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HomeMy WebLinkAboutAgenda Packet - 2010-11-16 PMLAKEosWEGO AGENDA CITY OF LAKE OSWEGO Centennial 1910-2010 CITY COUNCIL REGULAR MEETING 380AAvenue PO Box 369 hftm Tuesday, November 16, 2010 Lake Oswego, OR 97034 6:30 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. Pape # 1. CALL TO ORDER 2. ROLL CALL 3. PRESENTATIONS (10 minutes) 3.1 Photo Contest Winners 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 RESOLUTIONS 4.1.1 Resolution 10-67, authorizing a Local Agency Agreement with ODOT for the Pilkington Pathway Safe Routes to School Project Action: Adopt Resolution 10-67 4.1.2 Resolution 10-68, making appointments to the Budget Committee Action: Adopt Resolution 10-68, appointing Joseph A. Vricelli and Christian Ramey to the Budget Committee for terms ending August 31, 2013; and appointing Ron Smith for the remainder of a term ending August 31, 2011 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 MINUTES 4.2.1 July 13, 2010, special meeting 4.2.2 September 7, 2010, regular 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. 7. ORDINANCES (30 minutes) 7.1 Ordinance 2564, an ordinance of the City of Lake Oswego granting a non-exclusive telecommunications services franchise to Electric Lightwave, LLC Motion: Move to enact Ordinance 2564 8. STUDY SESSION (1 hour) 8.1 Natural Area Restoration and Maintenance 8.2 Natural Resource Education and Outreach Proposals 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. 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 Page 3 10.1.1 Review of Council Schedule 10.1.2 Review of Council Digest 10.2 City Attorney 11. EXECUTIVE SESSION, pursuant to ORS 192.660 (2) (e) to conduct deliberations with persons designated to negotiate real property transactions 12 RETURN TO OPEN SESSION 13. 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 LAKE OSWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: Erica Rooney, P.E., Assistant City Engineer `Jo—e Engineering Division of the Public Works Department y I.I CITY OF LAKE OSWEGO 380 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us SUBJECT: Adopting a Resolution to Enter into an Agreement with ODOT and Clackamas County for the Safe Routes to School Program for the installation of the Pilkington Pathway Project: Jean Road to Dawn Street. DATE: November 9, 2010 ACTION Adopt Resolution 10-67, a resolution of the Lake Oswego City Council authorizing the Mayor to sign an Agreement with the State Of Oregon and Clackamas County for a Safe Routes to School program infrastructure project – Pilkington Pathway: Jean Road to Dawn Street. INTRODUCTION/BACKGROUND In May of 2008 Council adopted Resolution 08-43 supporting the Rosewood Neighborhood Association's application for a Safe Routes to School (SRTS) Agreement from the Oregon Department of Transportation (ODOT) for pathway improvement on Pilkington Road. Alta Planning was commissioned to conduct a feasibility study in 2008%2009. This determined the details of what the project would look like. The City spent $29,670 on this effort. The results were used to complete the formal application to ODOT. In June of 2009 the City and Clackamas County co-sponsored an Engineering Application for the same project. In April 2010 the City received notice from ODOT that the Safe Routes to School program had been approved for Federal funding. The SRTS funds requested and approved were up to $495,000. The FY10/11 Approved Budget and the FY 10/11 CIP both identify $35,000 in local funds to match the efforts for the Safe Routes to School project on Pilkington to ensure staff time is covered prior to the allocation of funds from ODOT. At this time, staff does not anticipate the overall costs will be in excess of the anticipated $495,000 that was approved by ODOT and the Federal Highway Administration. Page 2 DISCUSSION The attached Local Agency Agreement between ODOT, Clackamas County, and the City of Lake Oswego is an agreement between ODOT and local agencies to delineate responsibilities and reimbursement of funds, if applicable. Once signed, ODOT will issue a Notice to Proceed for the engineering design to begin. The City is responsible for awarding and managing the preliminary and final engineering contract to develop construction plans and specifications. We have chosen to utilize ODOT On -Call Preliminary Engineering, Design and Construction Engineering System to select and award a consultant contract. ODOT, as the federal funding recipient, will solicit and award the construction contract. The City will be responsible for any funds in excess of the total project amount and for any non -participating costs. The City project manager is responsible for preliminary engineering and construction management oversight to manage the overall costs of the project. The City is eligible to be reimbursed for staff management costs. ODOT through the On -Call Preliminary Engineering, Design and Construction Engineering System, is negotiating a contract with David Evans and Associates to perform the engineering and design of the project. They are prepared to begin design work once the notice to proceed is issued, and should complete designs and contract documents by June 2011. Construction is anticipated to begin in the Fall of 2011. Per the Agreement, the City will be responsible to maintain the pathway improvements for a 20 -year period after construction is completed. The City and ODOT are responsible for complying with the Agreement requirements, including the financial reporting requirement. ALTERNATIVES & FISCAL IMPACT Not sign the agreement. This would result in the project being terminated with ODOT, and funds returned to the Safe Routes to School Program. There currently are no other local funds available to do this project with City resources. Sign the agreement. The City will receive engineering and construction services for the installation of the much needed and anticipated Pilkington Pathway Project. This will contribute to improved safety for school children to access the River Grove Elementary School and Waluga Junior High School. At this time, the City's financial impact is anticipated to be approximately $35,000 to cover staff costs prior to entering into the Local Agency Agreement. This has been budgeted for in FY 10/11. RECOMMENDATION It is recommended that City Council approve Resolution 10-67 authorizing the Mayor to sign the Local Agency Agreement with ODOT and Clackamas County, providing for City participation in the engineering and construction for the Safe Routes to School Project on Pilkington Road. Page 3 ATTACHMENTS 1. Local Agency Agreement — Misc. Contracts and Agreements, No. 26728, Key No. 17148 Reviewed by: i Department Director (if there is a financial impact) ance DiV�—� ''�'if legal issues ( g ) City Attorn Alex D. MCW City Manager RESOLUTION 10-67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE MAYOR TO SIGN AN AGREEMENT WITH THE STATE OF OREGON AND CLACKAMAS COUNTY FOR A SAFE ROUTES TO SCHOOL PROGRAM INFRASTRUCTURE PROJECT — PILKINGTON PATHWAY: JEAN ROAD TO DAWN STREET. WHEREAS, the City of Lake Oswego desires to improve safe pedestrian access to schools; and WHEREAS, the Oregon Department of Transportation (ODOT) administers the Safe Routes to School funding program; and WHEREAS, the Rosewood Neighborhood Association showed initiative by applying for the Safe Routes to School program to address a need for pedestrian improvements on Pilkington Avenue; and WHEREAS, the City of Lake Oswego has consistently supported the Association's efforts, including the City Council's adoption of Resolution No. 08-43 in support of the project, and the City commissioned an preliminary analysis to determine a potential design; and WHEREAS, the City of Lake Oswego and Clackamas County co-sponsored the formal application to ODOT to receive Safe Routes to School funding for the proposed improvements; and WHEREAS, the Federal Government has awarded up to $495,000 for the Safe Routes to School project to be used for pedestrian improvements on Pilkington Avenue; and WHEREAS, under the terms of the agreement, ODOT is a grant recipient of the Safe Routes to Schools funding and the City is a subrecipient of the funding, and the expected costs for the entire project is anticipated to be not more than $495,000; and WHEREAS, the City of Lake Oswego is responsible for developing plans and specifications for the construction of the Pilkington Pathway, and will utilize ODOT's On -Call Preliminary Engineering, Design and Construction Engineering Services system; and WHEREAS, as required under the Federal terms of the agreement the State will prepare contract and bidding documents, advertise for bid proposals and award the construction contracts, and will be reimbursed for the construction costs under the agreement; and WHEREAS, the City of Lake Oswego agrees to maintain the improvements for the 20 year period stipulated by the Agreement; and WHEREAS, in order to receive Safe Routes to School project support from ODOT, it is necessary for the City of Lake Oswego to enter into a Local Agency Agreement with ODOT and Clackamas County; Resolution 10-67 Page 1 of 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The Mayor is authorized to sign a Local Agency Agreement with the Oregon Department of Transportation and Clackamas County, in the form attached as Exhibit A, for a Safe Routes to School program infrastructure project — Pilkington Pathway: Jean Road to Dawn Street. Section 2. 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 16th day of November, 2010. AYES: NOES: EXCUSED: ABSTAIN: Jack D. Hoffman, Mayor ATTEST: Robyn Christie, City Recorder APP VED AS TO FO R David D. Powell, City Attorney Resolution 10-67 Page 2 of 2 Misc. Contracts and Agreements No. 26728 LOCAL AGENCY AGREEMENT SAFE ROUTES TO SCHOOL PROGRAM INFRASTRUCTURE PROJECT Pilkington Pathway: Jean Road to Dawn Street City of Lake Oswego Clackamas County THIS AGREEMENT is made and entered into by and between the STATE OF OREGON, acting by and through its Department of Transportation, hereinafter referred to as "State"; and the CITY OF LAKE OSWEGO, acting by and through its elected officials, hereinafter referred to as "Agency"; and CLACKAMAS COUNTY, acting by and through its elected officials, hereinafter referred to as "County"; herein referred to individually or collectively as "Party" or "Parties." RECITALS By the authority granted in Oregon Revised Statute (ORS) 190.110, 366.572 and 366.576, State may enter into cooperative agreements with counties, cities and units of local governments for the performance of work on certain types of improvement projects with the allocation of costs on terms and conditions mutually agreeable to the contracting parties. 2. The Safe Routes to Schools (SRTS) Program is a federal -aid program of the Federal Highway Administration (FHWA) through funding from the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users Act (SAFETEA-LU). State's SRTS program is administered by ODOT's Transportation Safety Division. The "Infrastructure" portion of the program is managed by the Highway Division, Local Government Section. 3. Under Oregon Administrative Rule (OAR) 737-025-0030 and 737-025-0040, State may award SRTS Fund grants to school districts, qualifying schools, units of state and local government, or private, non-profit organizations in partnership with any of the above to perform education, engineering or enforcement projects or activities that directly benefit a qualifying school. 4. The Lake Oswego School District schools to benefit under this Agreement are River Grove Elementary and Waluga Junior High School. 5. Portions of Pilkington Road are under the Agency's jurisdiction and other portions are under the County's jurisdiction (see Exhibit A). Key No. 17148 Agency/County/State Agreement No. 26728 6. Portions of McEwen Road are under the Agency's jurisdiction and other portions are under the County's jurisdiction (see Exhibit A). 7. Jean Road is a part of the city street system under the jurisdiction and control of Agency. 8. Dawn Street is a part of the county road system under the jurisdiction and control of County. NOW THEREFORE, the premises being in general as stated in the foregoing Recitals, it is agreed by and between the Parties hereto as follows: TERMS OF AGREEMENT 1. Under such authority, the Parties agree to construct a paved walkway along one side of Pilkington Road between Jean Road and the school crossing at Dawn Street with an extension along McEwan Road to River Grove Elementary School, hereinafter referred to as "Project". Agency applied for this Project in June 2009 and was approved funds from the SRTS Program on April 8, 2010. The application for the Project is incorporated by reference. The location of the Project is approximately as shown on the sketch map attached hereto, marked "Exhibit A," and by this reference made a part hereof. 2. The Project shall be conducted as a part of the SRTS Grant Program under Title 23, United States Code. The total Project cost is estimated at $495,000, which is subject to change. The SRTS Funds are estimated at $495,000 with Agency providing any funds in excess of the available SRTS funds, match amounts and any non- participating costs. A cost estimate is shown on Exhibit B, attached hereto and by this reference made a part hereof. 3. Agency must obtain approval from State's SRTS Program Manager for any additional SRTS Funds beyond the amount in Paragraph No. 2 above. State's SRTS Program Manager may approve additional SRTS funds up to a total of $500,000. For additional SRTS funds above $500,000 State's SRTS Program Manager must consult with State's "Safe Route's Advisory Committee" and an amendment to this Agreement must be executed reflecting any approved increase in funds. 4. The SRTS funding for the Project is contingent upon approval by the FHWA. Any work performed prior to acceptance by FHWA will be considered nonparticipating and paid for at Agency expense. 5. State considers Agency a subrecipient of the federal funds it receives as 2 Agency/County/State Agreement No. 26728 reimbursement under this Agreement. The Catalog of Federal Domestic. Assistance (CFDA) number and title for this Project is 20.205, Highway Planning and Construction. 6. The term of this Agreement shall begin on the date all required signatures are obtained and shall terminate upon completion of the Project and final payment or ten (10) calendar years following the date all required signatures are obtained, whichever is sooner. 7. This Agreement shall also terminate if the funds for this Project are not obligated for construction on or before September 30, 2012 which is twelve (12) months after the target obligation date assigned by State. 8. This Agreement may be terminated by mutual written consent of both Parties. 9. State may terminate this Agreement effective upon delivery of written notice to Agency, or at such later date as may be established by State, under any of the following conditions: a. If Agency fails to provide services called for by this Agreement within the time specified herein or any extension thereof. b. If Agency fails to perform any of the other provisions of this Agreement, or so fails to pursue the work as to endanger performance of this Agreement in accordance with its terms, and after receipt of written notice from State fails to correct such failures within ten (10) days or such longer period as State may authorize. c. If Agency fails to provide payment of its share of the cost of the Project. d. If State fails to receive funding, appropriations, limitations or other expenditure authority sufficient to allow State, in the exercise of its reasonable administrative discretion, to continue to make payments for performance of this Agreement. e. If federal or state laws, regulations or guidelines are modified or interpreted in such a way that either the work under this Agreement is prohibited or if State is prohibited from paying for such work from the planned funding source. 9 Agency/County/State Agreement No. 26728 10. Upon termination of this Agreement, State may reassign any SRTS funds not yet obligated for the Project and shall have no obligation to fund any remaining phases of work through the SRTS program. 11. Any termination of this Agreement shall not prejudice any rights or obligations accrued to the Parties prior to termination. 12. The Special and Standard Provisions attached hereto, marked Attachments 1 and 2, respectively, are by this reference made a part hereof. The Standard Provisions apply to all federal -aid projects and may be modified only by the Special Provisions. The Parties hereto mutually agree to the terms and conditions set forth in Attachments 1 and 2. In the event of a conflict, this Agreement shall control over the attachments, and Attachment 1 shall control over Attachment 2. 13.Agency, as a recipient of federal funds, pursuant to this Agreement with the State, shall assume sole liability for Agency's breach of any federal statutes, rules, program requirements and grant provisions applicable to the federal funds, and shall, upon Agency's breach of any such conditions that requires the State to return funds to the Federal Highway Administration, hold harmless and indemnify the State for an amount equal to the funds received under this Agreement; or if legal limitations apply to the indemnification ability of Agency, the indemnification amount shall be the maximum amount of funds available for expenditure, including any available contingency funds or other available non -appropriated funds, up to the amount received under this Agreement. 14. Agency certifies and represents that the individual(s) signing this Agreement has been authorized to enter into and execute this Agreement on behalf of Agency, under the direction or approval of its governing body, commission, board, officers, members or representatives, and to legally bind Agency. 15. Agency agrees to comply with the conditions imposed by ORS 184.740 and 184.741, and administrative rules under OAR Chapter 737, Division 25. 16. State and Agency hereto agree that if any term or provision of this Agreement is declared by a court of competent jurisdiction to be invalid, unenforceable, illegal or in conflict with any law, the validity of the remaining terms and provisions shall not be affected, and the rights and obligations of the Parties shall be construed and enforced as if the Agreement did not contain the particular term or provision held to be invalid. Ell Agency/County/State Agreement No. 26728 17. This Agreement may be executed in several counterparts (facsimile or otherwise) all of which when taken together shall constitute one agreement binding on all Parties, notwithstanding that all Parties are not signatories to the same counterpart. Each copy of this Agreement so executed shall constitute an original. 18. This Agreement and attached exhibits constitute the entire agreement between the Parties on the subject matter hereof. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement. No waiver, consent, modification or change of terms of this Agreement shall bind either party unless in writing and signed by both Parties and all necessary approvals have been obtained. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. The failure of State to enforce any provision of this Agreement shall not constitute a waiver by State of that or any other provision. 19. State's Project Liaison for the Agreement is Tom Weatherford, Region 1 Local Agency Liasion, 123 NW Flanders, Portland, OR 97209, (503) 731-8238, thomas.l.weatherfordeodot.state. or. us, or assigned designee upon individual's absence. State shall notify Agency's Project Liaison in writing of any contact information changes during the term of this Agreement. 20. Agency's Project Liaison for this Agreement is Matthew Tipton, PE, Associate Engineer, City of Lake Oswego, PO Box 369, Lake Oswego, OR 97034, (503) 534- 5680, mtipton fci.oswego.or.us, or assigned designee upon individual's absence. Agency shall notify State's Project Liaison in writing of any contact information changes during the term of this Agreement. 21. County's Project Liaison for this Agreement is Joe Marek, Traffic Engineering - Supervisor, 150 Beavercreek Road, Oregon City, OR 97045, (503) 742-4705, joeme.co.clackamas.or.us, or assigned designee upon individual's absence. County shall notify State's Project Liaison in writing of any contact information changes during the term of this Agreement. THE PARTIES, by execution of this Agreement, hereby acknowledge that its signing representatives have read this Agreement, understand it, and agree to be bound by its terms and conditions. This Project is in the 2008-2011 Statewide Transportation Improvement Program, (Key # 17148) that was approved by the Oregon Transportation Commission on November 14, 2007(or subsequently approved by amendment to the STIP). 5 Agency/County/State Agreement No. 26728 The Oregon Transportation Commission on December 29, -J08, approved Delegation Order No. 2, which authorizes the Director to approve and execute agreements for day- to-day operations. Day-to-day operations include those activities required to implement the biennial budget approved by the Legislature, including activities to execute a project in the Statewide Transportation improvement Program. On August 2, 2005, the Director approved Subdelegation Order No. 13 in which the Oregon Transportation Commission approved intergovernmental agreements, grants and personal services contracts for payments to state agencies, contractors, local governments and other non-profit units for disbursement of state and federal funds on safety programs. The Division Administrator will maintain a listing of all agreements and grants and submit an annual report to the National Highway Traffic Safety Administration (NHTSA) and the Oregon Transportation Commission. Signature page to follow Agency/County/State Agreement No. 26728 CITY OF LAKE OSWEGO, by and through its :;lected officials By Mayor Date By City Recorder Date APPROVED AS TO LEGAL SUFFICIENCY By Deputy City Attorney Date CLACKAMAS COUNTY, by and through its elected officials By Chair Date By Recording Secretary Date APPROVED AS TO LEGAL SUFFICIENCY By County Counsel Date 7 STATE OF OREGON, by and through its Department of Transportation By Division Administrator, Transportation Safety Division Date APPROVAL RECOMMENDED By Safe Routes to School Coordinator, Local Government Section Date By Region 1 Manager Date APPROVED AS TO LEGAL SUFFICIENCY By Assistant Attorney General Date Agency Contact: Matthew Tipton, PE, Associate Engineer PO Box 369 Lake Oswego, OR 97034 (503)534-5680 mtioton(a).ci. osweoo. or. us County Contact: Joe Marek, Traffic Engineering Supervisor 150 Beavercreek Road Oregon City, OR 97045 (503) 742-4705 o�fcDco.clackamas.or.us State Contact: Tom Weatherford, Region 1 Local Agency Liasion Flanders Building 123 NW Flanders Street Portland, OR 97209 (503)731-8238 thomas.I.weatherford5odot.state. or. us DEFECTS IN ORIGINAL DOCUMENT Agency/County/State Agreement No. 26728 EXHIBIT A — Project Location Map Cit7 8 Agency/blue shaded areas County/non-shaded areas Agency/County/State EXHIBIT B Agreement No. 26728 PROJECT COST ESTIMATE. Safe Routes to School — Pilkington Pathway: Jean Road to Dawn Street (Lake Oswego) Preliminary Engineering $ 55,000 Utility Reimbursement $ 5,000 Construction $ 435.000 Total $ 495,000 AWARD AMOUNT = $495,000 M Agency/County/State Agreement No. 26728 ATTACHMENT NO. 1 to Agreement No. 26728 SPECIAL PROVISIONS 1. Agency, or its consultant, shall conduct the necessary preliminary engineering and design work required to produce final plans, specifications and cost estimates; purchase all necessary right of way; obtain all required permits; arrange for all utility relocations or reconstruction; perform all construction engineering, including all required materials testing and quality documentation; and prepare necessary documentation to allow State to make all contractor payments. 2. Agency guarantees the availability of Agency funding in an amount required to fully fund Agency's share of the Project. Prior to award of the contract, Agency shall provide State its share of the Project cost upon receipt of request from State. The Project cost is defined as the Engineer's estimate plus 10 percent. 3. State may make available Region 1's On -Call Preliminary Engineering (PE), Design and Construction Engineering Services consultant for Local Agency Projects upon written request. If Agency chooses to use said services, Agency agrees to manage the work done by the Consultant and reimburse State for payment of any Consultant costs that are not eligible as federal participating costs or that are not included as part of the total cost of the Project. 4. Agency shall, at its own expense, maintain and operate the Project upon completion and throughout the useful life of the Project at a minimum level that is consistent with normal depreciation and/or service demand. State and Agency agree that the useful life of this Project is defined as twenty (20) calendar years. State may conduct periodic inspections during the life of the Project to verify that Project is properly maintained and continues to serve the purpose for which federal funds were provided. Maintenance and power responsibilities shall survive any termination of this Agreement. 5. Parties grant State the right to enter onto Agency and County right of way for the performance of duties as set forth in this Agreement. 6. If Agency fails to meet the requirements of this Agreement or the underlying federal regulations, State may withhold the Agency's proportional share of Highway Fund distribution necessary to reimburse State for costs incurred by such Agency breach. Agency will be ineligible to receive or apply for any Title 23, United States Code funds until State receives full reimbursement of the costs incurred. 10 Agency/County/State Agreement No. 26728 ATTACHMENT NC. 2 FEDERAL STANDARD PROVISIONS JOINT OBLIGATIONS PROJECT ADMINISTRATION State (ODOT) is acting to fulfill its responsibility to the Federal Highway Administration (FHWA) by the administration of this Project, and Agency (i.e. county, city, unit of local government, or other state agency) hereby agrees that State shall have full authority to carry out this administration. If requested by Agency or if deemed necessary by State in order to meet its obligations to FHWA, State will further act for Agency in other matters pertaining to the Project. Agency shall, if necessary, appoint and direct the activities of a Citizen's Advisory Committee and/or Technical Advisory Committee, conduct a hearing and recommend the preferred alternative. State and Agency shall each assign a liaison person to coordinate activities and assure that the interests of both parties are considered during all phases of the Project. 2. Any project that uses federal funds in project development is subject to plans, specifications and estimates (PS&E) review and approval by FHWA or State acting on behalf of FHWA prior to advertisement for bid proposals, regardless of the source of funding for construction. PRELIMINARY & CONSTRUCTION ENGINEERING 3. State, Agency, or others may perform preliminary and construction engineering. If Agency or others perform the engineering, State will monitor the work for conformance with FHWA rules and regulations. In the event that Agency elects to engage the services of a personal services consultant to perform any work covered by this Agreement, Agency and Consultant shall enter into a State reviewed and approved personal services contract process and resulting contract document. State must concur in the contract prior to beginning any work. State's personal services contracting process and resulting contract document will follow Title 23 Code of Federal Regulations (CFR) 172, Title 49 CFR 18, ORS 279A.055, the current State Administrative Rules and State Personal Services Contracting Procedures as approved by the FHWA. Such personal services contract(s) shall contain a description of the work to be performed, a project schedule, and the method of payment. Subcontracts shall contain all required provisions of Agency as outlined in the Agreement. No reimbursement shall be made using federal -aid funds for any costs incurred by Agency or its consultant prior to receiving authorization from State to proceed. Any amendments to such contract(s) also require State's approval. 4. On all construction projects where State is the signatory party to the contract, and where Agency is doing the construction engineering and project management, Agency, subject to any limitations imposed by state law and the Oregon Constitution, agrees to accept all responsibility, defend lawsuits, indemnify and hold State harmless, for all tort claims, contract STDPRO-2010.doc Rev. 02-05-2010 11 Agency/County/State Agreement No. 26728 claims, or any other lawsuit arising out of the contractor's work or Agency's supervision of the project. REQUIRED S' ATEMENT FOR UNITED STATES DEPARTMENT OF TRANSPORTATION (USDOT) FINANCIAL ASSISTANCE AGREEMENT If as a condition of assistance, Agency has submitted and the United States Department of Transportation (USDOT) has approved a Disadvantaged Business Enterprise Affirmative Action Program which Agency agrees to carry out, this affirmative action program is incorporated into the financial assistance agreement by reference. That program shall be treated as a legal obligation and failure to carry out its terms shall be treated as a violation of the financial assistance agreement. Upon notification from USDOT to Agency of its failure to carry out the approved program, USDOT shall impose such sanctions as noted in Title 49. CFR, Part 26, which sanctions may include termination of the agreement or other measures that may affect the ability of Agency to obtain future USDOT financial assistance. 6. Disadvantaged Business Enterprises (DBE) Obligations. State and its contractor agree to ensure that DBE as defined in Title 49, CFR. Part 26, have the opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with federal funds. In this regard, Agency shall take all necessary and reasonable steps in accordance with Title 49, CFR, Part 26, to ensure that DBE have the opportunity to compete for and perform contracts. Neither State nor Agency and its contractors shall discriminate on the basis of race, color, national origin or sex in the award and performance of federally -assisted contracts. Agency shall carry out applicable requirements of Title 49, CFR, Part 26, in the award and administration of such contracts. Failure by Agency to carry out these requirements is a material breach of this Agreement, which may result in the termination of this contract or such other remedy as State deems appropriate. 7. The DBE Policy Statement and Obligations shall be included in all subcontracts entered into under this Agreement. 8. Agency agrees to comply with all applicable civil rights laws, rules and regulations, including Title V and Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990 (ADA), and Titles VI and VII of the Civil Rights Act of 1964. The parties hereto agree and understand that they will comply with all applicable federal, state, and local laws, regulations, executive orders and ordinances applicable to the work including, but not limited to, the provisions of ORS 279C.505, 279C.515. 279C.520. 279C.530 and 279B.270. incorporated herein by reference and made a part hereof: Title 23 CFR Parts 1.11. 140 710. and 771 • Title 49 CFR Parts 18. 24 and 26: 2 CFR 225. and OMB CIRCULAR NO A-133 Title 23 USC Federal -Aid Highway Act: Title 41, Chapter 1, USC 51- 58 Anti -Kickback Act: Title 42 USC: Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 as amended and provisions of Federal -Aid Policy Guide FAPG . STDPRO-2010.doc Rev. 02-05-2010 12 Agency/County/State Agreement No. 26728 STATE OBLIGATIONS PROJECT FUNDING REQUEST 10. State shall submit a Project funding request to FHWA with a request for approval of federal - aid participation in all engineering, right-of-way acquisition, eligible utility relocations and/or construction work for the Project. No work shall proceed on any activity in which federal -aid participation is desired until such approval has been obtained. The program shall include services to be provided by State, Agency, or others. State shall notify Agency in writing when authorization to proceed has been received from FHWA. Major responsibility for the various phases of the Project will be as outlined in the Special Provisions. All work and records of such work shall be in conformance with FHWA rules and regulations. FINANCE 11. State shall, in the first instance, pay all reimbursable costs of the Project, submit all claims for federal -aid participation to FHWA in the normal manner and compile accurate cost accounting records. Agency may request a statement of costs to date at any time by submitting a written request. When the actual total cost of the Project has been computed, State shall furnish Agency with an itemized statement of final costs. Agency shall pay an amount which, when added to said advance deposit and federal reimbursement payment, will equal 100 percent of the final total actual cost. Any portion of deposits made in excess of the final total costs of Project, minus federal reimbursement, shall be released to Agency. The actual cost of services provided by State will be charged to the Project expenditure account(s) and will be included in the total cost of the Project. 12. If federal funds are used, State will specify the Catalog of Federal Domestic Assistance (CFDA) number in the Agreement. State will also determine and clearly state in the Agreement if recipient is a subrecipient or vendor, using criteria in Circular A-133. PROJECT ACTIVITIES 13. State shall, if the preliminary engineering work is performed by Agency or others, review and process or approve all environmental statements, preliminary and final plans, specifications and cost estimates. State shall, if they prepare these documents, offer Agency the opportunity to review and approve the documents prior to advertising for bids. 14. The party responsible for performing preliminary engineering for the Project shall, as part of its preliminary engineering costs, obtain all Project related permits necessary for the construction of said Project. Said permits shall include, but are not limited to, access, utility, environmental, construction, and approach permits. All pre -construction permits will be obtained prior to advertisement for construction. 15. State shall prepare contract and bidding documents, advertise for bid proposals, and award all contracts. S i DPRO-2010.doc Rev. 02-05-2010 13 Agency/County/State Agreement No. 26728 16. Upon State's award of a construction contract, State shall perform independent assurance testing in accordance with State -! d FHWA Standards, process and pay all contractor progress estimates, check final quar"ities and costs, and oversee and provide intermittent inspection services during the construction phase of the Project. 17. State shall, as a Project expense, assign a liaison person to provide Project monitoring as needed throughout all phases of Project activities (preliminary engineering, right-of-way acquisition, and construction). The liaison shall process reimbursement for federal participation costs. RIGHT OF WAY 18. State is responsible for proper acquisition of the necessary right of way and easements for construction and maintenance of the Project. Agency may perform acquisition of the necessary right of way and easements for construction and maintenance of the Project, provided Agency (or Agency's consultant) are qualified to do such work as required by the State's Right of Way Manual and have obtained prior approval from State's Region Right of Way office to do such work. 19. Regardless of who acquires or performs any of the right of way activities, a right of way services agreement shall be created by State's Region Right of Way office setting forth the responsibilities and activities to be accomplished by each party. State shall always be responsible for requesting project funding, coordinating certification of the right of way, and providing oversight and monitoring. Funding authorization requests for federal right of way funds must be sent through the State's Region Right of Way offices on all projects. All projects must have right of way certification coordinated through State's Region Right of Way offices (even for projects where no federal funds were used for right of way, but federal funds were used elsewhere on the Project). Agency should contact the State's Region Right of Way office for additional information or clarification. 20. State shall review all right of way activities engaged in by Agency to assure compliance with applicable laws and regulations. Agency agrees that right of way activities shall be in accord with the Uniform Relocation Assistance & Real Property Acquisition _Policies Act of 1970, as amended, ORS Chapter 35, FHWA Federal -Aid Policy Guide, State's Right of Way Manual and the Code of Federal Regulations, Title 23, Part 710 and Title 49, Part 24. 21. If any real property purchased with federal -aid participation is no longer needed for the originally authorized purpose, the disposition of such property shall be subject to applicable rules and regulations, which are in effect at the time of disposition. Reimbursement to State and FHWA of the required proportionate shares of the fair market value may be required. 22. Agency insures that all Project right of way monumentation will be conducted in conformance with ORS 209.155. 23. State and Agency grants each other authority to enter onto the other's right of way for the performance of the Project. STDPRO-2010.doc Rev. 02-05-2010 14 Agency/County/State Agreement No. 26728 AGENCY OBLIGATIONS FINANCE 24. Federal funds shall be applied toward Project costs at the current federal -aid matching ratio, unless otherwise agreed and allowable by law. Agency shall be responsible for the entire match amount, unless otherwise agreed to and specified in the intergovernmental agreement. 25. Agency's estimated share and advance deposit. a) Agency shall, prior to commencement of the preliminary engineering and/or right of way acquisition phases, deposit with State its estimated share of each phase. Exception may be made in the case of projects where Agency has written approval from State to use in-kind contributions rather than cash to satisfy all or part of the matching funds requirement. b) Agency's construction phase deposit shall be 110 percent of Agency's share of the engineer's estimate and shall be received prior to award of the construction contract. Any additional balance of the deposit, based on the actual bid must be received within forty-five (45) days of receipt of written notification by State of the final amount due, unless the contract is canceled. Any unnecessary balance of a cash deposit, based on the actual bid, will be refunded within forty-five (45) days of receipt by State of the Project sponsor's written request. c) Pursuant to ORS 366.425, the advance deposit may be in the form of 1) money deposited in the State Treasury (an option where a deposit is made in the Local Government Investment Pool, and an Irrevocable Limited Power of Attorney is sent to the Highway Finance Office), or 2) an Irrevocable Letter of Credit issued by a local bank in the name of State, or 3) cash. d) Agency may satisfy all or part of any matching funds requirements by use of in- kind contributions rather than cash when prior written approval has been given by State. 26. If the estimated cost exceeds the total matched federal funds available, Agency shall deposit its share of the required matching funds, plus 100 percent of all costs in excess of the total matched federal funds. Agency shall also pay 100 percent of the cost of any item in which FHWA will not participate. If Agency has not repaid any non -participating cost, future allocations of federal funds, or allocations of State Highway Trust Funds, to that Agency may be withheld to pay the non -participating costs. If State approves processes, procedures, or contract administration outside the Local Agency Guidelines that result in items being declared non -participating, those items will not result in the withholding of Agency's future allocations of federal funds or the future allocations of State Highway Trust Funds. 27. Costs incurred by State and Agency for services performed in connection with any phase of the Project shall be charged to the Project, unless otherwise mutually agreed upon. STDPRO-2010.doc Rev. 02-05-2010 15 Agency/County/State Agreement No. 26728 28. If Agency makes a written request for the cancel'ation of a federal -aid project; Agency shall bear 100 percent of all costs as of the date of cat t::ellation. If State was the sole cause of the cancellation, State shall bear 100 percent of all ,;osts incurred. If it is determined that the cancellation was caused by third parties or ciruimstances beyond the control of State or Agency, Agency shall bear all development costs, whether incurred by State or Agency, either directly or through contract services, and State shall bear any State administrative costs incurred. After settlement of payments, State shall deliver surveys, maps, field notes, and all other data to Agency. 29. Agency shall follow requirements of the Single Audit Act. The requirements stated in the Single Audit Act must be followed by those local governments and non-profit organizations receiving $500,000 or more in federal funds. The Single Audit Act of 1984, PL 98-502 as amended by PL 104-156, described in "OMB CIRCULAR NO. A-133", requires local governments and non-profit organizations to obtain an audit that includes internal controls and compliance with federal laws and regulations of all federally -funded programs in which the local agency participates. The cost of this audit can be partially prorated to the federal program. 30. Agency shall make additional deposits, as needed, upon request from State. Requests for additional deposits shall be accompanied by an itemized statement of expenditures and an estimated cost to complete the Project. 31. Agency shall present invoices for 100 percent of actual costs incurred by Agency on behalf of the Project directly to State's Liaison Person for review and approval. Such invoices shall identify the Project and Agreement number, and shall itemize and explain all expenses for which reimbursement is claimed. Billings shall be presented for periods of not less than one- month duration, based on actual expenses to date. All billings received from Agency must be approved by State's Liaison Person prior to payment. Agency's actual costs eligible for federal -aid or State participation shall be those allowable under the provisions of Title 23 CFR Parts 1.111 140 and 710, Final billings shall be submitted to State for processing within three (3) months from the end of each funding phase as follows: 1) award date of a construction contract for preliminary engineering (PE) 2) last payment for right of way acquisition and 3) third notification for construction. Partial billing (progress payment) shall be submitted to State within three (3) months from date that costs are incurred. Final billings submitted after the three months shall not be eligible for reimbursement. 32. The cost records and accounts pertaining to work covered by this Agreement are to be kept available for inspection by representatives of State and FHWA for a period of six (6) years following the date of final voucher to FHWA. Copies of such records and accounts shall be made available upon request. For real property and equipment, the retention period starts from the date of disposition (Title 49 CFR 18.42). 33. State shall request reimbursement, and Agency agrees to reimburse State, for federal -aid funds distributed to Agency if any of the following events occur: a) Right of way acquisition or actual construction of the facility for which preliminary engineering is undertaken is not started by the close of the tenth STDPRO-2010.doc Rev. 02-05-2010 16 Agency/County/State Agreement No. 26728 fiscal year following the fiscal year in which the federal -aid funds were authorized; b) Right of way acquisition is undertaken utilizing federal -aid funds and actual construction is not started by the close of the twentieth fiscal year following the fiscal year in which the federal -aid funds were authorized for right of way acquisition. c) Construction proceeds after the Project is determined to be ineligible for federal -aid funding (e.g., no environmental approval, lacking permits, or other reasons). 34. Agency shall maintain all Project documentation in keeping with State and FHWA standards and specifications. This shall include, but is not limited to, daily work records, quantity documentation, material invoices and quality documentation, certificates of origin, process control records, test results, and inspection records to ensure that projects are completed in conformance with approved plans and specifications. RAILROADS 35. Agency shall follow State established policy and procedures when impacts occur on railroad property. The policy and procedures are available through State's appropriate Region contact or State's Railroad Liaison. Only those costs allowable under Title 23 CFR Part 646, subpart B and Title 23 CFR Part 140, subpart I, shall be included in the total Project costs; all other costs associated with railroad work will be at the sole expense of Agency, or others. Agency may request State, in writing, to provide railroad coordination and negotiations. However, State is under no obligation to agree to perform said duties. UTILITIES 36. Agency shall follow State established Statutes, Policies and Procedures when impacts occur to privately or publicly -owned utilities. Only those utility relocations, which are eligible for federal -aid participation under, the FAPG, Title 23 CFR 645A, Subpart A and B, shall be included in the total Project costs; all other utility relocations shall be at the sole expense of Agency, or others. State will arrange for utility relocations/adjustments in areas lying within jurisdiction of State, if State is performing the preliminary engineering. Agency may request State in writing to arrange for utility relocations/adjustments lying within Agency jurisdiction, acting on behalf of Agency. This request must be submitted no later than twenty-one (21) weeks prior to bid let date. However, State is under no obligation to agree to perform said duties. 37. The State utility relocation policy, procedures and forms are available through the appropriate State's Region Utility Specialist or State Utility Liaison. Agency shall provide copies of all signed utility notifications, agreements and Utility Certification to the State Utility Liaison. STDPRO-2010.doc Rev. 02-05-2010 17 Agency/County/State Agreement No. 26728 STANDARDS 38. Agency agrees that design standards for all projects on the National Highway System (NHS) and the Oregon State Highway System shall be in compliance to standards specified in the current "State Highway Design Manual" and related references. Construction plans shall be in conformance with standard practices of State for plans prepared by its own staff. All specifications for the Project shall be in substantial compliance with the most current "Oregon Standard Specifications for Highway Construction". 39. Agency agrees that minimum design standards for non -NHS projects shall be recommended AASHTO Standards and in accordance with the current "Oregon Bicycle and Pedestrian Plan", unless otherwise requested by Agency and approved by State. 40. Agency agrees and will verify that the installation of traffic control devices shall meet the warrants prescribed in the "Manual on Uniform Traffic Control Devices and Oregon Supplements". 41. All plans and specifications shall be developed in general conformance with the current "Contract Plans Development Guide" and the current "Oregon Standard Specifications for Highway Construction" and/or guidelines provided. 42. The standard unit of measurement for all aspects of the Project shall be English Units. All Project documents and products shall be in English. This includes, but is not limited to, right of way, environmental documents, plans and specifications, and utilities. GRADE CHANGE LIABILITY 43. Agency, if a County, acknowledges the effect and scope of ORS 105.755 and agrees that all acts necessary to complete construction of the Project which may alter or change the grade of existing county roads are being accomplished at the direct request of the County. 44. Agency, if a City, hereby accepts responsibility for all claims for damages from grade changes. Approval of pians by State shall not subject State to liability under ORS 105.760 for change of grade. 45. Agency, if a City, by execution of Agreement, gives its consent as required by ORS 373.030(2) to any and all changes of grade within the City limits, and gives its consent as required by ORS 373.050(1) to any and all closure of streets intersecting the highway, if any there be in connection with or arising out of the project covered by the Agreement. CONTRACTOR CLAIMS 46. Agency shall, to the extent permitted by state law, indemnify, hold harmless and provide legal defense for State against all claims brought by the contractor, or others resulting from Agency's failure to comply with the terms of this Agreement. STDPRO-2010.doc Rev. 02-05-2010 18 Agency/County/State Agreement No. 26728 47. Notwithstanding the foregoing defense obligations under Paragraph 46, neither iAgency nor any attorney engaged by Agency shall defend any claim in the name of the StaT;; of Oregon or any agency of the State of Oregon, nor purport to act as legal representative c; the State of Oregon or any of its agencies, without the prior written consent of the Oregon Attorney General. The State of Oregon may, at anytime at its election assume its own defense and settlement in the event that it determines that Agency is prohibited from defending the State of Oregon, or that Agency is not adequately defending the State of Oregon's interests, or that an important governmental principle is at issue or that it is in the best interests of the State of Oregon to do so. The State of Oregon reserves all rights to pursue any claims it may have against Agency if the State of Oregon elects to assume its own defense. MAINTENANCE RESPONSIBILITIES 48. Agency shall, upon completion of construction, thereafter maintain and operate the Project at its own cost and expense, and in a manner satisfactory to State and FHWA. WORKERS' COMPENSATION COVERAGE 49. All employers, including Agency that employ subject workers who work under this Agreement in the State of Oregon shall comply with ORS 656.017 and provide the required Workers' Compensation coverage unless such employers are exempt under ORS 656.126. Agency shall ensure that each of its contractors complies with these requirements. LOBBYING RESTRICTIONS 50. Agency certifies by signing the Agreement that: a) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. b) If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. c) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subgrants, and STDPRO-2010.doc Rev. 02-05-2010 W Agency/County/State Agreement No. 26728 contracts and subcontracts under grants, subgrants, loans, and cooperative agreements) which exceed $100,000, and that all such subrecipients shall certify and disclose accordingly. d) This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Title 31, USC Section 1352. e) Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Paragraphs 36, 37, and 48 are not applicable to any local agency on state highway projects. STDPRO-2010.doc Rev. 02-05-2010 20 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: Budget Committee Appointment DATE: November 9, 2010 ACTION Adopt Resolution 10-68, appointing members of the Budget Committee. CITY OF LAKE OSWEGO 3 80 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us INTRODUCTION/BACKGROUND The City Council Interview Committee, consisting of Councilors Moncrieff and Tierney, and Kent Studebaker, Budget Committee member, met on November 3, 2010, to interview candidates for the Budget Committee. It was the consensus of the Interview Committee to recommend that Joseph A. Vricelli and Christian Ramey be appointed to the Budget Committee for terms ending August 31, 2013; that Ron Smith be appointed to the Budget Committee for the remainder of a term ending August 31, 2011 to fill the upcoming vacancy that will be created by the election of Jeff Gudman to the City Council, and that David Berg be appointed as alternate to the Budget Committee should there be a vacancy through July 31, 2011. ATTACH M E NTS Resolution No. 10-68 Reviewed by: Alex D. McIntyre City Manager RESOLUTION 10-68 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO APPOINTING MEMBERS TO THE BUDGET COMMITTEE WHEREAS, a City Council Interview Committee, consisting of Councilors Moncrieff and Tierney, and Kent Studebaker, Budget Committee member, met on November 3, 2010, to interview candidates for the Budget Committee; and WHEREAS, it was the consensus of the Interview Committee to recommend that Joseph A. Vricelli and Christian Ramey be appointed to the Budget Committee for terms ending August 31, 2013; and that David Berg be appointed as alternate to the Budget Committee should there be a vacancy through July 31, 2011; and WHEREAS, a current member of the Budget Committee, Jeff Gudman, was elected to the City Council on November 2, 2010, thereby creating a vacancy on the Budget Committee, and WHEREAS, it was the consensus of the Interview Committee to recommend that Ron Smith be appointed to the Budget Committee for the remainder of a term ending August 31, 2011 to fill the upcoming vacancy that will be created by the election of Jeff Gudman to the City Council. NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lake Oswego appoints Joseph A. Vricelii and Christian Ramey to the Budget Committee for three-year terms ending August 31, 2013; appoints Ron Smith to fill the upcoming vacancy on the Budget Committee, for the remainder of a term ending August 31, 2011; and appoints David Berg as alternate on the Budget Committee should there be a vacancy through July 31, 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 16th day of November, 2010. AYES: NOES: ABSTAIN: EXCUSED: Jack D. Hoffman, Mayor ATTEST: Robyn Christie, City Recorder `ALD APP ED ASQR O David Powell, City 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: November 9, 2010 ACTION Approve minutes as written. ATTACHMENTS • July 13, 2010, special meeting • September 7, 2010, regular meeting Reviewed by: Alex D. Mclntyr City Manager Z-/. 7 --- CITY CITY OF LAKE OSWEGO 380 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us �a CITY COUNCIL SPECIAL MEETING C.,..-.,. A"I'M10 MINUTES LAO JULY 13, 2010 Mayor Jack D. Hoffman called the special City Council meeting to order at 6:35 p.m. on July 13, 2010, in the City Council Chambers, 380 A Avenue. Present: Mayor Hoffman, Council President Johnson, Councilors Hennagin, Olson, Moncrieff, Tierney, and Jordan. Staff Present: David Donaldson, Assistant City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Sarah Selden, Neighborhood Planner; Kim Gilmer, Parks & Recreation Director; Ursula Euler, Finance Director: Brant Williams; Economic Development Director Youth Council: None present 3. STUDY SESSION 3.1 Comprehensive Plan Video Sarah Selden, Neighborhood Planner, presented the three-minute video, created to get the public excited and involved in the Comprehensive Plan project. Mayor Hoffman and Councilor Moncrieff were featured in the video. This video would be posted to the project web site, which would be launching Saturday for the Centennial Festival. She encouraged everyone to stop by their booth located in the Futures or Sustainability pavilion. Tee shirts, buttons, and surveys would be available to help the visitors learn more and participate in the process. Kevin D' Haeze did a great job creating the video; she appreciated his help and noted that he also did the Centennial video. She shared that follow up videos may be created to record the project's process. 3.2 Park Naming Process for Lakefront Park Kim Gilmer, Parks & Recreation Director, stated a name was needed for the new park at the former US Bank site, currently referred to as Lakefront Park. Earlier this year, the Parks and Recreation Advisory Board (PRAB) recommended a community competition, which was last done when Foothills City Park was named. It worked by having the community submit names, a panel selected the name, and recommended it to the Council. PRAB was recommending the same process for Lakefront Park; however, before initiating the process, staff was requesting feedback to see if the Council was comfortable with that type of process or had other suggestions. She heard the Council might already have a name or process to propose. Councilor Jordan offered that she had a name, but did not care which name was selected; however, she did not believe it was appropriate to call the park Lakefront Park. Ms. Gilmer clarified for Councilor Hennagin that the fountain area was considered Millennium Plaza, but agreed that both the park and fountain area should have the same name if connected. That was why naming this park was a dilemma; it was not an isolated park that would stand on its own indefinitely if those areas were connected. The question was whether the area should be called part of Millennium Plaza, and a renaming process was needed, or should it be called something related. The criteria set could be that the name must relate to Millennium Plaza. Staff could determine some parameters and return to Council in September. However, Council's guidance would be helpful to get the process on the right track. Councilor Jordan suggested describing the unnamed park as eventually being a section of Millennium Park and the community would be naming that section. That portion would be City Council Regular Meeting Minutes Page 1 of 19 July 13, 2010 separated for a while and needed to have a name or it would get lost since the development of the rest of that area was uncertain. Councilor Hennagin disagreed. He was not sure it needed a separate name, even if it was not connected considering its proximity to the rest of the park. Councilor Johnson supported having a separate name, since it was a different area and could be used for anything. People would park up at Millennium Plaza and not know where to go. Hazelia Field at Luscher Farm, had its own name so she believed it should be given a name. There being no further discussion or comment, Ms. Gilmer said she had enough guidance to move forward and would return in September with a proposal based on the Council's suggestions. The City Council briefly discussed upcoming meeting agenda items. 3.3 Review Proposed Updates to the City's Financial Management Policies Ursula Euler, Finance Director, presented two minor changes in financial management policies, emphasizing it was not an overhaul of all the financial policies. She gave attention only to those items needing top priority. An overall financial policy review was expected in a few months. The last update was almost 8 -years ago. The first change or update was to make it official that new contingency and fund balance percents were in place. These were included in the budget process for fiscal year 2009, but were never officially made as a Financial Management Policy. The second change regarded the debt section, where language was being added as requested by the Bond Council, in anticipation of bond issues that would be presented to the Council later this month. This change would set the stage to be explicit about an option the City has always had, but the policies were simply silent on that subject. Cities like Lake Oswego and others could use their full faith and credit for bond issues for utilities, if they desired. This update would assist bond agencies when they came and rated the City of Lake Oswego. Ms. Euler confirmed for Councilor Olson that the full faith and credit was used for the previous sewer bond issue. As noted, the City had always been able to do so, using full faith and credit was very common. Councilor Olson noted the new wording presented in Item 4 of Exhibit A seemed different than the wording used in the cover memorandum. Ms. Euler explained several people were making modifications. The ending language that was desired was that the utility made that service payments from its own revenue sources. Councilor Olson indicated that the first sentence stated, "General Obligation debt would not be used for self-supporting enterprise funds" but the memorandum stated, "General Obligation debt would not be used to fund activity of self-supporting enterprise funds." She asked if there was a reason for the difference between the two statements, or if was it due to a legal issue. Ms. Euler clarified it was not a legal issue and that the final language should refer to the enterprise funds, not the activity. Councilor Olson confirmed with Ms. Euler that the wording in the policy should be used. Ms. Euler explained for Mayor Hoffman that Exhibit B was the old language. Staff considered red lining, but the amount of red lining required would have made it more confusing because items were summarized, especially for the contingency and fund balance percent. The old version was provided as Exhibit B, and the new policy language was Exhibit A. Mayor Hoffman stated that he preferred red lining and strike -through documents in the future. Councilor Hennagin said he did not like red lining, which he found confusing. He preferred using the Exhibit A and B method as presented. Ms. Christie stated the Proposed Updates to the City's Financial Management Policies would be back on the July 20 Consent Agenda. Council Schedule The Council discussed the City Council schedule. City Council Regular Meeting Minutes Page 2 of 19 July 13, 2010 Mayor Hoffman reviewed the agenda for July 20, noting the request for annexation and Foothills Citizen Advisory Committee (CAC) would be moved, and the other items would be short, except for the Distinguished Service Award for Councilor Johnson. Ms. Christie stated the Sustainability Update would also be postponed, and the Distinguished Service Award could be presented on July 20 or 27. Mayor Hoffman noted the LOIS Bond Sale overview was scheduled for July 27. It was an important issue because it was the second round of bonds. The Policy on Media in Executive Sessions might be moved. Councilor applicant interviews were also scheduled for July 27 at 4 p.m. depending upon how many applicants applied. Ms. Christie said there were three applicants for Councilor interviews. A couple applicants requested alternate interview dates or times. With applicant process being scheduled on such a short notice, some applicants already had appointments scheduled. Mayor Hoffman stated it would be difficult for an alternate interview schedule, but not impossible. The Councilors discussed having alternative interviews perhaps at 4 p.m. or 5 p.m. on July 20, prior to the regular meeting. With such full agendas, fighting fatigue would be a challenge, but it might work if only one or two individuals were interviewed. Mayor Hoffman noted that the appointment to the City Council vacancy was tentively scheduled on August 3 with Council's next session not being until September 7. Everyone would be kept informed regarding the number of applicants, and then scheduling the applicant interviews would be addressed accordingly. Mayor Hoffman continued reviewing the August 3 Regular Meeting agenda. He asked Mr. Powell to discuss the Adoption of Findings for Code Amendment scheduled on the August 3 agenda. Mr. Powell explained that the Council had adopted the amended Section 2, which was recommended by the Lake Corporation. He understood that since that adoption, several Councilors would be interested in being less restrictive or applying what was called Residential Infill Design (RID) process to those restrictions up to the cap proposed by Staff at the Planning Commission. The RID process already applied to those properties in residential zones, except there was no cap. With regard to water dependent structures, boathouses, etc., the RID process would be hard to qualify for. He was trying to determine if the Councilors intended another type of exception process or an easier RID process when on the lake than currently existed. Rather than returning with ordinance language, staff could discuss these questions and ideas with Council to help develop ordinance language in time for the August 3 meeting. The lake residents were eager to have the language in place by the time of the lake drawdown. Staff was running into issues and was unsure what the Council wanted. Council could consider applying a RID process, a capped RID process, or a RID light around the lake, or decide to continue with their original tentative decision. Mayor Hoffman stated the Council was motivated to help the property owners because the lake was going to be drained. Theoretically, a brief meeting could be held for an hour between August 3 and September 7 to resolve the issue. The intent was to try to accommodate the Lake Corporation and residents to complete work during the drawdown. Councilor Hennagin stated if they did anything different than they already had, Council would not be accommodating the Lake Corporation and property owners, because they adopted their request. In addition, it would take awhile for the lake to be drawn down. It was hard to foresee a lake owner's construction project that included the accessory buildings taking more than the 6 months. He was not sure the amendment needed to be rushed through by August. Mr. Powell agreed, but he had heard some owners wanted to do some preliminary work prior to the water being down. A few had also expressed that finding contractors, bidding, etc, might also cause problems. Council Olson stated some individuals were struggling with design issues, because they did not know what the height and size limitations were. Lake owners were trying to City Council Regular Meeting Minutes Page 3 of 19 July 13, 2010 get designs and bids so that they were ready when the water did go down, so she believed that was the urgency. She would be available to meet on August 2 or 4. Councilor Tierney commented that this resolution was a result of trying to create something in a restricted amount of time, rather than taking the time needed to resolve it; he was willing to have an additional meeting in August to address such issues of importance. Mr. Powell stated the ordinance the Council decided to adopt must be on file in its final form at least a week before adoption. Staff would schedule appropriately. Councilor Jordan said that it seemed like people did not understand there would be a RID process that would apply to what they were doing. She was not sure they needed to spend more time creating new things. Mayor Hoffman suggested staff could work with the Lake Corporation Board and the affected members to develop language that they all could agree upon and bring it back to the Council, as opposed to trying to write language when it was a staff and landowner issue. Mr. Powell confirmed staff could work with the Lake Corporation Board, however, he understood the Lake Corporation did like what Council had already adopted. Councilor Jordan believed the concern was that property owners around the lake were not notified. The recommendation moved rather quickly from staff to the Planning Commission, to make sure it was done in time, for those who wanted to do work when the lake was down. There had not been notification for many people. Council discussed that the Planning Commission had the proposal as part of a large housekeeping package for almost two years but the Commission sped up the process. The package was divided into major and minor topics, and this proposal did get some attention because it was a policy matter, not just a simple housekeeping item. Councilor Olson commented that the proposal was done quickly with little community knowledge or participation. She was not sure everyone was aware of the RID process, or that Council needed to change it now, since there was a RID. Ultimately, the Lake Corporation was the final arbiter on whatever was done around the lake. Mr. Powell emphasized it was difficult to get RID approval for a boathouse. While the Lake Corporation was the final arbiter if it was on their property, most residential lake properties were subject to the Lake Corporation Conditions, Covenants, and Restrictions (CC&Rs), which require compliance with regulations, including design standards, as they relate to water dependent structures like boathouses. The Lake Corporation would have some control over structures on typical residential properties on the water. He could not represent that it applied 100 percent to all properties, which could be Lake Corporation's concern; he would discuss that with them. He added that if the residence was upland, that would be another issue. Councilor Hennagin believed Mayor Hoffman's suggestion was the most practical approach. Mayor Hoffman stated his only concern was he did not want to insult the Planning Commission, since they had definite opinions in terms of lake front owners following the same rules as everyone else. He was unsure if the Planning Commission had that kind of ownership of this issue. Councilor Jordan did not believe the Planning Commission had the ownership of the issue in that kind of respect. She noted what was going on around the lake right now did not conform to what the Council already adopted. There were many exceptions, if people went to redo something and then fell under the new restriction, it could create a different look than what was already on the lake. A lot of what was currently on the lake was gracious and graceful as far as step backs and larger landscape areas, than smaller 3 -ft successions. The problem was no flexibility existed with what the Council had adopted. At the same time, there were no setback requirements on the lake so they would not want it to get out of hand. Lakefront zoning requirements did not match citywide requirements. City Council Regular Meeting Minutes Page 4 of 19 July 13, 2010 Mayor Hoffman stated it seemed that Council agreed staff should work with Lake Corporation and interested parties to develop a package for Council to review in August. Councilor Olson suggested discussing the proposal July 27 if the Policy on Media in Executive Sessions was delayed. Mayor Hoffman would work with staff to verify which date would work best given the agenda items. Ms. Christie noted August 3 was quite full. Mr. Powell clarified that if the discussion was held on July 27, the City would not be able to notice the ordinance in time for adoption on August 3, so adoption would occur in mid-August, if acceptable to Council. Staff could do what the Council was requesting with a 1-2 week notice. Mayor Hoffman stated if they could get them by Labor Day, they could start to review plans. Mayor Hoffman confirmed the Policy on Media in Executive Sessions would be removed from the July 27 agenda, since it involved significant policy and legal issues, was complicated, and time was needed to address the issues. Mr. Powell clarified that although the Lake Corporation liked the proposal that Council tentatively had adopted, the Council's objective was to work toward a similar proposal, but with flexibility, and to solicit the Lake Corporation and interested parties for ideas and suggestions. 3.4 Lake Oswego to Portland Transit Project Briefing Brant Williams, Director of Economic and Capital Development, stated the CAC has been meeting monthly since October. John Cullerton had presented the growth projection and traffic analysis at the last meeting. That information would be would be critical for the various evaluation criteria being considered for the project. He introduced members of the CAC Chair, Ellie McPeak and Bridgette Weihart of Metro, who are available for questions. The Steering Committee meeting was held that morning with Mayor Hoffman and Councilor Olson attending. At that meeting, Project Manager, Doug Obletz provided a thorough project update, and Steve Siegel presented the financing piece. Copies of the Steering Committee's meeting packet were available for Council to review. Council was also provided with the newsletter that reflected the updated timelines. He reviewed the three project alternatives. The No -Build option meant there would be no major investment in transit in the Hwy 43 Corridor. The Enhanced Bus Alternative would increase the frequency of the Line 35 bus between Portland and Lake Oswego, improve its travel time by reducing the number of stops, and make small route changes in the Portland area. The Streetcar Alternative would extend from South Waterfront to Lake Oswego. The streetcar would replace Line 35 between Lake Oswego and Portland, which currently goes from Oregon City, through West Linn to Lake Oswego and ties into Line 78, which goes from Lake Oswego to Beaverton, and create one continuous route from Oregon City to Beaverton. He had initial conversations with TriMet on how existing bus linfdees servicing this type of corridor were addressed when a streetcar was put in, and how they provide for those connections since the line would start in Lake Oswego. TriMet stated they typically increase the level of service to provide good strong connections to the rail systems being installed. Staff said that Lake Oswego could potentially see enhanced stop service in and around the city. However, this had not been finalized and would not happen for some time. Mr. Williams clarified that the Streetcar Alternative would replace all bus service on Macadam between Lake Oswego and Portland. From Lake Grove, the bus could be taken over Sylvania. However, that depended upon TriMet's routings and how they managed their system. What was generally seen with these rail systems was that connections to the rail line are enhanced. Given TriMet's difficult financial situation, they would have to see how that played out. Last time he discussed five design options, but now there were three phasing options and two design options for the streetcar. The phasing options were related to projects in Portland that overlap with the Streetcar Project. One project was the South Portal Project on the south end of South Waterfront. The question was whether the Streetcar Project or South Portal Project would occur first. He would talk later about the pros and cons of how those work. City Council Regular Meeting Minutes Page 5 of 19 July 13, 2010 Mayor Hoffman asked if the South Portal Project would allow access from 1-5 to the South Waterfront. Mr. Williams clarified the South Portal Project was primarily from Macadam Ave to the South Waterfront to cleanup operations there with further future development of the South Waterfront. He confirmed there would be a coordination effort coming off Macadam by car and the potential streetcar crossing. Mr. Williams continued that the second phasing option regarded the overlap of the Sellwood Bridge Project with the Streetcar Project. As with the South Portal Project, the question was which project would occur first. The last overlapping project would be the Foothills Project, which would put in streets, utilities, and do some grading. How that fit with the Streetcar Project was the question. The two design options regarded whether the streetcar stays on the Willamette Shore Line or goes out on Macadam Ave in the John's Landing area. The design option presented by neighbors in the Dunthorpe/Riverdale area moved the streetcar from the Willamette Shore Line to Riverdale. Those options could be found in the newsletter provided to Council. Both Streetcar and Enhanced Bus Alternatives would involve a new, 300 -space Park & Ride facility in or around the Albertson's Lake Oswego Village Shopping Center site. In addition, the Streetcar Alternative would also include a 100 -space Park & Ride facility in the Foothills District, which would likely be a surface lot depending upon how Foothill develops. Assuming Council adopted the Local Preferred Alternative (LPA) with the streetcar, some final details to be considered on the Park & Ride, using the preliminary engineering and Final Environment Impact Statement (FEIS), would be how the Park & Rides would work, function, whether they were the appropriate size, and how they would fit in Lake Oswego. Mr. Williams stated the project team would be submitting its third draft on July 19 of the Draft Environment Impact Statement (DEIS) publication. The DEIS was a Federal Transit Administration (FTA) document and they subject to the FTA's review periods. The team hoped to have the document ready for publication in mid-August, but due to revising efforts based on comments and FTA review time lines, the publication date was expected to be about September 27. The 45 -day public comment period would follow that date. Mr. Williams confirmed for Mayor Hoffman that the FTA contact person in Seattle received the DEIS publication, which was distributed by sections, including financial and technical design chapters. Mr. Williams confirmed good communication and coordination did occur between Metro Staff and the FTA when the DEIS publication was released. As September approached, they would know more about the date of publication and would keep Council informed. Once the DEIS was published, each Councilor would receive a copy. Mayor Hoffman suggested scheduling a briefing once the publication was ready so Staff could walk Council through the document. Councilor Olson commented it would be great if Council could get the DEIS document in August since they had most of that month off; fall was going to be busy. Mr. Williams replied that as a FTA document and FTA did not want the DEIS publication released until they reviewed it and determined it acceptable. Mayor Hoffman suggested that perhaps Council could meet earlier with Mr. Williams to review the different chapters and concepts. If it came out in September, Council would need a two to three hour briefing of the document, similar to what was done with the Comprehensive Plan, but the DEIS document may be even more comprehensive. He suggested Doug Obletz help with the review of the DEIS document. Mr. Williams continued, that the DEIS and LPA were together, yet separate. The DEIS was the FTA document and the LPA was chosen locally from the alternatives and information from the DEIS document. Following the 45 -day comment period in mid-November, they would go through a series of processes to reach a decision for the LPA. The CAC and Project Management Group would make their recommendation, and those two recommendations would go to the Steering Committee, which included the Mayor and other elected officials. The Steering Committee would City Council Regular Meeting Minutes Page 6 of 19 July 13, 2010 make the final recommendation to all the elected boards and agencies. Those agencies included the City of Portland, City of Lake Oswego, Clackamas and Multnomah Counties, TriMet, Portland Streetcar Inc., and ODOT, because of Hwy 43. Once the recommendations were complete, the Transit Project would go to Joint Policy Advisory Committee on Transportation (JPACT) and then to Metro for the final decision. Mayor Hoffman understood the project was on Metro's December 16, 2010, agenda for a decision. He confirmed with Mr. Williams that the LPA was the community's choice; the FTA in Seattle or Washington, DC would not approve or disapprove the LPA. Mr. Williams added that the LPA allowed them to apply for a New Starts Project. Mayor Hoffman said he wanted to walk through the process with the group. He confirmed that as part of the 45 -day comment period, three public open houses would be sponsored and organized by Metro, but the project partners would be involved. He asked what the next step was after the LPA was sent to Seattle. Mr. Williams replied the FTA would get the LPA, but the next step was for local agencies to submit an application for the project defined as the LPA. Having a DEIS and LPA approved through the appropriate processes allowed them to apply to the FTA for a New Starts Project. All rail projects done using Federal funds have gone through the New Starts Project. He reminded that at one point, they were trying to expedite the process to take advantage of possible extra Federal funds through the Fast Starts Program. However, that reauthorization on the Transportation Bill had not occurred due other priorities in Washington DC and those programs were not available. Mayor Hoffman said he anticipated having Rick Gustafson present the federal process during a study session to the Council about what the New Start Program entailed. Having Mr. Gustafson provide insight on the process was important because the large amounts of federal and local money involved. Mr. Williams stated that budget -wise they were doing fine. $4.3 million had been spent on the DEIS, although it was a significant amount, such projects are substantial. The sources needed to get through the LPA phase were identified, costing approximately $478,000. Long-term funding was still in question as funds still needed to be identified for the FTA application phase, preliminary engineering, the FEIS, and final design phases. The three phases to get through design and the FEIS were the New Start application, costing $1.3 million, and then preliminary and final engineering, each costing $12 million, for a total of $25 million. A critical point in the process was the Full Funding Grant Agreement (FFGA) where FTA and the regional project partners reach an agreement on what the project would be and how it would be funded with the commitments to the funding in place. If the FTA was willing to provide 50% to 60% of the project's capital funding through FTA federal monies, the City, County, and State jurisdictions would need to prove to the FTA that they could secure their share of funding when the time came. Mayor Hoffman added that the FTA would not only want to know that the system could be built, but that the jurisdictions could financially operate the system as well. Mr. Williams confirmed for Councilor Olson that the memorandums of understanding would occur toward the end, sometime during the FEIS and final design phases, as the last step before construction started. Mayor Hoffman asked Brigitte Wieghart to discuss the Portland-Milwaukie Light Rail Project and her experience with the timing as it related to that DEIS. That $1.4 billion light rail project was about five or six years ahead of the Lake Oswego project. Bridget Wieghart, Metro Transit Project Manager, stated the Portland-Milwaukie DEIS process took about six months after completing the DEIS application. The LPA, and submitting the application took about two months. The DEIS was larger than the FEIS, and included a lot of travel forecasting, etc The DEIS took a couple of months to prepare, and the FTA took six months to review the application. She believed Doug Obletz scheduled the FEIS and preliminary engineering (PE) as about a one-year process. City Council Regular Meeting Minutes Page 7 of 19 July 13, 2010 Mayor Hoffman explained PE would explore and identify, for example, where the streetcar would go and how would it be designed and constructed. Ms. Wieghart clarified the PE gets to a 25% and a 30% design stage that came typically at the end of the engineering and then they would apply for final design. Mayor Hoffman confirmed that roughly $12 million was spent to get to the 30% drawings, which outline the rail system's alignment. He asked if the FTA gave approval after the preliminary engineering stage. Ms Wieghart replied that following preliminary engineering, they would have to apply for final design, which could take about eight months based on this most recent experience. It was hoped this smaller project would take less time Councilor Hennagin questioned how the DEIS affected the Steering Committee's decision on the LPA. What role did the DEIS play; could the Steering Committee ignore it; was there a rule of interpretation or application that required the DEIS to be considered at a certain level. Ms. Wieghart explained the need for the DEIS process, as required by the National Environmental Policy Act (NEPA), is intended to ensure that enough equal information exists about all the analyzed alternatives and that information is made public. The DEIS would become the basis of information for the decision makers. The FTA cares about the process, that the information was provided and publicized, and that the decision makers have had opportunity to review it and hear from the public. At that point, FTA allows it to be a locally determined process. The DEIS was useful, and John Cullerton's presentation would provide information that would be in the FEIS. The actual narrative could no longer be distributed because it was a FTA document, but the information being shared with the CAC would be the same information and Council was invited to attend that presentation. Mr. Williams added that for success in the New Start application or for any federal funding, they want to be as true to the process and information presented as possible. The FTA would not dictate what alternative is chosen but, being cognitive and using the information in the DEIS to make decisions would place them in the best position for success. Mayor Hoffman reviewed that after PE, they would apply to the FTA for final design, and if approved by the FTA, they would be authorized to proceed with the project. He asked if the FEIS was the final product, when the record of decision would occur, and when would the FFGA received. Ms. Wieghart explained the final product included the FEIS, as well as detailed design drawings in which 60% or more of the engineering would be completed, and the project would be ready to move toward construction. The FEIS was prepared and completed during the preliminary engineering phase, which involved 30% design completion. The record of decision was received 45 -days to two months after publication of the FEIS. The environmental impact statement discloses the impacts, and then negotiation occurs about how those impacts would be mitigated. The record of decision documents those agreements regarding mitigation. Ms. Wieghart explained the release of federal funds was part of the FFGA, which would occur after PE, the FEIS, and the application for final design. Once the whole final design process was complete, the FFGA was the last stage before starting construction. Some projects front some initial money just to get construction started before the FFGA is received. Mayor Hoffman stated the threat of litigation was a concern on any project. He understood that any litigation filed would be after the FEIS, and when the project was essentially owned by the FTA, the FTA would defend the project. Ms. Wieghart confirmed that FTA would defend the project, but TriMet and Metro would participate. Mayor Hoffman understood that money was released when the record of decision was received. He was told the Portland-Milwaukie project would be receiving money this month as they were getting their record of decision. Ms. Wieghart clarified that anytime after receiving approval to enter into preliminary engineering, local funds that are expended could be counted as the local match, so they already had a sort of approval to spend the money. Mr. Williams added that federal funds associated with the FFGA would not be received all at once, a portion of the funds were appropriated out each year for projects throughout City Council Regular Meeting Minutes Page 8 of 19 July 13, 2010 the country. Federal funding could still be going to the local jurisdiction for those projects, even after it was fully operational. Councilor Hennagin asked how local agencies paid for construction, they may have to borrow. Mr. Williams stated that was part of the project's financing plan, which included the financing fees, interest costs, etc. As part of the FFGA, the FTA has a good idea of how money would come into the region for the project. The financing plan even included the preliminary financing and capital costs work that Steve Siegel had been doing. John Cullerton, URS, Transportation Planning Consultant, presented the Travel Demand Model from two presentations he gave to the CAC involving the travel demand model and growth forecast. He would also describe how the modeling and growth forecast information was used in the DEIS. He reminded that they were forecasting out to the year 2035, and briefly reviewed the transportation and development conditions that existed 25 years ago, highlighting the massive changes seen in those 25 years. The regional population growth forecast between now and 2035 was 1.3 million above the current population of all four counties, resulting in a population forecast of 3.1 billion in 2035. Population allocation by county showed Clackamas County as the largest single recipient of that growth. The travel demand model used information on existing and planned transportation systems, such as what was happening on the roadways and in the transit system, planned projects, forecasted growth, and travel behavior. Travel behavior information was gathered with a detailed travel behavior survey done on regional basis. The information from the survey included how many cars were on the major streets, how many people used transit, and the number of walk and bike trips. Every 10 to 15 years, Metro completes a comprehensive travel behavior survey; the most recent was done in 1994/1995 when 6,000 households were surveyed. Each household member kept a log of all the trips they made for two to three days, allowing the survey to gather a lot of demographic and other information as well. The simulated roadway and transit network was essentially a computer representation of the entire freeway, arterial, and collector level system. The travel model was a four -step model created to answer four basic questions: how many trips there were, where the trips are going, what mode of transportation is being used, and which routes are being used for each of those transportation modes. The model divided the region into geographic units with about 2,000 comprising the overall region. Trip generation was based on the household and employment forecast. A household and employment forecasts existed for each geographic unit, as well as demographic information, regarding age, income, and household size. That information varied dramatically by location within the region. Determining where all the trips would go was based on the household's location in relation to the location of employment. The employment not only represented where people travel to work, but also shopping opportunities. People tend to travel shorter distances to meet their needs. People tend to locate near where they worked, with the average work trip being 20-25 minutes. A typical work trip in the region was less than six miles. Demographics, age and income played a big role in the mode of transportation used. In the tradeoff between cost and travel time, transit could become more competitive and was more attractive in terms of travel time. Income also figured into the mode of transportation selected. For lower income people, cost was more important than travel time, whereas higher income people valued travel time over cost. All of that was built into the model to weigh whether a person selected transit or automobile for a trip. The final question was what route would be used based on the choice of auto or transit. Auto trip route choices were based on travel time. The model used a representation of the roadway network to determine the shortest path between the origin, Point A, and destination, Point B. The uncongested freeway was identified as the optimal choice, so in running an assignment through the model, everyone chooses the freeway, making it no longer the fastest route. A number of iterations are done to find equilibrium amongst the routes, but basically no quick way existed to get from Point A to Point B because everyone had already figured out the routes. On the transit side, City Council Regular Meeting Minutes Page 9 of 19 July 13, 2010 routes were determined by the frequency of service available from Point A to Point B. This modeled information was used to gather information on peak hour traffic conditions and transit ridership, how transit was being used and ridership levels by different alternatives. It was important to understand that the FTA required that all the transportation alternatives be analyzed based on the same growth forecast at that small geography level for a level playing field. The population and employment forecast for the region started with information from the National Bureau of Labor Statistics, which issues national employment forecasts at the state and regional levels. Metro used that information and worked with specialized consulting firms to determine the 2035 employment forecast for the four -county region. Population is derived according to how many people would be needed to service that employment forecast and also account for the age core, how many people are under 18 years old, in retirement, etc. Overriding State and regional policies dictated how population was allocated in the region. The 2040 Growth Concept and Urban Growth Boundary (UGB) provide policy guidance at the state and regional levels, while local comprehensive plans are the implementation tool for some of those policies. The Metro Growth model, used as a tool to allocate regional growth, takes into account vacant and developable land and redevelopment opportunities throughout the region. Mayor Hoffman added the Metro Growth was a complicated, but important computer model used by Metro to determine if and when the UGB was moved. Metro considers zoning, existing zoning, under zoning, etc. throughout the entire region. The Metro has relied on the model for the last five to seven years to determine where people are going to move and to consider market factors as well. Mr. Cullerton stated the model also takes into account accessibility, in terms of regional travel times. The model was used to develop an initial allocation of where the 1.3 million in additional population growth would occur in the region. It then goes through a local review process and approval at the impact level, which takes about an 18 -month process. Metro had worked closely with the Denny Egner and the Lake Oswego staff to work out the numbers. The forecast for the Lake Oswego -Portland Corridor, defined from northwest Portland at the end of the streetcar line through Lake Oswego, captured about 8% of the forecasted 1.3 million in regional population growth. Of that forecasted 100,000 increase in population, 81 % was expected in South Waterfront to northwest Portland; 7% in John's Landing; 1 % in Dunthorpe/Riverdale; and 11 % or 7,200 additional people in Lake Oswego. He described where the 7,200 would be allocated throughout Lake Oswego. The Foothills area east of State St would have more than 50% of that growth allocation. A large portion was also forecast for the Albertson's site, with relatively smaller portions west of State Street in central downtown. Those smaller portions represented some additional household growth in terms of condominium development on certain lots. The traffic demand growth for the two evening peak hours was used rather than the morning peak hours because it was the period with the largest number of vehicles on the road. Other types of trips also occur in the evening that are not counted during the morning peak hour. The model compared the existing and 2035 forecasted traffic demand growth for all the north/south routes from downtown Portland toward Lake Oswego, including Iowa St in the John's Landing area, Barbur Blvd, Corbett Ave, Macadam Ave, and 1-5. Mayor Hoffman noted that in 2035, traffic on southbound Macadam Ave would be as busy as Barbur Blvd heading out of town in the evening. At the points where the trips were counted, Macadam Ave was two lanes and Barbur St was three lanes. Mr. Cullerton added the current traffic count for Macadam Ave was about 4,000 trips within those evening peak two hours, by 2035, it was getting close to 6,000 trips. Mr. Cullerton reported that 22% of the evening peak hour trips heading into downtown Lake Oswego came on Terwilliger Blvd versus 78% on Hwy 43. Of those 78%, 17% of the trips head west into downtown or points west; 10% go east of Hwy 43 into the Old Town Neighborhood and Albertson's area; 29% out McVey Ave with 38% continuing south on Hwy 43. He did not have the current percentages of trip proportions for 2010, but it was probably similar percentage wise. City Council Regular Meeting Minutes Page 10 of 19 July 13, 2010 He reviewed limitations and existing conditions on Hwy 43, which included narrow right-of-ways, environmental and geological constraints between the Sellwood Bridge and Lake Oswego, and issues related to neighborhood and home access. Engineers could widen parts of Hwy 43 at great expense and with many impacts, but it would not address congestion problems associated with traffic signals and the need to provide access for traffic to turn left and right onto Hwy 43 or completely cross Hwy 43. He displayed two points where traffic was impacted by the signals, at John's Landing and in downtown Lake Oswego. Two fundamentals used for the DEIS were the traffic and transit operation analyses. The transit operation analysis would be discussed at some point in the future. The traffic operations analysis focused on congestion and travel times, which were then related to person carrying capacity. The analysis identified a few problem areas in the 2035 future traffic conditions on Hwy 43 that were consistent with known conditions of that area and how it performed today. The first problem area was at the north end near Bancroft St, and the area of the South Portal Project. Part of the South Portal Project was to extend Moody Ave further south where the streetcar would operate in mixed traffic. Using numbers based from the forecasted growth, traffic near Bancroft St was backing up and potentially creating problems for the streetcar's operation in mixed traffic through that area. The City of Portland and ODOT recognize that more work was needed on the South Portal Project's design for it to work with traffic and for the streetcar to move forward for both the state and local systems. The next problem area was at Boundary St, which had the highest east/west volumes of any traffic signals in the John's Landing area and needed the most time allocated to the east/west movement, in order to service that traffic demand. If the proposed new west interchange was assumed to be part of the Sellwood Bridge Project, it would improve the situation of traffic queuing from the bridge. But, as traffic associated with the growth forecast is introduced, it would still look like it did today due to the geological constraints at the west end of the bridge. The interchange would still not be a perfect solution forever given the continued growth and traffic, but it would be an improvement over today. The Lake Oswego downtown area with its many intersections was close to having problems with the increased volumes. Many intersections through downtown are operating at a Level of Service (LOS) that would be considered failing because cars sometimes wait for a couple signal cycles to get through the intersection. This was a no fail condition and not related to the transit alternatives. Mr. Cullerton explained the problems referenced involved intersections identified with an LOS above the ODOT or City standard based on 2035 traffic. Mayor Hoffman noted today, problem areas were identified based upon whether it was a morning or evening commute. In the evening commute, it extended an equal distance north towards Portland, and in the morning it extended an equal distance south toward West Linn. He questioned what was meant by problem areas because of the backed up traffic there. Another problem area was at Burlingame, where traffic comes in from 1-5 and Terwilliger Blvd and creates a big back up. In the evening, the problem area was west from State St towards 7th or 8`h St. Mr. Cullerton explained that the presentation was intended to show only Hwy 43 locations. His intent was not to represent queuing and the extent of the back up north and south, only a geographic signal of issues in the Hwy 43 area. Mayor Hoffman understood from the presentation that the backup and transit time would increase significantly in 2035. Mr. Cullerton stated both the Streetcar and Enhanced Bus Alternatives have issues related to the Park & Rides. Typically, about 40% of the vehicles using the Park & Ride lot would exit during the pm peak hour, adding about 25 additional vehicles heading south on Hwy 43 towards McVey Ave. Assuming both lots were full, close to 200 cars would be leaving during that pm peak hour period. A good portion of those vehicles would be in that area normally during that time due to people traveling by auto and choosing to use that Park & Ride for the streetcar or enhanced bus. The 25 net additional vehicles were used when looking at the intersection impact. City Council Regular Meeting Minutes Page 11 of 19 July 13, 2010 Councilor Olson understood the assumption in that analysis was that 200 cars would be parking and riding the streetcar rather than driving in to town. Mr. Cullerton stated that based on the model's forecast, assuming a maximum of 50% or 200 cars exiting in that pm peak hour, 25 were showing up as additional trips. He confirmed that the 175 trips were commuting anyways by car. Councilor Olson clarified the 25 cars were not creating the congestion, but rather 200 cars would be turning onto Hwy 43. Mr. Cullerton stated those were the intersection volumes they considered where the Park & Ride met Hwy 43. With that level of volume and the intersection south of the Park & Ride, it netted out to be about 25 cars. Councilor Olson understood an estimated 200 cars would come out of North Shore and by the Lakewood signal; it would be 25 more cars than what existed today. Mr. Cullerton confirmed for Mayor Hoffman that the traffic engineers had factored into the analysis that not everyone using the streetcar would use the Park & Ride. It was not derived directly from the model, but was part of the DEIS. Morning and afternoon traffic trips, as well as traffic coming and going from various locations were also included in the engineer analysis; however, he did not know how specifically it was called out in the DEIS document. The pie charts presented to Council reflected some significant household growth, but was not specific per site. He confirmed that pedestrian and bicycle traffic was also factored into the model for 2035, but identifying the number bike trips to the streetcar was a level of specificity beyond what the model was presenting. Mayor Hoffman believed the FTA calculated ridership, but was uncertain if that included bicycle trips. Mr. Cullerton explained that overall, URS reviews how similar locations perform in terms of bike and pedestrian access. He continued that only the Streetcar Alternative would require more work on the Moody Ave extension in the South Portal area. With Macadam Ave as currently figured, the proposal would be for the streetcar to enter at Boundary. Since Boundary already has the most east/west time allocated, time should be added to that east/west movement at the Boundary intersection, and remove some time from the north/south on Hwy 43. The traffic engineers would continue working to minimize or eliminate the time issues in those areas. A new traffic signal would be added at the other location south of where the streetcar would return to the Willamette Shore Line at SW Carolina. The analysis found a signal could work well in conjunction with the other existing signals and would not cause additional delay. In 2005, travel time by auto from the Portland State University (PSU) area to downtown Lake Oswego took about 18 to 19 minutes, and was forecasted to take 26 minutes in 2035. That same trip by bus took 28 minutes in 2005, and was forecasted to increase to 44 minutes in 2035. The Enhanced Bus Alternative that would have fewer stops would take 26 minutes and was forecasted to increase to 39 minutes. The Willamette Shore Line would have taken 30 minutes in 2005 and about the same amount of time in 2035 due to that exclusive guide way for the majority of its trip. With the Macadam Ave in street option, the streetcar was estimated to be three minutes slower, due to diverting the route up, dealing with traffic and signals, etc. The streetcar was forecasted to be a similar time in 2035, but still slower than Willamette Shore Line alignment. Councilor Hennagin believed one problem with commuting on the Portland streetcar was that it did not get priority over traffic signals like the MAX system. If the streetcar was built, had signal priority on Macadam Ave been considered to speed up the streetcar's travel time? Mr. Cullerton stated signal priority was considered at Boundary; however, concern existed about the impact on southbound evening traffic on Hwy 43 from Macadam Ave. The study assumed it would work within the existing signal cycles. He believed ODOT would have real concerns about providing complete preemption where a train would change everything and have immediate access as it came through. Mr. Cullerton presented the additional person carrying capacity given a completely separate right- of-way as represented by the streetcar. In conclusion, he stated all the transit improvements would slightly reduce traffic on Hwy 43, State St, and the Macadam Ave Corridor, except for the specific Park & Ride locations. The streetcar would reduce traffic slightly more than the Enhanced Bus Alternative, because it was forecasted to carry more transit riders than the Enhanced Bus. No City Council Regular Meeting Minutes Page 12 of 19 July 13, 2010 major traffic impacts were associated with the transit alternatives, but the minor impacts included the slight increase of traffic accessing the Park & Ride lots, and signal modifications at Boundary and Carolina with the Macadam Ave design options. It was important to understand that if the streetcar were selected as the LPA, mitigation measures would continue to be developed to address all the issues he had discussed. There would also be fine-tuning of the design work during the preliminary engineering and final design phase. Mayor Hoffman stated he was confident that some type of modeling existed to predict the behavior involving where riders would be dropped off. He did not believe a big traffic jam would result because riders would not all be dropped off right at the Lake Oswego Park & Ride, but a block away or across the street. Councilor Moncrieff asked if the Council could get more information about what the effect would be on Line 36. It did not make sense that Line 36 would be canceled if the streetcar ran on Macadam Ave because Line 36 would deliver riders to the Park & Ride station. Mr. Williams reiterated that typically TriMet enhances their connections to the rail systems. Like Line 36, if still Line 36, it could feed the streetcar. Councilor Moncrieff asked for verification about that to address people's concern. Councilor Olson asked why the streetcar would reduce traffic more the Enhanced Bus. Mr. Cullerton clarified the streetcar was forecasted to carry more transit riders because the streetcar travel time was significantly better for a majority of the trips. A presentation would be given on the transit and ridership forecasting, which would provide more detail. Councilor Olson asked if Lake Oswego's population growth of 7,200 was for all the areas on the map. Mr. Cullerton clarified the area shown indicated central Lake Oswego, and the 7,200 was allocated within that area. It was not identifying that as the only growth being allocated to Lake Oswego, but it regarded the area outside of Lake Oswego as indicated. Councilor Olson asked if any of the forecasting included the Stafford area. Mr. Cullerton stated the forecast had growth allocated to Stafford, but he was unsure how to characterize it. The forecast used for 2035 did not include what was being done with the recent Urban Reserves discussion. He believed more growth would be allocated given the recent process. Council Olson reconfirmed with Mr. Cullerton that some of the ridership and population growth was based on the development of Stafford. Mr. Williams said he did not know how much pertained to Stafford; he was shown a Metro map of the whole area that feeds the Hwy 43 Corridor. Councilor Jordan noted it would have been developed at the current zoning, and confirmed that eventually new figures would show the impact of the Stafford Urban Reserve designation on population allocation, which would then increase the numbers served through that corridor. Councilor Tierney asked if the analysis provided a definitive conclusion about the pros and cons of the streetcar option, or was it all part of the process. Mr. Cullerton replied the conclusion was there would be a significant growth in traffic on the Hwy 43/Macadam Ave Corridor, regardless of which transit project moved forward. And, implementing the Enhanced Bus or Streetcar Alternative would have a few localized traffic impacts, without substantial further damage to that traffic operation. He suggested waiting for more detailed information on the transit ridership before forming a pro or con conclusion. Councilor Tierney stated in transit and other studies of this nature, the gap between the time spent in a car versus alternative modes of transportation seemed rather large. In light of past transit projects, would the time differences presented when traveling by car versus the different travel modes be a common or frightening statistic? Would people keep driving their cars because no advantage in travel time existed? Mr. Cullerton stated the transit options considered are those that are closest to the auto travel time, and the streetcar at Willamette Shore Line would provide the fastest travel time. In a transit solution, the goal is get as close to an auto travel time as possible. On public transit, there would always be stops for people to get on and off, resulting in a slower operation than a car going straight from Point A to Point B. A subway or totally exclusive guide way system that achieved high speeds might be faster, however. City Council Regular Meeting Minutes Page 13 of 19 July 13, 2010 Councilor Jordan understood when they first started looking at alternatives, the number of car trips on Macadam Ave would not be reduced with any of the transit options; traffic would be maintained at present levels. She asked if no transit options were available would the auto travel time remain the same. Mr. Cullerton replied it might fluctuate a minute or two. The number of trips that would be attracted onto transit was still a relatively small portion of all the trips in the corridor. The City was providing an alternative that operates in a separated right-of-way with a dependable travel time day after day, but transit does not attract so many trips that traffic numbers go way down. By attracting additional people to transit, theoretically the number of vehicles would be reduced; however, taking more cars off Macadam Ave would make Macadam a more attractive option and other drivers would begin using it. Councilor Jordan said that was her point. She understood if transit were used, the number of autos would not be reduced on Macadam Ave. If no other transit options were available and the only way to reach Lake Oswego to Portland was by car on Macadam Ave, it seemed that the car travel time should increase significantly given the population growth forecast. But, based on Mr. Cullerton's presentation, cars would still be able to travel on Macadam Ave with a lower travel time than the transit. Why did not the car travel time increase closer to 2035 than it did on the model? Councilor Olson suggested they would be finding some other way to get into town. Mr. Williams agreed. He understood Mr. Cullerton to say other choices were available, like other corridors to travel in, or other places to live or work. The Macadam Corridor could only hold so much traffic. Cars could not continue to be pushed down that corridor if transit options were removed. Councilor Olson added more people could ride the existing bus system. Councilor Tierney said it was the correlation between traffic demand growth and travel time in the car. He asked if the travel time would only increase by 6-7 minutes if southbound Macadam Ave was at 4,000 today and 6,000 in 2035. Mr. Cullerton stated travel time went from 19 to 27 minutes, adding 8 minutes to a 19 -minute base was a 50% degradation in travel time for auto trips. He believed the numbers showed a significant growth in traffic in the corridor that would lead to perceivable degradation in the quality of that auto trip. It would make reliable transit in its own right- of-way a more attractive option for those located in a location to take advantage of it. Councilor Olson confirmed that the current regional population, including Clark County, was 1.8 million and would increase by 1.3 million in the next 25 years. She asked what the population growth had been over the last 25 years. Mr. Cullerton believed the 25 -year forecast represented a similar annual growth rate; however, he did not have the exact numbers. Councilor Olson confirmed that people sought to live within an average of 6 miles from their work place and that the streetcar line was in a 6 -mile corridor. Councilor Olson confirmed with Mr. Cullerton that the trips were based on the population growth in Foothills, which was included in the 7,200 for Lake Oswego, asked if that was a big part of ridership. Mr. Cullerton reiterated that he did not have ridership information, which would be part of a future discussion. Mayor Hoffman confirmed that City Council would have future discussions on traffic and transit forecasts as well as ridership, as the process progressed. He stated he wanted to move on to the construction costs. Mr. Williams added the CAC would receive the briefing in August, and Council should get their briefing on those issues in September. Mr. Williams distributed a handout titled, "Overview of Lake Oswego Capital Cost & Financing Issues", which was information Steve Siegel presented to the Steering Committee that morning. The material discussed the preliminary capital costs, primarily for streetcars which were the most complex, but some figures regarded the Enhanced Bus. The allocation of cost sharing and Operation and Maintenance (O&M) costs were not being considered at this point, but both would be discussed at a future briefing. It would take time to determine Lake Oswego's cost share. The LPA and costs needed to be determined, as well as a negotiated, or agreed upon allocation on how the different partners would allocate out the local match. City Council Regular Meeting Minutes Page 14 of 19 July 13, 2010 Lake Oswego's percentage would be based on what the jurisdictions could afford and what a reasonable share would be for the Cities of Portland and Lake Oswego. The City and its partners would work through a process to calculate the percentage and look at all opportunities for funding. He reviewed the Project Capital Cost Background on Page 14, and noted that due to the different design and phasing options, 96 different combinations existed for what the Streetcar Project could look like. Though Mr. Siegel's analysis, he selected representative scenarios for the City Council to consider, since reviewing 96 combinations would not be feasible. Some interesting issues included how the projects lined up. The City of Portland already had money allocated for the South Portal Project through their Portland Development Commission. The question was whether those monies could also be used toward the Streetcar Project to help both projects get funded. Such issues needed to be considered not only for the South Portal area, but also for the Sellwood Bridge and Foothills area. Item 3, Capitol Cost Elements, included costs for 2035, reflecting what the FFGA would look like and what would be needed to construct the project for opening day. URS provided the 2010 costs, which had to be inflated to Year of Expenditure costs that are allocated over those years of construction. Also included are upfront and other soft costs that needed to be factored in. With regard to Design and Construction, URS utilized 2010 cost estimates and calculated the range just for construction to be $150 million to $200 million. Much higher numbers were expected, but the actual construction piece in current year dollars is currently estimated with very little engineering. The value of the right-of-way that could be donated to the project would be determined when the FFGA was put in place. An appraisal must be done within 6 or 8 months of that FFGA, so real values were used for that right-of-way. The most recent appraisal done on the right-of-way was completed in 2008, before the market crashed, so the numbers presented to Council are based on that 2008 appraisal. The figures did not account for the downturn or what might be in play from this point until the FFGA, only the 2008 numbers are being used. Interim Borrowing and Net Finance Costs during project development would occur if the Federal funds did not come in right when the project needed those funds. Costs were also associated on the local match piece, because typically, some local matches are financed, resulting in interest or debt services costs. Although an expense of the project, these costs could be used as part of the local match to leverage more Federal money, and were included in the financial plan. Design and construction costs would include hard construction costs, design engineering, administration, management, and the purchase of the right-of-way, including property acquisitions for certain design elements or options. Mayor Hoffman clarified that the right-of-ways would be in addition to the Willamette Shore Line. Mr. Williams noted some right-of-way acquisitions could also be needed along the Foothills alignment. Eleven streetcar vehicles were forecasted for acquisition for 2035 at $4 million each with four vehicles at the start of operations. The 2035 costs would include the 11 vehicles; however, in the FFGA from the FTA agreement it would only show four vehicles. Mayor Hoffman noted the plan forecasted starting construction in 2015 with completion and streetcars running in 2017. Mr. Williams continued that the budget allowed for a maintenance and storage vehicle allowance and art and contingency. As in kind contribution, the FTA would decide if right-of-way was eligible and determine its real market value. Again, 2008 appraisal figures were used in the report. Mr. Williams clarified for Councilor Olson that the FTA had to agree that Lake Oswego's transit line qualifies for matching funds, and everything the City was doing. The history was that the FTA does allocate the local match for property used for such projects. He believed that was why Neil McFarland came here regarding the Milwaukie Light Rail because the City of Lake Oswego was donating part of the Willamette Shore Line north of where the streetcar would be so it could be used for match. City Council Regular Meeting Minutes Page 15 of 19 July 13, 2010 Mayor Hoffman noted it was a big deal for streetcars in other cities that already had the existing right-of-ways, so they donate it to the project. Finding the value of the right-of-way meant Lake Oswego would own the ground under the streetcar track between Lake Oswego and South Waterfront, while other ones are easements. The FTA values that based on $X amount per square foot with right -or -way being valued higher than easements. After the appraisal was done on the different parcels, the FTA would add a bonus because Lake Oswego has assembled property for the entire route along the 6 -mile corridor, which was how it could be valued at $100 million. Mr. Williams continued to Item 6 regarding the interim borrowing and that finance cost, one for the federal piece and the other for the local match. Mr. Siegel's report laid out numbers for different elements, including design, construction, the contributed right-of-way, interim borrowing interest and that finance cost, etc. making the preliminary total cost estimate $380 million to $460 million. He clarified Mr. Siegel's report should have included the cost of equipment and vehicles with the construction cost estimate of $150 million to $200 million; $380 million to $460 million included all costs not just construction. The estimate was for 2015 to 2017, the years of expenditure. Mayor Hoffman understood the cost included the right-of-way and was also included as part of the revenue under Item 9, it was counted twice. Mr. Williams explained the City wanted to see it twice because it was the local portion. Likewise, the local interest and debt service costs needed to be factored in for the same reason. He confirmed the contributed right-of-way was not a cash donation, cash was subtracted. With a right-of-way valued at $100 million, the project would cost between $280 million to $360 million, again, that included all the finance costs, etc. Mr. Williams continued with Item 8. Those numbers were based on 60% Federal dollars with a 40% local match. Currently, TriMet and FTA are discussing the appropriate federal percentage for the Milwaukie Light Rail Project. On larger projects like the Milwaukie project, the FTA was pushing to change the percentage from the 60/40 to a 50/50 split. By law, no more than 80% in federal funding could be used. In order to allocate more funds for more projects, the FTA was trying to reduce their share on projects, so more projects could be done. Lake Oswego might face that challenge also. Typically, smaller projects were funded at the 60/40 match, but that could change based on the administration in place at the time. The City had very supportive congressional delegates who would work hard to ensure 60/40 was retained over time. Mayor Hoffman stated Rick Gustafson would talk with Council about the federal funding process, which is his area of expertise. The concern was whether projects would have 50/50 or 60/40 funding percentages. There was the Portland-Milwaukie Light Rail, a $1.4 million project, the Lake Oswego project, which the City hoped would be 60/40, and the Portland/Tigard Project on Barbur Blvd. These projects all involved lots of money, so people were paying close attention. Mr. Williams stated Item 9 regarded in-kind contributions, right-of-ways, shared project contributions, which could include the South Portal and Foothills projects, Project Specific Match, and revenues used to net finance costs. Mr. Siegel's compared two similar projects, the Riverwood and Willamette Shore Line alignments in the Dunthorpe area, to show how funding options are considered. The total capital costs for Riverwood were actually less than the Willamette Shore Line, $386 million versus $400 million. However, when the 60% match by the Federal New Start program and the right-of-way contribution are considered, which only apply to the Willamette Shore Line, the Project Specific Match changed. This resulted in the Riverwood alignment costing more locally at $55 million, versus the Willamette Shore Line alignment at $47 million. The analysis to determine the LPA that worked for the communities involved and addressed project funding concerns would be complex and intricate. Councilor Tierney asked if the alternative was moved out of Riverwood or Macadam, could the right-of-way be sold that was not being used for the streetcar. Mr. Williams believed that would be considered on case-by-case basis. If the City did not use some properties for rail purposes, they automatically revert to the adjacent property owners; other properties on the Willamette Shore Line that the City owned fee simple, which could be sold. There was also discussion about using the Willamette Shore Line for a bike/pedestrian facility if it was not used for rail. The question of selling unused property could be considered once project decisions were made. City Council Regular Meeting Minutes Page 16 of 19 July 13, 2010 Councilor Jordan stated that having some type of Local Improvement District (LID) had been mentioned if the streetcar was moved off the Willamette Shore Line and Macadam area because those property owners did not want a streetcar traveling by their property. In this scenario there would be a trade, an offsetting amount of money to forward for the loss on the value for the right- of-way. Mr. Williams replied the City of Portland would have to look at that for their funding portion of the project. Lake Oswego would have interest in that as well, because the overall project would be losing that local match. The City wanted the City of Portland to step-up and figure out ways to offset that loss. The property owners say they benefit by not having the streetcar traveling by their front doors. Councilor Hennagin believed retailers along Macadam Ave would fund the LID because they were hoping for an increased business from people riding the streetcar. Mr. Williams said he could almost guarantee Portland would look at that. Previous streetcar projects had gone in that direction. Moving the streetcar away was not a benefit; it was a benefit to have the streetcar, so LIDs were instituted in downtown and northwest Portland an also on the east side. Mayor Hoffman asked about the two examples involving Dunthorpe, the local match would be somewhere near an average of $50 million. Mr. Williams added that example did not show what the other local matches would be for the lower Foothills Willamette or upper Foothills Willamette, which would make a big difference in the local match figure. Mr. Siegel's example only provided a constant to show how the two would work. Mr. Williams stated that Item 10 laid out how the overlapping projects helped or hurt the project. The worst-case scenario for all the jurisdictions and the streetcar project was if the other projects, South Portal, Sellwood Bridge, and Foothills, did not move forward because the entire cost of the Streetcar would have to be funded. The second bullet presented a good scenario of all the projects moving forward first and building the necessary improvements so the streetcar could follow and fit adjacent to those projects; then each jurisdiction would pay for their portion of the expense. For example, Lake Oswego would spend money for utilities a road and the road grading down through Foothills. The streetcar project could then install some tracks and essentially be done. This would be cheap for the streetcar project, but Lake Oswego would have had to pay 100% for the Foothills improvements of that project. The best -case scenario would be if the two could be coordinated to take advantage of federalizing the entire project and get the 60% federal share to make the entire corridor work in the best manner possible. Councilor Olson understood that in the worst-case scenario, if the streetcar moved forward without the South Portal/South Waterfront project, then the City of Lake Oswego would be helping to pay for the South Portal project as a project partner. Mr. Williams clarified that it would ultimately depend on how various portions of the project were negotiated with the City of Portland. Councilor Jordan asked since Portland got a TIGER (Transportation Investments Generating Economic Recovery) Grant for the Moody Ave portion, would any of the South Portal engineering be done on that Moody Couplet. South Portal was shown in the same location as the Moody Couplet. Mr. Williams clarified it was the same name but that entire project was further north and associated with the Portland-Milwaukie alignment. Mayor Hoffman noted that Item 11 was incorrect and should state, "$3�90 $388 million over $8-2 milker." In addition, "$418.5" should read, "$4183". He then cited the following figures: $232.9 million for New Start; $83.4 million for In -Kind, $65.3 million, Project Match, with a total of $388 million versus $418 million. Mr. Williams explained the Lake Oswego example was showing pulling everything constant except the two alternatives in the Foothills area. The higher project cost was the Foothills at $418 million verses the $388 million for the Union Pacific, but then the project match was actually lower for the Foothills than for the Union Pacific. He confirmed that the shared project match would be zero for the Union Pacific and $13 million for the Foothills. Mr. Williams clarified for Councilor Olson that the shared project costs in Items 10 and 11 were included in the supplemental material. He added that the City had to consider mitigating the risks associated with shared projects. If a plan was developed, an LPA selected, and they moved City Council Regular Meeting Minutes Page 17 of 19 July 13, 2010 through the whole process, but those shared projects did not happen for whatever reason, the streetcar project could be at risk. The City would have to do a supplemental EIS or arrange for some alternative contingency plans through the DEIS and FEIS to prevent having to do a supplemental, and risk having a higher match associated with the project. In Item 13, Mr. Siegel narrowed the 96 combination examples down to nine, although no specific reason existed to select one those nine combinations. It was reasonable to mix and match any of the combinations for each of the five design or phasing options noted on the left side. One way staff was looking to address this was to have the CACs go out for a month or so and allow residents to consider and determine the best design options slated for their neighborhood area, both in Lake Oswego and in Portland. Staff would then try to mix and match the pieces to where the CAC would be comfortable with that preferred alternative. Staff could then start looking at the costs associated with that alternative, how the maps would line up, and get a firmer idea of where the other sharing projects would fit. The Project Specific Match showed a decent range of $45 million to $66 million (Item 6) which included the Foothills. The $65 million estimate would include the Union Pacific railroad. As the options are narrowed down to one locally LPA, it would be interesting to see how the numbers play out. The Enhanced Bus was much less complex with an estimated 2010 capital cost of $37.8 million, and year of expenditure cost of $51 million. The local match was reported to be in the $10 million to $20 million range, depending upon how it played out. Councilor Olson asked why as a percentage the local match would be the same. Mr. Williams replied that was a good question, since they were not dealing with Willamette Shore Line right-of- way. He reminded the figures were only for construction costs. He was not sure what the federal split would be for the Enhanced Bus. It had been mentioned that the Enhanced Bus would fall under a small Starts Project rather than a New Starts Project. He did not have the criteria for that program. Councilor Olson noted the lack of discussion about the Enhanced Bus earlier at the Steering Committee meeting, and even at CAC meetings. Mr. Obletz had talked about it with her, which was helpful. The Metro representative had said the DEIS was supposed to have equal analysis and publication of each alternative, yet Council had not received much information on the Enhanced Bus option. She asked if City Council could receive more information about that option. Mr. Williams answered yes, to the extent that more information was available. The Enhanced Bus Alternative was pretty straightforward because it involved typical bus operations and was already on Hwy 43. The number of stops and stop locations were shown on the map in the newsletter provided to Council. The 300 space Park & Ride was much the same at the Albertson's site as for the streetcar option. Mayor Hoffman believed when the DEIS was presented to Council, they would have the opportunity to further review and discuss the Enhanced Bus. He had not seen much information on it either, and agreed Council needed to know more about it. Councilor Olson stated other than the Park & Ride, she wanted to know what construction costs would be associated with the Enhanced Bus. Mr. Williams said there would be minimal costs, just the Park & Ride. Councilor Hennagin stated at one point, the number of turn out lanes at intersections to pick up passengers, and taking priority at signals ahead of cars was discussed. Engineers had determined that many of the intersection pull out lanes were not feasible, which reduced the construction cost. Mr. Williams explained that had to do with the amount and size of the queues at those traffic signals, and widening the road to put in the extra lanes, which got back to the issue of why not just widen Hwy 43. Councilor Olson asked who would be in charge of operating the streetcar. Mr. Williams replied there had been discussions about getting TriMet involved with streetcar operation. The discussion City Council Regular Meeting Minutes Page 18 of 19 July 13, 2010 about operating costs and how the Streetcar and Enhanced Bus Alternatives compare was on the next agenda for the Steering Committee. Council Hennagin asked if a streetcar on this line would follow the streetcar line up to NW 23rd and Lovejoy. Mr. Williams said it would tie right into that line. Once the loop was installed over to the east side there would be options. Lake Oswego would want to partner with the Portland Streetcar Inc. Board as well as with the City of Portland and TriMet to determine the most logical routing for the streetcars as they utilize the loop through northwest and downtown Portland and Lake Oswego. The City of Portland was interested in the project not only for connecting to Lake Oswego, but also for the development potential along Macadam Ave and across the Sellwood Bridge to Sellwood. If that extension occurred, some interesting ways to route streetcars around Portland could be considered. Councilor Hennagin said he noticed the tracks were already installed on MLK, and asked when the east side loop would open. Mr. Williams said he was not sure. Mayor Hoffman believed it was scheduled for 2012 or 2013. He asked where the $50 million to $60 million of local match would come from. Mr. Williams replied the City would be looking at all of the partners, the regional pot of funds available for construction, perhaps State lottery funds due to the economic development potential along the corridor and in Foothills. Locally, those benefiting from the streetcar should pay for it. Urban Renewal funds, TIF, LID funds, and System Development Charges (SDCs), could be considered but that was a conversation for City Council. Financing discussions would occur as design options were narrowed and depending on how the projects overlap. Councilor Jordan noted discussions also continue about local transportation fees, like vehicle registration fees, to help fund some of the projects, including the Sellwood Bridge. If there was the interchange with the Sellwood Bridge and Streetcar line or Enhanced Bus, that would be another place down the road. Mayor Hoffman added Metro was considering a regional infrastructure funding mechanism. He said that he spoke with Mr. Gustafson who believed Lake Oswego's project would be considered a rapid streetcar and that it would meet the New Starts Program criteria. FTA was rewriting the rules to stress the land use components, putting less emphasis on travel time and more on sustainability and livability. He noted cities that Mr. Gustafson had stated were already in the New Starts Program. Mr. Williams believed those were TIGER Grants and not part of the New Starts Program. Councilor Jordan stated they would not be part of the New Starts program as no funds were available yet. Mayor Hoffman corrected that they were the cities that already had streetcar programs. Mayor Hoffman concluded that Council would be addressing the transit issue again in September. 4. ADJOURNMENT Mayor Hoffman adjourned the meeting at 9:30 p.m. Respectfully submitted, Robyn Christie City Recorder APPROVED BY THE CITY COUNCIL: ON Jack D. Hoffman. Mavor City Council Regular Meeting Minutes Page 19 of 19 July 13, 2010 CITY COUNCIL REGULAR MEETING MINUTES September 7, 2010 Council President Roger Hennagin called the regular City Council meeting to order at 6:36 p.m. on September 7, 2010, in the City Council Chambers, 380 A Avenue. Present: Council President Hennagin, Councilors Olson, Moncrieff, Tierney, Jordan, and Vizzini. Mayor Hoffman was excused. Staff Present: Alex McIntyre, City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Christine Kirk, Public Affairs Manager; Joel Komarek, LOIS Project Director; Jane Heisler, LOIS Communications Director; Ursula Euler, Finance Director; Denny Egner, Long Range Planning Manager 3. PRESENTATIONS 3.1 Distinguished Service Awards: Brent Ahrend, Transportation Advisory Board Council President Hennagin presented a Distinguished Service Award to Brent Ahrend and thanked him for his service on the Transportation Advisory Board as Vice Chair. He mentioned Mr. Ahrend's knowledge of traffic engineering as a traffic engineer with Group MacKenzie. Mr. Ahrend indicated to Council President Hennagin that he was born and raised in Lake Oswego. Ron Gronowski, Sustainability Advisory Board Council President Hennagin presented a Distinguished Service Award to Ron Gronowski and thanked him for his service as an inaugural member of the Sustainability Advisory Board. He mentioned that Mr. Gronowski's interest in the practice of sustainable design. Mr. Gronowski indicated that to Council President Hennagin that he has lived in Lake Oswego for 23 years, and was transferring to the Foothills Citizen Advisory Committee. Nancy Gronowski, Natural Resources Advisory Board Council President Hennagin presented a Distinguished Service Award to Nancy Gronowski and thanked her for her service on the Natural Resources Advisory Board. He mentioned that she was a landscape architect and a planner for the Portland Parks Bureau, as well as a volunteer on the Second Look Task Force. He noted that she was transferring to the Parks & Recreation Advisory Board. Morgan Holen, Natural Resources Advisory Board Council President Hennagin presented a Distinguished Service Award to Morgan Holen and thanked her for her service on the Natural Resources Advisory Board. He mentioned that she was a forester who also volunteered on the Century Tree project. Ms. Holen confirmed that she worked part-time for the City as an Assistant Natural Resources Planner. She indicated to Council President Hennagin that she was a fourth generation forester. Adrianne Brockman, Planning Commission Council President Hennagin presented a Distinguished Service Award to Adrianne Brockman and thanked her for her service on the Planning Commission. He noted that she was resigning from the Commission. Ms. Brockman indicated to Council President Hennagin that this was her second term of service on the Planning Commission, having served her first term from 1981-1990. City Council Regular Meeting Minutes Page 1 of 16 September 7, 2010 She mentioned getting the infill code amendments to the Council as an accomplishment. She said that she was a lawyer with a master's in planning. She expressed her appreciation for the opportunity to serve her community. • Philip L. Stewart, Planning Commission Council President Hennagin presented a Distinguished Service Award to Philip Stewart and thanked him for his service on the Planning Commission. He mentioned that he was resigning from the Commission. He noted that Mr. Stewart served as Commission Chair and worked to make the development code more user-friendly. Mr. Stewart indicated to Council President Hennagin that he served on the Commission for two and a half years. He mentioned the infill amendments to the Code, beginning Periodic Review, and working with the Sensitive Lands Ordinance as accomplishments. • Robert Galante, Redevelopment Director Council President Hennagin presented a Distinguished Service Award to Bob Galante and thanked him for his years of service with the City. Mr. Galante recalled that he had worked with Ms. Brockman and Ms. Gronowski early in his career at the City. He reviewed his tenure at the City, starting as a Development Review Planner, then as a Senior Planner and Planning Director before his appointment as Redevelopment Director. He described the City staff as his extended family. He commented that he has enjoyed working on the many downtown redevelopment and other City projects over the years. Council President Hennagin mentioned that Mr. Galante was involved in the planning for Millennium Plaza Park, the Headlee Walkway, Lakeview Village, Foothills Park, the Kincaid Curlicue Park, and the A Avenue, State Street, First Street and Evergreen, and Leonard Street improvements. He commented that the City would miss his expertise and experience, and wished him luck in his retirement. He led the room in a round of applause. 3.2 Federal Legislative Update Ms. Kirk reported on the federal legislative efforts undertaken by Capital Edge on behalf of the City since the last update (pp. 1-2). She mentioned Capital Edge helping the City make strategic investments of time and gain access to the Congressional delegation. She described the City staff and Capital Edge as working together as a team. She noted the number of issues revolving around water, such as questions from the Oregon Water Utilities Council and assistance with the federal permitting process for the Lake Oswego/Tigard Water Partnership. Chris Giglio, Capital Edge, attended by Skype from Washington, D.C. He noted that Congress was currently in its summer recess, and not expected back until next week. Following the October 8 scheduled end of the next session, Congress would not reconvene until after the November elections for a lame duck session. He mentioned the Energy Efficiency and Conservation block grants and the formula grants to states for recreation and conservation activities (in the Energy bill) and an extension of the bond provisions in the 2009 stimulus package (Build America Bonds) as items anticipated for Congressional debate that were of interest to Lake Oswego. He mentioned the expectation of much debate regarding the FY 2011 budget. He observed that deficit reduction has been a major topic of discussion in Congress. Consequently, the budget hawks were eyeing domestic discretionary funding for cuts in FY 2011. Unfortunately, many programs that could assist local governments fell under domestic discretionary funding and might not see much growth. He reported that Representative Schrader and Senators Wyden and Merkley requested the respective Appropriations Committees to consider the two projects that Capital Edge helped the City officials identify earlier this year for `earmarking' in the FY 2011 budget: the Foothills planning effort and wastewater treatment projects. He explained that these projects had significant local City Council Regular Meeting Minutes Page 2 of 16 September 7, 2010 support and contributions, they were projects that federal money could complete, and they met the program eligibility requirements, which made them attractive to Congress. He described the Congressional delegation requesting both projects as showing significant progress in educating the Congressional delegation on Lake Oswego's needs. However, due to the deficit and anticipated budget cuts, he did not think it likely that Congress would fund the projects in FY2011. He pointed out that sometimes getting funding for projects was a multi-year process. He mentioned the outside chance of Congress including funding for the wastewater projects in the FY2011 budget for the EPA. He mentioned other projects they continued to work on behalf of the City, such as potential federal grant opportunities, discouraging federal intrusion into local matters, and public safety issues. He reported that the City submitted an application to the Tiger 2 grant program run by the Department of Transportation, which was a transportation, land use, and sustainability initiative. He commented that, although the City had a strong application, even if it failed, they hoped submitting it would bear fruit in future proposals by demonstrating the City's commitment to combining these three elements. He reported that the City's early application to a program in the new health care bill about reimbursing local governments for up to 80% of health care costs related to early retirees (or $90,000) has been approved. He indicated to Council President Hennagin that it was a $5 billion program conducted on a first come, first served basis. He clarified that the program intent was to encourage local governments to continue to provide benefits. He acknowledged that an unintended consequence would be to open up employment opportunities for non -retirees. Mr. Giglio indicated to Councilor Vizzini that specific program in the EPA funding stream to which the City made application was the State and Tribal Assistance Grants program (STAG). He explained that this was an earmark for local wastewater treatment facility upgrades. The City made its application for the Foothills planning effort to a $150 million joint program from HUD, DOT, and EPA seeking to combine land use, sustainability, and transportation. He reiterated that they did not expect to see increased funding to these programs due to the deficit concerns. He indicated to Councilor Vizzini that he saw prospects for funding through EPA for the City's anticipated watershed planning work, as watershed planning was a hot topic at conferences and on the EPA's radar screen. He commented that, while there was not significant programmatic funding yet, his impression was that the US Army Corps of Engineers and the Department of the Interior wanted to work in this area in the future. Mr. Giglio left the meeting. Mr. McIntyre indicated to Councilor Olson that he had not intended to bring back the Capital Edge contract renewal to the Council for discussion, as its renewal was under his authority. However, if the Council wished to discuss it, he would bring it back. Councilor Olson recalled a Council conversation about discussing the results of this work after one year to see if the Council agreed to continue it. Mr. McIntyre said that his recollection was that the Council decided that one year was an insufficient length of time to evaluate adequately the success of this program; it would need two to three years to show success or lack of success. He recalled that he had explicitly told the Council that the success of this legislative effort was not in bringing the money home, but rather in influencing decision makers in Washington D.C., and getting Lake Oswego on the radar screen. Councilor Tierney commented that he did measure success by bringing home the money as an investment. He concurred that the budget discussions did conclude that a one-year time frame was too short to assess this work. He advocated for continuing the contract for another year. Council President Hennagin indicated that he also recalled the conclusion that they would take two to three years to determine whether this program was worthwhile or not. City Council Regular Meeting Minutes Page 3 of 16 September 7, 2010 3.3 Water Partnership Update Mr. Komarek reported that the team was working on project definition and assessing the conditions of the existing facilities in order to quantify and characterize the challenges they would be facing during construction. He mentioned the tribal burial grounds near the intake and raw water pipeline. He indicated that both Lake Oswego and Tigard, as joint applicants for an extension, and the opponents filed exceptions to the administrative law judge ruling in August. He explained that the participants felt that the ruling granted some authority to the Oregon Department of Fish & Wildlife that was not part of the original conditions. He noted that the Director had no time limit on issuing his final order, but once he did, the parties had 60 days to appeal the final order directly to the appellate court. He mentioned the six distinct projects identified through project definition: the Clackamas River intake facility, 14,000 feet of raw water pipeline crossing the Willamette, connecting that pipeline to the treatment plant in West Linn, 35,000 feet of treated water to the Waluga Reservoir, the Tigard connection to the Waluga Reservoir, and Tigard's distribution system. He reported that their assessment of the existing pipelines found 50,000 plus feet of pipeline with no quantifiable leakage and a better than expected condition. He mentioned the consensus recommendation by the expert panel and the Citizen's Sounding Board to use the conventional water treatment method plus ozone. He indicated that they would discuss these issues with the Oversight Committee and the Council. He commented that there was an interested group of neighbors of the Waluga Reservoir wanting to have input into the facility design. Ms. Heisler discussed their good neighbor outreach efforts to engage all the facility neighbors, particularly those neighbors who would experience the most impacts during construction. She mentioned the Robinwood Neighborhood and the Maple Grove Plat property owners in West Linn where the treatment plant was located, and the Waluga Reservoir neighbors. She explained that the City had to get 75% approval from the Maple Grove Plat property owners to use the properties to the south of the treatment plant for any type of water -related facility. The team was sounding them out about an underground clear well and a small pump station. She noted that the project proposed a 3.5 million gallon reservoir at the existing 1 million gallon Waluga Reservoir site. Ms. Heisler indicated to Council President Hennagin that about a dozen property owners out of the 85 property owners in the Plat attended the City's ice cream social. She discussed the joint pilot program (Treatment Plant, Engineering, and Water Conservation Specialist) in August and September to encourage people to conserve water. She described it as a way to raise awareness and encourage people to save money and water as a preliminary to a fuller program next year. She indicated that the team would meet with the City's Water Conservation Specialist at the end of September to see if it had an impact. Mr. Komarek reviewed the meetings scheduled through the end of the year, including monthly Oversight Committee meetings to discuss the progress towards a joint Council decision on the CIP. He mentioned the concurrent Lake Oswego rate update work to see how well the tiered water pricing structure was working. He presented the website address and phone numbers, encouraging residents to log on to the website, which had up-to-date information about the partnership, thanks to Ms. Heisler and her team's work. Councilor Vizzini asked if the City has sufficient meter information to determine whether there was an effect on Beat the Peak this summer. Ms. Heisler observed that that was tied to outside temperatures, yet she doubted that they were pulling much water out of the river. City Council Regular Meeting Minutes Page 4 of 16 September 7, 2010 Mr. Komarek described to Councilor Olson the appeals process following the Director's issuance of the final order. He mentioned the current thinking that the Director would issue that order within a few weeks to three months. He speculated that it would take a year for the appeal to go through the courts. Council President Hennagin commented that how long it would take was impossible to predict. He conjectured that it could take two years. Councilor Tierney asked Mr. Komarek to summarize the water rights decision because it was a lynch pin for the whole process. If the City did not get the water rights, then the project stopped, yet they were proceeding as if they would get it. Mr. Komarek explained that this had to do with the 2005 House bill that turned the municipal water rights world upside down. Instead of the continual extension of water rights in recognition of cities and jurisdictions growing into their water rights over time, the State decided to allow each jurisdiction a 20 -year block of time. During those 20 years, a jurisdiction had to show that it was managing the existing water rights to the best of its ability, and that the development of the undeveloped rights would not result in harm to endangered species. Mr. Komarek said that Lake Oswego initially applied for water rights extension in 2000 and was halfway through the process when this new legislation came through and put everything on hold. He recounted how two years ago Water Watch and the Southfork Water Board immediately contested the Department's proposed final order approving Lake Oswego's water rights extension. Lake Oswego's efforts to reach an out-of-court settlement were unsuccessful, and eventually an administrative law judge issued a ruling upholding the proposed final order. He concurred that securing the extension of these water rights was extremely important, not only to the Partnership, but also to Lake Oswego alone for growth and economic development. 3.4 LOIS Update Mr. Komarek concurred with Council President Hennagin that drawing down the lake has run into Mother Nature trying to fill it back up again. He reported that the contractors have finished the West Bay CPPP (cured in place plastic pipe) work and anticipated finishing similar work in Lakewood Bay and Foothills early next week. He indicated that they did get the Country Club irrigation system in place and operational before lake draw down. He discussed several important elements in the project. He mentioned the debris sump installation to collect and trap debris upstream of the lake to prevent debris entering the buoyant pipe and causing difficulties. He spoke of the bypass pumping necessary in working with a live sewer system. He described the work done on the Bryant and Foothills pump stations. He mentioned the City's coordination work with the Lake Corp, not only on the LOIS project, but also on the Corporation's desire to dredge during the lake down phase in order to make some modifications to their dam for flood control benefits. He referenced Mr. McIntyre's memo sent out last week about the City receiving the highest rating by both bond rating agencies for its full faith and credit revenue bonds. Ms. Heisler indicated that the team has been focusing its recent communication efforts on draw down. She noted the Lake Corporation's efforts to advertise its intent to dredge, which meant that owners had to get their boats out of the water. She mentioned the intense media and public interest in the lake draw down. She mentioned the need to update constantly the information on the website as the bypass pumping system would move around the lake with the work on different manholes. She indicated that staff met with three easement groups to discuss the upcoming work near those easements. She noted that the CIPP work in Half Moon Bay, the northeast Arm, and the remainder of Lakewood Bay would require a six-week closure of the North Shore Bridge. She said that the team would communicate with emergency services regarding the one day when emergency vehicles will not be able to travel over the bridge. City Council Regular Meeting Minutes Page 5 of 16 September 7, 2010 Mr. Komarek indicated that the project was on track with its schedule with some projects completed ahead of schedule. He commented that he expected the Lake Down Phase to catch up, weather permitting. He reported beginning initial discussions with the Portland Bureau of Environmental Services (BES) about partnering on the Foothills sewer seismic upgrade. He reported that the project costs were steadily decreasing over time, with the latest project total estimate coming in at $90 million. COUNCIL QUESTIONS Councilor Jordan thanked Mr. Komarek for the fantastic job that he and his team have done with keeping the LOIS project moving and keeping all those impacted by the work informed and prepared. She commended Mr. Komarek and Ms. Heisler for their skills in helping this project to proceed smoothly. She commented that she thought the same would happen with the water project, which made her glad that the City had talented people on staff to do this work. Council President Hennagin concurred with Councilor Jordan regarding how well this project has gone. He asked Mr. Komarek to address the confusion among the public regarding the need for a larger diameter sewer through the lake to handle increased present and future sewer flow and yet the City was not enlarging the pipe through Lakewood Bay but only re -lining it. Mr. Komarek explained that the modeling showed that the West Bay pipeline had adequate hydraulic capacity to pass the designed flows based on certain assumptions. He indicated that an important assumption was that the City would continue to address the infiltration and inflow issues in the smaller diameter collection systems upstream. He emphasized that if the City allowed this to go unattended, then it would see overflows into the lake again. He indicated to Council President Hennagin that the pipe in Lakewood Bay had the same 35 inch inside diameter as the pipe running through the main lake; its size was adequate to handle both storm and domestic flows. He mentioned their determination that there was little seismic risk to the pipe, as it was buried. He explained that re -lining the pipe would extend the useful life and give the pipe more structure. 4. CONSENT AGENDA Councilor Jordan moved the Consent Agenda. Councilor Moncrieff seconded the motion. A voice vote was taken, and the motionap ssed with Council President Hennagin, Councilors Olson, Moncrieff, Tierney, Jordan, and Vizzini voting "aye." [6-0] 4.1 RESOLUTIONS 4.1.1 Resolution 10-49, making appointments to the 50+ Advisory Board Action: Adopt Resolution 10-49, appointing Gail Zimmerman, Debbie Harris and Marcia Robertson to the 50+ Advisory Board, Gale Gipson as alternate 4.1.2 Resolution 10-50, making appointments to the Planning Commission Action: Adopt Resolution 10-50, re -appointing Russell Jones to the Planning Commission and continuing to recruit for additional candidates 4.1.3 Resolution 10 - 55, authorizing an intergovernmental agreement to accept a grant for the Juvenile Youth Diversion Program Action: Adopt Resolution 10-55 4.1.4 Resolution 10 - 56, appointing an additional member to the Foothills Oversight Committee Action: Adopt Resolution 10-56 4.1.5 Resolution 10-57, regarding oversight of Lake Oswego School District's New Sustainability Fund City Council Regular Meeting Minutes Page 6 of 16 September 7, 2010 Action: Adopt Resolution 10-57 4.2 APPROVAL OF MINUTES 4.2.1 March 30, 2010, special meeting 4.2.2 April 13, 2010, special meeting 4.2.3 April 13, 2010, regular meeting 4.2.4 April 20, 2010, regular meeting 4.2.5 May 17, 2010, special meeting Action: Approve minutes as written END CONSENT AGENDA 5. ITEMS REMOVED FROM THE CONSENT AGENDA 6. CITIZEN COMMENT • Jerry Ghiglieri, 667 McVey She asked the Council to waive the fee for the use of the West End Building for the December 4 ceremony honoring the 82nd Brigade, Army National Guard. She mentioned that many of these heroic men and women in the Guard served more than two tours, and others have made the ultimate sacrifice. Mr. McIntyre indicated to Council President Hennagin that waiving the fee was within his discretion, and that he would do so. Ms. Ghiglieri thanked the Council and the City Manager. Councilor Jordan observed that this was consistent with the community covenant that the City signed with Clackamas County to support all of their military personnel and their families. She thanked Ms. Ghiglieri for bringing this request forward. • Dr. Bill Korach, Lake Oswego School Superintendent On behalf of the School Board, the children and the families, he thanked the Council for its serious consideration of helping the School District financially. He indicated that this financial support made a big difference to the kids, as $75,000 meant one teacher and $150,000 two teachers. He thanked the City staff for their help in getting the Lake Oswego High School building open in time for the students' arrival. He mentioned that Mr. McIntyre has worked closely with him through the year, and the District felt good about its partnership with the City. 7. REPORTS 7.1 One -Time Financial Support to the Lake Oswego School District Mr. McIntyre presented his recommendation to fund for one year on a one-time grant basis support to the School District for the continuation of its aquatics and orchestra programs. He noted that both these programs were consistent with the City's values regarding cultural and youth activities. He commented that, while at any other time he might be more rigorous in defending the Measure 5 line between cities and schools, the Council did put undesignated funds into the contingency funds in anticipation of some future event. He described this as one future event of $150,000 for Council consideration. He indicated to Council President Hennagin that the Council put $256,000 into contingency. Mr. Powell indicated to Council President Hennagin that there could be an issue with the Measure 5 restrictions, depending on where the funds came from. He noted that staff presented this request as a use of franchise fees. He explained that that was a defensible use, as there were no strings attached to those funds as there were to property tax funds. City Council Regular Meeting Minutes Page 7 of 16 September 7, 2010 Councilor Moncrieff observed that the Lake Oswego schools differentiated Lake Oswego from the surrounding communities. She described this as an appropriate expenditure of funds, as the schools were a community value. Councilor Olson cited an Oregonian article discussing other school districts in the state eliminating music programs. She commented that music programs were something that distinguished Oregon schools. She remarked that strong schools were a prime reason that people moved to this community and a major factor in maintaining high property values. She emphasized that this was a one-time grant. She spoke to the City and the State finding a permanent fix for the problems faced by the School District. Councilor Jordan indicated that she supported this request. She observed that Lake Oswego had one of the strongest school systems in the state; supporting the schools was part of the fabric of this community. She concurred with Councilor Olson that they needed to address school financing as a statewide issue, since education fueled the State's economic engine. She suggested that Ms. Kirk help create a message to send to the legislature about the importance of schools. Councilor Tierney stated that he would support the resolution. He asked the City Manager to incorporate into the details of the agreement a specific linkage between the orchestra and the community, such as holding an orchestra event at a City venue or having a performance open to the community. Councilor Vizzini concurred with the Councilor comments that this issue went beyond the community. He argued that all communities in the state should be advocating for a permanent solution to school funding in the upcoming legislative cycle. He agreed that this was a one-time grant. He mentioned that he saw the Lake Oswego High School fields filled with kids and their parents every evening as he rode his bike home. He held that the linkage between the school students and the new branding of the community was manifest. He described the students as representing the community when they attended athletic events elsewhere in the state. He commented that he saw the students as part of the community's economic development strategy. He noted the action item on the League of Oregon Cities' legislative agenda to allow communities to vote to exceed the limits of Measures 5 and 50. He argued that the time has come to return to the Lake Oswego citizens having more direct control over the school budget. Council President Hennagin said that he also supported this allocation of contingency funds. He remarked that it was a sad commentary on the State tax system and allocation of funds that the school districts had to raise funds through foundations and charitable giving in order to provide the desired level of education. He agreed that the legislature needed to find a solution. He commented that, while he did not like these "Band-aids," on occasion they did need to use them. Councilor Olson moved to adopt Resolution 10-59, authorizing a resolution transfer of $150,000 from the City's General Fund Contingency to the non -departmental budget to provide one time funding for the Lake Oswego School District. Councilor Jordan seconded the motion. A voice vote was taken, and the motionap ssed with Council President Hennagin, Councilors Olson, Moncrieff, Tierney, Jordan, and Vizzini voting "aye." [6-0] 7.2 LOIS Bond Issue #2 Mr. Komarek presented his request that the Council direct a bond issue in the amount of $35 million for the completion of the LOIS project. He noted the additional $5 million for an expanded scope of work to upsize a piece of the system. He explained that this piece could wait but if the City took advantage of the qualified contractors already working for it, the staff believed they could achieve some economies of scale. He mentioned staff's anticipation that the $5 million could also pay to address some other deficiencies in the small diameter waterfront sewers ringing the lake. City Council Regular Meeting Minutes Page 8 of 16 September 7, 2010 He directed the Council to Exhibit 2.8 in the handout (p.114, packet), a table that showed the future rate increases over four years required by a $110 million wastewater funding project, as identified in the December 2009 wastewater cost of service analysis. He mentioned the staff's anticipation of completing the project for around $90 million. He explained that the project was close to consuming all of the $60 million 2009 bond issue. He spoke of taking advantage of the good credit market climate, the low LOIS project costs, and the availability of qualified contractors for the additional work by issuing $35 million in bonds at this time. Mr. McIntyre commented that the City would have to do the additional work in a couple of years anyway. Staff just thought that it made sense to take advantage of the contractors already on the lake to do that work now. Council President Hennagin asked Mr. Komarek to explain how doing this work now resulted in saving substantial amounts of money. Mr. Komarek explained that the City needed to do re -line another 4,000 feet of the main Canal trunk sewer and replace and lower 100 existing sewer laterals serving properties abutting either side of the canal because of damage that occurred whenever the Lake Corporation dredged the canal. He explained that mobilization was a huge cost in any project, and with the specialized CIPP contractors already mobilized and on the lake with their equipment, the City saved that cost for this re -lining project in the future. He reiterated that the funds might potentially cover taking care of some additional small waterfront sewers ringing the lake. Mr. Komarek explained to Councilor Tierney that it was difficult to estimate how much this project would cost if done in a few years. He mentioned inflation and mobilization as a higher percentage of a smaller project's costs. He pointed out that the work would have to coincide with future drawdowns initiated by the Lake Corp; when and how far they would draw the lake down were unknowns. He indicated to Councilor Tierney that he would expect to see a $250,000 to $500,000 higher cost in the future over the cost of doing the project today. Mr. Komarek indicated to Councilor Vizzini that staff realized a 30% cost reduction over the engineer's estimate for the Lake Full Phase due to doing the work during an economic recession. He mentioned a 10% cost reduction during the Lake Down Phase. Councilor Vizzini commented that that proved the truth that one should build as much as possible during a recession because the pricing was good. He observed that having the workers in town was another economic benefit. Mr. Komarek said that the contractors expected to have 50 to 60 people on the lake down phase at any given time. Councilor Olson mentioned another cost savings of $100,000 in bond fees if they issued this $5 million in bonds separately. She noted the current very low bond rates also. Mr. Komarek spoke of other additional costs for design work and another bid process, as well as the question of whether these specialty contractors would be available when the City next needed them. Chip Pierce, Bond Consultant, confirmed Councilor Olson's estimate of $100,000 in savings by not doing a separate bond issue. He described taking advantage of these historically low bond yields as an economically sound approach. Councilor Moncrieff asked why staff did not recommend Scenario 3, an additional $10 million in bond issues to take care of the cleaning inspection and condition assessment of the sewer lines ringing the lake. Mr. Komarek explained that staff would not have the inspection work completed to assess the condition of the lines. He discussed his concern about the staffing capacity required to do that work, especially in light of the Lake Oswego/Tigard Partnership coming online. He spoke of finding the middle ground between what could be done and being sensitive to rate increases. Mr. McIntyre asked how soon did the City have to spend the funds, once the City received them. Mr. Pierce said that the rule was that the City had to have a reasonable expectation of spending 90% of the proceeds within three years. Mr. McIntyre commented that that changed things slightly for him. City Council Regular Meeting Minutes Page 9 of 16 September 7, 2010 Councilor Olson commented that if Mr. Komarek continued his stellar management of LOIS, then the City could have an additional $5 million in contingency to use for the additional work instead of issuing bonds. Councilor Jordan commented that Mr. Komarek has justified increasing the scope of work, as Council asked him to do last summer. She pointed out the decreased rate increases under this scenario from the original 2009 estimated rate increases (p.114). She observed that the City was decreasing the expense to the residents' pocketbooks over the next couple of years with regard to sewer rates and still doing more work on the sewer. Councilor Tierney asked Mr. Pierce to discuss the risks associated with the Build America Bond provisions. Mr. Pierce indicated that, while there were elements of the Build America Bond (BAB) program that were attractive and would achieve savings, there were also risks. He mentioned the risks involved with the IRS -required certifications by the underwriters. He discussed the loss of the 35% subsidy on the interest with re -funding the BABs in comparison to savings achieved when re- funding the traditional tax-exempt bonds. He explained that if the federal government decided that the City has not used federal money it has received for a given project appropriately, then it could withhold interest subsidies on un -related bonds. Mr. Pierce observed that BABs sounded terrific on their face but there were factors to consider before going with BABs. He said that they might end up issuing straight 25 -year tax-exempt bonds at a rate in the mid -3s. He commented that BABs might have a little lower rate but he was not certain they were worth the offset. He mentioned their intention to sell the bonds competitively, as a more economically efficient way for the City to sell them. Councilor Tierney indicated that he would not be disappointed if the City sold straight bonds. Ms. Euler referenced the earlier question about why staff did not recommend the $40 million bond scenario instead of the $35 million bond issue. She explained that, even with the lower customer rate increases, the City was still accumulating a fund balance that seemed adequate to take care of non -LOIS capital projects or any unforeseen major project. Council President Hennagin commented that he had no doubt that the savings realized in the long run from the various factors articulated by staff would be beneficial. Councilor Tierney moved to direct staff to sell $35 million in a combination of full faith and credit tax exempt obligations, Series 210A obligations, and full faith and credit taxable obligations, Series 210B obligations to pay cost of or to reimburse the City for payment of costs of capital improvements to the City's wastewater system, and to pay costs of issuance. Councilor Jordan seconded the motion. A voice vote was taken, and the motion passed with Council President Hennagin, Councilors Olson, Moncrieff, Tierney, Jordan, and Vizzini voting "aye." [6-0] Council President Hennagin recessed the meeting at 8:38 p.m. for a break. He reconvened the meeting at 8:46 p.m. 7.3 Boones Ferry Road Project Phase 2: Consultant Selection and Public Process Mr. Egner mentioned that staff would like to return to Council on September 21 with a resolution appointing an advisory committee and approving the project contract. He explained that Phase 2 was intended to provide a mechanism to make recommendations on the 22 refinements recommended by the consultant during the technical analysis of Phase 1, to pin down a specific right-of-way, and to conduct a public process. He reviewed the consultant selection process (pp. 118-119). He presented the staff recommendation to hire HNTB as the consultant (p.119). He indicated that staff was negotiating the contract that they anticipated presenting for approval at the Council September 21 meeting. He presented the staff recommendation for a seven -member Advisory Committee (pp. 119-120) comprised of four members from the old Lake Grove Village Center Task Force and three City Council Regular Meeting Minutes Page 10 of 16 September 7, 2010 members from the current Transportation Advisory Board (TAB). He commented that staff did not know at this point whether this project would simply implement the Village Center Plan or develop proposed amendments. Staff would take any amendments to the Planning Commission and the City Council, but implementing the concepts was solely a Council decision. He discussed the proposed schedule. He indicated that, if Council approved this approach, he would meet with TAB later this month and convene the first meeting of the Advisory Committee in October. He said that the goal was to have a six-month project ending in April 2011. He noted the key decision points listed in the schedule (p.120). Council President Hennagin commented that he had hoped that this would be the last step and not the next step because the property owners along Boones Ferry Road needed to know where the improvements would be before undertaking any redevelopment or property improvements. Mr. Egner stated that this project would provide some certainty about the location of the improvements but there were still unknowns. He mentioned that one unknown was how the City would pay for the project. He remarked that the Homebuilders Association has tied up a Metro construction excise tax grant in a lawsuit. Mr. Egner agreed with Council President Hennagin's hope that this project would not result in amendments to the Lake Grove Village Center Plan, but he noted that there were a few of the 22 refinements which, if recommended by the Advisory Committee, might require amendments. Councilor Olson commented that she was glad to see this moving along within a six months time frame. She referenced Mr. Egner's report indicating that the Lake Grove Village Plan Advisory Committee had rejected some of the 22 refinements later identified by the Phase 1 consultant. She asked if the new Advisory Committee would actually consider those items originally rejected. Mr. Egner noted that the wording was `they were considered and rejected.' He gave an example of putting a full service traffic signal in for all four legs of the Lanewood intersection. He recalled that the Lake Grove Plan Advisory Committee had rejected extending Hallmark as one of the intersection legs because of concerns about traffic going past the school. He indicated that, since the Committee never decided whether or not that signal served the redevelopment of the furniture store site, he believed that the question was left open regarding connecting to the furniture store parking lot. He mentioned the Madrona intersection as another traffic signal discussion. Councilor Olson referenced the fourth cost cutting strategy mentioned in Mr. Egner's report, using the accurate, high-resolution aerial photos instead of detailed surveys. She asked if the City would need those detailed surveys in the future. Mr. Egner explained that these photos were as accurate as the staff could get without going to construction level drawings. He indicated that they would only do spot surveys for the construction level drawings, and not a full survey of the roadway. Councilor Jordan mentioned that part of the issue with the 22 refinements was that some of them anticipated growth using models with estimates of future populations. She pointed out that until they resolved the issue at the railroad crossing on Bryant Road, nothing they did on Boones Ferry would alleviate the traffic stacking up. She described the intent of the plan as making a more pedestrian friendly, accessible corridor in the next five to ten years and not trying to implement the 35 -year plan right now. She agreed that the Boones Ferry Road property owners waiting to do projects needed to know the exact location of the right-of-way and the pedestrian facilities. She observed that the location of the pedestrian crossings would help identify the locations of future driveway consolidations. Councilor Vizzini thanked Mr. Egner for taking some of his comments about the Advisory Committee into consideration. He said that he was pleased with the Committee's composition. He mentioned his concerns about the scope of work. He discussed the need to make the aspirational Village Center Plan real on the ground through the access management planning process recommended by Planning Commissioner Glisson. City Council Regular Meeting Minutes Page 11 of 16 September 7, 2010 He stated that his concern was that the plan was written with the intent of completing the access management plan and the economic analysis in order to make decisions about the engineering plans, and of having a process to get community buy -in on the refinements. He stated his personal opinion that the program needed more money in order to complete the economic analysis promised to the community, in addition to the resources budgeted for the scope of work proposed for Phase 2. Mr. Egner indicated that the project team included an economic consultant to help with the economic analysis. He said that the scope of work would be in the Council's September 21 packet. Councilor Vizzini commented that he saw a significant amount of work to be done in this phase to get to two things: certainty for the property owners regarding the location of the road, and sustaining a community consensus about what the corridor would look like and how it would work. He emphasized that his greatest concern was that, at the end of Phase 2, the City had a consensus about what the corridor would look like and how it impacted the abutting properties. Councilor Vizzini concurred with Mr. Egner that only about five of the 22 refinements identified were controversial, but he observed that they were significant issues. Councilor Tierney asked for clarification on Mr. Egner's statement on p. 118 stating that doing an economic impact analysis separate from the technical engineering work required adding $10,000 to $15,000 dollars to the cost. He mentioned that he would support adding money to accomplish what Councilor Vizzini talked about. Mr. Egner clarified that the contract amount coming to Council in two weeks would be for $140,000 to $145,000, which included the additional money. He said that the original amount mentioned to the consultants had been $130,000. He explained that staff had asked the consultants for creative ideas on how to pare the costs down. Councilor Jordan noted that the recommended consultant team included the economic piece in their proposal, which none of the other consultants did. Council President Hennagin commented that he thought that the public would be interested to know that staff was taking steps to maintain cost controls, as described in the written staff report. He mentioned that he too had thought that combining TAB members and former Lake Grove Advisory Committee members would be an appropriate composition for the Advisory Committee. Councilor Olson concurred with Councilor Vizzini about the importance of this project and the economic study. She questioned quibbling about $15,000 for this project when the Council was investing over $1 million in Foothills. She commented that she hoped that the Council would move ahead with the financing strategy, even without the Metro grant, because the Lake Grove people have been waiting a long time for this, and the City needed to get it done. Councilor Olson questioned including on the Advisory Committee an individual who, due to the nature of his work, regularly appeared before the Planning Commission and City Council with projects. Councilor Jordan explained that they had been trying to get a balance of the people with the most involvement on the Lake Grove Village Plan and knowledge from both sides of the issue. She commented that the City has invested over $900,000 in the Lake Grove planning process and the property owners still had no idea of where the line would be drawn. She agreed that they needed to keep moving on this project. She held that the recommended team would do a good job. Mr. Egner indicated to Council President Hennagin that he had not been looking for input from the Council on the individual Committee members, but rather for a nod of heads to come back at the September 21 meeting with the contract and a list of Committee members. Councilor Vizzini summarized the Council's comments as supportive of adding sufficient money to get the entire body of work done. He reiterated that the two end products that represented success to him were a reasonable and accurate description of the corridor for property owners City Council Regular Meeting Minutes Page 12 of 16 September 7, 2010 (and which honored the goals and policies of the plan) and consensus from the broader Lake Oswego community that was investing in this plan. Councilor Tierney concurred with Councilor Vizzini. He commented that he did not think that they had enough public relations and energy behind this project to keep it moving forward, as the energy has dissipated over time. He indicated that he would support the additional money for a scope of work to move the project to the next step. 7.4 Financial Review as of June 30, 2010 Council President Hennagin invited the Budget Committee members present to come forward to the table: Jeff Gudman, Ron Smith, and Kent Studebaker. Ms. Euler indicated that staff had only preliminary numbers for this review because the audit was still underway. They would have final numbers after the auditors issued their report. She noted the sources of the $.9 million that the General Fund was returning to its fund balance and the importance of evaluating surpluses and deficiencies in balancing a budget (pp. 125-126). She discussed the City's revenue from property taxes, both current and delinquent (p.126). She noted that the budget revenues overall were $500,000 below the budget projection due to reduced revenues in other City fees. She indicated that reduced expenditures in personal services and materials and services readily balanced that shortfall. She pointed out that staff had used very conservative numbers in the budget for the franchise fees but the silver lining was that PGE, NW Natural Gas, and Comcast were all reporting increases in retail sales, which meant more franchise fee revenue. She mentioned the motor vehicle fees and street maintenance fee revenues (p.127). She commented that she was thankful that the budget had had a bit of a cushion in it, given the vacation and other accruals that they needed to take into account at the end of the year. Ms. Euler confirmed to Councilor Tierney that the transfers from other funds to the general fund to pay for administrative services charged to those funds by the general fund comprised a large part of the other financing sources. She indicated that the only other financing source she could think of would be bonds. She agreed with the Councilor that there should be a balance of transfers citywide. Councilor Tierney asked how they got so far off on debt service (57%). Ms. Euler explained that the line of credit interest had been budgeted high at 4%. However, the most recent renewal came in at under 2%. Councilor Tierney asked why the capital outlays across all funds (excluding LOIS and the water project) were substantially below budget. He wondered whether cheaper projects or not done projects were the reason. Ms. Euler indicated that there was a variety of reasons, including delayed projects and project funding coming in different from anticipated. She said that she could e-mail Councilor Tierney a detailed list of the projects that might have caused the savings. She gave an example of a project for which they budgeted a capital outlay of $980,000 in federal stimulus funds as cash, only to have the $900,000 come in as in kind. Councilor Tierney expressed his concern that the Council has budgeted for infrastructure capital improvements for two years and the improvements were not getting done. He noted that taking the $900,000 out still left $200,000, on which he would like some detail. Councilor Vizzini suggested adding to the report a separate capital project summary giving the status of these projects. Councilor Olson concurred that the Council needed a Capital Improvement Plan financial report. Ms. Euler indicated that she and her staff were working on the report, per Council's earlier request, and testing it internally to make sure that it had the right numbers and would be useful to the Council. Councilor Olson pointed out that Portland billed the City less on wastewater because the flow volumes to the wastewater treatment plant were significantly lower than in previous years (p.126). City Council Regular Meeting Minutes Page 13 of 16 September 7, 2010 Ms. Euler indicated that she would have to get the answer from other staff members on why that was. She pointed out that her wording specified `reported,' and not `actual' flows. Councilor Olson asked what the revenue line item in both the water fund and the wastewater fund (p. 135, 136) called `licenses and fees' was, given that it had no budget number. Ms. Euler explained that staff sometimes worked for other utilities, and this represented those charges. She indicated that it was similar to transfers, but transfers were usually based on estimates and allocations, while these items represented actual hours worked on a project. Councilor Olson commented that, while she liked the report format very much, she would appreciate a cover sheet that provided citywide totals. Ms. Euler indicated that staff has begun creating those summary reports for the new year. Councilor Jordan argued that the Council needed to understand why the reported figures for capital projects were different from the budgeted numbers. Councilor Tierney concurred that the why was important. Councilor Tierney discussed the question of whether it was good to have a budget surplus at the end of the year or not. He indicated that he thought that there was a `magic' amount in there. He pointed out that they could get too conservative and have an unnecessary flexibility and tax rates slightly higher than they needed to be. He observed that the City enjoyed a favorable surplus gained over many years, but he thought that there could be more of a balance with a tighter budget. He commented that it was also important not to hold staff responsible to come in with a surplus every year, especially when the year started out with a tight budget. He recalled the long Budget Committee discussion regarding the reduction in personal services, which he thought could have gone higher than 1 %. He indicated that he was not afraid to overspend slightly some place if they concurred that there was a very tight budget going into the year. He conjectured that, if they did not collect the revenue in a given year from raising the assessment to the full 3%, then the Council could take it from contingency and manage the budget going forward. Councilor Vizzini asked to expand Councilor Olson's request for a summary of the Citywide totals to include a break down of expenditures in the major objective categories. He suggested tracking the workload measures on an annual basis along with the dollars, as opposed to on a monthly or quarterly basis. Council President Hennagin invited the Budget Committee members to ask questions. Mr. Smith asked what impact the $6.7 million surplus had on the 2010/11 budget. He wondered whether Ms. Euler needed to do something different based on this information. Ms. Euler clarified that the $6.7 million was citywide, including utilities. She pointed out that the budget was an estimate, which their team still tried to manage responsibly as best they could. She explained that this additional information helped them to evaluate their progress and determine whether their work was going according to plan, based on the underlying assumptions of the plan. Mr. Smith indicated that he would like more clarity on the assumptions made going forward. He recalled that they cut the Community Services Officer and Traffic Engineer positions. He wondered whether this new information would now allow them to reinstate those positions. Ms. Euler mentioned that internally staff has worked on a five-year forecast, which they hoped to use in the next budget season. She commented that they needed to strike a balance between capital projects, positions, people, services, and new items, such as saving for major equipment and vehicle replacements. Mr. McIntyre confirmed to Mr. Smith that post -audit they would know the exact amount in the City's bank account. Mr. Smith suggested re -visiting priorities to see if funds were available for things cut during the original budget. Mr. Gudman suggested that the Council consider exploring the possibility of converting LORA's floating rate debt to a fixed rate debt with rates at these historic lows (p.144). He pointed out that City Council Regular Meeting Minutes Page 14 of 16 September 7, 2010 with the WEB building debt budgeted at 3% but coming in at 2% for the first quarter (p.129), there was money left on the table that could be used for other services. He advocated for a consolidated summary showing the transfers as revenues and expenses and for a capital expenditure summary, in support of Councilors Olson, Tierney, and Vizzini. Mr. Studebaker asked whether the Budget Committee should expect to see a surplus in personal services and materials and services in the next budget cycle, given that the figures were substantially lower in the actual than in the budget. Ms. Euler commented that some of that was real art, and she wanted to reserve judgment for a few more months. She indicated that she could not point to reasons why the actuals were lower than the budget, but she intended to discuss the question with staff. Mr. Studebaker commented that he would appreciate her finding out why because it could significantly affect how they budgeted next time. Councilor Olson observed that the City budgeted every position as filled 100% of the time, which they all knew did not happen. She recalled that that was why they budgeted a 1 % reduction in the personal service budget last year, which she agreed could have been higher. Councilor Vizzini suggested looking first to the salary savings gained through turnover, such as when a lower salaried new person replaced a higher salaried senior staff person, to determine the reason for the difference. Mr. McIntyre observed that Lake Oswego was the little city that loved to think big and did everything in a robust way. He noted that Lake Oswego and Portland were the only two full service cities in the Metro area. He commented that the complexity in budgeting made it challenging to be the management team that the Council expected. He described the decision making process as they went along as thoughtful and ardent. He pointed out that budgeting was as much science as it was art in trying to find the perfect wedge that was satisfactory to both the public and the decision makers. He commented that, while the City did well on budgeting for utilities and the general fund, it did not do well on budgeting for capital projects. He indicated that he has made a conscious effort to get general fund money for capital projects because it was an area that was seriously lacking, as the City facilities demonstrated. He acknowledged that staff did not present the workload measures that it should have. He indicated that they would do so in the future. He pointed out that each year they all got better at the budget process. He thanked Ms. Euler and her budget team for their hard work in seeking to understand the budget and knowing how the numbers moved and what the impacts were. He reiterated that the City budget was very complex. 8. INFORMATION FROM THE COUNCIL 8.1 Councilor Information Councilor Moncrieff reported that Youth Councilor Ben Silbert was on his way to Northwestern University to study economics. She wished him well. 8.2 Reports of Council Committees, Organizational Committees, and Intergovernmental Committees Councilor Jordan reported on a meeting that she and Councilor Olson attended last week organized by Clackamas County with regard to high-speed rail and ODOT's current plans to attract federal money proposed for those types of projects. She asked to put on the September 14 agenda a discussion of the letter that Clackamas County was drafting, which all city organizations impacted by ODOT's current rail plan would sign. She indicated that the concern was that ODOT was looking at only one of two items that the State should be looking at, and it was not looking at it with a good lens. She mentioned a suggestion made at the meeting to revive the TooToo Caucus, in which all the cities affected by ODOT's City Council Regular Meeting Minutes Page 15 of 16 September 7, 2010 proposal to stop the train service between Eugene and Portland had rallied around the service and convinced the legislature to continue the train service. She spoke of possibly taking rail out of ODOT and putting it with a consultant who did not have the same connections to the projects done as ODOT staff did. 9. REPORTS OF OFFICERS 9.1 City Manager 9.1.1 Review of Council Schedule Mr. McIntyre indicated to Councilor Jordan that he would make room on the September 14 meeting to discuss the Clackamas County letter regarding high-speed rail. The Council agreed by consensus with Councilor Olson's suggestion that the Council take two weeks off at Christmas. Councilor Jordan suggested holding the second regular business meeting on December 14 for the public hearing and construction contract award. Mr. McIntyre confirmed to Councilor Olson that the November 9 special meeting on sensitive lands was a study session. He clarified that the Code audit item on October 26 was an update and report on the funding source. 9.1.2 Review of Council Digest Mr. McIntyre explained that this new agenda item was a time for Council members to ask questions about items in the Council Digest or to suggest putting Digest topics on the agenda. 9.2 City Attorney 10. EXECUTIVE SESSION Council President Hennagin recessed the meeting to Executive Session at 10:05 p.m. pursuant to ORS 192.660 (2) (e) to conduct deliberations with persons designated to negotiate real property transactions. Mr. Powell reviewed the Executive Session parameters. 11. RETURN TO OPEN SESSION Council President Hennagin reconvened the meeting at 10:25 p.m. 12. ADJOURNMENT Council President Hennagin adjourned the meeting at 10:25 p.m Respectfully submitted, e�_4� Robyn 4ristie City Recorder APPROVED BY THE CITY COUNCIL: ON Jack D. Hoffman, Mayor City Council Regular Meeting Minutes Page 16 of 16 September 7, 2010 LAKE OSWEGO Centennial 1910-2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: David Powell, City Attorney iS f SUBJECT: Ordinance No. 2564 Renewal of Franchise -- Electric Lightwave, LLC DATE: November 9, 2010 ACTION -7. 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 is requested to enact Ordinance 2564, renewing the non-exclusive telecommunications franchise granted to Electric Lightwave, LLC. INTRODUCTION/BACKGROUND Pursuant to its home rule authority and state law, the city may grant franchises allowing utilities and telecommunications companies to use the public rights of way to install and operate facilities necessary to provide services to city residents and businesses. Franchise agreements are approved by ordinance. The agreements spell out the terms and conditions for operating in the rights of way, and require payment of franchise fees. Franchise fees compensate the public for the commercial use of a public asset, and also provide recovery of related costs of right of way administration and maintenance. The city's franchise agreement with Electric Lightwave, LLC1 is in need of renewal. Electric Lightwave offers business customers integrated telecommunications products and services. The company operates as a Competitive Local Exchange Carrier (CLEC) -- as opposed to an Incumbent Local Exchange Carrier (ILEC). The ILEC's in Lake Oswego are Qwest and Frontier (formerly Verizon). As with other Lake Oswego CLEC franchises, Electric Lightwave has been required to pay franchise fees totaling 5% of gross revenues from telecommunications services provided in the city. The adopted 2010-11 City Budget estimates that Electric Lightwave will pay $26,000 in franchise fees this fiscal year. Requiring a 5% franchise fee for CLEC's is common among Portland -area cities .2 However, many cities in Oregon charge I The franchise was originally granted to Electric Lighwave, Inc. The company is now Electric Lightwave LLC, a wholly-owned subsidiary of Integra Telecom Holdings, Inc. 2 For example, Portland, Beaverton, Hillsboro (also has a few at 3.5%), Milwaukie, Tigard, Tualatin, and Wilsonville — per a 2008 survey. Page 2 7%.3 Attached Ordinance 2564 renews and updates the city's franchise agreement with Electric Lightwave, LLC. DISCUSSION Ordinance 2564 extends Electric Lightwave's non-exclusive telecommunications franchise for a period of ten years (expiring December 31, 2020). Like the previous agreement, this renewal agreement allows Electric Lightwave to install its telecommunication lines and related facilities in the right of way, subject to applicable city regulations, and subject to the approval of the City Engineer. This equipment must be placed underground unless the city specifically allows otherwise. Following installation, the company is required to promptly restore the right of way according to city specifications. If it fails to do so, the city may complete the restoration at the company's expense. The city may require Electric Lightwave to move any of its facilities at the company's expense if relocation is required for a public improvement, or if relocation is deemed by the city to be in the public interest. The agreement specifies that this may include a requirement to relocate aerial facilities underground. The agreement continues the company's obligation to pay franchise fees equaling 5% of gross revenues derived from telecommunications services within the city. (The minimum franchise fee is $1500 per quarter.) The city has the option of increasing the franchise fees to 7% of gross revenues at any time following thirty days written notice. The company must maintain records relevant to the calculation of franchise fees, and must allow the city to inspect or audit those records. The city can collect underpayments as far back as five years. If an audit reveals that the company has paid 98% or less of the fees owed, the company must pay the city's audit expenses. The agreement requires Electric Lightwave to maintain liability and property insurance of not less than $1 million, covering the city. It is also required to indemnify the city with relation to any claims arising out of the company's acts or omissions. Upon discontinuing use of any of its facilities in the right of way, the company must either remove those facilities or obtain the city's permission to leave them in place (with ownership transferring to the city). RECOMMENDATION It is recommended that the City Council enact Ordinance No. 2546 — granting a non-exclusive telecommunications franchise to Electric Lightwave, LLC. ATTACHMENT • Ordinance No. 2564 3 Such as Salem, Albany, Corvallis, Bend, and Grants Pass ORDINANCE No. 2564 AN ORDINANCE OF THE CITY OF LAKE OSWEGO GRANTING A NONEXCLUSIVE TELECOMMUNICATIONS SERVICES FRANCHISE TO ELECTRIC LIGHTWAVE, LLC WHEREAS, it is in the best interest of the City and its citizens to promote the offering of competitive telecommunications services, subject to the City's lawful authority to regulate the use of its rights of way; and WHEREAS, the City has jurisdiction and exercises regulatory management over all public rights of way within the City under authority of the City Charter and state law; NOW, THEREFORE, THE CITY OF LAKE OSWEGO ORDAINS AS FOLLOWS: SECTION 1. Purpose. The purpose of this agreement is to determine terms and conditions upon which Electric Lightwave, LLC, a wholly-owned subsidiary of Integra Telecom Holdings, Inc., may be permitted to occupy the streets, highways or other public right of way within the City, pursuant to the power of the City of Lake Oswego under its Home Rule Charter and ORS Chapter 221, except as to matters regulated by state or federal authorities. SECTION 2. Parties. The parties to this agreement are the City of Lake Oswego, an Oregon municipal corporation situated in the county of Clackamas, sometimes referred to herein as "the City" and Electric Lightwave, LLC, qualified to do business in the State of Oregon, sometimes referred to herein as "Grantee." All rights and privileges granted under this agreement to Grantee shall inure to its successors and assigns. The City of Lake Oswego reserves the right to refuse to accept the performance of any obligations imposed on Grantee under this agreement by any delegee of Grantee. SECTION 3. Grantee's Right to Occupy Right of Way. Subject to the other terms and conditions set forth in this document, and subject to any applicable ordinances and regulations of the City, including but not limited to ordinances and regulations regarding development, tree pruning or removal, erosion control and excavation in the public right-of-way, and subject to any applicable state and federal laws, rules or regulations, the City hereby grants to Grantee, the right, privilege and franchise to occupy the streets, highways or other public right of way as may come within the jurisdiction of the City during the term of this agreement, for the purpose of construction, use, operation and maintenance of a system to provide telecommunication services. This grant includes the right to place and maintain poles, wires, and other equipment customarily associated with telecommunications systems. Such equipment must be laid underground unless the City specifically permits wires or cables to be strung upon poles or other fixtures above ground. Nothing in this agreement shall preclude Grantee from entering into a contract for the use of any portion of its telecommunication systems with any person or other entity for such person or entity to provide any retail or wholesale telecommunications services to its own customers, whether Ordinance 2564 Page 1 of 9 specified herein or not, provided that said person or entity is operating under a current franchise, license or permit issued by the City to the extent that the City requires such franchise, license, or permit consistent with applicable law. Additionally, Grantee shall include a provision in its agreements with such person or entity requiring them to comply with all City requirements and Grantee shall use good faith efforts to enforce such provisions. SECTION 4. Pre -Construction Approval. Prior to the commencement of any construction, extension or relocation of any of Grantee's facilities upon, over, under or across any of the streets, highways, or other public property within the jurisdiction of the City, the Grantee shall advise the City's Engineering Division in writing of the location and shall obtain from the City Engineer written approval prior to commencement of such work. Not less than two business days prior to commencement of any work which might affect City utilities, Grantee shall give notice to City's Maintenance Department for purposes of utility location. The location of all such facilities shall be at places approved by the City. All work done by or for Grantee shall be in compliance with the applicable rules, regulations, ordinances or orders of the City then in effect. SECTION 5. Work within the Right of Way. Subject to the provisions of this agreement and current applicable regulations of the City, the Grantee may make necessary excavations within the rights-of-way of streets and highways for the purpose of installing, maintaining and operating its facilities. Except in an emergency causing prior notice and approval to be impossible, Grantee shall obtain from the City Engineer written approval of any excavation within the right-of-way of any street or highway. The City Engineer shall have the authority to condition the excavation upon the provision of adequate manpower, materials, and machinery to protect the rights of the public to safe passage upon such street or highway. Grantee shall have the right to appeal to the City Council any condition imposed under this section which it reasonably believes to be contrary to law or applicable City rules or regulations, or hazardous, unreasonable, or unduly expensive under the circumstances. Upon request, Grantee shall furnish the City with documents showing Grantee's facilities "as -built" within the public right of way in a format acceptable to the City after such work is complete. Grantee shall perform all work according to all federal, state and local requirements and in conformance with industry practice for workplace and public safety. Grantee shall allow the City access to and the right to inspect any of the Grantee's work within the right of way and shall insure against the risk of personal injury that may be incurred by any City agent or employee in the course of that person's access to and inspection of such work. Whenever Grantee, or anyone on Grantee's behalf, disturbs any portion of the right of way or any other public property or other public place, the Grantee shall properly and promptly restore the affected portion of the right of way or other public property to good order and condition as soon as practicable without unnecessary delay. Such restoration shall be done in strict compliance with City specifications and regulations in effect at the time of such activity. If Grantee fails to properly and promptly restore the affected portion of a street, highway or public property to good order and condition, the City may make the restoration and Grantee shall be liable to the City for the actual cost of making such restoration, including the costs of inspection, supervision, and administration. SECTION 6. City Improvements. Nothing in this agreement shall be construed to prevent or impair the City from grading, constructing, paving, altering, improving, sewering, repairing or maintaining any of the streets, highways or other public property within the jurisdiction of the City Ordinance 2564 Page 2 of 9 which are occupied by fixtures, facilities, appliances or structures of Grantee, but all such work or improvements by the City shall be done in such a manner and by such means as to prevent or minimize impairment of use of said fixtures, facilities, appliances, or structures by Grantee. If avoidance of obstructions or impaired use of Grantee's facilities and structures cannot be done without additional costs to the City, the Grantee shall compensate the City for any additional actual costs to undertake such work, if the Grantee does not perform the work required. SECTION 7. Relocation or Rearrangement of Grantee's Facilities. Whenever it becomes necessary to temporarily or permanently rearrange, relocate or remove any fixture, facility, appliance or structure belonging to Grantee to permit the passage of any structure, machinery, or other object over or upon any street, highway or other public property within the jurisdiction of the City, the Grantee will perform such rearrangement, relocation or removal within a reasonable period of time after written notice from the person desiring to move such structure, machinery, or object. Said written notice shall bear the acknowledgment of the City, and shall detail the route of movement of the structure, machinery or other object and shall provide that the costs incurred by Grantee in making such rearrangement, relocation or removal of its fixtures, facilities, appliances or structure will be borne by the applicant desiring to make such use of the street, highway or public property. The notice shall further provide that the applicant will indemnify and hold harmless the Grantee of and from any and all damages or claims of whatsoever kind or nature, to the extent allowed by law, caused directly or indirectly by such temporary or permanent rearrangement, relocation or removal of the fixtures, facilities, appliances or structures of Grantee. If required by the Grantee, the applicant shall deposit with Grantee cash or a good and sufficient bond to pay any and all ordinary and reasonable costs incurred by the Grantee. Temporary or permanent rearrangement of facilities required by the City for a public purpose shall be accomplished by Grantee without charge in the same manner as permanent relocations described in Section 8 of this agreement. SECTION 8. Public Relocation. The City, by its properly constituted authorities, shall have the right to cause the Grantee to move the location of any pole, wire, cable, appliance, conductor, conduit, or other plant, including the relocation of aerial facilities underground, whenever the relocation thereof shall be for public necessity, and the expense thereof shall be paid by the Grantee. Public necessity is deemed to include relocations required by a public urban renewal agency. The manner of removal or replacement shall be as directed by the City so it shall not interfere with the public work of the City. Public necessity shall be deemed to be whenever any pole, wire, cable, appliance, conductor, conduit, facility or plant of Grantee interferes with construction of any public improvement located in a street, highway, right of way or any public place, or whenever relocation of such facilities is deemed by the City to be in the public interest. SECTION 9. City Occupancy of Grantee's Poles and Innerduct. Where space is available, as determined by Grantee, the City shall be permitted to occupy Grantee's poles and underground innerduct for traffic signal interconnection circuits and other lawful municipal purposes. Such occupancy by the City shall be subject to standard Electric Lightwave, LLC rates as well as all terms and conditions agreed to by the City and Grantee. SECTION 10. Franchise Not Exclusive. The franchise granted herein by the City of Lake Oswego to the Grantee is nonexclusive. Ordinance 2564 Page 3 of 9 SECTION 11. Modifications. Additions and Extensions. Whenever the City Council deems it reasonable or necessary in the interest of the public it may, by resolution, require Grantee to make modifications, additions and extensions to its physical equipment, facilities or plant or services within the jurisdiction of the City as provided by ORS Chapter 221, except as to matters regulated by state or federal authorities. SECTION 12. Compensation. In consideration of the rights, privilege and nonexclusive franchise herein granted, Grantee, its successors and assigns agree to pay to the City the greater of: 1. A minimum franchise fee of $1,500 per quarter. 2. A sum equal to five percent (5%) of its Gross Revenues. The reasonable value of any service or the use of any of Grantee's facilities used or reserved for use by the City without Grantee's prescribed charges shall be credited toward any payment due the City under this provision. Any such charges that exceed amounts owing to the City shall be paid by the City within 30 days. Payment of the franchise fee shall be made on a quarterly basis on or before April 30, July 31, October 31 and January 31 for the calendar quarters immediately preceding. Such payments by the Grantee will be accepted by the City of Lake Oswego from the Grantee, also in payment of any license, privilege or occupation tax or fee for revenue or regulation, or any permit or inspection fees or similar charges for street openings, installations, construction or for any other purpose now or hereafter to be imposed by the City of Lake Oswego upon the Grantee during the term of this franchise. However, the Grantee shall not deduct charges and penalties imposed by the City for noncompliance with the provisions of this franchise. Franchise fee payments not received by the City on or before the due date shall accrue interest at the rate of one percent (1%) over the existing prime rate as set by the bank with which the City contracts for its banking services, compounded daily. Interest shall be due on the late payment from the date on which the payment was due until the date on which the City receives the payment. Each payment shall be accompanied by a written report to the City, verified by an authorized representative of the Grantee, containing an accurate statement in summarized form, as well as in detail, of Grantee's Gross Revenues and the computation basis and method. Such reports shall be in a form satisfactory to the City. Except as otherwise prohibited or limited by law, upon thirty (30) days written notice by City to the Grantee, the City may, in its discretion, declare an increase in the percentage rate of the franchise fee to a rate not to exceed seven percent (7%) of Gross Revenues. In the event of such a declaration, franchise fees shall thereafter be payable to the City by Grantee at the increased rate. "Gross revenues" shall mean any and all gross revenues derived by Grantee for the provision of any services to customers located within the corporate limits of the City of Lake Oswego, and any services originating or terminating within the City of Lake Oswego irrespective of where any invoices are billed or paid. Gross revenues shall also include any and all revenue from leases, licenses, permits, rental agreements, IRU's or any other use of any part of the Lake Oswego portion of Grantee's system for the provision of service to customers within the corporate limits of the City Ordinance 2564 Page 4 of 9 of Lake Oswego or services originating or terminating within the City of Lake Oswego. Gross revenues shall also include: (A) Services interconnecting interexchange carriers, competitive carriers, and/or wholesale telecommunications providers for the purpose of voice, video, or data transmission; (B) Services connecting interexchange carriers and/or competitive carriers to telephone companies providing local exchange services for the purpose of voice, video, or data transmission; (C) Services connecting interexchange carriers or competitive carriers to any entity, other than another interexchange carrier, competitive carrier, or telephone company that provides local exchange services, for the purpose of voice, video, or data transmission; or (D) Services interconnecting any entities, other than interexchange carriers, competitive carriers, or telephone companies providing local exchange services, for the purpose of voice, video, or data transmission. (E) This Franchise does not authorize the Grantee to operate as a telecommunications provider. The Grantee represents that it has applied for and received all necessary regulatory authority. "Indefeasible Right of User Interest (IRU)" means a form of acquired capital in a telecommunications system, in which the holder of the interest possesses a right to use the telecommunications system, but not the right to control, maintain, construct or revise the telecommunications system. SECTION 13. Acceptance of Payment Not a Waiver. Acceptance by the City of any payment due from Grantee under this agreement shall not be deemed to be a waiver by the City of any other obligation of Grantee under this franchise agreement. Acceptance by the City of any payments shall not bar the City from establishing at a later time, within five years following the payment, that the amount tendered was incorrect and collecting any balance due to the City as a result of any incorrect tender by the Grantee. SECTION 14. Grantee's Records; Audits. Grantee shall keep accurate record books of account for the purpose of determining the amounts due to the City under the provisions of this agreement. Such books of account shall be open to inspection by the City, its attorney or other authorized agent at any time during Grantee's business hours. The City may audit said books of account from time to time. Should such an audit reveal that payments tendered by Grantee to the City are less than the amounts due under the terms of this agreement, Grantee shall promptly remit the amounts due Grantor, including all accrued interest at the rate established in Section 12. In addition, upon receipt of an invoice from the City, Grantee shall pay the reasonable costs of such audit if the audit discloses that the Grantee has paid 98% or less of the franchise fees owing for the audited period of time. Grantee shall maintain current maps showing the location of its facilities, fixtures, appliances and structures within the streets, highways or other public property of the City. The City shall be allowed to inspect said maps at any time during Grantee's normal business hours. If requested by City, Grantee shall furnish, without charge and within a reasonable time, maps relating to specified areas of the City. SECTION 15. Indemnification. (A) Grantee hereby agrees and covenants to indemnify, defend and hold the City, its officers, agents and employees, harmless from any claim for injury, damage, loss, liability, cost or Ordinance 2564 Page 5 of 9 expense, including court and appeal costs and reasonable attorney fees or expenses, arising from any casualty or accident to person or property by reason of any construction, excavation or any other act done under this Franchise, by or for Grantee, its agents or employees, or by reason of any omission of Grantee to keep its telecommunications system in a safe condition, but not if arising out of or by reason of any negligence or willful misconduct by the City, its officers, agents or employees. The City shall provide Grantee with prompt written notice of any such claim which Grantee shall defend with counsel of its own choosing and no settlement or compromise of any such claim will be done by the City without the prior written approval of Grantee. Grantee and its agents, contractors and others shall reasonably consult and cooperate with the City while conducting its defense of the City. (B) Grantee also hereby agrees to indemnify the City for any damages, claims, additional costs or expenses assessed against or payable by the City arising out of or resulting, directly, or indirectly, from Grantee's failure to remove, adjust or relocate all or any portion facilities in a timely manner pursuant to Sections 7 and 8 of this agreement, unless Grantee's failure arises 1. directly from the City's or its agents or contractors negligence or willful misconduct,; 2. as a result of other utilities not timely removing, adjusting or relocating its facilities necessary to accommodate Grantee's removal, adjustment or relocation; or 3. from the negligent or willful misconduct of another user of the right-of-way. SECTION 16. Insurance. (A) The Grantee shall maintain commercial general liability and property damage insurance that protects the Grantee and the City, as well as the City's officers, agents, and employees, from the claims referred to in Section 15. The insurance shall provide coverage at all times of not less than $1,000,000 covering all claims per occurrence, plus costs of defense. The insurance shall be without prejudice to coverage otherwise existing and shall name as additional insureds the City and its officers, agents, and employees. Notwithstanding the naming of additional insureds, the insurance shall protect each insured in the same manner as though a separate policy had been issued to each, but nothing in this Section 16 (A) shall operate to increase the insurer's liability as set forth elsewhere in the policy beyond the amount or amounts for which the insurer would have been liable if only one person or interest had been named as insured. The coverage must apply as to claims between insureds on the policy. The insurance shall provide that the insurance, shall not be canceled or materially altered without (30) days prior written notice first being given to the City Manager. If the insurance is canceled or materially altered within the term of this Franchise, Grantee shall provide a replacement policy with the same terms. Grantee shall maintain continuous uninterrupted coverage, in the terms and amounts required, upon and after the effective date of this franchise. (B) The Grantee shall maintain on file with the City Recorder a certificate of insurance certifying the coverage required above. The certificate of insurance shall be reviewed and approved as to form by the City Attorney. (C) In the alternative to providing a certificate of insurance to the City, certifying liability insurance coverage as required in this Section, Grantee may provide the City with a statement regarding its self-insurance. Grantee's self-insurance shall provide at least the same amount and scope of coverage for the Grantee and the City, its officers, agents and employees, as otherwise required under this Section. The adequacy of such self-insurance shall be subject to the City Attorney's review and approval. Upon Grantee's election to provide self-insurance coverage Ordinance 2564 Page 6 of 9 under this Section 16 (C), any failure by the Grantee to maintain adequate self-insurance shall be cause for termination of this Franchise under Section 17. SECTION 17. Discontinued Use of Facilities. Whenever Grantee discontinues use of its facilities, fixtures, appliances or structures ("facilities") within the streets, highways or public right-of-way of the City, Grantee shall submit to the City for the City's approval an application describing the facility and the date on which the use will be discontinued. Grantee shall remove the facility or request that the City permit it to remain in place, which permission shall not be unreasonably withheld or delayed. If Grantee is permitted to abandon its facilities in place, upon the City's consent the ownership of the facilities shall transfer to the City and Grantee shall have no further obligation therefor. Notwithstanding the Grantee's request that any such facility remain in place, the City may require the Grantee to remove or modify the facility in order to protect the public health and safety or otherwise serve the public interest. The City may require the Grantee to perform a combination of modification and removal of the facility. Grantee shall complete such removal or modification in accordance with a schedule set by the City. Until such removal or modification, or until the rights to and responsibility for the facility are accepted by another person or entity having authority to construct and maintain such facility, Grantee shall be responsible for all necessary repairs and relocations of the facility, as well as restoration of the street, highway or public right-of-way, in the same manner and degree as if the facility were in active use, and Grantee shall retain all liability for such facility. SECTION 18. Termination of Franchise for Cause. On the failure of the Grantee, after 90 days written notice and demand, to perform promptly and completely each and every term, condition or obligation imposed upon it by this agreement, the City Council may, at its option and in its sole discretion, terminate this agreement by resolution. The City shall have all of the rights and powers upon termination as are granted under ORS 221.470 upon expiration of a franchise. SECTION 19. Duration. The rights, privileges and franchise herein granted shall continue and be in force from and after the date this Ordinance becomes effective and shall end on December 31, 2020. This Ordinance shall be subject to any and all State or Federal legislative enactments. SECTION 20. Assignment or transfer of system or franchise. Ownership or control of a majority interest in the franchise granted pursuant to this ordinance, or to the telecommunications system constructed under the authority of this franchise grant may not, directly or indirectly, be transferred, assigned, or disposed of by sale, lease, merger or consolidation, or other act of the grantee, by operation of law or otherwise, without the prior consent of the City, which consent shall not be unreasonably withheld or delayed, and then only on such reasonable conditions as may be prescribed in such consent; provided, however, that transfers to affiliates, subsidiaries or parent companies of Grantee shall not require prior consent of the City. a. Grantee and the proposed assignee or transferee of the franchise or system shall agree, in writing, to assume and abide by all of the provisions of this franchise. b. Grantee shall reimburse the City for all direct and indirect fees, costs, and expenses reasonably incurred by the City in considering a request to transfer or assign this franchise. Ordinance 2564 Page 7of9 c. Any transfer or assignment of this franchise, or of the system or integral part of the system, without prior approval of the City shall be void and is cause for revocation of the franchise. SECTION 21. Remedies. All remedies and penalties provided under this agreement, the common law, the statutes of this State, the statutes of the United States and the ordinances and regulations of the City, including termination of this franchise agreement, are cumulative and the enforcement or recovery of one is not a bar to the enforcement or recovery of any other remedy or penalty. The remedies and penalties contained in this agreement, including termination of this franchise agreement, are not exclusive, and the City reserves the right to enforce any penal provision and to avail itself of any and all remedies available at law or in equity. Failure to enforce any right accruing to or available to City whether arising under this agreement or otherwise, shall not be construed as a waiver of a breach of any term, condition or obligation imposed upon Grantee by this agreement or a violation of any requirement of law imposed upon Grantee and available in favor of City. A specific waiver of any particular breach of any term, condition or obligation imposed upon the Grantee by or pursuant to this agreement shall not be a waiver of any other, subsequent or future breach of the same or of any other term, condition, or obligation or as a waiver of the term, condition or obligation itself. SECTION 22. Additional Remedies. In addition to any rights set out elsewhere in this Franchise, as well as its rights under the City Code, the City reserves the right at its sole option to apply any of the following, alone or in combination: (A) Impose a financial penalty of up to $1,000.00 per Franchise violation; (B) Suspend issuance of any permits and/or approvals to Grantee until the Grantee corrects or otherwise remedies the violation; or, (C) Suspend the Grantee's Franchise rights, until the Grantee corrects or otherwise remedies the violation. SECTION 23. Acceptance. This Ordinance shall, if accepted by Grantee, take effect and be in force 30 days from and after its passage and approval. Said Grantee shall, within 30 days of the passage and approval of this Ordinance, file with the Recorder of the City of Lake Oswego its written acceptance of all the terms and conditions of the Ordinance. SECTION 24. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. SECTION 25. Renegotiation. In the event that any provision of this franchise becomes invalid or unenforceable and the City Council or the Grantee expressly finds that such provision constituted a consideration material to entering into this franchise, the City and the Grantee may mutually agree to renegotiate the terms of this franchise. The party seeking renegotiation shall serve on the other party written notice of an offer to renegotiate. The parties shall have 90 days to conduct and complete negotiations. Ordinance 2564 Page 8 of 9 Read by title and enacted at the regular meeting of the City Council of the City of Lake Oswego held on AYES: NOES: ABSTAIN: EXCUSED: ATTEST: APPROVEDA FORM: David Powell, City Attorney Ordinance 2564 Page 9 of 9 day of 2010. Jack D. Hoffman, Mayor Dated: Robyn Christie, City Recorder WRITTEN ACCEPTANCE OF ORDINANCE No. 2564 CITY OF LAKE OSWEGO, OREGON TO THE MAYOR AND COUNCIL OF THE CITY OF LAKE OSWEGO: WHEREAS, on the day of , 2010, the City Council of the City of Lake Oswego, Oregon, passed Ordinance No. 2564 entitled: AN ORDINANCE OF THE CITY OF LAKE OSWEGO GRANTING A NONEXCLUSIVE TELECOMMUNICATIONS SERVICES FRANCHISE TO ELECTRIC LIGHTWAVE, LLC WHEREAS, said ordinance was duly signed and approved on by the Mayor of said City, and attested by the City Recorder: WHEREAS, said ordinance was granted upon the condition that the said grantee shall, within 30 days of the passage and approval of said ordinance, file with the Recorder of the City of Lake Oswego its written acceptance of all the terms and conditions of said ordinance: NOW, THEREFORE, Electric Lightwave, LLC does hereby accept Ordinance No. and all the terms and conditions of said ordinance. IN WITNESS WHEREOF, Electric Lightwave, LLC has caused this acceptance to be duly executed .2010. CITY OF LAKE OSWEGO Robyn Christie City Recorder Received on: APPROVED AS TO FORM: David Powell, City Attorney Ordinance 2564 Page 10 of 9 ELECTRIC LIGHTWAVE, LLC Title: Legal Counsel LAKE OSWEGO Centennial 1910.2010 COUNCIL REPORT TO: Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager FROM: Kim Gilmer, Parks & Recreation Director SUBJECT: Park Property Natural Area Management & Maintenance DATE: November 8, 2010 ACTION 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 requested information regarding the logistics and costs of improving maintenance of park natural areas. Staff will present this information at the November 16, 2010 study session. Dean Apostle, from MIG, Inc., will also present preliminary information gathered for the natural area baseline analysis, which is a component of the Parks, Recreation, & Natural Area System Plan. INTRODUCTION/BACKGROUND In June 2010, the City Council received information and recommendations from the Second Look Task Force regarding the City's Sensitive Lands Code. One outcome of this lengthy review was a recommendation that the City improve maintenance of publically held natural areas. As a result, the City Council asked staff to provide an overview of current maintenance related to park natural areas, and possible options and costs for improving maintenance of these natural area properties. DISCUSSION The following is background information for the November 16 study session. Additional information and clarification will be presented at the study session. Current Park Management & Maintenance The Parks & Recreation Department manages a total of 601 acres of developed, undeveloped, natural area park property. Approximately 375-400 acres are natural areas. The park system includes large and small designated natural areas such as Springbrook Park, Ellen R. Bergis Natural Area, and Campbell Native Garden. It also includes a large number of "hybrid" park sites where natural areas are incorporated into a developed park such as in George Rogers or East Waluga Park. Staffing consists of 1.5 FTE regular staff and .8 FTE seasonal staff dedicated to maintaining natural areas and open spaces. The tasks performed are shown in the chart below. Very little time is available for large Page 2 invasive plant removal efforts. As a result, staff focuses on identifying and removing new invasive plant species (i.e. high priority species include Mustard Garlic, Field Bindweed, Japanese Knotweed, Thistle, Kudzu, and other new types of invasive plants). Parks Maintenance has a "no tolerance" policy for these species. According to the Oregon Department of Agriculture, prevention and treatment of new noxious weed introductions is the most successful, cost effective, and least environmentally damaging means of control. After initial introduction of a new invasive plant, there is a short period of opportunity for eradication and containment. Once permanently established, a new invader becomes a long-term management problem. CURRENT MAINTENANCE ACTIVITIES 1.0 FTE ✓ Garbage & debris pick up Seasonal Staff (FTE) ✓ Illegal dumping Natural Area Budget ✓ Trail and trailhead repair & maintenance City of Lake Oswego ✓ Vandalism & Encampment removal/monitoring 1.5 ✓ Signage, kiosk, bench repair 174 ✓ Hazard tree removal $ 518/A ✓ Blackberry mowing 1,997 ✓ Monitor & remove "high priority" invasive species 0.5 FTE ✓ Supervise natural area maintenance activities $2,300,00 ✓ Main public contact for natural area issues City of Portland* ✓ Hazard tree inspection & removal 19 ✓ Coordinate work & contracts 320 ✓ Friends Group contact person $ 355/A *Note: this person serves as arborist for Parks & Rec sites well as 1,300 street tree inspections 0.8 FTE (seasonal) ✓ Mow open spaces $675,000 ✓ "High priority" invasive plant removal Comparison with Other Agencies Below is a comparison of natural area staffing levels and budgets for various agencies in Oregon. It is difficult to compare on equal terms because each agency may provide a higher or lower level of maintenance per acre at different sites, and performs different tasks. Parks & Rec Agencies # NA Acres Regular Staff (FTE) Seasonal Staff (FTE) Acre per 1 FTE Natural Area Budget Budget per Acre City of Lake Oswego 400 1.5 .8 174 $207,000* $ 518/A City of Eugene 1,997 15 3 111 $2,300,00 $1,152/A City of Portland* 8,000 19 6 320 $2,845,000 $ 355/A Tualatin Hills Parks & Rec District 1,300 6 2.55 152 $675,000 $519/A *$65,000 annually is for hazard tree removal In addition, there are a number of typical natural area practices the Parks & Recreation Department is unable to perform due to lack of resources. These include management planning for the City's natural areas; grant writing for funding for restoration, wetland improvements, etc.; on-going monitoring of habitat improvement and restoration Page 3 efforts; active coordination of volunteers and Friends Groups for habitat improvement; nor environmental education and outreach due to limited resources. Past Management & Maintenance Accomplishments Attached is a spreadsheet illustrating a variety of natural area activities occurring between 1995 and 2009 in the City's park system (Exhibit A). Below is a summary of these activities. SUMMARY OF PAST NATURAL AREA ACCOMPLISHMENT 1995-2005 1995-2003 2004-2007 2008-2009 2010 # Acres Purchased 189 acres (for habitat protection) $16,959,424 NA NA NA NA Americorps: NA 0 116 11 0 Volunteer Work Parties Acres of Invasive Plants 0 Volunteer 32 Volunteer 6 Volunteer 0.5 Volunteer NA Removed 0 Contract 30 Contract 34 Contract 0 Contracted Acres of Habitat Replanted 0 Volunteer 1 Volunteer 0.25 Volunteer 0 Volunteer NA 0 Contract 11 Contract 18 Contract 0 Contract Acres of Wetlands Created/Restored NA 2 2.6 0 0 What is important to note is that in 2004 the City was awarded a federal grant through the Americorps program dedicated to natural areas. This allowed the Parks & Recreation Department to hire a .9 FTE temporary position to perform the following functions: • Volunteer and Friends Group coordination for invasive plant species removal. • Habitat monitoring for invasive plant species. • Management plan development at Cooks Butte and Springbrook Park. • Native plantings (restoration projects). • Education and outreach (developed and managed a natural area webpage advertising work parties, providing educational info on invasive species, etc.; produced flyers/posters/handouts regarding environmental topics, conducted presentations). This position worked in tandem with Parks Maintenance to collaborate restoration efforts and monitoring in areas of highest need, and to organize supplies and debris removal for volunteer activities. The Parks & Recreation Department was awarded a grant for an Americorps Member each year from 2004 through 2008. In 2009, the City was informed that the Americorps program was no longer offering the program due to funding reductions. As a result, the work done by the position has ceased. Existing Condition Analysis In August 2010, MIG, Inc. was hired to develop a Parks, Recreation, & Natural Area System Plan, which will become the 10-15 year vision for managing, maintaining, and developing the City's park system. One component of this project includes an existing conditions analysis for natural areas. The purpose of the analysis is to inventory all park natural areas and identify habitat types, ecosystem health and condition, invasive plant species types, management issues, and suggested next steps. All park natural areas are to be inventoried, including natural area parks such as Springbrook Park, and natural areas in "hybrid" parks such as George Rogers or East Waluga Park. Page 4 The existing conditions analysis is approximately 70% complete. Luscher Farm, the Golf Course, and miscellaneous small sites have not yet been inventoried. The general ecosystem health for inventoried properties to date is listed below. Ecosystem Health Rating % of Total Properties Inventoried Good 26% Fair 27% Poor 47% Good = 1/3 or less of the understory is covered by invasive species Fair = 1/3 to 2/3 of the understory is covered by invasive species Poor = More than 2/3 of the understory is covered by invasive species These preliminary findings do have a bearing on the approach the City chooses to use in managing and maintaining its park natural areas. For example, the Portland Park &Recreation uses ecosystem health and natural resource function to determine its protection, enhancement, and restoration priorities and management actions. This provides the agency with management priorities for allocating limited resources, both staff and funding. Attached is an excerpt from the City of Portland's Natural Area Restoration Plan, 2010 and includes their management priority matrix, management strategies, and example of goals for specific natural areas (Exhibit B). You will note that Portland uses a water shed approach by prioritizing management and maintenance efforts on activities that improve water quality, riparian areas, and fish habitat, amongst other priorities. This information could be used as a model by Lake Oswego in establishing strategies, goals, and priorities for its natural areas. At the November 16 study session, Mr. Apostle will provide a review of the existing conditions analysis, an overview of best practices for managing and maintaining natural areas, and possible options the City may consider. This information is intended to provide the City Council with a base of information for making future funding decisions for natural areas. Restoration Costs Per Acre The Parks & Recreation Department does, as funding allows, hire contracted labor from the City of Portland Bureau of Environmental Services revegetation team (BES) for habitat restoration. The BES crew focuses primarily on properties that have the greatest value to improving water shed quality. As a result, most of the Lake Oswego restoration projects have occurred in parks along the Willamette River since 2004 (Tryon Cove, Foothills, Roehr, and George Rogers Parks). The crews remove invasive species and replant with native plants over a period of 3-5 years. These efforts require a long term commitment of funding to be successful as well as proper oversight, which has not always been the case. The approximate cost is $12,000 per acre over a five year period. That figure could be less if the property is not too degraded, or could be much more if severely degraded. In addition, this cost does not include costs for restoring wetlands or stream corridors. It is focused solely on invasive plant removal and replanting. Based upon MIG, Inc.'s initial ecosystem health ratings, we could roughly estimate the total cost of improving the health of the City's park natural areas to a rating of "good" to be in the range of $3,600,000 over and above on-going natural area maintenance costs. This assumes contractors will do all of the labor, and does not include funding for staff oversight, contract management, or the on-going annual costs of Page 5 maintaining all acres in a "good" condition from year to year. Nor does it take into account monitoring efforts following restoration to ensure the properties aren't re -infested with weeds and invasive species. Attached is an example of how Portland Parks & Recreation estimates costs for improving property, and then maintaining it in a healthy state from year to year (Exhibit C). This model is useful in analyzing site specific costs since each site will present different management and maintenance challenges. The example was developed in 2006 and assumptions and costs most likely have been updated since that time. However, it does illustrate a methodical approach for estimating costs. Lake Oswego will need to move towards this approach to gain a better understanding of the long term costs involved in improving natural area health. ALTERNATIVES & FISCAL IMPACT It is clear that Lake Oswego will need to establish realistic goals for improving its natural areas, and make a long term commitment in staffing and funding to achieve those goals. Appropriating funds for a short period of time will not succeed in long term stability of the ecosystem, and will most likely be a waste of dollars in the long run. In general there are three possible approaches to improving natural areas. Option 1— Hire 1 FTE and provide funding for management, monitoring, contracted labor, volunteer coordination, and grant writing/grant project management. Option 2 — Enter into a memorandum of understanding with another agency that already has a natural area program to manage the City's natural areas. Option 3 — Hire contracted labor to perform site specific restoration. Each of these options has its pros and cons. These will be discussed in more detail at the study session. RECOMMENDATION The November 16 study session will provide general information on options the City may consider, rather than specific options and costs. Staff would like to recommend the following information be presented to the City Council after the first of the year following completion of the existing conditions analysis. • Strategies & Goals for restoring park natural areas, based upon a watershed approach. • Prioritization matrix for determining management and restoration priorities • Options for implementation, including costs, for managing, restoring, and maintaining natural areas based upon management priorities ATTACHMENTS 1. Exhibit A — Natural Area History of Activity 2. Exhibit B — Excerpt from Portland Parks & Recreation Natural Area Restoration Plan, 2010 3. Exhibit C — Portland Park & Recreation Cost Estimating Spreadsheet 00 00 O N t o O O O N 8 vOi V1 h N N In O O S O N s O > O O O O O O N N 0 L1 O O O O O O O m a `o v z � v c v N m H N v ao " o o e H N o 0 � E C O O A C N M m O E `n voi N a o S o 0 T >° E r w a q 8 8 � C O q r S 8 00 8 8 8 o 0 mN - Oo o E m C c N N c a r o m i N a a a a 3 m m c i Q ci m div -`L' v_a E m N N N N n N N N p 8 o' N 000 Zccooa 'oo 'o n.`'o ° >°-2 E>° E QW o °o0 co f- W oL- VLL o u° 0 a s o o 0 3- O u o n o o e om ^ $ Loi o m Loi m o m o $n m 0 o o- N ` E a Loi Loim� nn o 0 o - o o o ooN o >° E « 0 6 R n 00 o ° o S �8 ` N g N s N ` E m Loi Loi 00 g o a o0 of of o 0 >° E 0 0 � 0 0 0 0 0. om Loi o uoi Loi ro o q mN rriN o d d g o` E N o 0 > E s o 0 0 R uii Li g Lo, Loi o Q m N M m N in O N s o$ N d In 8 8 O O m M O O > A O S o O a p pO O m o 8 O O O O S o O O s N N o S O O O O > p p 41 O O q S 8 8 q O o G 8 N s n S O 8 O O O O O > n 8 O 0 O o A 8 S o q N O O O o O N N O N O O O O O O O O O 7 8 O G O In O N s O > S O O O O O N N 0 `w a `o v z � v c v N m H N o H N ; C O O A C x M m O > O T a a E r w a q m N r Q - Oo m C c Q c m _ Y_ a Z a Y c a r o m i N a a a a 3 m m c i Q ci m div -`L' v_a q 9 o' o o Zccooa 'oo 'o n.`'o ° >°-2 QW o °o0 co f- W oL- VLL o u° oW i Y a s o o 0 3- O u d � � a � B § \ : §`=fl22la{!f; /§ \ : §`=fl22la{!f; EXHIBIT B Methodology Many projects have been undertaken by PP&R staff or with partnering agencies to evaluate and enhance the ecological health and connectivity of natural areas in the five major watersheds within the city. Data on each natural area was compiled and scored to determine the natural resource functions and values. A matrix was created to show the current ecological health and natural resource value of parks and natural areas in order to determine the management priorities for allocating limited resources. Ecological Health PP&R inventoried and surveyed the vegetation of its natural area parkland from 2003 to 2008 as step one in the ecosystem management process. This field methodology identified vegetation community characteristics such as dominant and invasive plant species, management concerns, and overall ecological health to inform park management and citywide natural resource planning. A total of 1,072 surveys were conducted covering 8,213 acres. The average unit size was eight acres (17 acres within Forest Park). Forest Park accounted for 4,743 (58%) of the total acres surveyed. The surveys rated the ecological health of each unit from Healthy to Severely Degraded. The following table is a summary of the ratings: Ecological Health Score Acres % of total Acreage 1 - Healthy 97 1.2 2 — Good 2,593 31.8 3 — Fair 3,128 38.3 4 — Poor 1,587 19.4 5 — Severely Degraded 757 9.3 For the purpose of the plan, Healthy and Good are combined to give an ecological health of Healthy. The category of Fair remained the same, and Poor and Severely Degraded were combined to give an ecological health of Poor. Natural Resource Function and Value The natural resource function and value is the cumulative score for the following weighted factors (see Appendix A) for individual natural areas or a set of natural areas that are managed as a unit (natural area complex): • Salmon -bearing stream contained or within 100 feet of the property • Stream (not salmon -bearing) contained or within 100 feet of the property • Stream condition from PP&R 2007 inventory Portland Parks & Recreation 3 Methodology • Ecological health of the riparian area from surveys conducted in 2007 by PP&R • Wildlife Assessment completed between 2003-2008 by PP&R • Special habitat type identified by the City of Portland Bureau of Environmental Services Terrestrial Ecological Enhancement Strategy (TEES) • Anchor habitat identified by TEES or an area greater than 30 acres • Connectivity to Patches, Bureau of Sustainability and Planning (GIS layer updated regularly) • Completed invasive species removal/native plant restoration • Mid-size restoration project requiring permits such as grading • Capital projects that significantly improved the ecological health • Active volunteer/stewardship group • Organized educational activities The data were collected through a review of geographical information system (GIS), natural resource inventories, permits, planning documents, and interviews with PP&R staff. The factors were selected based on state, regional, and city natural resource priorities for protection, restoration, and enhancement. The total possible score for a natural resource function and value is 26 points, though 22 was the highest number of points recorded. Natural resource function and value scores were grouped as Low (0-6), Medium (7-12), and High (13-22). Scores for all areas were graphed and break points in the scoring determined the range for each category. Management Priority Matrix The ecological health and the natural resource function and value of the natural area or natural area complex were listed in a Parks and Natural Area Management Priority Matrix to determine protection, enhancement, and restoration priorities for projects and management actions. For data consistency, the results from the 2003-2008 Ecological Health survey were used. Parks or natural areas where restoration activities have occurred and the ecological health has improved are marked with an asterisk (*) in the matrix. The parks are placed into nine management priority categories based on a combination of ecological health and natural resource function and value (Ecological Health/Natural Resource Function and Value) from Poor/Low (P/L) to Healthy/High (H/H). 4 Natural Areas Restoration Plan — October 2010 n d N m 0 O O 2 N S O T O =3 T v 77 CD Q (D N O 7, 0 rr CD Z �1 CDC D d 7 m CD 3 CD 7 3 O m X 0 " -u T _ m 0 m o o y d N ny c — 3< cmi CD CD O W M`< Q < at O a) — (o v c o vQ 0n < N j_ C 7 ° E v (7 ° � (7 (D C N n CD m m CD O (D � < to � n T C CD n � C� G Cn T7 n r (D ND SZW `< C7 T O C CD O N Cn Q O O C O C < CD c-;- 0; _= a) �, , N S (O a) 7 fD O C O a� NCD S O N (p 7 (D O to v N a v C1 (n 2 Fy o 0 v 0 m 2 3 -u � O CD (7 S a) N `< n 0 CD CD -0 CD 7 CE. n w v 0 3'D v m n Cl) x v C, D is N D v o n m o 0 ?c o 06 3° N N N .Z7 7 �►. (D C N ;a N N T (D v W CD N CD CD is O f - wZ20 D iii D v < n O N 7 W Q CD O Cn CD N ° O N _<�� Z CD D o FD i v �C0 v x n O n� ,z c� C/) -v N * 0 a) n� N CD o 3 y zi) a) O C O N n Q S N (p ,y O ? C p m FD'- o o CD x 'c o C1 m CD 0 Z v m Cn o o m m S° m o x .� ° °o ° c O 7 O N 7c - O N O 7 C1 3 Z n d m n v CD D W c (p z 0 co 3 0° w° W Z m v ° .� N Z D Q v n o < 3 5= D N � 2 D O CL �. c C) CD X Z D N m 3 9 o�? v Z m o D CD D O o D (D ° o D Q Z CD Q Q T W O N CD '� v CD cn m (7 '< O m Q 3 0 c O o CD D t' 3 e O 0 -0(0 -O - G a ... o C „„ r r 3 v m= T v < n m N 3 0 CD N X N N .5. CD x D v Ot 0 o D °i m CD n—i Z O. 'D O -D -0 CD -"i 7 D N d CD = v n 3 c _ Ct) D Z r ?> 00 m Cn v o m CAK v v W^-0 c n 0 -1Cn0�T v v o T 0 N -� c (D 3' = (D .� 3 N 7 CU :E N (D CD N = N N M 0 0 (D 0 o CD S O ,,,d p =CD (O y 9 o m CD 51 a) 0 CO N (D n Q N O N. 3 F x m= vvo ° v w .C.. nm �aCn Z W c v v Z (0 - d D GCD ) - m co w O X 0 S Z O CD t<D d C C-) 7 [D _ 3 (n N x O T D T o 0 C7 °� N vDa3v N N N _m mCpf O On CL d D p N ° O i7 Z7 O O c -0N m o W 0 n 0 m 3 v v 3. 0 - c CCD 0 (D y O N O..0 N C CD Q. CD a1 CD n a. O CD Q CD 3 CD O N CD o O Z c D = o Q m 0 7 d CD 0 O 7° N N N O a1 7 (D CQ 3 — C CD N 0 S x y (D !D (O F CD N CD O O N O X n' 0 0 O 0 7 3 0 rr CD Z �1 CDC D d 7 m CD 3 CD 7 3 O m X Goals and Strategies The overarching goals for the restoration plan are: 1. Contribute to the biological diversity of the Portland metropolitan region. 2. Preserve and improve the ecological health of natural areas. To achieve these goals, PP&R management priorities are based on: 1. Size — the ability of the natural area to provide a full range of ecological services and potential for the greatest biodiversity. 2. Location — the proximity to salmon streams, connectivity for wildlife movement and transitional areas between habitat types. 3. Unique — sites that contain flora or fauna that is rare, threatened or endangered as identified by the Terrestrial Ecology Enhancement Strategy. The restoration plan focuses on six management strategies based on ecological health and the natural resource functions and value to achieve its goals: 1. Establish a predominance of native vegetation (removal of invasive plant species) 2. Watershed -based salmon recovery 3. Preserve and restore biological diversity 4. Best management practices to enhance water quality 5. Engage the public 6. Monitoring and adaptive management These strategies are applied to natural areas with the greatest potential for meeting the restoration goals. In general, natural areas that have high natural resource value independent of ecological health have the greatest potential for meeting the restoration goals and are the highest management priority for City Nature. Overall, these areas are large, complex, and connected to fish -bearing streams or are unique. These areas include: • Forest Park • Oaks Bottom Wildlife Complex • Buttes Natural Area Complex • Marshall Park Natural Areas • South Portland Riverbank Properties • Lower Powell Butte Floodplain Complex • Tideman Johnson Natural Area/Errol Heights Natural Area • Powell Butte Nature Park • Elk Rock Island Portland Parks & Recreation 5 Goals and Strategies The parks and natural area with medium natural resource function and value, and either healthy or fair ecological health will take more resources to restore than the previous group, but they still have good potential for improving ecological health and functions of the watershed and/or contain unique flora or fauna. Generally, these areas are medium size, and have a manageable infestation of invasive plants. The larger areas in these categories include: • Marquam Nature Park • Johnson Creek Park • Maricara Natural Area • Kelly Butte Natural Area Parks and natural areas with medium natural resource function and value and poor ecological health generally have a predominance of invasive species, are located adjacent to a stream, and/or are part of a hybrid parks. Improving the ecological health would potentially be costly but in the long term would meet the goals of the plan. These areas have a lower management priority than the sites with Healthy or Fair ecological health and medium natural resource functions and values. Examples of these sites include: • Woods Creek Complex • Columbia Slough Natural Area • Rocky Butte Natural Area • West Lents Floodplain Parks and natural areas with low natural resource function and value and poor ecological health tend to be small, disconnected from other areas, and often are part of a hybrid park. Large amount of resources would be needed to improve these areas or the ecological return on investment would be small. City Nature staff and resources have been reduced over the past three years because of the economic downturn and loss of general fund revenues. Natural areas in such poor shape will get little or no attention unless they are part of a larger project in the watershed. Strategy 1 — Establish a predominance of native vegetation (removal of invasive plant species) Native plant diversity provides an array of habitat functions including improved water quality, biodiversity, fish and wildlife habitat, tree cover, and reduction of fire risk. The ecological objective is to increase the size of weed -free habitats and maintain or increase native plant species. When sites are invaded by non-native plants, these functions are impacted. The City of Portland Invasive Plants Strategy Report (2008) sets out 10 -year goals and a 3 -year work plan for reducing invasive species in the city's natural areas. PP&R manages the greatest number of natural area acres within city limits, and continues to fight invasive species through a number of actions identified in the Invasive Strategy. Using the Management Priority Matrix, the following invasive species removal actions protect and improve the ecological health of our natural areas: 6 Natural Areas Restoration Plan — October 2010 Goals and Strategies 1. Continue the Protect the Best Program — removal of invasive species from natural areas with Healthy and Fair ecological health and High natural resource function and value (H/H, F/H), and Healthy ecological health and Medium natural resource function and value (H/M): • Forest Park • Maricara Natural Area • Oaks Bottom Wildlife Complex • Buttes Natural Area Complex • Marshall Park Natural Areas • Elk Rock Island 2. Contract with the BES Revegetation Program or other contract crews to remove invasive species and replant native vegetation in natural areas with F/M, P/M, P/H. Follow up with neighborhood or friends group stewardship memorandum of understanding (MOLD to continue the work. 3. Early detection/rapid response (EDRR) prevents new introduction of invasive species and reduces the scale and spread of priority invasive species infestations across all properties. Train park technicians to identify and treat EDRR species. 4. Limit investment of staff resources in natural area in F/L and P/L categorized parks and natural areas unless there is a known special status habitat or species and/or a stewardship MOU is in place. Strategy 2 — Watershed -based salmon recovery Protect, expand, and restore salmon habitat within Portland's five urban watersheds (see Appendix B — Map of Salmon Distribution in the City of Portland). Projects will restore natural channel processes, including reconnecting stream, wetland, and floodplains where possible, and restoring and enhancing riparian habitat. Predicted impacts from climate change will be factored into restoration of natural areas through the Ecosystem Management Steps. PP&R will partner with the Bureau of Environmental Services, Metro, Soil and Water Conservation Districts, and watershed councils to provide the necessary resources and expertise to plan, design, and implement stream restoration, shallow water habitat, and riparian corridor plantings to provide functioning salmon habitat. Projects include: Willamette River 1. Complete a Habitat Management and Trail Plan for the South Portland Riverbank Properties in 2011. 2. Restore rverbanks and floodplains: • Floodplain enhancement at Powers Marine Park • Riverbank restoration at Willamette Park • Riverbank restoration as shown in the master plan for Cathedral Park • Floodplain enhancement at Elk Rock Island • Beach and riparian restoration at SW Greenway Central Reach Portland Parks & Recreation 7 Goals and Strategies 3. Replace culverts at: The railroad tracks at Stephens Creek Confluence to extend shallow water habitat in Willamette Moorage Oaks Bottom Natural Area to reconnect the Willamette to shallow water habitat 4. Restore riparian habitat: • Continue to remove invasive species at Ross Island Natural Area and install native plant species in woodland and riparian areas. • Restore and enhance the ecological health of Balch Creek riparian habitat through invasive removal and large woody debris placement; remove or modify artificially created instream structures; create sustainable access. Johnson Creek 1. Restore Crystal Springs Creek and wetland habitat: • Restore the wetland and stream at Westmoreland Park as shown in the master plan. • Replace Crystal Springs culverts. • Restore the wetland and stream at Eastmoreland Golf Course. • Remove invasive species and plant native riparian plants along the pond to provide shade at Crystal Springs Rhododendron Garden. Explore the opportunity to restore the stream and wetlands within the garden. 2. Mainstem Johnson Creek: • Create meanders and place large wood in the stream at the confluence of Johnson Creek and Crystal Springs at Johnson Creek Park. • Complete a site assessment at Errol Heights to identify opportunities to increase the natural resource values. • Enhance the riparian habitat at Leach Botanical Garden as shown in the master plan. • Remove or redesign the impoundment structure at the west end of Leach Botanical Garden. • Complete a Habitat Management and Trail Plan for Buttes Natural Area Complex and Clatsop Butte Nature Park. • Continue wetland and riparian plantings at Lower Powell Butte Floodplain to increase stream shade and habitat. • Assess and repair/replace if necessary the bridges along the Springwater Corridor to allow woody debris to stay in the system for improvement of stream health. Tryon Creek 1. Remove fish barriers along Tryon Creek to restore populations to Marshall Park Natural Areas. Columbia Slough 1. Monitor the placement of large woody debris and enhance riparian habitat at the Columbia Slough Confluence at Kelley Point Park for fish use. 2. Place large woody debris at Kenton Cove. 8 Natural Areas Restoration Plan —October 2010 s 3 c ? N V K � a o c 3 N < < ch p vim+ f�A o c y 0 O m o r'o < 3 < m 3 H CL N O CL 0.c N 0 A = 7 m m D) 7 3 CL 0 O O -� O 0 0 C odOs O � so 8 CL o � y� Na CL Ck.ao M n i a< O 3 ° M' = w 3 V r E N N cy N N r N V r N N m a n N A N W (n N I to W N A N A N W In y O1 m N M w oo r r. Ow r r 00 w to w 00 r N to y 14m0V00mv y N -„ O m m O -4wcoVOm .im0Vm�o < m c cr O d m_ .� N n � O a n N a?tin co ? 00 O= N y 3 I m A A too to r N N 00 N to N t!0 r? w ltd O 00 A A ''C fD 0) fD V W W A O W A --I n O N 3 c O a Z m r r aCD Vrt lD W v A C O O O V N V W W » N W W r V V O- � O � � O fD DQ a O A r r O< y N m O V A F+ ,O-. a p0 co r 00 00 t0 <D S O a X o A W W N V O 'O iA H V► V► Vf O 0 C (D n L1 Q m N V Ln tn -4p1 {l� V r m Ln p� (A n. N CD V ppm A n�i N Ln Ln p Kil A A V O< CD 04 m Ln to to to0 d 000 �. �► V, Vil 4A o -� a C d W A W N d o y tD m N N bi Oo V90 V N v Om1 N N m 0 (D w0 N Ln A fD O. N M �, 3e o� O 3 N N N N 4A A^ 4A Vf V). C n O O C tD W V OD Wo IN O W N m (n W W y P... O V W to (D N 0� l�Dp 4i W N y to I- to 0o A �Cp p� Grp `� ee �Vp o� T o 0) C --- a n N CL In Ln - (N!1 Ln * N to N 't/f Vf 4^ n 00 n l rD O N CL W A-CL N P, 00 tmD V < O N li Wo Ln a M Ln Ln O A V1 4A In r N r W N to M W O_ OW ♦n Sn N V rn tWD A to t0 V � Lq N Ln r O N V> VT V1 V> N 'O O N M O < C ry [U lwn A V OVD OA1 n Ln N In V C rD O !D N N r to W EXHIBIT C Portland Parks Recreation Natural Area Restoration Cost Estimating (2006) Cost of Restoration - FAIR to GOOD —4 3. What is the estimated cost per acre to move 64%0 of the total 2,928 acres or 1,871 "fair condition" acres to "good condition"? For ivy and blackberry infestation. Assumes a crew of 7 contractors can cover 20 acres per day on 1st treatment (in year 1). Assumes a crew of 7 contractors can cover 40 acres per day on 2nd treatment (also in year 1). Assumes $35 per hour per contractor and $300 per day chemical cost. Assumes year 2, year 3, and year 4 follow-up spot spraying at diminishing cost per acre. Assumes 1 person covers 5 acres per day in year 2. Assumes 1 person covers 10 acres per day in year 3. Assumes 1 person covers 20 acres per day in year 4. Assumes some volunteer assistance pulling weeds in years 2, 3, and 4. For holly, prunus, and other woody stem weeds. Assumes about twice the time needed for moving good to healthy. Team of 2 people can cover 5 acres in 8 days (in year 1). Also assumes about twice the time needed for moving good to healthy in the follow-up years. This includes a thorough inspection, and GPS location and treatment of any weed problems found. Assume a "Botanic Specialist Zero" rate of pay at 3rd year ($19.00 per hour). Coat per acre calculation For ivy and blackberry infestation. 7 number of people on crew (contracted) 8 hours per day $ 35.00 hourly rate for each crew member 20 number of acres per crew day (first treatment) 40 number of acres per crew day (second treatment) $ 300 chemical cost per crew per day $ 2,260 cost per crew day $ 113.00 cost per acre, first treatment 56.50 cost per acre, second treatment For holly, prunus, and other woody stem weeds. 2 number of people (employees) 5 number of acres 8 number of days $ 19.00 cost per hour 30% direct overhead 17% indirect overhead $ 715.01 cost per acre (first year) 1,871 number of homogeneous acres in fair condition $ 1,337,780 total cost (first year) 100% assumed percentage of acres requiring GPS location and treatment of weeds 3 Number of years of follow up program for units found with weeds. Number of treatments during the follow up program at full cost. 2nd year 1 Number of treatments during the follow up program at half cost r years 2 Number of treatments during the follow up program at quarter cost. $ 668,890 50% second year total cost $ 334,445 25% third year total cost $ 334,445 25% fourth year total cost $ 2,675,560 Grand Total (all years) $ 357.50 Average Annual Cost per Acre Assume that after the full program all acres are stabilized at good condition. DEFECTS IN ORIGINAL DOCUMENT Park Natural Areas Management & Maintenance Meeting Goals Present preliminary findings on natural resource management issues in Lake Oswego parks. Examine current management and maintenance efforts. Present approaches to improved management and maintenance. Parke 9 "�tural AreC� Current Natural Area Status 375-400 acres of park natural areas. 1.5 regular FTE; .8 seasonal FTE. "Responsive" maintenance vs. planned. Management is based on "Protect the Best" philosophy. Lack a natural area management strategy that prioritizes &s guides desired outcomes. Park Natural Areas What Lake Oswego has *About 375-400 acres of semi -natural to natural areas • Includes upland forests, riparian woodlands, oak groves, wetlands • Well distributed across community • Highly variable in size, from 1 /10111 of an acre to over 130 acres Iron Mountain Zv Pennington Para Park Natural Areas Types of natural resources in Lake Oswego Parks 14 ";�4 Ook woodancis y Yon Maintain f Od growthfe at Can -u NA r r i Rare yew trees at Cornell NA , l l Park Natural Areas Types of natural resources in Lake Oswego Parks 1 -.01 R*KOor w, -o* at Poetv Park R0vW.beaches, rocky awes ,0G. Rogers Gr=larxlqSfepheresMeadows NA it i$r. Management issues: Park Natural Areas Invasive species Public safety Habitat enhancement Restoration Stewardship 7r Wood placement in creeks for salmon 7 Snag erection tw t*d nes*V firalkorm4atircomf Park Natural Areas Management issues: Invasive species Takes continuous attention, knowledge, priority setting Lake Oswego has a serious ivy problem oC W7 FRI xScourge ofl.okeO. lNockberry: Not worth the sweetness A Park Natural Areas Management issues: Good stewardship Erosion & unauthorized use problems Need well designed & maintained trail system Park Ranger program to discourage -7. inappropriate use & id problems Gully above Urldge V SMrQbrook Park Natural Areas Management issues: Safety Wildfire risk: Note that most Lake Oswego natural areas are inherently low fire risk Higher risk is where dry grass fires can spread into flammable woodlands & climb into canopy (Iron Mountain) Take selective actions to reduce risk (FEMA support) ('!_Jrrent Maintenance ) FTE ✓ Garbage & debris pick up E 1 ✓ Illegal dumping ✓ Trail and frailhead repair & maintenance ✓ Vandalism & encampment removal/monitoring ✓ Signage, kiosk, bench repair ✓ Hazard tree removal ✓ Blackberry mowing ✓ Monitor & removal of "high priority" invasive species ,8 HE ✓ Supervise natural area maintenance activities ✓ Main public contact for natural areas ✓ Hazard free inspection & removal ✓ Coordinate work & controcts ✓ Frkuxk group contact parson .8 FTE -- -_— ✓ Mow open spaces fsa�) - __ _� ✓ "Hiojri prkxityr" Invasive piont remova ----- - - -- - — Stewardship Contract, Invasive plant removal and habitat restoration as funding is available Willamette River Watershed: Tryon Cove Park Foothills Park Roehr Park George Rogers Park Cooks Butte Park riends Group Activity Friends of Springbrook Park Invasive plant removal; trail maintenance; native plantings Friends of Brookside (Iron Mt. Park) Invasive plant removal Friends of Luscher Farm Hedgerow habitat improvement Misc invasive plant removal volunteer work parties 11/16/2010 Accomplishments 11/15/2010 Management framework: • Improve Safety -Stabilize ecosystems to prevent decline • Improve rare & high priority sites • Work towards restoration over long term • Monitor & adapt • Integrate park system within wider ecosystem service framework 6 $$ __a SSf �S 11,111ORestore Fi* Restore remove patches remote no" �R& !s Invasive—, fu q on for � worst eM�i ftot =Kbest nwors 26 WEVemiowing pnttem sc�Mr.F Removr encroachingfir! .ronttor b SSf �S 11,111ORestore Fi* Restore remove patches remote no" �R& !s Invasive—, fu q on for � Management Framework: Create long range goals (25-50 year outlook) Conduct detailed NA inventory Rank sites by quality & rarity Establish conservation priorities Create 5 year & 1 year objectives for priority sites Build stewardship program (staff, partners, contractors) Begin systematic stewardship within available budget Monitor & adapt approaches over time (annual review, 5 year audits) Setting priorities: Protect the best Restore the rare Bigger is usually better Enhance linkages and networks Settle in for gradual, continuous progress towards goals � f �.� � . ,:,� y'«�� ► ' Vis, ,. �� , 14 1 WAY Creek WJQWs rAagroa ^ArMl=+.lil. '+n �riilaF�•mLGe•i,-"-%-•�'"�x - �' - 'z�: A _�.�s.: `. �i rarK Natural Area Management ideas: Hire expert field -oriented staff to oversee & coordinate Train & engage maintenance staff & extend their mandate Explore MOUS with neighboring agencies to gain synergies Contract stewardship for short term gains Nurture volunteer -based stewardship for long term gains Build stewardship network of city, neighborhood, & private landowners Possible Management Options Hire Staff (combination direct service and contract management) Memorandum of Understanding with other agency Stewardship contracts 11/16/2010 12 11/16/2010 13 8.2 CITY OF LAKE OSWEGO LAKE OSWEGO Centennia11910-2010 TO: FROM: SUBJECT: DATE ACTION COUNCIL REPORT Jack Hoffman, Mayor Members of the City Council Alex D. McIntyre, City Manager Denise Frisbee, Director, Planning and Building Services Department Jonna Papaefthimiou, Natural Resources Planner Environmental Education and Community Outreach (PP 10-0021) November 8, 2010 380 A Avenue PO Box 369 Lake Oswego, OR 97034 503-675-3984 www.ci.oswego.or.us No action is requested at this time. Staff seeks direction on a future supplemental budget request for environmental education and conservation incentive programs. INTRODUCTION/BACKGROUND On July 20, Council adopted Resolution 10-51A "A Resolution of the City of Lake Oswego City Council Directing Staff to Implement Revisions to the City's Natural Resources Protection Program" (Attachment 1). This resolution directed staff to implement a package of changes intended to improve the City's natural resources protection programs and implement the recommendations of the Second Look Task Force. Section C of Resolution 10-51A directed staff to: Return with a supplemental budget request for the enhanced communication and community outreach activities identified in Staff Report Section C as follows: 1. Expand Landscaping for Conservation outreach and education programs. 2. Develop a handbook on best practices for restoration; provide some on -the -ground support and grant opportunities. 3. Develop new informational materials for property owners. 4. Strengthen the City's connection to watershed councils and seek their assistance in these outreach efforts. Section D directed staff to: Schedule study sessions on the new resources protection and environmental initiatives identified in Staff Report Section D as follows: 3. Create a program for ongoing outreach on environmental and resource topics Page 2 This report identifies approaches for implementing the outreach and education programs for Council review, discussion and direction on program options and supporting supplemental budget requests. DISCUSSION A strong education and outreach program helps residents see the connections between environmental programs, including sensitive lands, surface water quality protections, water conservation, and restoration of public natural areas. A successful program should engender support and inspire community participation in natural resources protection and stewardship programs by: 1. Promoting awareness of the array of City natural resources programs. 2. Encouraging all residents to adopt practices that safeguard environmental quality. 3. Inviting participation in voluntary stewardship programs, such as backyard habitat certification and street tree planting. Notably, a strong education and outreach program to inspire stewardship is an essential component in the recommended package of natural resources program improvements, which include easing code restrictions and offering greater flexibilities for compliance. Sensitive lands property owners should be a special focus for program outreach and the offer of services and program benefits. Other residents positioned to benefit from an improvement in the environmental quality of the City's natural areas, such as owners of large properties, and residents whose land abuts parks, may also receive special attention. Existing City Outreach and Education Efforts The City currently has a modest group of education and outreach programs related to natural resources education and outreach: The Planning Division sponsors a series of six Landscaping for Conservation workshops annually. These half-day workshops, offered through collaboration with Friends of Tryon Creek State Park, teach residents how to improve the ecological functions of their gardens by focusing on soil, native plants, and water use. Last year, approximately one hundred Lake Oswego residents attended the workshops. 2. In the last two budget cycles, the City has partnered with Friends of Tryon Creek State Park and the Tryon Creek Watershed Council to offer backyard site consulting visits and one-on-one mentoring for those residents who attended the landscaping workshop, to help homeowners implement changes. Last year approximately fifty residents took advantage of the opportunity for one-on-one consultations. 3. Public works offers a program of free water audits, toilet rebates, and water -conserving giveaways to promote water conservation. This program helps to reduce water consumption and keep water in rivers for fish. However, it is not directed primarily at habitat conservation or local surface water quality. 4. Public Works Department's Surface Water Coordinator has offered occasional free workshops on rain gardens and other surface -water related topics, and the City has contributed to a regional fund that produces public service announcements reminding people not to pollute surface water. 5. The Planning Division has offered ad-hoc consulting to residents interested in small restoration projects through one-on-one assistance provided by the natural resources planners. Page 3 Additionally, programs offered in the last three years have included: 6. The Planning Division offered an annual series of workshops on tree -related topics (pruning, planting, care), an annual environmentally -themed art show, and other one-time tree -themed events such as the Century Tree Bike Ride. 7. The Parks and Recreation Department ran a small native plant nursery at Luscher Farm to propagate native plants for restoration efforts, and organized and promoted volunteer work parties to remove invasive plants and plant native trees and shrubs in City natural areas. Although such programs as the tree care workshops and heritage tree programs have been well-received by the community over the last few years, the City has no plans to continue them in 2011 due to the loss of Americorps funding. (The Planning Division's tree -related education events and the Parks and Recreation Departments natural area volunteer programs were staffed by AmeriCorps members, but the Northwest Service Academy is no longer funding these positions.) Watershed Council Participation There are two watershed councils in Lake Oswego: Tryon Creek Watershed Council, which serves the Tryon watershed which lies in both Portland and Lake Oswego, and the newly -formed Oswego Lake Watershed Council, which serves all the land that drains into Oswego Lake. The City is officially a member of both these Councils; however, the City has not had a representative on the Tryon Creek Watershed Council since the Natural Resources Coordinator position was eliminated from Parks in 2009. The Public Works Department assisted in the formation of the Oswego Lake Watershed Council with the loan of a staff person during the formation phase. However, it does not anticipate having the resources to continue staffing this Council once it is established and begins regular meetings. Program Improvements As the City eases regulations for development impacting streams, wetlands, and tree groves, and transitions to a program that balances regulations with incentives, investment in incentive and education programs will be essential to maintain the City's environmental quality. In identifying recommended program improvements, staff included the following considerations: 1. Programs should build on the most successful parts of the City's current or recent offerings, or on programs that have a proven track record in other jurisdictions. 2. Programs should foster positive, one-on-one interaction between City staff or City volunteers and residents, as these are by far the most effective ways to create behavioral change (as compared to mass mailings, television ads, etc.). 3. The most effective programs serve multiple environmental objectives (e.g. water quality and habitat enhancement) and connect City departments to each other and to community organizations. The additions described below are intended to build on the current program offerings and support residents interested in voluntary efforts to improve water quality, conserve water, and enhance local habitat. They include new incentive, partnership and one-on-one education programs, with an accompanying modest increase in staffing, and a one-time expenditure to develop a public presence, communications and public engagement plan. Page 4 • Launch a Backyard Habitat Certification Program in partnership with Columbia Land Trust, Portland Audubon, and Friends of Tryon Creek State Park. The Backyard Habitat Certification Program is a successful program in wide use in Portland which provides assistance and incentives to small lot, private property owners to restore native wildlife habitat in their backyards. The goals of the program are to assist property owners through three levels of habitat restoration with a focus on the removal of aggressive weeds, nature-scaping with native plants, stormwater management, and wildlife stewardship. In Portland, the foundation for the program is a partnership between Columbia Land Trusts and Portland Audubon Society. In Lake Oswego, we could build on our current Landscaping for Conservation Program which we have already established in partnership with Friends of Tryon Creek, and expand the partnership and the program with the help of the Columbia Land Trust and the Audubon Society. The joint proposal we have received from the three organizations would offer workshops and more one-on-one assistance to homeowners in implementing landscape changes, and provide incentives such as free and reduced -cost plants and tools. The Backyard Habitat Certification program also publishes a monthly newsletter for participants, certifies backyard habitats at the silver, gold, and platinum levels, and provides an attractive certification sign. This program could be offered on a priority basis to sensitive lands property owners but be made available to all City residents as program capacity allows. This program could also be attractive to residents who live adjacent City parks and natural areas, where private landscape practices can help or harm restoration efforts in the City's natural areas. A more detailed program proposal is provided as Attachment 2. • Partner with Friends of Trees to sponsor street tree planting with their Neighborhood Trees Program. The mission of Friends of Trees is to bring communities together to plant and care for trees in public spaces. Their model program has been successful in Portland, Vancouver, and Gresham in promoting street tree planting, educating residents about the value of street trees in preventing storm water pollution, spreading the right -tree -right -place message and promoting positive relationships between neighbors and the City. The program makes discounted trees available to selected neighborhoods and invites and organizes planting events for those neighborhoods. This program would provide an opportunity to support all homeowners interested in participating in City environmental incentive programs and would deliver on a recommendation outlined in the City's 2009 State of the Forest Report. See the Friends of Trees website: www.friendsoftrees.ore. • Establish a small grants program for restoration work. The City has an existing neighborhood improvement program that provides small grants to neighborhood groups with a current goal of leadership and capacity -building in neighborhood associations. The City could offer a similar program to promote environmental restoration and habitat improvements both for neighborhood associations and for homeowners. The City could provide micro -grants to individual homeowners to make improvements identified by the Backyard Habitat Certification Program --The Tryon Creek and Oswego Lake Watershed Councils could help to identify grant -making criteria and prioritize applications. Three Rivers Land Conservancy recently merged with Columbia Land Trust. Page 5 • Arborist Services The Council has identified a number of opportunities to assist our citizens generally and RC (Tree Grove) property owners specifically with tree care advice and assistance. Informational materials need to be developed on such topics as a photographic manual of invasive tree species, an informational brochure regarding tree removal, tree selection, planting and maintenance. In addition to the need to prepare materials, there is the need to offer the on-site assistance of an arborist. Staff proposes to offer 100-200 free site visits and individual consultations on tree and tree grove care each year with first priority to property owners of sensitive lands designated properties. In addition, an on -staff arborist could assist in implementation of the Urban Forestry Plan and coordinate the projects formerly staffed by the AmeriCorps position—the heritage tree program, education workshops and other public education and outreach activities identified each year. The on -staff arborist could manage outreach at the Farmer's Market and summer concerts, and coordinate the City responses to tree issues that cross Parks, Planning and Public Works department lines. Finally, if the City moves forward with exempting invasive trees from the Tree Code, the staff arborist could develop a process for verifying invasive tree species prior to removal along with associated code language and education and outreach materials and ensuring adequate mitigation when required for tree removal. Staffing Changes The City cannot significantly strengthen its natural resources protection programs without adding resources, both dollars and staff. The Backyard Certification and Friends of Trees programs could be launched and supported at an efficient cost because they build on existing partnerships and would rely on community groups with a track record of success to provide new services. However, outside programs still require staff oversight, and additional staff will be needed to manage these programs, orchestrate and support ongoing communication and outreach activities, coordinate such efforts across department lines, participate in the watershed councils and provide the proposed services of an arborist to the City's sensitive lands property owners. The recommended staffing additions are: 1) a half-time natural resources or watershed outreach coordinator position, and 2) the addition of a full-time City arborist. These staff members would team with existing natural resources staff, including the natural resources planner, water quality coordinator, and parks analyst. Natural Resources or Watershed Outreach Coordinator This new half-time position would coordinate public education/incentive programs, including backyard habitat certification and street tree planting described above; oversee production of City publications (website and paper) related to natural resources; provide a clearinghouse for City staff working on water - quality or habitat -related programs; facilitate the City's "watershed approach"; serve as the City's representative on local watershed councils; administer the small grants program; and review and revise City program offerings regularly. This job would be in some ways analogous to the City's Sustainability Coordinator, coordinating both internal and external projects related to environmental quality. City Arborist/Forester This position would replace the City Arborist position that was eliminated by attrition in 2008. The on -staff arborist would provide the consultation services discussed above and assume responsibility for overseeing implementation of the Urban Forestry Plan, implementing the invasive tree species removal agenda, and serve as the City's ambassador for tree issues and natural resources related programs. The staff arborist would continue to perform development review duties currently paid for on contract. Page 6 ALTERNATIVES & FISCAL IMPACT This memorandum is intended to provide options to Council to weigh in providing direction to staff for a future supplemental budget request. Council may direct staff to return with a supplemental budget request for some or all of these programs. Estimated Costs FY 2010-2011 (Supplemental Budget) One-time Backyard Habitat Program Start -Up $ 5,000 Public Engagement Plan & Products $ 20,000 — 25,000 6 months — Watershed Outreach Coordinator $ 25,000 6 months — City Arborist/Forester $50,000 $100,000 — $105,000 TOTAL Costs for future budget years are also provided because costs in future years figure into the decision: Estimated Costs FY 2011-12 Budget (Annual Costs) Backyard Habitat Program $ 36,000 Friends of Trees partnership/Tree planting $ 10,000 — 15,000 Education and Outreach Support and Materials $ 5,000 City Forester (1.0 FTE) $100,000 Watershed Outreach Coordinator (0.5 FTE) 50,000 Small Grants Program S 2.500 — 5.000 $203,500 — $210,000 TOTAL RECOMMENDATION This is a study session intended to elicit Council discussion and direction on education and outreach programs and identification of potential budget items. Staff requests direction from Council in preparing a supplemental budget request. ATTACHMENTS 1. Council Resolution 10-51A 2. Backyard Habitat Certification Program Proposal Reviewed by: Department Director L� Alex 8. McIntyre City Manager RESOLUTION 10-51A A RESOLUTION OF THE LAKE OSWEGO CITY COUNCIL DIRECTING STAFF TO IMPLEMENT REVISIONS TO THE CITY'S NATURAL RESOURCE PROTECTION PROGRAM WHEREAS, in the 1990's, in an effort to protect significant natural resources as called for by the City's Comprehensive Plan and Statewide Land Use Planning Goals 5 and 6, the City indentified and mapped significant resource areas, and in 1997 adopted regulations known as Sensitive Lands regulations; and WHEREAS the City anticipated that, with certain modifications, the Sensitive Lands regulations would qualify for compliance with Metro's Title 3 and 13; and WHEREAS the Sensitive Lands regulations have not been significantly amended or modified since adoption; and WHEREAS concerns and questions raised by the community led the City to conduct a thorough review of the program by supporting the Planning Department in convening a technical task force (the Second Look Task Force) to evaluate the Sensitive Lands program and recommend program improvements; and WHEREAS, from September 2009 to May 2010, after 17 meetings, one Public Open House and Comment Session, and including field trips, case studies, presentations and extensive document review, the Second Look Task Force compiled recommendations for program improvement, which were presented to the Planning Director and reviewed and evaluated by the City Council; and WHEREAS, following three public comment sessions in review of Task Force and staff recommendations held in June and July 2010, the City Council is prepared to direct program revisions with a goal of offering greater flexibility for property owners, while maintaining environmental protection and compliance with Metro and State standards; BE IT RESOLVED by the City Council of the City of Lake Oswego as follows: The City Council directs staff to prepare the following program revisions (as outlined more thoroughly in the Staff Report dated July 15, 2010 and in the Second Look Task Force Report dated May 28, 203.0): Section A: Implement the regulatory changes identified in Staff Report Section A, which recommends immediate amendments to: 1. Modify the Development Code to permit de minimis impacts, with specific attention to allowing more uses in buffers, such as fences, gardens, lighting, pervious surfaces, etc. Resolution 10-51A ATTACHMENT 1 Page 1 of 3 PP 10-0021 2. Clarify the terms "ditch," "resource buffer," and "construction setback" 3. Exempt Invasive trees from tree removal permit requirements 4. Amend the City fee schedule to eliminate the resource delineation fee Section B: Implement the regulatory changes identified in Staff Report Section B within the next year, including the following steps: 1. Develop and initiate a free map correction process 2. Consider removing small, isolated tree groves from the overlay zone on private property, not including private dedicated open space 3. improve the readability of the Sensitive Lands code 4. Develop a two -track review system 5., Develop standards for mitigation measures 6. Direct staff to return to Council with habitat friendly development codes Section C: Return with a supplemental budget request for the enhanced communication and community outreach activities identified in Staff Report Section C as follows: 1. Expand Landscaping for Conservation outreach and education programs 2. Develop a handbook on best practices for restoration, provide some on -the - ground support and grant opportunities 3. Develop new informational materials for property owners 4. Strengthen the City's connection to watershed councils and seek their assistance in these outreach efforts. Section D: Schedule study sessions on the new resource protection and environmental initiatives identified in Staff Report Section D as follows: 1. Direct staff to report to the City Council by February 1, 2011 on advantages, disadvantages, funding mechanisms and an implementation plan to organize and operate internal resources to support watershed based environmental management, including linking the surface water resource program and sensitive lands. 2. Direct staff to prepare by November 1, 2010 a current fiscal year and a longer term multi-year plan to improve maintenance of City property by removing invasive species and restoring those lands with appropriate species. The City Council recognizes that the degraded condition of our public lands occurred over many years and that it will take many years of dedicated sustained effort to correct the situation. 3. Create a program for ongoing outreach on environmental and resource topics 4. Develop an on-line data service program similar to Portland Maps Section E: Implement regulatory changes identified by the City Council as follows: 1. Consider increasing RP buffers, on City -owned land only, consistent with the Metro Model Code 2. Review significant tree and riparian resources on City -owned lands and add designations where appropriate Resolution 10-51A Page 2 of 3 3. Direct staff to return to the City Council with recommendations for an appeal process and options, with an emphasis on fairness and equity, including a discussion and timeline for 1B properties, by the end of the year Section F: This resolution shall be effective immediately upon its adoption by the City Council. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 27th day of T,.1y , 2010. AYES: Mayor Koffman, Johnson, Jordan, Tierney, Moncrieff NOES: Olson EXCUSED:Hennagin ABSTAIN: none !a&. Hoffman, Mayor ATTEST: Robyn Christie City Recorder APPROVED AS TO F David D. Powell, City Attorney/ Resolution 10-51A Page 3 of 3 Backyard Habitat Certification cjociety v Program moo CL l9oti Columbia aded 10 L A N D T R U S T REQUEST FOR FUNDING Audubon Society of Portland -Columbia Land Trust Backyard Habitat Certification Program Expansion into City of Lake Oswego I. PROGRAM SUMMARY: In 2009 Audubon Society of Portland and Three Rivers Land Conservancy (now Columbia Land Trust) began collaborating on the citywide Backyard Habitat Certification Program throughout Portland. This collaborative effort provides technical assistance to small lot private, property owners to restore native wildlife habitat and manage stormwater in their backyards. The program is currently focused on properties within the City of Portland and working with landowners who own I acre or less in the dense urban landscape. With a growing list of residents in the City of Lake Oswego who have signed up for the program awaiting its expansion, there is a significant amount of interest to work in this area. The objective of the program is to assist property owners through three levels of advanced habitat restoration. The program focuses on the removal of aggressive weeds, naturescaping with native plants, stormwater management and wildlife stewardship. The certification process involves a site visit from a trained habitat technician. Property owners then receive a written report advising them about site specific habitat enhancements that could be implemented. Property owners receive continuing technical support as they restore their property, access to a variety of incentives to assist with their restoration efforts, and a sign identifying their property as "certified" when the process is completed. Benefits to watersheds and to the community: Our region has long been recognized for its outstanding efforts to protect fish and wildlife habitat, improve water quality and ensure access to nature for all citizens. Many agencies currently provide education and outreach to explain native wildlife habitat needs to landowners. The Backyard Certification Program takes this work to the next level by certifying private landowners who take action in restoring their land. The program provides the landowner with incentives, expertise, resources and recognition for restoring their private property to ecological health. To date regional protection and restoration efforts have focused most heavily on public lands, public right of way and new development. However the largest percentage of our regional land base continues to be already developed lands under private ownership. Efforts to prevent future introductions and spread of invasive species, to provide safe passage for wildlife between publicly owned natural resource anchor sites, and to reduce contaminated runoff into our waterways ultimately all depend on developing meaningful strategies to reach out to this segment of our community. The relationships that are built with property owners are long-term, designed not only to provide immediate improvement in local ecology, but to work with property owners to move through successive stages of ecological improvement on their property, to involve entire neighborhoods in the process, and to ensure that improvement is sustained over time. It's our expectation that this program will go "viral" with 1 ATTACHMENT 2 PP 10-0021 certified property owners inspiring their neighbors to follow suit. With the first year of the program complete, we can already say that this has occurred in many areas throughout the City of Portland. Community Involvement, Partnerships and Educational Aspects: At its core, the Backyard Habitat Certification Program is about public education and public involvement. Our goal is to actively engage property owners in caring for their property and their watershed. The program introduces the public to local and regional conservation programs and helps them apply these concepts on their own property. The program strives to build community by promoting habitat restoration on a neighborhood scale, creating connections between private property owners and public conservation programs and engaging private businesses in supporting these efforts through offering discounts and benefits. The Program to expand into the City of Lake Oswego is being spearheaded through a partnership between Columbia Land Trust, Audubon Society of Portland, City of Lake Oswego Planning Department, Friends of Tryon Creek State Park and Clackamas County Soil Water Conservation District. II. DELIVERABLES Measures of Success: Metrics for measuring success will include number of properties certified, site visits, acres certified, quantifying trees and shrubs planted on participating homeowners property, inkind matches from businesses and other resources including invasive plant removal. We've attached our 2009- 2010 Accomplishments to further showcase how we measure our successes. a. Goals July 2011 -June 2012 July — September 2011 • Media outreach and outreach to stakeholders in target areas • Conduct at least 1 workshops or public presentations related to BHCP and living with urban wildlife • Engage 25 property owners in certification program, certify at least 5 property owners October — December 2011 • Media outreach and outreach to stakeholders in target areas • Conduct at least 1 workshops or public presentations related to BHCP and living with urban wildlife • Engage 25 property owners in certification program, certify at least 5 property owners January —March 2012 • Media outreach and outreach to stakeholders in target areas • Conduct at least 1 workshops or public presentations related to BHCP and living with urban wildlife • Coordinate volunteer training for Backyard Habitat to support certification site visits and other outreach opportunities • Engage 25 property owners in certification program, certify at least 5 property owners April — June 2012 • Media outreach and outreach to stakeholders in target areas • Conduct at least 1 workshops or public presentations related to BHCP and living with urban wildlife • Engage 25 property owners in certification program, certify at least 5 property owners • Coordinate 1 Community Site Visit Day. Selecting a specific neighborhood to conduct site visits and support community involvement 2 b. Program Outcomes (12 month period) In addition to what's mentioned above • Coordinate Backyard Habitat benefits and resources. See attachment for further details on what's offered • Four native plant sales (2 spring, 2 fall) • Twelve enewsletters sent to program participants capturing regional resources and information (i.e. workshops, native plant sales, events) • Coordination of work crews to assist landowners with restoration work (i.e invasive plant removal, native plants). These partnerships include AmeriCorps and Verde -One garden tour highlighting certified properties (within city of Portland and Lake Oswego) -Tracking of on -the -ground restoration work for certification. Tracking includes native plants purchased through Backyard sales, work crews and invasive plants removed Outreach to 4 community events including neighborhood association meetings, etc. -Provide 6 Landscaping for Conservation workshops through Friends of Tryon Creek State Park III. RESPONSIBILITIES The responsibilities of the five organizations involved in this partnership are described below. A. City of Lake Oswego Planning Department will fund the expansion of the Backyard Habitat Certification Program into the City of Lake Oswego. They will advertise the program to residents using their website and offer information about the program in the course of any relevant public outreach to landowners. B. The Backyard Habitat Program is run jointly by Columbia Land Trust and the Audubon Society of Portland. They will coordinate the division of duties on the deliverables listed above including the management of the contract with Friends of Tryon Creek State Park to conduct the site visits. Data gathered will be tracked by their joint database and reports will be delivered to the City of Lake Oswego Planning Department. C. Columbia Land Trust and the Audubon Society of Portland will contract with Friends of Tryon Creek State Park to conduct the site visits. Friends of Tryon Creek State Park will take the lead on coordinating four workshops for landowners in the program. D. Clackamas County Soil Water Conservation District will continue to offer technical assistance to landowners that may need additional advice on riparian area restoration, invasive species removal, and Naturescaping. IV. REQUEST FOR FUNDING Pre -Implementation (coordination prior to program launch July 1, 20120) $5,000 Program Implementation (includes site visits, goals/outcomes mentioned above, supplies and travel) $36,500 Total request: $41, 500 3 CITY COUNCIL REGULAR MEETING MINUTES November 16, 2010 Mayor Jack Hoffman called the regular City Council meeting - to order at 6:32 p.m. on November 16, 2010, in the City Council Chambers, 380 A A: anue. 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; Bonnie Hirshberger, Citizen Information Coordinator; Erica Rooney, Asst City Engineer; Kim Gilmer, Parks & Recreation Director; Denise Frisbee, Planning and Building Services Director; Joanna Papaefthimiou, Natural Resources Planner; Morgan Holen, Natural Resources Planner; Fire Chief Ed Wilson 3. PRESENTATIONS 3.1 Photo Contest Winners Mayor Hoffman congratulated the winners of the City's Second Annual Photo Contest and presented each winner with a gift certificate. Accompanied by a PowerPoint presentation, he read brief statements about each first place photo and photographer. He mentioned the names of the photos and photographers of the runner-ups and honorable mentions. Cat. 1 Life in Lake Oswego Cat. 2 Places in LO Cat. 3 LO Events & Activities Cat. 4 People & Places in LO Cat. 5 Positive Aging in LO Youth Vintage/Historic 4. CONSENT AGENDA Cyclist on C Avenue Millennium Pool Wooden Boat Show Flying with Geese Park Painter Road to 100 Oswego Lake Head Gate 1964 Jackie Follett Chris Thompson Roger Nicholson Chris Thompson Susanna Kuo Piers Dennis Will Weber Councilor Jordan moved the Consent Agenda. Councilor Olson 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] 4.1 RESOLUTIONS 4.1.1 Resolution 10-67, authorizing a Local Agency Agreement with ODOT for the Pilkington Pathway Safe Routes to School Project Action: This item was pulled for further discussion 4.1.2 Resolution 10-68, making appointments to the Budget Committee Action: This item was pulled for further discussion 4.2 APPROVAL OF MINUTES 4.2.1 July 13, 2010, special meeting 4.2.2 September 7, 2010, regular meeting City Council Regular Meeting Minutes Page 1 of 19 November 16, 2010 Action: Approve minutes as written END CONSENT AGENDA 5. ITEMS REMOVED FROM THE CONSENT AGENDA 5.1 Resolution 10-67, authorizing a Local Agency Agreement with ODOT for the Pilkington Pathway Safe Routes to School Project Mayor Hoffman commented that this agreement was a great study in the cooperation between a local government, a motivated and inspired elected official, and an equally inspired and motivated citizen/neighbor. He introduced John Turchi, former City Councilor, and Peter Klaebe. Mr. Turchi recalled that this agreement had its roots in a controversy that erupted in 2001/2002 when the City and the School District considered annexing the thirteen areas within the City's Urban Services Boundary and within the School District's boundary but not within the city limits. Although the District and the City backed away from that idea, the City decided to try to create better understanding with the unincorporated areas through conflict resolution. He indicated that he had served as the City's representative in that 18 -month effort. He commented that, in addition to gaining an understanding of the issues individual to each neighborhood, he was able to develop relationships with the unincorporated area residents and build trust in the wake of these residents' unhappiness with how the City had treated them. He explained that they found that the City and the neighborhood could work together on Safe Routes to Schools program, which was good for the schoolchildren and the unincorporated and incorporated citizens. He cited Mr. Klaebe's persistence as the major factor in bringing this agreement about. Mr. Klaebe confirmed that the community dialog sessions helped build relationships and trust. He expressed his appreciation for Mr. Turchi's support and guidance in navigating the City, County, and School District politics while seeking this grant. He commented that the neighbors were looking forward to the pathway. He cited a recent accident on Pilkington Road involving a student as further justification for this pathway. He mentioned that it would be great to get the pathway built before school started in the fall. Councilor Hennagin moved to adopt Resolution 10-67. Councilor Jordan seconded the motion. Councilor Jordan recalled that, when she had sat on the Transportation Advisory Board, Mr. Klaebe had come looking for money for the Pilkington Pathway and ran into an unwritten understanding that the City would not spend money on pathways outside the city limits. She pointed out that the children using the path attended Lake Oswego schools. She commented that she was glad to see the City obtain this first Safe Routes to School grant. Councilor Olson encouraged staff to find a way to complete the pathway before Labor Day. A voice vote was taken, and the motion passed with Mayor Hoffman, Councilors Hennagin, Olson, Moncrieff, Tierney, Jordan, and Vizzini voting `aye.' [7-0] 5.2 Resolution 10-68, making appointments to the Budget Committee Councilor Hennagin moved adoption of Resolution 10-68, appointing Joseph A. Vricelli and Christian Ramey to the Budget Committee for terms ending August 31, 2013; and appointing Ron Smith for the remainder of a term ending August 31, 2011. Councilor Jordan seconded the motion. Councilor Olson proposed amending the resolution to re -appoint Ron Smith to a second full term. She cited the Council's past practice of re -appointing those Budget Committee members who reapplied for a second term. City Council Regular Meeting Minutes Page 2 of 19 November 16, 2010 Councilor Olson moved to amend Resolution 10-68 to appoint Christian Ramey and Ron Smith to the Budget Committee for terms ending August 31, 2013, and to appoint Joseph Vricelli for the remainder of a term ending August 31, 2011. There was no second. A voice vote was taken, and the motion passed with Mayor Hoffman, Councilors Hennagin, Moncrieff, Tierney, Jordan, and Vizzini voting `aye.' Councilor Olson voted `no.' [6-1] 6. CITIZEN COMMENT • Dan Williams, 17226 Tualatin Street Mr. Williams mentioned that he has been on the Budget Committee for two years and has personally benefited from Mr. Smith's leadership as the Committee Chair. He described Mr. Smith as a calming voice of reason during heated arguments and a stabilizing force in allowing a fully developed discussion among members before voicing his opinion. He argued that Mr. Smith's in- depth knowledge of budget procedures, his years of experience, his ability to bring people together, and his forthrightness in getting the job done benefited all Committee members. He expressed his disappointment that the Council did not re -appoint Mr. Smith to a full three-year term. He invited anyone with questions regarding Mr. Smith's leadership techniques or skills to attend the meetings. He thanked Mr. Smith on the record for his service. • Lauren Hughes, 18711 Westview Drive, Citizens for the Stewardship of Lake Oswego Board On behalf of the Board, Ms. Hughes respectfully requested the Council to postpone the December 13 public hearing regarding the changes to the Sensitive Lands program. She stated that the changes under consideration were not responsive to the primary citizen concerns regarding the trading of their private properties to allow development elsewhere. She asked the Council to show goodwill towards the incoming Councilors and postpone the hearing until after January 1 in order to allow the new Councilors to help with the resolution and to bring a fresh perspective to the issue. • John Surrett, 1685 Edge Cliff Terrace As LONAC Chair, Mr. Surrett concurred with Mr. Williams' comments regarding Ron Smith. He commented that LONAC had been very impressed with Mr. Smith's leadership and his allowing citizens the opportunity to speak at every meeting. He discussed his personal concern with the Council holding its meetings on important subject matters at the West End Building, instead of in the Council Chambers. He mentioned the sometimes very short public notice of a little more than an hour. He pointed out that the discussions at last night's special meeting at the WEB on the updates to the Citizen Advisory Committee on the Comprehensive Plan and on the streetcar project was difficult for the audience to hear because of the lack of microphones. He asked why the City had not held the meeting in the Council Chambers or rented A-V equipment. He noted that the Joint City Councils meeting on the Tigard/Lake Oswego water agreement was only audio taped and not videotaped. He held that staff should post audio tape recordings to the City website and not charge citizens $18 a copy. He argued that the City should rent A-V equipment for meetings held at the WEB for internet streaming, whether or not TVCTV had time to re -broadcast the meetings. He emphasized the importance of having microphones at all WEB meetings. He asked the Council to consider this topic carefully, as it was an important topic related to visibility and transparency in the decision-making process. He stated that the citizens needed to know what was going on, as they were the bosses who picked up the tab. City Council Regular Meeting Minutes Page 3 of 19 November 16, 2010 • Gary Buford, 5 Camelot Court Mr. Buford mentioned that, during the Council deliberations last Tuesday on the Sensitive Lands Ordinance revision's on the construction of fences within creek areas in the city, a Council member referenced the letter he had written to the Council on the subject. He expressed his concern that the meeting did not speak well for the direction that the Council was giving staff, and for the way that staff was moving ahead with items concerning the Sensitive Lands Ordinance without thinking through whether or not what they have been directed to do made any sense. He stated emphatically that he was not saying or inferring that either the Council or the staff lacked intelligence. He reiterated his point that the City Council and the City staff should think through more thoroughly how they proceeded with matters concerning the Sensitive Lands Ordinance and other issues as well. • Diana Boom, P.O. Box 328, Lake Oswego Ms. Boom thanked Mayor Hoffman for bringing Peter Klaabe and John Turchi forward to explain their item, as that did provide interesting background. She commented that she had not known the Council protocol of re -appointing Budget Committee members if they re-applied. Consequently, she was very disappointed that the Council did not re -appoint Mr. Smith to a second full term because, from her perspective, Mr. Smith brought the Budget Committee meetings to a level that was not intimidating. She stated that she liked the way that Mr. Smith ran the meetings and made it welcoming for people to speak. She asked that the City televise any meetings held at the WEB because many people who could not attend the meetings depended on the televised meetings. She commented that Lake Oswego was a city where if something needed to be done, then they got it done. She held that televising the meetings at the WEB needed to be done, and asked the Council to get that done. • Cheryl Salamie, 3001 Westview Court Ms. Salamie asked the Council to delay its process on the Sensitive Lands program. She asked what the rush was to finalize this program, which she alleged was not about the environment but rather about development elsewhere. She described the program as arbitrary and riddled with inconsistencies and errors at the expense of 10% of the property owners. She commented that no one connected with the program has ever believed in it enough to surrender their own property. She argued that the community already had Code protections in place for trees and waterways. She said that she would like to see the Council take its time in resolving the issue and include the two new Councilors' input along with a well -thought out educational program. She argued that, even with the minor changes made so far, the program was still confusing and complicated. Ms. Christie confirmed to Mayor Hoffman that the Council had to use the WEB on Monday nights because either the Planning Commission or the Development Review Commission used the Council Chambers on Monday nights. She clarified that last night the DRC cancelled its scheduled meeting, but she had not known that. Mayor Hoffman indicated that last night he and Ms. Christie discussed finding a way to make the meetings at the WEB more audible to the audience members. He mentioned that their preference was to hold Council meetings in the Council Chambers because of the great sound system. 7. ORDINANCES 7.1 Ordinance 2564, an ordinance of the City of Lake Oswego granting a non-exclusive telecommunications services franchise to Electric Lightwave, LLC Mr. Powell reviewed the background information regarding the City granting franchises (p.69). He explained that federal law required the City to treat competitive local exchange carriers (CLECs), City Council Regular Meeting Minutes Page 4 of 19 November 16, 2010 such as Electric Lightwave, in a competitively neutral manner. He indicated that, while the City could charge up to 7% of a CLEC's gross revenues resulting from their activities within the city, Lake Oswego charged only the 5% typical in the Metro area. He pointed out that, since CLECs passed the franchise fee directly to the customers as though it were a tax, City Councils had to balance generating revenue with a fee imposed directly on the consumer. He reviewed the terms of the franchise agreement and the updates (p.70). He indicated that one update was a refinement of the criteria for requiring removal of their facilities to include removal in the public interest, including a Council determination that undergrounding the facilities was in :he public interest. He mentioned increasing the insurance requirement to $1 million and greater, specificity on what would happen in the case of abandonment of facilities. He thanked Councilor Tierney for his helpful comments, which resulted in some of the changes. He recommended adoption of Ordinance 2564. • Council Questions Mr. Powell indicated to Councilor Hennagin that Electric Lightwave primarily served businesses in the Kruse Way area, and not residences. He indicated Councilor Olson that he did not know of a time when the City audited a company's records showing the basis of the calculation of the franchise fees, as allowed in the agreement. He mentioned that the City has joined group audits of utilities in the past, but such audits were expensive. Mr. McIntyre mentioned that the Finance Department did order an audit of the hotels paying the hotel/motel tax before he joined the staff, and found underpayments. He agreed that the audits were expensive, but the staff could do them at the Council's request. Mr. Powell pointed out that the City paid for the audit unless the payments were 98% or less of what was owed, at which point the company paid for the audit. Councilor Tierney spoke to the Council discussing the revenue potential of franchise fees. He commented that he thought the historical 5% fee was appropriate for these competitive businesses (CLECs), but the City did have more significant franchise renewals coming up, such as Northwest Natural Gas (3%) and PGE (3.5%). He noted the potential in state law for higher fees. He suggested holding this discussion before Mr. Powell started negotiations. Mr. Powell confirmed that the agreements contained provisions to allow the Council to make changes during the contract period. Councilor Tierney discussed the Regional Cable Commission. He mentioned that 20% of the 5% franchise fees paid by Comcast and Frontier went to the Cable Commission. He recalled the discussions about reducing public access, noting that part of the motivation had been cities wanting more revenue back. He suggested that the Council discuss the issue at goal setting. Mr. Powell indicated to Councilor Jordan that the 2008 survey on franchise fees in the state found a wide range of franchise fees charged to Northwest Natural Gas, PGE, and other utilities. He reiterated that, at a certain level, the companies showed the fee on the bill as a city charge, which has always tempered cities charging the full franchise fee allowed by the State. He indicated to Councilor Jordan that Electric Lightwave obtained its first franchise with the City in the late 1990s. He said that the other two active CLECs were New Path Systems and Time Warner Telecommunications. He commented that there were some inactive facilities in the City's right-of-way. Mr. McIntyre informed the Council that, in the Thursday Digest, he would include a summary of the utility rates for all utilities, including the maximum allowed and the 2008 survey. Mayor Hoffman suggested holding a discussion on franchise fees in the first quarter. City Council Regular Meeting Minutes Page 5 of 19 November 16, 2010 Councilor Tierney moved to adopt Ordinance 2564. Councilor Jordan 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. STUDY SESSION 8.1 Natural Area Restoration and Maintenance • Staff Repot Ms. Gilmer introduced Dean Apostle, MIG, Inc. She reviewed i ,is background in management and restoration of Pacific Northwest ecosystems. She indicated that MIG, Inc. hired Trout Mountain Forestry to do the on groundwork. She reviewed Trout Mountain Forestry's experience in forest management strategies. She gave a PowerPoint presentation. She indicated that, in response to the Council direction last June, staff hired MIG, Inc. in August to do parks and rec and natural area system planning. She explained that staff learned from the baseline (existing conditions) analysis of the City's natural areas that natural area and parks management was not as simple as the Council allocating funds and staff deciding which properties to start maintaining. She said that they needed to understand the existing conditions on the ground and how to prioritize and strategize goals in formulating their management focus. She explained that this presentation did not have specific options and funding proposals but rather it presented the preliminary findings on the natural resource management issues in Lake Oswego's parks. She proposed that staff return later with more detailed information on costs and options. She showed a map of the park system, noting that 375 to 400 of the 601 plus acres of City park property were in natural areas of some sort. She reviewed the City's current parks maintenance staff (p.82). She observed that the City's maintenance approach was more responsive than planned, although staff did try to use `the protect the best' philosophy of Portland. Mr. Apostle continued the presentation. He commented that, while the parks and open spaces were well distributed throughout the community, that distribution also led to higher fragmentation and more difficult maintenance. He reviewed the variety of natural areas in Lake Oswego. He observed that more than half the City's acreage was in upland forest, which was the most common habitat type in the region. He noted the rare old growth forest and Pacific Yew trees at the Cornell Natural Area, the regionally rare oak woodlands, the riparian woodlands, the Willamette River riparian cottonwood areas, and the river beaches and rocky coasts. He commented that Lake Oswego had some of the best examples of ash sedge wetlands that he has seen, citing Waluga and Canal Acres in particular. He noted that the City had quite a bit of emerging wetlands with non-native reed canary grass and non-native grassland habitat, such as Stevens Meadow at Luscher Farm. He discussed management issues. He indicated that Lake Oswego had a substantial invasive species problem, as was common in the region. He spoke of safety issues, such as fire risk and falling trees. He commented that Lake Oswego's fire risk was small because its natural areas tended to be moist. He mentioned habitat enhancement opportunities, such as creating more dead trees away from trails to provide more habitat and placing wood in streams. He observed that 80% of a city's effort in an urban natural area management program related to invasive species management. He commented that invasive species management took continuous attention, knowledge, skill, and setting priorities. He indicated that Lake Oswego had the biggest ivy problem in the Portland Metro area, even worse on a per acre basis than at Forest Park in Portland. He mentioned that Lake Oswego also had all the other weeds common to the area. He discussed the stewardship and continuous monitoring required in natural areas management. He spoke of ranger patrols to identify problems early on, especially erosion problems. He City Council Regular Meeting Minutes Page 6 of 19 November 16, 2010 explained how a grass fire could become a brush fire and then a tree fire racing up a slope. He said that there were ways to control fuels to keep the risk as low as possible and Fire Department training in fighting wildland fires. Ms. Gilmer discussed the City's current maintenance work. She presented a chart detailing the work done by the Parks Maintenance staff (p.82). She indicated that, while staff constantly responded to concerned neighbors regarding tree issues, they removed only 20 to 30 hazard trees a year due to the limited budget. She noted the importance of monitoring and removing high priority invasive species (p.82). She mentioned their use of stewardship contracts (when funding was available) in the hiring of the Portland Bureau of Environmental Services (BES) to do invasive plant species removal and restoration activities. She indicated that the most active Friends groups were Springbrook Park, Brookside, and Luscher Farm, all of which had plans annually to do work. She mentioned that the number of miscellaneous volunteer work parties was slowing down. She presented a comparison of Lake Oswego's activities to other cities with a natural area maintenance team (p.82). Mr. Apostle confirmed that there were no cities of Lake Oswego's size in the region with an aggressive plant removal program. Ms. Gilmer mentioned that Eugene had an aggressive program working with wetland and riparian restoration as well as invasive species removal. She pointed out that comparing the per acre budget did not indicate the same level of maintenance because not every agency was doing the same thing. She gave an example of Lake Oswego's $207,000 per acre budget appearing to be comparable to Tualatin Hill's budget but, in reality, $60,000 of Lake Oswego's budget was for hazard tree removal, leaving little money available for invasive species removal. She gave a quick synopsis of the City's accomplishments to date (p.83, 87-88). She noted the City's aggressive acquisition program in the 1990s that bought almost 190 acres to protect habitat but did not have a management plan in place. She indicated that, when the City received a grant for an AmeriCorps position in 2004, it used that position to work towards developing an invasive species removal program and management planning, including an increase in volunteer projects involving the community. With the loss of that position in 2007, the City's efforts significantly dropped. She presented a chart listing the activities done with the AmeriCorps position and City staff between 2004 and 2007 in comparison to City staff activities over the last two years. She noted that staff has continued the ongoing maintenance and the required restored wetland monitoring at Hazelia Field but lacked funding to do any of the other tasks. Mr. Apostle discussed ideas for a management framework. He observed that natural areas needed managing because they were at best semi -natural re -growth from the logging of Lake.. Oswego to the ground for the iron foundries, and much different systems than they were in the past. He commented that the Portland area saw little natural area management prior to 10 years ago. He noted the strong natural area management programs developed by Metro, Portland, and Tualatin Hills over time. He mentioned Ms. Gilmer's involvement in the Urban Ecosystem Restoration Consortium (UERC), which shared knowledge and expertise in the region at an annual conference. He presented a chart showing the different levels of management, from a base level focused on safety to stabilization (holding the line) to improvement to mostly restored to fully restored. He pointed out that the commitment of resources increased in the improvement level but decreased in the restored levels because the focus shifted to the maintenance of a healthy system, as opposed to caring for an unhealthy system. He reviewed the process steps for developing a management plan, beginning with a long-range vision for the ecological character of the property. He indicated that an early step should be a detailed natural resource inventory that set up ecological plots to establish a baseline and to rank sites by quality and rarity. He said that the work his company has done just skimmed the surface City Council Regular Meeting Minutes Page 7 of 19 November 16, 2010 of what was needed, but they would have a preliminary ranking of properties based on their observations. He discussed establishing conservation priorities and developing one and five year objectives for the priority sites. He noted that Lake Oswego already had the pieces of a stewardship program in place, from which it could begin systematic stewardship within its available budget. He commented that they did not have all the answers today, which meant that a program needed to be flexible and able to try something else if a given strategy did not work. He defir-,ed the priority `protecting the best' as identifying those places that were the most natural right now and starting with those, such as Lamont Springs. He confirmed the importance of watching for signs of beginning invasive species invasions and immediately removing the plants before they took hold and became much more difficult to eradicate. He emphasized the importance of also restoring the rare habitats early on so that the City did not lose them. He explained that the tiny City properties scattered throughout the city were dysfunctional from an ecological perspective, covered in weeds and not worth investing much energy into managing. He noted that the City did have some mid-size to large natural areas. He described the City developing its natural area system as a series of networks with corridors connecting three or four properties as linked habitats, in which the sum was greater than the individual parts. He encouraged the City to settle in for gradual continuous progress towards its long-term goals, as opposed to trying to do everything over night. He cited Lamont Springs as an example of a property in good shape that could serve as a model for what the City's forested natural areas could look like. He reiterated that the City needed to pay attention to its oak groves, which were rare habitats. He suggested that the City hire expert field -oriented staff to oversee and coordinate its natural areas management program, citing the effective work of the Clackamas County manager in obtaining grants and initiating work in the parks to restore oaks and woodlands. He observed that Lake Oswego already trained its maintenance staff well with respect to traditional parks, but, like many other cities, it needed to provide additional training with respect to natural areas maintenance. He noted Ms. Gilmer's mention of exploring memos of understanding (MOUs) with neighboring agencies. He indicated that there were some good private sector crews available through contract stewardship to do short-term projects. He spoke of the importance of nurturing the volunteer base stewardship over the long term in order to build a stewardship network between the City, the neighborhoods, and the private landowners. He pointed out that weeds would most likely reseed in public properties from the adjacent private properties. Ms. Gilmer discussed the pros and cons of the various options (p.85) for hiring staff to manage and maintain the City's natural areas at a higher level. She reviewed the stewardship contracts option. She observed that a stable source of funding would enable the City to increase the number of stewardship contracts it managed each year. She indicated that these contracts were a proven method for removing invasive plants and re -planting with native plants, but they did require additional staff to manage and they did not provide any kind of management planning, ground monitoring, grant writing, project development, or volunteer coordination. She reviewed the option of a memo of understanding with another agency, such as Clackamas County, Tualatin Hills, or Portland. She indicated that she knew of no such MOUs in the region, but it was something that could be explored. She noted that these agencies did have a depth of experience and the science resources that would be available to Lake Oswego if the City hired one of them to manage its natural areas. She commented that she did not know if the financial commitment would be more or less than the other options. She pointed out that hiring an outside agency as the manager meant that the City would likely have less involvement in determining and managing its priorities. She mentioned the uncertainty about City Council Regular Meeting Minutes Page 8 of 19 November 16, 2010 whether the community would accept an outside organization as the manager, since it might not be as responsive to citizen inquiries as City staff would be. She reviewed the option of hiring staff. She indicated that hiring one FTE with some contract labor should develop a strong, manageable program for the City. She mentioned the City having more control over priorities and developing the stewardship structure with planning and priorities internally. She noted that this FTE could do all the tasks that the stewardship contracts could not do and provide good responsiveness to citizen inqui ies She spoke of a close relationship between this staff person and Parks Maintenance in training and the decision making process on management planning. She indicated that an FTE involved a greater financial commitment by the City. She pointed out that hiring a full time staff person also meant potentially less funding for contract services. She observed that, should the Council begin this program (under whichever option it chose), it needed to make a long-term commitment to natural area management. She emphasized that the $12,000 per acre over five years ($3.6 million) to restore all the properties was a very rough estimate, given that each property was different. She directed the Council to the materials in the staff report from Portland's natural area plan (pp.89-98). She acknowledged that this plan was more involved than what Lake Oswego needed, but held that it was a good model to guide the City in establishing goals, strategies, and priorities. She commented that the City needed a long-term methodical plan in place, as she did not foresee the City having sufficient money to deal with all the properties at once. She suggested that staff come back with identified strategies and goals, a prioritization matrix (reviewed by the Natural Resources Advisory Board), and options and costs for implementation of the priorities. She indicated that, while they have identified the health of the system, they have not identified the natural resource value of each of the sites in order to determine where the City's primary focus should be. She explained that this made it difficult to provide a dollar figure at this point. Council Questions And Discussion Mr. Apostle confirmed to Councilor Hennagin that he was recommending that, for habitat purposes, the City connect the presently unconnected small areas it owned. He indicated that, as part of the park system planning, they would consider whether the City should sell some of those properties. He commented that, after seeing some of the sites, he did not understand why the City would want to own them, citing as an example a quarter acre parcel along the side of the road covered 100% in invasive species, which might better function as a house site. He acknowledged that there might be legal reasons or physical land characteristics for why the City could not dispose of certain properties. He noted that the City might want to retain small sites close to existing natural areas that could be part of the habitat network. Councilor Hennagin recalled Ms. Gilmer telling the Council as part of the staff report on contracting for invasive species removal at Cook's Butte that volunteers could not keep up the work of keeping invasive species out of large natural areas. Hence, the City contracted for the service. He referenced the chart presented tonight that indicated that the AmeriCorps volunteer worked extensively with volunteers. He questioned whether adding only one FTE to Parks Maintenance would significantly affect keeping invasive species out of even just one area, such as the Cornell Natural Area. He wondered how successful hiring a volunteer coordinator to enhance the volunteer hours would be in combating invasive species. Mr. Apostle recalled asking the recently retired manager of Forest Park how the ivy situation was in Forest Park, given that the No Ivy League had been active for the past 15 years. He reported that the gentleman told him that there was far more ivy now than when the No Ivy League started. He commented that the No Ivy League had hundreds of volunteers, with someone working every weekend, and it was not gaining an inch. City Council Regular Meeting Minutes Page 9 of 19 November 16, 2010 He mentioned that, although he was an organic farmer with a farm in Damascus, he thought that a chemical solution for the ivy problem might be the best way to go. He discussed the work of Jonathan Saul in controlling ivy inexpensively and effectively with a mellow herbicide applied at the right time of the year and in the right weather. Once the City used the services of a professional to eradicate the ivy, a volunteer group could effectively maintain the area with some coordination. Councilor Hennagin recalled reading a newspaper article a couple of months ago about someone spreading acorns in an open field in an attempt to restart an oak grove. Mr. Apostle commenter' that the best way to grow oaks was from acorns. He indicated that the difficulty with a thick grass cover, such as at Steve, is Meadow, was the acorns working their way through the grass roots to reach the soil. Eliminating some of the grass to expose bare soil in which to spread the acorns could work, although it might take a while. Mr. Apostle indicated to Councilor Hennagin that oak trees grew faster than one might think in this area because of the long growing season. He recalled his assessment of some oak trees he saw during the Westlake project as 250 to 300 years old, only to find out from the forester on the team that her increment bore showed the trees at 80 years old. Councilor Olson thanked Mr. Apostle for this information confirming the ivy problem in town. She commented that she has been interested in this sort of program for a long time. She asked if the small areas Councilor Hennagin mentioned were City -owned or developer set -asides. Ms. Gilmer indicated that the consultant inventoried only City properties. Councilor Olson recalled her earlier suggestion that the City consider selling some of its natural areas in order to fund a restoration program. She mentioned her concern that the City had gone on a spending spree to acquire properties but did not put aside any money to maintain the properties. She commented that she thought Mr. Apostle's opinion on what pieces to sell would be valuable. Mr. Apostle indicated to Councilor Olson that, while he had thought that the Iron Mountain area was the most prone to fires, his visit to the Luscher Farm complex changed his mind. He indicated that the meadow complexes in that area were more prone to fire, although there was small likelihood of fire transfer into a forest canopy in those meadows. Councilor Olson commented that the information about the old growth trees, Pacific yews, and oak woodlands at Iron Mountain was helpful information for setting priorities. She asked Mr. Apostle for his opinion on how much value Lake Oswego's program to regulate already developed private backyards for habitat and trees added to habitat. Mr. Apostle indicated that he was not familiar with the program, and therefore, he could not evaluate it. Mr. Apostle commented that one of Lake Oswego's advantages was that the tree canopy was maintained throughout the city, which enhanced the habitat value of the City's natural areas. He observed that Lake Oswego had some good habitat in people's backyards, and that such a program could be a good program worth keeping. Mayor Hoffman mentioned that he has heard before that the Council buying spree from 1995 to 2005 bothered people. Having been on Council at the time, he explained that, from his perspective, the City had purchased lands that the owner was going to sell either to the City or to a developer. He recalled that developers at the time were acquiring every property they could, so the City bought what land it could with its limited funds. He recalled that the Councils had been more concerned about maintaining the active recreation areas during that decade, but they did want to save open save for future Councils to take care of. Ms. Gilmer concurred that a lot of bond money in the 1990s went to upgrading active older parks and athletic fields. Mr. Apostle pointed out that what happened in Lake Oswego was very common in the Portland Metro area. A jurisdiction's first step was to set aside lands and its second step was to maintain them. He indicated that Metro, Hillsboro, and Tualatin Hills have all done the same thing. He noted that it has only been in the last six to eight years that jurisdictions have hired professional staff to manage their natural areas. City Council Regular Meeting Minutes Page 10 of 19 November 16, 2010 Ms. Gilmer indicated to Councilor Jordan that staff removed trees in places where it could be a hazard to people using the park, but they left dead tree snags in the park interior, away from trails, for bird habitat. Mr. Apostle indicated to Councilor Jordan that mowing areas like Stevens Meadow was important to continue until the City decided what it wanted to do with those areas. He explained that mowing helped to keep weeds from spreading if the area was mowed before the seeds developed. Fire Chief Ed Wilson indicated to Councilor Jordan that the Fire Department had extensive training in wildland fires but not much experience. He described the work the Department did every spring to prepare for the possibility of a wildland fire in Lake Oswego, including fire prevention education. Councilor Jordan noted that different City departments dealt with education and stewardship of natural lands from different perspectives. She spoke to coordinating the work of these departments in order to avoid duplication of effort. Ms. Gilmer indicated that she was working with Ms. Frisbee and Ms. Rooney to identify individual department priorities and how they inter -related with each other in accomplishing common environmental goals. Ms. Gilmer mentioned that the AmeriCorps staff member spent 10% of his/her time on education and outreach. She spoke to the importance of putting together informational flyers and distributing them door-to-door to neighbors living adjacent to City parks as part of taking a proactive approach to managing City properties. She recalled talking with Ms. Frisbee about how a Parks & Rec staff person charged with management planning and parks maintenance would coordinate educational and outreach efforts with Planning and Engineering. Councilor Jordan stated that the City had professional staff that did a good job and thought these things through. She expressed her appreciation that staff was trying to solve this problem using the best resources available at the City. Mr. Apostle mentioned that Portland's BES did most of the restoration work in Portland parks right now based on the watershed program and paid for out of storm water fees. Councilor Moncrieff commented that she liked BES' watershed approach. She concurred with Councilor Jordan's remarks about using a coordinated effort between the various departments. Ms. Gilmer indicated to Councilor Moncrieff that, while she did not know if the herbicide Mr. Apostle mentioned for ivy was the same herbicide that BES used at Cook's Butte, she did know that BES had a permit through the National Marine Fisheries when working near riparian areas and followed the very stringent NMF guidelines for use of chemicals. Mr. Apostle explained that Mr. Saul mixed the main ingredient in Round Up and Rodeo with a different surfactant that worked better on ivy. Councilor Moncrieff asked if the $12,000 an acre over 5 years that Ms. Gilmer estimated for the cost of ivy removal in all the City's natural areas included using an herbicide or hiring an FTE. Ms. Gilmer clarified that the figure reflected the cost of hiring BES to remove the ivy in an area using a spray and to replant and monitor for three to five years. She referenced the spreadsheets from Portland, in which the Portland staff attempted to quantify the cost per acre of moving acres from fair to good condition (pp.97-98). She stated that her figures were a rough ballpark estimate because staff has not analyzed the needs of each site. Mr. Apostle confirmed to Councilor Moncrieff that he would recommend using herbicides to eradicate the ivy and volunteers to maintain the area afterwards. He mentioned that one of ivy's big advantages was that it did not burn and made parks less flammable, but he did not recommend not removing it for that reason. Councilor Moncrieff mentioned that Lake Oswego did have ivy lovers in town who advocated preserving the ivy, while keeping it off the trees, because it prevented erosion. Mr. Apostle City Council Regular Meeting Minutes Page 11 of 19 November 16, 2010 commented that it was questionable whether ivy prevented erosion because it was shallow -rooted, and anything growing on a slope might do as good a job at preventing surface erosion. Ms. Gilmer indicated to Councilor Moncrieff that the Friends groups' policy enacted by the Council did not reduce the number of Friends groups. She recalled that the intent behind the policy had been to help guide the relationships of the Friends groups with the City, using the Portland policy as a model. She explained that any property on which a Friends group wanted to work had to fall within the City's priorities. Councilor Tierney thanked staff for the report, but pointed out that it was simply more talk, instead of the practical leadership action plan to improve City property maintenance by removing invasive species and replanting with appropriate native species, which the Council resolution had called for. He noted that it also missed the November 1 deadline. He stated his disappointment that the City was not at the point where he had expected staff to be tonight, a point where the City was doing something. He acknowledged the need to think this through but argued that the right thing to do could be an active program to remove invasive species while the City considered the implications and long- term benefits of the program. He noted that 47% of 600 acres meant that 400 acres had two-thirds of their understory covered by invasive species. He reiterated that they needed to start doing something, and not continually think and plan. He said that he wanted to remove some invasive species. Mr. Apostle cautioned the Council that their inventory was a visual inventory. He indicated that, while he was comfortable with their visual assessment of the extent of invasive species on a property, the inventory was not a measured inventory. Councilor Tierney commented that he understood Mr. Apostle to be an expert in the field, and therefore, he trusted his comments. He recalled that, when the Council adopted the Parks & Rec plan and hired a consultant, he had said that he did not want a consultant that told him that the City had a problem with invasive species in their parks: he could see that for himself. Ms. Gilmer explained that she needed to better understand what the City had on the ground in order to establish goals and strategies and to do an accurate proposal for the Council. She remarked that she could spend how ever much money the Council gave her, but in order to spend it best, they needed to understand what the priorities were and to have the monitoring necessary to evaluate whether or not their efforts were successful. She asked for Council approval of a two-month extension to finish this work and come back with some hard findings. She cited the Portland information in the staff report as helpful in Lake Oswego creating a structure to make decisions on how to spend the money. She pointed out that deciding what condition level Council wanted to bring City properties up to and what percentage of properties staff would work on significantly affected the amount of money that the Council would appropriate to do the work and the staffing levels required. Mayor Hoffman commented that the message he heard from staff tonight was that the City could not go out and randomly start eradicating ivy but rather it needed to set priorities as part of protecting the best, restoring the rare, and networking properties into a bigger whole. Mr. Apostle concurred. He gave an example of Aspen Reservoir Park as a property in such bad condition that even throwing a lot of resources at it would not make much headway, whereas maintaining Lamont Springs in its good condition was a more effective use of those resources. Councilor Tierney recalled that the City has had programs in the past to eradicate ivy at Cook's Butte and George Rogers Park. He commented that he was not discounting the need to think this through intelligently but he was frustrated that they were still talking about it and not moving on to doing the work. He reiterated that staff could have presented this report with a specific plan detailing the resources that the City needed to move forward, and done so by November 1. He stated that he wanted to spend less time and money on planning and more money on doing something. City Council Regular Meeting Minutes Page 12 of 19 November 16, 2010 Mr. Apostle pointed out that late winter was the season in which to tackle ivy, usually a sunny week when ivy was growing but other plants were still dormant. He mentioned that Mr. Saul has found that spraying ivy at the right time could achieve a 95% kill rate on the first action. Councilor Tierney pointed out that late winter was in two months and staff proposed to come back and talk some more about it then. Councilor Vizzini expressed his appreciation for Councilor Tierney's call to action but noted that this was a long-term problem, requiring a long-term dedication of resources. He argued that whenever they started, it would be better to be able to prove to taxpayers that the :-ity was spending the money in a targeted and effective way that would build over time. He held that it would be unwise to start randomly pulling ivy without thinking about how to build on the eradication and restoration work. He mentioned that Intertwine, an effort to look at a regional strategy for habitat restoration, was beginning to gain ground. He hoped that there would be an opportunity through that organization to marry Lake Oswego's work to the regional effort and possibly get some regional funding. He advocated for continuing the City's involvement and partnership with Intertwine. Ms. Gilmer indicated to Councilor Vizzini that staff did look at prison work release programs as a resource but met with much opposition from the neighborhoods. She commented that they could look at it again for natural areas, such as the complex at Luscher Farm. Councilor Vizzini mentioned that Portland has been looking at ways to use its eradication and restoration programs as training opportunities in the natural areas workforce development programs and possibly getting some funding from those programs. He suggested that Lake Oswego look into that possibility also. He wondered whether the City had an opportunity to elevate the value of its natural assets to the point where it could sell carbon credits and generate some income. Mr. Apostle commented that that was an interesting issue because right now Lake Oswego's forests were young and still in a carbon sequestration stage where they would build up more carbon for another hundred years before stabilizing as a mature forest with fewer but larger trees. He mentioned his understanding of the carbon markets was that it was easier to use carbon credits to protect a currently unprotected forest than it was to put them into a protected forest. Councilor Vizzini commented that he thought the future lay in thinking about natural area management on a watershed basis, looking at ways that the work could benefit other City programs (such as surface water management, MS4 permit, and ESA), and identifying other funding sources (such as ratepayer dollars or federal and state watershed enhancement dollars) to help do the work. He indicated that Portland was headed in that direction. He stated that the point made in the presentation that they could not reach a sustainable state in the watersheds until they went through the restoration stage was true. He argued that, even though restoration cost more, it was worth it. He spoke to telling this story to the public so that they understood the need to spend more money in the mid-term in order to bring both public and private lands to a sustainable level of watershed health. He described the City's green infrastructure as serving the City's watershed, storm water management, and habitat restoration goals. He pointed out that it had a huge asset value just as any other infrastructure system in the city did. Councilor Olson asked Mr. Apostle for his thoughts on the Rassekh property. Mr. Apostle commented that the whole Luscher Farm complex was probably historically forested and then converted into farms with only the remnant pastures and some farming remaining. He mentioned that his firm was working on a separate plan for the Luscher Farm complex in parallel with the parks system plan. Mr. Apostle pointed out that, while the area ecologically wanted to be a forest, that was not necessarily what Lake Oswego wanted it to be. He indicated that the lowest maintenance would City Council Regular Meeting Minutes Page 13 of 19 November 16, 2010 be re-foresting the area but that was expensive over a long period of time until the canopy closed up. He mentioned Portland's plan for a 300 -acre pasture at Powell Butte surrounded by perimeter forest. Portland planned to extend the forests on the slopes farther up into the pasture along the natural swales but still maintain some large grassy open areas. He commented that, since the Luscher Farm area was similar to Powell Butte, that plan could also work there. However, given its `weedy pasture' state, it would take full-blown restorative work to change it, which he doubted would be a high priority. Ms. Gilmer indicated to Councilor Olson that she world find the name of the chemical that BES used up on Cook's Butte. Councilor Olson mentioned that many neighbors had asked about it. Mr. Apostle indicated to Councilor Jordan that he would have to check with Mr. Saul on exactly where to use and not to use his version of Round Up. He mentioned that the normal Round Up's surfactant was harmful to fish, but he did not know if the different surfactant that Mr. Saul used was approved for use around water. Mr. Apostle indicated to Councilor Hennagin that the native species better suited to preventing erosion on slopes than ivy included salal, although salal was a fire problem. He noted the different factors to consider, such as slope aspect and amount of shade, in deciding which of the deeper - rooted native species to plant. Councilor Vizzini suggested that the City make sure that the proposed FTE be a licensed applicator. Ms. Gilmer mentioned that several parks maintenance staff were licensed applicators. Mayor Hoffman directed the discussion to what direction the Council wanted to give to Ms. Gilmer. Mr. McIntyre suggested a compromise to satisfy the intent of the resolution and to start moving forward with the program while still not mis-targeting the effort. He indicated, should the Council direct staff to return with a supplemental budget request for the next agenda item dealing with education and outreach, that staff could request additional funds to start some targeted ivy pulling, as recommended by Ms. Gilmer and Mr. Apostle. He recalled that two years ago the prior Council adopted the Cook's Butte Master Plan, which has served as a model for parks maintenance. He commented that staff was trying to accomplish something similar here in making sure that they did the work right and that they did it well. Mayor Hoffman spoke of staff returning ultimately with a 10 to 20 year plan that included an action plan. He noted the intent to pick some of the low -hanging fruit by funding an immediate action plan through a supplemental budget. He commented that, while he understood Councilor Tierney's frustration, he did not necessarily share it. Councilor Jordan suggested that staff identify a single parcel, determine the work it needed and its cost, and return to Council with a budget for that project. Mr. McIntyre indicated that staff could do that. He said that staff would return in December. Councilor Moncrieff emphasized the need to look at watershed health and restoration. She spoke of prioritizing the watershed issue and working together with the Clean Streams program. She mentioned possible FEMA funding opportunities also. Mayor Hoffman indicated that his priority would be the watershed over pulling ivy. Councilor Tierney reiterated that he thought that a substantive discussion should have occurred tonight. He argued that the City could move forward intelligently in parallel with actually doing something. He cautioned staff not to make mistakes in an effort to pacify him. Mayor Hoffman raised the question of whether to do watershed or ivy first. Councilor Tierney expressed his hope that the February discussion would be comprehensive enough for the Council to make decisions. Councilor Vizzini questioned whether it was an either or proposition. He framed the question as what was a reasonable budget, what was available in terms of budget resources for a supplemental action, and what could be productively done during this fiscal year. City Council Regular Meeting Minutes Page 14 of 19 November 16, 2010 Councilor Vizzini commented that he heard Councilor Tierney saying that he was willing to support a supplemental budget in order to get some work done this fiscal year. He observed that whatever work was the most productive would ultimately serve the watershed. Mr. Apostle asked if Lake Oswego has identified certain watersheds as higher priorities than other watersheds. The Council indicated that the City has not formally done so. Mr. Apostle spoke of factoring a watershed priority in along with the other priorities. Mayor Hoffman recessed the meeting at 9:14 p.m. for a break. He reconvened the meeting at 9:28 p.m. 8.2 Natural Resource Education and Outreach Proposals • Staff Report Ms. Frisbee introduced the two guests: Gaylen Beatty (Columbia Land Trust) and Ariana Longanecker (Audubon Society). She explained that they would provide an overview of one of the cornerstone programs that staff proposed as part of the City's education and outreach, the backyard consultation series. She reviewed the drivers behind the direction that staff received from Council through Resolution 10-51 last July (p.98). She acknowledged that the City has not done a good job in the past of promoting awareness and communicating with property owners in general and sensitive lands property owners specifically about the purposes and the requirements of the natural resources protection program. She also acknowledged that this vacuum of information contributed to the controversy last year, and that the City has not done enough in the past to encourage and invite volunteer participation in the City's program. She stated that the City heard clearly from the community that they were good stewards and wished to be approached as such. She recognized that, as the City eased the regulations affecting people's use of their backyards, it needed companion efforts to promote participation in the City's program and to educate the public about best practices and City opportunities. She noted that Metro has asked for information about Lake Oswego's education and outreach program in anticipation of the City's December compliance report including an easing of restrictions. Metro expected the City to do more to promote voluntary compliance if it eased the restrictions. She presented the staff proposal for program improvements based on ideas gathered from workshops, open houses, the Task Force, and staff discussion (p.101). She spoke of building on the City's and the region's current successful programs, emphasizing partnerships, and one-on- one interactions. She described outreach and education programs as the ideal vehicle for City staff to work across departments and link the City's resource programs that have common targets, such as sensitive lands, the MS4 permit, water quality efforts, and the City's Urban Forestry Plan. She presented the staff key recommendations. She spoke to the importance of the City participating in the local Watershed Council efforts, including a staff liaison to both the Tryon Creek Watershed Council and the new Oswego Lake Watershed Council (p.100). She recommended participating in the backyard habitat certification program, engaging in a partnership with the Friends of Trees, and starting a small grants program for restoration work by private citizens, citing the project in the Springbrook Creek area done by Audrey Mattison and three neighbors reported in Thursday's Lake Oswego Review (p.101). She discussed the City continuing to provide one-on- one arborist services to property owners (p.102). She discussed the staffing changes needed in order to implement these recommendations, including the work that a City Arborist/Forester and a Watershed Outreach Coordinator would do (p.102). Backyard Habitat Certification Program City Council Regular Meeting Minutes Page 15 of 19 November 16, 2010 Ms. Beatty gave a PowerPoint presentation. She explained that this program began in 2006 as a partnership program in the southwest hills of Portland with Friends groups. It evolved into a citywide program in Portland in partnership with the Columbia Land Trust and the Audubon Society as a way to complement the work that Portland Parks and BES were doing on public lands to remove invasive species and restore natural areas. She indicated that the program's mission was to engage private landowners of one acre or less in removing invasive weeds to create wildlife habitat and in gardening responsibly. She reviewed the four elements of the certification: removal of certain: weeds, planting native plants, increasing wildlife habitat, and storm water management. She :I;entioned that they provided incentives and information to homeowners, including wholesa!e prices on native plants. She indicated that another important piece of the program was working with neighborhood associations in order to connect the backyards that complemented the natural areas. She presented a map of the over 600 participating Backyard Habitat landowners today. She mentioned that what often happened was one homeowner put up a certification sign and then others in the neighborhood began participating in the program, resulting in groupings of homeowners and connecting properties. Ms. Longnecker commented that this program was a great model because it was a non -regulatory approach to engaging landowners and providing education. She described it as a natural complement to Lake Oswego's natural resource protection program. Councilor Olson asked if Ms. Beatty or Ms. Longnecker felt that the onerous regulatory programs in Lake Oswego would be necessary if the City implemented a program like this. Ms. Longnecker said that the program was not a replacement for strong regulation but rather a good complement to strong environmental protections. Mayor Hoffman asked if Portland had an all -voluntary program for natural resource protection. Councilor Olson noted that Portland did have environmental regulations but not on upland tree groves. Councilor Vizzini indicated that Portland Planning & Sustainability was currently developing tree protection policies to add to the City's extensive storm water management policies. He mentioned recently adopted invasive plant removal requirements of private property owners that allowed the City to remove from private land invasive species threatening adjacent public property, which the homeowner did not remove, and bill the homeowner for the work. Councilor Vizzini mentioned that Portland has seen private property owners willing to invest in storm water management when they saw public investment in their neighborhood's infrastructure. He wondered whether the same was true with habitat restoration efforts in the West Hills, Ms. Beatty mentioned conversations they have had with the Portland Bureau of Transportation regarding their work on green streets as an example of the collaborative opportunities available in Portland. • Council Questions and Discussion Ms. Frisbee confirmed to Councilor Tierney that this proposal was a necessary piece of the City's compliance report scheduled for submittal to Metro in December, based on the letter that staff received from Metro last week. She indicated to the Councilor that the December 2010 due date was an extension of the original December 2009 due date, granted by Metro to several cities. Councilor Jordan mentioned her understanding that the letter said that if the City wanted to allow the footprint of an existing dwelling to increase by more than 500 square feet, it needed to have a good educational component in the program in order to be in compliance. She noted the need to have a supplement budget in place as evidence to Metro that the City was in compliance and moving forward. She suggested a $150,000 supplemental budget request to fund pulling ivy as well as the education piece for natural resource protection on private property. City Council Regular Meeting Minutes Page 16 of 19 November 16, 2010 Mr. McIntyre indicated to Mayor Hoffman that staff could bring forward an action plan and a supplemental budget request before the end of the year. He said that the money would come from storm water fees and probably contingency in the General Fund. Councilor Tierney pointed out that this 10 to 20 year long-term program expense increased every year. He questioned how that fit into the long-term financial health of the community and its ability to pay for the program. He acknowledged that they could draw from contingency but noted that contingency was reserves. He expressed his concern about the challenge of keeping everything within the existing revenues. He commented that he had not recognized that adopting the Sensitive Lands Ordinance meant adopting $300,000 for education. He pointed out that there would be individuals joining the Council in January who campaigned in disagreement with the Council's actions. He indicated that he was challenged on how to put it altogether without asking Metro for a delay. Councilor Moncrieff concurred with Councilor Jordan's comments. She described the staff proposal as in line with Section C of the Council's direction to staff to return with a supplemental budget request for enhanced communication and outreach activities per Resolution 10-51A. She pointed out that; while it was a supplemental budget item this year, the Council would have to fund it within existing revenues in the future. She acknowledged to Councilor Tierney that funding it out of existing revenues this year was also an option. She agreed with Councilor Jordan that easing up on restrictions required a complementary outreach program, which the Second Look Task Force had also recommended. She pointed out that it cost money to staff an effective outreach program, to maintain natural lands, and to provide incentives. She indicated that she supported the staff recommendation. Mayor Hoffman commented that what he heard was that if the Council relaxed the restrictions, then it had to make it up some place else, such as reaching out to people on a one-to-one basis. Councilor Vizzini commented that when he had testified on sensitive lands, he had clearly stated that it would cost money and that he fully expected the stewards of Lake Oswego to support the needed investment to bring Lake Oswego's watersheds into a sustainable and healthy condition. He said that he expected this Council to begin to map out how to fund these efforts. He suggested either finding program savings in the General Fund or using General Fund reserves to jump-start a program this year. He mentioned that it took 20 years for Portland to arrive at storm water fees three times Lake Oswego's, and yet people still argued that the fees were insufficient to restore the damage caused by 150 years of industrialization. He emphasized that this Council and future Councils, if they were serious about natural area management, would have to commit to raising the funds either outside the community or within the community and to sustaining the work over time. He spoke of also increasing private actions significantly through incentives and programs similar to those discussed tonight. He argued that, while they needed to spend public dollars prudently, if this was a true value of the community, then the Council needed to invest in this work publicly and privately. Councilor Olson concurred with Councilor Tierney. She suggested asking Metro for another year extension. Ms. Frisbee indicated that, while she has heard others in the community suggest that Metro would grant such an extension, in her conversations with Metro, the staff has been firm about meeting the deadline this year. She said that she could ask but reiterated that Metro has not wanted to talk about extensions. Councilor Olson commented that Ms. Gilmer and Ms. Frisbee's reports tonight made it clear that the City as a property owner has not been doing much to comply with Metro Titles 3 and 13. She held that instead, the City has put unreasonable requirements and onerous regulations on 10% of the citizens to accomplish an unknown, given that there was no data indicating that the Sensitive Lands program has achieved anything since its implementation. She emphasized that there was City Council Regular Meeting Minutes Page 17 of 19 November 16, 2010 much more beneficial and effective work that the City could and should do on City -owned properties. She argued that implementing the actions and programs suggested by staff would go a long way toward complying with Metro. She acknowledged that the programs cost money, but contended that implementing some of these programs would have everyone in the city participating and helping to pay for the programs instead of just 10% of the people. She concurred with Councilor Tierney that natural area restoration should be expedited. She indicated her yvillingness to support the financial resources to do so, but not with a supplemental budget or out of contingency. She argued for cutting something else. She held that the other items presented by Ms. Frisbee needed more Council discussion within the context of its other priorities. She stated her preference that the City obtain an extension, that the Council discuss sensitive lands compliance and a comprehensive approach to implementing these proposals, and that staff then go to Metro. She pointed out that they have not discussed selling some of the non -valuable properties to fund programs, as mentioned this evening. She said that the Natural Resource Coordinator position that both staff reports indicated was eliminated was not actually eliminated but rather turned into a management analyst position by Mr. McIntyre. She pointed out that neither that decision nor the conscious decision to eliminate the arborist by attrition and to use the money to hire different FTEs represented a decrease in the budget. Councilor Hennagin commented that he would like to see future Councils work towards a comprehensive plan with a watershed approach but he thought that they needed to do it one step at a time. Ms. Frisbee indicated to the Councilor that staff's first priority in offering the one-on- one education and communication services would be to those affected by the Sensitive Lands Ordinance. Councilor Hennagin wondered what education resources and assistance the Audubon Society and the Columbia River Land Trust could provide to individuals that might reduce City funding. Ms. Frisbee indicated that their program was not a free program. She explained that these groups would with partner with the Friends of Tryon Creek, which already offered this service at a low rate, to expand the program with an even more efficient rate. Mayor Hoffman pointed out that staff has done what the Council directed it to do in making this proposal, and now Council needed to provide more direction. He indicated his support of the staff proposal as submitted in the report. Councilor Jordan expressed her support for the proposal also. She commented that, by stepping forward and agreeing to start this program, the Council was spreading the responsibility to protect the community's natural resources to all citizens because it would use taxpayer dollars to pay for the program. She mentioned her expectation that staff would also bring back a supplemental budget request for invasive species removal, and that the two programs would share in the educational and outreach efforts. She commented that, having heard much from the Councilors -elect about their concern for sensitive lands and ivy removal, she expected it to be a priority next year, including how it fit into the budget. She indicated that, while not taking the funding from the General Fund would be great, if they had to, doing so indicated the Council's willingness to move forward on this issue of concern in the community. Ms. Frisbee indicated to Councilor Tierney that the estimated net $50,000 for a City arborist included the $28,000 contract for the part-time arborist already working for the City. She confirmed that staff's intention was to list both the new positions as hires, and not under contract. Councilor Tierney indicated his discomfort with this proposal, and commented that he would be a little more comfortable if these positions were contract until the City sorted out what it was going to do. Ms. Frisbee committed to reviewing those positions with Mr. McIntyre. City Council Regular Meeting Minutes Page 18 of 19 November 16, 2010 Councilor Olson observed that the City already spent much staff time and money regulating sensitive lands property owners under the current City program. She wondered, if the City was going to spend this kind of money, staff time, and energy to work directly with all the current sensitive lands property owners, whether they could reconsider taking the upland tree grove regulations off private backyards because this educational effort replaced those regulations. Mayor Hoffman asked if it was the Council's direction to Ms. Frisbee to move ahead as recommended in the November 8, 2010, staff report with :ire caveat of looking at independent contractors. Mr. McIntyre indicated to Councilor Jordan that staff would make sure to coordinate and integrate the sensitive lands and parks programs to avoid duplication of services, such as an arborist in each department. He asked the Council members to let him know privately before December what programs they would consider cutting. He noted that, otherwise he would come forward with a supplemental budget and then, through the budget process next year, reprioritize programs, if that was Council's desire. Mayor Hoffman asked for a nod of heads about moving forward as recommended by Ms. Frisbee. He indicated that there were five in support and two against (Councilors Tierney and Olson). 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. EXECUTIVE SESSION Mayor Hoffman recessed the meeting at 10:14 p.m. to Executive Session pursuant to ORS 192.660 (2) (e) to conduct deliberations with persons designated to negotiate real property transactions. Mr. Powell reviewed the Executive Session parameters. 12. RETURN TO OPEN SESSION Mayor Hoffman reconvened the open meeting at 10:40 p.m. 13. ADJOURNMENT Mayor Hoffman adjourned the meeting at 10:40 p.m. APPROVED BY THE CITY COUNCIL: ON February 15, 2011 J k D. Hoffma ,' Mayor City Council Regular Meeting Minutes November 16, 2010 Respectfully submitted, Robyn 4hristie City Recorder Page 19 of 19