% Miscellaneous Revenues 565 330 1,000 670 33.0% Total Revenues 26,919 5,224 38,000 32,776 13.7% Expenditures Capital Outlay 4,144 274 63,000 62,726 0.4% Contingency 0 0 18,307 18,307 0.0% Total Expenditures 4,144 274 81,307 81,033 0.3% Revenues - Expenditures = Surplus (Deficit) 22,774 4,951 (43,307) (48,258) (11.4%) BICYCLE PATH FUND Revenues Intergovernmental 2,101 2,712 18,000 15,288 15.1% Miscellaneous Revenues 553 307 1,000 693 30.7% Total Revenues 2,654 3,019 19,000 15,981 15.9% Expenditures Capital Outlay 0 1,561 105,776 104.215 1.5% Total Expenditures 0 1,561 105,776 104,215 1.5% Revenues - Expenditures = Surplus (Deficit) 2,654 1,458 (86,776) (88,234) (1.7%) LORA BONDED DEBT SERVICE Revenues Property Taxes 14,615 16,556 3,106,000 3,089,444 0.5% Miscellaneous Revenues 20,293 23,475 46,000 22,525 51.0% Total Revenues 34,908 40,031 3,152,000 3,111,969 1.3% Expenditures Debt Service 213,346 185,069 1,748,000 1,562,931 10.6% Transfers to Other Funds 0 489,931 1,959,721 1,469,790 25.0% Contingency 0 0 0 0 NaN Total Expenditures 213,346 675,000 3,707,721 3,032,721 18.2% Revenues - Expenditures = Surplus (Deficit) (178,438) (634,969) (555,721) 79,248 114.3% As of 1011412010 Page 10 of 11 LA.I(EOSWEGO City of Lake Oswego Centennial 1910-2010 Budget Comparison by Department September 30, 2010 - (25.0% of Budget) Fiscal Year 2010-11 YTD FY 2009-10 ACTUAL YTC ACTUAL BUDGET BALANCE % of BUDGET LORA CAPITAL PROJECTS Revenues Sales and Services 0 0 0 0 NaN Miscellaneous Revenues 78,827 38,865 142,000 103,135 27.4% Other Financing Sources 0 489,931 1,959,721 1,469,790 25.0% Total Revenues 78,827 528,796 2,101,721 1,572,925 25.2% Expenditures Materials and Services 140,996 181,574 1,635,000 1,453,426 11.1% Other Financing Uses 0 0 0 0 NaN Capital Outlay 77,888 20,246 2,070,000 2,049,754 1.0% Total Expenditures 218,884 201,820 3,705,000 3,503,180 5.4% Revenues - Expenditures = Surplus (Deficit) (140,057) 326,976 (1,603,279) (1,930,255) (20.4%) As of 1011412010 Page 11 of 11 0 0 o C) Ln L Qi r o M V) U N �O 8 L c a N Y A� O W CM N CL Vo L L N L- m m :( V }� o � o L LL T-4 P'I 1 Jo a �1 O O LL u� �e I N t v d c i > c« u `w c > a c E W DO c p c_ E m 3 o 3w 3 E m m 00 ¢ - o a V a z m e s a � v y ? w m a ¢ u c v 4 d c ~ a c to E w � n � w r c 't H Q1 v E 7 c W Q x W N 11O 7 CO 0 O 0 N_ In N O r S 0 s 8 N N S O O O N pO 1D N N m y a m a 7 S O O O E v n w E a m r m « a w d v ¢ w d 3 O 3 3 > E � m 3 3 3 0 O ¢ ' °1 IF O o E D }r '� i. 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D o J a ami w cn d a) U= Q O z U a) f N Cl) Q � 00 CA p in CA CO � �CN c"I U o d w I O O N 00 N O 4. f .1 CITY OF LAKE OSWEGO LAKE OsWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: Robyn Christie, City Recorder City Manager's Office SUBJECT: Resignation from the Historic Resources Advisory Board DATE: October 21, 2010 ACTION Accept the resignation of Marylou Colver from the Historic Resources Advisory Board. Reviewed by: Alex D. McIntyre City Manager 380 AAvenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us LAKE OSWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: Jane McGarvin, Deputy City Recorder SUBJECT: Youth Members on Advisory Boards appointments DATE: October 14, 2010 ACTION q.2./ CITY OF LAKE OSWEGO 380 A Avenue PO Box 369 Lake Oswego, OR 97034 Adopt Resolution 10-63, approving appointments of Youth Members on Advisory Boards. INTRODUCTION/BACKGROUND 503-675-3984 www.ci.oswego.onus The City Council Interview Committee consisting of Councilors Moncrieff and Vizzini, met on October 13, 2010, to interview youth candidates for Advisory Board. It was the consensus of the Interview Committee to recommend that the following youth be appointed for terms ending August 31, 2011: Kevin O'Leary to the Library Advisory Board; Josh Nudelman to the Parks & Recreation Advisory Board; Madeline Brewster to the Historic Resources Advisory Board; Kavita Rajani to the Transportation Advisory Board; and Stephani Wax to the Natural Resources Advisory Board. ATTACHMENTS 1. Resolution 10-63 Reviewed by; City Attorney Alex D. McIntyre City Manager McGarvin, Jane From: McGarvin, Jane Sent: Friday, October 15, 2010 8:20 AM To: McGarvin, Jane Subject: FW: Resignation October 14, 2010 Jeannie McGuire Chair, Historic Resources Advisory Board City of Lake Oswego Dear Jeannie, Please accept my resignation from the City of Lake Oswego's Historic Resources Advisory Board, effective immediately. As promised, I will write the "Hello LO" insert for May 2011, National Historic Preservation Month. I will also continue to work towards Lake Oswego's inclusion in the Willamette Falls Heritage Area. Best, Marylou Cc: Councilor Mary Olson, Council Liaison Paul Espe, Staff Liaison 1 RESOLUTION 10-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO APPROVING YOUTH APPOINTMENTS TO ADVISORY BOARDS WHEREAS, a City Council Interview Committee, consisting of Councilors Moncrieff and Vizzini, met on October 13, 2010, to interview youth candidates for appointment to Advisory Boards; and WHEREAS, it was the consensus of the Interview Committee to recommend that the following youth members be appointed to terms ending August 31, 2011: Kevin O'Leary to the Library Advisory Board; Josh Nudelman to the Parks & Recreation Advisory Board; Madeline Brewster to the Historic Resources Advisory Board; Kavita Rajani to the Transportation Advisory Board; and Stephani Wax to the Natural Resources Advisory Board, and WHEREAS, the Mayor has made the appointments recommended by the Interview Committee; NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lake Oswego approves the appointment of the following youth members to terms ending August 31, 2011: Kevin O'Leary to the Library Advisory Board; Josh Nudelman to the Parks & Recreation Advisory Board; Madeline Brewster to the Historic Resources Advisory Board; Kavita Rajani to the Transportation Advisory Board; and Stephani Wax to the Natural Resources Advisory Board. This resolution shall take effect upon passage. Approved and adopted by the City Council of the City of Lake Oswego at a regular meeting held on the 2nd day of November, 2010. AYES: NOES: ABSTAIN: EXCUSED: Jack D. Hoffman, Mayor ATTEST: Robyn Christie, City Recorder AP �EOVED AS TO F David Powell, City Attor ey LAKE OSWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager �L FROM: David Donaldson, Assistant City ManagerX a{. 2 Z CITY OF LAKE OSWEGO 380 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us SUBJECT: Resolution 10-64, establishing commercial food waste collection rates for Allied Waste of Lake Oswego DATE: October 22, 2010 ACTION Adopt Resolution 10-64, establishing commercial food waste collection rates for Allied Waste of Lake Oswego. INTRODUCTION/BACKGROUND On September 28, 2010, staff made a presentation with representatives of Allied Waste, to the City Council on a proposed commercial food waste recycling program. Part of that presentation included a recommendation to return to the Council on November 2, 2010 with a resolution to establish rates for commercial food waste pickup which would result in a 4% decrease in rates for commercial customers to encourage their participation in the program. DISCUSSION Attached you will find a brief overview of the proposed commercial food waste recycling program including issues related to start up, outreach, equipment and routing. In addition, you will find two sheets with the newly established rates. The first includes highlights of the program, while the second is purely rates and compares the new rates with existing rates so you can see where the differences (4% reduction) are targeted. Focus on three rates: the 95 -gallon cart, and the 1.5 and 2.0 -yard containers. For example, a 95 -gallon cart that is collected twice a week goes from $74.54 weekly to $71.55 and the 1.5 -yard container twice a week rate moves from $278.15 to $267.02. Additional savings may be realized by allowing businesses to reduce the size of their remaining commercial non-food waste containers. Page 2 ALTERNATIVES & FISCAL IMPACT There would be a negligible impact in the franchise fee collected by the City. RECOMMENDATION It is recommended that Council adopt Resolution 10-64, establishing commercial food waste collection rates for Allied Waste of Lake Oswego. ATTACHMENTS 1. Overview of commercial food waste program by Allied Waste Services of Lake Oswego 2. New Commercial Food Waste Collection Rates 3. Resolution 10-64 RLewed b D partment Director Fina ce Directgr / 7 Services of Lake Allied Waste (AW) is pleased to introduce a commercial food waste collection program to the City of Lake Oswego. As a leader in solid waste and recycling industry we are excited to offer an additional service to our commercial customers who generate food waste as a part of their business or operation. These customers will now have the opportunity to divert their organic food waste from the traditional landfill bound trash and have it collected separately, at a reduced rate, and sent to Allied Wastes Pacific Region Composting (PRC) facility where it will be processed for reuse. The following is a brief description of the process and planned operations techniques to be employed in the program. Start Up - The program is planned to begin this November. Key to the programs success is a very deliberate outreach and education approach targeting the commercial establishments in the community that AW has been contacted by or determined would be good candidates for food waste recycling. Initially we will limit our outreach and collection efforts to the commercial establishments along the Boones Ferry and Kruse Way corridors. In the interest of sustainability we will be incorporating an existing food waste route from a sister AW division which travels the 1-5 corridor. All customer services and outreach for this program will come from the staff of Allied Waste of Lake Oswego. Outreach — Information will be presented to the customer base in the initial target area to introduce the program and develop interest. AW operations and outreach staff will conduct field visits to the individual establishments who have expressed interest or have been targeted as potential candidates. The field visit will assess the establishments operation, current service level and infrastructure to determine what the best course of action is for the individual location. When a customer decides to begin food waste collections, on site education will be presented by the operations and outreach team of AW to the staff of the participating customer. This effort is essential in mitigating contamination and creating a positive systems change at the customers' site. Equipment — To start we will be utilizing a rear loading truck capable of collecting various roll cart sizes and small 1 — 2 yard containers. We plan to begin most collection applications in 95 gallon roll carts. These will provide a higher degree of flexibility when right sizing the customers' needs. As the program evolves with larger generators, an increased number of containers may become necessary to accommodate the customers' needs. Routing — The current route in operation will provide collections on Tuesday and Friday and will exit 1-5 at Boones Ferry and travel towards Mercantile Village then enter back on 1-5 from Kruse Way. This route will come through the Boones Ferry and Kruse Way corridors very early in the AM. Every effort will be made to keep noise to a minimum and stay away from any residential areas. We anticipate within several months of start up, customer needs and volume will drive the expansion of the route into the remainder of the City. At this point AW will reevaluate what assets are needed for the collection operation and develop routes accordingly. We believe this approach best meets the sustainability goals of the city by limiting under utilized assets upon start up. Again, Allied Waste is pleased and excited to offer a food waste collection option to the commercial waste generators of Lake Oswego. The program has the potential of diverting substantial quantities of waste to reuse that would otherwise be landfill bound, and in many cases save the customer money on their waste collection bill. Combined this is yet another step towards our common goal of environmental and economic sustainability. Services of Lake Oswego New Commercial Food Waste Collection Proposed Food Waste Collection Rates Commercial Food Waste Collection Highlights ❑ Program begins November 2010. ❑ Food Waste collection rates are 4% below existing garbage rates. ❑ Commercial customers have the opportunity to divert their organic food waste from the traditional landfill bound trash. ❑ Food Waste is composted for reuse at Allied Wastes Pacific Region Composting (PRC) facility. ❑ Allied Waste of Lake Oswego provides operations and outreach staff conducts field visits to evaluate and develop plans at individual establishments that have expressed interest or are targeted as potential program candidates. ❑ Allied Waste of Lake Oswego outreach staff will conduct education and training for managers and staff at customer locations. ❑ 95 gallon roll carts, 1.5 and 2 yard containers used in collections. ❑ Participation and volumes will drive program expansion. Services/Week Type Size 1 2 3 4 5 Carts 95g 35.77 71.55 107.32 143.08 - addtl cart 29.33 58.67 88.00 117.33 - 1.50y 138.71 267.02 395.32 523.65 651.97 addtl Container cont 113.74 218.96 324.16 429.39 534.62 2.00y 173.34 336.28 499.21 662.16 825.11 addtl cont 142.14 275.75 409.35 542.97 676.59 Commercial Food Waste Collection Highlights ❑ Program begins November 2010. ❑ Food Waste collection rates are 4% below existing garbage rates. ❑ Commercial customers have the opportunity to divert their organic food waste from the traditional landfill bound trash. ❑ Food Waste is composted for reuse at Allied Wastes Pacific Region Composting (PRC) facility. ❑ Allied Waste of Lake Oswego provides operations and outreach staff conducts field visits to evaluate and develop plans at individual establishments that have expressed interest or are targeted as potential program candidates. ❑ Allied Waste of Lake Oswego outreach staff will conduct education and training for managers and staff at customer locations. ❑ 95 gallon roll carts, 1.5 and 2 yard containers used in collections. ❑ Participation and volumes will drive program expansion. RESOLUTION 10-64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE ESTABLISHMENT OF COMMERCIAL FOOD WASTE COLLECTION RATES FOR ALLIED WASTE OF LAKE OSWEGO WHEREAS, on July 20, 2004, the Lake Oswego City Council adopted Ordinance No. 2391, granting Rossman's Sanitary Service, Inc., now doing business under the assumed business name of Allied Waste of Lake Oswego, hereinafter referred to as "Franchisee", an exclusive franchise to collect solid waste within the City and reserved to the City the right to modify by resolution the schedule of rates, and WHEREAS, the City Council would like to promote the collection of commercial food waste to reduce the impact of garbage on landfills and to promote sustainable practices and the creation of reusable compost, and WHEREAS, LOC 20.10.720 and Ordinance No. 2391 provide that rates charged for solid waste collection may be amended by resolution of the City Council; and WHEREAS, the City Council has given careful consideration to the interests of the public and the Franchisee alike, and concludes that rates for commercial food waste collection should be established at amounts that are four percent less than current standard commercial rates; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego, Oregon that: Effective November 2, 2010, commercial rates for food waste collection shall be as shown on attached Exhibit A for 95 gallon carts and 1.5 and 2.0 yard containers. This Resolution shall be effective upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 2nd day of November, 2010. AYES: NOES: EXCUSED: ABSTAIN: Jack D. Hoffman, Mayor Resolution 10-64 Page 1 of 2 ATTEST: Robyn Christie, City Recorder APPROVED AS T M: David Powell, City Attorney Resolution 10-64 Page 2 of 2 � ALLIED M WASTE New Commercial Food Waste Collection Proposed Food Waste Collection Rates Reference Exhisting commercial rates for standard garbage collections Type Size r-1 ServicesMeek 2 3 ServiceslWeek 5 Type Size 1 2 3 4 5 35g 23.52 47.06 70.57 - - Carts Carts 95g 35.77 71.55 107.32 143.08 - 60g addtl cart 29.33 58.67 88.00 117.33 - 95g 1.50y 138.71 267.02 395.32 523.65 651.97 addtl cont 113.74 218.96 324.16 429.39 534.62 `Container 128.71 245.62 360.29 567.14 579.01 1.50y 2.00y 173.34 336.28 499.21 662.16 825.11 2.00y addt/ cont 142.14 275.75 409.35 542.97 676.59 Reference Exhisting commercial rates for standard garbage collections Type Size r-1 ServicesMeek 2 3 4 5 20g 15.42 - - - - 35g 23.52 47.06 70.57 - - Carts 60g 35.04 70.06 105.06 - - 95g 37.26 74.53 111.79 - - 1.33y 128.71 245.62 360.29 567.14 579.01 1.50y 144.49 278.15 411.79 545.47 679.14 2.00y 180.56 350.29 520.01 689.75 859.49 Container , 3.00y 238.59 459.77 680.94 902.13 1,123.30 4.00y 299.69 581.94 864.20 1,146.46 1,428.74 6.00y 375.77 733.88 1,091.95 1,450.05 1,808.14 LAKE OSWEGO Centennia11910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: Jane McGarvin, Deputy City Recorder SUBJECT: Planning Commission Appointments DATE: October 28, 2010 ACTION Adopt Resolution 10-66, making appointments to the Planning Commission. BACKGROUND 4-1.2.2, CITY OF LAKE OSWEGO 380 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us The City Council Interview Committee consisting of Councilors Tierney and Jordan, and Julia Glisson, Vice - Chair of the Planning Commission, interviewed candidates on June 12 and 14, 2010. At the conclusion of the June 14 deliberation, the recommendation was to re -appoint Russell Jones for a four year term ending May 31, 2014, and to continue recruitment for additional applicants. The City Council Interview Committee consisting of Councilors Tierney and Moncrieff, and Julia Glisson, Vice -Chair of the Planning Commission, interviewed additional candidates on October 27, 2010. The Committee recommends that Puja Bhutani be appointed to the Planning Commission for a four-year term ending May 31, 2014; to appoint Todd Prager to the remainder of a term ending May 31, 2011; and to designate Ryan Flynn as alternate to be appointed should there be a vacancy due to attrition through April 30, 2011. 1. Resolution 10-66. Reviewed by Alex D. Mclnt City Manager RESOLUTION 10-66 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO APPROVING APPOINTMENTS TO THE PLANNING COMMISSION WHEREAS, a City Council Interview Committee, consisting of Councilors Tierney and Jordan, and Julia Glisson, Vice -Chair of the Planning Commission, met on June 12 and 14, 2010, to interview candidates for the Planning Commission; and WHEREAS, on September 7, 2010, the Council reappointed Russell Jones to a four year term ending May 31, 2014, and further directed that recruitment be continued for additional applicants, and WHEREAS, a City Council Interview Committee, consisting of Councilors Tierney and Moncrieff, and Julia Glisson, Vice -Chair of the Planning Commission, met on October 27, 2010, to interview additional candidates for the Planning Commission; and WHEREAS, it was the consensus of the Interview Committee to recommend that Puja Bhutani be appointed to the Planning Commission for a four-year term ending May 31, 2014, that Todd Prager be appointed to the Planning Commission for the remainder of a four year term ending May 31, 2011; and that Ryan Flynn be appointed as alternate to the Planning Commission should there be a vacancy through April 30, 2011, and WHEREAS, the Mayor has made the appointment recommended by the Interview Committee; NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lake Oswego approves the appointment of Puja Bhutani to the Planning Commission for a four-year term ending May 31, 2014; that Todd Prager be appointed to the Planning Commission for the remainder of a four-year term ending May 31, 2011; and approves the appoint of Ryan Flynn as alternate on the Planning Commission should there be vacancies through April 30, 2011. This resolution shall take effect upon passage. Approved and adopted by the City Council of the City of Lake Oswego at a regular meeting held on the 2nd day of November, 2010. AYES: NOES: ABSTAIN: EXCUSED: Jack D. Hoffman, Mayor ATTEST: Robyn Christie, City Recorder AP �VED ACTO O t1 \ YDavid Powell, pity Attorney LAKE OSWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: Robyn Christie, City Recorder City Manager's Office SUBJECT: Approval of Meeting Minutes DATE: October 21, 2010 ACTION Approve minutes as written. ATTACHMENTS • March 23, 2010, regular meeting • June 22, 2010, special meeting • June 23, 2010, special meeting • September 28, 2010, special meeting Reviewed by: Alex D. M clnt City Manager /,/.3 CITY OF LAKE OSWEGO 380 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us LkK[.(NIA Lik) CITY COUNCIL REGULAR MEETING MINUTES March 23, 2010 Mayor Jack Hoffman called the regular City Council meeting to order at 6:38 p.m. on March 23, 2010, in the City Council Chambers, 380 A Avenue. Present: Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff (7:47 by phone), Tierney, and Jordan Staff Present: Alex McIntyre, City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Brant Williams, Director of Economic and Capital Development; Denise Frisbee, Planning and Building Director; Christine Kirk, Public Affairs Manager; Brad Stein, Management Analyst 3. PRESENTATIONS 3.1 WaterAfrica Proclamation Linda Favero, 5831 Ridgetop Court, and Bill Savage, 4804 Heritage Lane, were present Ms. Favero indicated that WaterAfrica was a small non-profit that started last fall. She expressed their appreciation for the Council's support of the Walk for Water as a community effort. She explained that the people of Zambia considered this sort of formal procedure as a great honor. She described their trip to Zambia in October 2008, mentioning in particular a woman walking six to eight hours a day to obtain contaminated water that she knew would only make her children worse (they were already ill from water -borne illnesses), but she had no alternative. She reported that the one well (purchased by WaterAfrica and serving 800 people in a village) has cut the mortality rate in half. In addition, children were back in school and the villagers could grow crops for consumption and sale. She mentioned that a number of Lake Oswego businesses were sponsoring this third year of the Walk for Water, through which they hoped to raise $24,000 to fund two more wells and sanitation education in Zambia. She described the simulation walk that would begin in Foothills Park this year, walk to collect water from the lake, and return. She said that visitors from Zambia would be present, as well as a water specialist from World Vision. She invited the Council to send someone to make comments at the event. She closed with a quote from President Obama's inaugural speech regarding working with other nations. She indicated to Mayor Hoffman that the walk began at 9 a.m. on Saturday, April 17. Mayor Hoffman indicated that someone from the City Council would read the proclamation at the event. Mayor Hoffman proclaimed Saturday, April 17, 2010, as WaterAfrica Day in Lake Oswego. Councilor Hennagin applauded their work. He mentioned that he had been in Tanzania in October 2008 on behalf of Africa Bridge, which also tried to bring water to villages. He suggested that WaterAfrica, Africa Bridge, and Pennies for Kenya (since all three were headquartered in Lake Oswego or West Linn) get together under one administrative office for greater effectiveness. Mr. Savage commented that Councilor Hennagin's point was well taken. 3.2 Streetcar Update Mr. Williams introduced Karen Withrow, Metro Public Involvement Manager, who was a key individual working on the Lake Oswego to Portland transit project. He commented that the project City Council Regular Meeting Minutes Page 1 of 11 March 23, 2010 team members and consultants have accomplished a great deal this past year in coming together to work on the different alternatives. He gave a PowerPoint presentation. He presented a list of the various agencies involved in this project to improve the transit capacity on Hwy 43 between Lake Oswego and Portland. He noted that they were in the middle of the Draft Environmental Impact Statement (DEIS) and looking at the three proposed alternatives: no build, enhanced bus service, and streetcar. He explained that the streetcar alternative was an extension of the Portland Streetcar south from downtown Portland. He reviewed its current route loop from northwest Portland, through the Pearl District, downtown Portland, PSU, and River place, ending at the South Waterfront. He commented that the intent was to provide a seamless extension of this first modern (and very successful) streetcar system in the U.S. from the South Waterfront to Lake Oswego. He stated that the Portland to Lake Oswego segment was not a separate line from the Portland Streetcar. He reviewed the three alternatives. He described the benefits of the enhanced bus service, including improved travel times with a reduced number of stops, more frequent bus service, and park and rides. He indicated that the benefits of the streetcar were its greater reliability (it operated on its own alignment — the Willamette Shoreline) and the development potential it offered in Foothills, downtown Lake Oswego, and Portland. He described a third benefit of the streetcar related to project funding. The Consortium could use the much increased value of the Willamette Shoreline right-of-way (from $2 million at the time of purchase) to offset the local match. He explained that the no build alternative maintained the existing transit services and facilities, and looked at the modest improvements that would occur over time without enhanced bus or streetcar. He explained that the NEEPA Act required a no build alternative, which the project team used as a baseline of comparison for the other two alternatives. He mentioned the issues considered in the DEIS, including all the human and natural environmental impacts of each of the alternatives, the benefits, the costs, and the funding sources. He explained that the DEIS would not be ready for public review until after the Federal Transit Administration (FTA) approved it. He indicated that they had different design alternatives for the streetcar alternative, as it was more complex than the other two alternatives. He mentioned that Ms. Withrow has met with LONAC and neighborhood associations to present this information. Ms. Withrow presented a graphic showing the routes through the six -mile corridor for the enhanced bus and streetcar alternatives. She noted that the enhanced bus would keep the current Lake Oswego downtown loop with stops at Safeway and ending at Albertson's. She presented the five streetcar design options. She mentioned that design options A, C, and E were associated with other projects going on in the area, while options B and D showed alignments close to residences. She indicated what the streetcar alignment would look like if the City of Portland extended the Moody and Bond couplet in the South Waterfront, and if it did not (Option A). She described the three alignment alternatives in the John's Landing area (Option B). She commented that staff was also looking at the impact on the streetcar of the west interchange phase of the Sellwood Bridge project, both if that phase went through and if it did not (Option C). She noted the alignment of the streetcar line in the Riverdale area on Riverwood Road, as suggested by the neighbors (Option D). She presented the two possible alignments in the Foothills District (Option E), with one running adjacent to the freight rail line and one running through a new right-of-way, and both ending at the Albertson's 300 -space park and ride. . She explained that the DEIS was the FTA's document, and they could not present it for public review until the FTA gave permission to do so. She anticipated the 45 -day public review period beginning in mid-August. She indicated that staff would summarize the public comment received City Council Regular Meeting Minutes Page 2 of 11 March 23, 2010 during that outreach (including at the public hearing) into a report for the Steering Committee. She described the decision-making process on the locally preferred alternative (LPA), beginning with separate recommendations to the Steering Committee by the project management group and the Citizen Advisory Committee (CAC), the Steering Committee recommendation, the local jurisdictions' approval, and final approval by the Metro Council. She reviewed the schedule, noting that the decision-making on the LPA would occur in the fall. She anticipated preliminary engineering and the final environmental impact statement in 2011, followed by a full funding grant agreement, final engineering, and construction. She noted the target operation date of 2016. Mr. Williams discussed the issues recently raised regarding the streetcar. He reported that the project was on budget for the first cost component of the current staff work and the loan to TriMet. He explained that the DEIS evaluated the other two cost components of construction costs and operating costs. He indicated that the $350 million estimate represented the value of the project more than it did the actual cost. In addition to including the construction, design, and vehicle purchase costs, it included the value of the right-of-way. He noted that the most recent appraisal of the Willamette Shoreline right-of-way returned a value in the $80 million to $100 million range. He mentioned staff's hope to have more accurate numbers on the capital side this summer, developed as part of the DEIS. He noted the assumption that TriMet would take care of the operating costs of both the enhanced bus service and the streetcar. Staff was working on those numbers for inclusion in the DEIS. He referenced the concern about how Lake Oswego would pay for its share of funding the project. He reiterated that the Willamette Shoreline right-of-way would make up most of the local match; staff was working on how to allocate the remainder of the local match appropriately to the participating jurisdictions. He mentioned their working assumption that the development in the Foothills area and continued redevelopment in the Downtown would cover almost the entire cost assigned to the City of Lake Oswego. He said that he was developing alternatives for Council on the numbers. He discussed the transfers question. He pointed out that transfers depended on where one was coming from and where one was going to. He indicated that the project was taking a look at how transfers would occur with the two different alternatives in comparison with the existing service from the #35 bus. He reported that staff's initial look at the issue found that the two alternatives covered most of the Portland downtown entertainment and employment areas. He noted that the benefit of the streetcar was its extension into the Pearl District and NW Portland. Ms. Withrow described the proposed extension of the streetcar across the Willamette River over the Broadway Bridge and down to OMSI. She mentioned that Metro was still looking for funding to complete the piece from OMSI across the proposed Milwaukie Bridge and into the South Waterfront. Mr. Williams reported that staff met with the affected neighborhood associations (Lakewood, Old Town, and Evergreen). The neighborhoods' concerns focused on the park and ride, its structure, and its impact on traffic and parking in the neighborhoods. He indicated that the City had the means to minimize any impacts. He said that staff would check with the neighborhoods to see that the park and ride structure design worked well for them and minimized, if not eliminated, neighborhood impacts. He reviewed the membership of the nine -member volunteer Citizen Action Committee, chaired by Ellie McPeak with representatives from the neighborhoods and business community. He mentioned the upcoming Council tour of the streetcar alignment in May City Council Regular Meeting Minutes Page 3 of 11 March 23, 2010 COUNCIL QUESTIONS Ms. Withrow confirmed to Councilor Hennagin that Union Pacific retained ownership of the railroad freight line right-of-way and leased it to Western Pacific. Councilor Olson referenced the articles in the press lately reporting that the WES rider ship was less than expected, and that the federal government has been skeptical of TriMet's rider ship projections in the past. She asked if staff has revisited its rider ship projections for the streetcar. Mr. Williams reported that he checked with the Metro staff that did these projections, and obtained a list of the projected and actual rider ship figures for opening day on several regional projects. He indicated that they did not know why the WES projections were off, but the projections for other projects in the region have been impressively almost right on. He explained that, in the aggregate, the projections were 3% low, although that did not include the Portland streetcar, which saw higher opening day rider ship than projected. He stated that, given this data, he felt comfortable that Metro's forecasting was some of the best in the country. Councilor Jordan asked whether the comparison costs of the alternatives in the DEIS (Draft Environmental Impact Statement) included the differences between the streetcar running on electricity and the enhanced bus service running on gas (or an alternate non -electric fuel) and causing wear and tear on the asphalt. Ms. Withrow indicated that she was not certain how detailed the greenhouse gases analysis in the DEIS Energy section was, or whether it calculated the cost difference between the alternatives. She commented that the process was still catching up with respect to greenhouse gas scenarios, but there were plans to figure more detail on that factor into the analyses for future high capacity transit corridors. Ms. Withrow concurred with Councilor Jordan that they decided the alignment to Portland and the mode before they did the design and engineering. They also did not yet know how it would connect to Lake Oswego's downtown and Foothills. She explained that at this point they used a 5% design to evaluate the alternatives and alignments; that percentage would increase as they moved forward. Ms. Withrow clarified to Councilor Tierney that, once the jurisdictions submitted the locally preferred alternative (LPA), they began a separate funding approval process, in which they typically asked for 60% of the estimated costs. She indicated that this was a competitive process for federal discretionary money allocated for transit. She said that the federal funds were not guaranteed, although Portland has consistently received money (60% minimum) in the past for all its projects. Councilor Tierney commented that, given his education on development issues since being on the Council, he was trying to rationalize a 300 -stall public parking garage in a transit -oriented development (TOD) as a way to improve the community and generate higher property values. Mr. Williams indicated that staff was aware of the concerns of providing up to 400 parking stalls in the area, and intended to spend more time looking at the issue. He noted the other concerns that not providing parking at the streetcar terminus would impact the neighborhoods. He mentioned that the Council would likely have some policy choices to consider, given the desire to minimize the number of stalls in the corridor. Mr. Williams explained that the federal funding criteria has changed since they began this project; it now included development, development potential, and livability issues, instead of relying solely on rider ship projections. He emphasized the need to do more work in minimizing the impacts to the City's street system and its neighborhoods. Mayor Hoffman suggested scheduling another study session to answer additional questions 3.3 Centennial Moment Due to time constraints, Mayor Hoffman set this item aside. City Council Regular Meeting Minutes Page 4 of 11 March 23, 2010 4. CONSENT AGENDA Councilor Hennagin moved the Consent Agenda. Councilor Johnson seconded the motion. A roll call vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Tierney, and Jordan voting "aye." [6-0] 4.1 APPROVAL OF MINUTES 4.1.1 October 20, 2009, regular meeting 4.1.2 November 17, 2009, regular meeting Action: Approve minutes as written END CONSENT AGENDA 5. ITEMS REMOVED FROM THE CONSENT AGENDA 6. CITIZEN COMMENT • Kirk Smith He explained that he was bringing this parking problem in his neighborhood to the Council because he was having problems with the Planning Department regarding enforcing the condition of approval on LU 08-0028. He explained that the condition required the contractor submit a construction management traffic plan to the Engineering Division for review and approval, which specially addressed parking for construction workers on Springbrook Court and adjacent streets. He indicated that the contractor did not submit this plan, as he has informed Ms. Frisbee, the City Attorney, the Mayor, and a Councilor. He mentioned the e-mail he received from Ms. Frisbee, telling him that one of the conditions of approval required the applicants to inform the Engineering Services Division on how they would manage traffic during construction. He stated that that was not what the order or the condition of approval said. He indicated that he was coming to his elected representatives because he has been rebuffed by the Planning Department. He explained that there were two issues: there was no construction traffic management plan in place, and the contractor took down the City's No Parking signs, which he understood was an illegal act. He alleged that the contractor took down the signs preventing parking next to the job site because his workers were lazy. He recounted his efforts to talk to the contractor, which have not been successful. He mentioned calling the police, who would cite any vehicle parked too close to the intersection as being in a life safety lane. He reiterated that the contractor's workers claimed that they could park next to the job site because nothing said that they could not park there. However, that was because the contractor pulled the signs down. He explained that he got upset at the workers' blocking the life safety corridor because a neighbor was a quadriplegic and needed access to paramedics and ambulances. If a truck blocked the life safety area, then the paramedics could not get into the neighborhood. Mayor Hoffman directed Mr. Smith to talk to Denise Frisbee, Planning and Building Director, and David Powell, City Attorney. Councilor Olson asked staff to inform the Council of the resolution of this situation, especially the taking down of City signs. Mr. Powell indicated that he did not know much about the facts in this case, but it was true that removing City signs was not legal. Ms. Frisbee reported on her investigation into Mr. Smith's concerns. She explained that, according to the City Attorney, the requirement for a traffic construction management plan was triggered when the contractor intended to use part of the City right-of-way to park trucks, etc. Since the contractor indicated in this case that he did not intend to do so, staff required no formal City Council Regular Meeting Minutes Page 5 of 11 March 23, 2010 plan. She mentioned that the City Attorney's Office has confirmed that the documentation submitted by the contractor did satisfy the requirement for a construction management plan. She held that the problem was not with Planning, but rather it was an issue of enforcement. She indicated that Nancy Flye in Traffic Services was working with Lt. Scott Thran to resolve this issue. • R.A. Fontes, 310 Second Street He read from his prepared testimony. He addressed the issue of streetcar travel times. He argued that the projected streetcar travel times in combination with the proposed alignment would add half an hour to round trips. He described Metro's numbers as pessimistic and not supported by hard data. He spoke to setting as a minimum threshold that a project not make transit worse. He stated his belief that the streetcar had `juggernaut' status. He supported keeping the current bus as it was or as an express. • Charles Ormsby, 170 SW Birdshill Road, Clackamas County He described the streetcar as a series of shell games generating many concerns. He asked what the Council defined as `downtown Portland.' He referenced Metro's Streetcar Report (July 12, 2007) that used PSU as the target in Table 5.1. He commented that his target was Pioneer Courthouse Square, the intersection of the four light rail lines. He indicated that the target of the streetcar riders from Lake Oswego was the Multnomah County Central Library, five blocks away from Pioneer Courthouse Square. He encouraged the Council to try to get from the PSU Urban Center to the Portland City Hall in a wheelchair, which route had roughly a 6% grade. He asked the Council to define by resolution what constituted `downtown Portland' and what the target area was. He indicated that he would keep asking his questions, including those sent by e-mail, until he got some answers. Mayor Hoffman recessed the meeting at 7:45 p.m. to coordinate the phone hook-up with Councilor Moncrieff. He reconvened the meeting at 7:47 p.m. Councilor Moncrieff joined the meeting at this time. 7. PUBLIC HEARINGS 7.1 Street Maintenance Fee Discussion Resolution 10-19, a resolution of the Lake Oswego City Council adjusting Street Maintenance Fee rates Resolution 10-20, a resolution of the Lake Oswego City Council establishing annual indexing of Street Maintenance Fee rates STAFF REPORT Ms. Kirk recalled that previously staff presented to Council the funding methodology for the street maintenance fee, the public engagement process, and the need to increase revenues in order to keep the streets in good shape. She mentioned the request, based on feedback and Council action, to phase the fee in over three years (25%, 35%, and 40%). She noted that this represented increasing the investment in the roads by $1.2 million over the three years. She indicated that the first resolution related to phasing in the increase, and the second related to indexing the street maintenance fee. PUBLIC TESTIMONY Mayor Hoffman opened the public hearing. He reviewed the testimony time limits and order. • Jerry Wheeler, 13594 Blazer Trail, Lake Oswego Chamber of Commerce Chief Executive Officer City Council Regular Meeting Minutes Page 6 of 11 March 23, 2010 He read from his prepared testimony. He reported that the Board of Directors' vote to approve a resolution in support of the proposed street maintenance fee increases was far from unanimous (13 -7-1 with three members out of town). He read the resolution. He mentioned the discussion of indexing the fee for inflation. He indicated that the Chamber supported maintaining the streets. He spoke of the Chamber's concern that doubling the fee was not acceptable in the current economic situation, noting the City's acceptance of their request to phase the fee in. He mentioned the Board's continuing concern regarding not using reserves to reduce the fee increase. Mayor Hoffman closed the public hearing. QUESTIONS OF STAFF Ms. Kirk confirmed to Councilor Olson that Chart 3 (p.49) indicated that, if the City had indexed the fee last year, the indexing beginning in July would have decreased the fee. Mr. McIntyre pointed out that the indices went up and down, and the Engineering News -Record index happened to go down. Councilor Jordan pointed out that not keeping up with City street maintenance would ultimately lead to higher costs impacting the residents for street maintenance. She spoke in support of indexing the fee in order to make sure that the City did the projects needing doing every year, and that they did not fall behind again on street maintenance. She commented that once the City got the PCI (Pavement Condition Index) back up to a 70 average, then maintaining the streets to that level would be less expensive. Mr. McIntyre indicated to Councilor Tierney that the Council could `collar' the index to prevent it from going too high or too low, similar to the 'collar' on labor contracts. Ms. Kirk mentioned that the City of Tigard collared its index at 2% and 7% to prevent both a large decrease and a large increase, which she said was a reasonable range. Mr. Powell indicated to Councilor Tierney that he could easily add language to the resolution to collar the rate, should the Council decide to amend the resolution. COUNCIL DISCUSSION Councilor Hennagin observed that there was no doubt that the City's current revenues from gas taxes or franchise fees were insufficient to maintain the streets. He cited Hemlock Street from Cornell to Freepons Park as an example of the many streets in the city that needed reconstruction. He mentioned his concern about asphalt costs rising astronomically again. He said that he was impressed that two out of three members of the Chamber's Government Affairs Committee supported a phased in increase to the fee. He commented that, while he hated to keep raising fees, the City's number one job was to maintain the infrastructure, and they needed to pay for it. He said that he was still constitutionally opposed to indexing. He expressed his preference to wait on the indexing until after completing the three year phase in. Therefore, he would vote against the indexing. Mayor Hoffman indicated to Councilor Hennagin that Cornelius got under the wire for raising its gas tax to fund street maintenance. Councilor Jordan mentioned that the State legislature shut out that option last year. Mayor Hoffman referenced an article sent by Craig Stevens discussing considerations for a street maintenance fee. Councilor Olson mentioned that she would like to hear the City Engineer's response to that article. She seconded Councilor Hennagin's reluctance to index the fee. She commented that she saw value in discussing the fee yearly or biannually in case the Council decided to change funding sources or the PCI target. Councilor Johnson moved Resolution 10-19, a resolution of the Lake Oswego City Council adjusting Street Maintenance Fee rates. Councilor Jordan seconded the motion. City Council Regular Meeting Minutes Page 7 of 11 March 23, 2010 Councilor Moncrieff concurred with Councilor Jordan's comments. She indicated that, in light of the current economic strains on the City's business and residential customers, she supported phasing in the increasing over three years. Councilor Johnson commented that if they were going to have a street maintenance fee in the city, then they needed to do it right, which meant passing this resolution. She spoke to getting the City back on track and adjusting the fee to achieve the Council goals. She suggested that looking at how to alleviate the fee in the future, possibly using general fund monies, should be another goal. Councilor Tierney recalled that he has supported a number of fee increases for a variety of City infrastructure and services, as they did need infrastructure. He commented that he would challenge the City Manager's budget presentation and look at infrastructure over other possible expenditures. He held that today was not the time to increase this fee by this magnitude. He stated that he would not support the resolution. Councilor Jordan commented that, while she understood the difficulties that increasing this fee would have on Lake Oswego residents and businesses, she thought that the citizens would not respond well to the question of what they would take away from other services in order to have good roads. She observed that the residents moved here for all the services, and it was difficult to separate one out from the other as more important. She remarked that she did not believe passing this increase now prevented the Council from revisiting it in the future. She cited the interest in pathways and bike paths that this fee did not cover currently. She argued that not to pass this fee increase at this point would get the City so far behind on street maintenance that people would start to complain about the quality of the City streets. She held that the residents were willing to pay for something that they knew they needed. Mayor Hoffman stated that he would support the motion. He commented that he did not like raising fees either in these economic times, yet it was necessary in order to take care of the City's road system, as John Pullen has consistently advocated. He argued that a strong infrastructure made for a strong community, maintained property values, and helped with economic development. A roll call vote was taken, and the motion passed with Mayor Hoffman, Councilors Johnson, Hennagin, Moncrieff, and Jordan voting "aye." Councilors Olson and Tierney voted "no." [5-2] Councilor Johnson moved Resolution 10-20, a resolution of the Lake Oswego City Council establishing annual indexing of Street Maintenance Fee rates. Councilor Moncrieff seconded the motion. Councilor Johnson commented that one of the reasons the Council was having this discussion was because the previous Councils did not index the fee in the first place. She argued that if they had a fee, then they should index it. She spoke to getting the base right, which then allowed future Councils consider creative ways to help people in these tough economic times. Councilor Tierney asked staff why they selected the Engineering News -Record 20 city average construction cost index. Mr. McIntyre explained that staff recommended using this index originally because engineers used it to index a variety of other services. He described it as a reasonable and comfortable index to use, similar to using the CPI for labor market adjustments. He indicated that he was not qualified to answer the question of why this index went down this year when everything else was going up. Councilor Tierney moved to amend the resolution to establish a `collar,' that "in no event, shall the annual index adjustment be less than a 2% increase or more than a 7% increase." Councilor Jordan seconded the motion. Councilor Johnson indicated that she would take the motion as a friendly amendment to her motion. Councilor Moncrieff concurred. City Council Regular Meeting Minutes Page 8 of 11 March 23, 2010 A roll call vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Moncrieff, Tierney, and Jordan voting "aye." Councilors Hennagin and Olson voted "no." [5-2] Councilor Moncrieff left the meeting via the phone connection. Mayor Hoffman recessed the meeting for a break at 8:14 p.m. He reconvened the meeting at 8:15 p.m. 8. REPORTS 8.1 Resolution 10-21, adopting the Natural Hazards Mitigation Plan (NHMP) Addendum Mr. McIntyre introduced Brad Stein, Management Analyst, who joined the City staff to head up the emergency management and risk management work. Mr. Stein explained that the federal government required jurisdictions to revise and update their Natural Hazards Mitigation Plans (NHMP) for submittal to FEMA and pre -approval prior to the Councils adopting it. He indicated that this addendum summarized and captured all the potential natural hazards that could adversely impact the City, its residents, and the property within. He said that its adoption qualified the City to request pre -disaster mitigation funds for projects to counter natural hazards, and to seek federal reimbursement after a natural hazard event occurred. He mentioned funding for flood assistance mitigation programs and projects also. He noted that the addendum included updated census information for Lake Oswego and updated local hazard maps. He recommended adoption of the addendum. Councilor Olson thanked Mr. Stein for a good report that she found helpful and informative. Councilor Jordan moved Resolution 10-21, a resolution of the Lake Oswego City Council adopting the City of Lake Oswego addendum to the Clackamas County Natural Hazards Mitigation Plan. Councilor Olson seconded the motion. A roll call vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Tierney, and Jordan voting "aye." [6-0] 9. INFORMATION FROM THE COUNCIL 9.1 Councilor Information 9.1.1 Councilor Jordan Councilor Jordan reported that the voluntary watershed walk sponsored by the Friends of Tryon Creek, which she took with a group of school children from Palisades Elementary School last week, had been a great learning experience. She encouraged the Council members to participate in one. She suggested that, at a future meeting, the Council consider reducing the number of members on the 50 plus Advisory Board from nine to seven, which was the normal number for Advisory Boards. She indicated to Councilor Olson that the effort to combine the former Adult Community Center Advisory Board with this new Board, following the 50 plus dialogs, probably contributed to the larger number of members. 9.1.2 Announcements -- Mayor Hoffman • Council tour of housing types in the greater Metro region — Sunday, May 2 • Neighbors Helping Neighbors -- May 1 • Proposed Streetcar tour — May 6 • Clackamas Cities Dinner — this Thursday night • Stafford discussion — March 30 City Council Regular Meeting Minutes Page 9 of 11 March 23, 2010 Mayor Hoffman indicated that the discussion would focus on whether Lake Oswego should join West Linn and assist with their pre -litigation evaluation and examination of Metro's decision with respect to Stafford. Mayor Hoffman reported on his meeting with 25 to 35 citizens at Chuck's Coffee Shop on Saturday for one and a half hours. He said that he listened to their concerns and tried to address questions. He mentioned that Councilor Olson was also there. He reported that the Historic Resources Advisory Board, Councilor Olson, Mr. McIntyre, and he looked at the Stone Bridge on Poplar Lane, an historic bridge built in the 1880s. He mentioned that Carolyne Jones had more information about it. He noted that the Council would begin its review of the Comprehensive Plan next week because of its relevance to the budget, the sensitive lands issue, and Stafford. 9.1.3 State Statute impacting the Joint Water Project Mayor Hoffman informed the Council that an issue has come up that affected the Joint Water Project. Mr. Powell explained that the Department of State Lands (DSL) used to allow developers of linear-type utilities to apply for a wetlands mitigation evaluation permit before going on a property just to see if they could get the permit. He said that a recent Attorney General's opinion interpreted the statute very literally in requiring the permit applicant either to own the property or to have the property owner's consent before making application. Mr. Powell noted the concern of municipalities that they would have to expend taxpayer resources on a property before they even knew if they needed the property for a project. Mayor Hoffman described how this affected the Joint Water Project, in that they were still deciding on the exact land route; having to do wetlands mitigation on a given property could direct the route to another property not requiring that mitigation. They did not want to have to buy a property before they knew whether they needed it or not. Mr. Powell mentioned that Mr. Komarek did a white paper on this issue from the municipal perspective at the request of the League of Oregon Cities. He noted that this issue also tied into the liquid natural gas efforts, which politicized the issue and made it controversial. He indicated that the City's proposal in the white paper was to fix the problem for municipalities in order to avoid expending taxpayer money acquiring interest in properties just to file an application unnecessarily. The Council indicated by consensus that it had no objection to staff moving forward on getting this issue cleared up for municipalities. 9.2 Reports of Council Committees, Organizational Committees, and Intergovernmental Committees 9.2.1 National League of Cities Conference Councilor Tierney mentioned that an article he read on variables important to housing in the future cited Gaithersburg, MD, as an example. Consequently, he, Mr. McIntyre, and Ms. Kirk toured Gaithersburg while at the conference under the guidance of Trudy Schwartz, the Gaithersburg Planning Director. He indicated that Gaithersburg had a number of projects from the late 1980s into the 1990s centered around New Urbanism, such as Kentlands and Lakelands. He referenced the booklet that he had distributed recounting the development of Gaithersburg in the New Urbanism model but without transit -oriented development, as it was the last stop on the Red Line in the Washington, D.C. Metro area. He read the characteristics of a New Urban community, as exemplified by the various projects in Gaithersburg. He mentioned that both he and Ms. Kirk had concluded that this was a comfortable, if not inexpensive, place to live. He presented several photos that Ms. Kirk took during the tour illustrating the housing types, alley ways, parks, and streets in Kentlands and Lakelands. He noted City Council Regular Meeting Minutes Page 10 of 11 March 23, 2010 that Ms. Schwartz confirmed that everything, including businesses, was within one-quarter mile of housing. Ms. Kirk mentioned that the walkaway for her was the neighborhood feel that the project achieved. She described how the retail shops with housing above in the photo had a Whole Foods parking lot on their backside, which was a creative way to put commerce opportunities within the living areas yet mask the big box store and parking lot from the community. Councilor Tierney presented a map showing the form zoning. He described the complementary relationship of the walkable Main Street with its little retail shops and restaurants to the big box shopping centers. He indicated to Mayor Hoffman that light rail was 10 miles away. Ms. Kirk mentioned the City's plans to put in a commuter rail through the area. Councilor Tierney showed examples of parks, historic facilities, white picket fences, alleys, and garages. He mentioned that a number of the garages required maneuvering the car in order to get into them. He reported that they and Chris, the Capital Edge staffer, visited the Oregon Senators' offices and Congressman Schrader's office on Monday to meet with staff and to discuss Lake Oswego's investment in its water and sewer systems and the need for federal funding for the streetcar. Mr. McIntyre indicated that he and Ms. Kirk met with Senators Wyden and Merkley on Tuesday after the Oregon delegation returned from Oregon. Mayor Hoffman said that he met with Senator Merkley and Congressman Schrader. He commented that the staff was very important, which was why he wanted to invite the local staff of the Oregon delegation to go on the streetcar tour. It provided another opportunity to talk about the sewer and Foothills. Councilor Tierney noted that the staffers all knew about Lake Oswego and its projects, which was a testimony to the legwork done by the Mayor and others, including Capital Edge. Councilor Tierney reported that the First Tier Suburbs Committee meeting was excellent with many discussions from both a practical and an academic perspective on what was going on in the suburbs. He indicated that this year's agenda would look at housing that appealed to people as the demographics and needs changed. He mentioned the interest in more traditional First Tier suburbs. He spoke of attending the Garland, TX, meeting, if possible. Mayor Hoffman mentioned that he would take an acquaintance of Councilor Moncrieff's, a planner/architect who would be part of the Public Library Association Conference, on a tour of Lake Oswego this Saturday. He invited the Councilors to join them. 10. REPORTS OF OFFICERS 10.1 City Manager 10.1.1 Review of Council Schedule 10.2 City Attorney 11. ADJOURNMENT Mayor Hoffman adjourned the meeting at 8:52 p.m. APPROVED BY THE CITY COUNCIL ON November 2, 2010 Jack D. Hoffman, Mayor Respectfully submitted, � rZ4 fvw Robyn Christie City Recorder City Council Regular Meeting Minutes Page 11 of 11 March 23, 2010 LiKI IINA I(AI CITY COUNCIL SPECIAL MEETING MINUTES June 22, 2010 Mayor Jack Hoffman called the special City Council meeting to order at 6:37 p.m. on June 22, 2010, in the City Council Chambers, 380 A Avenue. Present: Mayor Hoffman, Councilors Johnson (6:38 p.m.), Hennagin, Olson, Moncrieff, Tierney, and Jordan. Staff Present: Alex McIntyre, City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Denise Frisbee, Planning & Building Director; Morgan Holen, Asst Natural Resources Planner; Jonna Papaefthimiou, Natural Resources Planner 2nd Look Task Force Members: Jim Owens, Facilitator; Andy Harris, Greg McMurray, Todd Praeger, Amin Wahab, Cap Hedges, Ken Sandblast, Nancy Gronowski 3. STUDY SESSION 3.1 Planning Director Report on Second Look Task Force Report Mayor Hoffman welcomed everyone to the first study session on the presentation of the Second Look Task Force recommendations, following the Task Force's eight months review of the City's Sensitive Lands program. He thanked each Task Force member personally for all their time and effort, as well as their thoughtful deliberations during their meetings. He reviewed the schedule for the Task Force presentation and Council listening sessions. He explained the ground rules for tonight's meeting, noting that this was a Council study session with no public comment. He discussed the various ways in which the public could comment on the recommendations. STAFF REPORT Ms. Frisbee recalled that it was almost a year ago in July that the City, in light of the community concerns and questions, decided that it needed to review the Sensitive Lands program. She thanked the Task Force members for their tremendous service in conducting that review and in making findings and recommendations to improve the City's Sensitive Lands program. She reviewed the regulatory history and requirements underpinning the Lake Oswego Sensitive Lands program. She mentioned Statewide Land Use Planning Goals (mid-1970s) that required local governments to adopt programs to protect natural resources (Goal 5) and to protect stream corridors for water quality (Goal 6). She cited OAR 660 as spelling out the Goal 5 process in detail. She mentioned Section 4 of the Lake Oswego Comprehensive Plan (adopted in the mid- 1990s) as reflecting these same ambitions in its directives to "protect, restore, and maintain the stream corridors to maintain water quality," and "to protect, enhance, and maintain the wooded character and natural features of Lake Oswego that are prized by its citizens." She reviewed the history of the Sensitive Lands program in Lake Oswego (p.2), including the mapping begun after Metro's adoption of Title 3 in 1997 required cities to do so as part of implementing Goal 6. She emphasized that Metro's Title 3 required all cities within the Metro region to map stream and/or riparian areas and to protect them through the application of buffers and development restrictions. City Council Special Meeting Minutes Page 1 of 18 June 22, 2010 She indicated that, while Metro provided a model code approach for Title 3 compliance, it also allowed jurisdictions to tailor programs to match their community values. She explained that Lake Oswego's custom program chose to protect both riparian areas/stream corridors and tree groves. She reiterated that the Comprehensive Land directive to protect the wooded character of Lake Oswego was the impetus behind the protection of tree groves in the City's Sensitive Lands program. She discussed the Sensitive Lands program elements. She mentioned the Resource Conservation (RC) overlay for tree grove protection and the Resource Protection (RP) overlay for riparian and stream corridor protections, both of which applied to mapped properties included in the inventory. She indicated that the inventory included approximately 1,400 lots with some designation of sensitive lands; 1,000 of those were single family tax lots, or 7% of the city's individually owned residential properties. She commented that sensitive land designation on nearly 90% of the 1,000 lots involved only a portion of the property; however, the resources on the remaining lots covered 75% or more of the property. She said that the Task Force considered the different impacts on these two distinct groups. She referenced a data analysis prepared by Ms. Holen that provided a clearer picture of the properties impacted by the mapping and regulations. She spoke of the City's map update in the mid 2000s, which identified an additional 150 properties that staff believed should be added to the inventory. She pointed out that these properties have not yet been included on the maps. She mentioned that, also in 1997, Metro adopted Title 13, which was its effort to implement Statewide Planning Goal 5 (to protect habitat and to promote connectivity). She noted that Title 13 required compliance with Title 3 as a pre -requisite. She reported that, based on discussions with Metro staff, the City staff had anticipated achieving compliance with Title 3 and Title 13 with the City's current program plus a few changes to the existing code. She recalled that when the staff proposal to clarify and resolve outstanding issues in the code came before Council in 2008, the community raised a number of questions and concerns about the best way to protect resources and to meet the City's compliance obligations. She reviewed several of the questions raised that prompted this review. She mentioned concerns about regulatory flexibility, compliance with Metro, environmental ecological values, the City's promotion of voluntary compliance, education, and incentives, the non -designation of Oswego Lake and the Willamette River as resource protection areas, and improving the City's permitting and review processes. She noted the question of whether the City should be doing a better job of maintaining its own natural areas. She stated that staff has placed the mapping and the Metro compliance report on hold. Metro granted the City an extension to December 2010 to conduct a review of its program, which the Second Look Task Force undertook. She mentioned that there were also values questions raised by the community regarding fairness and the challenge of balancing individual interests versus the public good. She clarified that the Task Force did not address those questions, as they fell under the purview of the City Council. She stated that the staff's goal in working with the Task Force has been to provide the Council with solid information and an understanding of the compliance obligations, so that the Council could undertake the challenge of balancing interests and prioritizing competing and conflicting community values. She explained that staff wanted to provide the Council with the factual underpinnings and to help the members understand the continuum of regulation from no regulation to excessive regulation. The question then became where Lake Oswego should sit on that continuum in light of its community values. She described the City's efforts to conduct a transparent, thoughtful, and deliberative review process in this time of government distrust. She spoke of addressing all issues on the basis of factual underpinnings, while respecting the high degree of emotions surrounding private property City Council Special Meeting Minutes Page 2 of 18 June 22, 2010 issues. She commented that she thought that the Task Force was successful in conducting its program review within that framework. She spoke of the members' tremendous expertise, high knowledge base, and temperaments well-suited to addressing contentious issues. She introduced Jim Owens, Cogan Owens Cogan, who served as the Task Force facilitator. She reviewed his education, expertise, and experience in natural resources/conservation planning and facilitation. TASK FORCE REPORT • Introduction, Jim Owens Mr. Owens indicated that two of the nine Task Force members could not attend tonight: Jim Johnson and Tim Mather. He concurred with Ms. Frisbee that the Task Force was a group of committed and impressive citizens, with whom he had the honor of working. He observed that any process associated with a controversial subject matter was subject to criticism itself. He addressed several of the criticisms of this process, including the group's expertise. He commented that the City put together a group of practitioners and property owners that he believed was exactly the right mix of persons for the Task Force. He remarked that one would be hard pressed to find a better suited group to undertake this charge. He described the process, which he noted was intentionally not a standard public process. He pointed out that the Task Force was a work group without any decision-making authority and advisory to the Planning Director. He commented that, while staff constantly reminded them to stay on target in terms of subject matter and time frame, they did respond to written public comments submitted at their meetings. He mentioned the public check-in that the Task Force members themselves conducted, which over 120 Lake Oswego residents and other interested parties attended. He stated that the criticism that the recommendations were steered by the Planning Department or the facilitator was not true. He recalled the frustration on the Task Force at the lack of input from the Planning Department. He emphasized that all the considerations and recommendations presented were generated by the Task Force; the members were not steered in any way. He described his function as a translator and organizer. He discussed the three phase process they used: information collection, organization and vetting of the information and input received, and development of the recommendations (pp.3-4). He mentioned site visits to some representative properties to see how these issues played out in reality. He said that, prior to the final draft of the recommendations, he interviewed each Task Force member to make sure that the recommendations adequately reflected everyone's concerns. He read the Task Force's five -point charge, which set the context for the recommendations (p. 2). He noted what the Task Force was not charged with (p.2). He commented that the Task Force did try to respond to questions and issues that fell within its charge. He explained that the Task Force members intentionally signed their names to this report with its 63 recommendations in order to verify that it was a consensus product. • Planning Context and Section 1, Nancy Gronowski Ms. Gronowski indicated that she has lived in Lake Oswego since 1987. She said that she was a landscape architect by training and currently working as a Senior Park Planner with Portland Parks & Recreation. She spoke of working for Oregon State Parks and briefly for Lake Oswego. She mentioned writing Portland's Urban Forestry Management Plan and a number of other master plans for both Portland and the State. She presented a graphic showing the overall planning context for the Second Look Task Force's work (p.7). She explained how the State, Metro, and City goals and regulations inter -related. She reviewed the key Task Force messages (p.2). She mentioned the value that the community placed City Council Special Meeting Minutes Page 3 of 18 June 22, 2010 on its natural resources, the uneven distribution and dynamic nature of natural resources, and Metro's required compliance with its Titles 3 and 13. She mentioned the Task Force's study of how many different cities responded to the Metro requirements. She observed that the programs were not fundamentally different, but they did reflect each city's individual response to the requirements, as Lake Oswego's did. She acknowledged that some people perceived Lake Oswego's program as overly restrictive. She indicated that they found good examples from other cities that Lake Oswego could emulate in addressing those issues. She discussed the Task Force's recommended improvements to the Sensitive Lands program (p.3). She mentioned employing a combination of regulatory, voluntary, and incentive measures applied to both public and private lands, and providing more flexibility to property owners. She spoke of adapting portions of Metro's model code and simplifying and clarifying the City's code provisions and permit application process. She presented Section 1, the City leading by example (p.8), and its three related recommendations of creating programs for both public and private lands. • Section 2, Greg McMurray Mr. McMurray stated that he was a scientist with graduate degrees in freshwater ecology and oceanography. He mentioned his work experience with the State of Oregon in natural resources management and as a consultant. He indicated that he had a sensitive lands designation on his property. He presented Section 2, Designating Sensitive Lands, and the two subheadings of the designation process and modifications to the Sensitive Lands map (pp.8-14). He explained that the current designation process involved satellite imaging and limited ground truthing of the resources. He pointed out that delineation was different from designation and conducted at a property owner's request to identify the specifics on the ground that development would impact. He discussed the first issue of the use of the habitat assessment score (HAS) to assess resource values (p.9). He noted the Task Force's finding that the HAS score was reliable, and its recommendation that the City continue using it until something better became available. He discussed the second issue of needing better designation (pp. 9-10). He noted the recommendation to review and refine the mapped tree groves, and not to include non-native tree groves as sensitive lands. He discussed the third issue of ditches (pp. 10-11) and the public concern about protecting ditches with little or no resource value. He noted the Task Force recommendation to adopt the Department of State Lands' definition of ditches, since the City Code did not have one, and to re- evaluate questionable areas. He discussed the fourth issue of mapping properties outside the City boundary (p.11). He acknowledged that the City had no jurisdiction over those lands, but, since the Task Force saw value in advising property owners prior to annexation about the possibility of sensitive lands on their properties, the group recommended continuing such mapping. He commented that natural resources management was becoming information -based. He discussed the sixth issue regarding water quality management of the Lake Oswego watershed (pp. 12-14). He presented the recommendations for Oswego Lake and the Tualatin and Willamette Rivers, including assessing them for designation as Goal 5 resources, as Metro has currently not designated them as significant resources. He discussed the seventh issue of moving toward a watershed -based approach to water quality management (p.14). He mentioned that most jurisdictions were moving in this direction. He presented the three recommendations to move the City towards integrated management of its City Council Special Meeting Minutes Page 4 of 18 June 22, 2010 watershed. He noted that watershed management councils qualified for Oregon Watershed Management Board funding. • Section 3, Part A, Ken Sandblast Mr. Sandblast stated that he has lived in Mountain Park since 1994 but he did not have sensitive lands on his property. He mentioned his service on the Planning Commission for eight plus years through the late 1990s. He commented that Ms. Frisbee did a good job of summarizing the history of the program. He indicated that professionally he was a land use planning consultant with 15 plus years of experience in dealing with municipal land use regulations. He referenced the staff's breakdown of the Task Force recommendations into code fixes, code improvements, and big picture issues (pp.3-5, Staff Report). He explained that his presentation related to the code fixes, which would have the most immediate impact on 75% of what staff dealt with on a day-to-day basis in regards to the Sensitive Lands program. He mentioned that other sections of the report also contained recommendations for immediate code fixes. He explained that right now the City's program was a `one size fits all' approach, whether applying the code to a single family residential lot or to a commercial property. He argued that they had to make differentiations in the code between different situations. He mentioned that he and others had advocated for code flexibility as the key to improving the program. He presented Section 3, Providing Flexibility, Part A — Protection Measures (pp. 15-17). He pointed out that the Task Force did not recommend removing the existing RC and RP designations but dealt more with exempt uses and outright uses allowed in the buffer. He noted the two-tiered approach of the clear and objective Safe Harbor approach and the discretionary alternate program approach. He indicated that the basis of the discretionary alternate program approach would be the net environmental benefit approach. • Section 3, Parts B and C, Andy Harris Mr. Harris indicated that, after earning a degree in natural resource planning and interpretation, he worked for the City of Lake Oswego Surface Water Management Department for 27 years before moving into the private sector in 2005. He presented Section 3, Part B -- Net Environmental Benefit Approach (pp. 17-18). He explained that this approach provided a clear and objective way to look at a resource in terms of its function. He described how the approach would work in riparian area, noting that a person could use a variety of different techniques to offset development impact. He presented Section 3, Part C, Program Incentives (pp.18-19), noting several possible programs to help citizens deal with managing their sensitive lands. • Section 3, Part D, Admin Wahab Mr. Wahab indicated that he lived in Lake Grove growing up in the 1970s and early 1980s. He said that he had degrees in geological sciences with seven years experience working for the Oregon Water Resources Department. Currently he worked for the City of Portland Bureau of Environmental Services, managing the Tyron Creek watershed program. He mentioned that he looked at the Task Force's work from the eco -regional perspective. He presented Section C, Part D, Highly Constrained Sites (p.19). He noted that there were a limited number of highly constrained sites. He explained that using a comprehensive watershed planning process that integrated all the means of conveying storm water, both natural and manmade, into the review process would help make the discretionary review process easy and objective. This information would allow staff to balance the value of resources on specific parcels within the broader context of the watershed. He mentioned the possibility of the City acquiring a site if the review process did not provide the flexibility needed to allow certain developments on these highly constrained lots. City Council Special Meeting Minutes Page 5 of 18 June 22, 2010 • Section 4, Cap Hedges Mr. Hedges stated that his background was advertising and communication. He indicated that he grew up in Lake Oswego on what was now Lakeview Blvd. He mentioned that he has dealt with the City Planning Department and the building and development community over the past five plus years of trying to develop property with sensitive lands on it. He observed that there were negative perceptions about the way that the Planning Department treated the permitting process and the difficulties people encountered in trying to get through it. He presented Section 4, Improving the Permitting Process (pp.20-21). He mentioned that the public perception that a citizen had no recourse if staff decided that the code blocked his/her development led to the Task Force recommendation to establish an ombudsman to work with the Planning Department and the property owner to help find reasonable solutions. He recounted his investigating why one builder preferred to work in Beaverton or Hillsboro over Lake Oswego. He reported that Beaverton took a more user-friendly and positive approach in working as a team with the end user in order to accomplish his/her goals while protecting the environment. He mentioned the public perception that some members of the Planning Department felt that the feelings of the community were less important than their charge. He spoke of re- orienting the Department towards a customer service orientation. He commented that another area for improvement was permit fee reductions and waivers, as currently they were high. Section 5 and Complementary Recommendations, Todd Praeger Mr. Praeger stated that he lived in Lake Oswego and worked as a planner and City arborist for the City of Tigard. He mentioned his past experience as an arborist for the City of San Francisco and research work on urban forest issues with the US Forest Service and University of California. He presented Section 5, Increasing awareness of the program (pp.21-22). He mentioned that the comments that the Task Force heard most frequently indicated a public unawareness of the program. He reviewed the recommendations that the City regularly provide outreach materials to sensitive lands owners in order to avoid another surprise in 10 years, and that it promote the use of disclosure statements during the property selling process. He presented the Complementary Recommendations, (pp.22-23) regarding controlling noxious or invasive vegetation. He mentioned that the Task Force heard from a natural resource expert that Lake Oswego had more of a problem with invasive species, such as ivy and blackberries, than other cities in the Metro area. He pointed out that invasive species did not respect property boundaries, and therefore the Task Force recommended a community -wide approach to handling the problem. He spoke of removing barriers in the code to removing invasive species and providing incentives for volunteer removal of invasive plants. He described invasive plants as the greatest threat to the City's urban eco -system, other than development pressures. Mr. Owens noted that the Task Force's supplementary documentation was extensive. He reiterated that the Task Force was an impressive group of citizen volunteers who developed this comprehensive set of recommendations. COUNCIL QUESTIONS Councilor Tierney asked which recommendations the Task Force considered to be the top three recommendations. Mr. Owens mentioned short-term code fixes. Mr. Sandblast concurred. He identified amending the code to allow the exempt uses that allowed people to use their properties, dealing with the ditch issue, and capturing flexibility in the code. Mr. Praeger agreed with the importance of getting away from the `one size fits all' concept and allowing staff more flexibility. Mr. Owens identified taking advantage of the code audit process to simplify the code and providing incentives for the sensitive lands property owners to help them protect the resource, given that sensitive lands represented only a small portion of the property in the city. Mr. Sandblast City Council Special Meeting Minutes Page 6 of 18 June 22, 2010 concurred. He pointed out that the construction buffer (p.16) currently in the code was essentially a buffer to a buffer, which was not necessary. He spoke of developing a quantified clear and objective standard for those wanting to remodel their home that did not require an expensive process. Mr. Praeger commented that another important part was the City taking a leadership role in managing its sensitive lands. He observed that it was difficult to regulate private property if the City did not invest in its properties. Mr. McMurray mentioned that the Task Force saw these recommendations as complementary, as opposed to competitive in a resource -limited environment. He suggested parsing the recommendations in order to separate them into those requiring resources and those not requiring resources. Then, the City could develop a priority list for those recommendations requiring resources. Councilor Tierney asked if the Task Force discussed those properties in the community that did not develop at the same time as neighboring properties and were now designated with tree groves, which limited the amount of development that they might otherwise have seen. Mr. Owens answered that the recommendations on highly constrained lots addressed that issue. He noted the inclusion of a discretionary process if the current standard did not work. Mr. Sandblast said that the Task Force did not discuss the philosophical issue of property owners who had tree groves because they did not develop their properties. He indicated that the only issue they discussed related to that was whether people at the time of purchase were aware of resources on the property. Councilor Jordan expressed her appreciation for the Task Force's work. She noted in particular its work on providing flexibility in protecting the environment. She asked if the mapping methodology originally mapped a contiguous resource across properties, or if it looked at resources on a lot -by -lot basis. She mentioned her impression from the citizen comments that the City used an individual approach, and her understanding from staff that they mapped resources over a broad, contiguous area, which was composed of individual tax lots. Mr. Sandblast recalled Mr. Harris stating that the resource was mapped, irrespective of property lines. He pointed out that the `green blobs' on the maps came from the GIS information indicating the presence of a tree canopy or a drainage way, which could span many properties. Councilor Jordan commented that she understood covenants as contracts in which each party received something. She noted that the City received the resource identification but she wondered what the property owner received in exchange. She remarked that she did not see the Task Force addressing the question except by suggesting incentives and reduced fees. Mr. Owens pointed out that property owners with tree groves could develop up to 50% of the tree grove. He mentioned the recommendations for increased flexibility in riparian areas by allowing more outright permitted uses. Mr. Sandblast observed that the notice of development restriction did not use the word covenant. He recalled the Task Force discussing the issue because, on the one hand, they repeatedly heard about deed altering land use restrictions, which Metro did not require, and on the other, people said that they did not know about sensitive lands on the property because there was no notice. He indicated that the City currently provided notice for tree groves but not for riparian areas. Mr. Hedges indicated to Councilor Jordan that the disclosure notice he mentioned was in addition to the City's current practice. He noted the Task Force recommendation that the Council consider tax or other incentives. Mr. Owens clarified to Councilor Johnson that the Task Force saw the ombudsman as someone to help property owners through the permitting process but it did not agree on whether this position should work for the Planning Department or the Council. He indicated that the City of Portland had a well -funded ombudsman position, which suggested looking at the fiscal impacts of such a City Council Special Meeting Minutes Page 7 of 18 June 22, 2010 position. Mr. Hedges mentioned the concept that this ombudsman might also work in other areas of the City in a quasi -independent role. Councilor Johnson commented that, while it seemed like an ombudsman might correct many of the issues in getting the code to work better, she speculated that Beaverton did not have one because its code worked so well that it did not need one. She wondered whether that should be Lake Oswego's goal. Mr. Hedges agreed that that would be the ideal. He commented that Beaverton's approach seemed to be more proactive, even at the level of semantics. He mentioned their use of `habitat - friendly' versus `sensitive lands restrictions.' He suggested that making the negatives into positives could influence the culture of the department and the planning process to a more dynamic culture of service to the community and to the environment. He observed that a culture totally dedicated to protecting the environment at all costs set up a winner and a loser scenario. Ms. Frisbee clarified that Beaverton, Tualatin, and Tigard were in the Clean Water Services District, which regulated sensitive lands on behalf of the cities. Therefore, a development applicant had to get approval from Clean Water Services, and not from the cities. She agreed that Beaverton's approach of habitat -friendly practices and incentives was something that Lake Oswego could emulate, yet the Beaverton staffers told Lake Oswego that they did not use it much because people received their sensitive lands development permit from Clean Water Services. Mr. Owens indicated to Councilor Johnson that Clean Water Services had the model watershed - based program in the country. The District had more financial resources available to it than any other single jurisdiction because it used rate -based funding to finance it. Ms. Frisbee mentioned that Metro carved out a separate approach for Clean Water Services because it could show a dedicated source of long-term funding (millions of dollars) to accomplish outreach, property acquisition, and larger scale stream restoration efforts. Councilor Hennagin thanked the Task Force members for the hours of service that they provided to the City. He mentioned that his experience with ditches in Oregon has been that one dug a ditch to divert water away from something, which water would eventually go into a creek. He asked how they could exempt a ditch in light of the water quality protection requirements. Mr. Harris explained that most ditches had only a water quality function of carrying drainage water, which the Public Works Department and drainage standards handled and Sensitive Lands did not regulate. Sensitive Lands regulated only those ditches with a stream function, such as when a stream intersected with a ditch. Councilor Hennagin asked how one could build a deck into a riparian area without affecting the integrity of the riparian area. Mr. Sandblast explained that they had been looking at an existing building in the buffer zone, and not one in the actual riparian area. Ms. Frisbee pointed out that the City currently had `no touch' buffers, and the recommendations suggested adding flexibility to the code to allow some uses in the buffer area, as well as providing information on best management practices for both the buffer and the riparian areas. Ms. Frisbee indicated to Councilor Hennagin that the net environmental benefit came up under the separate permit review process recommended by the Task Force and applied primarily to much larger developments. She commented that, in recommending small buffer intrusions, the Task Force recognized that the Metro model code allowed those, and that doing so offered flexibility to citizens in concert with outreach and education on better voluntary practices. Mr. Harris added the caveat that the flood plain function of a stream lay in the buffer area, which was a consideration in allowing some uses in the buffer. Councilor Hennagin cited the report's reference to allowing more flexibility with a de minimis standard, but he questioned the 200 to 500 square foot size mentioned. He wondered whether a 150 square foot size was more reasonable. Mr. Harris explained that the Metro model code had a 200 foot de minimis standard, and other cities, such as Tigard, had up to 500 feet. He noted the Task Force recommendation that anything over 200 feet be accompanied by commensurate City Council Special Meeting Minutes Page 8 of 18 June 22, 2010 mitigation. Mr. Sandblast pointed out that the Metro model code's definition of development used a percentage of the area for a buffer, as opposed to a hard number. He recalled that the Task Force decided that a hard number would be better because of the wide variety of buffer and lot sizes. Councilor Hennagin clarified that his concern was two citizens in similar situations getting different rulings from the Planning Department because of flexibility, and one party complaining of unfairness. Councilor Olson thanked the Task Force, remarking that many of its common sense recommendations were welcome suggestions in line with what the Council has been hearing from citizens for the last year. She commented that the broader policy issue of what the City should regulate and protect and how it should protect it was still an issue that the Council needed to discuss as part of this process. Mr. Owens indicated to Councilor Olson that he did not recall their research finding that any jurisdiction other than Lake Oswego that regulated tree groves within the Urban Growth Boundary (UGB). He said that they did discover that Lake Oswego had the smallest protective buffers of any jurisdiction in the region, which was a trade off for protecting tree groves. He commented that a number of jurisdictions were currently looking into that protection, such as Portland, Tigard, and Clackamas County. Councilor Olson clarified that Tigard and Clackamas County were looking at tree codes. Councilor Olson referenced the code auditors' comment about significant advances in resource protection since the City made the choice to regulate significant tree groves, and their recommendation that the City look into best management practices and updated approaches to resource protection before making major changes to the City code. Ms. Gronowski indicated to Councilor Olson that the Task Force did not get into the level of detail of establishing the performance standards called for in Title 13 (p.7). Ms. Frisbee clarified that their research did not find any city in the Metro area that has developed those performance standards. Instead, the cities all relied on regulatory practices. Councilor Olson asked Mr. McMurray to expand on the recommendation to better define tree groves. Mr. McMurray explained that he referred to designation based on an on the ground survey, as opposed to the satellite photos, which could be several years old. Ms. Frisbee clarified to Councilor Olson that the `remote sensing' used by Metro referred to aerial photos. She explained that Metro gave these aerial photos to the cities as the 50,000 foot level view of its resources and told them to refine the resource map with an on the ground review of the properties. She indicated that the City has used the HAS (Habitat Assessment Score) evaluation to do that refinement. Mr. Praeger indicated to Councilor Olson that he did not know why Lake Oswego was reported as having more of an ivy problem than other communities in the region. He said that Christie Galen, who did HAS assessments around the state, told the Task Force that. He speculated that it had to do with invasive species originating as ornamental garden escapees, and Lake Oswego having a longer history of ornamental gardening than other jurisdictions. Mr. Wahab mentioned that Portland had an active vegetation management program that invested a lot of money in the management of invasive species, as did Clean Water Services. Councilor Olson commented that her hypothesis had also been that Lake Oswego did not have an active management program. Councilor Olson referenced Mr. Sandblast's comment about the Catch-22 that the City found itself in with respect to the restrictive covenant. She pointed out that only 62 of the 1,500 properties currently mapped had the restriction recorded at the County, which meant that it was not serving the purpose of notifying potential purchasers. She questioned the need for it, given that Metro did not require it. Mr. Sandblast commented that the 62 properties with the restriction recorded at the County were likely those properties that went through a tree grove delineation process and designated which City Council Special Meeting Minutes Page 9 of 18 June 22, 2010 50% of the delineated tree grove was protected. He pointed out that whether the City continued with its notice of development restriction was a policy level decision for the Council to make. He observed that it was done for the RC overlay because the City Code required it, and for the RP overlay because it conveyed information. He mentioned his appreciation of Ms. Frisbee earlier clarifying that this notice was different than the Task Force recommendation that the City have a way to provide information regarding these designations to the parties involved in a property exchange. He emphasized that the extensive education and outreach recommendations were in response to the lack of public awareness of the program. Councilor Olson reiterated that, even though the 62 recordings were the result of delineations, the fact that there were only 62 out of 1,500 properties delineated indicated that the notice was not accomplishing the goal of notification. Ms. Frisbee clarified that staff received only eight to ten delineation requests a year; these 62 delineations came in over the last five years. She explained that staff required recording the notice at the County only when someone came in asking to divide or develop the property; the purpose was to provide notice to prospective purchasers about the restrictions. She concurred with Mr. Sandblast that this was a policy decision. She confirmed that it was not a Metro requirement, yet many jurisdictions did it in order to avoid a surprise at the Planning counter. She pointed out the disconnect between asking the Planning Department to promote customer service and yet leaving it to staff to inform a citizen asking for a permit of this surprise. Mr. Powell referenced Councilor Jordan's comment regarding covenants. He said that a covenant most commonly meant a promise by the property owner that went beyond the code requirements, or it meant something achieved in exchange for a permit. He mentioned the current code language that said in order to put property owners and occupants on notice, the applicant would execute a covenant running with the land. He pointed out the irony that the language used the word `covenant,' but what was promised was no more than what the code required anyway. He commented that the Council could call the document `a notice of restrictions under the code' as opposed to `a covenant' and keep it in its toolbox. He speculated that the language change might change some of the perception that the document altered the deed or devalued the property. Councilor Olson commented that she preferred to see the Planning staff, City Code, customer service, and City approach negate the need for an ombudsman, although she appreciated the recommendation. She referenced the sensitive lands data that Ms. Holen prepared for the Task Force. She asked why the data did not include the required protection buffers, the 1 B resources and parcels with less than 300 square feet of designated resource. Ms. Frisbee explained that it was not possible to figure out less than 300 feet on that kind of analysis using the GIS system. She said that they did not know which 1 B sites would end up on the inventory or what the buffers were until staff has refined the map on the ground. Ms. Holen indicated that she would type up a written report for the Council. Councilor Olson referenced p.226 in the notebook provided to the Council. She asked for more discussion on the statement that "the provisions of the Sensitive Lands code did not apply to residences located within the boundaries of a partition, a subdivision, a planned development, or a lot line adjustment approved prior to August 21, 1997." She commented that that would exclude many properties, including those with already developed backyards. Mr. Powell noted that the language continued with the condition that these properties "would not be included if the resource was identified and protected pursuant to the regulations in effect at the time of approval." He indicated that the intent of this language was to grandfather in properties regulated under the old Lake Oswego Development Standards 3 and 4, rather than changing them to the Sensitive Lands Ordinance. He commented that this provision did not speak to the question of whether the City could now designate and delineate a resource in an old subdivision developed before the City had any resource protections in place. City Council Special Meeting Minutes Page 10 of 18 June 22, 2010 Mr. Powell indicated to Councilor Jordan that a conservation easement of some sort would be either on the deeds of properties with resources regulated under the older standard, or on the subdivision plat. Councilor Moncrieff commented that there were two groups of affected property owners: those with sensitive lands already designated and those with the potential for designated sensitive lands. She asked if the Task Force's recommendations around code changes would allow more uses within the conservation area on properties with sensitive lands already designated. She observed that those recommendations combined with the flexibility mentioned on p. 16 created a balance of a concrete Safe Harbor process with a discretionary review process. Mr. Owens indicated to Councilor Moncrieff that he did not think that these recommendations would address all the concerns of those citizens with current sensitive lands designations on their properties. He observed that there was divisiveness in the community on this issue, as they also heard from those who feared that the recommendations went too far. He commented that the Task Force heard loudly the request for no sensitive lands overlays on private lands. Mr. Sandblast indicated to Councilor Moncrieff that the Task Force recommendations did do a better job of satisfying the concerns that the Task Force heard from residents with sensitive lands designations than simply adopting the Metro model code would have done. He pointed out that the Task Force was not charged with considering the question of whether or not the City should designate resources; that was a Council policy question. The Task Force's charge was to look at making the existing program better. He emphasized that these recommendations did improve the existing program per the Task Force charge because they acknowledged the reality of what the City has learned over the last 10 years of implementing the program. He argued that adopting the model code would not have worked for Lake Oswego because the community needed a program specifically tailored to its issues and concerns. He mentioned the model code elements that the Task Force picked out as applicable to Lake Oswego, such as the exempted uses and the de minimis standard. He confirmed to Councilor Moncrieff that these recommendations would go a long way in increasing flexibility. He commented that simply getting out of the `one size fits all' mentality and recognizing what 75% of the City staff resources were spent on was a huge improvement. Mr. Owens observed that the recommendations addressed public education, incentives, etc., along with code flexibility as a complete package. Councilor Moncrieff referenced the second group of those with the potential to receive a sensitive lands designation. She mentioned her understanding from the report that the Task Force was satisfied with the HAS and ESEE analyses. She asked if the Task Force was comfortable with the recourse available to those citizens challenging the designation. Mr. Sandblast recalled that staff asked the Task Force to look at that issue. He referenced p. 12 in the Task Force Report, Issue 5, Recommendation 2, in which the Task Force recommended completing the development code revisions before adding any resources to the inventory map. He commented that having a clear and objective method available for the next set of sensitive lands properties was the obvious thing to do. Councilor Moncrieff thanked the Task Force for its work and excellent recommendations. She stated her understanding that the Task Force consensus was that it would be good to implement the code changes as soon as possible because it would increase the flexibility for the existing sensitive lands owners. She mentioned that she liked Mr. Hedges' comments about taking a more user-friendly and positive approach in working cooperatively with the land owners. Mayor Hoffman referenced Mr. Owens' comment that the Task Force heard loud and clear that a number of Lake Oswego residents did not what sensitive lands restrictions on their property. He asked if the Task Force found any path towards achieving that request while doing its research. Ms. Gronowski indicated that, based on their research, sensitive lands restrictions were not an City Council Special Meeting Minutes Page 11 of 18 June 22, 2010 option; these regulations were a fact of life in Oregon with its Statewide Planning Goals and Comprehensive Plans. Mr. Praeger pointed out that, as Clean Water Services increased its resource investment in sensitive lands to maintain, protect, and acquire properties, the cities had more flexibility in their regulations. He observed that, while this did not eliminate any regulations, it did help shift the balance. Mayor Hoffman asked if the Task Force found any information on how other cities addressed the fairness issue. He referenced the comment that natural resources were not distributed equally in the city. Mr. Owens remarked that the fairness issue has been on the table since zoning began. He observed that incentives and restriction levels were both part of the balance that jurisdictions were trying to achieve. He mentioned that the many jurisdictions used the Metro model code because it provided clear and objective standards so that everyone knew what the rules were, yet allowed an alternative process if those did not work for a community. Mr. Hedges mentioned that the culture issue came up based on the input that he has received from builders regarding what needed improvement in the Lake Oswego process. Mr. Wahab pointed out that there was a heavy concentration of overlay zones on the Westside of Portland because that was where the resources were. Mayor Hoffman encouraged the Council to raise policy questions in this second time around the table. Councilor Tierney asked if a City program of regulations, incentives, and education focused on watershed management would have a more positive net natural resource benefit than the current program. Mr. Praeger recalled that the Task Force kept coming back to the need to look at the city watershed and the impact on the overall watershed of actions on both sensitive lands and non - sensitive lands. He commented that everyone agreed that "greening up" the overall development code to help reduce the downstream impacts would make a difference. Mr. Wahab answered the question `yes.' He noted that a comprehensive watershed plan would give the City a handle on all the resources inside and outside the sensitive lands. He commented that the benefit to the City was the ability to review development applications in light of the watershed plan and to protect the resources as much as possible throughout the community. He pointed out that without that context, the City focused on sensitive lands as protected islands. He mentioned that having the broader view could allow protection of tree groves in areas without the overlay zones, which would relieve the pressure on the islands protected by the overlays. Mayor Hoffman recessed the meeting at 8:54 p.m. for a break. He reconvened the meeting at 9:05 p.m. Councilor Tierney asked if the Task Force's review of the Environmental Social Economic Energy (ESEE) analysis found that the analysis would allow latitude in making decisions about a property with a high HAS score and economic and social implications that needed balancing. Mr. Owens explained that the ESEE analysis was designed as a balancing act. He commented that local jurisdictions had significant discretion in balancing the four considerations in determining whether to protect a resource or not. Councilor Tierney commented that the report he read did not seem to strike a balance between the four factors but was rather written from an environmental perspective. He asked if the City really used ESEE in its processes. Mr. Owens stated that using ESEE was a requirement. He commented that the art of preparing ESEE analyses has progressed significantly over the 15 years since the adoption of the Goal 5 administrative rules. He reiterated that it was a subjective balancing act. He mentioned that many jurisdictions used their Planning Commission to review ESEE analyses for a second look at them. Mr. Sandblast mentioned that he too sat on the Planning Commission when the Sensitive Lands program went through. He said that he could not recall even one contested case where the property owner brought back a HAS functional value or an ESEE analysis. He commented that a City Council Special Meeting Minutes Page 12 of 18 June 22, 2010 property owner not providing alternate expert analysis to legitimately contest the expert analysis provided by the City staff did not leave decision makers much to do other than to accept the evidence on hand. Mayor Hoffman recalled that Metro did an ESEE analysis of all the different kinds of zoning within the region when it went through Title 13 and developed the different levels of habitat conservation areas. He mentioned Metro's ESEE analysis comparing regionally significant habitat in neighborhoods and the economic aspects of neighborhoods. He indicated that Metro found that all regionally significant resources within the neighborhoods were high habitat conservation areas. Councilor Olson asked if that included tree groves. Councilor Tierney suggested the appeals process and its basis as a topic for future discussion. He mentioned his impression of the process, based on Mr. Sandblast's description, as `us against the world,' in that the City paid for the experts and their evidence was insurmountable unless a citizen brought in his/her own experts. Councilor Tierney asked how staff would find any new unmapped resources, beyond those identified in 2007, in an urbanized community like Lake Oswego, which was becoming more urban and not more natural. Ms. Frisbee commented that there was fluidity to the resource designations, especially tree groves, because things changed. Therefore, the City needed to continue to assess resources over time. She noted that the City's maps matched Metro's maps. She indicated that Metro staff told the City staff that the City needed to stay on top of resource assessment moving forward and to investigate any better avenues for resource assessment that became available. Mr. Owens commented that it was a two-way street, in that the City might lose some resources over time and consider removing a sensitive lands designation, if appropriate. Ms. Frisbee speculated that the original 1997 effort simply ran out of steam after identifying the 1,450 properties included on the inventory. The 2007/2008 staff work identifying an additional 150 properties completed that process. Councilor Tierney asked if continual updating might have the unintended consequence of deterring people from enhancing the natural state of their property over concerns about falling under these regulations. Ms. Gronowski commented that she did not know if it would. Councilor Jordan pointed out that sensitive lands protections protected large contiguous areas or entire stream corridors. A property did not suddenly become sensitive lands when a property owner planted trees on his/her lot. Mr. Hedges cited an example of the Weibel family planting fir trees on their land 50 years ago in order to enhance their back yard, and now their couple of acres was under sensitive lands restrictions. Councilor Jordan indicated that her concern was sending a mixed message to the citizens about what could happen on a 5,000 square foot lot if the owner planted a lot of trees. She reiterated that she did not see the regulations applying to a tree grove standing in isolation on a lot, surrounded by properties with landscaping and gardens. Councilor Tierney reiterated his concern that `continual' updating meant that this process was endless. Mr. Sandblast referenced the consideration on p.12 that described this as an ongoing process because land use was not static. He noted the increasing information available from GIS and LIDAR mapping systems that would help in creating a holistic watershed -based program. He commented that, while water quality was important, the Task Force focused on land use. Without a watershed -based approach that integrated the various aspects of the regulatory world, land use needed ongoing updating. He cited the Clean Water Services watershed plan as an example of an integrated program. He mentioned the Task Force's view of big picture watershed -type planning as critical, given that 80% of the town drained into Oswego Lake. Councilor Jordan recalled the specific annexation case that caused the Council concern and encouraged the second mapping effort. The property owner left 50% of the delineated tree grove standing but he did not maintain the contiguous tree grove and cut down the trees that were City Council Special Meeting Minutes Page 13 of 18 June 22, 2010 connected to the other trees. She spoke to working with property owners in similar situations to keep the contiguous 50%. Mr. Sandblast indicated to Councilor Tierney that the consideration on p.11 stated that, while the City had no jurisdiction outside its boundaries, it needed to collect information on natural resources within its Urban Services Boundary (USB) for long-range planning purposes. He explained that currently if an annexation request involved a property with a significant resource, the request went to the Planning Commission for the RP or RC designation process. The City had a separate process to deal with a property owner who did something to a known resource before requesting annexation. Councilor Tierney clarified that his concern about endless revisions related to Issue 5, Consideration 4 (p.12). Mr. Harris commented that, as the City moved to a watershed -based approach, the community would start to think in terms of how all parts of the system worked together, as opposed to focusing on the impacts of sensitive lands on individual properties. Mr. Owens noted the Task Force's statement that it saw no need for any mapping modifications at this time, but it did recognize the periodic reviews mandated under the statewide planning goals and the City's Comprehensive Plan. He cited further definition of the `tree blobs' on the map and the designation of Oswego Lake as a resource as examples of periodic review. Mr. McMurray observed that a number of things could change quickly with respect to the protections needed. He mentioned daylighting streams, drivers outside the community, such as the Endangered Species Act, and the increasing information that would include the tree species (related to wildlife habitat). He commented that HAS scores could change rapidly because that system looked at factors other than tree canopy, such as wildlife food and access cover in the undergrowth. Undergrowth grew more quickly than a tree grove. Councilor Moncrieff mentioned her concern that the residents feared and avoided sensitive lands overlay designations. She observed that the more zoning that a city had, the higher the property values. She discussed her goal of making the sensitive lands code flexible, fair, and as reasonable as possible, using the Task Force recommendations, in order to make it something that should not be avoided or feared. She pointed out that the Lake Oswego community as a whole valued resources, and that the goal of the Sensitive Lands Ordinance was to protect and grow the resources. She spoke of figuring out how to make the overlays appealing to residents in order to encourage willing compliance. She referenced the communications mentioned by Mr. Hedges. She suggested providing incentives and assistance in such a way that people wanted the designations because they knew that they could still enjoy and use their yards. Councilor Hennagin mentioned that the two-tier system for development caused him concern in wondering how a resident would be knowledgeable enough at the initial application stage to know which track to select. He acknowledged that the more flexible standards for development were aimed at the highly impacted properties. He asked whether a resident seeking development on a property without a sensitive lands designation could opt for the more flexible system. Mr. Sandblast commented that he agreed with Councilor Olson that the City would not need an ombudsman if it had a system that functioned correctly. He observed that part of the system functioning correctly was educating people to understand their choices. However, under the current `one size fits all' system, staff had no choice but to direct the applicant down the stipulated channel. He pointed out that, while the alternate review process in the two-tiered system was more uncertain, discretionary, expensive, and time-consuming, it did give staff a vehicle to work with in assisting the applicant. He reiterated that 75% of what the staff dealt with related to replacing decks or house additions. These applicants should have a clear and objective way to achieve their goal that was not expensive and did not require experts, which option was not available right now. City Council Special Meeting Minutes Page 14 of 18 June 22, 2010 Mr. Harris commented that he thought the Task Force's intention in adding incentives, such as the discretionary track, had been to help balance the additional restrictions on sensitive lands owners, as opposed to making those options available to anyone. Mr. Sandblast referenced the fully encumbered situation mentioned earlier. He said that the Task Force decided that the existing practice of the biggest house on the smallest lot was a clear and objective way to deal with that situation. He commented that, with only 50 to 60 of these heavily encumbered properties in town, staff (as available) could create an analysis of what the biggest house on the smallest lot on a given property might mean to the property owner as an informational piece. He observed that they needed to balance both flexibility and certainty in the code. Mayor Hoffman indicated to Councilor Hennagin that Ms. Frisbee's staff report categorized the recommendations in terms of those affecting the budget and those that staff could implement immediately. Councilor Olson asked to discuss the policy issue of updated mapping. She commented that Lake Oswego, as the only jurisdiction that mapped and protected tree groves, would likely add properties to its map during a Comprehensive Plan update when other jurisdictions would only tweak their maps to refine riparian boundaries. She argued that the City mapping upland tree groves caused the uproar because Lake Oswego's map updates were not like anybody else's map updates. She asked to discuss the issue of spotty mapping of properties within a resource in practice when the concept was to map the large contiguous resource. She attributed Beaverton's smoother process to its not regulating upland tree groves. She described the question of what resources the City protected and how it protected them as the major policy issue. She argued that the source of many of the City's problems was its regulation of upland tree groves. She asked for more information on how the City applied the ESEE analysis, and whether it really looked at the social and economic effects of designating a property, as Councilor Tierney spoke to. Mayor Hoffman mentioned that the Title 13 ordinance contained a good explanation of the ESEE analysis that Metro did for the entire region, which served as an example of how the ESEE analyses worked. Councilor Olson concurred but argued that the Metro analysis did not apply to what Lake Oswego was doing because Metro did not require protection of upland tree groves within the UGB. Councilor Olson commented that she thought the recommendation to create a no fee process for landowners to request sensitive lands map corrections was great. She asked if staff intended to let the original 1500 mapped properties request a correction. Ms. Frisbee explained that the City sent out the Natural Resource Planner to evaluate a claim that a property did not have a natural resource on it. If the Planner agreed, then staff told the property owner that they would correct it at the next map update, which was originally envisioned as every 10 years. She indicated that staff thought that annual map updates would be a better practice, but they had to limit the number of requests per year because of staff resource limitations. She remarked that, based on the past, staff did not expect many requests, but they thought that a no fee corrections process and more efficient processing would be more responsive to community needs. She noted that the City did not have the staff resources to do constant monitoring and mapping, but staff would do that work in conjunction with periodic review and a Comprehensive Plan update. She mentioned the staff proposal for an appeal of the staff decision to the Planning Commission and City Council, instead of to LUBA (appeal of a Comprehensive Plan map change). Councilor Olson commented that she liked that idea. She indicated that she understood the Task Force discussion of Oswego Lake serving as flood storage and not being a land use as meaning that the lake was not a resource. She noted the recommendation to assess the designation of Oswego Lake as a Goal 5 resource and a land use needing zoning regulations. She asked for further discussion of those two statements. City Council Special Meeting Minutes Page 15 of 18 June 22, 2010 Mr. Owens reminded the Councilor that the Task Force had not been of one mind on that issue. He recalled the Metro staff saying that they did not include it on the region wide map because it was a manmade feature without any particular land uses on it. He recollected that Task Force members argued that there could be land uses in the lake that might need regulation. He indicated that the Task Force felt the issue merited more discussion, as it was not comfortable with the existing situation, but the discussion of that policy issue did not fall under their purview. Ms. Frisbee pointed out that the City's approach addressed the elements of a watershed management plan in a scattered way through land use and development codes, a water quality program, and a surface water management program. She commented that the Planning Department knew how to address land use because that was its job but it did not know what to do with a body of water. Mr. Sandblast recollected that Metro staff told the Task Force that Oswego Lake met only one of the five criteria for Title 3 designation (flood storage and flood control). He mentioned that Mr. Johnson had advocated looking at the issue of zoning the land underneath the lake. The Task Force concluded that its business was looking at sensitive lands and not at zoning, but it did express that idea in Recommendation 2. Mr. McMurray commented that part of their discomfort came from hearing concerns about the implementation of the sensitive lands overlays and the lack of integrated watershed management for water quality protections. Mayor Hoffman concurred with Councilor Olson that Lake Oswego's regulation of tree groves and riparian areas was different than only regulating riparian areas. He disagreed that Lake Oswego's map update was unlike other cities' updates. He cited Portland's similar angst in reviewing its natural resource inventory for the airport futures project and mapping new properties in the large Slough area with their P and C zones. He asked if the Task Force considered whether there was a mechanism or a method either to relax or amend the tree grove protections and then adopt the Metro model code, which would expand the buffers. Mr. Owens indicated that the Task Force decided that it would not recommend eliminating the tree grove protection and creating larger buffers. Mr. Sandblast pointed out that, although the City discussed the tree grove protections as a trade off for smaller buffers, Metro did not have that linkage. If the Council decided to revisit the tree groves, it exposed the City to a revisit of expanded buffers also. He concurred with Mr. Owens that the Task Force chose not to address the issue because the members did not think that the trade off was worth revisiting. Mayor Hoffman agreed that this was a policy issue and a legal issue. Councilor Olson pointed out that, while the Metro model code had wider buffers, it also allowed more uses within those buffers. She commented that she preferred wider buffers with more uses than the City's current situation of smaller buffers with no uses allowed. Councilor Johnson spoke in support of keeping the smaller buffers with the tree grove regulations and expanding the buffer uses. Ms. Frisbee mentioned that the Metro City Attorney visited one of the Task Force meetings and discussed the no back sliding provision. She recalled that his conversation had delivered the message that Metro staff anticipated that Lake Oswego would be in substantial compliance with Title 13 with its smaller buffers and tree grove regulations. Ms. Frisbee indicated to Councilor Tierney that Metro was not yet at the enforcement of provisions stage, as jurisdictions only submitted their compliance plans in December 2009. She mentioned that Lake Oswego was one of the four jurisdictions that have not yet submitted their plans. She explained that the Metro staff worked closely with the City staffs so that a city had a good idea before submitting its plan whether it would get Metro staff support. Councilor Tierney commented that he did not want the fact that that provision has not yet been defined through any Metro process to so constrain the Council that it did not discuss the matter and think about how to be more creative. Councilor Olson agreed that the Council should City Council Special Meeting Minutes Page 16 of 18 June 22, 2010 discuss this issue, citing Mr. Powell's comment last year that the provision was unusual and could be tested. Mr. Powell clarified that there were both legal and policy considerations surrounding this issue but the policy issues were stronger. Mayor Hoffman pointed out that other jurisdictions would join Lake Oswego in protecting tree groves as they added land, since Metro required protection of tree groves outside the UGB. Ms. Frisbee clarified to Councilor Moncrieff that the no backsliding rule referred to the regulations adopted by a jurisdiction in connection with its Goal 5 protection program. She explained that if a city already had a Goal 5 protection program in place prior to Metro's adoption of Title 13, it could not unwind that protection in connection with Title 13 compliance. Mr. Powell pointed out that, since the Safe Harbor program for complying with Goal 5 did not require upland tree grove protections, one could argue that those protections were not necessary to comply with Goal 5 and therefore were not a Goal 5 program. Councilor Moncrieff mentioned the consideration of whether it was more beneficial to the watershed system to protect upland tree groves or to increase the stream corridor protections. She concurred with Councilor Johnson that it would be nice to have smaller buffers and the expanded uses of the model code. She spoke to not compromising the overall system in looking for trade offs. Councilor Olson concurred. She suggested that the Task Force recommendations for incentives, education, and outreach and the City leading by example were new elements that the City could offer Metro in combination with its tree code and other elements to do it all without the tree groves. Mr. Praeger mentioned that, during this discussion, the Task Force considered the emphasis in the Comprehensive Plan of the importance of tree groves to the community. Tree groves were not something to be thrown away, even if Metro would let the City eliminate the protections. Councilor Olson commented that the community had so many tree groves because their importance to the community meant that residents did not clear cut them. She reiterated that this was a policy discussion. Councilor Jordan spoke in support of moving in the direction of treating the system holistically, instead of in islands. She asked what the City needed to do to make sure that it was in substantial compliance that would also leave the City with the opportunity to implement some of these recommendations without having to go back through the whole process. Ms. Frisbee indicated that staff did not know that for certain. However, City staff discussed the Task Force recommendations with the Metro staff who did not express concern about them. She said that they did not talk about removing tree grove protections, which was a bigger policy issue since that was half the City's sensitive lands program. She commented that somewhere between changing half the program and making the changes recommended by the Task Force would be going too far and take the City out of compliance. Councilor Jordan asked what components could the City put together to make the program work better for the citizens and still be in compliance with Title 13. She commented that she did not think that training staff to take a more positive approach would affect Metro compliance. That was the kind of thing that the City could deal with separately from putting regulations in place to allow more freedom and flexibility in the buffers, while maintaining small buffers and tree groves. Ms. Frisbee directed the Councilor to the staff report, which listed the quick fixes staff saw for responding to citizen concerns about flexibility. She noted that it also identified the program improvements requiring budget resources and a bigger look. She said that she thought that they could do the more immediate things and submit the City's compliance package to Metro. She indicated that she could not guarantee that because City staff has not vetted it with the Metro staff and the decision was up to the Metro Council in the final analysis. She indicated to Councilor Jordan that the code audit consultant's report did not call out this chapter specifically, other than to acknowledge that it was a section of code that generated questions and concerns. She observed that the Comprehensive Plan update/Periodic Review City Council Special Meeting Minutes Page 17 of 18 June 22, 2010 process was the time to discuss tree groves because the Plan was the original source of the City's current program. Councilor Olson reported that the code audit consultant's presentation to the Planning Commission was excellent and available online. Mr. Sandblast commented that, during the past nine months, he had not been driven by whether their work complied with Metro or not. His thought had been that if they were doing what was right for the community, then substantial compliance at the regional level would follow. The Council discussed whether to continue the discussion to the next evening. Mayor Hoffman indicated that he would reconvene the discussion at 6:30 p.m. tomorrow. Councilor Hennagin asked whether the step following authorization of incentives was referral to the Planning Commission for hearings. Mayor Hoffman said that the Council could discuss that. He commented that incentives could be dollars from a City fund set up to compensate people X amount per square foot. 4. ADJOURNMENT Mayor Hoffman adjourned the meeting at 10:14 p.m. Respectfully submitted, 4'���Jwo Robyn 6hristie City Recorder APPROVED BY THE CITY COUNCIL: ON November 2, 2010 Jack D. Hoffman, Mayor City Council Special Meeting Minutes Page 18 of 18 June 22, 2010 LAM.(111ARXl CITY COUNCIL SPECIAL MEETING MINUTES June 23, 2010 Mayor Jack Hoffman called the special City Council meeting to order at 6:35 p.m. on June 23, 2010, in the City Council Chambers, 380 A Avenue. Present: Mayor Hoffman, Councilors Johnson, Olson, Moncrieff, Tierney, and Jordan. Councilor Hennagin was excused. Staff Present: Alex McIntyre, City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Denise Frisbee, Director of Building and Planning; Morgan Holen, Assistant Natural Resources Planner 2nd Look Task Force Members: Jim Owens, Facilitator; Andy Harris, Greg McMurray, Todd Praeger, Ken Sandblast, Jim Johnson; Cap Hedges 3. STUDY SESSION 3.1 Continued Review of Planning Director Report on Second Look Task Force Report Mayor Hoffman encouraged the Council to have both the Task Force Report and Ms. Frisbee's June 4, 2010, report in front of them. He reviewed the procedure for the evening. • Staff Review Ms. Frisbee reviewed what the Council heard last night, noting that staff would take direction from the Council discussion at these meetings regarding the July 20 meeting. She said that she heard support for the Task Force recommendations to provide greater flexibilities in the riparian corridor buffer areas and to align the City with the Metro definition of development to allow more permitted outright uses and a de minimis disturbance area. She mentioned support for a two-tiered review track of a clear and objective approach and a discretionary review process. She noted interest in asking staff to look at streamlining the appeals and challenge process, including fee reductions or waivers, as well as interest in staff's idea of annual map corrections with a cap on the number of requests per year and aligning the map updates with the Comprehensive Plan update/periodic review processes. She noted the discussion about notice of development restrictions addressed in the staff report and changing the language to eliminate the word `covenant,' an issue not yet resolved. She commented that code clarity was an issue important to the staff, strongly recommended by the Task Force, and an emphasis in the upcoming code audit report. She observed that the discussion around the policy issue relating to tree groves would continue. She said that she asked Mr. Powell to identify legal process issues attached to removing tree grove protections. Mr. Powell discussed the three hurdles that the Council would need to address if it wanted to eliminate or significantly reduce tree grove protections: the City's Comprehensive Plan, Metro's anti -backsliding provision in Title 13, and achieving substantial compliance with Metro's Title 13. He referenced Section 5 of the City's Goal 5, Policy 5B (p.196), which required regulations and standards for the protection of sensitive lands designated either RC or RP. He noted that Policy 1 on p. 195 spoke of protecting the values and functions of the City's natural resource areas, and City Council Special Meeting Minutes Page 1 of 17 June 23, 2010 Policy 1, Section 2, on p. 177 addressed the protection of existing vegetation, including tree groves associated with wetlands, stream corridors, and riparian areas. He noted that the literal reading of the anti -back sliding provision in Metro Title 13 stated that a jurisdiction could not repeal or substantially diminish protections already in place. He commented that, while there might be some policy or legal -based ways to address that with Metro, doing so was strictly speculation. He mentioned that staff traded off upland tree grove protections for narrower riparian area buffers in its discussions with Metro staff about how the City's program complied with Metro Title 13. If the Council eliminated tree grove protections, then it had to convince both itself and the Metro staff and Metro Council that an equivalent level of protection remained. At Mayor Hoffman's request, Mr. Powell reviewed the process involved if the City proposed an ordinance to eliminate tree grove protections. He explained that it would go through the Comprehensive Plan amendment process in which DLCD determined whether the amendment was consistent with the City's Comprehensive Plan and the statewide planning goals. He indicated that the City would need to establish how the amendment still complied with Goal 5 and Title 13. REVIEW OF RECOMMENDATIONS Councilor Jordan asked for clarification on some City Council statements made last night that she did not believe were answered. She referenced the idea that the program did not apply to land subdivided prior to a certain date, and the comment that residents with fir trees that they planted over 40 years ago were now slated to be mapped. She mentioned the comment that the overlay zones for tree groves were based on larger areas and not identified lot to lot, and the reports of properties without sensitive lands designations sandwiched in between properties with sensitive lands designations. She raised the issue of notice of designated versus delineated land, and the recording on the title. She noted that there were several sites with an overlay zone not recorded on the title. She asked why those properties were treated differently if providing notice lay behind recording this information on the title. Mr. Powell indicated to Councilor Olson that he could answer tonight the question about applicability referenced by Councilor Jordan or send the Council a memo. Councilor Olson asked for discussion of the appraisal report in the staff report. Mayor Hoffman led the discussion by reading each section, part, or issue title individually, following the report order. He noted the number of considerations and recommendations associated with each element. When he heard no more questions or comments on a particular element, he moved the discussion on to the next element. • Section 1: Leading by example Councilor Tierney asked for examples of what restoration meant in this context (Recommendation 3, p.8). Mr. Praeger indicated that the Task Force focused more on removing invasive species and re -vegetating with native plant species, similar to what the City did in the Springbrook Creek riparian area restoration. Mayor Hoffman asked if the Task Force discussed a budget. Ms. Frisbee recalled Ms. Gilmer's recent information that the cost would be $12,000 per acre for the five years of invasive plant removal. Councilor Tierney indicated to the Mayor that Ms. Gilmer had said that 400 acres of the City's 600 acres of open space had invasive species on them. Councilor Olson commented that a person with a scientific background told her today that one reason why Lake Oswego had more ivy than other areas was that Lake Oswego had so many trees, which ivy liked to climb. City Council Special Meeting Minutes Page 2 of 17 June 23, 2010 Councilor Jordan questioned whether the $12,000 included the erosion control needed after removing ivy in areas like Iron Mountain. Ms. Frisbee mentioned her understanding that the $12,000 included invasive species removal and native vegetation replanting for area stabilization. Mr. Praeger explained that ivy was shallow -rooted and did not necessarily prevent erosion. He confirmed the need for erosion control until the more deeply rooted native plants took hold. • Section 2: Designating Sensitive Lands, Part A: Process, Issue 1: Using the HAS system Councilor Tierney asked why 35 was the HAS score on the 0 to 100 scale for designating sensitive lands. He commented that 35 seemed to be a little bit left of middle on an arbitrary scale. Ms. Frisbee mentioned her understanding that experts trained in assessment did the numerical scoring based on thresholds and criteria. Mr. Harris directed the Councilor to Consideration 2 on p. 9, which summarized the scoring process. He said that he understood that the 35 came out of the scientific evolution of the HAS system. He described the process as discretionary but not arbitrary, as it was based on professional experience and judgment. Mayor Hoffman suggested staff follow-up on this question. Councilor Olson pointed out Consideration 2 (p.9) as addressing Councilor Jordan's question regarding assessment of the whole resource versus assessment by individual tax lot. She read a sentence from the code audit suggesting that the City look at state-of-the-art protections (p.42-43). Mr. McMurray explained that the choice of what score to set as designating sensitive lands was a policy decision made by policy makers. He commented that, while the science informed that decision, it did not make the decision because, in this case, the science provided a description of uncertainty based on speculation of results under certain conditions, as opposed to the certainty of repeatable results under certain conditions. Councilor Jordan speculated, given that the Council set the score and they now had additional information and tiers of sensitivity, they would identify more and not less natural resources on land. Mr. Johnson indicated that when DLCD reviewed Goal 5 submittals, it received a great deal of input from other federal and state agencies regarding whether the inventory, which determined the resource significance, was correct. This included evaluating whether the HAS score was too low or out of play with respect to the inventory. Mr. Sandblast read the statement on p. 9 stating that the HAS rating by itself did not determine the designation of a sensitive lands. He described the HAS score as determining whether the resource was significant enough to go through an ESEE analysis. He referenced the Task Force's description of the HAS as the scientifically adopted methodology used by the City now, which could change if the science and technology evolved an alternative methodology. He thanked Councilor Olson for pointing out the code audit language because it was a concrete example of his point last night about the need for ongoing review of the resources as well as the mapping. Councilor Johnson asked if 35 was a commonly used score in similar plans. Mr. Johnson said that 35 was a baseline based on how Lake Oswego used the HAS system. He explained that each jurisdiction weighted and designed the system differently. The 'correct' score depended on the specifics of the individual sensitive lands programs. He indicated that Metro would not establish a score, as it was interested in whether a jurisdiction did the inventory correctly, whether it did a correct analysis of the resource significance, and how it protected the resource. He clarified to the Councilor that the 'correct' HAS score depended both on how the program was shaped and on what goal it was trying to achieve. He mentioned that some communities used HAS scores on more elements than riparian areas and tree groves. City Council Special Meeting Minutes Page 3 of 17 June 23, 2010 • Section 2: Designating Sensitive Lands, Part A: Process, Issue 2: More Accurate Mapping Mr. Sandblast indicated to Councilor Tierney that the definitions section of the code (50.02) contained the definition of a tree grove. He mentioned that any stand of three or more trees constituted a grove. Mr. Powell affirmed that Mr. Sandblast's general definition, although the code went into more specifics. Councilor Tierney asked how one determined whether non-native trees did or did not contribute to the resource value. Mr. Sandblast explained that the HAS score considered the resource value. Mr. Harris clarified that the Task Force included the concept of removing non-native trees in order to provide flexibility along the margins. He described it as still restrictive, since a non- native tree could have just as much value as a native tree in terms of functions and aesthetic/historic value. Councilor Jordan spoke to developing a better definition of what was in the category of trees that the City was trying to protect. She commented that one resident could have a stand of three trees on his/her property that were not protected, while his/her neighbor, whose backyard ran into a forest, happened to have three of those trees on his/her property line, which were protected. Mr. Sandblast commented that there was a difference between designation and delineation, and between a tree grove and an inventoried resource. He stated his understanding that only tree groves that have gone through the designation process to receive an RC designation were part of the Goal 5 program. Mr. Johnson concurred. He explained that the definition gave the City a baseline to begin at in determining whether a tree grove was significant. He agreed that not every stand of three trees merited protection; it depended on the grove's context. Mr. Johnson observed that Goal 5 was the hardest of the statewide planning goals to understand in some cases. He described the lack of certainty as an important issue, which the City could best address in the long-term by delineating the resource boundaries on the ground. Councilor Tierney asked if the restrictions on back yard uses applied to tree groves identified as a resource but not delineated. Mr. Johnson stated that the Goal 5 protection regulations applied only to mapped resources that went through the full designation process; inclusion on the inventory did not constitute Goal 5 designation. Ms. Frisbee clarified to Councilor Tierney that the back yard provisions about uses in the buffer applied to a back yard with an RC designation, even if the resource has not been delineated. Councilor Olson commented that if a property was mapped and designated, the property owner could not do anything, whether the resource has been delineated or not. Councilor Olson asked if the policy on mapping of buffers referenced in Consideration 5 resulted from the housekeeping ordinance passed last spring. Ms. Frisbee recalled that the Council asked to include the buffers on the map as part of the ordinance. She clarified that the restrictions applied to buffers, whether they were on the map or not. She indicated that buffer areas were generally 25 feet from the top of the bank, but staff ran into difficulty mapping them because the resources were not uniform. Without delineating the resource, it was difficult to show the exact location of the buffer on the maps. Ms. Frisbee indicated to Councilor Johnson that most cities regulated the buffer following designation of the resource, regardless of whether the resource has been delineated. Mr. McMurray mentioned that Oregon City's map showed 100 to 200 feet of green on both sides of the resource in order to inform the public that there were buffers to the resources and avoid surprises. Councilor Olson asked whether Oregon City, Tigard, and Wilsonville showed buffers for new development and did not go into already developed backyards. Ms. Frisbee explained that each city worked off the significant resources map provided by Metro to refine what needed protection in its jurisdiction. She said that Metro looked at the resource and did not address whether City Council Special Meeting Minutes Page 4 of 17 June 23, 2010 development has already happened. She mentioned to the Councilor that the City Arborist pointed out to her that some cities did regulate tree groves, such as the City of Beaverton. Councilor Moncrieff observed that this was a confusing topic. She mentioned the concern she heard from the community that properties were arbitrarily and unfairly designated. She asked what tripped a property owner's inability to use certain areas on his/her property. Mr. Johnson reviewed the Goal 5 process. He indicated that it began with the inventory of resources (natural, historic, cultural). The next step was determining the significance of each site, for which Lake Oswego used the HAS system. Then, the jurisdiction used the significance determination to decide which resources to protect. He confirmed to Councilor Moncrieff that the HAS score happened on the ground as part of refining the baseline provided by Metro. Other state agencies provided baselines for communities outside the Metro region. Ms. Frisbee indicated to Councilor Moncrieff that an RC designation meant that someone physically assessed the resource, although not necessarily the individual property. She explained that Lake Oswego used the ESEE analysis to determine whether to designate and protect a significant resource. She mentioned that there were 50 contested cases during the 1997 mapping, but not many dropped off the map after going through the Planning Commission and City Council appeal process. Mr. Johnson commented that he chaired the Planning Commission when it heard those appeals. He recalled that the Commission took them on a case-by-case basis but in most instances, the property owner provided no new scientific evidence to provide the Commission with a basis to make any changes. Councilor Olson observed that people could appeal to the Planning Commission to challenge their scores only if they received notification that their property was mapped. She stated her understanding that individual mailed notice was not required in 1997, and therefore, not everyone received notice. She wondered what happened if the Planning Commission received only 50 appeals, most of which it did not grant, yet many properties were removed from the original maps. Ms. Frisbee indicated that there were some properties that, following evaluation, staff agreed should come off the map. She noted that, although individual notice was not required, the City records for the ESEE analysis showed that the City did give individual notice in connection with that process. She commented that the issue now was what options the City could provide property owners who believed that their properties were improperly mapped. Staff supported the Task Force recommendations to address that issue. • Section 2: Designating Sensitive Lands, Part A: Process, Issue 3: Ditches Ms. Frisbee confirmed to Councilor Moncrieff that the Task Force recommendation relating to ditches was one of the quick code fixes that staff could do immediately. Councilor Tierney recalled seeing a picture last year of two ditches on either side of Goodall Road that looked the same to him, yet only one was designated a resource. Mr. Johnson explained that one was a manmade ditch dug from scratch while the other was a stream altered by man to look like a ditch. Councilor Jordan recalled that storm water runoff also played a part. One `ditch' had plantings to shelter the water that ran in there more frequently, while the other side had occasional water draining off the property, and functioned as a `ditch.' Mr. Sandblast pointed out that the items marked with a `1' in the Task Force Recommendation Summary chart in the staff report were the specific code fixes. • Section 2: Designating Sensitive Lands, Part A: Process, Issue 4: Inventory and mapping properties outside the city City Council Special Meeting Minutes Page 5 of 17 June 23, 2010 Councilor Tierney questioned spending the City's limited resources on mapping these properties, when the Metro maps could inform a property owner that his/her land had potential for sensitive lands designation. Mr. Sandblast explained that the City has already agreed to do the planning for the land inside its USB through the Urban Growth Management Agreement (UGMA) with the County. Mr. Sandblast referenced the continual complaint heard throughout the process that citizens did not know that their land was designated. He questioned whether information at the Metro level would be distributed to citizens any better than information from the local level. He commented that if the Planning Department wanted to make the Metro map available, the map would provide the information. He pointed out that the City has already mapped these resources through the aerial and GIS maps. He observed that generating information off GIS was not a resource intensive task. Mr. Powell discussed the annexation -related reasons for mapping these properties. He mentioned the opportunity provided to the property owner to challenge the designation upon annexation through a quasi-judicial proceeding, which was in addition to his/her legislative opportunity to challenge at the time of the mapping. He explained that having this information in place allowed the City to apply all its regulations at once to the property upon annexation. Under the best interpretation of Measure 49 (if the first application of a regulation to a property diminished the property value, then compensation occurred), the City could look at the economic effect of applying all the regulations at once, as opposed to one at a time. This process usually found a net economic benefit to the property value upon annexation. He mentioned that Measure 49 also had a specific exemption for regulations applied as a result of a petition for annexation. Ms. Frisbee commented that the Task Force included the language `as resources are available' to give the Council the option to consider the resource and staffing demands entailed by this process. Section 2, Part B: Modifications to the Sensitive Lands map, Issue 5: Revising maps Ms. Frisbee verified to Councilor Moncrieff that one of the immediate code fixes on p. 4 of the staff report was a recommendation to set up a no fee process for landowners to request Sensitive Lands map corrections and to adopt annual map updates. Councilor Moncrieff observed that property owners wanted an appeal process that did not require hiring a land use attorney. Councilor Johnson asked how the map review process worked. Ms. Frisbee explained that the City sent out the Natural Resource Planner to evaluate a property reported as mapped in error. If the Planner agreed that it was a map error, then staff logged it for correction in the map correction process. She indicated that staff suggested an appeals process to the Planning Commission and City Council for those property owners who disagreed with the staff finding. In that case, the property owner should probably hire a professional to assist them in making a case for a mapping error. Councilor Johnson asked what scientific evidence a property owner needed to present during his/her appeal. Mr. Sandblast pointed out that bringing scientific evidence to the challenge was not cheap, which was something on which the City needed to be clear. A property owner could either accept the staff finding or go down the appeals path with the understanding that even a no fee appeals process was not "free;" it would cost time and money. Mr. Sandblast explained that the challenge needed to credibly question the City's methodology and knowledge database and to talk in the language in which the designation was made. Moving in the direction of a HAS score and an ESEE analysis took time and money. Mr. Praeger noted the recommendation that the City reimburse a citizen for some of his/her appeal costs, if the citizen prevailed in the appeal. City Council Special Meeting Minutes Page 6 of 17 June 23, 2010 Mr. Johnson indicated to the Mayor that many jurisdictions refunded the appeal fee if the citizen prevailed but he knew of no jurisdiction that reimbursed a landowner for the price of an environmental consultant. He commented that Lake Oswego sending out a staff person to the site in response to citizen concerns was above and beyond what most jurisdictions would do. Councilor Moncrieff asked how the Council could know whether the City staff person who did the scoring and the property owner's hired consultant were equally qualified, especially when they reached two different conclusions. Mr. Johnson indicated that qualifications were part of deciding which evidence was most credible. He emphasized that ultimately it was up to the decision makers to make that determination. Councilor Jordan pointed out that if a group of people made a joint application to take their properties off the map, then they could share the costs. She commented that if one person was able to provide scientific evidence during an appeal, and later a group of his neighbors also appealed, then they should be able to get that information. She speculated that knowing what properties had been removed from the map previously could help people. Mr. Johnson concurred. He mentioned that any new information available could also help with Periodic Review. He remarked that new information has changed maps before, either adding or subtracting properties. He commented that sometimes it was better to do a comprehensive analysis of a larger area than a property -by -property analysis. Mr. Sandblast pointed out that participating in the City's Periodic Review represented a golden opportunity to the citizen questioning his property designation because the City was sponsoring this effort and the hire of experts would not cost the citizen anything. Ms. Frisbee indicated to Councilor Tierney that the 150 1 B sites represented 150 individual tax lots. She clarified that the approximately 1400 tax lots mapped today broke down into 1,000 single-family residential lots with the remainder as public, commercial, and multi -family lots. She observed that the single family residential was the source of the conflict. She commented that resource designated properties could have more constraints on them than the resource overlays, such as steep slopes. She mentioned that the City had more properties constrained by steep slopes than properties constrained by a 50% or more resource designation. Councilor Tierney recalled that the public discussion included the question of why a property constrained by steep slopes could also have a sensitive lands designation, which further restricted the property development. Ms. Frisbee described the burden added to a building by steep slopes. She pointed out that, with most of Lake Oswego developed, the only land left was the difficult and expensive to develop lots constrained by a variety of factors. Councilor Olson asked why the City needed to keep adding new properties if its program was in substantial compliance with Metro Title 3 (Consideration 2). Ms. Frisbee indicated that adding new properties was a Council decision related to the fairness aspect of not regulating all the properties with resources on them. She confirmed that substantial compliance did not necessarily direct the City to add properties. She indicated to Mayor Hoffman that periodic review would require looking at the issue. Mr. Johnson indicated to Mayor Hoffman that it was possible that the City identifying 150 possible sites but not doing the analysis could result in DLCD returning the City's Periodic Review asking why the City did nothing with those properties. Ms. Frisbee indicated to Councilor Olson that she talked to the GIS staff today about determining how many 1 B sites would be RC or RP, which information she would share with the Council when she received it. • Section 2, Part B: Modifications to the Sensitive Lands map, Issue 6: Resources identified through public comment — Oswego Lake City Council Special Meeting Minutes Page 7 of 17 June 23, 2010 Councilor Tierney referenced the comment made last night that Mr. Johnson wanted to zone the land under the lake. Mr. Johnson commented that he had been surprised to learn that the lake was not zoned, because his 30 plus years of experience in land use planning in the Northwest was that any large body of water was usually zoned in order to regulate any potential land uses. He pointed out that someone could build a cell tower in the lake without having to go through any zoning regulations if it was not zoned. Mr. Johnson indicated to Councilor Tierney that the specific zone was up for discussion. He commented that the zone would reflect the community vision as opposed to a land use goal. He indicated to Councilor Olson that he did not think ownership, public or private, had anything to do with whether land uses should occur or not. Councilor Olson asked for clarification on the two Consideration 2s, which stated that Metro considered the lake's primary function as flood storage and flood control and that development on the lake was not considered a land use action, in combination with Recommendation 2, which suggested assessing the designation of Oswego Lake as a Goal 5 resource and whether land use and zoning regulations should apply to protect its natural resources. Mr. Owens pointed out that the considerations were not findings of fact but rather information provided to the Task Force. Councilor Olson commented that she took Metro's statement about flood storage as fact. Mr. Owens conceded the point, but reiterated that the Task Force had simply been reporting back the information presented to it. Mr. Johnson commented that the Task Force heard consistently from the community that Oswego Lake was important to the community and therefore merited some type of protection. Thus, the Task Force recommended assessing the lake as a Goal 5 resource. • Section 2, Part B: Modifications to the Sensitive Lands map, Issue 6: Resources identified through public comment — Tualatin and Willamette Rivers Councilor Olson asked how the condominiums on the river below Furnace Street fit into the greenway provisions. Mr. Sandblast indicated that at the time that the condominiums went through development review they were subject to the Willamette Greenway Provisions in effect at the time. He commented that those provisions have been consistent since their adoption, and spoke of mitigating and minimizing, landscaping and native vegetation, and buffering. Mr. Johnson pointed out that the State did not consider every segment of the greenway the same; there were different regulations for natural segments and developed segments. Councilor Tierney asked if Recommendation 2 indicated that the Task Force did not think that the Willamette Greenway adequately protected the resource. Mr. Johnson indicated that that recommendation was in response to public comment heard at the open house. Mr. Owens clarified that the Task Force agreed with all its recommendations, yet it made some recommendations in response to the public comments that fell within its charge. He said that the Task Force had no evidence that the greenway provisions were inadequate but it did not dismiss the issue and thought it merited further evaluation. Councilor Jordan asked if the Task Force heard comment from the public that further assessment would bring better clarification to the public about how these resources were currently protected. Mr. Owens stated that the Task Force did not do a comparison of the lands along the Willamette River to see whether the Willamette Greenway provisions of the Sensitive Lands Ordinance would better protect them because that was not in their charge. However, they did suggest that the Planning Department look at that. Councilor Olson commented that she shared Councilor Tierney's surprise about this issue, as she had not heard the clamoring for it. City Council Special Meeting Minutes Page 8 of 17 June 23, 2010 Section 2, Part B: Modifications to the Sensitive Lands map, Issue 6: Resources identified through public comment — Existing City parks and other areas Councilor Olson commented that she found it interesting to substitute `back yards' for `parks' in the three considerations. She noted that if it was more important that a park provide landscaping, impervious surfaces, and recreational facilities, then the City did not designate it as sensitive lands. She asked if the Task Force discussed why that was allowed for City parks but not residential back yards. Mr. Owens observed that that was a philosophical statement to which the Task Force could not respond. Mr. Sandblast stated that the Task Force did not discuss that issue. He indicated that the Task Force looked at encouraging the City to develop programs to be a leader in these areas. Ms. Frisbee confirmed to Councilor Johnson that the City could not build a soccer field on City - owned property designated as sensitive lands. She confirmed that Consideration 3 addressed the current conditions that existed. • Section 2, Part B: Modifications to the Sensitive Lands map, Issue 7: Gaps in the inventory Councilor Tierney commented that he liked the recommendation to develop a watershed -based approach. He asked, if the City implemented this recommendation, whether it could ratchet down some of its other regulations in order to provide the balance that Metro was looking for. Mr. Sandblast indicated that that was possible with the holistic approach of a watershed -based program, although it would take a while. Councilor Olson asked how the City measured the positive impact of protecting the headwater function (Consideration 1). Mr. Harris explained that staff would look at whether the headwaters had tree cover and percolation into the ground and how development impacted those functions, followed by exploring how to compensate for the impacts through mitigation. Councilor Olson asked for further discussion on Title 3 not identifying intermittent streams draining less than 50 acres (Consideration 2), and on how Title 3 and 13 differed. Mr. Sandblast noted that Title 3 was a regulatory -based program. He indicated that, as policy -makers, the Council needed to decide whether to comply with the exact language of Title 3, which did not require identifying these streams, or to regulate this community resource because it had value. Mr. Harris pointed out that eliminating all streams that drained less than 50 acres from regulation would eliminate almost the entire Springbrook Creek drainage basin from regulation. He described adopting that one provision as wiping out the City's entire stream corridor regulation policy. He mentioned that he did the analysis on the Springbrook Creek drainage area. Ms. Frisbee indicated to Councilor Tierney that there were patches of protected upland tree groves not necessarily associated with riparian areas (about 15 acres), which staff could identify. Mr. Sandblast indicated to Mayor Hoffman that the Task Force did not envision a purely voluntary approach if the City went to a watershed -based approach. He observed that there would always be some element of regulation, either to comply with State or regional requirements or to achieve community goals. He indicated to the Mayor that a watershed -based approach could not regulate tree groves, as long as it was in substantial compliance with Metro. He commented that Clean Water Services used a watershed -based approach for the entire Washington County basin. Ms. Frisbee mentioned that staff was researching how big a budget Clean Water Services had and what they spent it on. Staff's first look found that the budget was truly substantial. Mr. Johnson concurred, noting that Clean Water Services acquired conservation easements and paid people to plant trees to cool the water. He pointed out that a basin approach was about meeting water quality standards. City Council Special Meeting Minutes Page 9 of 17 June 23, 2010 Councilor Tierney commented that he saw value in looking at a watershed -based management approach because when people started to lose the linkage between water and sensitive lands, the City began losing community support for its program. He speculated that showing the benefits of the City's investment in improving its resources using citizen tax dollars would result in more community support and a better chance to improve the natural environment. He mentioned that he too tried to find out what Clean Water Services' budget was for this. He pointed out that Clean Water Services served over half a million people, which meant that there was a magnitude difference with respect to Lake Oswego. That organization might spend $10 million and Lake Oswego $500,000 for similar programs. Ms. Frisbee mentioned that Clean Water Services' 20 -year budget appeared to be almost $100 million, which translated to $5 million a year. She indicated that $350,000 would be a rough equivalent for Lake Oswego for that level of commitment. Mr. Harris pointed out that one of the benefits of the watershed approach was the ability to look at streams and upland areas and to measure the results in the stream to see if it was meeting a water quality standard or not. If so, then the City could relax some of its regulations. Councilor Jordan observed that if a current property owner was doing a great job and helping to meet water quality standards, but the City had no regulations protecting the watershed, the next property owner could do things to reverse that. Mr. Harris indicated that the two-tiered system and looking at the net environmental benefit addressed that situation. Mr. Johnson commented that this related to having the right long-term tools to meet Goal 5's mandate to protect as well as inventory. Mr. Sandblast pointed out that once the City did the analysis of the environmental issues in the watershed, it next looked at land uses, development patterns, and density transfers within the basin. This began to acknowledge property ownership, impacts to individual property owners, and compensation. He described watershed -based planning as very broad. He encouraged the Council not to let the price tag scare it because they needed a plan. He suggested working the watershed councils to bring in the experts to start some of the analysis before committing significant resources to developing the plan. He mentioned that the Task Force heard from Clean Water Services that it was getting into resource value markets where they might start trading the resource values for different uses in their district. • Section 3: Providing flexibility, Part A: Protection Measures Councilor Tierney indicated that this section confused him in regards to applicability with its references to an optional development review process (Recommendation 2, p.16), alternate discretionary development standards to allow for flexibility (sub 2), and the discretionary review process (Recommendation 6), plus the net environmental benefit. Mr. Owens clarified that all these elements were mechanisms that would work collectively to provide increased flexibility. He indicated that, while theoretically a property owner could choose not to do one of these, the Task Force presented them as a package. Mr. Sandblast explained that Recommendations 3 through 5 further described Recommendation 2, sub 1, while Recommendations 6 through 8 further described Recommendation 2, sub 2. He indicated that the net environmental benefit was a measuring stick used with the alternate discretionary standards process. He confirmed that everything was intertwined. Mayor Hoffman pointed out that the Safe Harbor approach was the clear and objective approach of the Metro model code. If a property owner did not like that approach, then he/she could go to the discretionary approach allowed under the Metro model code. Mr. Sandblast mentioned that the program overall was an intertwined system that one could not pick apart. City Council Special Meeting Minutes Page 10 of 17 June 23, 2010 Mr. Sandblast commented that the Metro model code was helpful, informative, and very complicated. He speculated that Metro's intent was for jurisdictions to use it as a resource and a template to tailor into something simpler and more user-friendly. He pointed out that the model code worked by exempting uses. He indicated that, while there were specific definitions that might be transferable, the code itself was structured very elaborately. He did not think that the Task Force advocated adopting the code as it was. Councilor Tierney asked if the Task Force discussed setting percentages for encroachment instead of specific square footages. Mr. Sandblast recalled that the Task Force decided that it would not write code and stopped its discussion. Mr. Owens mentioned that square footage standards were more commonplace and easier to administer. Ms. Frisbee recalled that the Task Force discussion went right towards a hard number in connection with code clarity concerns and clear and objective standards. Councilor Jordan asked if staff marked these recommendations as timeframe 2 in its summary table because they were code rewrites and would take longer to go through the Planning Commission. Ms. Frisbee explained that staff did not know what a net environmental benefit standard looked like, and therefore, implementing these recommendations would inevitably take longer. She indicated that the issue was not the Planning Commission but rather the level of complexity. • Section 3: Providing flexibility, Part B: Net Environmental Benefit Approach Mr. Sandblast left the meeting at this time. Mayor Hoffman recessed the meeting at 8:43 p.m. for a break. He reconvened the meeting at 8:56 p.m. Councilor Jordan asked what the Task Force meant by invasive tree species (p.17). Mr. Praeger indicated that other cities listed around 13 tree species as invasive species. He mentioned the Task Force looking at reducing barriers to stewardship -type activities, including eliminating the permit fee to remove invasive tree species, such as English holly and English hawthorn. • Section 3: Providing flexibility, Part C: Incentives Councilor Moncrieff thanked the Task Force for these recommendations, which her neighbors met with great enthusiasm. Councilor Tierney asked if the Task Force discussed credits substantively, or looked at Beaverton's program in any detail. Ms. Frisbee reported that Beaverton has not had many applicants work with their credit program. She commented that the planning staff found the idea intriguing because it related to promoting green building practices but the Task Force provided no specifics, other than encouraging staff to look at credits. Mr. Praeger indicated to Councilor Tierney that Beaverton incorporated removal of invasive species into their habitat -friendly building practices. Councilor Tierney commented that he found that those practices focused more on building something, while he saw the Task Force recommendations geared more toward motivating someone to remove invasive species. Councilor Jordan suggested working with property owners on erosion control, since it would take a while for the native plant species to establish themselves following removal of the invasive species. Councilor Olson asked if the Task Force discussed property tax reductions or payments for loss of value as incentives. Mr. Johnson indicated that the Task Force had some general discussions along those lines but tax break programs involved a legislative change at the State level. Ms. Frisbee reported that Mr. Boone researched other jurisdictions in the Metro region to see if any had programs to promote tax breaks but none did. She clarified to the Councilor that the State had authorizing legislation allowing local governments to develop a program, but, without a model program, staff was not certain where to start in developing one. City Council Special Meeting Minutes Page 11 of 17 June 23, 2010 Mr. Harris commented that help with the permitting process would be an incentive for someone wanting to do a riparian restoration. He indicated that getting State or Corps permits could be an onerous task. Mr. Owens noted the fee reductions and fee waivers identified in later recommendations. Ms. Frisbee mentioned that the back yard visit with a naturalist program that the City partnered with the Tryon Creek Friends on last year was very successful with around 40 visits. She pointed out that one-on-one in someone's back yard was the best way to make progress. She indicated that staff was looking at the costs of quadrupling the amount of participation each year. She noted another possibility of arborist visiting people with tree groves to discuss concerns such as tree health and thinning practices. Councilor Jordan mentioned other resources, such as the Clackamas County Soil and Water Conservation District and the County Extension Service. Ms. Frisbee noted the Task Force's suggestion to look at a master naturalist certification program, such as the one that Oregon State University was developing. She commented that a master naturalist would work more specifically on resource protection during a backyard visit. Councilor Jordan suggested offering scholarships to go through the program. Mr. Johnson mentioned that the Clackamas Soil and Water Conservation District had both a rural conservation program and a relatively new urban conservation program. He said that the District had many technical resources available that were not just for farmers. He noted that the watershed councils worked closely with the District. He commented that there was a lot of long- term potential at the District that cities did not look at because they assumed the District only had a rural program. • Section 3: Providing flexibility, Part D: Highly Constrained Lots Councilor Moncrieff asked for more explanation on Recommendation 1, bullet point 3 (p.19). Mr. Owens explained that the bullet points were examples of the potential flexibility possible with a discretionary review process. He said that the Task Force looked at one site where putting more density on it would provide more resource protection than permissible under the current standards. He commented that the operative word was `investigate,' as the Task Force did not have an opportunity to assess the consequences of allowing that exception but it thought that it merited further evaluation. Councilor Tierney asked if the Planning staff was comfortable with the recommendations leading towards more discretion at the staff level. He described the hit on the planning staff from both sides: having so much discretion that it was abused and having such tight regulations that there was no discretion. Ms. Frisbee indicated that the staff was not 100% comfortable, which was why they asked for time to develop the standards. Ms. Frisbee discussed the problem of expectations. A discretionary process built the expectation in the applicant that he/she would get what he/she wanted with more time and expense. She noted that the Task Force was not recommending that, but rather it was recommending an overarching requirement to avoid, minimize, and mitigate coupled with a net environmental benefit evaluation. She agreed that exercising discretionary review could be a difficult situation for staff. Councilor Jordan wondered whether the Comprehensive Plan review would answer these net environmental benefit questions, if the discussion centered on zoning and density issues. Ms. Frisbee indicated that the discretionary process did not say to allow more density but it could provide a way for a fully encumbered lot to get more density. She commented that the density issue was tough because of neighborhood expectations based on the zoning. She reiterated that staff did not include this in the immediate fixes because they wanted to provide more flexibility in the difficult settings but it was hard to see exactly how to do that. She noted the flexibility allowed in the current code by permitting a property owner to protect only 50% of the tree grove and by allowing setback adjustments when necessary to accommodate resource protections. City Council Special Meeting Minutes Page 12 of 17 June 23, 2010 She mentioned the constrained feeling of property owners on very difficult to develop lots. She wondered whether people with steep slopes felt equally constrained, which raised the issue of how to make the regulations fair across the board. Councilor Olson commented that the difference she saw between steep slopes and an overlay was that the City did not impose steep slopes on the property owner. Councilor Olson indicated that the reason given for retaining the current zoning standard for the limited number of highly constrained lots (Recommendation 1) seemed backwards to her. Mr. Owens explained that, given that these lots were highly constrained and that the City already developed a standard that provided more flexibility than the code normally provided, it made sense to the Task Force to retain that standard. He indicated that the Task Force researched this issue at other jurisdictions and discussed a wide variety of standards but concluded that retaining this standard made the most sense. He noted that the Task Force included the second part in recognition that properties getting near the 75% threshold also needed more discretion. Mr. Owens confirmed to Mayor Hoffman that the Task Force did look at other methodologies from other jurisdictions with respect to Recommendation 1, as cited in Consideration 4. He indicated that he did not remember if the City of Portland standards were similar. • Section 4: Improving the permitting process Councilor Jordan asked if a citizen coming to the Planning counter with a question about a property that might have been designated sensitive lands would deal with a specific person throughout the whole process. Ms. Frisbee indicated that the two counter planners could field the obvious and straightforward questions, but if the situation required an on site visit, then the Natural Resource Planner would do that. While the Natural Resource Planner would help identify the buffer area and help with delineation on a site with a buffer area, the rest of the application would go through the normal process. Councilor Olson commented that the first bullet on No. 12, suggesting a $3 per household utility fee across the city to pay for public outreach, seemed out of place in a section discussing fee reductions and fee waivers. Mr. Owens agreed that it was probably out of place. He explained that this fee was an example of a method for financing public education and resource restoration, and not a definite recommendation. Ms. Frisbee indicated to Councilor Olson that the Task Force discussed the reimbursement of appeal fees for both designations and delineations. She clarified that if a resident lost the delineation appeal, the property was not automatically delineated if the owner choose not to develop it. Ms. Holen noted the clarification of Consideration 4 on p. 20 in the staff clarification of Task Force findings (p.2). Ms. Frisbee pointed out that the hefty fees associated with the code amendment process required to modify a delineation prompted the Task Force to look at changing the fee structure in order to make things easier on property owners. She mentioned that it might not be a complete waiver because a Comprehensive Plan amendment did take staff, Planning Commission, and City Council time. Ms. Frisbee confirmed to Mayor Hoffman that the reimbursement of appeal fees for successful appeals applied to both designation and delineation. She explained to the Mayor that this was a Comprehensive Plan issue because removing a property from the inventory involved a map change. Mr. Owens commented that the staff clarifications report needed to accompany the Task Force report because the Task Force did not always get the language right in presenting the concepts. Ms. Frisbee indicated to Councilor Tierney that staff would use the principles of the code audit to re -vamp the sensitive lands chapter in the code, given how many code changes the recommendations proposed. She mentioned that the code audit consultants recommended another approach to simplifying the code that made a lot of sense. Councilor Tierney commented City Council Special Meeting Minutes Page 13 of 17 June 23, 2010 that he would not support a consultant to do this work. He suggested waiting on this until after the City made the many changes. Councilor Tierney remarked that he had been able to read the Beaverton and Clean Water Services documents but the Lake Oswego document was very challenging to understand, partly due to its formatting. He suggested discussing the issue at a policy level. • Section 5: Increasing public awareness Ms. Frisbee confirmed to Councilor Olson that the City Code required filing a notice of development restriction with the County for the RC overlay, and not the RP overlay. She explained that staff has been requiring a similar filing for the RP overlay for the last five years as a means of notifying potential buyers of the set aside areas in which no construction, such as a deck, was allowed. She pointed out that if notice was not available through some other method than the Planning Counter staff, it would make it difficult to improve customer service and the interaction between the Planning staff and the property owners. She confirmed that staff required this only of new development. Councilor Johnson asked if Lake Oswego had many invasive trees. Mr. Praeger indicated that invasive trees were common. He mentioned speaking with many arborists who expressed frustration at the City's permitting process just to remove trees that everyone wanted gone. Mr. Johnson indicated to Councilor Olson that the Task Force did discuss requiring disclosure statements for the sale of properties, instead of only promoting them. He mentioned that it was not an uncommon requirement all over the state for title reports, as it provided certainty up front and eliminated surprises for those who read their title reports. He commented that the chances were that a buyer would not know about any restriction on property not included in the title report until he/she ran into it when trying to do something on his/her property. Mr. Praeger mentioned that he suggested using disclosure statements based on his experience at the City of San Francisco, which required a street tree disclosure statement when properties were bought and sold. He commented that, given the other types of minute things disclosed, sensitive lands seemed like a large issue that people would want to know about. Mr. Hedges commented that it was a Catch-22 because advance notice could and has killed many property sales. Councilor Jordan referenced her experience as a realtor in speaking of a State -mandated disclosure statement in the Metro region at property transfers. She argued that this would level the playing field across the region. She commented that this issue would not be a concern if everybody did it. She suggested putting this item on the legislative agenda for the coming legislature. Mr. Owens confirmed to Mayor Hoffman that the Task Force's intent was to promote the use of disclosure statements if a property had an RC or an RP overlay on it. Mr. Johnson indicated to Councilor Jordan that the current disclosure statements did not require a property owner to tell a buyer if there was an overlay on the property. He explained that State law only required a statement directing the new buyer to check with the local planning office regarding the land use restrictions in place. Mr. Owens indicated to Mayor Hoffman that the Task Force's research did not find any examples of property owners in any other jurisdiction contending that these kinds of disclosure statements reduced property values. Councilor Olson recalled hearing, as Mr. Hedges apparently did, that several sales have fallen through because the properties were mapped. Councilor Tierney argued that if a property had an RC or an RP designation in place, then it was only fair to disclose that information to a prospective buyer. He indicated that he did not see disclosure as a deed -altering action. Councilor Olson mentioned that she knew of several instances in which the seller had not known that the City mapped the property and therefore could not disclose that information. She City Council Special Meeting Minutes Page 14 of 17 June 23, 2010 referenced a disclosure statement she found in her papers that listed several items for disclosure under a Title section. She commented that she did not know if that meant a seller only had to disclosure things on the title. Mayor Hoffman noted that the policy issue of this track was whether the City would require including any overlay on a disclosure statement, including the neighborhood overlays. Councilor Tierney observed that many of the Task Force recommendations spoke to making sure that people on sensitive lands knew about it. Councilor Olson commented that the concern was that a property without sensitive lands designation sitting next to a property with the designation would sell, while the sensitive lands property would not sell. Councilor Johnson commented that people should know what was required on their land no matter what. She argued that the real issue that the Council should focus on was how to fix the problems with the City's Sensitive Lands program. She agreed that people should know if a property had sensitive lands on it. Mr. McMurray commented that he saw part of the fix as getting rid of the words `sensitive lands' and packaging the program in a more positive way so that people saw resources as a benefit as opposed to a drawback. A property owner had both the responsibility for and the enjoyment of trees and streams. He spoke of creating a positive environment within the City and the regulations. • Complementary Recommendations, Part A: Minimum maintenance standards Mr. Owens indicated to Councilor Tierney that Recommendation 6 addressed the maintenance requirements, although the Task Force did not go into detail. He acknowledged the Councilor's point that the heading did not fully correspond to the contents. Councilor Tierney asked if the Task Force envisioned the City leading by example as the City doing this first before asking others or the City working concurrently with others. Mr. Praeger concurred that the City should lead by example. He spoke of those not living on sensitive lands doing what they could to help sensitive lands property owners maintain their properties, such as removing invasive plants on their properties in order to reduce the pressure on the sensitive lands properties. Councilor Tierney asked why Recommendation 3 required an arborist and photo documentation to remove an invasive tree. Mr. Praeger explained that the intent of this recommendation was to protect the tree owner in the event that someone challenged the tree removal. He indicated that the tree owner could provide either a photo or written documentation as sufficient proof. Councilor Olson questioned the recommendation to add new regulations for tree maintenance. Mr. Praeger commented that it had always struck him how the City had great protections for trees and yet did not require tree owners to remove the ivy that could kill the tree. He confirmed to Mayor Hoffman that the Task Force recommended adding to the tree code a requirement that tree owners remove the ivy from their trees. Councilor Johnson suggested looking at this recommendation in the incentives category as well. Councilor Jordan commented that this recommendation reflected a holistic viewpoint of property owners sharing the responsibility for maintaining the quality environment in Lake Oswego, rather than focusing on a few properties in the city. Mayor Hoffman pointed out that the best explanation for Recommendation 6 was Consideration 2. • Complementary Recommendations, Part B: Prioritizing code enforcement Mr. Praeger indicated to Mayor Hoffman that this last recommendation came from his experience at Tigard, where the City spent a lot of time telling people to cut their grass. He noted that the Lake Oswego Code prohibited any weeds over 10 inches tall in the entire city. He suggested that City Council Special Meeting Minutes Page 15 of 17 June 23, 2010 it was better to focus the City's efforts on controlling invasive species than telling people to mow their lawns. Mayor Hoffman asked why requiring people to remove ivy and blackberries from their back yards would help sensitive lands. Mr. Praeger described how ivy used trees as a crutch for spreading its seed. Council Questions Councilor Olson referenced the appraisal report from Rick Walker found in the staff report, in which he compared sales of sensitive lands properties. She asked if the seller had disclosed the sensitive lands to the buyer. Ms. Frisbee said that she did not know. Councilor Olson commented that Mr. Walker's report was meaningless to her without that information because one could not conclude that sensitive lands did not influence the sale price unless the buyer knew about the sensitive lands. Mayor Hoffman cited his experience in working with appraisers as part of his job. He explained that an appraiser assumed that the parties involved in a willing sale knew what the underlying zoning was on a property. Councilor Olson recalled the trampoline case in which the buyer had not known about the sensitive lands because the seller had not known and did not tell her. She argued that if Mr. Walker used that case as one of the houses in his report, then he could not say that the price was not affected by sensitive lands because that factor had been an unknown. She held that it was not a legitimate comparison. Mayor Hoffman indicated that the appraiser was available to discuss his assumptions with Councilor Olson, if she so desired. Mr. Powell answered the question Councilor Olson raised earlier about the non -applicability of the Sensitive Lands Ordinance to resources located within the boundaries of a partition, subdivision, planned development, or lot line adjustment approved prior to August 21, 1997 (LOC 50.16.01(6)). He noted the two conditions on that provision: 1) if the resource was identified and protected pursuant to the regulations in effect at the time of approval, and 2) if the proposed development was in compliance with the conditions protecting the resource at the time of approval. He mentioned the direction to use the new standards if there was any modification that would impact the resource or the protection measures. He explained that if a subdivision was built under the old Lake Oswego Development Standards 3 and 4 (which related to stream corridors and wetlands), then the provisions of those standards applied to the lots within that subdivision with those protected resources and not the newer Sensitive Lands Ordinance provisions. He commented that the old development standards were less flexible and some people preferred to be under the newer ordinance. He clarified that if that subdivision had an upland tree grove that was not protected before 1997, then that upland tree grove fell under the newer ordinance because it had not been protected and there was nothing to grandfather in. Public Outreach Mayor Hoffman indicated to Councilor Olson that Ms. Christie compiled all the e-mails received from the public in the notebook. He mentioned that he has not seen any new e-mails come in during the meetings. Ms. Frisbee described the procedure for the Tuesday night meeting. She indicated that the panel representing an array of views consisted of two members of the Lake Oswego Stewards Group, one member from the Oregon League of Conservation Voters, one member from the Audubon Society, two Task Force members, and Mike Buck. Mayor Hoffman mentioned that if they had a large group of citizens show up, then the Council would need to decide whether to reduce the allotted five minutes to three minutes. Councilor City Council Special Meeting Minutes Page 16 of 17 June 23, 2010 Tierney suggested setting either a five-minute or a three-minute time limit now so that people could prepare their remarks appropriately. Ms. Frisbee confirmed to Councilor Olson that each panel member had five minutes. Councilor Olson questioned why Mr. Buck would get more time than any other citizen would. Mayor Hoffman explained that the idea behind the panel was to allow issues to be brought to the Council that might represent other individuals who did not want to testify before the Council but would like their position expressed articulately. Mayor Hoffman recommended limiting the time to three minutes in order to allow more people to present their comments to Council. He emphasized that this was a public listening and not a debate. Councilor Olson asked why the League of Conservation Voters was included on the panel when the organization as such has not been involved, although the person speaking for them has been involved. Ms. Frisbee indicated that staff did not pick organizations to represent but rather a representative array of viewpoints. She noted that the panel testified at the Council's pleasure. Councilor Olson commented that she thought the panel ate into the citizens' time. Councilor Moncrieff indicated that she thought that the panel was an excellent idea for representing the viewpoints of citizens who did not feel comfortable speaking in public. She encouraged citizens to send their comments to Council by e-mail or written letters so that they got into the public record. Mayor Hoffman also encouraged the citizens to submit their comments. Mayor Hoffman suggested that the Council keep in mind the staff groupings of the recommendations as described on pp.4-5 of the staff report. Councilor Jordan indicated that she would like to hear what people found positive about the Second Look Task Force's work. 4. ADJOURNMENT Mayor Hoffman adjourned the meeting at 10:10 p.m. Respectfully submitted, Robyn Christie City Recorder APPROVED BY THE CITY COUNCIL: ON November 2, 2010 Jack D. Hoffman, Mayor City Council Special Meeting Minutes Page 17 of 17 June 23, 2010 LUM09WWO CITY COUNCIL SPECIAL MEETING MINUTES September 28, 2010 Mayor Jack Hoffman called the special City Council meeting to order at 6:33 p.m. on September 28, 2010, in the City Council Chambers, 380 A Avenue. Present: Mayor Hoffman, Councilors Hennagin, Olson, Moncrieff, Tierney, Jordan, and Vizzini. Staff Present: Alex McIntyre, City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Brant Williams, Director of Economic and Capital Development; Interim Police Chief Don Forman 3. STUDY SESSION 3.1 Lake Oswego to Portland Transit Project Briefing Mr. Williams introduced Doug Obleitz, Project Manager, Shelley Lomax, TriMet, Dennis Van Dyke, TriMet, and Karen Withrow, Metro. He mentioned that he was working on answering the 80 plus questions he received from Council regarding this project. • Draft Environmental Impact Statement (DEIS) Mr. Obleitz reported on the status of the Draft Environmental Impact Statement (DEIS). He said that last week they submitted the third and final draft to the Federal Transit Agency (FTA) for its review. He explained that the FTA owned the document and had to give permission to publish the document in the Federal Register. He mentioned their expectation of receiving comments on the third draft from the FTA expeditiously. He mentioned that if the scheduled publication date of November 19 held true, the 45 -day public comment period (including open houses and public hearings) would commence, closing on January 7. He indicated that any comments received would go to the Steering Committee as part of the Locally Preferred Alternative (LPA) process in 2011. He reviewed the LPA process steps, culminating with the LPA approval by the Metro Council in late winter 2011. He explained that the LPA would be the selected mode from the three options analyzed in the DEIS (no build, enhanced bus, and streetcar). He mentioned that it would also address the selection of design options in Lake Oswego. He indicated that the handout summarized the three workshops held with the Community Advisory Committee (CAC) and the feedback received from the Lake Oswego, Riverdale/Dunthorpe, and John's Landing areas. • Transit Project PowerPoint Presentation Mr. Obleitz gave a PowerPoint presentation "Lake Oswego to Portland Transit Project". He read the list of issues covered with the CAC (Slide 1). He addressed a question frequently raised with respect to ridership: How well did TriMet do in projecting ridership figures? He mentioned that Metro was known nationally for its modeling. He reviewed the information on Slide 2 showing Metro's projections for the various transit and/or light rail projects in the Metro area and the actual ridership numbers. He noted that Metro has done a good job of projecting ridership. He clarified that the Portland Streetcar numbers were not from Metro, since that had been a locally funded project with no federal dollars and no requirement to follow the FTA guidelines for modeling. However, the organization did its own modeling. City Council Special Meeting Minutes Page 1 of 16 September 28, 2010 Mr. Obleitz indicated to Councilor Olson that they used the terms `ridership', `boardings', and `trips' interchangeably. He confirmed that a round trip would count as two trips, one going, and one returning. He explained that they projected the ridership figures for the three options for the Lake Oswego transit line only to the South Waterfront because the streetcar currently went to the South Waterfront, and they did not want the double counting that would happen if they projected the Lake Oswego line into the Portland downtown. He reviewed the projected numbers (Slide 3). He noted that the enhanced bus service was not an express service but rather an upgraded, faster service for Line 35. He indicated that the streetcar had more riders the more it stayed within the Willamette Shoreline right-of-way because it operated faster than if the alignment jogged onto Macadam Ave and into the John's Landing area. He indicated to Councilor Vizzini that the modeling did not find the ridership significantly different in the John's Landing area. He discussed travel times to PSU Urban Center, Portland City Hall, and Pioneer Square (Slide 4). He noted that the travel times did not include the time it would take to get from a house in Lake Oswego to the Lake Oswego terminus. Councilor Olson mentioned hearing from others associated with this project that the FTA did not allow the use of population numbers other than the current numbers. She wondered about the 2035 ridership numbers. Mr. Williams explained that the DEIS looked at the existing zoning and what could potentially develop in those areas. The modeling showed the areas in Foothills not zoned industrial, such as Oswego Pointe, that could re-develop to a significantly higher density. He noted that the planning also included some development out in the Stafford area. Councilor Olson commented that she had understood that the CAC had been told that the ridership numbers did not include Foothills and Stafford. Karen Withrow, Metro, clarified that the distinction was that the population employment forecast that informed the model looked at the whole region, including estimated growth in Lake Oswego under current zoning and some assumptions about areas such as Stafford, in determining the ridership numbers. Ms. Withrow explained that, while the DEIS could only look at what was allowed under the current zoning, Metro also looked at the economic development potential of changed zoning. She confirmed to Councilor Jordan that the model included the capacity of Stafford under the current County zoning, and not its potential as urban reserves. Mr. Obleitz indicated to Councilor Vizzini that they assumed the same number of stops for the enhanced bus as for the streetcar from the Sellwood Bridge to the Tram, which were fewer than the current stops of Lines 35 and 36. He reiterated to the Councilor that the ridership numbers were based on current zoning, and acknowledged that there was interest in upzoning to higher densities in areas along the Macadam corridor, such as in the John's Landing and Corbett neighborhoods. He reviewed the noise and vibration mitigations suggested by the tests conducted as part of the DEIS (Slides 5-6). He mentioned that they could build low sound walls for streetcars because the noise came at the wheel level. He indicated that TriMet was getting good at dealing with noise issues in residential areas and had multiple methods for mitigating noise and vibration. He explained that a ballast mat was the use of rock as a lining for the rails. He noted that the streetcar currently was almost exclusively paved track in the South Waterfront area. He spoke of keeping the wheels round (they developed flat spots sometimes) to reduce noise. He indicated that mitigation of the potential noise and vibration impacts of the streetcar would reduce the impacts to zero (Slide 7). He noted the areas potentially impacted (Slide 8): Riverdale/Dunthorpe and John's Landing. He mentioned that the Willamette Shoreline track ran within a dozen feet of some houses and decks in some locations in the John's Landing neighborhood. He spoke of possible design changes, including moving the alignment to Macadam or Riverwood Road. He commented that they found no noise and vibration impacts for enhanced City Council Special Meeting Minutes Page 2 of 16 September 28, 2010 bus (Slide 9). Councilor Hennagin observed that .01 % meant one bus for every 10,000 cars. Mr. Obleitz indicated that the figure should be one bus for every 1,000 cars. Mr. Obleitz presented a comparison of the transit capacities of the three modes on Highway 43 at peak hour traffic (Slide 10). He noted that the streetcar could provide more carrying capacity than the no -build or enhanced bus options. He discussed Slide 11, showing the Highway 43 peak hour auto capacity. He observed that more buses on the road meant more interruptions to auto traffic and frustrations for drivers. He discussed the estimated annual operations and maintenance costs (Slide 12), shown in 2035 dollars. He explained that the streetcar cost almost $1 million less per year to operate than the enhanced bus service because it had more people per operator, which meant lower labor costs. He cautioned the Council that TriMet was fine-tuning these numbers now, and they could shift by the time the DEIS came out. He indicated to Councilor Vizzini that streetcars had a longer useful life than buses. He discussed the estimated capital costs for construction (Slide 13), using 2017 dollars (year of construction). He explained that the $379.6 million for the streetcar low was almost $289 million in 2010 dollars, while the $458 million for the streetcar high was $347 million in 2010 dollars. He indicated that the enhanced bus figure of $51 million would be $37.8 million in 2010 dollars. Councilor Olson observed that $400 million divided by $1 million a year in savings meant that it would take 400 years to recoup the costs. Mr. Obleitz explained to Councilor Tierney that finance referred to the local agencies having to borrow money against the anticipation of the federal revenue appropriations. He said that the FTA now considered those as eligible project costs. Escalation was the construction inflation estimate of 3 to 4%. He discussed the potential funding resources (Slide 14). He indicated that they based the federal funds on an anticipated 60% federal funding level. He explained that they felt this was a reasonable planning assumption because it was a smaller project than the $1 billion plus Portland- Milwaukie project, which ended up at the 50% funding level for mega -projects. He emphasized the critical piece of the local jurisdictions' ownership of the Willamette Shoreline right-of-way ($94 to $97 million in 2017 dollars) as part of the local match, which reduced this to a relatively low cost project ($217 to $274 million in 2010 dollars). He noted that the right-of-way value in 2010 dollars ranged from $71.6 million to $73 million. Councilor Vizzini asked why the difference between the right-of-way land value and the sensitive lands value was more meaningful in the streetcar low estimate. Mr. Obleitz indicated the other right-of-way components that played into the equation. He explained that a cost in both the enhanced bus and streetcar scenarios was the acquisition of right-of-way for a park and ride, although the extent of that right-of-way varied with each scenario. He mentioned that if they moved the streetcar alignment to Macadam, then they lost that portion of the Willamette Shoreline right-of-way for the local match, and the Macadam right-of-way was not eligible as a local match resource. Councilor Hennagin commented that he had thought that the low estimate for the streetcar meant keeping it in the Willamette Shoreline right-of-way all the way to Portland, and the high estimate was for the Macadam and Riverwood alignment. Mr. Obleitz confirmed that the other factors outweighed that difference. Mr. Obleitz indicated to Councilor Olson that, while they might get an updated appraisal soon, they would not do a full re -appraisal of the right-of-way until they got closer to needing to establish the value for the full funding grant agreement, which was perhaps two or more years away. He said that they were using the 2008 appraisal value. Mr. Williams explained that the right-of-way value was over $100 million, but he took out the property north of the project limits. That reduced the available value to $85 to $90 million. City Council Special Meeting Minutes Page 3 of 16 September 28, 2010 Mr. Obleitz indicated to Councilor Tierney that there was no rule of thumb for estimating what Lake Oswego's share would be of the local match dollars. He said that they would get into more detail on the financing plan after the LPA decision. He explained that, in these sorts of projects, they had to identify a variety of sources from different entities, and then figure out how to fill up the pot. Although they could not project Lake Oswego's share at this time, they would be developing alternative funding sources over the next 18 months and setting targets. Mr. Williams indicated to Councilor Hennagin that the local communities had full discretion to decide how to pay for their share of the local share. He mentioned possible Lake Oswego funding sources of tax increment financing, system development charges, local improvement districts, and private investment dollars. He stated that he did not foresee using general fund money (property taxes) for this project. Councilor Hennagin concurred. Mayor Hoffman agreed that the use of property taxes or GO bonds as part of the local match was a non-starter from the Lake Oswego side. He remarked that this Council might at some point feel comfortable in formally stating its resolve not to raise property taxes. Mr. Williams commented that one of his challenges in developing a funding strategy has been to look for funding sources that would potentially benefit from this transit line. Mayor Hoffman asked for a nod of heads from all Councilors agreeing that this Council would not advocate for either a GO bond or higher property taxes to fund this project. Councilor Tierney questioned how the Council could pick an LPA without knowing the financial cost to the community. Mr. Williams clarified that the LPA decision did not mean that the option selected would get built. That decision simply moved the process forward to the next phase of preliminary design and funding strategy development. He said that the City would not commit to a project until it had a full funding grant agreement with the FTA (probably in 2014), which required a commitment from all the funding sources. Mr. Williams indicated to Councilor Tierney that, while staff would have a total amount required for the local match (a number subject to change during the design phase), they would not have it broken down into the individual contributions by each jurisdiction. Councilor Olson asked if there has ever been an LPA selected and the project not done. Mr. Obleitz mentioned that the voters turned down the original south -north light rail project. Councilor Olson pointed out that that had been when voters got to vote on the project; since then, the public no longer voted on these projects. She asked if it has happened since then. Mr. Williams said not to his knowledge. He credited Metro and TriMet for laying the groundwork that allowed these projects to get done by developing funding strategies that worked for each jurisdiction. Mr. Obleitz presented a comparison of the three alternatives in six factors (Slide 15). He noted that the streetcar had a better or best rating in all categories except capital cost. He introduced Shelley Lomax, TriMet Executive Director of Operations and former Director of Security and Safety, Dennis Van Dyke, TriMet Operations Department, Transit Police Commander Mike Krebs, and Lake Oswego Police Chief Don Forman. • Safety and Security Ms. Lomax explained that she had been responsible for the safety certification on both the Green Line and WES. She mentioned her understanding that the governance of this project has not yet been decided. She stated TriMet's definition of safety: freedom from unintentional dangers (i.e., slips, trips, falls). She gave TriMet's definition of security: freedom from intentional dangers (i.e., the bad guys out to do harm). She indicated that both TriMet's system safety and security plans were clearly laid out with clear lines of authority and assigned duties, and updated annually. She observed that the Portland police shared the security plan's goal to reduce crime and the fear of crime on their system. She discussed the Transit Police, overseen by Commander Krebs of the Portland Police Bureau, City Council Special Meeting Minutes Page 4 of 16 September 28, 2010 serving under a contract. She mentioned that the over 50 sworn officers in the unit came from the various jurisdictions served by TriMet. These officers informed TriMet of areas of concern within their jurisdictions, and then returned to their units with an in-depth knowledge of how they could partner with TriMet and other jurisdictions to make things better in their own communities in general. She spoke of the TriMet Police Partners Forum, a quarterly meeting of representatives from all the participating agencies to discuss what was going on in the community. Mayor Hoffman asked for discussion of the safety concerns brought up at the last CAC meeting in July. Ms. Lomax indicated that TriMet moved a small city every day. With over 315,000 rides a day, they had approximately three reported crimes a day; more than half of those were minor. Mr. Williams indicated that staff's intent was to share TriMet's model as one option, given that they have not yet determined the governance of the Lake Oswego to Portland streetcar. He commented that TriMet had a good system in place to insure that crime did not become a problem. He mentioned that Chief Forman did some background research on different issues and talked to professionals around the region about different systems. Chief Forman reported on his research and the professionals with whom he spoke, including Portland Streetcar, Wilsonville Police Chief Nick Watt, Commander Mike Krebs, and Mark Johnson, Director of Transit Operations for the Eugene/Springfield MX enhanced bus system. He indicated that Portland Streetcar relied on the Portland Police Bureau for any safety and security issues on the line on an on call basis, and not on the TriMet Transit Police. He noted that the Transit Police would assist if nearby, as any police department would do. He reported that Chief Watt of Wilsonville described the WES (commuter rail line) as well-run and a welcome addition to his community. He said that Chief Watt recalled that there were concerns that there might be problems in a rough area near the terminus of WES, but there have been no problems whatsoever in that area. In the past year, there have been three car prowls at the Park and Ride lot. He described the MX enhanced bus system at Eugene/Springfield as operating similarly to rail with doors on both sides of the buses and platforms as well as stops in the middle of roadways. He indicated that the ridership was mainly University of Oregon students and commuters. A private security contractor provided security for the line with cameras on the buses and at the platforms and stops and enforcement of the ridership ordinances and rules, including a no tolerance policy. He mentioned Mr. Johnson's comment that they had more problems with the rest of their bus system than on the enhanced bus system. He commented that all those with whom he spoke indicated that the factors to consider with respect to crime or problems were ridership and the area to be served. Ms. Lomax concurred that one had to plan for what was going on in the areas to be served. She indicated that one of the first things required by the FTA on these projects was a preliminary hazard analysis, which TriMet conducted in partnership with the participating communities. Chief Forman commented that the Lake Oswego community set the tone for what went on in the community relative to quality of life issues. He noted that if the community saw a condition that was not acceptable, they reported it and the police responded to take care of the issue. He pointed out that Lake Oswego had a municipal court and therefore could address behaviors related to transit in town on a daily basis. • Council Questions Mayor Hoffman noted the two items of concern raised by the community over the years with respect to a streetcar: increased crime in Lake Oswego and transporting into the community "undesirables" who might cause problems. Ms. Lomax indicated that that was a very common fear. She recalled similar concerns expressed about the Yellow Line, which went through some bad areas. She indicated that today things were flourishing around the Yellow Line on Interstate and Lombard; it was a model of what transit could do for a community. City Council Special Meeting Minutes Page 5 of 16 September 28, 2010 Commander Krebs agreed with Chief Forman that the community set the tone. He commented that if he were a criminal, he could not come to Lake Oswego to commit a crime because of the security cameras on the trains and buses and because Lake Oswego citizens paid attention to what went on in their community and reported loiterers to the police. He observed that Lake Oswego was not one of the communities that was more tolerant of some crimes. Ms. Lomax indicated to Councilor Vizzini that the transportation mode (rail or bus) could make a difference in crime activity. She said that they tended to have fewer problems on buses because the operator was right there. However, on an overall per capita basis, it was a tough comparison between rail and bus. Councilor Vizzini commented that the Clackamas Town Center statistics showed an increase in crime (primarily shoplifting) at the Center itself, as opposed to on the MAX line. Ms. Lomax commented that she has not looked at the Town Center stats but she did know that the transit line has seen a double-digit reduction in reported crimes in the last two calendar years. Chief Forman indicated that he has looked at those statistics. He observed that statistical figures were not always what they seemed. He explained that one had to mine police statistics deeply and identify all the variables affecting any given statistic, such as shoplifting being up 140% at JC Penney's at the Town Center. He mentioned that the information behind the Clackamas Town Center statistics that would explain those statistics was not available. He described how police self -initiated activity — in which the police targeted a certain violation or a certain area for a concentrated policing effort— could create a misleading statistic. If the police targeted talking on cell phones while driving and wrote 50 citations in one day, that did not mean that there was a huge increase in the use of cell phones while driving in Lake Oswego. Councilor Jordan mentioned hearing that the Clackamas Town Center management reduced its security staff. She agreed that they had to look at this information from all sides, as one number did not tell the whole story. Commander Krebs reported that the head of security at the Clackamas Town Center told him that they were not seeing the Green Line bringing many problems to the Center. Commander Krebs indicated to Councilor Hennagin that his understanding from the Downtown Central Precinct officers handling streetcar issues was that officers did not ride the streetcar but rather responded on an on call basis. He mentioned that the transit police rode trains and buses quite often. Councilor Hennagin observed that the streetcar was more like a bus in that the operator could see what was going on throughout the streetcar. Chief Forman noted that the private security for the MX enhanced bus system in Eugene/Springfield rode the buses randomly. Councilor Jordan asked if there was a mix of local police and transit police handling the oversight of the platform and terminus areas. Commander Krebs said that region wide the local police had control over the bus stops in their jurisdictions. He described the transit police as an overlay for the local police department. He indicated that the mutual aid rendered by one police department to another also came into play. Ms. Lomax mentioned that TriMet did pay attention to the statistics and moved resources to address issues as quickly as possible. Councilor Vizzini asked if TriMet saw spikes of criminal activity during certain hours of operation. Ms. Lomax said that it depended on the type of criminal activity. She gave the example of car prowls, which occurred most often on Wednesdays with few if any car break-ins on Thursdays and Fridays. Commander Krebs indicated that they saw disorderlies on the train and bus after dark and car break-ins during the day. Mayor Hoffman asked if TriMet anticipated seeing any change in the number of incidents currently reported for Lines 35 and 36 for bus rapid transit or streetcar in the future. Ms. Lomax indicated that she expected any change to be negligible because Lake Oswego's current ridership City Council Special Meeting Minutes Page 6 of 16 September 28, 2010 population would transfer to whatever option the City provided, and Lake Oswego's bus riders paid attention to what was going on. Councilor Jordan asked who collected the information during the 45 -day comment period. Ms. Withrow said that Metro would collect all comments and summarize them into a report with an executive summary going out to the jurisdictions, the Steering Committee, and the CAC. She mentioned that the report would also include a summary of all the outreach activities Metro conducted throughout the DEIS process. Councilor Jordan asked if each jurisdiction could decide how to conduct the LPA process or if there a prescribed process. Ms. Withrow said that the local jurisdictions had discretion in determining how to process the LPA through their jurisdiction. She indicated that Metro would contact neighborhood, business, and civic groups as part of its public outreach. She mentioned that the local jurisdictions also had discretion about holding a public hearing process related to the local decision. Mr. Williams stated that he would get responses to the Council for all the questions that the members asked. Mayor Hoffman recessed the meeting for a break at 8:03 p.m. He reconvened the meeting at 8:13 p.m. 3.2 West End Building Site Study Work Group Report Mr. McIntyre recalled that the Council's direction to staff in January had been to return with a financing strategy for the West End Building (WEB). He directed the Council to the previous staff report that presented background information that he would not cover tonight. He mentioned three other reports in particular: the Strategy for the WEB and other City facilities (June 2009) (pp.11- 14), the City Manager's June 2010 report discussing his concerns related to refinancing the facility (pp.5-10), and the Davis Hibbitts & Midghall report summarizing the focus group activity (pp. 15-19). He introduced John Horvick, Davis, Hibbitts, & Midghall, and Brian Jackson, the architect hired by the City to help the Workgroup. He began the PowerPoint presentation. He reviewed the steps taken earlier to move towards a resolution (Slide 2). He noted that the Council's June 2010 discussion on the need for a permanent use of the WEB came from his conclusion that he could not develop a refinancing strategy until the Council told him what the building use would be, because the use dictated the strategy. He noted the Workgroup composition and charge (Slide 3). Councilor Tierney continued the presentation. He stated that he was the spokesperson for the three Councilors who served on the Workgroup. He indicated that the Workgroup took its charge from the guiding principle that the WEB was a long-term City asset. Its challenge was maximizing this asset in light of other City issues. He described the elaborate brainstorming process used (Slide 4), and the conclusions reached (Slide 4). He noted that the City Hall and Library sites were the two sites of vacated land under consideration. He commented that the Workgroup worked with the cards it was dealt. He indicated that these scenarios were not those that the participating Councilors would have developed if the Workgroup had had a clean slate. However, these scenarios addressed the constraints involved. He reviewed the initial building blocks (Slide 5). He noted the foundation elements of a freestanding building to house police, LOCOM, and the court, which addressed the seismic issues for essential functions and security issues for the police department, and the existing Parks & Rec uses retained in the WEB. He observed that the three options represented an increasing intensity of uses on the site, including moving City Hall or the Library and enhancing the Parks & Rec functions. He reviewed the factors considered during the Workgroup's discussions (Slide 6). He noted that they did not find any public/private shared use of the site that worked. He commented that the City Council Special Meeting Minutes Page 7 of 16 September 28, 2010 question of remodeling versus reconstruction was still open, as the costs were virtually the same. He mentioned that the site did contain sensitive lands that were not developable. Mr. McIntyre indicated to Councilor Olson that the reference to turf fields at the high schools meant including replacement turf fields in the funding package presented to the voters as a potential assist to the high schools. Councilor Tierney reviewed the reasons behind the Workgroup deciding to seek further input to test their assumptions and scenarios (Slide 7). He noted that ultimately the public had to vote on this. He described their best strategy as bringing forth a realistic option that the community could and would support. He reported on the results of the two focus groups (Slide 8). He indicated that the Workgroup added two scenarios that were not part of the facilities strategy (sell and maintain the status quo) for a total of eight scenarios to test the full range of options. He reviewed the specifics of the focus groups (Slide 9). He mentioned that the Workgroup made a conscious decision not to attend the focus groups (with the exception of Mr. Jackson) on the recommendation of Adam Davis. He described the focus groups as a good, solid cross sample of the community that were as statistically valid as any focus group would be. He discussed the focus group findings (Slides 10 — 12). He mentioned that what the Workgroup heard was, once the City provided the information, the community was prepared to make this investment decision. He indicated that the information that the City would have to sell the property at a $10 million loss influenced the lack of interest in selling the building. He remarked that this did not mean that the citizens have overcome their objections and the strong emotions associated with the purchase of the building, but rather that they have moved on and were ready to make the best of it. He noted the findings on the police/911 and library facilities (Slide 11). He mentioned that Mr. Davis had both a summary report (pp. 15-19) and a detailed report (pp.21-83) on the focus groups, which brought out some subtleties and nuances regarding the library. He commented that his reading between the lines on the focus groups' strong opinion that the Council needed to make a decision on the WEB was that the Council was going too slow on this issue. He reviewed the information provided to the focus groups to guide their final choices (Slide 12). He mentioned that one focus group member (who might have worked at the School District) had stated that the Lake Oswego High School pool was susceptible to closure, which influenced people. He said that the Workgroup confirmed that, while it was a possibility, a closure was not on the immediate horizon. He reviewed the narrowing down of the options (Slide 13). He explained that the Workgroup eliminated moving the library to the WEB because of the opposition to moving the library out of the downtown. He discussed not moving the ACC to the WEB. He described the three options (#4, #6, and #8) forwarded by the Workgroup (Slide 14), which moved from the basic building blocks to a full option. He noted the slight variations between the options (Slide 15). He indicated that the cost ranged from $50 million to $75 million. He discussed the key considerations as they moved from one option to the other (Slide 16). He recalled the demographics presentation last week with the information that younger families looked for additional services, such as a pool. If the School District closed its pool, then the community might need to provide one. Councilor Jordan recalled hearing after the close failure of the bond measure three years ago that people did not want to pay for the building without knowing what the City intended to do with it. She mentioned that her purpose in going through this exercise had been to develop a scenario that laid out for the public how the West End property could fit in with the rest of the City facilities. City Council Special Meeting Minutes Page 8 of 16 September 28, 2010 Councilor Tierney mentioned that the packet given to the focus groups included a schedule for the different amounts a household would pay based on assessed value for the different borrowing amounts across the different scenarios (p.19). Councilor Tierney indicated to Councilor Vizzini that any activities existing at the WEB today, including teen activities, would continue. He confirmed that the activity rooms and recreation facilities were an enhancement of what already existed. Councilor Tierney indicated to Councilor Hennagin that City Hall would fit in the west wing with a surplus of space. He noted the assumption that, in addition to the municipal court locating in the police building, the IT Department would locate there as well because one of their main functions was to support 911 dispatch. He agreed that locating the municipal court in the WEB and having police officers walk across the plaza to get to court was a possibility. Mr. Jackson continued the PowerPoint presentation. He mentioned that the Workgroup discussed extensively the quality level and costs behind the design assumptions. He pointed out that the renovation (as a complete investment in the building with the expectation of the building lasting a long time) was the equivalent of building new. Therefore, the costs of the two options were very close. He reviewed the drawing depicting Option 4 (Slide 17). He pointed out that City Hall was on the west side and the existing recreation programs on the east side. He mentioned that he included future expansion areas in all three options. He noted the drop off community plaza area between the WEB and the police station. He indicated the police secure parking lot next to their building and the public surface parking lot to the north. He observed that turning the center bay of the WEB into a public space would allow people to move from the north parking lot through the WEB and over to the police station. He commented that the budget numbers were a rough order of magnitude based on previous studies of renovation costs. He indicated to Councilor Vizzini that these drawings were preliminary, and they could easily align the drop off access road with the street across from it to form a full intersection. He indicated to Councilor Jordan that he did not include the natural resources area to the north of the parking lot in order to provide a large enough scale to see what was on the eight acres of usable land on the fourteen acre site. Councilor Hennagin asked if Mr. Jackson considered attaching the police/LOCOM section to the WEB. Mr. Jackson commented that that depended on the options and future planning. He pointed out that putting all the possible programs on the site in one building created a huge building with security and circulation issues. Councilor Moncrieff observed that this exercise had been to see how many uses could fit on the property; design was not an issue at this point. She reported that the Workgroup used all the studies done over the past four years in looking at building quality, sustainable buildings large enough to handle the City's capacity going forward. Mr. Jackson referenced the master spreadsheet (p.18) showing all the various numbers for the various components. He observed that spreading the site development costs around to the different program components along with the soft costs and other outside development costs created a complicated calculation. He emphasized that the cost figures were orders of magnitude. Mayor Hoffman commented that a $300,000 assessed value home would pay $120 a year to cover the land cost of roughly $40 million. Mr. Jackson reviewed Option 6 (Slides 18-19) that increased the program components on site to include a lap pool and expanded recreation programs. He noted the single level parking structure with parking on top needed to park the expanded uses. He mentioned the $37 million cost plus $57 million in land costs. Councilor Moncrieff commented that this would cost $170 per year for a $300,000 assessed value home. City Council Special Meeting Minutes Page 9 of 16 September 28, 2010 Mr. Jackson confirmed to Mayor Hoffman that essentially the City Hall functions would move from 30,000 square feet to 45,000 square feet and the police/LOCOM would move from 9,000 square feet to 17,000 square feet. Mr. Jackson presented Option 8 (Slides 20-21), which added a leisure pool, a two court gymnasium, and a full fitness center for the full expansion option. He noted the two level parking structure with parking on top. He clarified to Councilor Vizzini that the two story volume spaces would be a little taller than the rest of the building, but not significantly so. He mentioned the cost with land at $79.4 million. Councilor Moncrieff indicated that this option would cost $226 per year for a $300,000 assessed value house. She observed that there was a $50 spread between the three options. Councilor Hennagin commented that building Option 8 would cost less than building Option 4, and then moving up to the next two options every five to ten years, because construction costs would be more doing it in three stages. He observed that a phased approach would spread the costs out. Mr. Jackson pointed out that the spreadsheet did not tell the Council what the market would do. He noted that a three -stage approach involved constructing the skin of the building three times plus the disruption costs and other soft costs. Mr. Jackson indicated to Mayor Hoffman that the chart on p. 19 came directly from Chip Pierce, which the consultants used for the focus groups. He clarified to Mayor Hoffman that the costs for construction were rough order magnitude numbers based on what was happening in the market; they were today's numbers. He mentioned that the numbers did not account for any potential escalation or inflation. Mr. Horvick answered questions regarding the focus groups. He indicated to Mayor Hoffman that his team first contacted the participants by random phone number dialing. Their team then worked to make sure that those who agreed to participate were similar to Lake Oswego's demographics (pp.39-40). He said that no City staff attended the meetings, although Mr. Jackson was there to present information and answer questions. He described the focus group process (pp.42-44). He indicated to Mayor Hoffman that it was a 3 hour focus group (most focus groups were 1.5 to 2 hours), and that the participants received an honorarium. Councilor Tierney explained that the chart on p.37, which showed the focus groups' rankings of the eight options, helped the Workgroup decide on Options 4, 6, and 8. He indicated that the Workgroup took guidance relative to next steps from the final comment on p. 22 that the participants thought that the status quo unacceptable and they wanted the Council to make a final decision. Councilor Tierney continued the PowerPoint presentation. He mentioned Mr. Davis and Mr. Horvick's comments that this issue was ripe and ready for a vote as early as May 2011, once the Council made its recommendation. He observed that an informed voter would be very important. He reviewed the next steps, calling for more refined information and detailed scenarios (Slide 22). He mentioned developing design, construction, and operations costs and determining the structure of the financing package and GO bond (Slide 23). He noted that Slide 24 was a potential timeline for a vote. • Council Questions Councilor Olson asked if the Workgroup did any analysis for the operations and maintenance costs of the options. Councilor Moncrieff said that they considered operating efficiencies throughout every step of the process, including which services to combine for staff and energy maintenance savings. She noted that the leisure pool would generate revenue to cover much of the operating expense for a lap pool and other recreation programs. Councilor Tierney commented that they did not get into that level of detail, although they intuitively factored in things like the operational savings of renovating the building up to current energy standards. He suggested modeling it. City Council Special Meeting Minutes Page 10 of 16 September 28, 2010 Councilor Olson recalled that historically the City Manager has resisted efforts by the School District to transfer their pool to the City because it was a money pit. She mentioned her involvement in a study 18 years ago when she was on the Parks & Recreation Board, and observed that pools were notorious for operating in the red. Councilor Jordan concurred that the lap pool alone would not generate revenue, but argued that adding the leisure pool would generate revenue because it could be rented out. She pointed out that a consideration in addition to operating costs was what the community was willing to support with its taxes. She observed that there was the potential for significant savings in operational costs through the energy savings of an energy efficient building. Councilor Olson commented that the total costs for all three options looked low to her. She recalled the $60 million plan for a community center developed by the earlier Task Force. She questioned whether $19 million was a realistic number for a major revamping of the WEB and $10 million for a new police building. Mr. Jackson indicated that the $10 million accounted for a new police station at $225 per square foot. He mentioned that Kaiser just built a new station at $175 per square foot. He pointed out that the $10 million was up from SERA Architect's 2009 estimate of $6.5 million. He observed that these numbers have been looked at closely with respect to the previous estimates. Councilor Tierney suggested a next step of refining and testing the costs given on the spreadsheet. He observed that the Council did not want to ask for an amount and then have to go back and ask for more. He reiterated the need to model these things in order to get comfortable with the costs before moving forward. Councilor Olson suggested re-looking at the estimated sale price of City Hall, given that the figures were two years old and from the beginning of the economic downturn. She referenced the facilities comparison on pp. 13-14. She asked why the WEB was not at the end of its service life when the other city facilities were, and the WEB was a couple of years older than City Hall and the library. Mr. Jackson explained that the insurance company took exceptionally good care of this building, including doing seismic upgrades, because it saw it as an essential service-type building needed to service its clients and to pay out claims in a catastrophic event. He said that the only upgrade not done was up to the current seismic code for an essential service building. Councilor Jordan recalled that the costs coming from the original community center study centered on building a new community center around the east side of the WEB. The task force had not been able to decide what to do with the west side of the building. Mr. Jackson mentioned that the building was about 116,000 square feet. Councilor Tierney argued that these were good solid costs for this stage of the process, developed by the professional (Mr. Jackson) engaged to come up with them. Councilor Olson observed that Chief Forman did not sit on the Workgroup. She asked if the Police Department has had any input on the findings. She asked if the Workgroup looked at any other sites for the police/LOCOM building. Mr. McIntyre indicated that the Workgroup did not look at any other sites. Councilor Tierney pointed out that the Workgroup's charge was to maximize the West End property. He acknowledged that a police/LOCOM building was not the highest and best use of the site, as stated by the Urban Land Institute study, but this was the reality. Councilor Olson wondered whether the police might like to be more separate from City Hall. Councilor Jordan commented that she did not think that the Department would oppose a site with good access and a new secure facility. Mr. McIntyre indicated to Councilor Olson that a skate park near City Hall and the police station (similar to Tigard) was one of the considerations reviewed by Councilor Tierney. Mr. Jackson pointed out that he included a potential skate park on Option 8 with its structured parking, which would also work in Option 6. However, in Option 4, that land was needed for the surface parking. City Council Special Meeting Minutes Page 11 of 16 September 28, 2010 Councilor Olson asked if the Workgroup discussed what to do if the City put out another bond measure and it failed. Councilor Tierney said that they did not discuss that far along. They wanted to put something forward that they had a high degree of confidence would pass. Councilor Olson concurred with that goal. Councilor Hennagin asked why the recommendation to re -grade the existing parking. Mr. Jackson explained that they needed a 2% grade in the parking lot to meet the ADA requirements. In addition, they wanted to increase the parking efficiency of the surface lot and provide enough spaces to accommodate the programs. He acknowledged that this was not inexpensive but noted that it cost less than structured parking. Councilor Hennagin asked if there was a way to pose a bond issue to give the citizens the option of either doing the whole project or Option 4 with the possibility of future add-ons. Mr. Powell indicated that they could have two different measures contingent on what happened to the other. Councilor Tierney asked Mr. Horvick if he saw an attitude in the focus groups respecting the quality of what they expected to see in this building. Mr. Horvick said that what they heard was `plan it right, do it right, and do it right the first time.' Councilor Jordan commented that another possibility for discussion was seeing whether the School District might want to move its administrative offices into the extra space in the west wing and share the space with City Hall. She spoke to making sure that the people understood the options with a bond measure. She framed one option as whether to sell the building for $10 million and give up $10 million worth of services or pay X dollar amount per year to get a full service facility that would provide something in the long run for all citizens in the community. Mr. McIntyre indicated to Mayor Hoffman that the Workgroup did not factor into the discussion about the leisure pool the fact that the property was only a mile away from the Mountain Park leisure pool, which served 25% of Lake Oswego's population. Councilor Olson asked if there was any information about the existing drainage issues in the current lower lot. Mr. Jackson said that he had not been aware of those problems. He mentioned his discussions with City planning about restoring the water quality treatment area to treat the water before it entered the creek system. Councilor Vizzini asked if the numbers on the sale of the City Hall property (p.17) included the demolition of City Hall. Mr. McIntyre agreed that, given the condition of the exterior walls, it would be prudent for the City to manage the building demolition. He pointed out that fine-tuning these numbers was one of the next steps. Councilor Vizzini mentioned that he would like a discussion about the community conversation to come. Mr. McIntyre indicated to Councilor Olson that the Workgroup did discuss including the $2 million needed for South Shore Fire Station in the bond. He recalled that Mr. Davis recommended not asking the focus groups about it. He mentioned the possibility he saw of using the savings accumulated over time by not paying interest on the WEB site out of the general fund to create enough of a new resource to pay for the fire station out of the general fund. He observed that the Council made the decision about what to include in the bond issue. Councilor Vizzini spoke of trying to preserve a quality of experience in the planning of this facility, and making it a place where people would want to come. He commented that, from a municipal business point of view, the site could lose its attractiveness if it had too many activities on site. Councilor Tierney recalled the discussions about a combination of public and private uses to make the facility a 24/7 facility, but they did not find any that would work with Parks & Rec, the Police Department, and City Hall. Councilor Vizzini asked if the Workgroup considered adding stories for a four to five story building at this site. Mr. Jackson indicated that the building was not structured for additional stories and it would be cost prohibitive to add floors to the building. However, other buildings on the site could City Council Special Meeting Minutes Page 12 of 16 September 28, 2010 have more stories. Mayor Hoffman recalled an example from Vancouver, B.C., of a police station with three to five floors of condominiums on top of it. Mr. McIntyre mentioned that the Workgroup kept the constraint of the current zoning. Mr. McIntyre mentioned two questions that the Workgroup asked Mr. Jackson: putting a commercial use along Kruse Way and putting housing somewhere on the site. He indicated that the site constraints meant sacrificing everything else to a commercial use along Kruse Way. Mr. Jackson indicated that neither a commercial development nor housing on the site penciled out. Mr. Jackson confirmed to Councilor Olson that the police building was three stories plus parking underneath. Councilor Moncrieff commented that these recommendations were what the Workgroup ended up with after looking at the City's facility needs, at every possible configuration of what they could realistically put on the site, at what made sense on the site, and at what affect a service going away had on the site. She concurred with Councilor Tierney that these three options represented the best options for solving the City's facility needs, given the cards in their hand. Councilor Tierney commented that the focus groups had not had a problem with either renovating the existing facility or building a new facility on site. Mr. Horvick concurred, noting that the similarity in costs was the primary factor. Mr. Jackson recalled that the groups always brought the discussion back to saying that if renovating the WEB yielded a 21St century facility that would last as long as a new building, then keeping the WEB was fine. Conversely, if building new structures did not cost substantially more than a renovation, that was fine also. Mayor Hoffman asked how one built a 50 to 75 year building. Mr. Jackson indicated that there were many factors that went into the design and construction of a building, from the early planning through the detail implementation to a quality builder. He pointed out that mechanical systems would only last so long. He commented that one always hoped that a building would last 50 years if not closer to 100 years. Mayor Hoffman commented that some would bring up the condition of City Hall after only 30 years and the School District's experience. He remarked that, at some point, someone from this table would have to reassure citizens that the City knew what it was doing. He cited the City's recent track record with the LOIS project, Hazelia Field, and Millennium Plaza. Councilor Hennagin mentioned that one of his concerns was to design and build a building that would last. He spoke of another concern of having sufficient expansion space to accommodate the increased services and personnel needed to serve a larger population in the future without having to re -build on a new site. Mr. Jackson commented that a large enough population (75,000 as an example) raised operational issues and the probability of multiple facilities. He noted that the building was originally designed to double the size of the west wing to the north, so there were future expansion opportunities. He observed, however, that a site could only hold so much based on its size. Mr. Jackson indicated to Councilor Hennagin that a new building designed to add stories on top of it would be a pro in the building a new building scenario. Councilor Tierney asked if the Council needed any additional information. Councilor Olson asked for more information on the water on site and better information on the pools. Mr. Jackson commented that Option 6 would likely operate at a loss due to the lap pool but Option 8 had a high chance of being a cost neutral facility because of the revenue -generating elements of the leisure pool, the fitness center, and the rooms available for rent. Councilor Tierney mentioned his expectation that the newspapers would cover this (the Review and the Oregonian). He said that he and Councilor Moncrieff had an opinion piece coming out on Thursday intended to establish the framework of what the Council was trying to do. He indicated that feedback and questions received from the community should go to Mr. McIntyre. City Council Special Meeting Minutes Page 13 of 16 September 28, 2010 He referenced the public comment piece that Councilor Vizzini and Mayor Hoffman mentioned. He indicated that he had a sense of urgency to do that which the community was waiting for them to do. He described this as a positive sense because the focus groups heartened the Workgroup to say that there was an opportunity to deal with what the City had and to move forward. Mayor Hoffman spoke of developing a strategy to get the information on the eight options out to the Council, to its Advisory Boards and Commissions, to community groups, and to the public. He suggested a survey to verify if the Council was doing this work quickly and doing it right. He commented that the Council did not want to put a forwarded option on the ballot if 55% of the people preferred one of the other options. Councilor Moncrieff discussed her concern about time, given that they needed at least six months before the vote to get the information out. Therefore, the Council had to decide in October on the one option to put on the ballot for a May 2011 election. She expressed her hope that the Council could agree to move forward on refining the financial and other information and answering Councilor Olson's questions on the forwarded options. She explained that the Workgroup eliminated Option 3 because they felt strongly that the library was the economic driver and civic presence critical to the Downtown. Councilor Jordan mentioned the focus groups' minimal knowledge about the North Anchor study and the possibility of moving the library somewhere else. She concurred that they needed to educate the public and get the facts out about the costs. She agreed with Councilor Moncrieff that the Council needed to make a decision. She spoke of consistently presenting one option, but, if Councilor Hennagin's suggestion to put two options on the ballot was possible, then that was another option. Councilor Olson concurred with making a decision. She argued that the survey would be the results of the bond measure. She pointed out that the bottom line was that the City needed to pay for this property. Therefore, the Council needed to decide on what was the best option for achieving that goal. Councilor Vizzini remarked that this remarkable report provided a solid foundation for the level of planning where the City was right now. He argued that they needed to make a decision soon about one option and make the best case for it. He agreed with the analysis' finding that either the City did the full complement of pools or it did no pools. He observed that the outlook was sketchy for the plan to break even, even with a full complement of pools and sharpening up the numbers. He wondered what the City would do if the plan did not break even. He cited the context of the course of recent and anticipated development in the city and the existing community constituencies in arguing that the Council could make a solid case for Option 8 as the best option in the long-term. He cautioned the City to be very conservative in its cost estimates. He commented that a precinct analysis of the 2007 vote on the bond measure found that the East End did not vote and that the precincts with the highest support for keeping the building also had a high rate of defection in voting to pay for the building because of the unknown risk. He held that the electorate was ready to go. He suggested not going through a huge public process to get to the decision but rather that the Council select an option, tighten the numbers up quickly, and make its best case to the public. Mayor Hoffman commented that he could support moving forward quickly as long as the seven Council members all supported whatever the decision the majority made, and no one campaigned against it, whatever his/her personal preference might have been. Councilor Tierney commented that he saw an educational benefit in taking the options out to the community as well as obtaining a reaffirmation of what the three choices were that made the most sense to the community. He noted that each option had risks, with Option 4 having the lowest risk, based on the sense of the focus groups. He concurred with Councilor Vizzini that they needed to include the information on the long-term service aspirations over the next 30 years. He described City Council Special Meeting Minutes Page 14 of 16 September 28, 2010 Option 4 as managing what the community had, while the more risky Option 8 was leading the community. He agreed with Councilor Hennagin's suggestion to ask the City Attorney to craft a measure that allowed those options or perhaps Option 4 plus add-ons. Councilor Vizzini indicated that he liked the structure of the two measures as one for the base case and one for the enhancement to see what the people wanted. He argued that this facility was part of the branding of the community as a special place in the region for both younger families and active seniors. He pointed out that the $226 per year for Option 8 meant $20 a month for a state- of-the-art facility. Councilor Tierney cautioned that this was in addition to all the other City fees and taxes. Councilor Moncrieff commented that she heard the group discussing only Options 4 and 8. She suggested refining those two options with operating expense models and answered Council questions. Staff could then take the two refined options round to the Boards with the Council making a final decision by the end of October. She mentioned also asking Mr. Powell about the double measure possibility. Mr. McIntyre expressed his concern that the Boards and Commissions met only once a month. Mayor Hoffman pointed out that the Council could convene them. Councilor Hennagin suggested holding a joint meeting. Councilor Olson observed that the Boards and Commissions already shared the Council's mindset. She suggested doing a survey similar to the We Love LO survey that the planners put together so quickly, or asking the question on Open City Hall in order to get additional public feedback. Councilor Moncrieff commented that she saw educating the public on the facts as critical to this effort, but she did not see surveys as educational. Councilor Tierney recalled that staff spoke to Adam Davis about whether the Council needed more research to inform its decision, and Mr. Davis said no. The Council needed to decide what to do and then inform the people so that they understood. He described going to the advisory boards as part of that informing, while Mayor Hoffman described it as a check in or a reaffirmation of the seven Council members' direction. Mayor Hoffman observed that the focus groups, while informative and helpful, were not scientifically and statistically valid. Mr. Horvick commented that the 16 people selected at random were representative of the community but not the Council's advocates. Councilor Olson mentioned that the focus groups were more valid to her than the advisory boards. Councilor Jordan commented that it was important to remember that the focus groups ended up saying that they would rather do everything at once rather than have the City keep coming back asking for more money in a phased approach. She suggested checking in with the advisory boards, the Chamber, and some other organizations in tune with the city to see what their reaction was to the Council's direction. She concurred with Councilor Vizzini that it took courage to leap out on the edge and go with the full option. She agreed that education in the next six months would be key. Councilor Hennagin agreed with focusing on Options 4 and 8 and dropping Option 6. He mentioned hearing anecdotally complaints from families (who did not live in Mountain Park) having to take their children to Tigard or southwest Portland for a recreation pool: they would like one in Lake Oswego. He said that he wanted to know how many people would use a recreation pool and how much revenue it would generate. Councilor Vizzini suggested taking this out to the interest groups who would campaign either for the bond measure or against it in order to identify the arguments that these groups would use for and against the ballot measure. He spoke to doing this before October 31. Councilor Tierney concurred with focusing on Options 4 and 8, with putting together an outreach strategy for implementation in October, with getting answers to Council questions, and with setting this for a decision at the last meeting in October. He agreed with Councilor Vizzini in terms of City Council Special Meeting Minutes Page 15 of 16 September 28, 2010 developing a strategy to reach those in the community both for and against the WEB to learn what their arguments were. He asked Mr. McIntyre if this was doable before the end of October. Councilor Olson questioned whether it was doable, given how much the Council had on its plate. She emphasized that it was time to make a decision. She indicated that she liked the idea of reaching out to groups other than `the usual suspects.' She commented that, while she was interested in exploring the answers to her questions about Option 8, she did think that Option 4 had the best chance of passing in this economy. She reiterated that her bottom line was getting the building paid for and getting a new public safety building. She argued that the Council needed to select the option with the best chance of passing in order to accomplish those goals. Mr. McIntyre discussed his concerns about whether staff could accomplish this task in a quality, thoughtful manner by the end of October, especially in light of everything that the Council and the City going on right now. He indicated that staff could make it happen but he would have to pull resources from other efforts. He pointed out that, while the discussion has focused on the May 2011 election, the Council could put the measure on the ballot whenever it wanted to. He observed that this big decision has been on the Council's plate for many years. He advised the Council, as policy makers and decision makers, to think this decision through thoroughly, looking at all the strengths and weaknesses, pros and cons, around all the options. He indicated his desire that the Council feel certain that whatever it put forward would be successful, and that the decision not feel rushed. He held that the Council as a whole needed to feel comfortable and supportive of its decision as the right direction in which to go. He mentioned his concern that giving the voters too many choices was a tactic that could dilute the message. Mr. McIntyre suggested that he put on the next meeting's agenda an item to discuss when to hold a public hearing on the Council's choice of an option. He indicated to Councilor Olson that he presumed that the Council would want public input before making a decision from the dais. 4. ADJOURNMENT Mayor Hoffman adjourned the meeting at 10:06 p.m. Respectfully submitted, Robyn Christie City Recorder APPROVED BY THE CITY COUNCIL: ON November 2, 2010 Jack D. Hoffman, Mayor City Council Special Meeting Minutes Page 16 of 16 September 28, 2010 CITY OF LAKE OSWEGO LAKE OSWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: Paul Espe, Associate Planner SUBJECT: Ordinance 2559, 4747 Upper Drive (AN 10-0004) DATE: October 18, 2010 ACTION Adopt Ordinance 2559 (Exhibit F-1) annexing property located at 4747 Upper Drive INTRODUCTION/BACKGROUND 380 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us The proposed annexation is owner -initiated and will result in the addition of 0.65 acres of residential land to the City. This Council report describes the reasons for the annexation and provides basic background information. The criteria for approving annexations and the findings in support of this annexation are included in Exhibit B-1. Owner/Applicant : Claude Shadburn Location/Size: The subject property is 0.65 acres (28,314 square feet) in size. It is located on the north side of Upper Drive, approximately 800 west of the intersection of Bryant Road. The address is 4747 Upper Drive, Tax Lot 3900 (Tax Map 21E07DD). The property is shown on Exhibit F-1, Attachment A. Existing Land Use: Tax Lot 3900 is developed with one single family dwelling that is currently occupied. The parcel has direct driveway access to Upper Drive. Neighborhood: The property is located within the Lake Grove Neighborhood Association. Purpose of Annexation: The property owner initiated the annexation to connect to city sewer service. Page 2 DISCUSSION Plan and Zone Designation: The subject property is currently under Clackamas County's jurisdiction and is zoned Low Density Residential R-8.5. This area is designated R-7.5 on the City of Lake Oswego Comprehensive Plan Map and will be zoned R-7.5 upon annexation. Development Potential: The property is developed with a single family dwelling. Based on the R-7.5 zoning standards, the property can be divided into three parcels. Sensitive Lands: There are no sensitive lands designated on this property. Sewer and Water Service: There is a four -inch Lake Oswego water line and a six-inch Lake Grove Water District (LWD) water line in Upper Drive. This is within the LGWD's service boundary. The existing house is connected to the six-inch Lake Grove water line and will continue being a LGWD customer. Service Districts: Upon annexation, the property will be removed from the Lake Grove Fire District #57, the Clackamas County Enhanced Sheriff's Patrol District and the Surface Water Management Agency of Clackamas County. Issues: There are no known issues that would complicate annexation of this property ALTERNATIVES & FISCAL IMPACT The draft findings provided in Exhibit B-1 conclude that the proposed annexation complies with all applicable State statutes and Metro code requirements. This annexation is for one parcel of approximately 0.65 acres. The estimated assessed value of the residential property is $144,996. Once the property is annexed, the annual tax gain would be approximately $375.00. RECOMMENDATION Staff recommends approval of AN 10-0004. EXHIBITS A. Notice of Appeal [No current exhibits; reserved for hearing use] B. Findings and Conclusion B-1: Criteria, Findings, Conclusion, and Effective Date C. Minutes [No current exhibits; reserved for hearing use] D. Staff Report [No current exhibits; reserved for hearing use] E. Graphic Exhibits F. Written Materials F-1: Ordinance 2559 and Map F-2: Annexation Petition and Application G. Letters -None Page 3 Reviewed by: < Department Directo Finance Director City Attorn y Alex D. Mcl re City Manager Exhibit B-1 Criteria, Findings, Conclusion, and Effective Date APPLICABLE CRITERIA: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2) - Annexation of Contiguous Territory, Authority and Procedure for Annexation, Generally. 2. ORS 222.125 - Annexation by consent of all owners of land and the majority of electors. 3. ORS 222.170 - Annexation by consent of more than half of the owners of land in the territory to be annexed, who also own more than half of the land in the territory. B. Metro Code 3.09.040(a)(1-4) Minimum Requirements for Petitions. 3.09.050 Uniform Hearing Requirements for Final Decisions Subsections (b)(1-3) and (d). FINDINGS: A. Oregon Revised Statutes (ORS), Boundary Changes• Mergers and Consolidations ORS 222.111(2) Annexation of Contiguous Territory, Authority and Procedure for Annexation, Generally. ORS 222.111(2) states that a proposal for annexation of territory to a City may be initiated by the legislative body of the City, on its own motion, or by a petition to the legislative body of the City by owners of real property in the territory to be annexed. The applicant has petitioned the City for annexation. ORS 222.125 - Annexation by consent of all owners of land and the majority of electors. ORS 222.125 allows the legislative body of the city the option to waive holding an election on the question of annexation within the area proposed to be annexed if all of the owners of land in the territory and not less than 50 percent of the electors, if any, residing in the territory consent in writing to the annexation. There is one registered Clackamas County voter who is also the owner of the property residing on the property. He has signed the petition consenting to this annexation. AN 10-0004 EXHIBIT B-1 Page 1 3. ORS 222.170 - Annexation by consent of more than half of the owners of land in the territory to be annexed, who also own more than half of the land in the territory. ORS 222.170 allows the legislative body of the city the option to waive holding an election on the question of annexation within the area proposed to be annexed if not less than 50 percent of the owners of the territory consent in writing to the annexation. These owners must also own more than half of the land in the territory to be annexed. Except for the right of way, the property owner owns all of the property to be annexed and has consented to the annexation on the attached annexation petition (Exhibit F-2). The proposed annexation complies with the statutes. B. Metro Code 3.09.040 - Minimum Requirements for Petitions. (a) A petition for a boundary change shall be deemed complete if it includes the following information: 1) The jurisdiction of the approving entity to act on the petition; 2) A map and a legal description of the affected territory in the form prescribed by the reviewing entity; 3) For minor boundary changes, the names and mailing addresses of all persons owning property and all electors within the affected territory as shown in the records of the tax assessor and county clerk; and, 4) For boundary changes under ORS 198.855 (3), 198.857, 222.125 or 222.170, statements of consent to the annexation signed by the requisite number of owners or electors. The above information was submitted as required by Metro Code. The property owner/elector signed the application and petition. The providers of urban services include: Lake Grove Fire District #57, Lake Grove Water District, Clackamas County Enhanced Sheriff's Patrol District, Surface Water Management Agency of Clackamas County, Lake Grove Park District, and Tri -Met. Upon annexation, the City of Lake Oswego will provide police and fire services as well as sanitary sewer service. The Lake Grove Water District will provide water service. The current total assessed value of the territory to be annexed is $144,996. The annexation application and petition are attached as Exhibit F-2. 2. 3.09.050 Uniform Hearing and Decision Requirements for Final Decisions Other Than Expedited Decisions. (b) Not later than 15 days prior to the date set for a boundary change decision, the approving entity shall make available to the public a report that addresses the criteria in subsection (d) below, that includes at a minimum, the following: AN 10-0004 EXHIBIT B-1 Page 2 (1) The extent to which urban services presently are available to serve the affected territory including any extra -territorial extensions of service; The subject parcel is located within the Urban Growth Boundary and the City's Urban Services Boundary. Metro Code section 3.09.020 defines urban services as including sanitary sewer, water, fire protection, parks, open space, recreation, streets, roads and mass transit. Water: There is a four -inch Lake Oswego water line and a six-inch Lake Grove Water District (LGWD) water line in Upper Drive. This unincorporated territory lies within the LGWD's service boundary. The house is currently connected to the six-inch Lake Grove water line and will continue being a LGWD customer after annexation. The City of Lake Oswego has entered into an agreement with the Lake Grove Water District on June 7, 1994 for water services. The City and the District agreed to construct an interconnection between the two water systems and that the City will furnish and sell surplus water to the District under certain conditions and set rates for District purchase of City water. The City Council also adopted a resolution in 1994 (Resolution 94-22) indicating that the City would not withdraw parcels from the district upon annexation. The territory will not be withdrawn from the Lake Grove Water District upon annexation. Fire: Lake Grove Fire District #57 provides fire protection services to the subject parcel by agreement with the City of Lake Oswego. Upon annexation, the territory will be withdrawn from this fire district and will be served directly by the City. The Jean Road Fire Station located south of the territory to be annexed would be able to respond to emergencies under the eight minute goal as established in the Comprehensive Plan. There are hydrants located at the northwest corner of Upper Drive and Bryant Road, in front of 4747 Upper Drive, between 4800 and 4850 Upper Drive, between 4850 and 4900 Upper Drive, in front of 16722 Boones Ferry Road and in front of 5003 Upper Drive. Sanitary Sewer: The new sewer line in Upper Drive was completed in 2008. Future connections to the sewer will be subject to paying a "line charge" as a condition of receiving a connection permit. Under the present fee schedule, the line charge is $17,842. A zone of benefit is a geographic area formed under a service area to provide extended services not already being provided by any other entity. Each property that connects to a line constructed under the sanitary sewer extension program is obligated to pay a line connection charge to cover the program cost. Surface Water Management: There are no creeks, storm drains or drainage ditches in the immediate area of the proposed annexation. No public storm drain improvements are identified in the Public Facilities Plan. However, in conjunction with the sewer extension project mentioned above, the City has extended a storm drain line to Upper Drive from the surface water system in Lower Drive. This provides the future opportunity to extend the drain system east and west along Upper Drive. Until that storm drain is extended, however, any future development will be required to manage site generated runoff on site. AN 10-0004 EXHIBIT B-1 Page 3 Individual drainage systems may be required on the subject parcel for roof runoff, and infiltration trenches along the sides of the roadway. The engineering staff will need to review and consider any street drainage system needed for future development. Currently, the territory is under the jurisdiction of the Surface Water Management Agency of Clackamas County (SWMACC). Upon annexation, the territory will be withdrawn from SWMACC and will be subject to the City's storm water management regulations. Police: The parcel is currently served by the Clackamas County Sheriff's Department. Upon annexation, the territory will be withdrawn from the Clackamas County Enhanced Sheriff's Patrol District and will be served by the City of Lake Oswego. The police department has reviewed the proposal and found it to be in compliance with applicable regulations and did not indicate that they would have any problems serving this area. Parks: The City currently has 675 acres of park and open space lands, or 19.76 acres per 1,000 people. East and West Waluga Parks are located north of the subject parcel. These two parks total 53.2 acres, and are located west of Waluga Drive and south of Carman Drive. Amenities include a playground, picnic tables and covered picnic shelters, restrooms, trails, paths and natural wildlife viewing areas. The City's park system is able to absorb any additional population generated by this annexation approval. Recreation: The City has many recreation programs available to youth and adults. The potential addition of this parcel would not affect the recreation programs because any increased usage would result in additional revenue to address any greater demand. The addition of one parcel to the existing population of more than 36,000 residents would not detract from the City's ability to provide adequate recreation programs. Lake Grove Swim Park: The Lake Grove Swim Park, which is managed by the Lake Oswego School District, operates a swim park located at 3800 Lakeview Boulevard. The swim park is approximately 1.3 acres in size with restrooms, play and swim facilities. This parcel will remain within the Lake Grove Park District following annexation. Transportation - Streets and Mass Transit: Clackamas County has jurisdictional authority over and maintains Upper Drive between Bryant Road and Boones Ferry Road. The County will retain jurisdiction of Upper Drive until more properties annex to the City, whereupon the City will initiate a transfer of jurisdiction. Upper Drive is a two-lane 20 -foot wide asphalt paved street with a 40 -foot right of way and no curbs or sidewalk. The much of Upper Drive was annexed in October, 2007 under AN07-0002 and another small portion of Upper Drive in front of 4575 Upper Drive was annexed in January, 2008. Upper Drive between Bryant Road and Boones Ferry Road is designated as a local street. AN 10-0004 EXHIBIT B-1 Page 4 The City's Transportation System Plan (TSP) does not identify any roadway, pedestrian or bicycle improvements for Upper Drive. However engineering street design policies call for pavement widening to achieve a minimum ten -foot travel lane, a three-foot wide gravel shoulder, and a five-foot wide asphalt pathway separated from the roadway by a landscaped planting strip. The closest bus stop is located at the intersection of Upper Drive and Boones Ferry Road. The area is served by TriMet bus Line 37, which currently operates along Boones Ferry Road to the north, and Line 38, which operates along Kruse Way to the north. Line 37 provides service between downtown Lake Oswego and Tualatin, and Line 38 provides service between downtown Portland and Tualatin. (2) A description of how the proposed boundary change complies with any urban service provider agreements adopted pursuant to ORS 195.065 between the affected entity and all necessary parties; The City has entered into four ORS 195.065 agreements. The Agreements include: 1) Clackamas County (for roadways), 2) Lake Oswego School District, 3) Lake Grove Fire District; and, 4) the Southwood Park Water District. Three of these agreements are applicable to this proposal and are addressed below. Clackamas County Agreement: The City and Clackamas County entered into an ORS 195.065 urban service agreement for roads in July 2003. The agreement states that the City shall initiate proceedings for the transfer of jurisdiction and maintenance to the City of all County roads within the annexed areas. Lake Oswego School District: The City and the Lake Oswego School District entered into an ORS 195.065 urban service agreement for park services in July 2003. The School District operates the Lake Grove Swim Park located at 3800 Lakeview Boulevard. The agreement states that City annexation of property within the Lake Grove Park District shall not cause the withdrawal of the property from the area benefited by the operation of the Lake Grove Swim Park. Lake Grove Fire District #57: The City and District entered into an ORS 195.065 urban service agreement for fire protection in July, 2003. The agreement states that upon annexation by the City of property within the District, the annexed property shall be withdrawn from the District and the City shall provide fire protection services. In addition, upon annexation of the entire remaining area of the District by the City, the District shall be extinguished and the City shall be charged with the functions and obligations of the District. AN 10-0004 EXHIBIT B-1 Page 5 (3) A description of how the proposed boundary change is consistent with the comprehensive land use plans, public facility plans, regional framework and functional plans, regional urban growth goals and objectives, urban planning agreements and similar agreements of the affected entity and of all necessary parties; Consistency of the proposed boundary change with comprehensive plan policies is discussed in section (d)(3), below. The City's Public Facilities Plan does not identify any sanitary water, storm water or transportation projects in this area that would affect the subject territory. There are no regional framework plans or regional urban growth goals or objectives that are directly applicable to this annexation. Compliance with urban planning agreements and other agreements with necessary parties is discussed in section (d)(2), below. (4) Whether the proposed boundary change will result in the withdrawal of the affected territory from the legal boundary of any necessary party; and, The territory proposed for annexation will, by operation of ORS 222.520 be withdrawn from the Lake Grove Fire District #57, Clackamas County Enhanced Sheriff's Patrol District, and the Surface Water Management Agency of Clackamas County upon annexation. (5) The proposed effective date of the decision. The proposed effective date of the decision is outlined in the final section of the findings. (c) An approving entity's final decision on a boundary change shall include findings and conclusions addressing the following criteria: (1) Consistency with directly applicable provisions in an urban service provider agreement or annexation plan adopted pursuant to ORS 195.065; ORS 195.065 agreements are discussed above under Metro Code Section 3.09.050(b)(2). (2) Consistency with directly applicable provisions of urban planning or other agreements, other than agreements adopted pursuant to ORS 195.065, between the affected entity and a necessary party; The Metro Code defines necessary party as "a county, city or district whose jurisdictional boundary or adopted urban service area includes any part of the affected territory, or who provides any urban service to any portion of the affected territory." The list of necessary parties for the proposed annexation includes: AN 10-0004 EXHIBIT B-1 Page 6 ■ Clackamas County ■ Clackamas County Enhanced Sheriff's Patrol District ■ Surface Water Management Agency of Clackamas County ■ Lake Grove Fire District #57 ■ Lake Grove Park District ■ Lake Grove Water District ■ Tri County -Metropolitan Transportation District Lake Grove Water District : The territory lies within the Lake Grove Water District. It will be retained within the District at this time pursuant to the agreement between the City and the Lake Grove Water District on June 7, 1994 for water services. Further details can be found in section B. 2.(b)(1) on pages 2 and 3 of these findings. Clackamas County Urban Growth Management Agreement/City of Lake Oswego: The City currently has an urban planning agreement with Clackamas County. This agreement ensures coordination and consistency between the City and County comprehensive plans and outlines responsibilities in providing services and managing growth within the Dual Interest Area. The subsections 6 and 7, provided below, are applicable to annexations. "6. City and County Notice and Coordination: The City shall provide notification to the County, and an opportunity to participate, review and comment at least 35 days prior to the first public hearing on all proposed public facilities plans, legislative changes to the City Comprehensive Plan, or quasi-judicial land use actions adjacent to, or in close proximity to unincorporated areas. The City shall provide notice to the County of private or City initiated annexation requests within five days of the filing of an application with the Portland Metropolitan Boundary Commission." This policy specifies that the City notify the County of an annexation request within five days of when it is submitted to the Boundary Commission. There is no longer a Boundary Commission for the Portland Metropolitan area. Staff relies on the notice requirements of Metro Code 3.09.030, which requires notice 20 days prior to the scheduled hearing for an annexation for all necessary parties (other governmental entities), unless a shorter time is agreed upon. The County is a necessary party under the Metro Code definition and has been notified. "7. City Annexations A. The City may undertake annexations in the manner provided for by law within the Dual Interest Area. The City annexation proposals shall include adjacent road right-of-way to property proposed for annexation. The County shall not oppose such annexations. B. Upon annexation, the City shall assume jurisdiction of the County roads and local access roads pursuant to a separate road transfer agreement between the City and county." AN 10-0004 EXHIBIT B-1 Page 7 The City is undertaking this annexation in the manner provided for in the applicable ORS and Metro Code for the territories that lie within the Dual Interest Area. The City and Clackamas County entered into an ORS 195.065 urban service agreement for roads in July, 2003. The agreement states that the City shall initiate proceedings for the transfer of jurisdiction and maintenance to the City of all County roads within annexed areas. This subsection does not apply because no right of way is proposed to be annexed with this application. Lake Grove Fire District #57 / City of Lake Oswego Agreement: The City and District entered into an ORS 195.065 urban service agreement for fire protection in July 2003. Further details can be found in section 6.2.(b)(1) on page 5 of these findings. Lake Grove Water District / City of Lake Oswego Agreement: The City and the Water District entered into an agreement in 1994 . Further details can be found in section B.2.(b)(1) on pages 2 and 3 of these findings. (3) Consistency with specific directly applicable standards or criteria for boundary changes contained in the comprehensive land use plans and public facility plans; Comprehensive Plan Map: The subject property is currently under Clackamas County's jurisdiction and is zoned Low Density Residential R-8.5. Pursuant to the Lake Oswego Community Development Code Section 50.05.025, upon annexation, a City zone of R-7.5 will be automatically applied to the territory. The City and County have coordinated their comprehensive plans within the "Dual Interest Area" outlined in the City/County Urban Growth Management Agreement (dated February 4, 1992 and updated November 18, 1997); hence, the City/County designations have been determined to be compatible. Therefore, this annexation is compatible with the City's Comprehensive Plan Map. Comprehensive Plan Policies: The relevant Comprehensive Plan policies are addressed below: Goal 14, Urbanization - Policy 10: The Urban Services Boundary is Lake Oswego's ultimate growth area within which the City shall be the eventual provider of the full range of urban services. The parcel to be annexed is within the City's Urban Services Boundary as outlined in the Comprehensive Plan. City services are available or can be made available to the property and its annexation is consistent with this policy. Goal 14, Urbanization - Policy 13: Ensure that annexation of new territory or expansion of Lake Oswego's Urban Service Boundary does not: a) Detract from the City's ability to provide services to existing City residents,- b) esidents,b) Result in property owners paying for urban services which do not benefit their property: AN 10-0004 EXHIBIT B-1 Page 8 The approval of this annexation will result in the addition of one 0.65 acre parcel and abutting right of way. Service issues are addressed below. Police: The addition of this territory will not detract from the City's ability to provide police protection to the existing city residents. This parcel is currently included in the Clackamas County Enhanced Sheriff's Patrol District and will be withdrawn from this district upon annexation. Fire: This parcel is within the targeted eight -minute response time of the Jean Road Fire Station as specified in the Comprehensive Plan. The potential addition of this parcel to the City will not detract from the Fire Department's ability to provide fire protection to existing city residents. Parks: The City has 675 acres of park and open space lands, or 19.76 acres per 1,000 people. Further information on parks can be found in section 13.2.(b)(1) on page 4 of these findings. Recreation: The City has many recreation programs available to youth and adults. Further information about recreation can be found in section B.2.(b)(1) on page 4 of these findings. Sewer: Sanitary sewer is currently available in Upper Drive. Further discussion regarding sewers can be found in section 13.2.(b)(1) on page 3 of these findings. Water: The Lake Grove Water District has not indicated that the proposed annexation would impede their ability to provide water services to existing city residents. Transportation: The City's Public Facilities Plan does not identify any transportation projects in this area that would affect this proposed annexation. In regard to subsection b) of Goal 14 -Policy 13, the policy ensures that existing city property owners do not subsidize newly annexed areas in the provision of urban services. The City has established systems development charges, and imposes rates that result in payment by users for different city services such as sewer, water, surface water, parks and recreation, and transportation systems. Therefore, existing city property owners will not pay for urban services that do not benefit their property. Goal 14, Urbanization - Policy 14: Prior to the annexation of non -island property, the City shall ensure urban services are available and adequate to serve the subject property or will be made available in a timely manner by the City or a developer commensurate with the scale of the proposed development. Urban services consist of water, sanitary sewer, surface water management, police and fire protection, parks, and transportation including: streets, transit, pedestrian and bicycle facilities. Community Development Code Section 50.64.015 requires that all development be provided with the following utility services: sanitary sewer, water, sidewalks, pedestrian and bicycle paths, traffic control signs and devices, street lights, streets, and TV cable. These utilities are now in place or can be put in place to serve this property. AN 10-0004 EXHIBIT B-1 Page 9 In the event that future redevelopment occurs, an applicant for development is obligated to construct all necessary public facilities to serve their development. [Community Development Code 50.87.020, see also discussion of consistency with Public Facilities Plan (Section 2, Metro Code 3.09.050 above). As noted above, police and fire services are available upon annexation. The amount of protection provided will be similar to protection provided to other city residents because the territory proposed to be annexed is not isolated from other areas of the city. (4) Consistency with specific standards or criteria for boundary changes contained in the Regional Framework Plan or any functional plan; and There are no Regional Framework Plan or Functional Plan criteria or standards applicable to annexations at this time. (5) Whether the proposed change will promote or not interfere with the timely, orderly and economic provisions of public facilities and services. Due to the proximity of the property to existing city services, this annexation will promote the timely, orderly and economical extension of public facilities and services. If and when additional development occurs in the area, provision of public facilities and services will occur. CONCLUSION: Based on the criteria and findings set forth above, the City Council concludes that AN 10-0004 complies with all applicable criteria and should be annexed to the City. EFFECTIVE DATE: A. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 34, the ordinance shall be effective on the 30th day after its enactment. B. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of: the 30th day following the date of adoption of this ordinance; or the date of filing of the annexation records with the Secretary of State; provided however that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any City, district or other municipal corporation involved in the area to be annexed, then the effective date of the annexation shall be delayed until, and the annexation shall become effective on, the day after the election. AN 10-0004 EXHIBIT B-1 Page 10 ORDINANCE NO. 2559 AN ORDINANCE ANNEXING TO THE CITY OF LAKE OSWEGO ONE PARCEL COMPRISING APPROXIMATELY 0.65 ACRES AT 4747 UPPER DRIVE; DECLARING CITY OF LAKE OSWEGO ZONING PURSUANT TO LOC 50.05.025; AND REMOVING THE PARCEL FROM CERTAIN DISTRICTS (AN 10-0004). WHEREAS, annexation to the City of Lake Oswego of the territory shown in the map in Attachment "A" and described below would constitute a contiguous boundary change under ORS 222.111, initiated by petition from the property owner as outlined in ORS 222.111(2); and, WHEREAS, the City has received consent for the proposed annexation from 100 percent of the owners of land and not less than 50 percent of the electors in the territory; and, WHEREAS, the part of the territory that lies within the Lake Grove Fire District #57 would, by operation of ORS 222.520, be withdrawn from that district immediately upon approval of the annexation; and, WHEREAS, the part of the territory that lies within the Clackamas County Enhanced Sheriff's Patrol District would, by operation of ORS 222.520, be withdrawn from the district upon approval of the annexation; and, WHEREAS, the part of the territory that lies within the Surface Water Management Agency of Clackamas County would, by operation of ORS 222.520, be withdrawn from that agency immediately upon approval of the annexation; and, WHEREAS, LOC 50.05.025 specifies that, where the Comprehensive Plan Map requires a specific Zoning Map designation to be placed on the territory annexed to the City, such a zoning designation shall automatically be imposed on territory as of the effective date of the annexation; and, WHEREAS, the staff report, dated October 18, 2010 which address applicable criteria, is hereby incorporated; and, WHEREAS, this annexation is consistent with Chapter 14 (Urbanization) of the City of Lake Oswego's acknowledged Comprehensive Plan, Oregon Revised Statutes 222.111(2); 222.125; and 222.170 for boundary changes, and Metro Code Sections 3.09.050(b) and (d). EXHIBIT F-1 AN 10-0004 Ordinance No. 2559, AN 10-0004 Page 1 Annexation of one parcel 21 E07DD 3900 Now, therefore, The City of Lake Oswego ordains as follows: Section 1. Legal Description of Property to be Annexed: The real property described as follows is hereby annexed to the City of Lake Oswego: A tract of land located in the southeast quarter of Section 7, Township 2 South, Range 1 East of the Willamette Meridian, Clackamas County, Oregon; more particularly as follows: Beginning at the northeast corner of Lot 16, Bryant Acres (Plat #0383); thence along the east line of said Lot 16, South 170 59' East, 275.40 feet to a point on the north right of way line of Upper Drive (County Road #1009 - 30' wide right of way); thence southwesterly along said north right of way line, South 72° 0l' West, 75.0 feet to the southeast corner of that parcel described in deed to Herbert G. Leveck and Ruby W. Leveck recorded March 15, 1955 in Book 493, Page 126, Deed Records of Clackamas County; thence leaving said right of way line, along the east line of said Leveck parcel, North 17° 59' West, 170.00 feet to the northeast corner of said Leveck parcel; thence along the north line of said Leveck parcel, South 720 0 V West, 75.00 feet to west line of said Lot 16; said point also being the northwest corner of said Leveck parcel; thence along said west line of Lot 16, North 17° 59' West, 105.40 feet to the northwest corner of said Lot 16; thence along the north line of said Lot 16, North 72° 01' East, 150.00 feet to the point of beginning. Section 2. District Retention: The annexed area lies wholly within the following districts and shall be retained within these districts upon the effective date of annexation: Lake Grove Park District Lake Grove Water District Section 3. District Withdrawal: The annexed area lies within the following districts and shall be withdrawn from these districts upon the effective date of annexation: Lake Grove Fire District #57 Clackamas County Enhanced Sheriff's Patrol District Surface Water Management Agency of Clackamas County Ordinance No. 2559, AN 10-0004 Page 2 Annexation of one parcel 21 E07DD 3900 Section 4. Zoning Designation: In accordance with LOC Section 50.05.025, the City zoning of R-7.5 shall be applied to the annexed area. Section 5. Neighborhood Association Designation: In accordance with Goal 1 of the City's Comprehensive Plan, this parcel shall become a part of the Lake Grove Neighborhood Association immediately upon the effective date of annexation. Section 6. Adoption of Findings and Conclusions: The City Council hereby adopts the findings of facts and conclusions set forth in the October 18, 2010 staff report in support of this annexation ordinance. Section 7. Effective Dates: a. Effective Date of Decision to Annex: Pursuant to Metro Code 3.09.050(f), the effective date of this annexation decision shall be immediately upon adoption, unless a governmental entity that qualifies as a "necessary party" under Metro Code 3.09.0200) has contested this annexation, in which event this annexation decision shall be effective on the 10th day following the mailing of this ordinance by the City Recorder to Metro and to all necessary parties who appeared in this proceeding. b. Effective Date of Annexation Ordinance: Pursuant to Lake Oswego City Charter, Section 34, this ordinance shall be effective on the 30th day after its enactment. C. Effective Date of Annexation: Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of either: 1. the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State. Provided, however, that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any city, district or other municipal corporation involved in the area to be annexed, then the effective date of the annexation shall be delayed until, and the annexation shall become effective on, the day after the election. Section 8. Mailing Copies of this Ordinance; Metro Notice. Within 30 days following the date of adoption: a. The City Recorder is hereby directed to mail a copy of this ordinance to all persons and governmental entities that appeared at the public hearing and requested a copy of the ordinance following adoption. Ordinance No. 2559, AN 10-0004 Page 3 Annexation of one parcel 21 E07DD 3900 b. The City Recorder shall mail a copy of this ordinance together with the applicable mapping and notice fee charged by Metro pursuant to Metro Code 3.09.110, to Metro Data Resource Center, 600 NE Grand Ave., Portland, OR 97232. Read by title only and enacted at the regular meeting of the City Council of the City of Lake Oswego held on day of , 2010. AYES: NOES: ABSTAIN: EXCUSED: Jack D. Hoffman, Mayor Dated: ATTEST: Robyn Christie, City Recorder APPROVED AS TO FORM: David D. Powell, City Attorney Ordinance No. 2559, AN 10-0004 Page 4 Annexation of one parcel 21 E07DD 3900 CITY OF LAKE OSWEGO COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 380 A Avenue P.O. BOX 369 Lake Oswego, OR 97034 PHONE: (503) 635-0290 APPLICATION FOR ANNEXATION FILE NAME:�SUBMIT: REVIEW: RESUBMIT: FILE NUMBER(S): AI) /D -00 dy HEARING DATE: CITY FEE RECEIVED: $ -:2010. !` METRO FEE RECEIVED: $ NEIGHBORHOOD ASSN.: Lake Grove CHECKLIST: ❑ Legal Description ❑ Title Report ❑ Assessor's Map ❑ Petition COMPLETENESS DATE: REVIEW: CHECK #: `..* �— RECEIPT #:_45_271 ❑ Fees (City and Metro) ' ❑ Waiver ❑ Delineation of Natural Resources (if required) RE=CEIVED ❑ Resolution 04-38 given to Applicant on //-,r- e � (date) PRINT OR TYPE ALL INFORMATION BELOLP,ityOf Lake OSWego Community Development Dept. APPLICANT ❑ USE MAILING ADDRESS FOR HEARING NOTIFICATION Claude Shadburn 503 636-0374 YOUR NAME PHONE # BUSINESS NAME FAX # 4747 SW U er Drive SUITE ADDRESS SUITE Lake Oswego, Oregon 97035 CITY STATE ZIP E-MAIL APPRESS ycy c - SIGNATURE (ORIGINAL REQUIRED) DATE Note: I consent to an on-site inspection by an employee(s) of the City of Lake Oswego PROPERTY OWNER ❑ (ADDITIONAL OWNER -SEE PAGE 2) Same as above YOUR NAME PHONE # BUSINESS NAME FAX # ADDRESS SUITE CITY STATE ZIP E-MAIL ADDRESS SIGNATURE (ORIGINAL REQUIRED) DATE EXHIBIT F-2 Note: I consent to an on-site inspection by an employee(s) of the City of Lake Oswego Revised: 04/07/05 AN 10-0004 ATTACH ANNEXATION PETITION AND LEGAL DESCRIPTION FROM DEED Annt~TInNA{-.P4UWFRTY O"FR r -I IF MnRF THAN 0NF OWNER ! ✓�Y�//� f 5 ��J��/lCIN�I T1 PROPERTYIZONING DATA 4747 SW Upper Drive Address Approximately 600 feet west of the intersection of Upper Drive and Bryant Road. Location Description MAP & TAX LOT (DO NOT USE (list one per line) -07 & BLOCK) G: D YOUR NAME PHONE t -7 H - BUSINESS NAME FAX # ADDRESS 242Y SUITE._ CITY STATE ZIP E-MAIL ADDRESS •R7.5 SIGNATURE (ORIGINAL REQUIRED) DATE Note: I consent to an on-site inspection by an employee(s) of the City of Lake Oswego PROPERTYIZONING DATA 4747 SW Upper Drive Address Approximately 600 feet west of the intersection of Upper Drive and Bryant Road. Location Description MAP & TAX LOT (DO NOT USE (list one per line) -07 & BLOCK) SITE ACRES ZONING/PROPERTY INFORMATION EXISTING COUNTY ZONING DESIGNA'ION CITY COMPREHENSIVE PLAN DES:GWION CURRENT ASSESSED VALUE TOTAL EX;STING POPULATION 21 E07DD03900 0.65 AC R8.5 •R7.5 136,673 One TOTAL OF PARCEL AREAS. ACRES SO. FT RIGHTS-OF-WAY TO BE INCLUDED Upper Drive Previous) Annexed REASON FOR ANNEXATION: Connection to City Sewer service DESCRIBE NUMBER AND TYPES OF STRUCTURES ON THE PARCEL(S) (USE TAX LOTS AS REFERENCE): One Sinnip Family Residence (20746 samare feet) constructed in 1930 Single Family Residential EXISTING USE OFAREA TO BE ANNEXED: PROPOSED USE OF AREA TO BE ANNEXED: DESCRIBE SURROUNDING LAND USES (USE TAX LOTS AS REFERENCE) NORTH—SFR SOUTH —SFR EAST —SFR WEST --SFR Revised: 04/07/05 I 1 � i 7 i I N c 'L CL C (A a � � 7 x CLcr 3 C �7 > 77w A � V � z CI) C V c a aR � � o CD W 0 3 E. CD m x ,� o 4 3 � z � d � 0 � z N � O 4 " CITY OF LAKE OSWEGO LAKE OSWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: David A. Prock, P.E., Deputy Project Director LO -Tigard Water Partnership SUBJECT: Award of a Personal Service Contract to Universal Field Services, Inc. For Right -of -Way Acquisition Services for the Expansion of the City of Lake Oswego's Water Supply System DATE: October 7, 2010 ACTION 380 AAvenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us Move to award a personal service contract in the amount not -to -exceed $399,844 to Universal Field Services, Inc., to provide right-of-way acquisition services related to the expansion of the City of Lake Oswego's water supply system. INTRODUCTION/BACKGROUND This Council Report provides information regarding the recently concluded competitive selection process to select a firm to provide right-of-way acquisition services in support of the Lake Oswego -Tigard Water Partnership (the Program). Award of this contract by Council is required by the City's Public Contracting and Purchasing Rules and State public contracting laws and regulations. The Lake Oswego -Tigard Water Partnership's Program Management Team is close to concluding the Project Definition Phase that will more completely define the type, size, and location of each of the Program's component projects. As a result of this effort, the locations of the various facilities are better defined to the extent that we are now able to identify private and public properties that will require some type of acquisition to allow construction of the facilities. Anticipated acquisitions consist of the following: • Pipeline easements to allow construction and on-going maintenance of the facilities where they must cross private and public owned property (not public rights-of-way, i.e. streets, etc.); • CC&R releases for the properties located in the Maple Grove Plat laying to the south of the Water Treatment Plant (WTP). These are necessary to allow construction of a portion of the new WTP facilities on residential lots that are owned by the City, but where currently the CC&Rs only provide for residential use; and, Page 2 • Fee purchases to acquire a new pump station site for the replacement Bonita Pump Station. DISCUSSION On July 21, 2010, the City issued a Request for Proposals (RFP) to provide right-of-way acquisition services to assist the Lake Oswego -Tigard Water Partnership's Program Management Team. In response to the solicitation, proposals were received from the following firms: • Epic Land Solutions, Inc., Portland, Oregon • HDR Engineering, Inc., Portland, Oregon • Tierra Right of Way, Ltd, Tucson, Arizona • Universal Field Services, Inc., Salem, Oregon A complete listing of the RFP respondents and their sub -consultants is included in Attachment A for reference. Proposals were reviewed and scored by the City's Source Selection Committee (SSC) consisting of the following individuals: • David Powell, City Attorney • Jane Heisler, Communications Director • David Prock, Deputy Project Director, LO -Tigard Water Partnership The evaluation criteria and scores assigned to the proposals by the SSC are noted in Attachment B. Based upon the review and evaluation of the four proposals received, the following two firms were selected by the SSC to move forward to the interview phase of the solicitation process: • HDR Engineering, Inc., Portland, Oregon • Universal Field Services, Inc., Salem, Oregon Interviews with the two noted firms were held on September 23, 2010. Based upon the outcome of the interview process, the SSC was unanimous in its selection of Universal Field Services, Inc. to recommend for Council approval. In order to provide a basis for respondents to the RFP to develop their estimate of fee, a set of assumptions were used regarding the number of properties that were anticipated to be involved in the acquisition process. At the time of the services solicitation, the proposers were presented with the estimated number and type of acquisitions as noted in Attachment C. At the time of the solicitation, it had not been determined as to what approach would be used to address the issue regarding the existing CC&Rs for the properties located in the Maple Grove Plat. It has now been determined that the appropriate approach is to request each property owner of record in the Maple Grove Plat to sign a CC&R release that would void that particular CC&R restricting development to only residential uses. It is necessary to obtain approvals from a minimum of 75 percent of the property owners. Individuals making contact with the various property owners need to be skilled property acquisition negotiators. The logical choice of individuals to handle this additional work is the same acquisition team that is being recommended for award of this contract. As noted above, the work associated with obtaining the CC&R releases was not included in the original RFP. Staff has negotiated with Universal Field Services, Inc. to add this additional item to their base scope of work and to include it in their personal service contract. As noted in Attachment D the originally proposed Page 3 fee estimate for the original scope of services was $324,480. The cost for this additional work is estimated to be $75,364 for a total contract award NTE of $399,844. As can be seen from a review of the estimated fees provided by the other two proposers, even with this additional work added to the recommended contact with Universal Field Services, Inc., they still have the most competitive, estimated total fee. FISCAL IMPACT Award of this personal service contract represents the next step in a progression of actions and decisions begun with the signing of the Agreement by the two cities in August 2008. Under this personal service contract, the City will use Universal Field Services for services to be provided on a time and materials basis with a maximum fee not -to -exceed $399,844 through June 30, 2014 (the anticipated duration of the contract). Pursuant to the Agreement, Tigard's share of this amount is $213,797 and the City's share is $186,047. Tigard will be billed monthly for their share of all program expenses. The adopted FY 2010-11 Budget contains the needed funds to fully fund the City's share of these costs. RECOMMENDATION It is recommended that Council approve award of a personal service contract in the amount Not -to -Exceed $399,844 to Universal Field Services, Inc., to provide right-of-way acquisition services related to the expansion of the City of Lake Oswego's water supply system. ATTACHMENTS 1. Attachment A - Proposals Received to Provide Right -of -Way Acquisition Services 2. Attachment B - Proposal Evaluation Criteria and Scoring Matrix 3. Attachment C - Property Acquisition Assumptions 4. Attachment D - Proposer Fee Summary Reviewed by: r—j6,(-t �� , 44/n�� De ment Director ', (if there is a financial impact) Finance Direct6-rl _ City Manager (if legal issues) Page 4 Attachment A Proposals Received to Provide Right -of -Way Acquisition Services In response to the RFP for Right -of -Way Acquisition Services, these proposals were received by the City of Lake Oswego from the following teams (prime and subcontractor(s)): • Prime: Epic Land Solutions, Inc., Portland, Oregon Subcontractors: Westlake Consultants, Inc., Tigard, Oregon Harper Houf Peterson Righellis Inc., Portland, Oregon Cardno WRG, Portland, Oregon Real Property Consultants, Portland, Oregon Arvidson & Associates, Beaverton, Oregon R. P. Herman & Associates, Portland, Oregon Lawyers Title, Portland, Oregon • Prime: HDR Engineering, Inc., Portland, Oregon Subcontractors: Bluedot Group, Tigard, Oregon William E Adams, MAI, Salem, Oregon Title Company: not specified • Prime: Tierra Right of Way, Ltd, Tucson, Arizona Subcontractors: Pace Engineers, Lake Oswego, Oregon Johnson Appraisal, Milwaukie, Oregon Real Property Consultants, Portland, Oregon Title Company: not specified • Prime: Universal Field Services, Inc., Salem, Oregon Subcontractors: OBEC Consulting Engineers, Lake Oswego, Oregon Integra Realty Resources, Portland, Oregon Title Company: not specified Page 5 Attachment B Proposal Evaluation Criteria And Scoring Matrix Criterion Description Proposal Scoring Epic Land HDR Tierra Universal Solutions Engineering Right of Field Way Services 1. How proposer will establish, implement, and 15.0 23.0 24.0 22.5 sustain the right-of-way acquisition program functions identified in RFP Section 2 for the duration of the Program. 2. Their proposed Scope of Work and that the Scope 54.0 73.5 73.5 70.5 of Work reflects a thorough understanding of all elements of the right-of-way acquisition program being undertaken by the Program Sponsors. 3. Their proposed schedule and narrative, showing 51.0 70.5 81.0 69.0 that the schedule represents a thorough analysis of project constraints, risks, event durations, and project management efficiencies and impediments. 4. Their proposed schedule of deliverables, showing 37.0 46.0 52.0 50.4 that the schedule best reflects an efficient and effective means of conveying information to project sponsors, documenting decisions, and facilitating program delivery. 5. Their proposed services approach, demonstration 56.0 96.0 92.0 92.0 that their approach will successfully perform and deliver the right-of-way acquisition program within the constraints of regulations, schedule, and budget. 6. Their ability to identify specific areas of concern 40.5 75.0 61.5 63.0 regarding delivery of the program within the schedule and budget identified and the ability to implement measures to resolve such concerns. 7. Their proposed fee to provide all services as 45.0 67.5 12.0 69.0 identified in this request for proposals. 8. Their proposed statement of qualifications 66.0 82.5 66.0 72.0 demonstration their firm information, team member information, and references. Subtotals 364.5 534.0 462.0 508.4 9. (Interview) Their client services vision for the right- 0.0 48.0 0.0 72.0 of -way acquisition services program as articulated in the interview. Total Scores 364.5 571.0 462.0 580.4 Page 6 Attachment C Property Acquisition Assumptions For the purposes of estimating the level of effort and commensurate fee to conduct the right-of-way acquisition services program, the following assumptions shall be used: I. Temporary Construction Easements (TCE) —11 each 2. Permanent Pipeline Easements (PPE) —10 each 3. Combined Permanent Pipeline / Temporary Construction Easements (CPP/TCE) — 20 each 4. Fee Acquisition (FEE)— 2 each Individual RIPS Raw Water Finished Waluga Bonita Projects / Water Treatment Water Reservoir Water Acquisition Pipeline Plant Pipeline Pump Type Station TCE 1 9 0 1 0 0 PPE 0 1 0 9 0 0 CPP/TCE 0 18 0 2 0 0 FEE 0 0 0 0 0 2 Estimated 05.2012 04.2012 04.2011 04.2012 05.2011 10.2011 Date to Start / 09.2013 08.2013 04.2013 11.2013 09.2012 09.2012 Complete Acquisitions Table 1 Acquisition Type Distribution Page 7 Attachment D Proposer Fee Summary Proposer Original Estimated Base Fee Epic Land Solutions, Inc. $ 501,300 to $ 525,950 HDR Engineering, Inc. $ 422,000 Tierra Right of Way, Ltd Non-responsive (See Note 1) Universal Field Services, Inc. $ 324,480 (See Note 2) Notes: 1. Proposer did not provide required estimated fee information. 2. Total estimated fee adjusted upward from $ 317,350 by $ 7,129.55 to correct math error. LAKE OSWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack D. Hoffman, Mayor Members of the Lake Oswego City Council Alex D. McIntyre, City Manager FROM: David Powell, City Attorney CITY OF LAKE OSWEGO 380 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us SUBJECT: Resolution 10-58 — Declaring the public necessity to acquire real property interests for the Lake Oswego -Tigard Water Partnership Project, and authorizing related activities. DATE: October 27, 2010 ACTION Adopt Resolution 10-58 declaring the public necessity to acquire real property interests for the Lake Oswego -Tigard Water Partnership project, and authorizing related activities. INTRODUCTION/BACKGROUND Construction of water supply facilities for the Lake Oswego -Tigard Water Partnership project will include expansion of the water intake facility and the water treatment plant, as well as construction of transmission pipelines. Although much of the project will be within the public right of way or on City -owned property, there will also be locations where the City will need to acquire easements or other real property interests. The City is committed to using every effort to negotiate voluntary acquisition agreements with property owners. On November 2"d, the City Council will be asked to award a contract to a right-of-way acquisition consultant that has been selected largely because of its demonstrated ability to work successfully with owners in this type of project. It is always possible that, despite the City's best efforts, a circumstance could arise that requires the City to exercise its eminent domain (condemnation) authority in order to ensure that the public pays a fair price for a pipeline easement or other property interest. State law says that, before using eminent domain, a public entity must adopt a resolution declaring the public necessity and the purpose for the acquisition (sometimes called a "Resolution of Necessity"), followed by an attempt to reach an agreement with the owner. As a result, for any project for which condemnation is a possibility, it is advisable to adopt such a resolution before approaching property owners. Page 2 DISCUSSION Typically a Resolution of Necessity describes the specific properties being considered. However, because the LO -Tigard Water Partnership involves linear utility facilities, and because the precise route is still being refined, it is recommended that the City first adopt a generally -stated resolution. This will support the initial contacts and evaluations. Additional resolutions may be presented for adoption after specific acquisition needs have been identified. Attached Resolution 10-58 is proposed as an initial, general Resolution of Necessity for the water project. It has several components: • The resolution declares that the acquisition of property for the LO -Tigard Water Partnership Project is necessary and serves a public purpose. • The resolution also declares that the project is planned, and will be located, in a manner that will be compatible with the greatest public good and the least private injury. (Oregon law says that a Resolution of Necessity is "presumptive evidence" of that compatibility.) • The Resolution authorizes the City Manager or his designee to examine, survey, sample and test real property (consistent with the authority granted by state law). • Finally, the resolution authorizes the City Manager or his designee to "negotiate the acquisition" of property for the project. The actual acquisition remains subject to City Council approval. RECOMMENDATION It is recommended that the City Council adopt Resolution 10-58 declaring the public necessity to acquire real property for the Lake Oswego -Tigard Water Partnership Project and authorizing related activities. ATTACHMENT • Resolution 10-58 RESOLUTION 10-58 A RESOLUTION OF THE LAKE OSWEGO CITY COUNCIL DECLARING THE PUBLIC NECESSITY TO ACQUIRE REAL PROPERTY FOR THE LAKE OSWEGO-TIGARD WATER PARTNERSHIP PROJECT AND AUTHORIZING RELATED ACTIVITIES WHEREAS, as authorized by Resolution 08-61, the City of Lake Oswego ("City") has entered into an intergovernmental agreement with the City of Tigard for the design, construction, ownership and operation of water supply facilities ("Project"); and WHEREAS, the City has the authority to engage in activities that promote the health, safety, benefit and general welfare of the public, including independently or jointly acquiring, owning and operating utilities and water systems within and outside the city boundaries as called for in the Project; and WHEREAS, the City and its authorized assigns may be required to enter upon, examine, survey, conduct tests upon and take samples from real property for the purposes of the Project, and to negotiate acquisition of and acquire property for the Project; IT IS HEREBY RESOLVED by the Lake Oswego City Council that: Section 1. The Lake Oswego City Council declares that acquisition of property for the Project is for a public purpose and is necessary in order for the City to carry out the Project. Section 2. The Lake Oswego City Council further declares that the Project is planned, and will be located, in a manner that will be most compatible with the greatest public good and the least private injury. Section 3. The City Manager or his designee are authorized to carry out activities necessary for examining, surveying, sampling and testing real property for purposes of the Project, and are authorized to negotiate the acquisition of property for the Project. Acquisition of real property shall be subject to the approval of the City Council. Section 4. This Resolution shall be effective upon passage. Considered and enacted at the meeting of the Lake Oswego Council held on the 2nd day of November, 2010. Page 1 of 2 — Resolution 10-58 AYES: NOES: EXCUSED: ABSTAIN: Jack D. Hoffman, Mayor ATTEST: Robyn Christie, City Recorder APPROVED AS TO FORM: David Powell City Attorney Page 2 of 2 — Resolution 10-58 CITY COUNCIL REGULAR MEETING MINUTES November 2, 2010 Mayor Jack Hoffman called the regular City Council meeting to order at 5:36 p.m. on November 2, 2010, in the City Council Chambers, 380 A Avenue. Present: Mayor Hoffman, Councilors Hennagin, Olson (5:41), Moncrieff, Tierney, Jordan, and Vizzini. Staff Present: Alex McIntyre, City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Joel Komarek, LOIS Project Director; Jane Heisler, LOIS Communications Director; Erica Rooney, Asst City Engineer; Shawn Cross, Asst Finance Director; Paul Espe, Associate Planner; Dave Prock, Deputy Project Director, Lake Oswego Tigard Partnership; 3. PRESENTATIONS 3.1 LOIS Update Mr. Komarek presented photos of what the lake looked like in the Lake Down Phase. He mentioned that today he took officials from the U.S. Army Corps of Engineers and the Department of Environmental Quality on a tour of the lakebed. He reported that the officials were appreciative of the opportunity to see the work and pleased that the City was following all the conditions of its permits. He showed some pictures of the lake level controlling pumping system with its 17 pumps mounted on barges working to keep the lake level down so that the contractor can work on dry ground. He noted that they would finish the installation of the Bryant Road debris sump next week. Ms. Heisler reported that, following the discovery of contamination (diesel and gasoline) in the west end of the lake, the team immediately contacted DEQ and began the evaluation and containment process. She mentioned sending e-mail and postcard notifications to residents impacted by the various work projects. She indicated that the phone calls these days expressed concern about the effect of the heavy rain, signage, speeding trucks, and road closures. She directed people to the LOIS Facebook page where the team posted a lot of videos and pictures. She presented more pictures of the project work, including manholes and bypass pipes. Mr. Komarek stated that the project was on schedule with no problems anticipated. He mentioned their optimism that they would bring the project in at budget ($90 million). He indicated to Councilor Tierney that additional silt has been entering the lake during the recent rainfall. However, the team was implementing a number of best management practices in the lake to trap the sediment and prevent it from reaching the Willamette. Ms. Heisler confirmed to Councilor Tierney that the contamination had been in the lake for years and had nothing to do with the use of trucks and other equipment on the project. Mr. Komarek clarified to Councilor Hennagin that the contamination near the mouth of the Blue Heron Canal had been buried under an impermeable cap of fine silt and clay. When the contractor excavated for an access road, they smelled it and then noticed a sheen when water flowed into the excavation. He said that they removed 800 tons of material for disposal at the Hillsboro landfill site. Mr. Komarek indicated to Councilor Tierney that, because the contamination lay within the City's fee simple strip, cleaning it up was the City's responsibility. City Council Regular Meeting Minutes Page 1 of 10 November 2, 2010 Ms. Heisler mentioned that the other media contact they had with the LO Review, in addition to the contamination contact, was on the issue of low oxygen levels in the lake and some sturgeon coming up dead. She indicated that the rain was bringing the oxygen levels back up and they thought that that would take care of the problem. Ms. Rooney indicated to Councilor Jordan that ODOT discovered a problem under the bridge that needed emergency resolution while taking advantage of the opportunity to inspect the bridges while the lake was down. She said that the bridge structures themselves were fine; the problem was scouring under the abutments. 3.2 Water Partnership Update Mr. Komarek reported that they were working diligently on the permitting process, which involved federal, state, and local agencies. He mentioned recently completing an in -stream habitat assessment of the Clackamas River to support the biological analysis submitted to the Corps as part of a joint permit application. He reviewed the six projects that comprised the program: the river intake on the Clackamas River, the raw water pipeline, the treatment plant, the finished water pipeline connecting the treatment plant to the Waluga Reservoir in West Waluga Park, and the Bonita Road pump station. He indicated that the team has completed the draft supply facilities capital improvement plan, which the joint City Councils would review next week. He noted that the intergovernmental agreement (IGA) with Tigard required both Councils to adopt the report before the project could move forward. He explained that the plan documented the findings and performance criteria as well as defining the starting point for design firms. He stated that the design firm procurement was underway. He mentioned a workshop they held last month, attended by over 70 individuals representing a variety of firms interested in learning more about the project. He said that they issued requests for qualifications last month with the intention of short listing up to six firms for each of the four design packages. He indicated that the first RFP for a design package would go out early next year. He reported that the project definition effort found that the costs have increased slightly over earlier estimates due to the inclusion of ozone in any expansion of the water treatment plant, as recommended by the expert panel and Citizen's Sounding Board. He noted that the estimates also included contingencies for construction and environmental mitigation. He explained that, while this would require a slight upward adjustment to the 2008 financing plan, the project definition reaffirmed that the partnership was still a good business decision relative to the other supply options considered. Ms. Heisler indicated that their focus last month was on the Robinwood neighborhood, Maple Grove Plat, and Waluga Reservoir neighbors, as the treatment plant and the reservoir were the two primary facilities with the most neighborhood impacts. She mentioned the Good Neighbor Plan workshop held last week with the Robinwood neighborhood. The team would continue that discussion on December 1. She noted that both Tigard and Lake Oswego were getting their cost of service analyses in order, as it would impact rates. She mentioned a November 30 study session for Council and a public hearing on the new fees towards the end of December. She reported that the Committee of Four and the Oversight Committee recommended supporting the Technical Committee's recommendation of a 38 million gallon pumping capacity and ozone, as recommended by the expert panel. Mr. Komarek reviewed the schedule. He noted that both Councils would adopt the supply facilities capital improvement plan in December. He mentioned the favorable ruling that the City received from the administrative law judge on its water rights; the issue was now waiting on the final order City Council Regular Meeting Minutes Page 2 of 10 November 2, 2010 from the Department of Water Resources Director. He observed that the Council has already seen the updated project cost estimates. He indicated to Councilor Jordan that because Lake Oswego treated its water, it would not face Portland's problem of discolored water from the Bull Run system. Portland did not filter their source or treat their water, and therefore, the chemical substances in the leaves falling into the water after the first heavy fall rain discolored the water. He noted that the water was fine to drink. 3.3 Review of First Quarter Financial Information Mr. Cross reviewed the information on the General Fund (pp. 1-3). He mentioned that usually the City received 86% of its property tax revenues in December because most people took advantage of the 3% discount. He indicated that staff would watch how the property taxes came in because the 1 % assumed growth the City budgeted for was turning out to be .3% growth in reality (p.1). He noted that the City could pull funds out of contingency if necessary. He explained that the large increase in intergovernmental revenues in the first quarter over last year came from the $1.2 million received by the City in a September fee payment from Tigard. He pointed out that staff no longer did the interfund transfers seen in previous budgets because the City combined all those separate funds into the General Fund. He mentioned receiving a question about worker's compensation. He explained that the City paid the roughly $450,000 bill it received every July in July as a matter of fund accounting; there was no pre -paid expenditure for fund accounting. He indicated that the City made its debt service payments in December and January. He mentioned that the City budgeted 3% interest but the rates were coming in just under 2% (p.2). He mentioned a question about the transfers out. He explained that when the Community Development Fund (Engineering and Planning) split into the Engineering Fund and the General Fund (Planning), the $300,000 Bridgeport settlement had been sitting in the Planning part of the Community Development fund. Staff decided that the money belonged in the Street Fund for projects on Boones Ferry near Tualatin because that was what the money was for; they would make that transfer later. He reviewed the Water Fund (p.3). He noted that sales and services were down $113,000 due to water conservation and a rainy June lowering water consumption (900,000 units down from 1.1 million units last year). He mentioned that lower bulk water sales was another factor, in that Tigard purchased only $2,000 of bulk water instead of the $82,000 it bought last year. He noted that the .7% transfers from the Tourism Fund to the General Fund reflected administrative costs (p.3). He explained that the transfer from the Trolley Fund to Economic Development represented a one-time transfer for work done by the Economic Development department (p.3). He reported that staff realized during the audit that, for reporting purposes, they needed to put the LO/Tigard Water Project Fund under the Water Fund because it was a capital project within the water utility. He indicated that staff would look at keeping it as its own fund or set it up as a separate fund within the Water Fund, similar to the LOIS fund. He mentioned the $957,000 FEMA grant the City received for the dam. He indicated that the City has already started the process to reimburse the Lake Corporation for the work. Ms. Rooney reviewed the two capital improvement program (CIP) matrices in the report. She observed that the CIP spending to date/budget graphs were self-explanatory (pp.21-22). She indicated that the composite project schedule (pp.23-24) showed the major milestones for each project as known at this time. She responded to the questions submitted earlier by Councilor Tierney. She explained that they showed the pavement preservation projects (Work Order Nos. 139 and 140) as a whole in the City Council Regular Meeting Minutes Page 3 of 10 November 2, 2010 budget because they came out of the same funding source. Staff showed them separately on the schedule because they occurred separately in time. She indicated that, while it was possible for staff to spend all the pavement preservation funds in this fiscal year, they were struggling with whether to spend all the money on small projects this year or save it up for larger projects. She explained that staff used the information from the study done this year to analyze the design needs for several major arterials and collectors in the area and the information from the City's annual PCI study in deciding how to balance those needs. She said that staff would come to Council with a report for this major decision. She explained that ODOT's discovery of `scour critical' damage under some bridges, while taking advantage of the lake down phase to do its regular bridge inspections for the City, necessitated the emergency bridge repairs. She indicated that staff had set aside some money in the Engineering Fund for this sort of unexpected emergency. They were hiring a consultant to determine the proper fix, which they intended to complete before the lake level went back up. She noted that this unexpected project has affected all other Engineering projects, and could cause some schedules to slip. She reiterated that it was an emergency that the City needed to take care of now. She said that it was not likely that staff would spend all of the annual water main rehab funds this year. She explained that staff has been fully immersed in the Wastewater Master Plan project and another wastewater capital project in Lake Forest. She spoke of adjusting the CIP for the next year in order to not take on any new annual water main projects but instead do the projects they delayed from this year. She indicated that they did not have the staff capacity at the level they had hoped for. She clarified to Councilor Olson that the annual water main rehab and other water projects were separate from the LO/Tigard water project. She confirmed that staff would coordinate with the LO/Tigard project team for those projects occurring in the area of the water project work. She indicated that it was also not likely that staff would expend all the monies in the annual wastewater project fund this year. She explained that staff was waiting on the CIP prioritization of projects list, which the Wastewater Master Plan would produce, before spending the money. Staff wanted to make sure that it was spending the money in the right way and on the highest priority first, but that list would not be available for discussion until early next year. Councilor Hennagin asked why the City did not have the expertise in its Engineering Department to undertake the bridge analysis and repairs. Ms. Rooney explained that bridges were a specialization within the engineering industry and required structural and hydrologic engineers to do the work. The City currently did not employ those types of engineers. Councilor Hennagin mentioned that he has never heard of Chow Corner (p.23). Ms. Rooney indicated that Chow Corner was a pocket park located at the intersection of Jean and Boones Ferry Roads. She explained that a previous development project in that area did not take the sidewalks on either side of Jean Road over the railroad tracks. As a result of conditions of approval for the Bridgeport project six years ago, the City had the designs to complete the sidewalks and to enable bicyclists to cross the tracks safely also, which it intended to do with this project. Mr. Powell mentioned that Chow Corner was named after Tom Chow, the previous property owner who dedicated the pocket park to the City 12 years ago. Councilor Hennagin mentioned that he did not recall why the Council budgeted 1 % in property tax receipts over the automatic 3% increase. Mr. Cross indicated that, while he was not certain what growth the Council had anticipated, the two previous years had a 1 % increase in the down economy. He said that the .3% translated to $200,000 less out of $29 million. Ms. Rooney confirmed to Councilor Jordan that staff coordinated all City utility projects with street projects in order to avoid tearing up the street for each project. She described how staff worked with the LO/Tigard team's schedule in deciding when to do which projects within a quarter - City Council Regular Meeting Minutes Page 4 of 10 November 2, 2010 mile swath of the proposed pipe alignment. With reference to the Qwest and Northwest Natural Gas projects at the corner of Upper Drive and Reese Road, she explained that it was impossible for the City to control private utilities' projects, although staff did its best to manage the timing of those projects. Councilor Tierney asked if staff thought it appropriate for the Council to adopt a capital budget of a certain amount with the expectation that the City would not spend that money in the fiscal year. He clarified his question by stating that the Council approved the pavement preservation, water, and sewer programs to certain dollar amounts, yet staff was indicating in this first quarter report that it was unlikely that the City would do the work associated with those dollar amounts. Ms. Rooney pointed out that the CIP process for this year started a year ago. She indicated that several things have changed since last January when the CIP was locked in, such as the Wastewater Master Plan taking up more of staff's time than anticipated. She commented that staff would get to a balancing point where they understood exactly what staff's capacity was against the project dollars. She also discussed the effect of the project budget and the project construction usually occurring in two different fiscal years. She indicated that staff has not yet perfected budgeting a project in two different fiscal years, but they hoped to figure it out in the plan for next year. Councilor Tierney indicated that his expectation was that the staff would be more capable of doing that task, as this was the second year in a row that the City has significantly underspent the capital budget. He commented that the Council could have allocated those funds in a different direction, or increased the staff capacity if it had known of the need to do so. He observed that, as a policy making body, the Council voted to approve the dollar amounts requested. He stated his expectation that staff would spend those dollars in that year. He encouraged moving towards better planning so that the Council could be more realistic on where it went. He recalled that the Council approved a PCI consulting company at the highest bid because staff needed the work done in order to have projects in the pipeline. Ms. Rooney confirmed that that tactic worked. She explained that staff had two separate studies done last year to inform the upcoming Council decision on whether to stay with the annual pavement preservation projects on smaller roads or to do some large projects. She indicated that staff would bring the study results to the Council for discussion and direction. Councilor Tierney asked if a capacity issue in City resources led to the gap in the ability to design and plan projects. Ms. Rooney explained that the City has had new staff changes in the last 18 months, but now all the new individuals were up to speed. She mentioned that, while Engineering was now fully staffed, they had only three engineers, who did more projects than CIP projects. She stated that they had more needs than they had staff ability to do. She pointed out that it was a question of how quickly the Council wanted projects done: the City could hire enough people to do 10 years' worth of projects in 10 years or do the projects over 20 years with existing staff. She referenced the Councilor's comment about spending the money elsewhere. She clarified that the City had to spend the money in each of the different utility funds in that utility fund. Councilor Tierney observed that another possibility was not collecting the funds. Ms. Rooney reiterated that they have been discussing the possibility of saving the funds up for larger projects. Councilor Tierney indicated that what he thought was missing was the comprehensive lists. He noted that the Council voted on a specific list of projects. He argued that if the staff did not think that they could do those projects, then they should have told the Council that they needed to allocate x amount of dollars this year for the beginning parts of the projects and then spike the budget in future years. He cited reserving funds for PERS as an example. He mentioned his concern about reserving General Fund capital funds for spending on future capital projects when the City could spend that General Fund revenue on other things in the budget. He commented that he thought they would be disappointing themselves if they did not figure out how to reserve unspent funds and designate them for future capital projects. City Council Regular Meeting Minutes Page 5 of 10 November 2, 2010 Mr. McIntyre pointed out that staff did reserve the funds by default in that they went into the ending fund balance for that particular fund, which became available as a resource for the following year. He commented that what Ms. Rooney was trying to explain was that the City could spend all the money on slurry seals and do those projects forever, or it could start reserving portions of the revenue stream for bigger projects. He indicated that what he heard Councilor Tierney say was that, as a Councilor, he was unaware of what those larger projects might be. He noted that it was staff's obligation to help him better understand those projects. He observed that, over the past two years, staff has become better at developing and managing the City's Capital Improvement Program. He commented that it was not surprising that staff was struggling to get the process perfected, given the new engineering management, finance management, and City management staff that has come on board in the last 18 months. He indicated that he was impressed with Ms. Rooney's ability to talk knowledgably about these projects because she was new on staff a year ago. He recalled that his ongoing commentary for two years respecting the General Fund structuring was that if they reserved funds for larger projects, the monies would be there. He observed that all the other funds had been properly structured. He acknowledged that there was a capacity issue, which would continue to exist on the engineering side and which explained why they used consultants. Councilor Tierney indicated that he supported the fine-tuning of the program. He acknowledged that his comments were critical in nature but he expected staff to close the gap. Councilor Tierney referenced Mr. Cross' comment that the City could take money out of contingency to make up for unanticipated revenue shortfalls. He pointed out that contingency was the City's reserve funds and did not represent current revenues. Spending those meant that the City spent more money in the fiscal year than it generated in that fiscal year. He commented that he was less cavalier about taking the money out of contingency. Mr. Cross mentioned that, in the General Fund, there have been overtime payments in excess of 25% in police and fire trying to cover for shortages. Councilor Tierney commented that he thought it best to keep the LO/Tigard water project fund separate from the Water Fund for the policy level discussions. He pointed out that blending it into the Water Fund skewed the figures so badly that they could not make comparisons. He recalled a Council goal to keep the funds separate for record keeping and presentation to the Council. Councilor Olson indicated that she understood what Mr. McIntyre was saying to Councilor Tierney in terms of staff doing a better job of letting the Council know what the big projects were for which they were saving up money. She argued that Councilor Tierney's point had been that the Council budgeted specific projects in the CIP that were not being done. The question was why those projects were not being done. Mr. McIntyre indicated to Councilor Olson that Ms. Euler would present the five-year financial plan to the Council in two weeks. 4. CONSENT AGENDA Councilor Moncrieff recognized Stephani Wax, Kevin O'Leary, Madeline Brewster, and Kavita Rajani, the Youth Board members present at the meeting. Councilor Tierney recognized Puja Bhutani, the new Planning Commissioner. Councilor Jordan moved the Consent Agenda. Councilor Hennagin seconded the motion. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Hennagin, Olson, Moncrieff, Tierney, Jordan, and Vizzini voting `aye.' [7-0] 4.1 REPORTS 4.1.1 Resignation from the Historic Resources Advisory Board Action: Accept resignation of Marylou Colver from the Historic Resources Advisory Board City Council Regular Meeting Minutes Page 6 of 10 November 2, 2010 4.2 RESOLUTIONS 4.2.1 Resolution 10-63, appointing youth members on advisory boards Action: Adopt Resolution 10 - 63, appointing Kevin O'Leary to the Library Advisory Board; Josh Nudelman to the Parks & Recreation Advisory Board; Madeline Brewster to the Historic Resources Advisory Board; Kavita Rajani to the Transportation Advisory Board; and Stephani Wax to the Natural Resources Advisory Board 4.2.2 Resolution 10-64, authorizing the establishment of commercial food waste collection rates for Allied Waste of Lake Oswego Action: Adopt Resolution 10-64 4.2.3 Resolution 10-66, making appointments to the Planning Commission Action: Adopt Resolution 10 - 66, appointing Puja Bhutani to a four - year term ending May 31, 2014; Todd Prager to the remainder of a term ending May 31, 2011; and to designate Ryan Flynn as alternate should there be a vacancy due to attrition through April 30, 2011 4.3 APPROVAL OF MINUTES 4.3.1 March 23, 2010, regular meeting 4.3.2 June 22, 2010, special meeting 4.3.3 June 23, 2010, special meeting 4.3.4 September 28, 2010, special meeting Action: Approve minutes as written END CONSENT AGENDA 5. ITEMS REMOVED FROM THE CONSENT AGENDA 6. CITIZEN COMMENT 7. PUBLIC HEARINGS 7.1 Ordinance 2559, an ordinance annexing to the City of Lake Oswego one parcel comprising approximately 0.65 acres at 4747 Upper Drive; declaring City of Lake Oswego zoning pursuant to LOC 50.05.025; and removing the parcel from certain districts (AN 10-0004) Mr. Powell reviewed the standard land use hearing procedures and testimony time limits. He asked if any Council members had any ex parte contacts, bias, or conflicts of interest to declare. There were none. There were no challenges. STAFF REPORT Mr. Espe reviewed the specifics of this owner -initiated petition to annex a .65 -acre property at 4747 Upper Drive. He said that the low-density residential R-8.5 County zoning would change to low-density residential R-7.5 City zoning upon annexation. He described the available utilities (p.112). He indicated that the annexation met all applicable State and Metro criteria (pp. 115-124). He mentioned the service districts that the property would withdraw from upon annexation (p.112). He said that the property would become part of the Lake Grove Neighborhood Association. He recommended approval of the annexation. City Council Regular Meeting Minutes Page 7 of 10 November 2, 2010 QUESTIONS OF STAFF Mr. Espe indicated to Councilor Moncrieff that all properties outside the city were currently on septic systems. He commented that they usually annexed when a septic system failed. He informed Mayor Hoffman that the applicant indicated to him that the septic system was failing. He explained that the applicant had intended to annex in 2007 as part of putting his estate in order and making it possible to connect to sewer in the future but family and health issues forced him to put his application on hold. Mr. Komarek explained to Mayor Hoffman that the City constructed the 8 -inch sewer as part of the sewer extension program. When a property owner connected to that line, he/she reimbursed the City for the expense of extending the sewer plus escalation over time from the date of the sewer construction. PUBLIC TESTIMONY Mayor Hoffman opened the hearing to public testimony. Hearing none, he closed the hearing. COUNCIL DISCUSSION Councilor Olson moved to enact Ordinance 2559. Councilor Hennagin seconded the motion. A voice vote was taken, and the motion passed with Mayor Hoffman, Councilors Hennagin, Olson, Moncrieff, Tierney, Jordan, and Vizzini voting `aye.' [7-0] 8. REPORTS 8.1 Personal Services Contract to Provide Right -of -Way Acquisition Services for the expansion of the City of Lake Oswego's Water Supply System Mr. Prock presented the staff recommendation to award a personal services contract to Universal Field Services to assist the City in right-of-way acquisitions. He reviewed the competitive bid selection process (p.136). He indicated that staff anticipated that $399,844.00 would be sufficient to handle all the right-of-way services expected. He confirmed to Mayor Hoffman that the contract amount did not include the actual payments for right-of-way acquisitions. He confirmed to Councilor Hennagin that Universal would submit monthly statements for the time and effort they expended. At the Councilor's request, he discussed the selection criteria. He explained that staff provided their best estimate of the number and types of acquisitions needed. The bidders used that and other information to determine their fee estimates. He indicated that staff felt that the fees presented fairly represented the level of effort that would be needed, given the skill levels of all four firms. He indicated to Councilor Hennagin that the contractor would handle the onsite contacts and negotiations with the property owners, as well as draft the easements and obtain the signatures. He explained that the subcontractors were typically surveyors, appraisers, and title report researchers. Councilor Hennagin asked how much negotiation went into these transactions. Mayor Hoffman reviewed the typical approach used in determining the fair market value of an easement, which involved an experienced appraiser. Mr. Prock confirmed to Councilor Hennagin that the selection criteria included more than the fee. He mentioned past project work, qualifications of project members, ability to maintain a schedule, ability to work with the City, and skill and ability to work with the public. He noted that the intent of the selection criteria was to make sure that the contractor could do the job correctly and properly without creating difficulties with the citizens for the project team. He indicated to Councilor Hennagin that there was the potential for litigation if they could not negotiate an agreement with a property owner. He mentioned staff's expectation that they would be able to come to terms on all of these right-of-way acquisitions. City Council Regular Meeting Minutes Page 8 of 10 November 2, 2010 He confirmed to Councilor Tierney that the contractor was paid on an hourly basis, not to exceed the contract amount. Councilor Jordan moved to approve award of a personal service contract in the amount not - to - exceed $399,844 to Universal Field Services, Inc., to provide right - of - way acquisition services related to the expansion of the City of Lake Oswego's water supply system. Councilor Tierney seconded the motion. A voice vote was taken, and the motion passed with Mayor Hoffman, Councilors Hennagin, Olson, Moncrieff, Tierney, Jordan, and Vizzini voting `aye.' [7-0] 8.2 Resolution 10-58, declaring the public necessity to acquire real property for the Lake Oswego -Tigard Water Partnership Project and authorizing related activities Mr. Powell explained that this resolution authorized the City Manager or his designee to enter into negotiations for real property acquisitions or interest in real property for the LO/Tigard water project. He mentioned that it also authorized going on to the property for purposes of conducting investigations and analyses for acquisition purposes. He commented that staff went through a careful process to select Universal as the contractor in order to hire a company with a demonstrated ability to get to `yes' with the property owners and to achieve a fair price for pipeline easements. Universal became the City Manager's designee authorized by the resolution to conduct these negotiations. He explained that the other reason for this resolution was that the City needed to have in its toolbox the ability to exercise its eminent domain, or condemnation authority, before it became necessary. He said that, under Oregon law, the City must first adopt a resolution of necessity stating that acquiring this property was necessary and in the public interest before it could exercise its eminent domain authority in the event that the City and the property owner could not agree on a fair price. He indicated to Councilor Tierney that State statute allowed cities to exercise eminent domain outside their boundaries for certain types of uses, including water. He indicated to Councilor Olson that the City adopted a similar resolution of necessity for the LOIS project. He acknowledged that the City did so for specific properties needed for the LOIS project, and not in this general fashion. He explained that the LOIS project negotiated its linear-type acquisitions with the Lake Corporation before the project was well underway. He observed that most of the pipeline ran through existing right-of-way or City utility holdings. He pointed out that it has been some time since the City did such a lengthy linear project across multiple jurisdictions. Therefore, staff decided internally, with the advice of outside counsel, that it would be a good idea to get this resolution of necessity out of the way before doing its initial explorations of right-of-way acquisitions. He clarified to Councilor Olson that this resolution did not authorize contractors to go on to people's properties. He said that it authorized the analysis on properties, but it still took property owner permission for the City to come on to the property. He indicated that if a property owner refused access to the property, then the City would have to get an easement through condemnation. Mayor Hoffman explained that a Clackamas County Circuit Court judge would have the role of gatekeeper. Only through permission of the court system (a court order) could governments go on to private property. Mr. Powell concurred, but emphasized that part of the reason for hiring Universal was the hope that the City would not have to do that, and that this resolution would be merely academic. Councilor Jordan asked if the City was looking at any larger property acquisitions outside the swath of the pipe alignment. Mr. Prock indicated that there was a strong likelihood of needing to purchase additional property in the City of Tigard for the new pump station, as the current pump station was shoehorned into an area that did not allow expansion. He confirmed to Councilor City Council Regular Meeting Minutes Page 9 of 10 November 2, 2010 Hennagin that they would acquire the property for the pump station in the name of the joint venture. Mayor Hoffman pointed out that the City might also have to acquire wider easements than the easement it already had for the pipe alignment. Councilor Jordan moved to adopt Resolution 10-58. Councilor Hennagin seconded the motion. A voice vote was taken, and the motion passed with Mayor Hoffman, Councilors Hennagin, Olson, Moncrieff, Tierney, Jordan, and Vizzini voting `aye.' [7-0] 9. INFORMATION FROM THE COUNCIL 9.1 Councilor Information 9.2 Reports of Council Committees, Organizational Committees, and Intergovernmental Committees 10. REPORTS OF OFFICERS 10.1 City Manager 10.1.1 Review of Council Schedule 10.1.2 Review of Council Digest 10.2 City Attorney 11. ADJOURNMENT Mayor Hoffman adjourned the meeting at 6:59 p.m. Respectfully submitted, n Robyn Christie City Recorder APPROVED BY THE CITY COUNCIL: O March 17 2011 i Ja . Hoffman, 104& r City Council Regular Meeting Minutes Page 10 of 10 November 2, 2010