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HomeMy WebLinkAboutApproved Minutes - 2007-10-02 PM /�Of LAN[OS\. '°' `°\ CITY COUNCIL REGULAR MEETING MINUTES �'� �� October 2, 2007 l � \��; �4EWN Mayor Judie Hammerstad called the regular City Council meeting to order at 6:07 p.m. on October 2, 2007, in the City Council Chambers, 380 A Avenue. Present: Mayor Hammerstad, Councilors Turchi (left 8:00), Groznik, Jordan, Hennagin, Johnson, and McPeak were present. Staff Present:Stephan Lashbrook, Interim City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Joel Komarek, City Engineer; Richard Seals, Finance Director; Jane Heisler, Public Affairs Director; Denny Egner, Long Range Planning Manager; Sidaro Sin, Senior Planner; David Donaldson, Assistant City Manager; Kim Gilmer, Parks and Recreation Director Youth Council: Ashna Reddy, Rachel Sebastian, Evan Green,John Olsoni 3. PRESENTATIONS 3.1 Community Planning Month Proclamation Councilor Johnson read the Community Planning Month Proclamation. 3.2 Recognition by the First Addition Neighborhood as an American Planning Association Great Neighborhood Mr. Egner gave a PowerPoint presentation describing the American Planning Association's Great Places in America program and criteria. He said that the APA panel of experts selected First Addition as one of 10 Great Neighborhoods out of a field of 80 nominations. He observed that First Addition met the primary criterion of`unique, memorable, or special in some way.' He mentioned First Addition's walkability with access to different services, the work in progress to create the City's first green street along 10`h Avenue, the active neighborhood association, the mix of housing types, and the variety of neighbarhood amenities. He noted that Lake Oswego was the smallest community with a neighborhood selected. Lisa Shaw-Ryan, First Addition Neighborhood Association Chair, expressed their excitement in receiving the award. She held that recognizing First Addition as `great' was also recognizing the whole community as `great,' because the same practices occurred throughout the city. Mayor Hammerstad congratulated the neighborhood on its recognition. 3.3 Debt, Taxes, Utility Bills, and Estimated Costs of Upcoming Projects Mr. Seals gave a PowerPoint presentation. He explained that healthy balance sheets included a well-proportioned ratio of debt to total assets. He mentioned the City's four categories of debt: general obligation (GO), revenue bonds, urban renewal, and line of credit. He noted that some of the City's 10 different bond issues would be paid off within the next one to two years, while others had 18 years to go. He indicated that the City debt load of$79 million represented roughly 30% of its total assets of $272 million(calculated on an historical cost basis since 1910). He estimated that the community's assets had a current value of$8 billion, while the City's assets had a current value of$1 billion. Therefore, the City's debt load was less than 10% of the dollar figure used by the credit rating agencies, resulting in a AAA bond rating far Lake Oswego. Councilor Hennagin asked what the accounting logic was behind measuring the GO bond rating against the City's assets, as opposed to the community's assets. Mr. Seals said that debt per capita City Council Regular Meeting Minutes Page 1 of 13 October 2, 2007 was another way to measure value, which staff used in other arenas. He commented that typically accountants referred only to their balance sheet in determining credit worthiness for taking on debt. He concurred with Councilor McPeak that the credit rating agencies needed a standardized way to compare municipalities to each other. He mentioned that, in looking at the balance sheets of similar AAA -rated cities, he saw a debt load percentage similar to Lake Oswego's percentage. He observed that credit rating looked at a city's capacity and willingness to take on debt as much as anything else. He described how the two major types of debt were paid: the $28 million in GO debt was paid through taxes, while the revenue bonds were paid through utility bills. He indicated to Councilor McPeak that the third type of debt, urban renewal debt, was based on tax increment financing, which related to the incremental growth in the urban renewal area, as opposed to relating directly to citizens' taxes. He explained that the City has yet to determine how it would pay the fourth type of debt, the line of credit. He said that currently it was paying the $1 million of annual interest out of general tax reserves (money previously collected). He noted that the property secured the debt. He presented the four projects over the next five years that staff anticipated needing bond issues: the interceptor line ($90 million), water improvements ($5 million), surface water projects ($5 million), and purchase of the West End Building property ($20 million). He presented slides on the financial impact of the four bond measures on the average home owner. He said that his best estimate for the impact on the average property owner was an increase of $43 a month, or $516 a year, over the next five to ten years. He discussed the difference in how California and Oregon calculated property taxes. California based its property tax assessment on the most recent purchase price of a home. This led to inequities in property taxes paid by neighboring residences, with a homeowner who recently purchased paying far higher taxes than a homeowner who has lived there for many years. He explained that, in Oregon, with Measure 50 (1996) limiting the increase in the assessed value of a home to 3% a year, the sale price of a home did not have the same impact on its assessed value. He noted that, while Oregon tax assessors reassessed the value of a home upon its sale, they also discounted that value based on a formula that compared the average assessed values of homes in the area. He explained that, in Lake Oswego, the average assessed home value was $300,000, even though the average current sale prices were in the $600,000 range, and the Clackamas County Assessor's Office gave an average market value in the $500,000 range. He emphasized that the County based the property tax bill on the assessed value. He confirmed to Mayor Hammerstad that the median assessed value was $250,000. Mayor Hammerstad emphasized that the financial impact would be phased in over time. She observed that materials passed around in the community did not contain accurate information. She thanked Mr. Seals for providing this information. Councilor Jordan commented that Measure 50's limit of a 3% annual increase on assessed property value meant that any local government, with ever increasing costs, could not keep pace with the cost of projects to fix aging infrastructure or the cost of increased services demanded by citizens. She described these bonds as the citizens' opportunity to see what they were getting for their money. 4. CONSENT AGENDA Youth Councilor Reddy read the Consent Agenda. Councilor Turchi moved to accept the Consent Agenda. Councilor Jordan seconded the motion. A voice vote was taken, and the motion passed with Mayor Hammerstad, Councilors Turchi, Groznik, Jordan, Hennagin, Johnson, and McPeak voting `aye.' (7-0) City Council Regular Meeting Minutes Page 2 of 13 October 2, 2007 4.1 REPORTS 4.1.1 Request to hire employees Action: Authorize hiring employees as recommended: Cydney Winslow, Parks and Recreation, temporary part-time Leslie Roth, Parks and Recreation, temporary on call part time Jodi Ridley, Police, October 9-26, temporary part time Steve Rauch, on call reference librarian 4.2 APPROVAL OF MINUTES 4.2.1 September 4, 2007, morning meeting 4.2.2 September 10, 2007, special meeting 4.2.3 September 18, 2007, morning meeting Action: Approve minutes as written 5. ITEMS REMOVED FROM THE CONSENT AGENDA 6. CITIZEN COMMENT Mayor Hammerstad explained that those wishing to testify regarding the reports under Agenda Item 8 could do so at the time Council heard the report. • Sherry Finnegan, 128 Condolea Drive Ms. Finnegan invited the Council and Lake Oswego citizens to the Voters' Forum on the Lake Oswego Ballot Measures 3-269 and 3-273, sponsored by LONAC and the League of Women Voters of Clackamas County. She said that it would be held on Wednesday, October 17, at 7:30 p.m. at the Lakewood Center Auditorium. • Lisa Shaw -Ryan, 745 Fourth Street, First Addition Neighborhood Association Ms. Shaw -Ryan spoke in support of the Lakewood Neighborhood Association's request to discuss further the deconstruction of the US Bank building. She said that both First Addition and the Downtown Business District were interested in exploring the action further. • Brenda Hart, 179 North Shore Road, Lakewood Neighborhood Association Ms. Hart asked the Council to consider delaying the deconstruction of the US Bank building, citing the pending pre -application by LORA for deconstruction of the building and construction of the Lake Oswego Lake Park. She asked whether the City could use the building as a City Hall Annex to alleviate current staff overcrowding at City Hall, pending the outcome of the Safeco property vote. She questioned the timing of tearing down this building while citizens were thinking about their votes on the two Lake Oswego ballot initiatives, and the timing of building a new park at the same time as residents faced rate increases to pay for the sewer interceptor. She said that the Lakewood Neighborhood would appreciate the opportunity to participate in the process. Mayor Hammerstad noted that the park was part of the urban renewal plan to open up public connections to the lake. She said that the Council would take Ms. Hart's comments into consideration. 7. PUBLIC HEARINGS 7.1 Resolution 07-80, adopting standards, criteria and policy directives to be used in hiring a City Manager Mr. Powell explained that State law required a City Council to hold a public hearing on the standards, criteria, and policy directives that it had to adopt before discussing city manager candidates in Executive Session. He reviewed the hearing procedures and testimony time limits. City Council Regular Meeting Minutes Page 3 of 13 October 2, 2007 STAFF REPORT Mr. Donaldson noted that the resolution included the criteria for the city manager position, as well as a draft profile of the ideal candidate. He said that staff has received public input so far from six to eight people via the Internet and the last public meeting. He explained that the executive recruiter would begin work after receiving the final profile. He mentioned the candidate filing deadline of November 21. He indicated that they were on schedule, with Mr. Avery able to meet with the Council to review candidates in mid-December, and interviews scheduled for January. Mayor Hammerstad pointed out that the criteria in the resolution were not all inclusive. The Council would consider input received from the public. PUBLIC TESTIMONY Mayor Hammerstad opened the public hearing. • Jerry Wheeler, Chamber of Commerce Executive Officer, 13594 Blazer Trail Mr. Wheeler presented the recommendations of the Chamber's Government Affairs Committee on qualifications for the new City Manager. He mentioned prior positive experiences working with the business community, experience with redevelopment of multiple business areas, proven experience at administering or creating clear and consistent planning and development codes and processes, and experience in serving a developing community, as opposed to a mature and static one. He said that the person should be a good communicator, a consensus builder, and a leader (as opposed to an administrator). He spoke of the person having an understanding of the past, as well as a vision for moving the community forward. He suggested that the Council appoint a Selection Committee to work with Mr. Avery, manned by representatives from a cross section of the community. He suggested dealing with the confidentiality concerns by having each committee member sign a confidentiality agreement. Mayor Hammerstad expressed her appreciation for the recommendation. She said that the Council would discuss with Mr. Avery how to include public participation without violating confidentiality. Mayor Hammerstad closed the hearing. Councilor Hennagin moved to adopt Resolution 07-80. Councilor Jordan seconded the motion. Councilor Turchi moved to amend the motion to include the words "prior positive experience working with the business community." Councilors Hennagin and Jordan accepted the amendment. A voice vote was taken, and the motion passed with Mayor Hammerstad, Councilors Turchi, Groznik, Jordan, Hennagin, Johnson, and McPeak voting `aye.' (7-0) Councilor Groznik reinforced the Mayor's comment that this resolution was not all inclusive, nor did it exclude anything. He noted that the Council was looking for someone who had successful experience in working with neighborhood groups, as well as success in working with businesses. 7.2 Ordinance 2497, an ordinance annexing to the City of Lake Oswego six parcels comprising approximately 3.88 acres at 4790, 4725, 4855, 4813 and 4700 Upper Drive and the adjacent road right-of-way; declaring City of Lake Oswego Zoning pursuant to LOC 50.05.025; and removing the parcels from certain districts (AN 07-0002). Mayor Hammerstad read Ordinance 2497. Mr. Powell reviewed the standard hearing procedures for a land use hearing. He asked the Council members to declare any ex parte contacts, bias, or conflicts of interest. City Council Regular Meeting Minutes Page 4 of 13 October 2, 2007 Councilor Johnson recused herself from the hearing, as her grandmother owned property near the subject properties. Councilor Jordan declared that she lived on Upper Drive, but not near the subject properties. There were no challenges from the audience. STAFF REPORT Mr. Sin gave a PowerPoint presentation. He reviewed the location of the six parcels in relation to the City's boundaries, noting that the parcels would receive a City zoning designation of R-7.5. He mentioned that the City's Natural Resources Planner visited the site at 4855 Upper Drive in response to reports of possible clearing, but found that what clearing had occurred did not meet the standards for application of Resolution 04-38. He said that the Planner also did not find that the trees on the site met the standards for a resource conservation zone. He noted the various State and Metro annexation criteria. He reviewed the location of urban services available to serve the area, noting that any future development would have to address the lack of storm drains in the area. He mentioned that the properties would remain in the Lake Grove Park District and Lake Grove Water District, but be removed from the Lake Grove Rural Fire District, the Clackamas County Enhanced Sheriff s Patrol District, and the Clackamas County Surface Water Management Agency. He stated that the application complied with all applicable State statutes and Metro code requirements. He recommended approval. PUBLIC TESTIMONY Mayor Hammerstad opened the public hearing. OPPOSITION • Mike Buckman, property owner at 4950 and 4660 Upper Drive Mr. Buckman said that he partially opposed the annexation because the City proposed annexing a portion of the road that belonged to him. He stated that his property had no City property around it. He referenced discussions with City staff regarding his properties in regards to the current sewer extension project. He said that staff has not yet fulfilled any of the offers and/or promises made to him. He said that he did not oppose the annexation of the other six properties, but he did not understand how the City could annex the road running across his property. Mr. Sin explained that the City typically annexed all of the road right-of-way in order to achieve the most efficient and cost-effective provision of services and improvements. He said that the City annexing the road did not give it any additional leverage in terms of an island annexation, because that whole area was already islanded by the city. Mr. Buckman argued that the appropriate time to annex the road was when its associated properties annexed to the city. Mr. Sin said that the City liked to annex the properties all at once, but when that did not happen, it annexed all the right-of-way in order to provide for economies of scale. He indicated that Mr. Buckman would still own the land of the road, as the City did not take title to it. Mayor Hammerstad cited Atwater Road as an example of a road partially in the city and partially in the county; the 150 feet in the county has totally deteriorated. She argued that it made no sense for the City to leave a small portion of a road unmaintained, given that the County would not maintain it. She concurred with Mr. Sin that it made more sense for the City to annex the whole right-of-way in order to provide for a more cohesive provision of services. Mr. Buckman indicated to Councilor McPeak that he understood how the concept of right-of-way worked. Councilor McPeak commented that the City and the County had an agreement in which the City took over these roads during annexations as a matter of efficiency. City Council Regular Meeting Minutes Page 5 of 13 October 2, 2007 Mr. Buckman commented that, given that the City reneged on two offers it made him to run the sewer project across his property, he was not in a mood to give up anything else to the City. He concurred with Councilor Turchi that it did not make sense for the City to put utilities in a road and not own the surface above the road for access purposes. Councilor Turchi recalled hearing reports over the last few years about septic system seepage in the neighborhood starting to get down into West Bay, as well as the finding of high bacteria levels in the natural area in that vicinity. He commented that, while these were voluntary annexations, there was a public health aspect to it. He held that the City owed it to its citizens to deal with these issues in the most efficient and effective way possible; gerrymandering things in just cost more money in the long run. He spoke to working on Mr. Buckman's problem with the staff. Councilor Jordan said that, while she understood that the property owner was not happy with the City right now, she thought that it did not make sense not to annex such a short piece when the City would maintain the rest of the road anyway. Mayor Hammerstad closed the hearing. Councilor Jordan moved to adopt Ordinance 2497. Councilor McPeak seconded the motion. Councilor Turchi said that, while he has voted against annexations recently because of a quirk in the City's PUD ordinance, he would vote for this annexation in order to provide adequate services for maintaining a clean environment in the area. A voice vote was taken, and the motion passed with Mayor Hammerstad, Councilors Turchi, Groznik, Jordan, Hennagin, and McPeak voting `aye.' (6-0) 7.3 Resolution 07-58, authorizing a contract amendment with Brown and Caldwell regarding replacement of the Oswego Lake Interceptor Sewer STAFF REPORT Mr. Komarek mentioned that he was seeking the Council's approval in its role as the Lake Oswego Public Contract Review Board for authorization to execute an amendment to the engineering contract that the City had with the firm of Brown and Caldwell. He noted that the firm won the City contract for pre -design engineering services related to the lake interceptor project through the 2002 competitive bidding process. He reviewed the Lake Oswego public contracting procurement rules. He described the City's 2002 competitive bidding process that resulted in the selection of Brown and Caldwell to do the work. He held that this special procurement amendment did not diminish competition because the City used a competitive bid process for the initial contract. He directed the Council to page 108 in the staff report, where he presented the likely costs of other consulting firms to do the same work in lieu of Brown and Caldwell, including the six months needed to review the past five years of project documentation in order to reach Brown and Caldwell's level of experience and knowledge about the project. He pointed out that a new competitive bid process would take three to four months of additional staff time, and put the City behind on meeting the State Department of Environmental Quality's next milestone deadline date of September 1, 2008, for 50% completion of design plans. He mentioned that, with the Council's selection of the preferred alternative in August, staff has determined that construction needed to start well in advance of the state -mandated start date of October 1, 2009. They anticipated starting construction as early as Fall 2008. He emphasized that time was of the essence in getting through the design process in order to begin construction on schedule. He pointed out that the quicker the City could start construction and complete the project, the quicker it could eliminate the overflows from Oswego Lake, which was a clear public health issue. He asked for Council approval of the resolution. COUNCIL DISCUSSION City Council Regular Meeting Minutes Page 6 of 13 October 2, 2007 Mayor Hammerstad noted that staff briefed the Council earlier on this matter. Councilor McPeak commented that the Council had a duty to protect the interests of Lake Oswego taxpayers. She pointed out that it was easier to do that through a competitive bid process, but, in lieu of that process, a compelling staff argument for why competitive bidding was not appropriate was acceptable. She thanked Mr. Komarek for his arguments. PUBLIC TESTIMONY Mayor Hammerstad opened the public hearing. There was no testimony. She closed the public hearing. QUESTIONS OF STAFF Mr. Komarek confirmed to Councilor Jordan that the expense would come out of the revenue bonds that Council approved last month. Councilor Hennagin thanked Mr. Komarek for his presentation. He referenced his request during the staff briefing for assurance for the citizens of Lake Oswego that there were controls in place to insure that the City was not paying more for the services than was reasonable under the circumstances. He said that staff has assured him that there were checks and balances in place, and that this was a reasonable fee for the contracted work. Councilor McPeak moved to adopt Resolution 07-58. Councilor Hennagin seconded the motion. A voice vote was taken, and the motion passed with Mayor Hammerstad, Councilors Turchi, Groznik, Jordan, Hennagin, Johnson, and McPeak voting `aye.' (7-0) 7.4 Ordinance 2495, a special ordinance of the City Council of the City of Lake Oswego vacating Pearcy Street between Oak Street and Laurel Street. Councilor Turchi moved to continue the public hearing for Ordinance 2495 to November 20, 2007. Councilor Jordan seconded the motion. A voice vote was taken, and the motion passed with Mayor Hammerstad, Councilors Turchi, Groznik, Jordan, Hennagin, Johnson, and McPeak voting `aye.' (7-0) 8. REPORTS 8.1 Request the City Council authorize the Parks and Recreation Director to enter into a contractual agreement with the 47th Avenue Farm to operate a Community Supported Agricultural farm at Luscher Farm Ms. Gilmer asked for authorization to enter into an agreement with the 47th Avenue Farms CSA (Community Supported Agriculture). She explained that CSAs were local farms supported through subscription shares bought by shareholders, who then received produce throughout the season. She mentioned that CSAs typically used sustainable and/or organic farming practices. She said that Lake Oswego entered into the original contract with the 47th Avenue Farm in 2003. This re- negotiated three-year contract would run through 2010. She reviewed the contract provisions. She noted that the allowed activities were farming on up to 12.5 acres. She pointed out the location of the new storage barn replacing the one removed for the artificial turf field. She said that they have increased storage to 1,000 square feet, and added an area up to 6,000 square feet for hoop houses (temporary greenhouses) to allow the farmer to germinate and grow plants on site. She noted the addition of a cold storage unit in the storage area per the farmer's request. She reviewed the graduated noticing period added to the termination clause of the contract, noting that the farmer needed compensation for her investment, should the City give short notice. She confirmed to Councilor Turchi that the City originally purchased Luscher Farm in 1990 with a bond measure specifically intended to purchase park property and active ball fields. She confirmed that the City never built those facilities due to lack of money and the property location outside of the Urban Growth Boundary. She concurred that the existing uses of a community garden and the City Council Regular Meeting Minutes Page 7 of 13 October 2, 2007 farm, while consistent with open space uses, were not consistent with what the voters had voted on in 1990. Councilor Turchi argued that the government choosing to use something in a different way than what was represented to the voters went to the heart of the issue of the credibility of local government. He agreed that it was fine to use the land for appropriate temporary uses. He expressed his concern that the sweat equity going into the land to make it a better place to farm might somehow cancel out the original intent of the people in voting on the bond measure that paid for the property. He held that one day this area would come inside the Urban Growth Boundary. When it did, he thought it reasonable for the citizens to expect the City to use the property in accordance with the intent of the bond measure. He said that he would vote in support of the request, but he was concerned that those passionately involved with the farm use understand that it was only a temporary situation. The sweat equity invested did not cancel out the substantial financial investment made by citizens intending it for a different purpose and use. PUBLIC TESTIMONY • Charlotte Chamberlain, 47th Avenue Farm member, Portland, Oregon. Ms. Chamberlain said that, as a six-year member, she continued to benefit greatly from this local agriculture use at Luscher Farm. She referenced her work with the Friends of Farming at Luscher Farm in noting that this use was in keeping with the goal of the historical and cultural preservation of Luscher Farm. She concurred with Councilor Turchi that it would be important to honor the voters' original intent, but pointed out that they needed to look at the original language in order to determine that exactly. She urged the Council to continue its support of local agriculture and food system security in Lake Oswego by voting for the request. She encouraged the Council to figure out a way to deal with the development pressures caused by a growing population, while retaining Luscher Farm for its history. She referenced her work on the Portland Visioning Committee in stating that the challenges they worked on in that committee were also faced by the other surrounding regions. • Derrik Kevil, Wilsonville Mr. Kevil said that he just moved to Wilsonville from Lake Oswego. He described the unique community center developing at Luscher Farm, which included a community garden, a dog park, the CSA, wetlands, trails, and the children's garden, with the farm as the centerpiece. He argued that the CSA farm was the best way to meet the Luscher Farm Master Plan's intent to retain the historic aspect of the farm as a mid -20th century farm. He noted that the Council agreed a couple of months ago that the master plan needed re-evaluating for the entire area because things have changed. He said that he did not see a conflict between retaining the farm and putting in athletic fields. He mentioned that the Friends of Farming were looking into more community outreach and education in conjunction with the farm on issues affecting farmers, the environment, and the food supply. He explained that the reason for the graduated noticing period in the new contract was that a farmer's financial outlay occurred at the beginning of the year with the purchase of seeds and supplies. • Diana Boom, 557 Evergreen Ms. Boom expressed her family's surprise and delight in discovering the CSA. She urged the Council to approve the contract, as it related to sustainability. Mayor Hammerstad closed the public testimony. Councilor Hennagin moved approval of the report and adoption of the contract. Councilor Jordan seconded the motion. City Council Regular Meeting Minutes Page 8 of 13 October 2, 2007 Councilor Hennagin commented that Councilor Turchi's remarks raised some philosophical issues, which he had yet to answer for himself. He observed that, if the Council felt locked into an identified use for a city asset, then it could not adapt to changes as they occurred. He wondered whether they should go through a new public process to find out what the citizens in the community wanted, when there was a 20 year interim since the initial property purchase and master plan. Mr. Powell indicated to Councilor McPeak that the parameters governing the Council's freedom to act depended on the actual language of the bond measure. If the measure stated a particular purpose for the property, then the City had to use the property for that purpose. Councilor McPeak said that she would vote for the contract tonight, but she would like to know soon what the Council could do in this situation. Mr. Powell said that there was no problem having the farm as an interim use; the question was what long-term uses were allowed. Councilor Turchi acknowledged Councilor Hennagin's point, but held that there was a difference between the Council sending a measure to the voters asking for money for specific purposes, and the Council changing those purposes on its own authority. He questioned what assurance people had that the Council would do what it told the voters it would do if it changed things on its own. He agreed that the community has changed, and that one should not tie oneself so tightly to something, especially after 20 years, that one had no flexibility to make changes. He recalled a School District bond measure during his tenure as Rivergrove Elementary School principal that promised funds to the school to improve security; none of the money was spent on the school. He held that the neighbors had the right to be upset about the money not being spent the way the District said it would spend it. He argued that this situation had a similar potential. He reiterated that it was different when the voters voted for something that had been spelled out. Councilor Jordan pointed out that part of Luscher Farm was always supposed to be dedicated to historic farming, whatever else was done on the property. She agreed with gathering the information discussed tonight in order to gain a better understanding over the next three years of how the land might fit into the future. She held that maintaining an actual working farm on the Luscher Farm property, even after the land came inside the UGB, would be a great asset to the community. Councilor Johnson agreed that having a local farm in the area was a huge asset to the community. She referenced two points that Councilor Turchi raised: the community had few playing fields in the area because of lack of money, and the land lay outside the UGB. She pointed out that, when the community re-evaluated the Luscher Farm Master Plan, it might move the farm from its current location if necessary. She said that the future was not definite, but right now there was flexibility for the farm, which fit in well with the community at this point in time. She would support the motion. Mr. Powell reviewed the provisions of the 1990 bond measure used to purchase Luscher Farm, noting the specified uses of a multi -use pathway and trails system, and the acquisition and development of land for parks, open space, and recreation purposes, both inside and outside the city. He observed that it gave very broad parameters for parks and recreation uses, but the Council would have to justify that an ultimate use met the description. Mayor Hammerstad concurred that the community farm has been a great asset to Lake Oswego, and it did not preclude other uses for the land. She suggested having a master plan for the entire area, instead of doing piecemeal development. Councilor McPeak clarified that the City had no intention of developing the area for residential or business uses, but only for passive recreational uses. Mayor Hammerstad noted active recreational uses also. A voice vote was taken, and the motion passed with Mayor Hammerstad, Councilors Turchi, Groznik, Jordan, Hennagin, Johnson, and McPeak voting `aye.' (7-0) Mayor Hammerstad recessed the meeting at 7:55 p.m. for a break. She reconvened the meeting at 7:59 p.m. Councilor Turchi left the meeting at 8:00 p.m. City Council Regular Meeting Minutes Page 9 of 13 October 2, 2007 8.2 Resolution 07-57, Supporting the Lake Oswego to Portland Transit and Trail Alternatives Analysis Steering Committee Recommendations for the Draft Environmental Impact Statement Study for the Highway 43 Corridor Ms. Heisler introduced Ross Roberts, Metro Transit Program Director. She noted that this Steering Committee recommendation was the culmination of a two year process involving citizens, staff, and elected officials looking at which transit alternatives should move forward to the draft environmental impact statement (EIS). Mr. Roberts reviewed the Steering Committee's seven recommendations to the Metro Council regarding the alternatives analysis phase of the five -phase process. He mentioned that this project, within the context of the four active regional transit projects, would fall in behind the Milwaukie Light Rail project because staff saw the possibility of squeezing some extra federal funds into the local pipeline following the first couple years of that project. He explained that, consequently, they would not begin the EIS until Fall 2008 or early 2009. He acknowledged the significant value of the Willamette Shoreline right-of-way ($75 million) in terms of its ability to leverage up to $112 million in federal funds. He pointed out that this reduced the total local contribution to $23 million. He said that the streetcar, the no -build alternative, and an enhanced bus alternative would move forward to the draft EIS phase. He explained that the enhanced bus alternative replaced the bus rapid transit alternative, following the identification of several very difficult issues involved with bus rapid transit. This would allow staff to explore other creative ways to utilize bus service in the corridor. He indicated that both the Macadam Avenue alignment and the Willamette Shoreline right-of-way route would move ahead, as well as possible combinations and connections between the two alignments that might provide creative solutions for dealing with the tight pinch points around condominiums in John's Landing. He noted that only the termini at the potential Albertson's redevelopment site and the Safeway Loop would move forward; the trolley terminus at the foot of A Avenue has been dropped. He discussed the minimum operable segment (MOS), a term used by the Federal Transit Administration (FTA) to describe that part of a project that might be built in phases. If funding would not allow building the line all the way to Lake Oswego, then a temporary stopping point would be at Nevada Street in John's Landing. He noted that the Portland to Lake Oswego trail along the Willamette Shoreline right-of-way had very strong public support. While they were not certain who was the appropriate lead agency or combination of agencies, they were committed to moving the analysis forward in search of creative solutions to reducing the expensive cost and trail alignment problems. He said that the Steering Committee directed staff to identify a budget for the draft EIS ($5 million estimate), to move the trail concept forward, and to set some conditions for local jurisdictions that would help insure a cost-effective project in the future. In addition, the Steering Committee wanted any project in this corridor to be compatible with the Sellwood Bridge. He mentioned that the Committee, at LOPAC's request, included a recommendation to maximize the alternative to establish a safe and attractive pedestrian and bike route from Lake Oswego to Portland, and to minimize negative impacts to residents and property values. Mayor Hammerstad said that the Steering Committee decided to keep the trolley line through John's Landing on the table for the EIS, despite LOPAC's request to remove it, because of its value for matching federal funds. She mentioned that, after suggesting at the morning meeting that Lake Oswego not support the MOS, she talked to Ms. Heisler about it. Ms. Heisler had explained that the FTA liked projects to have an MOS. She noted the addition of Section 3 in the resolution, stating that the Council's support for the study of the MOS should not be viewed as support for Nevada Street as a project City Council Regular Meeting Minutes Page 10 of 13 October 2, 2007 terminus because that would not meet the identified purpose and need for the project, and it would significantly increase the cost of the project. Mayor Hammerstad opened the floor to public testimony. • R.A. Fontes, 310 Second Street Mr. Fontes asked the Council to table Resolution 07-57 pending review and possible corrections to the underlying assumptions of the Lake Oswego to Portland transit study. He said that the information provided by Metro did not make sense. He questioned the data showing that an evening peak hour bus trip from PSU to Lake Oswego would take 42 minutes, when available evidence suggested otherwise. He held that off-peak bus trips should not take more than 24 minutes. He stated that evidence from the Portland and other North American streetcar systems indicated that the streetcar would not make the same trip in 24 minutes. He asked where the thousands of assumed new riders were coming from, given that Lake Oswego and West Linn were not growing much faster than the region. He questioned whether the streetcar fare would be only $3.44, especially if the ridership targets were not met. He urged having a simple independent audit of the process that derived the assumptions in order to verify that the assumptions really were reasonable. He argued that if the assumptions were as off as they appeared to be, then the streetcar would be bad for riders and taxpayers. He indicated to Mayor Hammerstad that he testified before the Steering Committee on July 16. Mayor Hammerstad pointed out that this was only the first step in a process that would be thoroughly vetted, as neither the FTA nor the jurisdictions wanted a project that would not work. She spoke in support of forwarding the recommendations to the EIS for more complete study. Mr. Fontes pointed out that there was time for the independent audit, since Mr. Roberts said that the EIS would not start for another year. Mr. Roberts said that Metro staff was happy to sit down with any citizen to discuss the assumptions, which were based on its travel demand forecasting model. He explained that their detailed methodology was approved by the FTA and was consistent with industry practice. He stated that the assumptions were realistic as far as they could tell, and reflected conditions in 20 years. Youth Councilor Green spoke in support of the streetcar as the best of the three options. He pointed out that it was the only one not using Highway 43, which allowed for shorter travel times, given the congestion on that route. He argued that the right-of-way route was too valuable to give up because of its ability to leverage federal funds. He mentioned the lower operating costs of the streetcar as another factor in making this the best option. He held that it was vital to advance the trail alternative, something that many Lake Oswego citizens supported. Youth Councilor Olsoni held that the Willamette Shoreline right-of-way was the only option that solved all the identified problems. He argued that stopping the project at Nevada Street defeated the purpose of the streetcar providing an express route from Lake Oswego to downtown Portland. He thought it foolish to give up such valuable land. He concurred that the streetcar would run at a lower cost for a longer service period than a bus. He pointed out that, by 2020, the projected growth would push the already -at -capacity Highway 43 greatly over capacity. Lake Oswego needed to pursue as many options as it could to move its citizens quickly and efficiently to downtown Portland. Councilor Groznik moved to pass Resolution 07-57, supporting the Lake Oswego to Portland trail and transit alternative analysis, and forwarding it on for an environmental impact study on the Highway 43 corridor. Councilor Johnson seconded the motion. Councilor Jordan questioned what the MOS would do for Lake Oswego, and whether Lake Oswego would be asked to pay for it if it was all that was built. She argued that stopping at Nevada Street did nothing to improve transit for their Lake Oswego constituents. She acknowledged that the FTA wanted the MOS, but argued that it made no sense for Lake Oswego. City Council Regular Meeting Minutes Page 11 of 13 October 2, 2007 She expressed her appreciation for the Youth Councilors' comments about using the right-of-way to create an express route off the congested streets. She pointed out that the project met the Smart Start goals of moving people from one community to the central city, and providing opportunities for more dense housing and business growth. She reiterated that stopping at the MOS benefited no one in Lake Oswego. Mr. Roberts said that it was not ironclad that the FTA said that a project absolutely must have an MOS. He described the MOS as a safety net, or a fallback, to provide an interim terminus in the event of insufficient funding for the entire project. He recalled the heated discussion between Steering Committee members and LOPAC members about LOPAC's interest in studying an alternative that ended at Nevada Street, with no possibility for future extension. He commented that, while the MOS was proposed for advancement, the intent was to study the full-length project with the MOS as a safety net if needed. Councilor Hennagin thanked the Youth Councilors for informing themselves on the issue and expressing their views. He referenced his long history with the trolley line, from 1986 until he resigned from LOPAC upon his election to the City Council. He said that he had been concerned about LOPAC's recommendations, and that he did not know why they recommended a full stop at Nevada Street. He commented that, as a member of LOPAC, he had thought that the committee had a disproportionately high representation from John's Landing, which was why it recommended a route along Macadam rather than through John's Landing. He said that he was pleased that the Steering Committee advanced the options for the Willamette Shoreline right-of-way, and a full-length line to Lake Oswego to further study. He mentioned his personal opinion that they would need both the streetcar and the enhanced bus service to serve the Highway 43 corridor. He held that running the streetcar on its own right-of-way was a better option than having it fight the traffic on Highway 43 or Macadam. Councilor McPeak said that the term `safety net' for the MOS made sense to her. If one could not get funding for the whole project, then at least it would get something, but that was never the first choice. She asked whether the project had standing for completion of the preferred alternative to Lake Oswego, should additional funds become available, in the event of building the line only to Nevada Street. Mr. Roberts said that it did, as Metro had an agreement with the FTA that committed the federal government to pay whatever its share was. He acknowledged that it could take years to receive all the funding, which could span two surface transportation bills. He reiterated that the intent was to do a full-length project. He confirmed that the EIS (with a shelf life of three years) would allow re- initiation of the project without starting from scratch, if they had to use the MOS option. He indicated to Councilor Jordan that they were in the process of identifying an MOS for the Milwaukie Light Rail project. He explained that they have not completed the travel demand forecasts, which was the tool used to determine the MOS for the streetcar line. He indicated to Mayor Hammerstad that an MOS was common in light rail projects. He commented on the good fortune in this area that all of the Portland light rail projects have been constructed for their entire lengths. He mentioned that the Portland Streetcar did have three different minimal operable segments for its extension on the east side of the river. He pointed out that streetcar construction worked well advancing in smaller segments because it had a relatively low amount of utility relocation. Mayor Hammerstad confirmed to Mr. Powell that the motion was for adoption of the revised resolution presented to the Council this evening by Ms. Heisler. A voice vote was taken, and the motion passed with Mayor Hammerstad, Councilors Groznik, Jordan, Hennagin, Johnson, and McPeak voting `aye.' (6-0) 9. INFORMATION FROM THE COUNCIL 9.1 Councilor Information City Council Regular Meeting Minutes Page 12 of 13 October 2, 2007 Councilor Johnson invited the community to nominate candidates for the Annual Unsung Heroes Award, to be presented on December 4. She reviewed the nomination rules, noting the nomination deadline of October 31. 9.2 Reports of Council Committees, Organizational Committees, and Intergovernmental Committees 10. REPORTS OF OFFICERS 10.1 City Manager 10.2 City Attorney 11. ADJOURNMENT Mayor Hammerstad adjourned the meeting at 8:34 p.m. Respectfully submitted, Robyn Christie City Recorder 2007 e Hammerstad, Mayor City Council Regular Meeting Minutes October 2, 2007 Page 13 of 13