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HomeMy WebLinkAboutApproved Minutes - 2002-01-12 PM COUNCIL RETREAT MINUTES �'�► January 12, 2002 .�__ I Afternoon Session Mayor Judie Hammerstad called the City Council special meeting to order at 8:35 a.m. on January 12, 2002, at the US Bank Community Room—2"d Floor, 120 North State Street. Present: Mayor Hammerstad, Councilors Turchi, Graham, McPeak, Hoffman, Rohde and Schoen. Staff Present: Doug Schmitz, City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Joe Hertzberg, Facilitator Mr. Hertzberg reconvened the meeting at 12:55 p.m. Mr. Hertzberg asked the Council for its thoughts on its interaction with the Boards and Commissions, including any changes it wanted to see in the future. Mayor Hammerstad spoke to hearing the Board and Commission reports before Council goal setting in order to incorporate what they said into the goal setting discussion. She commented that doing so would shorten up the goal setting session. Councilor Rohde indicated that he was proud of LONAC's report this year, as they identified some definite goals with action measures. He said that doing so demonstrated a willingness on LONAC's part to be a more productive partner and to improve their relationship with the Council. Councilor Rohde indicated to Councilor Hoffman that Council members who attended LONAC meetings would still be attacked, as LONAC was a group that was antagonistic to the City. He held that the same thing would happen if Council members attended a Chamber of Commerce Board meeting, a Lake Corporation Board meeting or any other organization meeting. Councilor McPeak commented that she saw the Board and Commission reports as separable from Council goal setting in terms of information and discussion. She remarked that she might have benefited from hearing the reports before the discussion this weekend. Mr. Hertzberg commented that, not only did the Boards and Commissions need the opportunity to provide input into Council goals, but also they needed to tell the Council what their goals were. He observed that the Boards and Commissions understood that much of what they said should not be citywide goals but this was their only opportunity to present to the Council. 3.4 Preliminary Goal Setting: Short list of priority goals Mayor Hammerstad spoke to setting goal statements with individual action items as a framework for organizing the suggested priorities, including those from the Boards and Commissions. Mr. Hertzberg spoke to making sure that they did not simply categorize but that they really did prioritize. Mr. Hertzberg asked for discussion of the items on the white sheet with the purpose of identifying those items from which the Council members would choose their priorities. The Council identified the following potential goal statements with accompanying action items: Fiscal health of the City Recreation and Culture Parks & Recreation master plan Trails master plan City Council Retreat Minutes—Afternoon Session Page 1 of 17 January 12, 2002 Library services Historic resources Arts community Public recreational facilities Long range planning Transportation Funding maintenance Capital improvements Infrastructure Sustainability Neighborhood Livability Infill Compatibility Neighborhood Plans Codification requests Infill Task Force Tree Code Urbanization and Growth Management Annexation West End concerns City/School District Relationship East End projects Public Outreach Councilor Rohde asked where the youth issue fit. Mayor Hammerstad noted that the Lake Oswego Asset Builders Coalition spokesperson asked that the City put a `youth' filter on all its decisions and actions, and to consider how each decision would affect the youth and how youth could affect the goal. Councilor Rohde commented that he and Councilor Turchi agreed that there was nothing for kids to do in Lake Oswego, although they might disagree on how to address the problem. He spoke of possible tax breaks to encourage a bowling alley to locate in town in order to address the problem through the private sector, as opposed to Councilor Turchi possibly wanting a community recreation center. The Councilors each placed 5 dots on the board to indicate his/her top five goals. Mr. Hertzberg pointed out that the majority placed dots on neighborhood livability, recreation and culture, transportation and infrastructure, and urbanization and growth management, indicating that those four had a high priority. 3.5 Fill out goals: Complete list and attach specific expectations and timelines Mr. Hertzberg led the Council in a discussion of each goal statement and the action items to associate with it. • Neighborhood Livability Councilor Hoffman spoke to adopting an ordinance relating to infill development by December 2002. Councilor Schoen suggested using the word `compatibility.' Councilor Rohde commented that he understood `infill' to mean partitioning oversize lots and building new homes on the second lot, as opposed to tearing down an existing home and rebuilding, which he saw as `redevelopment.' The Council discussed the proper wording for the action item and settled on `compatible infill and redevelopment ordinance.' Councilor Rohde spoke to adopting a community forestry plan, including appropriate staffing and funding. Mr. Schmitz indicated to Councilor Hoffman that two years ago the estimated cost of that program was $100,000. Councilor McPeak questioned whether that was the best use of the City's money. City Council Retreat Minutes—Afternoon Session Page 2 of 17 January 12, 2002 Mr. Schmitz described the basics of a community forestry plan. He confirmed to Councilor Hoffman that the plan included educational efforts and encouraging the planting of trees in the public right-of-way. Councilor Hoffman observed that the plan was also part of the storm water plan. Mr. Schmitz indicated to Councilor Rohde that this staff person would not oversee the maintenance of open space purchases. Councilors Rohde and Hoffman each mentioned the extensive briefing on the community forestry plan given to the Council several years ago. Mayor Hammerstad and Councilor McPeak observed that this Council has not discussed the question. Councilor Schoen spoke to determining whether the City had an extra $100,000 to plug into the system, as he did not see hiring a new employee. He commented that if Mr. Schmitz could eliminate two employees and replace them with one employee, which would work. Councilor Rohde mentioned his concern that Lake Oswego's urban forest was degrading overtime because the City was not paying attention to it. Councilor McPeak spoke to completing the tree ordinance revision this year. The Council agreed to Mr. Schmitz' suggested re-wording: consider revision to the tree ordinance. Councilor Hoffman spoke to educating this Council with respect to the community forestry plan. Mayor Hammerstad commented that that was not a goal but they could put it on their list of requested activities. Mayor Hammerstad reviewed the items in this category left over from last year: adoption of neighborhood plans, codifying regulatory issues, revising variances and initiating affordable housing guidelines. Councilor McPeak commented that her reluctance to go with codifying regulatory issues stemmed from a probable misunderstanding of what that meant. Councilor Rohde commented that the concept of neighborhood planning has drifted since the City initiated the program, along with an erosion of support, because of a lack of understanding. He noted that LONAC's first action item under its Goal 1 was a Council study session to educate this Council on the historical precedents that led to neighborhood planning. Mayor Hammerstad suggested a goal of adopting the Lake Forest and Waluga neighborhood plans. Councilor McPeak suggested exploring and considering the creation of a lakefront-zoning district. Mr. Schmitz asked to put this item on the list of study session topics. He pointed out that listing it as a Council goal might unrealistically build up the Lake Corporation's expectations that the Council would approve it. The Council concurred. Councilor Rohde requested a study session on neighborhood planning and codification. Councilor Turchi requested a study session on affordable housing. • Recreation and Culture Councilor Graham suggested funding the 15 plaques requested by the Historic Resources Advisory Board (HRAB). Councilors McPeak and Rohde each disagreed. Councilor Rohde spoke to setting a limit on the number of plaques funded by the City each year. Councilor Graham questioned whether the Mayor's suggestion of`support historic plaque program' was more of a philosophical statement than a goal. The Council agreed on adopting the Parks & Recreation master plan. Councilor McPeak suggested delaying the Arts Commission's request to develop a master plan to a more prosperous year. Councilor Rohde spoke to producing a Trails master plan. The Council discussed what that involved. Councilor Rohde mentioned the use of volunteers up front. He concurred with Councilor McPeak that at some point they would have to bring in a consultant. Mr. Hertzberg City Council Retreat Minutes—Afternoon Session Page 3 of 17 January 12, 2002 recalled that NRAB did not list the trails master plan as a high priority. Councilor Hoffman noted that NRAB requested that funds be made available to hire a consultant to work with NRAB and PRAB on the final Trails master plan. The Council agreed on `develop a Trails master plan' as an action item. Mayor Hammerstad spoke to including an item supporting the library renovations. Councilor Graham commented that a Council goal supporting the renovations could negatively affect the Task Force currently exploring shared use. Councilor Rohde observed that some would say that the Council was getting ahead of the neighborhood association, as some neighbors interpreted an extra hour of children's reading as an expansion of the library. The Council discussed the wording of a library action item. It agreed on the Mayor's suggestion of`supporting enhanced library services.' Councilor Rohde suggested making a decision on the joint library facility by the end of the year. Councilor Graham concurred, as that supported the current process. Mayor Hammerstad pointed out that it did not address that the Council would like some reconfiguration and improvement at the downtown library. Councilor Hoffman commented that he did not know whether the library should be improved, although he was willing to make a decision on it after hearing the information. Mr. Schmitz suggested including the library under the umbrella of`determine the needs of public facilities' in Fiscal Health, since the Council intended to look at City Hall and the maintenance facility anyway. The Council discussed the Arts Commission's three priorities. Mayor Hammerstad observed that the Commission's first two priorities of the Arts Downtown and Arts Chronicle programs were continuations of existing programs and inappropriate as goals for this year. The Council agreed on listing the third priority"adopt and fund a long-range public art plan for Lake Oswego.' The Council discussed the issue of art on the West End. Councilor McPeak spoke to committing to doing something. Councilor Schoen questioned why they could not put three pieces from Arts Downtown in the West End. Councilor Rohde spoke to initiating a West End arts program as a separate program from Arts Downtown. Mr. Schmitz suggested a goal of purchasing a piece of art for the West End. Mayor Hammerstad commented that that was what she thought she had heard but now she heard something different. Councilor Graham spoke in support of including the West End in the Arts Downtown program. She reported that the West End business people at the Chamber 12 at 12 luncheons were very put out that the Arts Downtown program completely ignored the West End. Councilors McPeak and Turchi indicated that Arts Downtown had a different mission. Councilor Turchi asked what would the West End people like to do as a special thing to enhance the quality of their business district. Councilor Hoffman suggested installing five pieces of art on the Kruse Way pathway. Councilor McPeak pointed out that Arts Downtown has stretched the resources of the Parks & Recreation Department and the Arts Commission to the point where they did not have the resources to put five pieces on Kruse Way and to do it right. Councilor Rohde spoke against diluting the focus of the Arts Downtown program by sticking a piece on the West End as well. Councilor Hoffman indicated to Mayor Hammerstad that the West End people have been involved in Arts Downtown from the beginning. He recalled a discussion of doing Arts Downtown for a couple of years, and then working on the West End. The Council agreed to remove the arts in the West End item from the list. City Council Retreat Minutes—Afternoon Session Page 4 of 17 January 12, 2002 Mayor Hammerstad spoke of having access to Springbrook Creek corridor from Boones Ferry. Councilor Turchi spoke to finding unique things to do in the West End, as opposed to replicating East End programs. He recalled his frustration when the School District told him that he could not do something at Lakeridge High because they were not doing it at Lake Oswego High. He argued that they should not let those kinds of arguments take them away from their primary purpose of enhancing both ends of town. Mayor Hammerstad described her vision for the corridor as a place where the Boones Ferry business people could sit on benches, eat lunch and enjoy the area. She suggested naming it the William Stafford Park. She indicated that she did not think it would cost much money. Mr. Schmitz mentioned that they might have to buy or condemn a couple of easements. Councilor Schoen spoke to including field usage fees under this category. Mr. Schmitz observed that the Council needed a study session on this issue. Councilor Hoffman asked to include the affected users and Boards at the study session. Councilor Hoffman raised the question of the City/School facility use agreement. Mr. Schmitz noted that the schools had first dibs on their facilities, which squeezed out other users. He indicated to Councilor Hoffman that the joint use agreement needed tinkering in a couple of places but it did not need a massive overhaul. Mr. Schmitz mentioned talking to the School Superintendent early last year about Council's interest in revisiting the joint use agreement; the Superintendent asked to discuss it next year because of their time-consuming planning and building activity. Councilor Turchi commented that the district would not have time this year either. Councilor Schoen described it as a serious problem. He held that the City had a right to additional time in the new facilities, which doubled the number of gyms, considering the amount of funding coming from the City. Councilor Turchi clarified that the four new gyms at the two high schools and two junior high schools would effectively open up the elementary school gyms, as activities currently booked at the elementary schools transferred to the new secondary school facilities. He indicated that the secondary facilities would not become more available. The Council discussed completing open space acquisitions. Mayor Hammerstad spoke to spending the remaining bond money this year, if possible, because land could cost them more in the future. She concurred with Councilor Rohde that they did not want to purchase land if it was not a good deal. She indicated that she hoped to complete the bond before the time of the urban growth boundary expansion. Councilor Rohde suggested a goal of purchasing open space if available. • Transportation Funding and Infrastructure Councilor Rohde suggested a goal of adopting a transportation utility fee. Councilor McPeak suggested a goal of deciding on a mechanism for permanent funding of road maintenance by June 30. The Council discussed the need for at least six months for the process. Councilor Turchi spoke of developing a rational taxation program and funding mechanism within the context of an analysis of the City's fiscal health and future plans. Councilor Rohde spoke of an education/public outreach process, citing Tualatin's process. Councilor McPeak asked if they wanted to use a public process to decide on a mechanism or make the decision and then educate the public about their decision. Councilor Rohde said both. Councilor Graham asked to hear a presentation on Tualatin's process. Mr. Schmitz explained that if the Council wanted a public vote on a street utility fee, then it would not implement the fee until 2003. He noted that if the Council wanted to use the 33 cents, City Council Retreat Minutes—Afternoon Session Page 5 of 17 January 12, 2002 it would kick in as part of the tax rate on July 1. He confirmed to Councilor Graham that the Council did not have to go to the voters on a street utility fee but it was an option. Councilor McPeak noted that they did not have a deadline. Councilor Turchi mentioned exploring and expanding options for multi-modal transportation. Councilor Rohde explained that the City had two grants for the streetcar program: a trestle repair grant, which they needed to move on, and a feasibility study grant with funds technically not available until 2004 but they might get them sooner. The Council discussed the goal wording and settled on 'to support streetcar linkage to Portland.' Councilor Hoffman commented that keeping this as a goal had the benefit of giving it high visibility. Councilor Rohde spoke to pursuing funding options for the Boones Ferry Corridor. He indicated that he preferred `pursue' to `explore' because `pursue' suggested that the City would actively go after money wherever it might be available. The Council agreed on the wording. Councilor Rohde commented that the other question was whether it was wise to pursue this without reviewing the CIP, as they had listed the Boones Ferry corridor as the number one transportation project in various planning documents. Mr. Schmitz recalled that the Council widened half of Jean Road several years ago. He asked about the other half. He noted that this was Councilor Schoen's last year to get this project on board. Councilor Schoen commented that what the City did made the residents very happy. Councilor Rohde mentioned his interest in exploring a possible partnership with the Chamber to develop a shuttle between downtown Lake Oswego and the West End business district,which failed last time. Councilor Schoen commented that he was also interested in a shuttle. He noted that it would take a year to put something together, as it required intensive staff time. Councilor McPeak asked if there was value in initiating this project while work was underway on Block 138. Councilor Rohde held that there could be, given the possibility of parking problems in the downtown during construction, which a shuttle might alleviate. He agreed to put an east-west shuttle on the list of study session topics. Mr. Schmitz indicated to Councilor Hoffman that the Council did not need to decide on an option for the lake interceptor project during 2002, as it was programmed for FY 2004/05. He said that staff would continue the Springbrook Creek restoration project focusing on a different section. • Urbanization and Growth Management Mr. Hertzberg mentioned that the Council needed to discuss whether it intended to pursue aggressively some annexations, although not necessarily all possible annexations. Councilor Schoen spoke of pursuing both Lake Forest and the island Country Club annexations. Councilor Graham concurred. Councilor McPeak noted that Stampher Road was another island annexation. Mr. Schmitz mentioned Forest Highlands. Councilor Turchi pointed out that the potential development of Forest Highlands could negatively impact the city, whereas the development of Stampher Road would not make much difference to the city. Councilor McPeak commented that she did not support annexation as much as others did. She indicated that her concern lay more in what was the right thing to do as opposed to what the City could get out of it. Councilor Turchi concurred. He described the right thing to do, as identifying which areas outside the city would have the greatest potential impact on the quality of life in Lake Oswego as they developed. He spoke to the Council taking a stand on those areas because it had a reason to do so, and not spending its time and energy on islands that would have little impact on the city. City Council Retreat Minutes—Afternoon Session Page 6 of 17 January 12, 2002 Mayor Hammerstad spoke to waiting on pursuing annexations until next year. She argued that this was not a good thing to do during an election year. She pointed out that this would be a contentious issue and the Council already had several contentious issues, such as density, coming up on which to spend its time and energy. She said that she would agree to pursue island annexations in 2003 at the next Council retreat. Councilor Rohde concurred. Mayor Hammerstad indicated to Councilor Turchi that the City could pursue the Country Club annexation. She noted that it involved so few houses that they could take an individual approach and maintain a calm and cordial manner. She said that she would support this annexation because of the potential danger of degrading the gateway to the city but she did not want it as a goal. Mr. Powell asked about addressing the degradation of natural resources in that unincorporated area. Mayor Ham merstad spoke to reaching a strong dual interest agreement with the County regarding the protection of natural resources in unincorporated areas. She held that doing so spoke to the Council's credibility and the carrot that it could offer. Mr. Powell clarified that staff was looking at an annexation policy where the people wanted to annex but the Council would not annex in the event of degraded natural resources until the people mitigated that degradation. Mayor Hammerstad indicated that she would be willing to look at that sort of thing. Councilor Schoen pointed out that livability was an issue as well as natural resources. Mayor Hammerstad pointed out that the Council had control over things like tree cutting. She described it as a mindset, rather than a goal, that the Council needed in order to be more productive, active participants in intergovernmental issues this year. She mentioned the upcoming Metro issues, the County dual interest agreements, the School District, the state legislature and the Congressional delegation. She held that the Council being more credible and active with other governments was a necessity of leadership. The Council agreed on this goal: pursue dual interest agreement with the County in order to prevent degradation of natural resources and livability. Councilor Hoffman concurred that the Council should annex the Country Club island but noted that it had a lot of work to do first. He suggested starting with a philosophical and fiscal basis for why an island annexation was a wise thing to do by having staff do an analysis of island annexation in the Country Club area, looking at taxes and the annexation policies of other cities, such as Tigard(which was trying to annex Bull Mountain). He mentioned receiving the report in the middle of the year. Mr. Schmitz indicated to Councilor Schoen that the time staff had to spend on that analysis depended on how many goals the Council decided on. Councilor Turchi asked if the Council pursuing a dual interest agreement to protect natural resources and livability in the unincorporated areas took away a major incentive for annexation of those areas. Mayor Hammerstad observed that this was the carrot and the stick situation. She recalled that Cathy Schroyer and Ken Sandblast argued that the City doing this provided an incentive for annexation because people would see that the Council had credibility and that it has done something to protect their livability. She held that it would not matter what the Council did because the additional City taxes would always be there. Mayor Hammerstad concurred with Councilor Turchi that the credibility was with the Council's own constituents. She reiterated that they did not want to take in degraded land. She commented that it was a shame that those city residents living in Forest Highlands had the property next to them (in unincorporated Forest Highlands) degraded. Councilor Graham indicated that she wanted annexation in order to protect the natural resources. Councilor Hoffman observed that at least four of the Councilors felt strongly about pursuing annexation while the Mayor felt strongly about not pursuing annexation this year. City Council Retreat Minutes—Afternoon Session Page 7 of 17 January 12, 2002 Councilor Turchi pointed out that Tualatin developing the gravel pit would put tremendous pressure on the Carman Drive/I-5 intersection, which would spill over into the Lake Forest neighborhood. He spoke of a potential development on Lower Boones Ferry, which would take advantage of the transportation availability in the area. He argued that if they intended to protect the area through annexation, then they had better do it soon or it would be gone. Councilor Graham referenced the last memo about the Tualatin development, which spoke of attempts to accommodate 3,000 cars and the people who wanted to live close to that development. Councilor Schoen observed that the roads were already grid locked. Councilor Graham mentioned her concern that the planning for the Boones Ferry Corridor would come to naught with the expected pressure on that area. The Council discussed what it wanted to do about annexation. Councilor Rohde indicated that he did not agree with annexing Country Club Road. Mayor Hammerstad said that she would like to work towards it during 2002. Councilor Hoffman concurred. He observed that it took a while to get these projects going, given the study time and analysis required. Mr. Schmitz mentioned that they scheduled annexation for a Council study session at the end of January; the Council could give staff direction at that time. Mr. Hertzberg summarized the Council discussion as there was a good chance that the Council would want to aggressively pursue island annexation in the future, and that it wanted to do whatever it could this year to be prepared to jump when the time came. He indicated that what the phrase 'make progress towards' meant was yet to be determined, and it was not a goal. Mr. Hertzberg recessed the meeting at 2:30 p.m. for a break. He reconvened the meeting at 2:35 p.m. • East End Projects Mr. Hertzberg noted that the first item was `adopt the East End plan update.' He asked about adopting the Foothills plan. Councilor Turchi indicated to Councilor Hoffman that the Foothills plan would be ready for Council adoption by the end of the year. Mayor Hammerstad acknowledged Councilor Hoffman's point that the concept could be too expensive but confirmed that they would adopt something, if not the Foothills plan specifically. Mayor Hammerstad suggested pursuing funding or planning for the transit center. Councilor Rohde commented that it could be the Council's mission to see that Tri-Met developed a concept plan for a transit center. Councilor Turchi mentioned a location by the Apex Marina building for a transit center/parking lot arrangement. The Council agreed on `develop a concept plan for a transit center.' Mr. Hertzberg noted that the Council did agree in an earlier discussion that it wanted to work on Block 137, although it might not be a goal. Mr. Schmitz discussed the US Bank property. He mentioned that there was nothing formally on record where LORA said it wanted to demolish the building and pursue a park plan. He suggested that the Council do so this year, as US Bank was on a 30-day termination notice. Councilor Schoen questioned whether the City would actually tear the building down upon US Bank vacating the property. He described the project as long-range. Mr. Schmitz pointed out that they bought the property because the Council wanted to open a window to the bay. He reiterated that they should have a plan, if that was the goal. The Council discussed having a goal of developing a plan for the US Bank property. Councilor Schoen suggested getting some revenue from the existing building before tearing it down. Mr. Schmitz asked if developing a plan meant that staff was to come back to the Council with a plan including fountains, trees, boardwalk, etc. The Council agreed on an action item of developing a plan for the US Bank property. City Council Retreat Minutes—Afternoon Session Page 8 of 17 January 12, 2002 Mr. Schmitz described the 4th Street project as a combination of a major street maintenance effort to repair the collapsed subsurface where the buses parked, and a streetscape enhancement similar in style to the A Avenue and 1st Street enhancements. Councilor Graham questioned whether they were not asking for more problems if the buses continued to park on 4in Street after the street repair. She sugested developing 4th Street in tandem with a transit center, which would pull the buses off 4 Street. Councilor Rohde commented that it would not do any good to do 4th Street until they had a transit center, unless they redid the subsurface so that it would bear the weight of the buses. Mr. Schmitz confirmed that Mr. Schoening had been talking about putting in concrete pads so that the sub base would not give out again in 10 years. He indicated to Councilor Graham that they would not have to tear up the pads if they wanted to make 4th Street look like 1st Street in the future. Mr. Schmitz indicated to Councilor Graham that Tri-Met would pay for none of it; staff and Councilor Rohde have explored that option thoroughly. He indicated to Mayor Hammerstad that they did not need to list 4th Street as a goal. Mr. Hertzberg took it off the list. Mr. Schmitz indicated that the Council sent the A Avenue pedestrian enhancements west of 5th Street to the Transportation Advisory Board; TAB's report would come back next Tuesday night. Mr. Schmitz concurred with Mayor Hammerstad that this did not raise to the level of a goal. Councilor Hoffman noted the boardwalk and the crossing. Councilor Rohde asked about Phase 3 of Millennium Plaza. Mr. Schmitz indicated that realistically nothing would happen with the Phase 3 trail or park expansion in the next 12 months because of the railroad. Mayor Hammerstad mentioned her interest in the boardwalk. Councilor Rohde suggested putting the railroad issue on the legislative agenda to work on getting federal legislation enacted to allow the City to have a park at that location. Mr. Schmitz clarified that they would resolve the railroad crossing issue in the next couple of months. He explained that the difficulty with the boardwalk was that part of any alignment encroached on railroad property because of the shoreline. He indicated that the railroad put up obstacles for the crossing because it wanted to eliminate the boardwalk. Mr. Schmitz concurred with Mayor Hammerstad that putting the boardwalk out on the lake was an option. He noted that doing so involved dealing with the Lake Corporation and state agencies. Mr. Schmitz said that staff would meet with Don Stark on Monday because the next issue, following the resolution of the crossing, was Block 138 and the stairway that came down where the Thai Villa used to be. He explained that the railroad wanted a barrier at the railroad right-of- way, which the City did not want. Councilor Rohde recalled that a few years ago, the Federal Railroad Administration had been intransigent on the issue of commuter rail but they changed their rules after the local officials asked the Congressional delegation to work on the issue. • Fiscal Health and Planning Mr. Hertzberg asked if`determine public facility needs' meant ending up with a plan and schedule. Councilor Hoffman commented that there were two issues: the needs of public facilities and scheduling the possibility of funding public facilities. He spoke to the Council receiving a report that analyzed the funding of possible significant public facilities over the next 20 years. Mr. Schmitz recalled that last spring the Council received a report from Gerry Knippel on the needs and costs of public facilities. He observed that what they did not have were the funding sources. He indicated to Councilor Hoffman that the report included the debt load. Councilor City Council Retreat Minutes—Afternoon Session Page 9 of 17 January 12, 2002 Hoffman reiterated his request for a report with charts and graphs fleshing out the information for the Council's use in making decisions. Councilor Rohde mentioned the public perception of public facilities: people might support a tennis center or swimming pool because they used them but they had no awareness of the need in the community for a new City Hall or criminal justice center. Councilor Hoffman clarified that he wanted to start with a concept that would work, and then develop Phase 2, which was how to get the public behind what the Council thought was appropriate in terms of community facilities. Mr. Schmitz indicated to Councilor McPeak that there were no funds in the CIP for the facility improvements, including the $16 million needed for the maintenance facility and the public safety/criminal justice complex. Councilor Hoffman spoke to the Council looking at the funding mechanism and timing over the next 20 years. He confirmed to Councilor McPeak that the objective was a tool for long range planning for major civic facilities. He mentioned identifying what a bond would cost the average homeowner over 20 years. Mayor Hammerstad suggested changing the category title to long-range fiscal health and planning. Mr. Hertzberg summarized the goal as to prepare a report on the priority, timing and funding of public facilities to use as a tool for long-range strategy. Councilor Hoffman noted that it was a visioning issue. Councilor Turchi mentioned earlier discussion about developing an approach to work on the impending budgetary crisis in the City, including whether to use the 33 cents for general operating or for road maintenance and repair. He described this as more of a problem-solving effort regarding the lack of funding to maintain the current level of City services than developing a budget for operations based on the available resources and community values. Councilor Hoffman concurred with Councilor Turchi that this was a policy question. He asked if they were going to let the Budget Committee decide policy or would the Council decide policy. Councilor McPeak observed that the City Manager made policy recommendations to the Budget Committee; the Council said yes or no to the outcome of that process. She questioned the Council getting involved with Mr. Schmitz's recommendations beforehand. Councilor Rohde mentioned a possible goal of developing a plan for the reduction in services because of the reduction in revenues. Councilor Schoen summarized the budget law as the City Manager was supposed to develop the budget for presentation to the Budget Committee, within his constraints and projections; the Council made changes but technically it should not be influencing the City Manager's budget process. Mr. Hertzberg summarized Councilor Turchi's concern as developing long-term strategic guidelines for dealing with a long-term budget problem. Councilor McPeak said that the Budget Committee did that two years ago in terms of identifying the shortfall. Mr. Schmitz indicated that he understood Councilor Turchi to be referring to revenue enhancements, whereas the Budget Committee had been looking primarily at reduction in services. Councilor Turchi confirmed that he meant revenue enhancements, such as increasing property taxes up to the 33 cents, in order to meet the budgetary needs of the City. He indicated to Councilor McPeak that he thought that the Council discussion of the transportation utility fee should be part of an overall strategy to make the City whole financially. Councilor McPeak commented that she did not think that the Council should readily say that it was willing to raise taxes but it could tell Mr. Schmitz to build in a special levy. She said that City Council Retreat Minutes—Afternoon Session Page 10 of 17 January 12, 2002 she saw a problem with the Council getting involved in the creation of the budget and the sources of revenue, other than the general ideas that the Council members gave to Mr. Schmitz to use in building the budget. Mr. Schmitz discussed his understanding of Councilor Turchi's interest in exploring hypothetical sources of revenue. He cited an example of a hospitality tax like Ashland's; staff could estimate the potential revenue, the Budget Committee would bring it to the Council and the Council would decide whether to consider it or not. Councilor Turchi clarified that he was talking about the 33 cents and the process the Council used in making a decision about how to use it, if it was going to use it. He referenced constraints on the Council regarding its use, including prior Council promises. He asked whether they escalated the percentage of cuts each year or did they find a systematic way to overcome that hurdle. Mayor Hammerstad noted that identifying program needs and resources was in the budget. She confirmed to Councilor Turchi that she meant that the City Manager propose a partial use of the 33 cents in formulating the budget in order to make up the road repair deficit; then the Council debated whether that was a good thing to do or not, and adopted it within the context of the budget. Councilor Hoffman expressed his discomfort with the Budget Committee deciding to undo something, which was a Council decision originally. He commented that he understood Mr. Schmitz's perspective in using a source of available funds as he saw fit. He indicated that he felt he had a moral obligation on a different level. Mr. Hertzberg asked if the Council wanted to discuss Councilor Turchi's comments about an overall strategy for the long-term fiscal stability. Councilor Hoffman spoke to having a conversation with Mr. Schmitz at some level. Councilor Turchi questioned developing strategy in a vacuum. Councilor Rohde held that this was part of the usual budget process. Councilor McPeak asked if Councilor Turchi was concerned that so many would grab at the 33 cents that the Council needed to get a position in place early on about how it would be used. Councilor Turchi said that he thought that they had few ways of funding City services, and this was one of them. He noted that it reached the City's finite limit. He held that they needed to come to grips with how to dispose of the 33 cents in view of the City's needs as it grew and its expenses increased. Mayor Hammerstad observed that what the Councilor was really trying to do was to meet the City's obligations for road maintenance, now that the bond was spent. She spoke of turning around the goal of developing a policy for the use of the 33 cents and looking at developing a policy regarding the increased cost of health care insurance and PERS, and the impact on the budget. She commented that when identifying needs, one also needed to identify the possible revenues. She agreed with Councilor Rohde that that was the budget process. Councilor Rohde clarified that he saw a possible need to develop a policy on the 33 cents because of the strong philosophical views on the Council regarding its use. He gave an example: if PERS and insurance rates went up, causing a financial crisis at the City, then the Council needed to decide whether to tap into the 33 cents or cut something from the budget in order to cover the extra expense. Councilor Turchi asked if the Council wanted to seek voter approval on a change of direction for the potential expenditure of that money. Mayor Hammerstad held that they were elected to make those decisions. Councilor Schoen indicated that he was comfortable with the fact that it rolled over into the general fund. Councilor Rohde said that he was not, as the voters had voted in a three year levy. He agreed with the Mayor that they did so at a time when it was necessary. Mr. Hertzberg noted the strong disagreement on the Council concerning this issue. He asked if the Council wanted to develop a policy or guidelines for the use of the money. Councilor City Council Retreat Minutes—Afternoon Session Page 11 of 17 January 12, 2002 Schoen said yes but not as a goal. Mayor Hammerstad held that the budget process took care of this whole goal. She described the issue as a Council responsibility, rather than a goal. Councilor Rohde concurred. Councilor Schoen spoke in support of developing a long-term strategy for future stability. He noted that staff could project future potential cuts and deficits for a Council discussion on increasing revenue sources. Mr. Schmitz indicated that, since he received the figures for PERS and health insurance, he has been thinking of putting a hold on projects and vacancies now in order to make sure that the City had sufficient revenue to meet its target next year. He explained that staff had not projected the $500,000 hit from PERS and health insurance combined. Councilor Graham discussed her concern with the potential effect of the state's economic woes, which no one thought possible 12 months ago. She argued that it was difficult to develop long-term solutions because they did not know how great the problem would be. Mr. Hertzberg asked if the Council wanted to expend staff time and resources to develop an overall strategy for long-term financial stability. Councilor Rohde said no. Councilors McPeak and Hoffman asked for Mr. Schmitz's opinion. Mr. Schmitz indicated that his comfort level would be a Council subcommittee working on long-range strategy, which would report to the Budget Committee. He held that they needed a new revenue source, whether it is the 33 cents or something else. Councilors McPeak, Turchi and Schoen agreed to serve on the subcommittee. The Council discussed when the subcommittee should finish its work. Councilor Schoen suggested September or October. Councilor Turchi spoke to finishing the work for this budget cycle, given the deficit faced by the City. Mr. Schmitz clarified that the City was not facing a deficit in FY 2002/03; the $600,000 deficit showed up in FY 2003/04. He commented that he was more concerned with the costs that the City could not control, which were increasing beyond the staff projections, such as PERS and health insurance. He mentioned the 39 capital improvement projects in the CIP, which were unfunded. He emphasized that they had long term needs in the community, and they did not have the revenue sources to cover them. Mr. Hertzberg indicated to Councilor Rohde that the Council subcommittee would discuss the development of a policy on the use of the 33 cents. The subcommittee agreed to finish their work in 90 days. Mr. Schmitz confirmed to Councilor McPeak that Mr. Seals would serve on the subcommittee. The Council discussed the scope of the subcommittee's work, whether it focused solely on long term operating stability or included bonding for capital expenditures. It decided to separate the two issues, with the subcommittee focusing on long term operating stability. Mr. Schmitz pointed out that they could set up another subcommittee to look at the capital expenditure issues. Councilor Rohde commented that the work on the public facilities issue did not need to be finished until the end of the year. Councilor Hoffman spoke to receiving a report on long range planning for public facilities before the end of the Budget Committee work. Mr. Hertzberg noted the three remaining issues, which had some priority attached to them: sustainability, West End concerns and youth issues. Councilor Rohde noted that his West End concern focused on the Boones Ferry corridor. Councilor McPeak commented that she did not think her West End concern of public participation rose to the level of a goal. The Council discussed listing sustainability as a goal. Councilor Turchi spoke to continuing to work on sustainability, even if it was simply the Community Development Director working on City Council Retreat Minutes—Afternoon Session Page 12 of 17 January 12, 2002 internal objectives. Councilor Rohde pointed out that the City could not become sustainable in one year— it was a long-term process - but the Council could make monthly reports on the City's actions towards achieving sustainability. Councilor McPeak indicated that she saw sustainability as an important goal in a long-range livability context. She suggested the wording"livability in a neighborhood and community context." She mentioned including compatibility as another goal. Councilor Rohde suggested a goal: adopt sustainable practices. He pointed out that a sustainable practice could be changing the lighting tubes at the lighting facility. He confirmed to Councilor Turchi that he was suggesting that the Council cherry pick its way through the range of options. Councilor Hoffman asked if there was a target that they could reach, such as improving sustainability by a stated amount. Councilor Rohde suggested holding a public forum on sustainability, similar to the forum that they held on New Urbanism. Mr. Hertzberg asked about youth issues. Councilor Rohde spoke to putting a youth member on all the boards and commissions. He suggested starting their recruitment now in order to bring sophomores on board this year, who would then continue throughout the next school year. Study Sessions Mr. Hertzberg suggested scheduling the study session topics,which would give a sense of their priority. Councilor Rohde asked to add in youth activities as a study session topic. He posed the question of whether there was some way for the community to provide activities for the youth, such as a recreation center or attracting private sector providers to the community. Councilor Graham commented that talking about a recreation center meant discussing a bigger picture, which included a pool. Councilor Turchi suggested first defining the problem before discussing it. The Council agreed on the following schedule by quarter: Study Session Topic Quarter Community forestry plan Third Neighborhood Planning First Lakefront zoning district Second Affordable Housing Second Field Usage Fees Second East-West shuttle Third Sustainability public forum Fourth Youth activities Third Mr. Hertzberg asked which one topic each Councilor would choose to drop as a study session, if necessary. Councilor Schoen mentioned affordable housing, as he did not see a short-term solution for that. Councilor Rohde indicated that he would not drop any of them, as he has already dropped several by not mentioning them. Councilor Turchi picked east-west shuttle. Councilor McPeak asked why they needed a study session on field usage fees. Mr. Schmitz explained that staff needed direction on the ratio between the cost and the revenue. Councilor Hoffman mentioned that they also needed buy-in from the users. He suggested a study session involving the users. Councilors Graham, Hoffman and Mayor Hammerstad picked east-west shuttle to drop. Councilor Rohde mentioned the lakefront-zoning district. Councilor McPeak selected field usage fees. Councilor Schoen indicated that he would go with east-west shuttle also. City Council Retreat Minutes—Afternoon Session Page 13 of 17 January 12, 2002 Mr. Hertzberg asked if the Council would rather have this heavy schedule or drop the east-west shuttle, as it was at the bottom of the list. Councilor Rohde discussed his concern that the substantive Council discussions occurring during study sessions should take place during the evening meetings. He cited the four in-depth presentations and discussions at the last Council special meeting. He argued that those should have been televised as part of the public process, which the Council would go through on the 15th in making its decision. Mayor Hammerstad commented that a topic like the lakefront zoning district involved a philosophic discussion on why it was or was not a good idea. She held that it took longer to get that more in-depth information than they wanted to spend on the topic during a regular business meeting. Mr. Schmitz indicated to Councilor McPeak that these subjects were for Monday or off Tuesday study sessions. Councilor Rohde spoke to scheduling them on off Tuesdays for an in- depth discussion and Council decision on whether staff should do anything on them. Councilor Schoen expressed his concern about increasing the amount of staff time and number of meetings. Councilor Rohde held that he was talking about fewer meetings, as he would have combined last Tuesday's meeting with a regular business meeting. Councilor Graham argued that doing the business of the City took up enough time; adding in-depth discussions would make the meetings too long. Councilor Rohde disagreed, contending that sometimes it took longer for the Council to eat dinner than it did to conduct the business meeting. Mr. Hertzberg asked if the Council had to sacrifice the east-west shuttle discussion in order to have fewer meetings, would it do so. Councilors Rohde and Hoffman said no, Mayor Hammerstad said yes. Councilor Graham said yes in theory but held that they did need to be responsive to the needs of the business community during construction periods, including discussing an east-west shuttle. Councilor McPeak asked if any of the topics were appropriate to limit to written information only. She spoke to fitting what the Council did within the defined parameters of its meetings; if the Council could not fit everything in, then they did some of the work next year. Councilor Rohde pointed out that they could do one item a month in eight months. Mayor Hammerstad observed that other things were likely to come up. Councilor Rohde clarified to Councilor Graham that he wanted the presentations and discussions televised because he thought it would be valuable for the public to witness what the Council participated in last Tuesday night. He commented that it was possible to televise every meeting in the City. 3.6 Early identification of 2003 legislative issues The Council discussed potential state and federal legislative issues, including photo radar, transportation, the railroad crossing, 1-5 as a defined water body (island annexations), Measure 7, term limits and municipal courts of record. Mr. Powell commented that all the items except for Measure 7, were Lake Oswego proactive issues, where the City took the lead; Measure 7 was more working in league with other cities to respond to the measure. Councilor Rohde mentioned federal transportation funding because they might get some money for the streetcar and the Boones Ferry corridor project with the reauthorization of a federal program. Councilor Graham recalled discussion with the Lake Corporation about exotic plants and phosphorous fertilizer regulation as a state issue. Councilor Schoen spoke to Lake Oswego taking the initiative in working towards a statewide ban while passing its own local ordinance as an example. Councilor Hoffman spoke to leaving the statewide issue to the Lake Corporation City Council Retreat Minutes—Afternoon Session Page 14 of 17 January 12, 2002 to initiate; the City could support the legislation proposed by the Corporation. Mayor Hammerstad commented that the City could not enforce a local ordinance. Councilor Graham spoke to passing a resolution to show the Council's support of the Lake Corporation's efforts. Councilor Schoen argued for passing a local ordinance as well. Councilor Hoffman questioned whether the science existed to support a ban on phosphorous fertilizer. He asked how much fertilizer contributed to the problem in the lake, as opposed to the naturally occurring phosphorous. Councilor Schoen held that the Engineering Department did have the science. Mr. Powell mentioned that some of the scientific debate focused on whether the DEQ total maximum daily loads were below the naturally occurring phosphorous levels. He commented that there was no doubt that a certain amount was human-instigated. Mayor Hammerstad described phosphorous free fertilizer as a public education problem; when people became aware of its impact on the lake, they tended to stop using it. Councilor McPeak commented that exotic plants could also be an educational issue. Councilor Graham suggested passing a resolution on fertilizer and starting a public education effort. Mr. Hertzberg noted that the federal issues of railroads and transportation funding were clearly items on which the Council needed to take the initiative. Councilor Rohde mentioned the issue of environmental streamlining, which might involve simply sending a letter to the Congressional delegation explaining that going through the hoops of the many different environmental regulations and agencies was a problem. • Other Priorities Councilor Hoffman noted that there were other issues, which the Council has not yet discussed. He mentioned a sustainable program for managing city-owned natural resources and the funding mechanism for future replacement of the artificial fields at the high schools. Mr. Schmitz confirmed that the City was doing its part on funding the future replacement of the fields. He suggested raising the issue with the School District at the next joint meeting. Councilor Hoffman proposed creating a task force of the District, the users and the City to reach agreement for each group to pay annually one-third of the estimated replacement cost. Councilor Schoen suggested talking to the users if the City did not get a satisfactory answer from the District at the next joint meeting. Councilor Hoffman explained that the youth sports people have always thought of field use fees and artificial fields as a three-way participation by the District, the City and the users. He agreed to talk to the Team Sports Advisory Committee. The Council discussed a sustainable program for managing city-owned natural resources. Councilor Schoen suggested combining the topic with the community forestry plan discussion. Councilor Rohde concurred with Councilor Hoffman that they needed a study session with the Natural Resources Advisory Board but noted that it might expand into a discussion on a variety of related natural resource issues. Councilor Hoffman discussed the possibility that, in the third quarter, following the NRAB report, the Council might direct staff to start looking for the money for the project for next year, if it deemed the project worth it. Councilor Hoffman mentioned the Historic Resources Advisory Board's goal of an interpretative center in George Rogers Park. Mr. Schmitz explained that that center was part of the master planning design for the park. He said that the first effort was to stabilize and rehabilitate the smelter. He speculated that the center was several years off, as they did not have the resources now to stabilize the smelter. Councilor Rohde spoke to private groups building the interpretative center. City Council Retreat Minutes—Afternoon Session Page 15 of 17 January 12, 2002 Mr. Schmitz reported that the head gate was in mothballs again; staff had to move it from the Foothills site. Mr. Hertzberg mentioned that HRAB estimated a cost of$6,000 to $8,000 and included it in its 2002/03-budget request. Mr. Schmitz said that the Board chair and staff liked a site near the new bridge across the canal, next to River Run 1. 3.7 Closing remarks Mayor Hammerstad recalled that yesterday she had mentioned how proud she was of having a fully functional Council and of the relationships they have forged over the last year. She thanked everyone for the thoughtful and conscientious work each has done this year. She expressed her appreciation for the level of preparedness on the Council to discuss complicated and contentious issues, and the Councilors' willingness to discuss a topic, to change their minds and to contribute to the discussion. She commented that the Council did so with respect, style and courage. She emphasized her enjoyment of this past year because she knew that she could count on the Council to reflect the values of the community. Mayor Hammerstad observed that, while the Council did get along well, the members did not necessarily agree. She mentioned the freedom the Councilors have had to express their opinions and desires. She described this as the best public service, elected job that she has had in 20 years. Councilor Rohde commented that when he was approached two years ago about running for the State House, the situation in the City was something that he wanted to get out of. He indicated that the work that the Council has accomplished over the past year and their ability to work together made his decision to run for state office much more difficult. He apologized in advance for his distraction during the coming year. Councilor Turchi commented that he has learned a lot this year and planned to learn more next year. He expressed his pleasure in working with his fellow Council members and thanked them for the experience. Mr. Schmitz reiterated what he said at his evaluation and at yesterday's meeting: this was the best City Council that he has worked with. He described this Council as forward thinking, visionary and practical. He expressed his appreciation for the Council encouraging staff's creativity and giving them the leash to run with and see if they could do better things for the community. Mr. Powell said that he was still proud to be working here. Councilor Hoffman commented that he enjoyed this year in a similar fashion to Councilor Rohde. He described this particular retreat as very productive. He mentioned his assumption that the Council would continue its good, thoughtful dialog over the next year. Councilor Graham commented on how fast the year has gone by. She said that she was looking forward to moving on and accomplishing even more next year. She expressed her high opinion of the staff, describing the partnership between staff and the Council as `super.'. Councilor Schoen commented that he has not felt that he contributed as much over the last year as he could because of his involvement in taking care of his parents. He expressed his pleasure at working with Council and staff. He thanked Mr. Hertzberg for his work at the Council retreats over the past three years. He wished the Council success as he started his last year on the Council. Councilor McPeak concurred with the previous comments. She commented that it was amazing that, given the strong personalities sitting around the table, how well they worked together. She thanked Mr. Hertzberg for his work. Mr. Hertzberg observed that the Board and Commissions reports took longer than anticipated, as did this afternoon's session, yet he did not feel that there was a wasted minute or City Council Retreat Minutes—Afternoon Session Page 16 of 17 January 12, 2002 disagreements that were personal or unproductive. He commented that the whole was greater than the sum of the parts. He read a poem by Rudyard Kipling, "Law of the Jungle." 4. ADJOURNMENT Mayor Hammerstad adjourned the meeting at 4:10 p.m. Respectfully submitted, Robyn Chi.' tie City Recorder APPROVED BY THE CITY COUNCIL: ON July/l 6, 2002 Ridie Hammerstad, Mayor City Council Retreat Minutes—Afternoon Session Page 17 of 17 January 12, 2002