Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
City Council Packet - 03/22/2011
" City of Tigard Tigard Business Meeting - Agenda TIGARD TIGARD CITY COUNCIL AND LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: March 22, 2011 - 6:30 p.m. Study Session; 7:30 p.m. Business Meeting MEETING LOCATION: City of Tigard - Town Hall - 13125 SW Hall Blvd., Tigard, OR 97223 6:30 PM • STUDY SESSION A. Update City Council on the Tree Board's Upcoming Tree Replacement Fund Recommendation B. Administrative Items • Council Calendar • 3/29/2011 - Council to Meet with Tualatin Valley fire and Rescue Board (dinner at 5:30 p.m.); meeting at 6 pm., at TVF &R new headquarters, 11945 SW 70th Avenue, Tigard, Oregon. Agenda items include: • Burnham Street Update — Public Works Director Koellermeier • Infrastructure Changes — City Manager Prosser and Public Works Director Koellermeier • Office of Consolidated Emergency Management Update — TVF &R • 4/7/2011 - Pacific Highway/Hall /Greenburg/Main Completion Celebration - Liberty Park, 3 p.m. • 4/7/2011 - Meet the City Council - Tigard Chamber of Commerce, 1234 SW Main Street, 6 -7 p.m. • 4/12/2011 - Regular Meeting: 6:30 p.m. Study Session; 7:30 p.m. Business Meeting • 4/18/2011 - Budget Committee Meeting: 6:30 p.m., Public Works Auditorium • 4/19/2011 - Workshop Meeting: 6:30 p.m. • 4/25/2011 - Budget Committee Meeting: 6:30 p.m.,Public Works Auditorium • 4/26/2011 - Regular Meeting: 6:30 p.m. Study Session; 7:30 p.m. Business Meeting • EXECUTIVE SESSION: The Tigard City Council will go into Executive Session to discuss labor negotiations and potential litigation under ORS 192.660(2) (d) and (h). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 7:30 PM 1. BUSINESS MEETING ` 3 .2 2 a p 1 A. Call to Order B. Roll Call C. Pledge of Allegiance D. Council Communications & Liaison Reports E. Call to Council and Staff for Non - Agenda Items 2. CITIZEN COMMUNICATION (Two Minutes or Less, Please) A. Follow -up to Previous Citizen Communication B. Citizen Communication — Sign Up Sheet 3. CONSENT AGENDA: (Tigard City Council and Local Contract Review Board) These items are considered routine and may be enacted in one motion without separate discussion. Anyone may request that an item be removed by motion for discussion and separate action. Motion to: (Estimated time: 7:40 p.m.) A. Approve City Council Meeting Minutes 1. February 1, 2011 2. February 15, 201 1 B. Approve Granting a Designated Bus Stop on Commercial Street for Yamhill County Transit Area - Resolution RESOLUTION NO. 11-09 -- A RESOLUTION OF THE CITY COUNCIL APPROVING AN AGREEMENT WITH YAMHILL COUNTY TRANSIT AREA TO PROVIDE A DEDICATED ON- STREET BUS STOP ON COMMERCIAL STREET IN DOWNTOWN TIGARD. C. Appoint Alternate Budget Committee Member Melody Graeber to the Budget to Replace Resigning Member Dena Struck - Resolution RESOLUTION NO. 11 -10 -- A RESOLUTION APPOINTING MELODY GRAEBER TO BECOME A VOTING MEMBER OF THE BUDGET COMMITTEE TO COMPLETE THE TERM VACATED BY DENA STRUCK D. Local Contract Review Board: 1. Renew Three -Year Environmental Systems Research Institute (ESRI) Geographic Information System (GIS) Enterprise Software License • Consent Agenda - Items Removed for Separate Discussion: Any items requested to be removed from the Consent Agenda for separate discussion will be considered immediately after the Council /City Center Development Agency has voted on those items which do not need discussion. 4. PROCLAMATIONS - MAYOR DIRKSEN (Estimated time: 7:45 p.m.) A. Proclaim April 2011 as Child Abuse Prevention Month B. Proclaim April as Arbor Month in the City of Tigard 5. CONSIDER A RESOLUTION GRANTING EXEMPTION FROM PROPERTY TAXES UNDER TIGARD MUNICIPAL CODE SECTION 3.50 FOR FOUR NON - PROFIT, LOW - INCOME HOUSING PROJECTS (Estimated time: 7:50 p.m.) RESOLUTION NO. 11 -11 -- A RESOLUTION GRANTING AN EXEMPTION FROM PROPERTY TAXES UNDER TIGARD MUNICIPAL CODE SECTION 3.50 FOR FOUR NON - PROFIT LOW - INCOME HOUSING PROJECTS OWNED AND OPERATED BY COMMUNITY PARTNERS FOR AFFORDABLE HOUSING (CPAH) 6. BRIEFING ON THE ECONOMIC OPPORTUNITIES ANALYSIS (Estimated time: 8:05 p.m.) 7. BRIEFING ON TWO CAPITAL IMPROVEMENT PLAN PROJECTS: (Estimated time: 8:35 p.m.) • PACIFIC HIGHWAY INTERSECTION IMPROVEMENTS • 550 -FOOT ZONE IMPROVEMENTS -- TEN - MILLION- GALLON RESERVOIR IMPROVEMENTS AND TRANSFER PUMP STATION 8. COUNCIL LIAISON REPORTS (Estimated time: 8:50 p.m.) 9. NON AGENDA ITEMS • Earthquake Preparedness Presentation and Proclamation 10. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session to discuss potential litigation under ORS 192.660 (2) (h). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 11. ADJOURNMENT (Estimated time: 9:15 p.m.) • d 57.e 5St-Dk .2. AIS -336 Item #: 0. Business Meeting Date: 03/22/2011 Length (in minutes): 10 Minutes Agenda Title: Update City Council on the Tree Board's Upcoming Tree Replacement Fund Recommendation Submitted By: Cheryl Caines Community Development Item Type: Update, Discussion, Direct Staff Meeting Type: Council Business Mtg - Study Sess. ISSUE Staff wishes to give Council a preview of a pending recommendation by the Tree Board regarding use of the City's Tree Replacement Fund. The Tree Board will formally present its recommendation at Council's April 12, 2011 meeting. A resolution will accompany the Board's proposal (Attachment 1). STAFF RECOMMENDATION / ACTION REQUEST Council is requested to: 1) Receive information and discuss the Tree Board's upcoming recommendation regarding use of the Tree Replacement Fund; and 2) Inform the staff liaison of any suggestions regarding the Board's proposal as presented in the appended resolution(Attachment 1). KEY FACTS AND INFORMATION SUMMARY The Tree Board provides oversight of the implementation of the Urban Forestry Master Plan. One of the Board's current goals is to investigate possible funding mechanisms to help support an ongoing urban forest enhancement program. The Tree Replacement Fund is important to acheiving this goal. The Board proposes to address future use of the Fund in two phases. Phase 1 will focus on renaming the existing fund (Urban Forestry Fund) and identifying allowed expenditures. Phase 2 will identify how the fund will be used to achieve other goals and objectives of the Urban Forestry Master Plan. Phase 2 will also address use of fees collected in the future and identify other funding sources. The attached draft resolution proposes how the funds are to be spent. Section 2 states that the funds are limited to only those tree planting and three years of early establishment activities. Exhibit A describes these activities in more detail such as planning, site preparation, planting, irrigation, pruning, and pest /disease control. Exhibit A also clarifies that funds can be used to plant trees on private property. These uses reflect a consensus review of members of both the Tree Board and the Urban Forestry Code Revision Citizen Advisory Committee. The Tree Board is meeting on March 23 and will have a final discussion about the proposed resolution. This will allow any recommendations made by Council at its March 22 study session to be addressed prior to Council's formal consideration of the resolution OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Funding for an ongoing tree and urban forest program is a component of the Revise Tree Code goal, which is a 2011 Council Goal and a goal of the Urban Forestry Master Plan. DATES OF PREVIOUS COUNCIL CONSIDERATION This resolution has not been presented to City Council before, however funding was briefly discussed at the joint Tree Board /City Council meeting on December 21, 2010. Fiscal Impact Fiscal Information: The resolution will change the name of the Tree Replacement Fund and outline the allowed uses of the fund. Attachments Attachment 1: Draft Tree Fund Resolution Attachment 2: Exhibit A CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 11- A RESOLUTION RENAMING THE TREE REPLACEMENT FUND TO BE THE URBAN FORESTY FUND AND OUTLINING THE ALLOWED USES OF THIS FUND:, WHEREAS, Ordinance 98 -19 established Chapter 18.790, and .= thcTree Removal standards in the Tigard Development Code; and WHEREAS, the Tree Removal standards include .a :formula for tree replacement proportional to the percentage and size of trees removed during development; and WHEREAS, the Tree Removal standards allow for an "in -lieu of" tree :replacement payment by developers that do not perform tree replacement themselves to cover the City's cost of tree replacement; and WHEREAS, the City established Tree Replacement: Fund to accept "in-lieu of" tree replacement payments; and WHEREAS, the Tree Removal standards and the Tree Replacement Fund are not specific on the allowed uses of funds collected as "in-lieu of'tree'replacement payments; and WHEREAS, on February 16 '2010 City Council directed City staff to clarify the allowed uses of the Tree Replacement Fund as part of the Urban .Forestry Code Revisions project; and WHEREAS, Gi'ty `staff has worked With community volunteers including the Urban Forestry Code Revisions Citizen Advisory Committee andlTigard'Tree Board to identify appropriate uses of the Tree Replacement Fund that will support;the City's broader urban forestry goals; and WHEREAS, the conse nsus view expressed by the community volunteers to City staff was to use the Tree Replacement Fund for activities necessary for the planting of trees and three (3) years of early establishment of such trees to support the'City's broaderurban forestry goals; NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: SECTION 1: The Tree Replacement Fund shall be renamed the Urban Forestry Fund to reflect its broader purposes. SECTION 2: The allowed uses of funds that have been or will be collected under the auspices of Ordinance 98 -19 and Chapter 18.790 of the Tigard Development Code, deposited into the Tree Replacement Fund (now known as the Urban Forestry Fund), and available for City use shall be limited to only those tree planting and three (3) years of early establishment activities more fully described in Exhibit A. RESOLUTION NO. 11 - Page 1 SECTION 3: The allowed uses of this fund will be reviewed as part of the Urban Forestry Code Revisions. SECTION 4: This resolution shall be effective beginning Fiscal Year 2012 on July 1, 2011. PASSED: This day of , 2011. Craig Dirksen, Mayor ATTEST: Catherine Wheatley, City Recorder RESOLUTION NO. 11 - Page 2 Exhibit A Introduction The Urban Forestry Fund (formerly the Tree Replacement Fund) shall be available for City use to pay for the labor and materials necessary to complete only those activities listed below for tree planting site planning, tree planting site preparation, tree planting, and three (3) years of early tree establishment after planting whether on public or private property within the city limits of Tigard. The activities listed below are intended only for trees that have been or will be planted using Urban Forestry Fund. The activities listed below will only be implemented when determined necessary by the City for a particular tree planting project. When considering where to implement particular tree planting projects, the City shall consider both short and long term costs and benefits, as well as how the projects will further the City's urban forestry goals. The City shall strive to identify partnerships for planting and three (3) years of early tree establishment after planting whenever possible, and record the stipulations of partnerships in writing. The City shall record and track information about each tree planting project in a publicly accessible inventory of trees and forests. The average cost to a plant and provide three (3) years of early establishment for each tree planted in a particular year shall be no more than 10% greater than the Tree Replacement Fee in the City of Tigard's Master Fees and Charges Schedule for that particular year unless otherwise approved by Tigard City Council. Approved Tree Planting and Three (3) Years of Early Establishment Activities Tree Planting Site Planning • Site Survey — Including by not limited to a survey of soil conditions, topography, drainage, water sources, water pressure, water availability, above and below ground utilities, buildings, infrastructure, street lights, intersections, street signs, driveways, fire hydrants, existing trees, existing landscaping, existing pests and diseases, existing drainage, and any other existing site conditions that may be relevant to a particular tree planting project. • Lab Tests — Including but not limited to the collection and preparation of soil and /or plant samples for analysis by a qualified testing laboratory in preparation for a tree planting project. The purpose of the tests may include but not be limited to determining soil texture, soil fertility, and existing pests and diseases. • Site Plan Preparation — Preparation of accurately scaled landscape drawings that reflect both existing site conditions and future tree planting plans. Information displayed on the plans may include but not be limited to the site survey information listed above, as well as proposed tree planting locations, proposed irrigation installations, proposed soil amendments, proposed tree protection and erosion control materials and methods, proposed planting details /specifications, proposed irrigation details /specifications and other information relevant to a particular project. • Permit Acquisition — Securing of federal, state, regional, local and any other permits required for the execution and /or completion of a particular tree planting project. Tree Planting Site Preparation • Tree Protection — Including but not limited to the planning, installation, monitoring, and removal of tree protection methods and devices for existing site trees with the potential to be directly impacted by a particular tree planting project. Tree protection shall be in a manner consistent with generally accepted industry standards for tree care practices detailed in the most current version of the American National Standards Institute (ANSI) A300 Standards for Tree Care Operations. In addition, the tree protection shall be in accordance with all federal, state, regional, and local rules and regulations. • Unwanted Plant Removal — Including but not limited to the removal of unwanted plants by physical, mechanical, biological and /or chemical means in order to prepare a particular site for tree planting in accordance with all federal, Page 1 of 3 Exhibit A state, regional, and local rules and regulations. Unwanted plant removal shall be the minimum necessary to prepare a particular site for tree planting, and shall not be for the purpose of large scale unwanted plant removal unrelated or indirectly related to tree planting. • Drainage Installation — Including but not limited to the installation of drainage systems such as French drains, boring through hardpan soil layers, and otherwise amending /altering existing soil conditions to facilitate drainage in accordance with all federal, state, regional, and local rules and regulations if required for a particular tree planting project. • Irrigation Installation — Including but not limited to the installation of irrigation systems such as above or below ground sprinkler systems, as well as drip irrigation for the purpose of delivering water to trees if required for a particular tree planting project. Irrigation installation may include but not be limited to the additional requirements such as installation of water meters, backflow preventers, valves, pumps, sprinkler heads, laterals, automatic timers, and other equipment depending on the scope, requirements, and objectives for the particular tree planting project. Irrigation installation shall be in accordance with all federal, state, regional, and local rules and regulations, and the most current revision of the Irrigation Association's, Turf and Landscape Irrigation Best Management Practices. • Soil Preparation — Including but not limited to the loosening, tilling, import, removal, and /or finish grading of soil in order to prepare compacted soil areas for tree planting in accordance with all federal, state, regional, and local rules and regulations if required for a particular tree planting project. Grading and filling shall be the minimum necessary to prepare a particular site for tree planting, and shall not be for the purpose of mass grading or filling unrelated or indirectly related to tree planting. • Soil Amendment — Including but not limited to the amendment of soils with inadequate or low fertility with organic materials, fertilizers, or other soil amendments at the required depth and ratio necessary to support tree growth if required for a particular tree planting project. Soil amendment also includes necessary loosening, tilling, import, removal, and /or finish grading as described in the Soil Preparation item above in order to properly amend soil for tree planting. Grading and filling shall be the minimum necessary to prepare a particular site for tree planting, and shall not be for the purpose of mass grading or filling unrelated or indirectly related to tree planting. • Erosion Control — Including the planning, installation, monitoring, and removal of erosion control devices in accordance with all federal, state, regional, and local rules and regulations prior to tree planting site activities when required by a particular permit or project. Tree Planting • Tree Selection and Purchase — Including the selection and purchase of the species, size, and number of trees identified for a particular tree planting project. Trees shall meet the standards detailed in the most recent edition of the American Standard for Nursery Stock (ANSI Z- 60.1). Trees identified by the City of Tigard as "Nuisance Trees" shall not be selected, purchased, or planted. • Tree Delivery and Storage — Including but not limited to the delivery and storage of trees and associated materials in a manner that protects the trees and associated materials from damage. • Tree Planting — Including but not limited to the planting of trees in a manner consistent with generally accepted industry standards for tree care practices detailed in the most current version of the American National Standards Institute (ANSI) A300 Standards for Tree Care Operations. In addition, the tree planting shall be in accordance with all federal, state, regional, and local rules and regulations. • Root Barrier Installation — Including but not limited to the installation of root barriers per the manufacturers' specifications for the purpose of protecting hardscape, infrastructure, utilities, and other features when required by a particular permit or project. Page 2 of 3 Exhibit A • Tree Staking and Guying — Including but not limited to the staking and guying of any new planted tree identified as requiring supplemental support in order to remain upright. Staking and guying shall be in a manner consistent with generally accepted industry standards for tree care practices detailed in the most current version of the American National Standards Institute (ANSI) A300 Standards for Tree Care Operations. Stakes and guys shall be monitored to ensure they are not causing tree damage, and shall be removed as soon as a tree is able to stand upright without supplemental support. • Tree Protection from Wildlife — Including but not limited to the installation, monitoring, and removal of plant tubing or wire caging for the purpose of protecting newly planted trees from damage or death from wildlife if required for a particular tree planting project. • Mulch Installation — Including but not limited to the installation of mulch in the form of wood chips, shavings, or other acceptable material around the bases of newly planted trees in a manner consistent with generally accepted industry standards for tree care practices. Three (3) Years of Early Tree Establishment • Truck or Hand Watering of Trees — Including but not limited to the delivery and application of specified quantities and frequencies of water during specified time periods using a tanker truck, hoses, and /or other equipment when required for the survival of trees. • Irrigation System Maintenance — Including but not limited to programming, monitoring, and maintenance of irrigation systems necessary for the application of specified quantities and frequencies of water during specified time periods required for the survival of the trees. Irrigation programming, monitoring, and maintenance shall be in accordance with the most current revision of the Irrigation Association's, Turf and Landscape Irrigation Best Management Practices if required for a particular tree planting project. • Tree Pruning — Including but not limited to pruning of trees in a manner consistent with generally accepted industry standards for tree care practices detailed in the most current version of the American National Standards Institute (ANSI) A300 Standards for Tree Care Operations. Pruning objectives shall include the removal of dead, dying, and diseased tree parts, establishment of strong tree structure, development of a desirable form, abatement of tree hazards, and compliance with branch clearance requirements and other federal, state, regional, and local rules and regulations. • Unwanted Plant Removal — Including but not limited to the removal of unwanted plants by physical, mechanical, biological and /or chemical means in accordance with all federal, state, regional, and local rules and regulations in order to limit competition and allow trees to survive and thrive if required for a particular tree planting project. Unwanted plant removal shall be the minimum necessary to allow trees to survive and thrive, and shall not be for the purpose of large scale unwanted plant removal unrelated or indirectly related to three (3) years of early tree • establishment. • Pest and Disease Control — Including but not limited to the control of tree pests and diseases using physical, mechanical, biological and /or chemical means in accordance with all federal, state, regional, and local rules and regulations in order to allow trees to survive and thrive if required for a particular tree planting project. • Tree Inventory — Including but not limited the use of global positioning system (GPS) and geographic information system (GIS) technology to identify the location, species, planting date, three (3) years of early tree establishment activities, fund expenditures and other pertinent information for a publicly accessible tree and urban forest inventory. • Tree Debris Disposal — Including but not limited to the collection and disposal of all debris generated from tree planting site preparation, tree planting, and three (3) years of early tree establishment in accordance with all federal, state, regional, and local rules and regulations. Page 3 of 3 AGENDA ITEM NO. 2 - CITIZEN COMMUNICATION DATE: March 22, 2011 (Limited to 2 minutes or less, please) The Council wishes to hear from you on other issues not on the agenda, but asks that you first try to resolve your concerns through staff. This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony becomes part of the public record. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. NAME, ADDRESS & PHONE TOPIC STAFF Please Print CONTACTED , �� Name: P A VE L CV 6E R 414-M �.�9 -t a L k t Cc, f �. %W;t Also, please spell your name as it sounds, if it will O cU t ' Q „ help the presiding officer pronounce: 01°-€'K" Address o' 119-'A 16 6 4 CityA State 0 Zip 9 7075- Phone No. S-0 - 6 3 ~8 3 Y b' Name: 5 r- CAMS 1-1 E.R 2) LE- �ETT ER. Also, please spell your name as it sounds, if it will CHA HA ,� v &E_ help the presiding officer pronounce: `' , FID'POSAC C t' 1,I Address 13 tOXro sw MP}PLE II 4' Zv F Co )M L . City 1 l &/ TZP LiV' ' 51 ?ye A-I State �- !Zip // q 7 22� °STATIONS COI �,EK Phone No. C 5) (� (9 S / p I TJ 52$ M . vv • Name: Also, please spell your name as it sounds, if it will help the presiding officer pronounce: Address City State Zip Phone No. SUPPLENTNTAL PACKET FOR 3 ra lc O )1 (DATE OF MEETING) CITIZEN COMMUNICATION Mayor Dirksen and Pavel Goberman - Candidate (R) for US Repr. 1st Cong. Distr. in 2012 City Councilors Campaign: "I Promise To Create Millions Jobs And Balance Budget ". Tigard, OR 97223 P.O. Box 1664 Beaverton, OR 97075 (503) 643 -8348 www.getenergized.com and on left click on: Vote allbefit(a aol.com getfit(a�getenergized.com REQUEST TO SUSPEND BUSINESS LICENSE FROM THE OSBAR: 03/22/11 Mayor Dirksen and City Councilors, on 10/26/10 and 12/01/10 I spoke before you with my complaint against the Oregon State Bar (OSBar), 16037 SW Upper Boones F.R.but no any action, nothing changed and the OSBar continue cover up crimes of judges and attorneys. I owe this country and We the People for giving me political refuge in 1980, and during naturalization in 1986 I gave an Oath to obey laws and to defend this nation from foreign and domestic enemies, and it I'm just doing for many years. I obey all constitutional laws and I'm a Voice and Defender of the Constitution of the USA. The law schools and institutions with permit of the US Department of Educations gave graduated students diplomas to practice business. Same do other institutions and gave diplomas to other professions as engineers, teachers and etc. But the OSBar, an unconstitutionally legalize organization, an organize mafia of lawyers, robs lawyers: extorts, demands money from lawyers for membership for purpose of to give them an opportunity, to give them licenses to practice law in Oregon. And as paid members of this union, protects them, cover up lawyers who ignores, violates our laws and do crimes. One wise man wrote an article about me naming me his favorite politician and unique political phenomenon because I see what others do not see. And about 185,000 voters trusted and voted for me in General 2008 Election. I can't lie and say only the truth, and in my many Complaints with the OSBar against judges and lawyers I gave the evidence, statements, facts and acts about violation of my civil and human rights for my illegal arrest, fingerprint and put in jail and violation of our laws and state and US Constitutions by officials. But the an idiots from the OSBar named my statements as my imagination, speculation, and theory having objective reality. What a dirty lie and have no any responsibility and no accountability. The courts in Oregon set up: if some person represent him /herself (ProSe) in the court, it is for sure: he or she will lose. And any complaints will be useless. The OSBar is a scam business, which for own monetary benefits hijacked the judicial system in Oregon, rubs the public, and is a public enemy, destroys our democracy. I'm again asking the Tigard City Council to protect, support and defend the Constitution of the USA: suspend Business License from the OSBar for violation state and federal laws. Highly hope all of you will not resign now and will qualify to run for office in next elections. Pavel Goberman p,,L P.S. Copies in the File, OSBar and to the media. P.G. SUPPLEMENTAL PACKET FO(DR s3d& , aOi i AT OF MEETING) AIS -457 Item #: 3. A. Business Meeting Date: 03/22/2011 Length (in minutes): Consent Item Agenda Title: Approve City Council Meeting Minutes Submitted By: Cathy Wheatley Administrative Services Item Type: Motion Requested Meeting Type: Consent Agenda - Approve Minutes ISSUE Consider approval of minutes of previous Council meetings. STAFF RECOMMENDATION / ACTION REQUEST Approve minutes as proposed. KEY FACTS AND INFORMATION SUMMARY Minutes will be attached to this Agenda Item Summary statement when final drafts are ready to submit to the City Council. OTHER ALTERNATIVES Amend draft minutes. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A AIS -148 Item #: 3. B. Business Meeting Date: 03/22/2011 Length (in minutes): Consent Item Agenda Title: Approve Granting a Designated Bus Stop on Commercial Street for Yamhill County Transit Area - Resolution Submitted By: Judith Gray Community Development Item Type: Resolution Meeting Type: Consent Agenda ISSUE Yamhill County Transit Area has requested a designated bus stop on Commercial Street adjacent to the Downtown Tigard Transit Center to allow passengers the opportunity to connect with the TriMet transit system. STAFF RECOMMENDATION / ACTION REQUEST It is recommended that Council approve a resolution authorizing the City Manager to sign an intergovernmental agreement with Yamhill County Transit Area allowing use of a designated bus stop on Commercial Street. KEY FACTS AND INFORMATION SUMMARY The following are facts relevant to this issue: • Yamhill County Transit Area provides weekday and Saturday bus service between McMinnville and Tigard, with stops in Lafayette, Dayton, Dundee, Newberg, and Sherwood; • Ridership to the Tigard Transit Center (Route 44) increased more than 40% from 2009 to 2010, with more than 60,000 passenger trips in the 12 -month period ending February 2011; • The Yamhill County bus currently stops in Downtown Tigard on Commercial Street next to the Tigard Transit Center; • Yamhill County Transit Area has requested a designated curb area and bus stop signage; • The City of Tigard traffic Engineer and Downtown Redevelopment Manager were consulted and have no concerns about the Yamhill County Transit Area request. OTHER ALTERNATIVES Council could refuse the Yamhill County Transit Area request COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Implement the Comprehensive Plan: Goal 12.3. Provide an accessible, multi -modal transportation system that meets the mobility needs of the community. Policy 1. The City shall continue to support the existing commuter rail and bus service in Tigard and will seek opportunities for increased service frequency and passenger convenience. Goal 12.4. Maintain and improve transportation system safety. Policy 2. The City shall coordinate with appropriate agencies to provide safe, secure, connected, and desirable pedestrian, bicycle, and public transit facilities. Council Long Term Goals Continue pursuing opportunities to reduce traffic congestion DATES OF PREVIOUS COUNCIL CONSIDERATION None. , Fiscal Impact Fiscal Information: The IGA does not obligate the City to any financial commitments. The City will install the bus stop signage, however this will be conducted as part of regular work acitivities by Public Works and does not require additional budget. , Attachments Draft Resolution Exhibit A - Intergovernmental Agreement AIS -444 Item #: 4. A. Business Meeting Date: 03/22/2011 Length (in minutes): 5 Minutes Agenda Title: Proclaim April 2011 as Child Abuse Prevention Month Prepared For: Joanne Bengtson Submitted By: Joanne Bengtson City Management Item Type: Public Hearing - Informational Meeting Type: Proclamation ISSUE Shall Mayor Dirksen proclaim the month of April as Child Abuse Prevention Month in Tigard? STAFF RECOMMENDATION / ACTION REQUEST n/a KEY FACTS AND INFORMATION SUMMARY The Department of Human Services -Child Welfare and Washington County Child Abuse Prevention Action Group is organizing an event for April to commemorate Child Abuse Prevention Month. They are asking all the cities in Washington County to fly or display a 3x5' flag (provided by them) depicting paper - doll -like figures of children holding hands. In the center, the white chalk outline of a missing child symbolizes the children lost to violence. Their goal is to bring awareness to the community about child abuse and what each person can do to be a part of prevention. OTHER ALTERNATIVES n/a COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS n/a DATES OF PREVIOUS COUNCIL CONSIDERATION n/a Attachments Child Abuse Prevention Month .4 / ',/ y c / / � / (4% . / / / . / 7 ;. / I 4 City of 7]gard A" x CHILD ABUSE PREVENTION MONTH r . April 2011 Tigard's children are our most valuable resource, and they need our support to thrive and grow into healthy, productive adults. Y WHEREAS, Every child deserves a nurturing family and a safe environment, free from t` fear, abuse, and neglect; and WHEREAS, Child abuse affects every community and it will take a collaborative and community effort to prevent it; and ✓ WHEREAS, During National Child Abuse Prevention Month, we state our unwavering V. commitment to protecting children and promoting healthy families; and WHEREAS, By bringing awareness to the Tigard community about child abuse and what each person can do to prevent it, we build a brighter future for all; and ` . x'44' 'Y w WHEREAS, 1 encourage all Tigard residents to visit: ww.ChildWelfare.00v /Preventing 'y,. to learn what they can do to stop child abuse. - ,■• NOW THEREFORE BE IT RESOLVED THAT I, Mayor Craig Dirksen of the City of ? ' *-` Tigard, Oregon, do hereby proclaim the month of April 2011 as `< 1 CHILD ABUSE PREVENTION MONTH in Tigard, Oregon and urge residents to observe this month by supporting programs and activities that help prevent child abuse and provide for children's physical, emotional, and ''�. developmental needs. - X Dated this day of , 2011. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Tigard to be affixed. r 1 Craig E. Dirksen, Mayor City of Tigard Attest: City Recorder S 1 t i a A 1 A a 0, 1 R i x AIS -445 Item #: 4. B. Business Meeting Date: 03/22/2011 Length (in minutes): 5 Minutes Agenda Title: Proclaim April as Arbor Month in the City of Tigard Prepared For: Joanne Bengtson Submitted By: Joanne Bengtson City Management Item Type: Public Hearing - Informational Meeting Type: Proclamation ISSUE Shall Mayor Dirksen proclaim April as Arbor Month in Tigard? STAFF RECOMMENDATION / ACTION REQUEST n/a KEY FACTS AND INFORMATION SUMMARY ARBOR DAY 2011 CELEBRATE OUR TREES Arbor Day is America's day for honoring trees. Arbor Day is observed nationwide on the Last Friday of April. In Oregon the first week in April is Oregon Arbor Week, dedicated to planting, protecting, and appreciating our trees. Tigard usually dedicates the entire month of April to be Arbor Month here in the City of Tigard. The Mayor will celebrate by planting trees with the students of Metzger Elementary on April 22. OTHER ALTERNATIVES n/a COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS n/a DATES OF PREVIOUS COUNCIL CONSIDERATION n/a Attachments Arbor Month Proclamation 1 s 3 m 4 . I ' t • .. .,r r e i l l : rIli( ((1`! (;` (S , __:, City o � , ice ,,,, >` Arbor Month _ -; ' WHEREAS, In 1872, Arbor Day, a special day set aside for the planting of trees, was first ,. celebrated in Nebraska; and • WHEREAS, Tigard's urban forest of public and private parks and greenways is part of a larger ecology that spans from mountains to ocean and is integral to our region's water 'V quality; and l'• ' ` WHEREAS, our urban forest includes a diversity of trees that grace our city streets, parks "' .. and greenways, provide habitat for wildlife, soften hardscapes, clean the air, protect water • j j resources, and ensure that everyone can experience natural beauty where we live, work, 1 A<y. and recreate; and 1 ,,4.,{ WHEREAS, the City of Tigard recognizes that our urban forest is a necessity and is an .;`' integral part of the city's infrastructure and ecosystems; and F,: ',,,� WHEREAS, we are committed to provide resources to maintain and enhance the urban , forest; and :`:;, ;.4,. 3 WHEREAS, people of all ages and backgrounds, including citizens, civic organizations, ,..,.'' businesses, and city agencies, have formed partnerships to participate actively in the "'?4, stewardship and caretaking of Tigard's urban forest; and ;' • NOW THEREFORE BE IT RESOLVED THAT I, Craig E. Dirksen, Mayor of the City of Tigard, "» Oregon, do hereby proclaim the month of April 2011 as ARBOR MONTH,' , f in Tigard, Oregon and encourage people throughout the city to become involved with the „ < planting and stewardship of the urban forest throughout the year of 2011. a , '`LAN 1 r F Dated this day of , 2011. ,,, i, IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the . / City of Tigard to be affixed. ,., k .,..4 Craig E. Dirksen, Mayor `` City of Tigard ) Attest: r . t ,... City Recorder 0- " i ce t i / f,. . I 1 " . I " - / '+ / i 0 It ia� + . I t . . # .); ` t ' ; .. � s • ` , F�! � '4 t . may, 1 ' 4 /vn, 9.e CICL AIS -467 Item #: 9. Business Meeting Date: 03/22/2011 Length (in minutes): 15 Minutes Agenda Title: Tigard's Earthquake Preparedness Posture Prepared For: Mike Lueck, Public Works Submitted By: Cathy Wheatley Administrative Services Item Type: Update, Discussion, Direct Staff Meeting Type: Council Business Meeting - Main ISSUE SUPPLE MENTAL P AC NON AGENDA ITEMS FOR -aa KET • Earthquake Preparedness Proclamation and PowerPoint presentation. (DAT QF MEETING) STAFF RECOMMENDATION / ACTION REQUEST Presentation A(./14 1 KEY FACTS AND INFORMATION SUMMARY _y Presentation OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Proclamation PowerPoint f , ` ' i .e _:•. ,! fr -A A ill �► a / /�'% City of Tigard i EARTHQUAKE AND TSUNAMI AWARENESS MONTH , WHEREAS, Scientific evidence indicates that the State of Oregon is at risk for a large F damaging earthquake and tsunami, and • WHEREAS, The City of Tigard and its residents are vulnerable to the impacts of �` i , . earthquakes, and ! .. 1, WHEREAS, Being prepared for earthquakes and other disasters must be undertaken at 1'- 9P p q • ^ the individual, family and business level, and :W �` *,, ' WHEREAS, The State of Oregon has designated April as Earthquake and Tsunami 1 Awareness Month, and i r WHEREAS, Earthquake and Tsunami Awareness Month is designed to remind --14v...---- 'if' Oregonians of the earthquake and tsunami threat and the need to take steps to prepare, and . �.rr W4 .Ia WHEREAS, The city offers earthquake and general disaster preparedness information r, ' and opportunities throughout the year to encourage residents to be prepared alert and it . aware of threats to our community's safety and security, and ``' WHEREAS, Being prepared for earthquakes will prepare you for all potential natural .;.J"i . disasters, and 'iii' • ,wi Y i r WHEREAS, The citizens of Tigard will take steps to prepare for an earthquake or other ' , Y_ emergency and assist others in the event of such a disaster. r 7k; . NOW, THEREFORE, 1, Craig E Dirksen. Mayor of the City of Tigard. do hereby proclaim '' • • rb- April 2011, as • EARTHQUAKE AND TSUNAMI AWARENESS MONTH 1 ' ' > s And encourage all Tigard residents to seriously contemplate the state of their personal preparedness, strive to meet the challenge of increasing their self - reliance and ti recognize the need to provide provisions in case emergency strikes c Dated this day of 2011 7 . '. _ ..�, IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City .�i(= , . of Tigard to be affixed ' ` 1. ►`' Craig E Dirksen Mayor r Y City of Tigard , , :I Attest: t; i 4 City Recorder , i • . J f 0 N N N M ''r. 'C. VI a - . v — l . = 3':f N — c o = = ' - ^ _ _ _ _ M ` O F . 2 b• _ ' C.� CL L_ N v - 0. - u e „- -0 ^ = ,- _ _ o O O .T. v 4 b v n p a ', O •' a . _ O4 M L' CT n o A o °0 L C c < � O w; . V Z . i .. . . . I. 5 e n ... . . _ 1 c Y 7 es o z N .b s a ° co d /. r n 2 TS CD y R 0:3 C13 GA Cr Q h 0 LID ,. H 4+ C R O r n a a w, ecc e e v W 2 . •o •a . °v w C. V a ,- VI 3/22/2011 for i Local and County Plan Citizen Preparedness Drop, Cover, Hold Get a Kit (3 -7 Days) Evacuate • home Account for Staff, Equipment, Facilities and • 'Vehicle Infrastructure Make a Plan Conduct Windshield Survey's of City Impacts • Communicate it Communicate Damages as soon as possible • Practice it Develop Strategies and Prioritize Tactics Be Informed Respond to Priorities 1 - 3 Stay Engaged Escs Resources QUESTIONS http://www.usgs.gov/hazards/earthquakes DOCAMI http : /lwww.oregongeologv.com /sub /earthquakes/EQs.htm Please contact Mike Lueck, City FE MA Emergency Services Coordinator: http://www.ready.gmlamericatindex.html OCEM http: / /www.ocem.org/ ttl ( tigard or.;,,�ov Tigard Emergency Management 503 ext. 2593 hitp: // a uu.tiga rd- or.L'm 1 1, ati EM Quick Link on the left 2 AIS -438 Item #: 5. Business Meeting Date: 03/22/2011 Length (in minutes): 15 Minutes Agenda Title: Consider a Resolution Granting Exemption from Property Taxes Under Tigard Municipal Code Section 3.50 for Four Non - Profit Low - Income Housing Projects Prepared For: Liz Lutz Submitted By: Liz Lutz Financial and Information Services Item Type: Resolution Meeting Type: Council Business Meeting - Main ISSUE Shall four low- income housing projects owned and operated by Community Partners for Affordable Housing (CPAH) be exempted from City of Tigard property taxation for 2011? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of this resolution. KEY FACTS AND INFORMATION SUMMARY Tigard Municipal Code 3.50 allows certain organizations providing low - income housing to be exempted from Tigard property taxation upon application by March 1 of each year and a demonstration of compliance with certain criteria listed in the Code. Community Partners for Affordable Housing owns and operates Greenburg Oaks, located at 11875 SW 91st Avenue in Tigard. They also own Village at Washington Square at 1 1 1 57 -1 1 1 63 SW Hall Blvd in Tigard, the Knoll at Tigard, 12291 SW Knoll Drive, and a single family house located at 9330 SW Tangela Court in Tigard. These projects are operated as low- income housing and meet all criteria listed in the Tigard Municipal Code. Community Partners for Affordable Housing submitted four applications for exemption from 2011 property taxes on February 20, 2011, which is within the March 1 deadline. All of the properties were exempted from property taxation in 2010. These application were reviewed by staff in the City's Community Development Department and staff determined that the requested tax exemptions are consistent with the applicable Tigard Municipal Code and also the adopted City Housing Policy. The attached resolution gives consent from the City of Tigard for this tax abatement. Under State law, Community Partners for Affordable Housing must receive similar approval from jurisdictions accounting for 51% (or more) of the total property taxes to be levied on these properties. This organization will also make application to the other taxing units. OTHER ALTERNATIVES Do not approve this tax exemption. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS NA DATES OF PREVIOUS COUNCIL CONSIDERATION NA Fiscal Impact Cost: $20,986 Budgeted (yes or no): Yes Where Budgeted (department /program): General Fund Additional Fiscal Notes: The cost of $20,986 is the amount of Property Tax that Tigard will not collect next year by granting the exemption. Attached to this AIS is a table showing the properties and their estimated values and the impact to Tigard. Attachments Proposed Resolution Application - Greenburg Oaks Application - Tangela Home Application -Knoll @ Tigard Application - Village at Washington Square Memo from CD (Duane Roberts) Table- Fiscal Impact COMMUNITY PARTNERS F Alt ai laW11. OR AFFORDABLE HOUSING, INC. PO Box 23206 • Tigard OR 97281 -3206 • TeI:503- 293 -4038 • Fax:503- 293 -4039 • www.cpahinc.org • info @cpahinc.org cTityOf Tigard ApplIcation for Tax Abatement Febnualy2Q, 2011 Greenburg Oaks (formerly Villa La Paz) Apartments 11875 . SW 91 stAvenue, Tigard A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. IRS Letter A. Property Description Greenburg Oaks Apartments (Tax account # R 11895 SW 91 Avenue, is just off Greenburg Road and Pacific Highway. The site sits on 3.01 acres and consists of 84 units in four buildings: 12 one - bedroom/one -bath 564 square foot units, 60 two - bedroom/one -bath 839 square foot units, and 12 three - bedroom/one -bath 1,007 square foot units. In 1998, CPAH added a Community Center to the complex. The Community Center houses a computer center, library, multipurpose room and property management office. In 2005 /2006, CPAH completed a $3.5 million dollar rehabilitation of the apartment interiors, building exteriors and project site. Highlights of the rehab include: replacing all building siding and windows, reconfigure and repave the parking lot, replace all property landscaping, upgrade ,the recreation facilities.; renovate and upgrade project site lighting and signage. Interior work included replacing all waterlines and drains, replacing all cabinets, countertops, light fixtures and most appliances (refrigerators, 'dishwashers, hot water ;heaters) with Energy rated devices replacing all- ■indow coverings, and many carpets, re- texture and repaint all apartments. The project featured energy saving appliances compact fluorescent light fixtures, better insulation, and low volume plumbing fixtures, all of which have reduced tenant energy costs. The rehab work was done without displacing any tenants and with very minimal rent increases. As a,testament to the quality of the rehab work, vacancies generally average under 5 %, accounts . payable are current and cash flow is positive most months. Financing for the project came from a number of public and private grants and low income housing tax credit investments. No new debt was taken on. Approximately $10,000 of the funding was provided by the City of Tigard Affordable Housing Fee Assistance program_ Other funding came from the Meyer Memorial Trust, the Paul Allen Foundation, the Oregon . Community Foundation,. Washington County Office Communit' Development through the CDBG and HOME investment programs, and the State of Oregon. Key Bank increased its • investment by over $2 million dollars. .Legal Description: The site is located in the southeast % of Section 35, Township 1 South, Range 1 West (Willamette. Meridian): Tax Lot: The Washington County Map shows the site as tax lot 23 -74 -2000, Parcels I, Il, and III. • B. Project's Charitable Purpose The mission of Community Partners for Affordable Housing, Inc: (CPAH) is to:promote a healthy community through the development of: permanent affordable housing; sustainable economic growth, and community -based partnerships. • CPAH' acquisition and renovation of the complex has ensured that the previously neglected property is professionally managed as safe, decent, and affordable housing for families with a shrinking number of housing options. Our property has significantly reduced the housing burdens of our families. The efficient delivery of our services has improved the health and prospects of all household members, and served to break the multi - generational cycles of poverty. CPAH's APPLICATION FOR TAX ABATEMENT PAGE 2 OF 4 • commitment to 40 years of affordability for those at 50 and 60% of median income guarantees that these apartf Tents will be affordable' effectively for the life of the buildings. • CPAH maintains active partnerships with the Tigard Police Department, Tualatin Valley Fire & Rescue, Tigard Libraries, and the Tigard School District to enhance the safety and quality of life for residents and to be sure that our programs are well-coordinated with other community resources. Partnerships with Community Action, Good Neighbor Center, Luke -Dorf, HopeSpring, Neighborhood House, Lifeworks NW and other organizations to provide .information;and:referral as well as emergency services like food boxes and rent and utility assistance. Coordination agreeineints with these:agericies'. enhances' ongoing lase management and: has. provided a fresh start to many families' facing significant barriers to moving -from homelessness to permanent housing. Several:familiesleach year are beirigreunited :witli their children+as-a result of receiving a housing opportunityAat eenburg Oaks:. Three` of the`apartenents are' reserved• for'; low-income families with -at leastonerii "ember in active recovery from alcohol or ding addiction: • The Community Center at Greenburg Oaks is the focal point for support, skill building, and community building activities offered by CPAH through its resident fservices program which includes after- school and summer youth programs. CPAH's on -site computer learning center is . usedby youthfor hoinework, research, e- mail,:andeducational,games, and by adults for job seararactivities and Internet access :: The Tigard Library has :twice obtained grant resources to purchase childre m's:material:form. on -site library.:.°: • r CPAH offers a variety of adult services as well. These include classes in support of parenting skills, budgeting and other financial literacy skills, and nutritional shopping and cooking. The Community Center is also host to a number of general community activities including rent • ' readiness courses, HopeSpring parenting classes, financial 'literacy -classes, parenting safety skills and budget and nutrition classes. The Community Center hosts weeklymeetings for AA, NA, and Alanon groups. C. Certification of Resident Income Levels Resident income levels are verified upon application for tenancy and are recertified each year. CPAH has covenants with the state and with Washington County to use the property exclusively for low income rentals for a period of at least 40 years. These covenants require that all households have earnings at or below 60% of the area median income. Some units are restricted to households earning at or below 50 %. Compliance with these covenants is monitored by the State of Oregon Department of Housing and Community Services and by theWashington County Office of Community Development. We certify that all apartments in this property are targeted to and remain affordable to households earning at or below 60% of the Area Median Income. D. How Tax Exemption Will Benefit Residents 100% of the property tax exemption is a direct subsidy for the residents. Every dollar reduction in operating costs is passed on as a reduction in the scheduled rents. Some costs, such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement, we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. APPLICATION FOR TAX ABATEMENT PAGE 3 OF 4 It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less_ severe police calls, healthier students, and stably housed social service consuniers, all provide a direct reduction in the demand for government funded services. • E. 'Tax Exempt Status CPAH is general partner,.of the Villa La Paz Limited Partnership, a single asset entity established for the purpose of acquiring the apartments and qualifying.for low- income housing tax credits. CPAH's IRS Determination. Letter is attached. CPAH undergoes a full independent audit of its books annually, as does Villa La Paz, LP. Both the State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the project and resident files annually. • F. Verification of•Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Pmperty Management Company performs day -to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. e 2 122,1 i[ Sheila Grecnla ink, Executive Director Date • • • APPLICATION FOR TAX ABATEMENT PAGE 4 OF 4 • • DI RE SERVICE DBPA .TMEsNT OF TES TREASURY • P. O. BOX 2508 • CINCINNATI, OH 45201 • Date: Employer Identification Nuw1er: - • W � " MI • 93- 1155559 DLN: • 1 7053030720009 COMMUNITY PARTNERS FOR AFFORDABLE HOUSING Contact Person: P0 BOX 23206 • THOMAS E O'BRIEN ID# 31187 Contact Telephone Number: '• • TIGARD, OR 97281 -3206 (877) 829 -5500 Our Letter Dated: • ' • February 1995 - . • • • Addendum Applies :• • . . . No • Dear Applicant: -- This modifies our letter of the above date is which we stated that you • would be treated as an organization that is -mot a private foundation until the expiration of your advance ruling period. i Your exempt status under section 501(a) of, the Internal Revenue Code as an . organization described in section 501(c)(3) is still in effect. Based on the :. information you subiaitted, we have. determined that you.are not a private foundation within the meaning of-section 509(a) of the Code because you are an . organisation of the type described in section 509(a)(1) and 170(b)(1)(A)(vi) :- • Grantors and contributors may rely on this determination the Internal Revenue Service.p 1iahes notice to the contrary. However, if you . lose your section! 509(a)(1) status, a grantor or contributor may not - rely on: ...this determination if he or she was is part responsible for, or was aware of, the act or gailure to' -.act, or the Subs or material change 'on the .part of the organization that resulted in your loss of such status, or if he•or she acquired knowledge that the Internal Revenue Service had given notice that you .would no longer be classified as a.-section 509(a)(1) organization. ' . If we have indicated in,.the heading of this letter -that an addendum ,applies, the addendum enclosed is an integral part of this letter. . Because this letter could help resolve any questions about.your private foundation status, please keep it•in your permanent records. If you have any questions,.- please contact thb person whose name and telephone number are shown above. • . Sincerely yours. C ' / A District Director • Letter 1050 (DO /CG) • COMMUNITY PARTNERS 4, . a fig ur MI FOR AFFORDABLE HOUSING, INC. 4r, PO Box 23206 • Tigard OR 97281 -3206 • TeI :503.968.2724 • Fa,c503.598.8923 • www.cpahinc.org • info@cpahinc.org City of Tigard Application for Tax Abatement February 20, 2011 Tangela Single Family Rental Home 9330 SW Tangela A. Property Description B. Project's Charitable Purpose C. Certification of Resident .Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. IRS Letter r A." Proper / Description ' , Community Partners for Affordable Housing, Inc. acquired the single family "Tangela - - House" at 9330 SW Tangela in Tigard, on December 31, 1999, with assistance from the Washington County CDBG program and a loan from Washington Mutual Savings Bank It is located just two blocks from CPAH's multifamily project, Greenburg Oaks Apartments. The two story 1,916 square foot house sits on a 5,450 square foot lot and is zoned R -7 residential. CPAH,converted upstai s room into a 5th bedroom and completed other necessary repairs after initial acquisition: In late 2006, the long term resident of the house gave notice that her family was growing and they were moving out of the area. We consider this a very successful outcome of a long term occupancy providing a stable neighborhood environment to raise a family that had previously experienced transient arid'sub-standard housing: The house underwent more than $5,000 in repairs and replacements and was re- rented to another large low income family in February 2007. This family remains as the resident today, Legal Description: Barbee Court, Lot 1, Tigard, County of Washington, State of Oregon. Tax Lot: 1 S 135DC - 05300. B. Project's Charitable Purpose The mission of Community Partners for Affordable Housing, Inc. (CPAH) is to promote a healthy community through the development of permanent affordable housing, sustainable economic growth; -and community -based partnerships. CPAH acquired the four - bedroom single family home in order to assist the County and the Good Neighbor Center Shelter / in meeti a ,d`replacement unit" requirement triggered by the Uniform Relocation Act wlien the shelter current site and.demoliihed a single family home housing a low- income family. CPAH completed needed repairs and upgraded the home to a five- bedroom dwelling, in order to provide a rare opportunity in our community — an affordable single- family rental house for a very large family. The home is proximate to CPAH's Greenburg Oaks property, where management and resident services are available to the household: These services include a computer center, community room, Food Bank distribution, neighborhood watch, and other programs. The home is located within a census tract (309) which has a higher than average concentration of low- income rental househblds. The number of residents without a high school diploma is notably higher than for Tigard as a whole (15% vs. 9 %). This area boasted the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9% of Tigard's population base, it is home to nearly 16% of the city's minority households. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 C. Certification of Resident Income Levels Resident income level is verified upon application, and must be less than 60% of the area's median income. Income is recertified annually. We certify that all residents served by this property earned at or below 60% of the AMI. D. How Tax Exemption Will Benefit Residents 100% of the property tax exemption is passed on as a direct subsidy for the residents. Every dollar reduction in operating costs results in a reduction in the scheduled rents. Some costs, such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement, we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less - severe police calls, healthier students, and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is direct owner of the Tangela property and is a nonprofit 501(c)(3) organization. Our operations are audited annually to, among other things, confirm that we are in compliance with our charitable status and with requirements of the County grant and Washington Mutual loan documents. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day - to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. Sheila -Fink, Executive Director Date APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 • • • • • • /ETERNAL REVENUE SERVICE • DEPxm THE TREASURY DISTRICT DIRECTOR P. O. BOX 2508 • CINCINNATI, OH 45201 • Date: Employer Identification Numbers • 93- 1155559 laa ) 1 1111 DLN: 17053030720009 COMMUNITY PARTNERS FOR AFFORDABLE Contact Person: ROUSING THOMAS E O' BRIEN ID)) 31187 PO BOX 23206 Contact Telephone Number: • TIGARD, OR 97281 -3206 (877) 829 -5500 • Our Letter Dated: • • February 1995 • Addendum Applies:' • • • No • - Dear Applicant: This modifies our letter of the above date in-which we stated that you • would be treated as an organization that is not a private foundation until the . . expiration of your advance ruling period. • Your exempt status under section 501(a) of. the Internal Revenue Code as an . organization described in section 501(c)(3) is still in effect. Based on the information you'submitted, we have determined that you.are.not a private • foundation within the meaning of section 509(a) of the Code because yoti are an Organisation of the type described in section 509 (a) (1) and 170 (b) (1•) (A) (vi) :- • Grantors,and contributors may rely on this determination unless the • internal Revenue Service publighes notice to the contrary. However, if you lose your section 509(a)(1) status, a grantor or contributor may not - rely on: this determination if he or she teas in part responsible for, or Was aware of, the act or gailtire : toy - .act, or the subs or material c)iange 'on the .part of • the organisation that resulted in your loss of such status, or if he she' . acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a.•section 509(a)(i) organization. • If we have indicated in ..the heading of this letter -that an addendum • ,applies, the addPas za enclosed is an integral part of this letter. Because this letter could help resolve any questions about.your private foundation status, please keep it in your permanent records. • If you have any questions,.•please contact the person whose name and telephone number are shown above. . . . • Sincerely youra, • C '7 64 A4a4-0/ District Director • Letter 1050 (DO /CG) • • City of Tigard ApplicMion for Tax Abatement Febn,tary2D, 2011 The Knoll @ Tigard 12291 SW Knoll Drive Tigard, Oregon 97223 'A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. IRS Letter PAGE 1 OF 3 A. Property Description The Knoll @ Tigard will open by April 4, 2011 with final project work in process. The Knoll @ Tigard is located at 12291 SW Knoll Drive in Tigard. The location fronts on Hall Boulevard between SW Hunziker and SW Knoll. This site is a prime example of urban development, perched on the edge of the developing downtown of the City of Tigard, walking distance to the library, senior center, transportation, shopping and a variety of other amenities. Previously, three parcels of land totaling 1 acre supported only 3 single family residences. Following the recent zone change, and consistent with the long range goals of the City development plans, The Knoll © Tigard brings this density to nearly 50 units per acre. The design takes advantage of a site with an established infrastructure of utilities, adjacent transportation and services, and enhances it's potential as a catalyst for respectful development of the urban neighborhood. The project receives a "very walkable" rating from Walkscore.com. The Knoll @ Tigard is a 45,000 square foot, 48 -unit apartment building providing active living for independent, low-income seniors along with common rooms and meeting space. Streetscape improvements were required on all 3 street frontages, including development of sidewalks, planting strips with street trees and below -grade utilities. Public spaces including entry courtyards and site walks are well lit. The Knoll © Tigard is a secure access building with a surveillance system. The total site contains .98 acres. Legal Description: see attached Exhibit A Tax Lot: R458454, R458436, R458445 B. Project's Charitable Purpose The mission of Community Partners for Affordable Housing, Inc. (CPAH) is to promote a healthy community through the development of: permanent affordable housing, sustainable economic growth, and community -based partnerships. The Knoll @ Tigard is CPAH's first affordable units for seniors in Tigard and compliments CPAH's affordable units for seniors in Hillsdale. The 48 units are affordable to very low and low income residents on a permanent basis (The Knoll @ Tigard provides affordable housing for a minimum of sixty (60) years, with maximum rents regulated by covenants on the property). Rents are affordable to households at 30% to 60% of area median income and below market rents. 45 of the units are one bedroom units and 3 of the units are two bedroom units (1 of which for the on- site manager). 12 of the one bedroom units are Project Based Section 8 units through the Washington County Housing Authority and are set-aside for Veterans. CPAH has expanded its community partnerships with the Tigard Police, the Tigard Library and the VA.. Community building is provided through resident services programs and outreach. The Community Room is the focal point for community building activities and includes a computer center for residents. C. Certification of Resident Income Levels Resident income levels are certified upon application. Residents may remain in their units as long as they income qualify at entry. Rents are $597 per month for the one - bedroom apartments deemed at 13% below market rates. Rents are $707 per month for the two- bedroom apartments. Water, sewer and trash are included in the monthly rental. PAGE 2 OF 3 D. How Tax Exemption Will Benefit Residents The property tax exemption is a direct savings for the residents, allowing for reduced operating costs which results in affordable reduced rents for the seniors at The Knoll. For both the initial development, and long term operations of the project, full tax abatement is essential. The project pro forma allowed for the construction of The Knoll which meets all City and State design requirements along with affordable rents for our seniors. The Knoll includes financing through Washington County HOME and CDBG funds, State of Oregon Trust Fund and Tax Credits. JP Morgan Chase is the private lender with Enterprise Neighborhood Partners as the investor (under the tax credit program). Tax abatement was critical in meeting lender and investor requirements while keeping rents affordable for The Knoll @ Tigard. Tax abatement is a direct benefit to senior residents who will pay lower rents. Tax abatement is key to the long -term sustainability of the project operating with affordable rents for seniors. E. Tax Exempt Status CPAH, an Oregon non-profit, is the general partner of The Knoll © Tigard Limited Partnership, a single asset entity. CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually, as will The Knoll @ Tigard. Mark Schwing of Markusen & Schwing in Beaverton currently provides audit services for CPAH and CPAH's single asset properties. The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development both will inspect and audit the project annually. The tax credit investor (Limited Partner) also monitors the project on a monthly basis and physically inspects on an annual basis. F. Verification of Information As CPAH's executive director, I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management provides the day - to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. If additional information is desired on any aspect of this application, please do not hesitate to call. Thank you in advance for your consideration. attsk 4.41,a Sheila Greenlaw -Fink, CPAH Executive Director Date: Z/V I( PAGE 3 OF 3 • F.ICIIIBIT A • Legal Description of the 'Property • • • . PARCEL 1: - • Lot 3, according to the drily filed plat of KNOLL ACRES, in the City of Tigard, filled . . December . 15, 1948, in Plat Book 12, Page 30, Records of the County of Washington and . State .of Oregon. . EXCEPTING THEREFROM the following described tract conveyed to the State of Oregon, by and through its State Highway Commission by Deed recorded April 13, 1959, Book . 416, Page 303. . • • PARCEL II: Lot 4, according to the duly filed plat of KNOLL ACRES, in the City of Tigard, filed . . . - • December 15;1948, in Plat Book 12, Page-30, Records of the County of Washington and ' ! - - State of Oregon. . EXCEPTING THEREFROM that parcel deeded to the State of Oregon by and through its • • State Highway Commission, by Warranty Deed, recorded September 25, 1958, in Book 409, Page 506, Deed records Washington County, Oregon.. • • • . • .. ALSO EXCEPTING THEREFROM that parcel deeded to the City of Tigard by Document . • ' Recorded June 25, 1981 as Record'er's Fee No. 81021925,•Deed of Records; Washington • • , ' County. PARCEL III: • . - • _ . • • ' ..- Lot 5, according to the duly filed plat of KNOLL ACRES,• in the City of Tigard, filed ; • • • • December 15,1948, in Plat Book 12, Page 30, Records of the County of Washington and • • . State of Oregon. • . • EXCEPT that portion deeded to the City of Tigard in Document recorded September 5, - 1975, in Book 1043, Page 967. ' • ALSO• EXCEPTING THEREFROM that parcel deeded to the City of Tigard by Document • • -recorded June 25, 1981 as Recorder's Fee No. 81021925, Deed'Records, Washington County. *This property is free of encumbrances. created or suffered •by Grantor, EXCEPT: • • .1. The subject property lies within the boundaries of the Unified Sewerage Agency and is subject to the levies and assessments thereof. . , ' • 2. Restrictive covenants to waive future .rights of remonstrance against the formation of • a local improvement district, Recorded: August 14, 1984 as Recorder's Fee No • •• • . • • 84032022;' Type of Improvement: Street (Affects .Parcels 1 and 111). A memoranduxri was . • recerded between grantor and grantee • on June 14, 1996 as Recorder's Fee No. 96053520. . • • . . • IP umn•B . s • i\11 . ; ' ' ( 4.. i ! Jf • • • • INTERNAL REVENUE SERVICE DISTRICT DIRECTOR DEPARTMENT OF THE TREASURY P. 0. BOX 2508 CINCINNATr, OR 45201 . 1 Date: • Employer Identification Number: MAR )1 1101 93- 1155559 DLN: COMMUNITY FOR AFFORDABLE • no us= PARTNERS AP'ORDABLB Contact Person: PO BOX 23206 THOMAS E O'BRIEN ID# 31187 • *WARD, OR 97281 -3206 Contact Telephone Number: • (877) 829 -5500 Our Letter Dated: • • February 1995 Addendum Applies:' No • Dear Applicant: This modifies our letter of the above date in which we stated that you • . would be treated an an organization that is not a private foundation until the . expiration of your advance ruling period. • • i Your exempt status under section 501(a) of the Internal Revenue Code as an • organization described in section 501(c)(3) is still in effect. Based on the . - Information you submitted, we have determined that you are not a private - foundation within the meaning of- section 509(a) of the Code because you are as : organization of the type described in section 509 (a) (1) and 170 (b) -(1•) (A) (vi)'. • Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a)(1) status, a grantor or contributor may not - rely on . this determination if he or she was 4 part responsible for, or was aware of, ,. .the act or failure to act, or the substantial or material change 'on the .part of . ' the organization that resulted in your loss of such status, or if he•or she' acquired knowledge that the Internal Revenue Service had given notice that you .would no longer be classified as a..•section 509(a)(1) organization. • If we have indicated in.the heading of this letter that an addendum addendum applies, the addendum enclosed is an integral part of this letter. • Because this letter could help resolve any questions about -your private foundation status, please keep it in your permanent records. . If you have any questions,- please contact the person whose name and telephone number are shown above. • Sincerely yours., • 4.1040/ District Director • • • Letter 1050 (DO /CG) • • • 'COMMUNITY PARTNERS re , . i FOR AFFORDABLE H OUSING, INC. ' Arum Alt . .. , : • PO Box 23206 •Tigard OR 97281 -3206 • Tel:503.- 293 -4038 • Fax :503 - 293.4039• www.cpahinc.org • info@cpahinc.org City= of Tigard Appic, on forTaxAbabement February 20, 2011 Village at Washington Square 11157 -11163 SW Hall Boulevard, Tigard A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. IRS Letter A. Pr"±operty�Descnption • Village_at Washington Square is located at 11157 - 11163 SW Hall Boulevard, between SW Spruce and SW Pfaffle in Tigard. The site is located within the Washington Square Regional , Center and is proximate to many employment opportunities as well as public transportation and other services. The Village at Washington Square includes three residential buildings with a total of 26 dwelling units, and a community building, all arranged around a central courtyard/play yard. The project includes one studio, seven one- bedroom, five two bearoonl,; seven three - bedroom arid` six four - bedroom units. Eleven of the units are traditional apartment flats, while the other 15 are two -story townhomes with bedroom's above the main floor living °space. The project includes a community green space with benches, a path and a butterfly garden. The total site sits on .84 acres. Legal Description: Partition Plat 1998 -038, Lot 1 and Partition Plat 1998 -038, Lot 2 in the City of Tigard, County of Washington, State of Oregon Tax Lot: 1 S 135DA (04600 & 04700) B. Project's Charitable Purpose The mission of Community Partners for Affordable Housing, Inc. (CPAH) is to promote a healthy community through the development of: permanent affordable housing, sustainable . economic growth, and community -based partnerships. Whenit opened in 2002, The Village at Washington Square was the first addition of affordable units to the Tigard housing stock in a decade. The 26 units are priced to be affordable to very low, low, and moderate - income residents. The project is subject to an extended use agreement to keep the rents affordable for 60 years, effectively the full life of the project. This covenant is recorded with the title of the property and requires that rents will be affordable to households at 30 %, 45% and 60% of area median income and significantly below market rents. Half of the units are three and four bedroom apartments serving larger families who are often unable to find affordable rental opportunities in Tigard. CPAH maintains active partietships;.with the Tigard Police Department, Tualatin Valley Fire & Rescue, Tigard Libr . Tigard School District to enhance the safety and quality of life for residents and to ensure that our programs are well- coordinated with other community resources: CPAH works closely with Community Action and other agencies to provide information and referral as well as emergency services 'such as food boxes: as well as rent and utility assistance. Coordination agreements with social service programs such as HopeSpring (a par of Lutheran Family Services, Community Action Organization, Good Neighbor Center, Luke -Dorf, and Lifeworks NW enhance ongoing case management and link stable housing with successful programioutcomes. The Community Center at The Village at Washington Square is the focal point of the.support, skill Wilding, and community building activities offered by CPAH through its resident services programs. CPAH's on -site computer learning center is used by youth for homework, research., e- mail, and educational games; and by adults for job search activities and Internet access. CPAH offers a variety of adult services as well. These include Neighborhood Watch, classes in support of parenting skills, budgeting and other financial literacy skills, and nutritional shopping and cooking. The center is also host to weekly HopeSpring self-sufficiency classes. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 The Village at Washington Square is located within a census tract (309) which has a higher than average concentration of low- income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole (15% vs. 9 %). This area has the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9% of Tigard's population, it is home to nearly 16% of the city's minority households. C. Certification of Resident Income Levels Resident income levels are verified upon application for tenancy. Residents may remain in their units as long as they income qualify at entry. Rents are well below the market for the area. We certify that all apartments in this project are targeted to and remain affordable to households earning at or below 60% of the AMI. Compliance with income restriction requirements is audited annually by the State of Oregon Department of Housing and Community Services, Washington County Office of Community Development, and by our limited partner investor, Key Bank. D. How Tax Exemption Will Benefit Residents 100% of the property tax exemption is a direct subsidy for the residents. Every dollar reduction in operating costs is passed on as a reduction in the scheduled rents. Some costs, such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement, we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less -severe police calls, healthier students, and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is the general partner of the Village at Washington Square Limited Partnership, a single entity asset. CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually, as does the Village at Washington Square. The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the project and resident files annwdly. F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day -to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. Sheila Greenlaw -Fink, Executive Director Date APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 • • • • • • • INTERNAL REVENUE SERVICE DISTRICT DIRECTOR • DEPARTMENT OF TH8 TREASURY P. O. BOX 2508 • CINCINNATI, OR 45201 • Date: Employer Identification Number: • 93- 1155559 WR 11 I $11 D1 : 17053030720009 COMMUNITY PARTNERS FOR AFFORDABLE • Contact Person: • HOUSING THOMAS 5 O'BRIEN IDt 31187 • PO BOX 23206 Contact Telephone Number: • TIGARD, OR 97281 -3206 (877) 829 -5500 • Our Letter Dated: February 1995 • • Addendum Applies:• No • • • Dear Applicant: • • -- Tbis. modifies our letter of the above date in•which we stated that you . would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. • Your exempt status under section 501(a) of, the Internal Revenue Code as an . organization described in section 501(c)(3) is still in effect. Based on the :. information you'subtaitted, we have determined that you are not a private foundation within the ieanitag of'.section 509(a) of the Code because you are an . Organization of the type described in section 509(a)(1) and 170(b)(1)(A) • Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you . lose your section 509(a)(1) status, a grantor or contributor may not - rely on: this determination if be or she was in part responsible for, or was aware of, - t3ie act or _ failure : to' -.act, or the substantial or material change - on the .part of • the organization - that resulted in your loss of such status, or if he she' • • acquired knowledge that the Internal Revenue Service had given notice that you .'would no longer be classified as ae 509(a) (i1t organization. • If we have indicated in..the heading of this letter -that an addendum ,applies, the addendum enclosed is an integral part of this letter. Because this letter could helpresolve any questions about.your private foundation status, please keep it-in your permanent records. If you have any questions,. - please contact the person whose name and telephone number are shown above. • Sincerely yourst, • C � • District Director • • Letter 1050 (DO /CG) • • MEMORANDUM T I GAR.D TO: Toby LaFrance, Finance and Information Services Director FROM: Duane Roberts, Project Planner a4'V RE: CPAH Tax Exemption Application DATE: March 2, 2011 The Tigard -based Community Partners for Affordable Housing (CPAH) has submitted separate applications for low - income housing tax exemptions for each of the four properties it owns and manages inside the City. The three include the 26 -unit Village at Washington Square, the 84 -unit Greenburg Oaks, and a four - bedroom single family house located two blocks from the Greenburg Oaks units at 9330 SW Tangela, and the Knoll @ Tigard at 12291 SW Knoll Drive. TMC 3.50.020, "Nonprofit corporation low income housing; exempt criteria ", provides standards for considering exemption requests. Whether and how the CPAH applications meet each of these standards is detailed below. 1. The property is owned or being purchased by a corporation that is exempt from income taxes under section 501(c) (3) or (4) of the Internal revenue Code .. . A copy of an Internal Revenue Service letter, dated March 11, 1999, verifies that CPAH qualifies as a 501(c) organization. 2. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon. The list of submittal requirements under TMC 3.50.040 does not include any reference to information on asset liquidation, and the CPAH applications do not contain any such information. The director, Sheila Greenlaw -Fink, verbally has confirmed to staff that the organization's incorporation papers do, indeed, include a provision of this kind. 3. The property is occupied by low income persons. The TMC defines low income as household income at or below 60% of area median. According to the CPAH submittals, in the case of all three of its projects, tenant income is verified upon application and is re- certified on an annual basis. Household income at or below 60% of median is the cut -off for continued eligibility. Within each of its applications, CPAN certifies that all residents served by the three properties in question earn at or below the 60% level. 4. The property or portion of the property receiving the exemption, is actually and exclusively used for the purposes described m section 501 (c) (3) or (4) of the Internal Revenue Code .. . The applications certify and a staff visit to the Greenburg Oaks and Village at Washington Square apartments confirms that those properties are exclusively used for the intended purposes. The Knoll @ Tigard is scheduled to open in April, 2011. 5. The exemption has been approved as provided in section 3.50.050 This criterion relates to the required City process for handling exemption requests. Conclusion: CPAH -owned properties have qualified for tax abatement every year since 1996. According to the applications submitted for 2011 abatement, no changes in circumstances have occurred that would disqualify the non -profit housing provider from continuing to receive the exemption. The "Affordable Housing Program ", adopted 9/03 as "a complete and official statement of the City's overall affordable housing program ", includes tax abatement as one of the City's strategies for facilitating affordable housing in the community. The abatement's purpose is to allow the operators of low - income housing to decrease annual operating expenses, thereby allowing them to serve lower - income households. According to the CPAH applications, if granted, 100% of the property tax exemptions would continue to be passed on as a direct subsidy for its residents. Therefore, granting the exceptions to CPAH would be consistent with the applicable TMC standards and also with adopted City housing policies. AIS- Fiscal Impact of Tax Abatement Property Estimated City of Tigard City of Tigard Total Tax Rate Total Market Tax Rate Property Tax Property Value* (Including Bond Impact Tax Impact Levy) (Estimated) Village at $1,728,210 $2.9968/$1,000 $5,179 $16.4031/$1,000 $28,348 Washington Square Single Family $245,040 $2.9968/$1,000 $734 $16.4031/$1,000 $4,019 Home — 9330 SW Tangela Ct. Greenburg $4,680,720 $2.9968/$1,000 $14,027 $16.4031/$1,000 $76,778 Oaks The Knoll @ $349,130 $2.9968/$1,000 $1,046 $16.4031/$1,000 $5,727 Tigard Total Impact $20,986 $114,872 * Because these properties have been exempted from property taxation in the past, Washington County does not show a current assessed value. These figures are an estimated market value. AIS -338 Item #: 6. Business Meeting Date: 03/22/2011 Length (in minutes): 30 Minutes Agenda Title: Briefing on the Economic Opportunities Analysis Submitted By: Darren Wyss Community Development Item Type: Update, Discussion, Direct Staff Meeting Type: Council Business Meeting - Main ISSUE Receive briefing on draft Tigard Economic Opportunities Analysis (EOA) prior to its consideration at a Planning Commission public hearing in April 2011. STAFF RECOMMENDATION / ACTION REQUEST Council is requested to receive a briefing about the EOA from staff. KEY FACTS AND INFORMATION SUMMARY The City of Tigard is conducting an Economic Opportunities Analysis (EOA) as part of state required Periodic Review of the Comprehensive Plan. The completion of an EOA is a specific task in Tigard's Periodic Review work program. Tigard has received grant funds from the Department of Land Conservation and Development (DLCD) for consultant assistance to complete this task. The EOA must be developed in compliance with OAR 660, Division 9 (Goal 9), and is a technical study that compares the projected demand for industrial and other employment land to existing land supply. The process helps communities implement their local economic development objectives and informs implementation of ecnomic employment development policies in the Comprehensive Plan. The Planning Commission has acted as the advisory committee for the project, reviewing each task during the process to complete the EOA. The anticipated outcomes of the project are: 1) An understanding of the characteristics of Tigard's employment lands and their adequacy to accommodate future economic activity; 2) proposed economic development policies and action measures as a basis to plan for a supply of appropriately zoned land necessary for existing businesses to expand and to accommodate future economic activities. The Planning Commission has completed its final review of the staff proposed draft EOA (see attached Executive Summary) and is prepared to hold a public hearing on the document . Three different "land need" scenarios were analyzed. Each scenario identified an appropriate amount of future employment, commercial, and industrial lands to accommodate projected job growth. It is anticipated that the "land efficient" scenario is appropriate for the City of Tigard. This scenario would not require any rezoning of vacant property at this time and its selection can be based on the following preliminary findings: • The City has a limited supply of vacant industrial and employment lands. • The City is currently limited in its ability to expand its boundary to increase its industrial /employment land base. • The City has a good supply of properties that meet the definition of "high redevelopment potential." • The City's strategy is to redevelop Downtown Tigard, the Tigard Triangle, the Washington Square Regional Center, and the Pacific Highway Corridor. • The City has a future opportunity to jump -start redevelopment with the arrival of high capacity transit. The final step of the draft EOA was to develop implementation measures. After a review of existing Comprehensive Plan policies and recommended action measures, the proposed EOA includes some minor changes to Comprehensive Plan language to reaffirm the City's vision and to ensure compliance with state requirements. The next step is adopt the EOA as a component of Tigard's Comprehensive Plan. The following is the anticipated schedule to complete the EOA task • April 4, 2011 - Planning Commission Public Hearing • May 10, 2011 - City Council Public Hearing • May 31, 2011 - End of Grant Contract and Submit to DLCD OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS 1. Implement Comprehensive Plan 2. Implement Downtown and Town Center Redevelopment Opportunities DATES OF PREVIOUS COUNCIL CONSIDERATION August 8, 2010 - Periodic Review Update February 15, 2011 - Economic Opportunities Analysis Briefing Fiscal Impact Cost: $35,000 Budgeted (yes or no): Yes Where Budgeted (department /program): CD Dept. Additional Fiscal Notes: The Oregon Department of Land Conservation and Development committed $35,000 from its Periodic Review Grant program to fund an Economic Opportunities Analysis. The City hired Cogan Owens Cogan to perform the work. The City is not required to provide matching funds, but provides in -kind contributions of staff time and materials to aid in completing the project. Attachments EOA Presentation EOA Executive Summary City of Tigard Economic Opportunities Analysis City Council Briefing March 22, 2011 Goals of the Meeting Recap purpose of EOA Review 6 completed tasks Task 1 - CEDOs Task 2 — Trends Analysis 11 Task 3 — Site Suitability Analysis T I GARD Task 4 — Inventory of Suitable Sites Task 5 — Assessment of Potential Task 6 — Implementation Recommendations Next Steps Tigard EOA Briefing to City Council — March 22, 2011 Economic Opportunities Analysis Required by OAR 660, Division 9 Tigard Periodic Review Requirement Technical Study Compares projected 20 -year industrial and T I GARD employment land demand to existing supply Ensure adequate supply of land for industrial and employment uses Tigard EOA Briefing to City Council — March 22, 2011 EOA Process City of Tigard - Economic Opportunities Analysis Task 1: Preparation Task 2: Trends Analysis • Community Economic 1111. • Forecast lob Growth by Sector Development Objectives (CEDO's) • Identify Employment Clusters that Align with CEDO's 1 Task 6: Implementation Task 3: Site Suitability Analysis (Demand) • Floor Space Needed to • Recommendation on Accommodate Growth Policies and Strategies • Vacant land Needs 1 Task 5: Assessment of Potential Task 4: inventory of Suitable Sites (SuPPly) • Reconciliation of Demand vs. Supply • Buildable Lands Analysis • Growth Scenario • Redevelopment Potential Tigard EOA Briefing to City Council — March 22, 2011 Task 1: CEDOs Encourage family -wage jobs Develop existing industry clusters Promote efficient development of employment lands Ensure flexible and adaptive regulatory practices ° p T I GARD Focus growth in designated centers and corridors Limit retail and service uses in industrial areas; support neighborhood commercial areas Encourage businesses that are environmentally and economically sustainable Tigard EOA Briefing to City Council — March 22, 2011 Task 2: Trends Analysis Forecast job growth by sector What type of growth is probable for Metro region? What type of growth do we want in TIGARD Tigard? Family -wage employment Targeted clusters Tigard EOA Briefing to City Council — March 22, 2011 Task 3: Site Suitability Analysis (Demand) Project land needs based on forecast job growth Analyzed three "land need" scenarios Floor space needed to accommodate 1 = growth T I GARD General job sector by building type Redevelopment /vacant building assumptions Vacant land needs Tigard EOA Briefing to City Council — March 22, 2011 Task 4: Inventory of Suitable Sites (Supply) Buildable lands analysis Supply of vacant industrial, commercial, and mixed -use zoned properties Redevelopment potential Based on improvement to land ratio T I GARD High, moderate, and low potential Check capacity to accommodate cluster needs Tigard EOA Briefing to City Council — March 22, 2011 Task 4: Inventory of Suitable Sites (Supply) 1 i � y Buildable Lands MI } , � Inventory • • . R e i n ifLT;' ' �� January , 201 Regiona of Tigard r. _ Oregon 7._ .., _ , ., ' A .,, ., . 02 IMMIn0 11GPF I ';N: 1 , 470144 }x 1 �'' � at Steam coRmt 1 i[} i' ' - - ' imrrboyi.u. 1 l Ti 9a Bt.d.Me ands �, e , r '1 l :: 111 +� rte. * � ' o r T t .� \ ' , 163■10< Boundary ' L . c ,.. Improvement to Land Ra ... ..,, .., II/I"�a • Im prove l and le �„ � ' � f IJM6iR�U]3 I t ' .. oaaa,d • -�.,aWrttinl0 L. -_ a l{ 1 - .. _ Owned Lard V .., Pacihc Highwa _ �� .�....., �"`-" "] HCT Corniior "' ~` — " . � ClM� ., _ • . n . i :�: Tigard EOA Briefing to City Council — March 22, 2011 Task 5: Assessment of Potential Reconciliation of demand vs. supply Analyzed three "land need" scenarios "Land efficient" scenario is appropriate TIGARD Requires no rezoning of vacant property Consistent with current conditions and identified City "vision" Tigard EOA Briefing to City Council — March 22, 2011 Task 5: Assessment of Potential City has a limited supply of vacant industrial & employment lands City is limited in ability to expand boundaries Good supply of "high redevelopment potential" Redevelopment Vision Downtown, Triangle, 99W Corridor, WSRC w Future opportunity with HCT TIGARD Tigard EOA Briefing to City Council — March 22, 2011 Task 6: Implementation Recommendations Review existing Comp Plan language Two types of recommendation: Implement the EOA (policies) CEDOs State requirements T I G A R D Commission suggestions Address future economic development activities (recommended action measures) Tigard EOA Briefing to City Council — March 22, 2011 EOA Next Steps • April 4th — Planning Commission Public Hearing • May 10th — City Council Public Hearing • May 31st — Grant Contract Ends TIGARD Tigard EOA Briefing to City Council — March 22, 2011 DRAFT March 8, 2011 Executive Summary The City of Tigard has conducted an Economic Opportunities Analysis (EOA) as required by its Periodic Review work program to update its Comprehensive Plan. The City received grant funds from the Department of Land Conservation and Development (DLCD) for technical consultant assistance to complete this task. The EOA was developed in compliance with OAR 660 Division 9 (Statewide Planning Goal 9: Economic Development). The EOA is in -part a technically -based study that compares projected demand for land for industrial and other employment uses to the existing supply of such land. At the same time, it provides economic development policies and actions consistent with emerging economic opportunities, market trends, and local vision Vision and Goals In March 2008, as part of a robust public process, the City of Tigard updated the Economic Development chapter of its Comprehensive Plan. The chapter included the City's vision and goals for economic development to read: Vision The City shall have a strong and resilient local economy with a diverse portfolio of economic activity: retail, professional service and industrial jobs. Goals 1. Develop and maintain a strong, diversified and sustainable local economy. 2. Make Tigard a center and incubator for innovative businesses including those that focus on environmental sustainability. 3. Make Tigard a prosperous and desirable place to live and do business. Demographic and Employment Trends Tigard has been increasing in population at a slower rate (1.3 %) than Washington County, but above Oregon and national growth rates. Tigard population is estimated to be 47,460 as of 2009, up from 42,260 residents in 2,000. Tigard currently is relatively "jobs rich" with a positive ratio of 2.3 jobs per household, which is well above the tri- county Metro regional average of 1.5 jobs per household. This is understandable given Tigard's concentration of regional employment centers, including Washington Square Mall, the "Tigard Triangle" employment area near the confluence of I -5 /Hwy. 217, and pockets of industrial uses along the Hwy. 217 corridor. Tigard also is home to a number of large retail employers at Washington Square Mall as well as several large high -tech manufacturing, construction contractors, professional, business operations, and state and local government operations. Regional commercial and industrial real estate brokers see Tigard as a well - defined submarket within the suburban Metro region. Tigard's office market is especially competitive within the inner southwest portion of the region. Additionally, various efforts are underway to make the Downtown Tigard area a more viable place to live and work. Target Industries In line with Tigard's vision and goals, and in consultation with the City Planning Commission, the consultant team and City staff recommend that the City focus on retaining and attracting a mix of existing and emerging business clusters that pay above average wages. This includes existing, established clusters such as: • Durable goods manufacturing (includes metals and machinery) • Education (private and non - profits) • Financial services Tigard Economic Opportunities Analysis Page 1 DRAFT March 8, 2011 • Information (including software development) • Professional and technical services • Wholesale trade They also recommend that the City focus on emerging clusters, including health care and advanced technology (i.e., green energy) manufacturing and research operations. Tigard's Land Demand and Supply The consulting team prepared a range of land need forecasts including: efficient, medium, and high land needs scenarios. These scenarios all take into account the Metro employment forecasts, but assume varying levels of industrial development and redevelopment. As summarized in the table below, the land efficient need scenario assumes 48 acres of net new industrial vacant land demand, which is just below the estimated vacant industrial land supply of 50 acres. If the City chooses to pursue a more aggressive economic growth strategy that is consistent with the moderate or high land need scenario, the City would need to identify another 14 to 30 acres of vacant industrial land area to meet the level of industrial demand associated with adding another 1,059 to 1,324 industrial jobs. 20 -Year Industrial Demand Forecast and Vacant Land Supply, Tigard USB Efficient. Land Moderate Land High Land Land Demand and Supply Need Need Scenario Need Scenario Scenario Demand for Vacant Industrial 48 64 80 Land Supply of Vacant Industrial Land 50 50 50 Land Surplus or (Deficit) 2 (14) (30) Existing Forecast of Preliminary Parcel Distribution, Unconstrained Parcel Size Surplus Efficient Land Need Forecast 1 Supply (tax Demand (tax lots) lots) (tax lots) 1 / Less than 1 acre 12 10 2 1 to 5 acres 5 5 0 5 to 10 acres 0 0 0 10 to 20 acres 2 2 0 20+ acres 0 0 0 Total 19 17 2 Notes: I Tax lot demand forecast expected to meet or exceed supply in 20 years. Source: Based on findings included in demand and supply analysis. As shown in the table below, the efficient land needs scenario assumes 78 acres of net new commercial and mixed -use vacant land demand, which is just below the estimated vacant land supply of 86 acres. As with the industrial land needs, an economic growth strategy that is consistent with the moderate or high land needs scenario would require the City to identify an additional 19 to 45 acres of vacant commercial and mixed -use land to meet the demand. Tigard Economic Opportunities Analysis Page 1 2 DRAFT March 8, 2011 Reconciliation of Long -term Land Demand and Supply Commercial and Mixed Use 20 -Year Land Use Forecast (gross buildable acres), Tigard USB Efficient Land Medium Land High Land Land Demand and Supply Need Need Need Scenario Scenario Scenario Demand for Vacant Commercial 78 105 131 Land Commercial Demand 51 68 85 Mixed - Use Demand 27 36 45 Supply of Vacant Commercial Land 86 86 86 Commercial Zoned Supply 46 46 46 Mixed - Use Zoned Supply 40 40 40 Land Surplus or (Deficit) 8 (19) (45) Preliminary Parcel Distribution, Existing Supply Forecast of Surplus Efficient Need Forecast (tax lots) Demand (tax lots) (tax lots) Less Than 1 acre 89 30 59 1 to 5 acres 14 14 0 5 to 10 acres 3 3 0 10 to 20 acres 0 0 0 20+ acres 0 0 0 Total 106 47 59 Source: FCS GROUP, based on findings included in demand and supply analysis. Recommendations In accordance with the proposed vision and goals, the consulting team and City staff recommends the City pursue the "efficient land need scenario ". The implications of this recommendation are that the City will focus a significant portion of future employment growth and high- density housing development in its Metro - designated Town Center (Downtown); Regional Center (Washington Square); High Capacity Transit Corridor (Hwy 99W); and the Tigard Triangle. More detailed information on employment trends and projections, and land needs and supply is found throughout the remainder of the document. Tigard Economic Opportunities Analysis Page 1 3 AIS -201 Item #: 7. Business Meeting Date: 03/22/20H Length (in minutes): 15 Minutes Agenda Title: Briefing on Two Capital Improvement Plan Projects Prepared For: Ted Kyle Submitted By: Ted Kyle Public Works Item Type: Update, Discussion, Direct Staff Meeting Type: Council Business Meeting - Main ISSUE The Council will be briefed on two Capital Improvement Plan (CIP) projects. STAFF RECOMMENDATION / ACTION REQUEST No Council action is requested; the Council is asked to listen to the briefing. KEY FACTS AND INFORMATION SUMMARY In order to keep the Council informed on the status of current CIP projects, staff provides regular CIP project briefings. Two projects will be discussed at this meeting. Pacific Highway Intersection Improvements The City is working in conjunction with the Oregon Department of Transportation and Washington County to construct improvements at the intersections of Pacific Highway and Hall Boulevard and Pacific Highway and Main Street /Greenburg Road. Work on the improvements started about a year ago and is nearly complete. A third through -lane on Pacific Highway and new turn lanes from intersecting streets are open to motorists. Preliminary traffic data indicates the intersection improvements were successful. Traffic back -ups have been dramatically reduced, with most vehicles moving through each of the revamped intersections in one signal cycle. The improvements have reduced travel times on Pacific Highway southbound from 1 -5 to Greenburg Road by about 20 percent. Northbound travel time between Walnut Street and Highway 217 has been reduced by about 30 percent in the evening rush hour and by about 60 percent midday. 550 -Foot Zone Improvements 10- Million- Gallon Reservoir Improvements and Transfer Pump Station In this project, the City will repair and retrofit an existing ten - million- gallon reservoir, abandon the existing pump station, construct a new pump station, install backup power generation to the new pump station and to the existing aquifer storage and recovery well, and construct site improvements. The project started in 2008 and is at about 60 percent complete. Recent tasks include the application of a protective coating to the reservoir's concrete floor. This coating will extend the life of the concrete. The "basement" of the new pump station has been excavated to a depth of about 40 feet, and the concrete work is complete. The basement will house pumps, valves, and piping for the pump station. The electrical building will be built over the pump station basement. OTHER ALTERNATIVES Not applicable COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Pacific Highway intersection improvements are related to the 2011 City Council Long -Term Goal, "Continue pursuing opportunities to reduce traffic congestion." The 10- million- gallon reservoir improvements and transfer pump station project is identified in the Water Distribution System Hydraulic Study. DATES OF PREVIOUS COUNCIL CONSIDERATION Staff provides regular briefings to the Council on various CIP projects. The last project briefing was in November 2010. Fiscal Impact Fiscal Information: The projects discussed in this briefing are budgeted in the 2010 -2015 CIP. Funding sources are varied and include City funds, such as the City gas tax and street maintenance fee, American Recovery and Reinvestment grants, Safe Drinking Water Revolving Loan Fund. and funding from Oregon Department of Transportation and Washington County. Attachments PowerPoint Presentation r City of - ' Respect and Care 1 Do the Right Thing 1 Get it Done Tigard z • Active Capital Construction Projects Presented to Tigard City Council TIGARD March 22, 2011 Active Capital Construction Projects Cit\ of Tigard Pacific Hwy /Greenburg Rd /Main St Intersection Improvements 1 1 OW ) ark • Pre - construct RP k - — 1 i r „ 1°1 --� ' ■ NV-- ' ..� 1L a Active Capital Construction Projects City of Tigard Pacific Hwy /Greenburg Rd /Main St Intersection Improvements \, e' / i ` � 1 • Post - construction II -- VII or Active Capital Construction Projects CitN of Tigard 550 -foot Zone Improvements 10- million gallon Transfer Pump Station • Piping installation connecting the reservoir to the pump station . � _ Active Capital Construction Projects City of Tigard 550 -foot Zone Improvements 10- million gallon Transfer Pump Station � � _" • Forming, installing 016 a rebar, and adding a , _h conduit for the " ' - pump station \ , , • \, \ \ i - 1 \ \ I jr. Active Capital Construction Projects City- of Tigard 550 -foot Zone Improvements 10- million gallon Transfer Pump Station c , - w, Pouring the top of — ., , �-,� ,i�,� • the pump station building •••••-- ma 't.@ rj. ..., 1 rr ,...c...,...c.,,,,.... -� -- '-----'=.---- • Q2� /h l a, � 9 ._._. Active Capital Construction Projects City of Tigard 550 -foot Zone Improvements 10- million gallon Transfer Pump Station ,r 4 ti +V 1 ,� a K.w w' "� i h,_ I 1 • Finished concrete . surface top of the , . ..:,,,„ , — pump station building 1 4 _ mown I i ' ' \ ' , W Active Capital Construction Projects City of Tigard 550 -foot Zone Improvements 10- million gallon Transfer Pump Station t 4 � so 4 f", f le 1 1 ' r Painting the inside of the reservoir Active Capital Construction Projects City- of Tigard 550 -foot Zone Improvements 10- million gallon Transfer Pump Station rte , ' ' • i ♦ r • Building the footing for the architectural e , screen wall along n �, Bull Mountain Road U.n ct Lt a rs "D'1 -' r s CG Or I Joadcec��. NoiAcc METROPOLITAN AREA COMMUNICATIONS COMMISSION REPRESENTJWG BANKS BEAVERTON CORttEEIUS DURHAf4 FOREST GROVE CASTON HI(1SBORO CITY$LAKE OSVIEGO NORTH P1AIUS RIUERGROVE TIGARD TUAIATiNyAJJD 4YkSHIRGTON COUNTYp, CAME TV FRANCf1I5E REgjULAT1oN • TEIECOMIMMU,NICATIONS AdvICE ANd SUPPORT • Public CoA111uiNicAi oNss NETW (PCN) • TuALATiN VAtkEy COMMUNIry TV March 17, 2011 - SUPPLEMENTAL PACKET TO: MACC COMMISSIONERS FOR 3, 1 FR: BRUCE CREST, ADMINISTRATOR (DATE OF MEETING) RE: FRONTIER COMMUNICATIONS UPDATE Frontier, as I'm sure you recall, announced in January that it planned to raise rates for its cable television service (FiOS video) by a whopping 46% ($30 for the typically - subscribed tier of service) for new subscribers, or for current subscribers not under a price -fixed contract.' Then, on March 4, the company announced it was increasing the charge to install new video subscribers from $79 to an amazing $500, effective immediately (this install rate applies to new subscribers requesting FIOS video service, even if the new order is part of a service package (bundle) with telephone and /or'Internet service). In addition, Frontier announced its "intent" to terminate the cable television franchises for four cities in Yamhill and Clackamas Counties. Obviously, Frontier is re- evaluating its decision to assume the video business that Verizon sold to them just eight months ago. MACC staff and our attorney, Nancy Werner, met with three Frontier representatives Tuesday, March 15 to discuss the company's intent and provide details on its plans for the area. As you might expect, the meeting did not produce much new information. Frontier sent Ken Gaffga, its Oregon General Manager, Steven Crosby, its Senior Vice President for Government and Regulatory Affairs /Public Relations and Kevin Saville, a Frontier attorney. Unfortunately, none of them was able to provide substantive answers to a single question we had We were told that the company is "considering its options" to deliver a video product. The company has not decided what product (if any) it will provide in addition to DirecTV, when it will make that decision, or what that product might cost. We were told that these decisions were being made "at the highest levels" 1 The company also announced their "Free TV' promotion which encourages new subscribers, or those whose contracts have ended, to subscribe to their non - franchised DirecTV option and not pay any costs for this service for the rest of 2011 (so, even the offer of "Free TV' is limited). However, for now, Frontier has not sent current FIOS subscribers the required 30 -day notice of this rate increase, but new FIOS video subscribers are paying the higher rates. Rates for Frontier telephone or Internet service remain unchanged. 20 • t 1815 NW 169th Place Suite 60 Beaer vton Or egon 97006 4886 • Phone (50316 736 F X 6450999.1 Web Slte www maccor org 11 E - -. `.r Yxx _af:4:.., .. .._- : ... -.. r ...�+ v �i ; :[e3 , .m ....:. -OW a s. ._ -,. r45 -v ,_. � A ',(503) .v. -.r .wv ,a s.. -a z.+y..�. v " Celebrating 30Years of Service," 1980 -2010 of the company, but they did not reveal Frontier's thought process, or the options being considered. 2 In addition, Frontier's rep resentatives were unable to provide any information to address any of the questions we asked in our letter of January 20 (attached as a PDF), including explanations for the many assurances that MACC and the jurisdictions received - which is now seem to be at odds with the facts. Consumer Information Current Frontier customers are in limbo. Those with contracts, whether initiated in the last 8 months with Frontier or contracts that date back to Verizon's ownership, will not ._ see any change in their bill until the contract expires. Those choosing to leave Frontier's service before the contract expires are subject to the Early Termination Fee (ETF) in their contract._ Those_ with expiring contracts, we are told, will be urged to switch their service to satellite provider DirecTV. There is no ETF for these customers if they elect to go to another video provider after the end of their contract, including Comcast. Those without a current contract are subject to the $30/month increase — if and when Frontier decides to implement those new prices. Frontier is at least 30 days away from implementing the increase. These customers may weigh their choices at any time and choose any video provider without an ETF. Of course, any new video customers would be subject to the new $500 installation fee. This fee does not apply to other Frontier customers — those taking phone or Internet service — even though there is only marginal extra effort involved in adding video during an installation. If Frontier eventually eliminates its FiOS video services, the MACC Franchise guarantees three months individual subscriber notice; MACC must be notified at least 4 months in advance of termination. If it elects to terminate the MACC Franchise, Frontier must make that announcement between December 7, 2011 and March 6, 2012. MACC Recommendation Should Frontier video customers stay with Frontier? MACC is recommending that customers not subject to an ETF examine their options and make a decision that works for them. Since most Frontier decisions for existing customers have been put off, we suggest that - Frontier customers not rush into any decisions. For new customers, MACC is recommending against initiating a new relationship with Frontier. The $500 installation fee is simply ridiculous and unjustified, particularly when weighed against free or typical $30 installations by Comcast and similar offers from satellite providers. 2 However, Frontier confirmed that the termination clauses for the Yamhill and Clackamas County cities were invoked on March 4 because those franchises have a shorter timeline than the MACC franchises. Our Franchise provides Frontier another year to make that determination. -2- Whatever the benefits of Frontier's FiOS video, we do not believe the service is worth that initial investment. We urge new customers to contact Comcast first, since it provides a locally franchised service in many ways is superior compared to satellite providers. MACC Efforts We continue to believe that Frontier's clear intent is to abandon its franchised cable television responsibilities at some point. We do not know if Frontier intends to substitute something (in addition to their partner DirecTV) in its place. Our meeting on March 15 with Frontier representatives did not shed any light on this. However, Frontier certainly appears to be a company struggling with its responsibilities for video service — despite the assurances that Frontier and Verizon provided MACC throughout the franchise transfer process in 2009 and 2010. Beyond our letter sent to Frontier on January 20, with its still- unanswered questions, MACC is reserving it rights under the terms of the Franchise agreement and law. As you know, local governments have no control whatsoever over the rates a competitive cable operator such as Frontier would like to charge its customers. If Frontier wants to increase its prices to a point that customers are driven away, a regulator cannot interject itself into their "marketing" decisions. However, we have certainly pointed out the deficiencies in their current thinking in our letter and during our recent meeting. If Frontier eventually determines that it would like to terminate its franchises with the MACC member jurisdictions, MACC will address that at the appropriate time. The company's franchises with MACC cities do allow for "early termination ", as long as there is a good faith, commercial reason for taking that action. MACC believes Frontier's market share is more than adequate and as of today, the company could not reasonably invoke the termination clause. If Frontier believes it can legally invoke the termination clause after driving down its own market share through increased rates that will be an issue we will address with the Commission at a later date. We invited Frontier representatives to appear at the April Commission meeting and will present an updated report to you as part of that agenda. We are also preparing an information piece on this subject to send to City /County administrators to share with their elected officials. Included as a PDF: MACC letter to Frontier (January 20, 2011) & Frontier's reply -3- - Cornmunications February 3, 2011 Bruce Crest Administrator Metropolitan Arca Communications Commission 1815 NW 169 Place, Suite 6020 Beaverton, Oregon 97006 -4886 RE: MACC Letter dated January 20, 2011 Dear Mr. Crest: Frontier is in receipt of an electronic copy of the Metropolitan Area Communications Commission (MACC) letter dated January 20, 2011, in which MACC expressed concern about Frontier's recently announced FiOS TV /video rate increase. While Frontier recognizes that the MACC is interested in any Frontier FiOS video price increases and alternative offerings Frontier provides to its customers, Frontier respectfully notes that the MACC does not have authority to regulate the rates Frontier may charge fo.r FiOS video service, nor does the MACC have authority to regulate Frontier's commercial relationships with content providers. Accordingly, Frontier reserves the right to decline to respond to inquiries directed to topics that are beyond the MACC's jurisdiction and may be competitively sensitive. Furthermore, Frontier objects to the MACC's January 20 letter to the extent that it contains characterizations and questions that misstate facts and conclusions or are otherwise misleading. Notwithstanding the objections and limitations outlined above, in the spirit of cooperation, Frontier is prepared to schedule an informal meeting with designated officials of the MACC to discuss the concerns raised in your letter. If you have questions, please contact me. Sincerely, Steven Crosby Senior Vice Preside Government & Regulatory Affairs and Public Relations M METROPOLITAN AREA COMMUNICATIONS COMMISSION REPRESEN11ftG BAH X $'BEAYERIO1FCORHEItUS_DUR1&M 0 /1ESTCROIE GAS1014 IHIE$60R010GCItY,IAKFOSYIEGO I Il1YAt1XIE flORTHPIAftts RNERGROVET(GARD IUAIATIU ANOWASHHJGTONCOUhf Y Cable TV Forvciiisc REC j ulaTioN • TdEeostawnlcArioNs Advice ANd 5uppoRr • Pub CoM\iu c.alloNs NE_rnoRk (PCri) • Tt WIN VAIIEy Cosl\luNiry TV January 20, 2011 VIA USPS and Email Steven C. Crosby Senior Vice President Government and Regulatory Affairs and Public Relations Frontier Communications 9260 E Stockton Blvd Elk Grove, CA 95624 RE: JUSTIFICATION FOR FRONTIER RATE INCREASES Dear Mr. Crosby: We are writing to protest Frontier Communications' January 4, 2011 surprise announcement that it will raise video subscriber rates by $30 /month — approximately 46% for most services. According to the two notices we received (on January 4 and January 7), Frontier clairns these rate increases are due to "programming costs." While Frontier is free to make any marketing decisions it deems wise and considered, it cannot truthfully blame third - party programmers for a raise increase of this magnitude. We are familiar with the rate structure of programmers and have some experience with other small -scale cable operators. A 46% increase in rates is unjustified on its face. As just one example, there is no case to be made that programming costs for the thirteen local commercial channels on Frontier's "Local" tier of service have increased 50 %. During the review of Verizon's request to transfer its cable franchise to Frontier, MACC and its partner Oregon franchising authorities had significant concerns about Frontier's technical and financial ability to continue to provide cable services to customers at competitive prices. In response to our questions, Verizon and Frontier provided many assurances that Frontier could and would do so. The approval of the transfer was based in large part on these assurances, which were incorporated into the conditions of approval of the transfer. Frontier's rate increase announcement raises doubts about the sincerity of these assurances. 161513W 460th Place Suite 6020 A c Beaverton Oregon 07006 4886 • Pilone {5031645 7365 • FJU(i503f;645 0990 ' Site wwwmnaccororcg 4 " Celebrating 30Years of Service," 1980-2010 Please review the following statements and certifications by Frontier and provide answers to the questions below. We request that your answers be provided to us no later than February 1, 2011. On March 31, 2010, Kathleen Q. Abernathy, Frontier's Chief Legal Officer and EVP, Regulatory and Government Affairs, provided MACC with a certification that the company had secured retransmission rights to the nine Portland area local broadcasters and that it had commitments for the majority of all programming for more than two years. This certification was a condition of the MACC member jurisdictions' approval of the Transfer of the cable television franchise from Verizon to Frontier. 1. Has Frontier renegotiated the commitments and programming rights Ms. Abernathy said your company had secured Just last March? If so, what specific programming- costs- have - increased- and - when -do -those take effect ? If please provide a basis for Frontier's "programming cost" rationale for raising rates, especially for the "Local" tier of service. On September 25, 2009, as part of the formal Transfer review, and in response to MACC questions regarding Frontier's commitment to video, Frontier stated: "Frontier will be able to secure the rights ... due to: (1) the quality of the resources on the Frontier content rights acquisition team; (2) the positive relationship that Verizon currently has with the content providers; and (3) collaboration between Verizon and Frontier. ...Frontier is pursuing relationships directly with the content owners where (1) a direct relationship with the content owner is mandated by the content owner; (2) Frontier has existing relationships with the content owners; or (3) the economics of the relationship are significantly more favorable than working with an aggregator." Frontier also stated publicly that they had been able to "assume or transfer" most local broadcaster retransmission agreements held by Verizon. Frontier's press spokesperson, Stephanie Beasley, quoted in the Oregonian on January 5, 2011, blames the rate increase on Frontier's "small footprint" and an inability to "spread [costs] out over a much larger customer footprint." 2. Please reconcile the statements above — what did Frontier fail to anticipate when addressing the Commission's questions about the company's ability to manage and adequately budget for a cable system? 3. Bend Broadband, an Oregon system providing a similar level of programming and services as Frontier, is able to manage its costs and keep subscriber rates at or below the range of large cable operators and significantly below those that Frontier has announced. Please explain why Frontier's programming costs are so significantly different from other operators. 2 4. What steps has Frontier taken to secure reasonable programming costs and how well do those efforts match up with the above statements? On September 15, 2009 MACC asked: "Wili_Frontier commit to maintaining the MACC- area Cable System as a Cable System for the duration of the franchise term, not replacing it in any way or offering a non -cable product alternative cable services ?" Frontier's response: "Frontier intends to provide a robust portfolio of video products and services over the Franchisee's state of the art FTTP Network to subscribers in those jurisdictions and has made substantial progress as described above. Frontier believes that its commitment to assuming the cable franchises amply demonstrates its commitment to providing Cable Service in the relevant Service Now, Frontier Is clearly trying to move subscribers to DIRECTV through its enormous rate increase and by offering them' free TV" (in reality DIRECTV) for one year. 5. What circumstances or business decisions have changed since these comments were made? How can Frontier reconcile its stated commitment to a "robust portfolio of video products" over the FTTP Network and continuing to provide a Cable Service with the rate increase and promotion of DIRECTV? 6. Was the company's intent all along to capture Verizon's customer base and migrate them to DIRECTV? No more than 18 months ago, Frontier made these statements on the record: On September 15, 2009 MACC asked (in part): "If numbers of dissatisfied subscribers move their services to other providers ... how will that affect Frontier's ability to maintain an ongoing level of service to those subscribers who remain, without significant rate increases? Similarly, what level of cable service subscribership does Frontier project it needs to stay financially viableT Frontier's Response: "This question is based on the assumption that programming costs will exceed customer revenues. Frontier respectfully disagrees with this assumption. ... Frontier has no intention of causing a materially adverse effect and expects to grow the video business. Frontier has not made projections of minimum service subscribership in terms of financial viability. Frontier does not intend to lose customers." 3 On September 15, 2009 MACC asked: Can Frontier absorb costs imposed by programmers (over those charged to Verizon) without adversely impacting customer rates or their existing long term subscriber contracts ?" Frontier's Response: "Yes. The retail price of programming is constrained by the competitive market and does not have a lock -step relationship with programming costs. While initially Frontier's programming costs might be higher than Verizon's, Frontier believes it can effectively manage all areas of its cost structure and can compote effectively. Frontier has a century long record of negotiating contracts and successfully managing its costs and retail prices, ultimately benefiting its customers." "Frontier will offer comparable or identical programming at competitive prices." "Video service over the FTTH network is the most robust and competitive video offering available and Frontier's business plan contemplates the continued offering of this stale -of -the -art video service." 7. Does Frontier still have any plans to grow its cable service business? Is the provision of cable service still part of Frontier's business plan? During the Transfer hearings and in multiple filings in 2009, Frontier was exceptionally proud of its "Local Engagement Model" in which local managers had significant authority over service delivery. 8. How were MACC area Frontier employees and customers engaged in making the determination to promote DIRECTV as a better alternative to Frontier's current service? Frontier's customers made thoughtful commitments to either retain or switch to Frontier based on these and other assurances that the company was a new, legitimate, professional and competent service provider. Based on the quick reversal of its opinion of its ability to manage cable services, why should your customers — or any new customers — be confident in Frontier as a telecommunications provider? MACC instigated, negotiated, nurtured and approved a franchise with Verizon in 2007. Frontier acquired that franchise in 2010: The MACC jurisdictions and the customers we represent expect the benefit of the bargain made with your company and Verizon. However, Frontier's recent decision to place a significant and unjustified rate increase on its customers, along with the incongruity of Frontier's justification for that increase 4 • against the statements made in 2009 and 2010, makes us question whether Frontier has, or ever had, a good faith commitment to fulfill the terms of the franchise. We welcome your responses and any additional comments the company wishes to provide that justify or explain its January 4 decision. Sincerely, Bruce Crest Administrator C. MACC Commissioners MACC Jurisdictional Managers /Mayors Nancy Werner, MACC Legal Counsel Fred Christ/Darryl Willis, MACC Interested Parties • 5