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HomeMy WebLinkAboutApproved Minutes - 2010-06-15 PMCITY COUNCIL REGULAR MEETING MINUTES June 15, 2010 Mayor Jack Hoffman called the - sgular City Council meeting to order at 6:35 p.m. on Jun 15, 2010, in the City Council Ch,-mbers, 380 A Avenue. Pr ent: Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tiern y, and Jordan. Staff Present: Alex McIntyre, City Manager; David Powell, City Attorney; Robyn Christie, City Recorder; Ursula Euler, Finance Director; Kim Gilmer, Parks and Recreation Director; Jordan Wheeler, Management Analyst; Brant Williams, Economic and Capital Development Director; Ann Adrian, Adult Community Center Director; David Donaldson, Asst City Manager 3. PRESENTATIONS 3.1 Lake Oswego Meal Network Advisory Board Donation Ms. Adrian introduced Andy Harris and Gail Keck, co-chairs of the Lake Oswego Meals Network Advisory Board, and Ruth Berberich, Adult Community Center, winner of the Outstanding Employee of the Year Award. Mr. Harris presented a $30,000 check photo to the Mayor to help fund the Lake Oswego Meals on Wheels program. He explained that their Board did fundraising to help pay for the program's deficit. He thanked New Seasons Market and the Lake Oswego Review for partnering with the Board last year on their Harvest Fundraiser, through which the Board raised over $7,000. He thanked the civic and religious organizations that have generously contributed to the program. He mentioned that the Meals on Wheels program has served the Lake Oswego community over the last 40 years, but with the current economy, 40% of the homebound meal recipients could not contribute towards their meals. He invited the community to join the Board this October at its Harvest fundraiser at the New Seasons Market, Mountain Park store. Mayor Hoffman accepted the check on behalf of the City, the Council, the employees, and the Adult Community Center. He thanked Mr. Harris and led the audience in a round of applause congratulating the Board on its work. Bob Kincaid Internship Mr. Donaldson introduced Cate Schneider, the fourth annual Bob Kincaid Intern, who would work with the City Manager's Office this summer. He mentioned that the memorial internship fund has received over $10,000 in private donations, which the City used to hire a summer intern. He indicated that staff selected Ms. Schneider out of a field of 25 applicants to work on a broad range of topics. Ms. Schneider reviewed her educational background, noting that she was native to Washington State. She thanked the Council for this opportunity to work with the City. Mayor Hoffman welcomed Ms. Schneider. 3.2 Centennial Update Cindy Thomp on, Event Producer, described the Centennial Celebration scheduled for July 17 at Luscher Farm. She mentioned the involvement of 56 community organizations, companies, and City Council Regular Meeting Minutes Page 1 of 28 June 15, 2010 non -profits, 14 local food vendors, 13 sponsors, and 17 entertainers plus a variety of other activities scheduled for the all -day Celebration. She spoke next of the Farm Chic dinner at Luscher Farm with a five -course dinner prepared by Lake Oswego chefs. The proceeds of the $150 a ticket dinner would go to support the Lake Oswego School District Sustainability Fund. She reminded the audience of the 10-10-10 Lock up of the time capsule in the vault on October 10. 4. CONSENT AGENDA Councilr.r Jordan moved the Consent Agenda. Councilor Johnson seconde!� the motion. A voice vo,e was taken, and the motionap ssed with Mayor Hoffman, Coun,ciio,- = Johnson, Hennagin; Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] 4.1 REPORTS 4.1.1 Public Improvement Contract for construction of the 2010 Street Preservation Project (Slurry Seal) Action: Award a public improvement contract to Asphalt Maintenance, Inc for the 2010 Street Preservation Project in the amount of $206,644.08: 4.2 RESOLUTIONS 4.2.1 Resolution 10-23, authorizing a Joint Funding Agreement for the United States Geological Survey (USGS) Clackamas River Water Quality Study Action: Adopt Resolution 10-23 4.3 APPROVAL OF MINUTES 4.3.1 January 23, 2010, goal setting (morning portion) 4.3.2 April 6, 2010, regular meeting Action: Approve minutes as written END CONSENT AGENDA 5. ITEMS REMOVED FROM THE CONSENT AGENDA 6. CITIZEN COMMENT Gary Buford, 5 Camelot Court He read a letter to the editor that he had written. He quoted a remark by Thomas Jefferson: "A government big enough to give you everything you want is big enough to take away everything you have." He referenced the discussion of the Foothills pre -development agreement by the Council at its June 7 meeting. He described the location of the Foothills District and the constraints of the 100 -year flood plain, the Tryon Creek sewage treatment plant, the industrial use zoning, the transportation access of only one road from Hwy 43, and the inferred dependence of the development on the Tri -Met streetcar between Lake Oswego and Portland. He indicated that the planning process would cost the taxpayer between $800,000 to $1.1 million. He remarked that the City government appeared big enough to give one everything one wanted. He commented that the work of the Second Look Task Force on the Sensitive Lands Ordinance was now complete. He alleged that the City was likely to move ahead with the taking of more private property rights. He asked whether City government was big enough to take away everything one had. City Council Regular Meeting Minutes Page 2 of 28 June 15, 2010 Diana Boom, PO Box 328, Lak Osw go She presented the Council with a flyer publicizing that the Baghdad Theater's premier of Sustainability Board member Matt Briggs' film Deep Green. She commented that the film was excellent and sent out a good message. Charles Ormsby, 170 SW Birdshill Road, Portland, Clackamas County He informed the Council that, when he attempted to set up microphones in the center conference pit in order to record the Council's special meeting on J.,ne 7 at the West End Building, he was asked to remove them. Consequently, he had been un,;ble to record adequate sound from the meeting He indicated that he found this request inexcusable, as the next night here in the Council Chambers, cables were all over the place in the center of the table space. He said that he did not think it was right that he had to work twice as hard to get a recording of a public meeting. He stated that next time he would give adequate notice and that he did not expect to have his microphone disturbed unless there was a safety issue. 7. PUBLIC HEARINGS Mayor Hoffman discussed the six public hearings before the Council tonight. He acknowledged the work of the Citizens Budget Committee (seven elected officials, seven citizens), superbly led by Chair Ron Smith. He described the budget process as a four -stage relay race: the department heads provided input to the City Manager; the City Manager put together a budget; the Budget Committee approved a budget; and the Council adopted a budget per its statutory authorization and its duty and responsibility to spend its citizens' tax dollars wisely. He explained that there was extensive public input at each stage. He commented that the important element was trust of government. He noted that the City Council was ordinary people's first interaction with government. 7.1 Resolution 10 - 28, adjusting the budget for the fiscal year commencing July 1, 2009 by adopting a supplemental budget, approving resources/requirements, and making appropriations Mayor Hoffman reviewed the standard public hearing procedures and testimony time limits. STAFF REPORT Ms. Euler presented the third supplemental budget for this fiscal year (pp.73-82). She mentioned the reasons for supplemental budgets (p.77). She directed the Council to the quarterly financial reports for the preparatory work. She reviewed the specific supplements for this budget adjustment, as summarized on pp. 77-78. She mentioned that she should have included the Lake Oswego/Tigard Water Partnership in the increases for personal services. She emphasized that none of these funds were approaching their budget limit; this action was re -allocating monies within budget categories to match where the money was actually spent. She noted the $41,000 from the general fund supporting the lagging golf fund. She explained that the internal service funds of Engineering and Maintenance Services & Motor Pool were not receiving sufficient resources to reflect the costs incurred in providing services to other City funds and/or projects. Therefore, this supplement made the necessary transfers between funds to recover the full cost for the internal service funds. She emphasized that this supplement did not go over -budget; it simply shifted previously appropriated funds into the right categories. QUESTIONS OF STAFF Councilor Olson asked why staff was moving the capital outlay in the Tennis fund to personnel (p.80). Ms. Euler clarified that the transfer within the self-supporting Tennis Fund was two different City Council Regular Meeting Minutes Page 3 of 28 June 15, 2010 items. One shifted savings from its capital outlay category to its materials and services category in order to pay for the tennis study. Ms. Gilmer indicated that they transferred $9,000 to personnel in order to pay for the additional staff needed to cover some workers involved in worker's comp issues this past year. She said that they were not certain that they would need it, but they wanted to make sure that they did not overrun the expense line. Councilor Olson asked if the need to transfer monies from other funds to the Engineering fund resulted from the new cost allocation study, or only the decreased license and fee revenues. Ms. Euler indicated that this ref'�cted the decrease in revenues only. Ms. Euler clarified to Couni:llor Olson that the fund transfers to the Engineering fund were to pay for real non -capital work that Engineering did for these other funds. She indicated that this had nothing to do with the new cost allocation study, nor was it a subsidy. Ms. Euler indicated to Councilor Tierney that there was a Redevelopment Department in the General fund with one employee. However, LORA paid for that employee through an annual cost reimbursement. She explained that, because vacation payout was typically unforeseen, they could not realistically budget for it Councilor Tierney suggested re-examining vacation payouts in the future. M . Euler clarified to Councilor Tierney that they transferred the $249,000 from the general fund to the Street fund instead of directly to the Engineering fund because the Street fund received services from Engineering and needed to pay for those services itself. Councilor Tierney suggested eventually answering the question of what services the Engineering fund provided. He commented that those services were really paid for through the utility rates. Ms. Euler indicated to Councilor Jordan that the $150,000 in Fines & Forfeitures represented money collected by the City from the losing party in the lawsuit and paid to the claimant as a restitution payment. PUBLIC TESTIMONY Mayor Hoffman opened the hearing to public testimony. Seeing none, he closed the hearing. COUNCIL DISCUSSION Councilor Jordan moved to adopt Resolution 10-28. Councilor Johnson seconded the motion. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] 7.2 Resolution 10-29, certifying the City is eligible to receive State -Shared Revenues STAFF REPORT Mr. McIntyre explained that this staff report covered Agenda items 7.2, 7.3, and 7.4 in presenting the budget as an entire package. He reviewed the procedure for the public hearings. Ms. Euler reviewed the budget process leading to the public hearings tonight on this buaget approved by the Budget Committee. She mentioned the correction to the total Citywide approved budget revenues listed in the staff report (p.83) to $134,670,000 and the correct $167,126,388 in expenditures. She noted the General Fund budget shown on p. 84. Mr. Wheeler gave a PowerPoint presentation reviewing the changes made between the City Manager's proposed budget and the Budget Committee's approved budget (p.85, p. 89). He mentioned each of the changes to the General Fend and to the other funds (pp.86-89). He noted that these changes resulted in freeing up an additional $150,000 in the General Fund ongoing resources and $160,000 in one-time resources. Ms. Euler indicated that those freed up resources were the starting point. She informed the Council of additional developments since the Budget Committee meetings. She reported that the City Council Regular Meeting Minutes Page 4 of 28 June 15, 2010 Library District informed staff that the monies for the Lake Oswego Library coming from the District would increase by $230,000 as a result of the Clackatants vote to enter the Library District; Lake Oswego's allocation percentage increased because they were most likely to visit the Lake Oswego Library. She indicated that staff reviewed the street maintenance fee charges to the Municipal Golf Course and the Country Club Golf Course and determined that they should be at a Group 1 pricing level instead of at a Group 2 pricing level. This reduced the revenue to the Street fund by $44,000. She pointed out that this decrease in revenue to the Street fund meant an increased transfer from the General fund in the same amount, but the change did benefit the Municipal Golf Course by decreasing its monthly bill by $9,000. She mentioned a staff request to add $100,000 to any refinancing plan for the West End Building to repair the chiller needed to keep the building inhabitable in the summer ($50,000) and to provide architectural support for a Council subcommittee reviewing the future uses of the West End Building to find a solution ($50,000). She indicated that these additional revenues and subtractions left $336,000 on the table in ongoing resources and $60,000 in one-time funds. Mayor Hoffman indicated that Resolution 10-29, certifying that the City was eligible to receive state -shared revenues, did not require a public hearing, while Resolution 10-30, in which the City elected to receive said revenues, did require a public hearing. Councilor Johnson moved Resolution 10-29. Councilor Jordan seconded the motion. At Councilor Hennagin's request, Mr. Powell explained that, in order for Lake Oswego to receive state -shared revenues, it had to provide certain services and certify each year that it did in fact provide those services (Resolution 10-29). He indicated that the public hearing for Resolution 10- 30 was to provide the public with an opportunity to comment on the potential uses of the state revenue sharing. Mayor Hoffman noted that the City was eligible to receive state -shared revenues (cigarette, liquor, and highway taxes) because it provided four or more municipal services. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] 7.3 Resolution 10-30, declaring the City of Lake Oswego's election to Receive State - hared revenues in 2010 - 11 Mr. Powell reviewed the standard public hearing procedures and testimony time limits. STAFF REPORT Mayor Hoffman noted that the staff report on this resolution started on p. 101 in the packet. PUBLIC TESTIMONY Mayor Hoffman opened the hearing to public testimony. Seeing none, he closed the public hearing. COUNCIL DISCUSSION Councilor Jordan moved adoption of Resolution 10-30. Councilor Johnson seconded the motion. Mr. Powell indicated to Councilor Olson that he was not aware of any restrictions or rules about the use of state -shared revenues. He described them as unrestricted, in contrast to gas tax monies. Ms. Euler indicated that the liquor and cigarette taxes went to the General fund. A voic vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, H nnagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] City Council Regular Meeting Minutes Page 5 of 28 June 15, 2010 7.4 R olution 10-31, adopting the City of Lak Osw go Budg t for the Fiscal Y ar commencing July 1, 2010, (Fiscal Year 2010 - 2011) making appropriations, levying ad valorem taxes, and classifying the levy pursuant to Section 11 b, Article XI of the Oregon Constitution QUESTIONS OF STAFF Councilor Tierney indicated that his calculations using the revenue, operating expenditures, debt service, and capital outlay figures on p. 84 rel sting to the General fund budget found that the expenditures were greater than the revenues. Ms. Euler clarified that the budget included the one- time spending of $1.1 million for Foothills. She stated that staff did otherwise balance the budget according to Council goals by providing excess operating revenues over operating expenditures. Councilor Olson commented that she had noticed the same thing. Ms. Euler explained that the difference, after backing out the $1.1 million, came from setting aside $600,000 for a PERS reserve and funding a bare bones capital outlay. Councilor Olson mentioned that the $37,000 in matching funds that the City was providing for the Lakeridge tennis courts (p.87) went to the School District, the Lakeridge Parent Club, and the neighborhood group that brought the matter forward to the Budget Committee, and not just to the District. PUBLIC TESTIMONY Mayor Hoffman opened the hearing to public testimony. Mr. Powell reviewed the testimony order and time limits. Dan Williams, 17226 Tualatin Street He noted that a close vote during the Budget Committee process sustained the City Manage -'s elimination of the EMS Coordinator position. He described the decision as shortsighted, citing the compelling testimony presented at the June 5 Round Table from the many Fire Department personnel on why the position should be restored. He asked the Council to reconsider the vecision for many reasons, one of which was the potential liability the City might have and the insurance costs involved if the City did not have an EMS Coordinator. Maria Meneghin, 1179 Sunningdale Road She read a prepared statement regarding the allocation of $1.1 million from the General fund reserves to the Foothills Framework Plan. She described the agreement proposed by Mr. Williams as protecting the City's interests and bringing forward the City's best opportunity for future development to increase its tax base, meet Metro's density expectations, and provide affordable housing. She indicated that she liked the idea of a framework plan to guide development opportunities in the District. She stated that, even so, she could not support this allocation because of the continuing financial problem of the West End Building. She noted that, at the June 8 meeting, the Council essentially decided to postpone their decision. She acknowledged that there was no good solution to this financial situation, yet the Council's decision to form a subcommittee to explore potential uses for voter approval at an unspecified date disturbed her. She questioned whether a general obligation bond would pass, given the close votes on the two other occasions. If it did not, then the City might have to use its reserves to pay the debt, which she argued made spending $1.1 million on Foothills at this time fiscally imprudent. She advocated for postponing the money for the Foothills Framework Plan until after the City settled the West End Building issue. Darrel Condra, 1179 Sunningdale Road He expressed his appreciation for the Council's work over the past year, noting the long, difficult meetings and contentious decisions that were part of this volunteer yob. He said that he City Council Regular Meeting Minutes Page 6 of 28 June 15, 2010 appreciated the City's support for the library over the years and in this current budget. He commented that public libraries became even more important for students as the School District struggled with funding and reducing its library budget. Karl Koenig, Clackamas County Firefighters Union President, PO Box 230104, Tigard He indicated that he represented the 45 union fire fighters working for the City. He advocated for reinstatement of the EMS Coordinator position. He mentioned his perception that the Council intended to show",., support for the Fire Department by doing so. He thanked the Council 'nd the Budget CommitteC `or their service. He expressed his appreciation that the firefighters hac 1.1� opportunity to testify with respect to this position and its effect on the community they served He commented that they believed in a participatory management style that allowed firefighters an opportunity to comment and to interact with the City leadership in making their service better. Janine Dunphy, 15450 Boones Ferry Road She stated that she attended all the budget meetings and diligently went through the proposed FY 2010/2011 budget. She indicated that she had many concerns, including the salary and benefit increases for staff. She noted that 50% of the total operating budget in the General fund was for salaries and personnel costs. She advocated reducing the development and training budget by more than 10%. She expressed her shock at the amount of money allocated to professional and technical services across the departments, mentioning a total of $3.615 million, not including the $1.1 million for Foothills. She mentioned that she has not yet seen a list of all the consultants hired by the City, what they were doing, and where this money was going. She argued that these expenses were not sustainable. She asked if this was how the citizens wanted the money spent. She mentioned that she has not seen the results of the City's April citizen interest survey, which were due out in May but now scheduled for July. She commented that she would have thought that the Council would have wanted to see those results before the budget, which made her wonder whether the results did not favor some of the budget items. Eric Schutt, 763 Ninth Street He spoke in favor of retaining the EMS Coordinator position. He argued that the City needed a position dedicated to moving the department forward with all the changes likely to happen in the next five to ten years with respect to emergency medical services. He indicated to Councilor Hennagin that he had specialized knowledge, as he has been involved in EMS for 29 years, worked as the EMS Training Officer at another fire department, and was currently involved in State EMS. He stated that they were seeing a tremendous amount of changes in EMS because of the medical science and technological developments. He commented that the paramedic program he went through 25 years ago would not have even thought of doing the things that would soon be implemented. Councilor Hennagin mentioned hearing that the Lake Oswego fire fighters could receive adequate training through Multnomah or Clackamas County, rather than receiving it in-house. Mr. Schult commented that Lake Oswego had some unique geographic challenges that should be included in its training program. He indicated that his fire district has found that it was not cost effective to send its people outside for training because of the time lost for responding and the overtime. He argued that it made more sense financially to keep the training in house. He remarked that having a dedicated Lake Oswego fire person attending regional or countywide meetings could bring back efficiencies and other ways to reduce costs that would benefit the department. City Council Regular Meeting Minutes Page 7 of 28 June 15, 2010 Coll en Bennett, 1131 Oxford Drive She read from a prepared statement regarding the library funding. She reviewed her involvement with the library over the past 20 years, including sitting on the Advisory Board and working with the Friends and with the LO Reads program. She mentioned the excellent service provided by Library Director Baar and his staff under difficult and crowded conditions in the library building. She advocated for the Council to continue to fund the library from the General fund as it has in the past and reserve the Library District monies for the future. Ritu Sahni, Lake Oswego Fire Department Medical 131'rector, 5525 Bay Creek Drive He explained that, in addition to serving as the Lake Oswego Fire Department Medical Director, he was also the Medical Director for the State of Oregon. He mentioned that the increased requirements for paramedic training would likely increase. He spoke in support of the Council retaining the EMS Coordinator position. He said that, in his position as Medical Director, he saw nationally that the departments successful in providing EMS care were the departments committed to providing that care, including a management structure dedicated to EMS. He described the Lake Oswego Fire Department as an EMS -based fire service, as opposed to a fire -based EMS service. He noted that 85% of their calls had an EMS component to them. EMS was the primary public safety and health aspect provided by the City. Diana Boom, PO Box 328, Lake Oswego She thanked the Budget Committee, Mr. McIntyre, and his budget team for the great job they did with the budget. She supported two suggestions made by Budget Committee members for improving the budget next year: that the City define, list, and prioritize services as essential or non-essential services, and that the City provide more detail in the two categories of development and training and professional and technical services. She spoke in support of retaining the funding for the skate park and the swim park lifeguard. She questioned eliminating the funding in light of the City giving $30,000 to a non -City entity, calling it ill advised. She argued for the neighborhood planners to return to working on neighborhoods plans instead of being re -assigned to work on the Comprehensive Plan. She contended that the Comprehensive Plan should be more than a marketing plan, citing her dismay at the time and money it must have taken to develop the board display of logos presented to the Council last week. She held that eliminating the funding for the Police Community Service Officer and the Fire Department EMS Coordinator was unwise in the long term. She remarked that the perception that the City cut employees and funded consultants was not good. She stated her opposition to spending over $1 million from the reserves to fund the Foothills agreement with these developers at this time. She described this year's budget as having more style than substance. She cited the spending of more money over the last two years on the Centennial Celebration than on the EMS Coordinator and the Community Service Officer. John Surrett, LONAC Chairperson, 1685 Edgecliff Terrace He remarked that the LONAC members who attended the Budget Committee meetings had been impressed at the time provided in the agenda at every meeting for citizens to speak. He acknowledged the diligent and thorough work done by the Committee members before making their recommendations. He indicated that the LONAC Budget Committee studied the proposed FY 2010/2011 budget. He reported that the LONAC members unanimously adopted the following positions recommended by the LONAC Budget Committee at the June 7 LONAC meeting. City Council Regular Meeting Minutes Page 8 of 28 June 15, 2010 He argued that, in order to keep the quality neighborhood plan development essential to the quality of life in Lake Oswego, the City should retain fuel staffing for neighborhood planning. He indicated that re -assigning the neighborhood planners to the Comprehensive Plan as an alternate to neighborhood planning was not acceptable. He addressed the issue of funding speculative proposals and development projects. He cited the large capital improvement projects, such as Foothills ($1.1 to $1.3 million), the Tigard water agreement ($200 million), the streetcar and other projects. He argued that when these projects were delayed or cancelled, their staff requirements should be cut and their general fund allocations eliminated and/or reallocated. - He contended that these proposals affected the quality of life in Lake Oswego during these recessionary times by affecting the affordability of the community and the citizens' ability to continue to live in Lake Oswego. He stated that the property tax reserves should not be depleted to pay for consultants on speculative development projects. He argued that developing Foothills and the streetcar did not enhance the quality of life in Lake Oswego. He held that this expenditure of reserve funds in advance of the Lake Oswego 2015 financial outlook was an ill-advised use of reserves that the City might need for more critical services later on. He observed that the General fund reserves had only $18 million but the line of credit on the West End Building was $20 million. He noted that the terms of the loan required that the reserves be equivalent to the outstanding principal owed on the loan, which put all reserves in jeopardy if the loan was called. He argued that the reserves should be maintained at no less than the level of the principal owing on the line of credit loan. He contended that continuing to spend property tax dollars for a speculative real estate investn gent with no determined use, no demonstrated identifiable revenue generation, and no long term financing options was not acceptable and not a prudent management of taxpayer dollars. He spoke of resolving the disposition of the West End Building in 10 to 12 months. He discussed the Capital Improvement Plan (CIP) forecast and budgeting and staffing requirements. LONAC agreed with the City Manager that the City had to get back to basic baseline services. Therefore, the long-term plans should follow the baseline service ,requirements. He spoke of a regular re -assessment of the ratio of supervisory staff to work staff when matching CIP proposed programs and current baseline staffing requirements. He contended that economic development was not a baseline City function, but rather a Chamber and private sector business promotion role. He argued that the City should not have created the Economic Development Department because the citizens did not request it. He held that the businesses that did request it should pay for it. He indicated that if there was no measurable progress by the end of 2011, then the City should discontinue the department, eliminate the director position, and return the activities to the private sector. He mentioned LONAC's support of eliminating the Economic Development half-time administrative assistant in this year's budget. He addressed budget transparency, reserve identification, and actual budget reporting. He argued that the ending funding balance reserves should be clearly identified by department, and not rolled up into one mega -general fund reserve account. He advocated for bi-monthly reporting of actual to budget in all General fund accounts for the benefit of the citizens. He suggested publishing the reports in Hello LO. He discussed full faith and credit obligation bonding and the City's bond rating notification. He stated that the City's new practice of issuing full faith and credit obligation bonding without a full disclosure to the citizens, property owners, and taxpayers of Lake Oswego before issuing the bonds was not acceptable. He described this practice as a skirting of the voter approval requirements for general obligation bonding, as the collateral for both types of bond was the aggregate assessed value of all property in the city. He alleged that the LOIS bonds were an example of the Council deciding not to request voter approval of such bonds. City Council Regular Meeting Minutes Page 9 of 28 June 15, 2010 He stated that the City had to be accurate when publicizing bond rating house ratings of Lake Oswego bonds before bond application. He spoke to including the definitions of the three types of bonds in the budget glossary (full faith and credit, general obligation, and revenue). Mr. Surrett indicated to Councilor Johnson that LONAC had a quorum for its vote with about 20 people voting. Peter Sweet, 796 First Street He re,)� the June 21 letter he sent to the Council expressing his dismay at inclu,;: �,g over $1 million for plan, ,ing the Foothills/streetcar project in this year's budget. He referenced tl Ee April 13 development study session with Bruce Wood. He stated that he was a retired banker with over 45 years of experience. He described the current down cycle as the worst he has ever seen. He concurred with most commercial development experts that the equity and debt pieces for funding major commercial projects were dead in the water for the next decade. He argued that the Mayor's conclusion that public money had to replace the lack of private resources to build the Foothills project and the streetcar extension was wrong. He disagreed that the City should take the development risk because private sources were not available. He commented that the reasons that private sources were not available was the uncertainty of financing with the glut of condo real estate yet to be worked off and competent developers having burned through their own equity and private banker equity. He commented that, adding to these difficult to overcome financial risks, the City was proposing to develop a risky location with multiple issues. He questioned why any competent developer team would want to team up with the City, given its development track record with the West End Building, the US Bank project, and City Hall, unless the developer intended to shift the project risk to the City. He alleged that the selected developer for the Foothills project had a checkered ; ecord of success, depending on boom/bust cycles. He argued that the City did not possess the skill sets necessary to embark on this risky development in a down cycle. He recalled that the case presented at the May 7 First Addition meeting for building the streetcar mentioned providing an alternative for 500 cars. He asked where the study was that showed how many Lake Oswego residents would choose this mode of commUting. He held that there was too much at stake to have a `build it and they will come' attitude towards this project. He stated that he did not believe that they needed to adopt a `new normal,' but rather they needed to husband their resources and wait to see what happened as they crawled out of this recession. He mentioned that Mayor Hoffman and one Councilor responded to his e-mail, and the Mayor attended the monthly FAN meeting. He indicated that the Mayor's rebuttal to his e-mail had been that the City needed to plan now in order to be ready for the next upturn in real estate. He said that, in response to his question about what due diligence the City had done in selecting Williams/Dame & White, the Mayor explained that several Foothills property owners selected the firm and that the City accepted the company. He indicated that his understanding of the Mayor's answer as the City was hiring a developer, on which it has done only cursory checking, who also represented the landowners, with whom the City would have to negotiate a land purchase price in the future. He said that he interpreted the Mayor's response as the City was providing Williams/Dame & White with interim consulting income with no risk to the company, as it weathered its own real estate turn down. Gary Gipson, 19 El Greco He mentioned that he attended all the Budget Committee meetings and was in.awe of all the work put in. He stated that he disagreed with some of the outcomes. He referenced an article in the Oregonian last week about the Portland Development Commission having spent $13 million buying South Waterfront land for affordable housing but most of the money has gone to the lead City Council Regular Meeting Minutes Page 10 of 28 June 15, 2010 developer. The article also mentioned the economic downturn and the various failures and shortcomings of the project. He commented that the Council was preparing to allocated $1.1 million in Lake Oswego funds and enter into a pre -development agreement (PDA) for the Foothills project with the same developers while the economic downturn was still in full swing and Portland property values forecasted to decrease by 10% a year for the next three years. He observed that the Foothills project was completely i•i:ertwined with the streetcar program. He argued that the controversial streetcar program was bei ig advanced contrary to studies indicating that it would do little to alleviate the congestion on Highv.,ay 43. He mentioned the City's annual interest only payments on the West End Building ranging from $200,000 to $300,000 a year currently but with the potential of increasing to $1 million per year as interest rates rose. He commented that, although Lake Oswego was not currently in a financial crisis, its economic position was precarious at best. He argued that continuing the Foothills and streetcar projects in this economy was neither responsible nor in the best interests of the city. He held that the City should complete a new flood plain study of the Foothills area before spending additional funds on any contractual agreements regarding the project. Mayor Hoffman closed the public hearing. Mayor Hoffman recessed the meeting for a break at 8:20 p.m. He reconvened the meeting at 8:30 p.m. COUNCIL DISCUSSION Councilor Hennagin moved to adopt Resolution 10-31 for discussion purposes. Councilor Johnson seconded the motion. Councilor Olson expressed her appreciation to all the citizens who testified this evening. She said that she was disappointed that they were laying off some good employees She spoke in support of reinstating the EMS Coordinator position. She cited the new information provided to the Council at the June 5 Round Table regarding this position. Councilor Olson moved to reinstate the EMS coordinator position in the Fire Department. Councilor Moncrieff seconded the motion. Councilor Jordan mentioned that she did not attend the final Budget Committee meeting. She expressed her appreciation for the work done by the Budget Committee and the staff in getting the budget to this point. She spoke in support of the motion. She recalled the Budget Committee's discussion about cutting technical training and services and preserving training and services for fire and police, which were critical services for the community. She commented that even critical services needed to make sure that their departments ran as efficiently and effectively as any other department, including making changes to save the taxpayers money while providing the same kinds of services. She mentioned the personnel contract issues that the Council and the Budget Committee did not always understand which required management level personnel to do certain things. Councilor Hennagin commented that he had a mixed reaction to the motion. He recalled that the Fire Chief told the Budget Committee that he could get by without this position because his people could get the necessary training through other sources. He referenced the testimony heard tonight from the Union President and other fire department personnel giving convincing information for retaining this position. He asked to postpone this motion until the Council obtained more information about the overtime and the countervailing costs potentially incurred by eliminating the position versus keeping the EMS Coordinator position. Mayor Hoffman indicated that he supported the motion. City Council Regular Meeting Minutes Page 11 of 28 June 15, 2010 Councilor Moncri ff said that she would support the motion, although she too had a difficult time with this area of the budget. She suggested filling the position for one year while the City examined the most efficient and effective way of providing this service, and then revisiting it in one year. Councilor Tierney recalled that he had voted to eliminate the position at the Budget Committee, but after spending more time on it, he became aware of the merits of putting it back in. Therefore, he would vote in support of the motion. A roll call vote was taker.,, :and the motionap ssed with Mayor Hoffman, Councilors Johnson, Olson, Moncrieff, Tierney, and Jordan voting `aye.' Councilor Hennagin voted `no.' [6-1] Mr. McIntyre noted that Mr. Wheeler would track the changes on the white board and keep a running total. Mr. Wheeler asked the Council to affirm the proposed management changes relating to the additional funds from the library levy and the transfers into the Street fund and the Golf fund. Mr. McIntyre pointed out that accepting the management amendments changed the amount of money the Council had to appropriate through amendments. Mayor Hoffman indicated that he would entertain a motion to accept the management changes as an amendment to the base resolution, acknowledging the library levy, the revenue shortage, and the transfers from the General fund. Councilor Tierney asked for clarification on the transfer from the General fund to the Street fund. He pointed out that they could reduce the increased capital in the Street fund by $44,000 and keep the $44,000 in the General Fund. Mr. McIntyre concurred. He explained that staff's intent was to restore the numbers approved by the Budget Committee. Councilor Hennagin moved to amend the budget to increase the library levy income by $230,000 to reflect the new figure coming from the County library levy. Councilor Jordan seconded the motion. Ms. Euler confirmed to Councilor Olson that the $230,000 resulted from a combination of Tualatin coming into the Clackamas County Library District and the increase in collection rates on property taxes countywide from 93% to 96%. She indicated that this was separate from the County property tax revenue and would not affect it. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] Mr. McIntyre explained that the $44,000 transfer resulted from a recalculation of the Street Maintenance Fund for the two golf courses, which significantly lowered the fee for the golf courses He indicated that staff wanted to make sure that the budget for the Street fund reflected the reduction. He reiterated that the Council did not have to make the transfer; staff could lower the amount of street maintenance performed in FY 2010/2011. Councilor Johnson moved to transfer $44,000 from the General Fund to the Street Fund. Councilor Jordan seconded the motion. Councilor Tierney spoke in opposition to the motion. He argued for keeping the money in the General fund where the City had more latitude to use it for potential expenditures, and where the City might not spend it before the end of the year. He noted that the capital outlay in the Street fund doubled from last year to $1.5 million. He commented that they could 31ways move this money to the Street fund later if there was a demonstrated need. Mr. McIntyre indicated to Councilor Hennagin that not having the $44,000 in the Street fund would not likely affect the City's average Pavement Condition Index (PCI). He explained to City Council Regular Meeting Minutes Page 12 of 28 June 15, 2010 Councilor Tierney that staff would use whatever amount of money the Council budgeted for streets to do the street work. The more money budgeted, the more streets staff did, and vice versa. Councilor Moncrieff spoke in support of the motion. She said that it was a priority for her to bring the infrastructure up higher than its current level. She agreed that it was a small amount, but she would like to see it put towards resurfacing or slurry seals. Mr. McIntyre confirmed to Councilor Jordan that the City could use Street fund monies to resurface pathways. Councilor Jordan spoke in the support of the mot'k;n, observing that bringing some pathways back up to shape where people did not trip would be a 0(,od use of the money. A roll call vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Moncrieff, and Jordan voting `aye.' Councilors Olson and Tierney voted `no'. [5- 2] Councilor Johnson moved to decrease golf materials and expenditures by $9,000. Councilor Olson seconded the motion. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] Mr. McIntyre spoke to the $50,000 placeholder he requested to add to the budget for the architect consultant that the Council subcommittee on the West End Building would need. He explained that he wanted to have enough money to fund the need adequately but he did not have a scope of work yet to use in pricing the work. He reminded the Council that the City needed a chiller in the West End Building to cool the building this summer, or the building would not be habitable. He mentioned staff's reluctance to invest significant funds into the facility, not knowing what its future was. He explained that one chiller has completely failed and the other desperately in need of repair. He noted that the funds for both these items were one-time uses. Councilor Jordan moved to allocate $50,000 as a placeholder for the study of the Wast End Building and $50,000 as a placeholder for the chiller in the West End Building. Councilor Hennagin seconded the motion. Mr. McIntyre confirmed to Councilor Olson that he proposed repairing the chiller rather than spending a quarter million dollars to replace it. He explained that he preferred to keep repairing the chiller over time, as he did not know what the use of the facility would be. He pointed out that a new chiller had a life expectancy of 15 to 20 years. Councilor Olson expressed concern at spending money to repair it and then replacing it next year. Mr. McIntyre compared the chiller to an old car: at some point, it would stop running. Councilor Hennagin spoke in support of budgeting for a process that would, in the long run, save the citizens money by determining what action to take on the WEB and how to finance it. Councilor Tierney commented that he thought that the Budget Committee deliberations should have considered both these items, especially the financing question, but the May 1 date slipped. He said that he would oppose the motion on principle. A roll call vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, H nnagin, Moncrieff, and Jordan voting `aye.' Councilors Olson and Tierney voted `no'. [5- 2] Councilor Jordan commented that one could construe the Lakeridge tennis courts resurfacing as a neighborhood enhancement grant, given that the Lakeridge and Palisades neighborhoods jointly requested funding. She suggested reducing the $20,000 allocation to the Neighborhood Enhancement Grant program to $5,000 and shifting $15,000 towards the $30,000 for the tennis courts. She asked staff to review the neighborhood grant program throughout this year in terms of what it should look like and what it should fund. with an eye to whether to keep the program or not. City Council Regular Meeting Minutes Page 13 of 28 June 15, 2010 She described the economic and capital development issues as an important part of what the City was doing right now. She argued that, regardless of what happened with Foothills, the City would not know what could happen there without studying it. She commented that the Economic Development Department would make sure that the studies, for which part of the $1.1 million paid, were properly done. She held that it was "penny wise and pound foolish" to eliminate the $33,000 for Economic Development in light of the $1.1 million for the Foothills plan. Councilor Jordan moved to reduce the Neighborhood Enhancement Grant program from $20,000 to $5,000, to transfer $15,000 from the Neighborhood Enhancement Grant line item to the Lakeridge Tennis Court project, and 4o reduce the Lakeridge tennis court allocation by a like amount. Councilor Hennagin seconded the motion. Mayor Hoffman asked if the Council could declare the Lakeridge tennis courts a neighborhood grant from the dais. Councilor Olson said that the neighborhood planners administered the program. Councilor Moncrieff indicated her support for the motion, citing the Palisades Neighborhood Association's support of resurfacing the tennis courts as a neighborhood amenity. She held that this was an appropriate allocation of those funds. Councilor Olson spoke against the motion. She said that she thought it circumvented the neighborhood grant program application process. She disagreed with linking the grant program reduction to the Lakeridge tennis courts. Councilor Tierney spoke against the motion and in support of affirming the Budget Committee's decision. Councilor Johnson indicated that she would vote against the motion in support of the currently budgeted amount. She recalled that she supported the increased neighborhood grant funding because the City was re -assigning the neighborhood planners to the Comprehensive Plan. Councilor Hennagin asked how taking away the neighborhood planners had anything to do with the neighborhood enhancement grant program, given that the program was for beautification improvements. Councilor Johnson explained that, while the planners and the grant program did not do the same thing, she saw both of them as an investment in the neighborhoods. Mayor Hoffman said that he would oppose the motion, although he supported the tennis courts. He commented that he thought they could have both the increased funding and the resurfaced tennis courts. A roll call vote was taken, and the motion failed with Councilors Hennagin, Moncrieff, and Jordan voting `aye.' Mayor Hoffman, Councilors Johnson, Olson, and Tierney voted `no.' [3- 4] Councilor Olson moved to remove the $1.1 million budgeted for Foothills. Councilor Tierney seconded the motion for discussion. Councilor Olson stated that she did not oppose redeveloping Foothills at the right time and in the right way with a sound financial plan. She indicated that she understood that the $1.1 million was a one-time expenditure out of reserves that would not be available for other things, if eliminates from the budget. She explained that she would be more comfortable waiting until Tri -Met repaid the $1.5 million loan from Lake Oswego reserves in 2012 before spending this additional money out of reserves. She acknowledged the argument that Foothills was a Council goal, but pointed out that there were other Council goals not funded this year. She indicated that, until the capital markets improved and there was more private money available to share the risk, she was not comfortable reducing the General fund by this amount this year. City Council Regular Meeting Minutes Page 14 of 28 June 15, 2010 Councilor Hennagin spoke against the motion. He pointed out that the agreement with Williams/Dame & White contained off ramps for the City to opt out of the agreement, should the study determine that any factor precluded viable development of the site. He mentioned the LLC formed by Foothills property owners that had an agreement with Williams/Dame & White to move ahead with planning. He observed that this was a complex project with many factors, participants, and agencies involved; the planning process could well take four to five years. He held that when commercial development money became available, it would come to Lake Oswego because cif the attractiveness of the community to people of different ages. He argued that it would be a m'stake for the City not to begin the planning process, especially with an agreement that al!owed the City to opt out if the planning process found insurmountable roadblocks. Councilor Jordan concurred with Councilor Hennagin in supporting this investment of City resources at this time. She contended that one of the reasons that nothing happened in Foothills during one of the biggest development booms in Oregon's history was the fact that these obstacles were mostly public works problems. She argued that the area would have redeveloped had the unknowns that this $1.1 million would help ascertain already been known. She spoke of being prepared for what would happen in the next go round. Councilor Tierney indicated that he did not support the motion. He explained that he supported this expenditure because this was the area in Lake Oswego with an opportunity to increase the tax base to generate more revenue for the citizens. He argued that it was critical to study it and to look at it as an investment. He acknowledged that the area posed numerous obstacles that they had to overcome before getting to the economic model. He mentioned his intention to make sure that the economic model made sense for the citizens, the City, the private property owners, and the developers. He held that the financial basis sheuid be the primary focus with the ancillary quality of life issues secondary to that. He commented that, while no one had a certain answer to the question of whether this was the right time to begin this long planning process, he was inclined to think that it was, given the variables in place, such as the property owners and the developers ready to go. Councilor Olson stated her opinion that the main question was whether it was the right time. She said that she did not think that this was the right time. She agreed that the Foothills area represented an opportunity for new housing options and keeping increased density out of the neighborhoods. She questioned funding this project in light of the service and personnel cuts discussed in the City Manager's memo as "being a condition of slow revenues, increasing costs, and economic uncertainty." Councilor Hennagin commented that they were not funding this project with money that the City could use for other General fund purposes. He pointed out that the Budget Committee citizen members, who looked for ways to save money, voted to allocate these funds after listening to staff's presentation on the proposed agreement. Mayor Hoffman said that he would oppose the motion because it focused on the wrong thing. He indicated that his comments were in response to Mr. Sweet. He explained that this was not a developer agreement but rather a pre -development agreement with the intent of identifying potential obstacles to developing Foothills. He argued that Foothills was the last opportunity for development in Lake Oswego for all practical purposes, and the only opportunity to bring the river to the downtown, which was the heart of the Lake Oswego community. He reminded those who had not been here in the late 1990s and early 2000s that those Councils took calculated risks in making investments in the best interests of the public. He ernphasizad that these projects were public/private partnerships. He emphasized that this would help determine whether the Foothills area was developable. He spoke of catching the inevitable next real estate cycle. City Council Regular Meeting Minutes Page 15 of 28 June 15, 2010 A roll call vot was tak n, and th motion fail d with Councilor Olson voting 'ay .' Mayor Hoffman, Councilors Johnson, Hennagin, Moncrieff, Tierney, and Jordan voted `no.' [1-6] Councilor Moncrieff moved to reinstate the $33,000 for a half-time administrative position and the $9,000 for rent in the Economic Development budget in the General Fund. Councilor Jordan seconded the motion. Councilor Moncrieff argued that, in these hard economic times, it was important to invest in the economic vitality and development of Lake Oswego. She desr;ribed this position as a good use of human resources to free up the Economic Development peopi;, io pursue economic development while leaving the administrative jobs to an administrative person She commented that she saw the importance of having the Department in the downtown to work with LORA and Foothills. Councilor Hennagin commented that he had thought that the Budget Committee made a mistake in not having an administrative assistant to relieve the highly paid professionals from doing their own routine clerical work. He indicated that, even so, over -turning the Budget Committee decision presented a dilemma to him. Councilor Tierney indicated that he would vote against the motion. He described a domino effect in moving the Economic Development Department from City Hall, causing a $9,000 rental expense and a $33,000 personnel expense. He pointed out that LORA paid the other half of those expenses, which doubled the expenditure. He argued that they should have kept the department in City Hall as part of a better utilization of the building space. Councilor Johnson spoke to the Council being smart about how it invested money. She described having an administrative person as a more efficient way of managing a department. She pointed out that this department would still need additional administrative support even if it stayed in City Hall. She indicated that she would support the motion. Mayor Hoffman said that he would support the motion for the same reasons. He argued that it was important to allow the Economic Development team to do their work for the City efficiently. He commented that Mr. McIntyre would report to the Council next year on whether it made a difference having the team in the Downtown. Councilor Johnson stated that the citizens have asked for economic development. She mentioned the long history of economic development in the community, noting that the Festival of the Arts started as an economic development program to get people buying locally in the Downtown. She pointed out that supporting local businesses was an element of sustainability. She argued that it was time to support the businesses that supported the City. A roll call vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Moncrieff, and Jordan voting `aye.' Councilors Hennagin, Olson, and Tierney voted `no'. [4- 3] Councilor Moncrieff asked the City Manager to look for any possible efficiencies or opportunities for the City to work with the School District to assist it in these difficult financial times. Mr. McIntyre indicated that he has been talking with Dr. Korach about continuing to find areas of cooperation and partnership between the City and the District, which he would report on to the Council this summer. He commented that it was difficult because of Measure 5. He mentioned the City's cooperative arrangement with the District respecting recreation services, which they would continue to discuss. Mr. Wheeler indicated to Councilor Tierney that there were $254,000 in unappropriated funds left on the tracking board. Councilor Tierney observed that a City this size could find some way to use those funds in the coming year. He advocated putting them in the General Fund, as opposed to the reserves, because of the latitude allowed by the General Fund. City Council Regular Meeting Minutes Page 16 of 28 June 15. 2010 Councilor Tierney moved to allocate the unappropriated $254,000 to the General Fund Conting ncy. Councilor Jordan seconded the motion. Councilor Jordan commented that she supported the motion because she thought there were opportunities to use the money to leverage matching grants and other monies that the City might find in enhancement or pathways grants. Councilor Olson indicated that she supported the motion because this was close to the amount that the Budget Committee did not ipprove for the maintenance and restoration of natural areas and open space. She speculated ',;-At the Council would likely be interested in funding that item after receiving the Second Look Ta4< Force report. A roll call vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] Councilor Hennagin moved to adopt Resolution 10-31 (the FY 2010/2011 budget) as amended (nine amendments). Councilor Jordan seconded the motion. Mr. Powell mentioned the note received by the Council today that the citywide revenue mentioned in Resolution 10-31 needed to be adjusted by $87,000 for reduced property taxes and the bonded debt fund. Councilor Johnson moved to amend Resolution 10-31 to adjust the citywide revenue by the sum of $87,000, which also resulted in the same net change to the total unappropriated reserves. Councilor Jordan seconded the motion. A voice vote was taken, and the motion pas d with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] A roll call vote was taken on the main motion, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Moncrieff, Tierney, and Jordan voting `aye.' Councilor Olson voted `no'. [6-1] 7.5 Resolution 10-32 of the Lake Oswego City Council, acting as the Lake Oswego Public Contract Review Board pursuant to ORS 279A.060, making findings and approving a special procurement for administration of City Public Arts Programs; and authorizing the Mayor to sign a three-year contract with the Arts Council of Lake Oswego for FY10-11 through FY12-13 STAFF REPORT Ms. Gilmer introduced Cheryl Brock, Lake Oswego Arts Council Executive Director. She mentioned that the Council just approved $100,000 in the FY 2010/2011 budget for City public art programming. She explained that a special procurement was needed to award the funds to the Arts Council for administrating the City Public Arts programs without going through the public bidding process. If the Council agreed with the staff findings (p.110), then the next step was awarding a three-year contract to the Arts Council She explained that, even though the budget allocated funds for only one year, a three-year contract made it easier to administer the programs over a long period (p.109). She mentioned that the contract did not limit the Council to allocating the same level of funding from year to year, if it chose to modify the amount. Councilor Jordan expressed her appreciation for this coming forward. She recalled the discussion during the Council goal -setting session of the importance of the arts to the quality of life in Lake Oswego. She noted that this three-year contract helped the Arts Foundation secure other funding because it was more stable than a one-year deal. PUBLIC TESTIMONY Mr. Powell reviewed the standard hearing procedure and testimony time limits. City Council Regular Meeting Minutes Page 17 of 28 June 15, 2010 Mayor Hoffman opened the hearing to public testimony. Diana Boom, PO Box 328, Lake Oswego She commented that Cheryl Brock has done a great job as the Executive Director of the Arts Council. She mentioned that she has worked with her on the Gallery without Walls. Mayor Hoffman closed the public hearing. COUN ::II_ DISCUSSION Counci'.jr Jordan moved Resolution 10-32 of the Lake Oswego City Counc0, acting as the Lake Oswego Public Contract Review Board pursuant to ORS 279A.060, making findings and approving a special procurement for administration of City Public Arts Programs; and authorizing the Mayor to sign a three-year contract with the Arts Council of Lake Oswego for FYI 0-11 through FYI 2-13. Councilor Tierney seconded the motion. Mr. Powell indicated to Councilor Hennagin that his wife working in a non -remunerative role as a volunteer on the Arts Council did not require him to recuse himself, as that was not a technical conflict of interest. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] 7.6 Resolution 10-33, a resolution of the Lake Oswego City Council, acting as the Lake Oswego Public Contract Review Board pursuant to ORS 279A.060, making findings and approving a special procurement for services related to development of a framework plan together with proposed Comprehensive Plan and Code Amendments for the Foothills Area; and authorizing the Mayor to sign a predevelopment agreement for the Foothills Area Resolution 10-34, a resolution of the City Council of the City of Lake Oswego declaring official intent to reimburse certain expenditures from Urban Renewal Funds, including proceeds of indebtedness STAFF REPORT Mr. Williams introduced Matt Brown, Williams/Dame & White. He noted that Christie White and Dike Dame were in the audience to answer questions. He explained that the first resolution (10-33) adopted findings and approved a special procurement for work related to the Foothills Area as an exemption to the competitive bidding process. In addition, the resolution authorized the Mayor to sign the Foothills pre -development agreement (PDA) for predevelopment planning work in the 120 -acre Foothills District (industrial area, Oswego Pointe, and Oswego Village). He indicated that the second resolution (10-34) preserved the Council's option to reimburse the General fund for the General fund expenditures proposed this evening. The reimbursement would come from the potential LORA funds from a new or an extended urban renewal district in the Foothills area. He reviewed the background of the Foothills development efforts, the Council's direction to staff to draft an agreement with Williams/Dame & White and the property owners, and the opportunities that Foothills brought to the community (pp. 169-170). He reviewed the objectives of the PDA (pp. 170-171). These included a shared vision and planning principles, infrastructure and development issues, financial feasibility, property assemblage, and strong project management. He mentioned the parties to the agreement (p.171). He referenced the work plan. budget, and schedule contained in Exhibit C of the agreement (pp.211-216). He spoke of the funding strategy and termination clauses (p.172). He described the project oversight elements (p.171); including an City Council Regular Meeting Minutes Page 18 of 28 June 15, 2010 Oversight Committee, a City technical staff committee, and a City project manager. He commented that the public participation element was important to the success of the project (p.171), since the plan had to be acceptable to the community. He indicated that the Framework Plan was the main element containing the deliverables (the significant structural and public works issues needing resolution) and the implementation products (the code and regulatory amendments needed to move forward). He listed the significant issues: the flood plain, the wastewater treatment plant, access to Hwy 43, a workable street plan, parking, the streetcar extension; environmental issues. He rrnr,tioned other issues of concern, including public infrastructure, public facilities, no negative finers ;ial impact to the School District, open space, urban form, and land use. He stated that this should have no negative affect on the School District. He noted that City would have to make extensive efforts to put all the implementation products in place in order to allow the development to occur. He presented a list of the wide variety of disciplines involved in addressing the various issues and hurdles to the development. He reviewed the budget ($1.3 million) and the funding sources (p.172). He commented that the $525,000 fee for Williams/Dame & White was a reasonable fee for all the project management, public outreach services, and land use expertise that the company would provide. He indicated that the City could terminate the contract at any time with no cause, and the parties involved could mutually agree to terminate the contract if any of the significant elements within the development were not financially feasible (p.172). He mentioned the concurrent work on the development agreement (p.172-173). He noted the importance of the urban renewal plan (p.173), which would also be done in conjunction with the PDA. He commented that there was a complementary resolution to Resolution 10-43 before the LORA Board regarding reimbursement of the General fund with future tax increment revenues (p.173). Mr. Brown said that Williams/Dame & White has been working in the Foothills area since late 2008. He described the area was one of the best opportunities in the Metro area for urban infill development. He indicated that six property owners selected their company through a reciuest for proposal process as the best company to handle the complexity of issues that they were facing in trying to redevelop their 12 acres of property. He indicated that the location of this property between Lake Oswego's thriving downtown and the Willamette River and the public park investments already made by the City in the area were strong positive attributes on which they could build. He referenced the question of `why was now a good time to do this work.' lie stated that they believed strongly that these downturns gave cities, private developers, and others in the real estate business a good opportunity to plan for the next cycle and to be ready when it emerged. He recalled the point made that not much activity has occurred in the Foothills area. He commented that that was true of similar properties that also did not have the correct zoning or resolution of flood plain, infrastructure, or environmental issues needed to attract capital investment to the area. He commented that the goal of this planning process was to set the table for development by creating an attractive investment opportunity of the entire 120 acres. He stated their belief that there would be multiple opportunities for multiple developers to build the City's vision for the area. He stated that, over the next 20 months, they hoped to remove the development obstacles currently in place. He indicated that they would work hard to make sure that the citizens' voices were heard throughout the process, as it was important to produce a publicly supported plan. He mentioned a final goal of producing a plan that achieved results on the ground, and not one that sat on the shelf. He explained that the PDA only took the project through the planning phase. He emphasized the multiple opportunities to terminate the contract, should any obstacle stop the development. He pointed out that there was no real obligation on the City beyond this initial planning phase. The City Council Regular Meeting Minutes Page 19 of 28 June 15, 2010 development agreement would have to stand on its own merits and make financial sense for the City and the private sector in order to move forward. He stated that they were confident and had a great deal of professional experience in managing this kind of multi -disciplinary, multi -issue complex project. He indicated that they looked forward to working with the Council, the City staff, and the public to move this project forward. QUESTIONS OF STAFF Mr. Powell indicated to Ccs-Ancilor Hennagin that the Council was required to hold a public hearing only on Resolution 'i 0-33, but it could include Resolution 10-34, if it so desired. Mayor Hoffman commented that he did not think any one was interested in the reimbursement issue. Mr. Williams indicated to Councilor Hennagin that the potential reimbursement went up to the $800,000 and also included the money expended for the urban renewal planning work. Mr. Powell discussed the amendment to Resolution 10-34. He indicated that the new Section 4 stated that repayment of this debt was subordinate to other LORA debts, which allowed the Redevelopment Agency to continue its financing activities in the interim. He emphasized that the expenditures for reimbursement had to go for either an urban renewal plan development or projects under that plan. Mr. Williams confirmed to Councilor Tierney that the City would be letting contracts for consultants to work on the urban renewal plan in conjunction with the PDA. He gave a ballpark estimate of a $100,000 to $150,000 range. Mayor Hoffman cited the lateness of the hour in stating that he would entertain a motion to reduce the allotted speaking time from five minutes to three minutes. There was no motion. PUBLIC TESTIMONY Mayor Hoffman opened the hearing to public testimony. • Janine Dunphy, 15450 SW Boones Ferry Road She referenced the Oregonian article published last Wednesday (June 9) entitled "Portland Leaves Empty Development Instead Of Affordable Housing in South Waterfront." She questioned whether it was wise for the City to sign a PDA with the same developer involved in that project. She noted that the South Waterfront project was similar to the proposal for Lake Oswego with a combination of millions of dollars of public money and private money. She mentioned that the developers fell behind schedule and borrowed significant amounts from the City in addition to a $1.7 million development fee, yet the City of Portland still did not have the promised housing mix. She noted that the PDA tonight had a $1.3 million budget, including a $520,000 fee to Williams/Dame & White to manage the other consultants hired. She mentioned that she did not support moving ahead with the Foothills project at this time. She asked if it was wise to use this firm. She asked why the contract did not go out to bid, noting that Portland also did not go out to bid on its contract. She asked why the City's Economic Development Department could not manage the other consultants, so that the City did not have to pay this significant amount of money to anyone. She observed that an integral part of the agreement was a commitment from the City for a streetcar, as well as having the streetcar financing in place. She pointed out that the citizens and the Council have not yet made a decision on the streetcar, as the Task Force has yet to make its recommendation. She mentioned watching the April 13 Council study session with Bruce Woods. the development expert, who said that this type of development was not feasible now or in the near future. She asked that the City not sign this agreement at this time, especially with this developer, until they City Council Regular Meeting Minutes Page 20 of 28 June 15, 2010 knew more. She mentioned her concern that Williams/Dame & White was also an investor in the Foothills LLC. She questioned the ethics of that situation. Jerry Wheeler, Chamber CEO, 13594 Blazer Trail He thanked the Council for its hard work during the budget process. He urged the Council to support the PDA. He argued that the reality was that now was the time to prepare for the future and to engage in a process that would provide the due diligence to establish whether Foothills was the development opportunity that many believed it to be. He held that they had a small window of opportunity to accomplish a great deal in a shorter time period than before. He cited property owners and businesses willing to take a leap of faith and a Council that believed that a community that did not grow could not sustain its quality of life and services. He mentioned that the property owners tied up their properties in creating the LLC, which meant that they had a far greater investment in the area than implied by the small amount of cash up front under discussion. He stated that, in today's market, only public/private partnership projects would succeed, He listed the benefits of moving forward with this agreement: a broader economic tax base, potential housing for families and those wishing to age in place, and a new transportation link from downtown Portland to downtown Lake Oswego via the river and via rail. He argued that these benefits far outweighed the risk of moving forward with the agreement. He referenced the opt out opportunities in the PDA that protected taxpayer investment down the road. He agreed that ultimately the taxpayers would decide much of the future for Foothills. He contended economic development attracting new families, new jobs, and new tax revenues was the only way to solve tight dollars and rising costs. He encouraged the Council to commit to economic development, citing the powerful impact developing this amazing resource could have on Lake Oswego's quality of life. • Mike Erickson, Stampher Road Neighborhood Association, 255 Stampher Road, Lake Oswego He commented that, while he personally thought the Foothills development could be a good thing, the neighborhood had mixed feelings about it. He mentioned that there were many projects going on right now on Tryon Creek, including a $300,000 to $400,000 salmon restoration project. He reported that the fish biologists have told the neighborhood association that an extension of the Portland to Lake Oswego streetcar required moving the tracks over 50 feet to run through the Jarvis property and building a trestle bridge right over the salmon restoration project. He described the trolleys rattling the soil and disturbing the salmon runs as environmental issues not addressed yet that could block the streetcar. He indicated that the neighbors agreed that there has not been much communication yet between the neighbors and the trolley project. He recalled the vote passed just as he was moving into the neighborhood to purchase the Jarvis property with dedicated park bond dollars. He argued that the trolley tracks running through the Jarvis property removed the property's status as a dedicated park. He emphasized that there were several issues that needed addressing regarding the streetcar impacts. He commented that he thought spending $50 million per mile for a six -mile trolley run ($250 to $300 million project) was a waste of money. He recalled that the Council members had spoken of being fiscally conservative in their voter pamphlet statements. He argued that $250 to $300 million was not fiscally conservative. He contended that any money coming from the federal government would only add to the federal deficit. He questioned whether sending a trolley into the Foothills area as a key development element was worth all the fiscal issues involved. He stated his opinion that, if the City could make Foothills work without the trolley, many people would support the project. He pointed out that the buses ran only half full during peak traffic hours City Council Regular Meeting Minutes _ Page 21 of 28 June 15, 2010 now. He doubted that more Lake Oswego residents would give up their cars to take a trolley into Portland. He encouraged the Council to be fiscally conservative and to make the right decision not to waste taxpayer dollars on the trolley in these tough times. Diana Boom, PO Box 328, Lake Oswego She commented that she opposed this agreement for the reasons previously stated but she expected that the Council would pass it. She asked whether access to Hwy 43 was now an essential condition of development. She asked whether contamination would also be included. She asked if all parties had to agree for the C!"y to opt out. She asked if there were penalties, should the City opt out on its own. Gary Buford, 5 Camelot Court and 415 N State Street He mentioned that he was a civil engineer and surveyor by profession, a registered professional in Oregon who has done a lot of residential development work in the Lake Oswego area during the past 39 plus years. He indicated his familiarity with the City's planning process. He spoke of his amazement in learning that the City was providing $800,000 for pre -development planning for this project, something he has never seen the City do for any of his projects. He indicated that he understood that the City and the landowners needed to have questions answered. He commented that, as a civil engineer, he was very concerned when any part of a development was within a flood plain, as a considerable portion of this project was. He indicated that the concept of cut and fill allowing development on a flood plain did not make this project any more palatable to him. He discussed his concern about the Tryon Creek sewage treatment plant. He said that he knew of no current plans by the City of Portland to relocate or abandon that sewage plant. He mentioned that he had experience with sewage treatment plants, and wondered whether the Council had truthful knowledge about the cost and ramifications of moving or relocating a sewage treatment plant. He questioned the Council spending $800,000 without a full knowledge of what it was attempting to accomplish. He indicated that he had many more concerns about the project. He suggested that the Foothills property owners should develop their property and solve the development problems on their own, just as he has done for 40 years. He argued that the City should do what it needed to do and the property owners do what they needed to do, as has been the situation in development for many years. He stated that he did not object to development in the Foothills District but he thought that the property owners should finance it themselves. He reiterated that he did not think that the Council members understood the full ramifications of this project. He mentioned his understanding that the streetcar was necessary for Foothills and that Foothills was necessary for the streetcar. He asked whether that was the reason that the Council was moving forward on this. Charles "Skip" Ormsby, 170 SW Birdshill Road, Portland, Clackamas County He spoke in opposition to the contract. He noted that this was transit -oriented development, yet last Monday, he had probably been the only transit rider attending the Council meeting. He described transit in Lake Oswego as `pathetic,' which the streetcar would only make worse because it required transfers. He reiterated that transfers would kill the project because people did not like transfers and the time they took. He cited his personal experience in stating that transfers added on about seven minutes to a Lake Oswego to Portland trip. He encouraged the Council members to simulate the transfers as part of evaluating this contract agreement. He suggested that the Council send a postcard to its citizens informing them that it would be encumbering them to several hundred thousand dollars a year to refinance the West End Building City Council Regular Meeting Minutes Page 22 of 28 June 15, 2010 and the timing relative to the Foothills PDA and the selection of the locally preferred alternatives. He speculated that the Council would face serious problems with its voters in November if it did not do so. Leonard Bergstein, 2226 SW Main Street, Portland He indicated that he represented a growing group of individuals in neighborhoods who were interested in making the best decision for the locally preferred alternative in the transit corridor between Portland rnd Lake Oswego. He said that his clients had a hard time understandio.a_ how the Council coul,_1 ;:ote on this PDA to align the City's interests with the streetcar six rronth_ 5efore the Council selected the locally preferred alternative. He cited paragraph F in the PDA as irrevocably and straightforwardly tying the projects together. He presented his clients' request that the Council delay action on this PDA until the Council could make a clear legal determination that this decision would not prejudice its subsequent decision on the locally preferred alternative in December 2010. Jonathan Snell, 3250 Upper Drive He addressed the issue of greenfrastructure. He described a wooded wetland in the southeast corner of Foothills Park adjacent to Roehr Park and the river as representative of the City's unrealized opportunities to manage the community's natural areas in an effective manner. Fie indicated that the City funded some good work in that wetland, including removal of ivy on the trees. However, their follow up to the ivy removal found one tree that still had ivy growing on it. He cited this as an example of the continuity of care needed as the City went through the process of finding a cost-effective and efficient way to manage its natural areas. He commented that the work involved would not take as long as one might think, citing his own experience in discovering that what he thought would be an all day job of removing blackberries only took a couple of hours. He spoke of the power of appropriate herbicides and recognizing the plant succession process. He held that, if they took an intentional approach to natural area management, then they would find it a community and good will building effort. Carolyne Jones, 2818 S Poplar Way She stated her opposition to the contract. She quoted from the Oregonian June 10 article, "Empty Lots and Empty Promises," noting that most of the $13 million spent by the Portland Development Commission to buy South Waterfront land for affordable housing among other things went to the lead developers and yet the affordable apartments have not been built. She expressed her concern that this project was being structured as a windfall for the LLC partners. She mentioned that her research this afternoon found that the expected down payment for new residential developments was 20%. She indicated that she could not find out similar information on commercial development. She said that Mr. Williams had not known the answer either. She asked the Council to delay the project until the City could find out what the down payment was on commercial development and compare it to what the LLC owners have put up. Mayor Hoffman closed the hearing to public testimony. STAFF FOLLOW-UP Mr. Williams addressed the recent Oregonian article about the South Waterfront affordable housing. He reported that staff talked with the Portland Development Commission Director on the South Waterfront project and learned that North Macadam Investors (Williams & Dame) fulfilled all their required obligations in the development agreement, except for 30 units of affordable housing. He indicated that the affordable housing component was still in progress as the developers were still working on the first phase of the development (1,000 condominium units). City Council Regular Meeting Minutes Page 23 of 28 June 15. 20'10 He mentioned that the Portland Development director felt good about the work done to date. The director was very impressed with Williams & Dame, and considered them one of the only developers in the region capable of accomplishing the work done at the South Waterfront to date. He commented that a careful reading of the article found that it was really about the City of Portland's ability to accomplish some of the requirements for providing affordable housing for South Waterfront. He noted that the complexities of the entire development and current market conditions have made it difficult for Portland to get affordable housing in place, although the first affordable housing project was scheduled to start construction in November 2010. He said that he felt comfortable with the information that he ree -;ved back from the various people he spoke to who were involved with the South Waterfront project. Mr. Dame stated that his philosophy with respect to newspapers was to respond only to written questions and only in writing, as he did in this particular case. He pointed out that this article was about the Portland Development Commission, and not about Williams/Dame & White. He indicated that neither the Portland Development Commission nor the Portland Housing Bureau made any adjustments or corrections to his answers to the newspaper's questions. He confirmed that Williams & Dame, as the representative of North Macadam Investors, fulfilled all of its obligations for affordable housing, which were to make land available to Portland to construct said housing. He mentioned the background of the economic downturn that delayed the affordable housing project to this November. He recalled that they sold the tax credits for an affordable housing project four years ago for $1.03, which was at a premium. Today, with no one needing tax credits because no one was making money, they would sell them for 74 cents. He commented that the new Portland Housing Bureau, as reconstructed under Councilor Fish, has done an amazing job in pulling this affordable housing project together and getting it financed. He mentioned that he has worked on the design of this project for four years, essentially for nothing, as the loan all went to the architectural work and permit fees. He stated that he would give his personal and direct phone number to anyone wanting to discuss the facts of the situation with him, and not the stuff in the newspaper. Mr. Williams answered Ms. Boom's question about termination clauses. He said that the City could opt out of the agreement at any time without penalties. He clarified that if the City opted out, it would forego the reimbursement of the $130,000 by the industrial property owners. He explained that these property owners have invested a lot of money to date in work that the City asked them to do in the past. They had wanted assurances that this process would move forward to a product with which they could work. He discussed his expectation that they would not get to a point where they spent more than the $800,000, as they would know before then whether the City should opt out or not. He emphasized that he felt comfortable that, with the Oversight Committee in place, they would have good communication and understanding of where they were with the agreement as it moved forward. He commented that, although the City could opt out at any time, the goal was to complete the agreement and have development actually occur. He addressed Mr. Buford's comment about the treatment plant. He indicated that this plant owned by the City of Portland provided services for all of Lake Oswego. In addition, 40% of its treatment capacity served wastewater coming from Portland. He reported that the BES Director, Dean Marriott, was very interested in Lake Oswego's work and willing to look at options for moving forward. He said that Mr. Marriott's primary concern was protecting the Portland ratepayers, similar to Lake Oswego's concern about protecting the Lake Oswego ratepayers. He mentioned that the treatment plant was 50 years old and had a :lumber of significant issues that needed addressing. He said that staff would like to develop something that made the investment needed in the treatment plant work in the best possible fashion for any future Foothills City Council Regular Meeting Minutes Page 24 of 28 June 15, 2010 development. He indicated that this project included looking at the right solution for the treatment plant in a way that maximized the dollars that needed to go into the plant over time. He addressed the issues raise regarding the streetcar alignment and environmental concerns with Tryon Creek and the Jarvis property. He mentioned that Tri -Met has dealt with these kinds of environmental issues in the many projects that it has done. He assured Mr. Erickson and the Council that this project would look thoroughly at those issues and minimize to the extent possible any impacts to the Tryon Cove Park, as well as deal with any associated environmental issues. He mentioned that the two options drider consideration for the streetcar alignment in the Stampher Road area required a bridge over Tryon Creek. He said that the bridge design would protect the fish passage and not impact the work of BES in Tryon Cove at this time. COUNCIL QUESTIONS Councilor Moncrieff referenced Ms. Boom's other questions regarding access to Hwy 43 and soil contamination. Mr. Williams reiterated that if the study found that there were insurmountable issues, including Hwy 43 access, that made the project financially unfeasible, the parties could agree to terminate the agreement. He said that he did not believe that the soil contamination question was specifically called out, but an overarching essential condition for the agreement was that the entire development had to be financially feasible. Any one particular thing that was not financially feasible, even if it was not spelled out as an essential condition, could lead to the parties agreeing to terminate the agreement. Mr. Williams confirmed that the City could pull out of the contract without cause and without the agreement of the other parties, although it would lose the $130,000 reimbursement. Mr. Pow II commented that the trigger for the $130,000 payment was the adoption of the Framework Plan; it did not accrue before that. He pointed out that it was unlikely that Lake Oswego would exercise its unilateral termination opportunity after adopting the Framework Plan because the Plan set the stage for the development agreement and the post -plan amendments. Councilor Moncrieff asked why the City was not delaying this agreement until after the locally preferred alternative decision has been made. Mr. Williams explained that the primary reason was staff's expectation that this process would help inform the streetcar decision, the Draft Environmental Impact Statement (DEIS) decision, and the locally preferred alternative (LPA) decision. He observed that the Foothills effort was six months behind in providing the information that the transit project needed from the Foothills area. Mr. Williams mentioned staff's belief that development needed to fund the streetcar project. He said that he would not recommend any financing strategy for the streetcar that looked at increasing taxes to citizens. He explained that having a better understanding of the potential development opportunities through this Foothills PDA process would help inform both the staff work in identifying potential financing strategies for the streetcar and the Council decisions. Mr. Brown indicated that the two primary streetcar alignment options under consideration for Foothills presupposed a street pattern that they were not yet certain worked for the development and vice versa. He held that understanding how the streetcar would relate to and interact with a street pattern for future development was part of the consideration of the LPA. He concurred with Mr. Williams that the Foothills project was behind the streetcar project in terms of providing the information that the streetcar team was looking for. Councilor Olson asked for clarification on the statement in Section 5.2.6 (Exhibit C), which talked about an anticipated supplemental DEIS as a result of the Framework Plan. Mr. Brown explained that his thought behind including that provision was accommodating a hypothetical change to the alignment. He posed a scenario in which they decided that it ma .e more sense to shift tha streetcar alignment away from the alignment studied under the DEIS, and the FTA required a supplement DEIS to incorporate the change. He said that it was unclear right now whether they City Council Regular Meeting Minutes Page 25 of 28 June 15, 2010 would deviate that far from the current alignments to make that necessary, but he felt it was worth flagging. Councilor Olson asked how funding the streetcar with development money would work in light of the information provided to the Council that development money would not exist for the next five to ten years. Mr. Williams mentioned that they did have an existing urban renewal district that could provide tax increment funds for the project. He pointed out that they could not forecast when the Foothills development would actually occur with respect to when the streetcar project would occur. He expl-air.ed that this project would look at how those two lined up and how potential development fees and tax increment financing could be used and timed with the project itself. He commented that the ,ity could only deal with the cash flow challenges once they knew what the costs were, what the City's responsibility would be, and what options they were dealing with. Mr. Brown mentioned that the PDA included a commitment to work with the City on the creation and formation of a local improvement district (LID). He described that as another way to get the private property owners benefiting from the streetcar to help pay for the construction of the line. He indicated that all phases of the Portland Streetcar have included an LID component, which passed with overwhelming support from the owners along the LID sections. Mayor Hoffman commented that there were LIDs on the Central Eastside and under discussion in the John's Landing area. COUNCIL DISCUSSION Councilor Hennagin moved the adoption of Resolution 10-33 and Resolution 10-34, and authorizing the Mayor to sign a pre -development agreement for the Foothills area. Councilor Jordan seconded the motion. Councilor Olson stated that she would vote against the agreement, citing the objections she stated during the budget discussion with respect to the City budget and the City reserve funds. She agreed with the point raised by citizens tonight that they had no idea how much money they might need to take out of reserves for the West End building, should the refinancing of the building fail. She mentioned that the agreement directly tied the streetcar to the Foothills project. She observed that the costs to the Lake Oswego citizens and the City to fund construction of the streetcar were another unknown, as were the ongoing maintenance and operations commitments for the streetcar. She commented that they did not know who would operate the streetcar or how the City would pay for it. She noted that the Council has also not discussed whether the community wanted a second or even a third urban renewal district in town. She argued that the Council's priorities, given the current economy, did not support spending the money at this time. She commented that, while the Foothills redevelopment was probably a good thing, for her the issue was timing. She recalled the presentation by Bruce Wood who said that nothing could happen in Foothills without large public subsidies. She said that she could not commit their citizens to large public subsidies right now. She mentioned that she had concerns about the environmental issues raised tonight. Mayor Hoffman said that he would support the motion. He described this as a defining moment for this City Council, in that it was setting the future for the next 20 to 50 years in the only area that would provide a future for Lake Oswego in housing choices, supporting the downtown, and providing a stable funding mechanism for the years 2040 to 2080. He argued that they were leaving the city in better shape than they found it. He stated that he was comfortable that the City was using these funds in a transparent manner. He emphasized that the important action was the Council looking to redevelop a property that would add to the downtown and to the quality of life in Lake Oswego. He cited his earlier statement that a city could either grow or decline, and that it was better to manage growth than a City Council Regular Meeting Minutes Page 26 of 28 June 15, 2010 declining city. He cited the stories he heard from mayors this weekend who did have declining cities to manage. Councilor Hennagin said that he would vote for the motion because one of his campaign planks had been the redevelopment of the Foothills area. He held that this redevelopment was necessary to create more housing options for those who wanted to age in place as they downsized their homes. A roll call vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Moncrieff, Tierney, and Jordan voting `aye.' Councilor Olson voted `no.' [6-1] 8. FINDINGS, CONCLUSIONS, AND ORDER 8.1 Ordinance 2549, an ordinance of the City of Lake Oswego amending LOC Article 50.44 (Flood Management Area) regarding applicability, map amendments, and the flood management area for a portion of Springbrook Creek, and adopting findings LU 10-0003-1731 Mayor Hoffman mentioned the Council's previous discussion of these ordinances. He said that he did not recall anyone opposing them. Councilor Jordan moved the enactment of Ordinance 2549. Councilor Johnson seconded the motion. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] 8.2 Ordinance 2552, an ordinance of the Lake Oswego City Council amending LOC Chapter 50 (Community Development Code), Section 50.11.010 to limit the square footage of delicatessens, bakeries, and restaurants in the Campus Research and Development (CR&D) zone, and adopting findings LU 09-0034-1732 Councilor Jordan moved the enactment of Ordinance 2552. Councilor Johnson seconded the motion. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] 8.3 Ordinance 2456, an ordinance of the Lake Oswego City Council amending Chapter 50 of the Lake Oswego Community Development Code to add new Article 50.086 relating to the Glenmorrie R - 15 Overlay District and adopting findings LU 09-0043- 1733 Councilor Jordan moved the enactment of Ordinance 2456. Councilor Johnson seconded the motion. Councilor Olson commented that, while she voted against this originally, she has heard some good arguments from the neighborhood that convinced her to vote in favor of it this time. A voice vote was taken, and the motionap ssed with Mayor Hoffman, Councilors Johnson, Hennagin, Olson, Moncrieff, Tierney, and Jordan voting `aye.' [7-0] 9. INFORMATION FROM THE COUNCIL 9.1 Councilor Information 9.2 Reports of Council Committees, Organizational Committees, and Intergovernmental Committees 10. REPORTS OF OFFICERS 10.1 City Manager 10.1.1 Revi w of Council Schedule City Council Regular Meeting Minutes Page 27 of 28 June 15, 2010 10.2 City Attorney 11. ADJOURNMENT Mayor Hoffman adjourned the meeting at 11:00 p.m. Respectfully submitted, i Robyn Christie City Recorder APPROVED BY THE CITY COUNCIL: ON -October 5, 2010. Jaclyq. Hoffman, City Council Regular Meeting Minutes Page 28 of 28 June '15, 2010