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City Council Minutes - 01/18/2011 . ° City of Tigard Tigard Workshop Meeting - Minutes TIGARD CITY COUNCIL MEETING DATE/TIME: January 18, — 6:30 p.m. —Workshop Meeting MEETING LOCATION: City of Tigard—Town Hall, 13125 SW Hall Blvd., Tigard, OR 97223 1. WORKSHOP MEETING 1.1 At 6:32 8 Call to Order-City Council 1.2 Roll Call Present Absent Councilor Wilson ✓ Council President Buchner ✓ Mayor Dirksen ✓ Councilor Henderson ✓ Councilor Woodard ✓ 1.3 Pledge of Allegiance qq 1.4 Council Communications &Liaison Reports Mayor Dirksen noted that Council was sent a packet of information regarding a JPACT meeting held last week. He said two resolutions that will be going to the Metro Council this week. 1.5 Call to Council and Staff for Non-Agenda Items—Mayor Dirksen had a non-agenda item he wanted to propose. He said approximately one month ago Councilor Wilson sent Council an e-mail proposing that Tigard Council approve a resolution to send a letter encouraging Portland rejoin the Joint Terrorism Task Force QTTF). He said this hadn't been discussed but if Council was amenable,a resolution could be prepared for a discussion and potential approval at the January 25,2011 meeting. Council President Buchner said, "I don't think we should interfere in Portland's business." Mayor Dirksen said he understood Councilor Buchner's feelings but used the example of a recent gathering in downtown Portland that was at risk, said not all of the people attending were from Portland. Tigard residents could have been there. He said this crosses boundaries and there needs to be unified cooperation and coordination across the region. He noted that the Washington County Sheriff s Department takes part in the JTTF. TIGARD CITY COUNCIL MINUTES —JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 1 of 9 Councilor Wilson said he could attest to the fact that Tigard residents were there at the tree lighting in Portland. He said, "They are asking for public testimony and we are members of the public so I don't see any problem with that." Mayor Dirksen said he heard a general consensus around the table to move forward with at least considering this. He directed staff to come up with some language Council could consider at their next meeting. 2. BUDGET COMMITTEE MEETING 6 Finance and Information Services Director LaFrance introduced two new Budget Committee members: Councilor Woodard and alternate member Melody Graeber. New regular member Christopher Henn was unable to attend tonight. Also present were citizen Budget Committee members Cameron James, Rick Parker and Dan Goodrich. Other members present were Council President Buchner, Councilor Henderson, Councilor Wilson,Mayor Dirksen and City Manager Prosser. Finance and Information Services Director LaFrance outlined what he wanted to cover in the meeting. o The Comprehensive Annual Financial Report (CAFR) o Second quarterly financial report o Initial General Fund forecast and budget instructions given to City departments o Presentation recently given to the bond rating agencies The Comprehensive Annual Financial Report(CAFR) Assistant Finance Director Smith-Wager distributed to Budget Committee members a copy of the 2010 Comprehensive Annual Financial Report (CAFR) and led a discussion on the purpose of a CAFR and the status of the audit. She said the City was audited by Grove, Mueller and Swank. She said auditors provide reasonable assurance that the financial statements are not materially misstated. She discussed state requirements audits must cover including banking at specific banks, Oregon Budget Law, insurance coverage, public contracting laws, and that restricted funds (such as the Gas Tax Fund) are being spent in compliance with State laws. Internal controls are documented and tested. Assistant Finance Director Smith-Wager said City was notified in September that Tigard received the Government Finance Officer's Certificate of Achievement for Financial Reporting, for the twenty-fifth consecutive year. Mayor Dirksen noted that while the financial audit is not a performance audit, the City has solicited performance audits of most primary departments, such as Police and Library,in the past several years. City Manager Prosser said there was also a management review of the engineering function which led to reorganization. Council President Buchner asked if the City would be doing any other performance audits in the upcoming fiscal year. City Manager Prosser said funds were looking a little tight so he did not know. Mayor Dirksen asked which departments had not had an audit recently and suggested the Public Works Department may be due. City Manager Prosser agreed that it would be the most appropriate department to look at next. Second quarterly financial report Council President Buchner commented that the Finance Department had to cut off the first quarter early for their first quarterly report, and asked if they had to do that again for the second quarter report. Finance and Information Services Director LaFrance said they had less than a week to prepare; the timeline will always be short. He noted that it was questioned last time whether staff should keep them on the schedule or allow time for extensive analysis? He said this high-level document is self-explanatory but the extra report requested by the TIGARD CITY COUNCIL MINUTES —JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 2 of 9 Budget Committee at the last meeting was not included. He said staff is continuing to work on that report (which includes data from last year) but changes in account codes and financial systems have made it difficult to achieve a consistent format that is a high-level summary. He said staff is expending extra effort making sure it is correct. Finance and Information Services Director LaFrance discussed the document and explained to new members how to read the document. He discussed highlights of the report and pointed out some red-flagged items: o Seasonality of building revenues: Third quarter is usually the lowest quarter. It should build back up in the spring. o City gas tax revenues are below what was budgeted. He explained that the State is slower in their turnover of our revenue,Budget Committee Member Buehner commented that this seemed a little worse than the normal receivable time frame and asked if staff knew the amount the State is holding. Assistant Finance Director Smith-Wager said no,but previous City gas tax share checks average $50,000165,000 per month. o Sanitary Sewer revenue is below budget and the City's forecast may have been too ambitious. Mayor Dirksen said this surprised him as the City should have a pretty good handle on how many sewer customers there are and what they should be paying. Finance and Information Services Director LaFrance replied that while Clean Water Services has raised rates 5% the City has seen that conservation measures are offsetting the 5%rate. City Manager Prosser clarified for Budget Committee Member Parker that charges for services including planning fees, zone applications,and land partition applications is different money than licenses and building permits. Budget Committee Member Parker asked if this was seasonal as well and whether the City was at risk of losing an FTE. City Manger Prosser said there is seasonality with this fund and it is lower than usual so it will bear some watching. Finance and Information Services Director LaFrance said lower planning fees received can be an indication of work load and that would be a better argument for looking at staffing. L Initial General Fund Forecast and Budget Instructions Finance and Information Services Director LaFrance distributed to Council the first draft of the general fund forecast. He said in general, this is a continuation of what Council was shown last year when the City adopted a budget for 2011 that would be affordable for two years. He said the goal was to have a fiscal year 2012 beginning fund balance that was $5.5 million or higher. He said that after pulling everything together staff is forecasting a 2011 ending balance of$5.5. He said the ending fund balance at the end of fiscal year 2012 that is higher than 5.5 million and, if a status quo budget is maintained, there should be an ending fund balance in 2013 of nearly $5.5 million. This is based on assumptions that may change due to new information including budget requests, franchise fee changes, etc. The purpose of this forecast was to tell the City departments what kind of budgets they could build. He showed a PowerPoint slide labeled Budget 2012 Preparation Guidelines showing what Departments received to help them prepare their budgets, which are due tomorrow. Finance and Information Services Director LaFrance said all General Fund, Central Services and Gas Tax departments were asked to allocate the same number of staff and the same number for the rest of their expenses as they used last year. Departments were also asked to prepare an additional budget showing 5% cuts in Personnel,Materials&Services,and Equipment. If new information takes a downward trend, the City may need to look at cuts in these funds. All other departments were asked to prepare budgets with no increase in FTE's unless strongly justified, and their total expenses are limited to total resources. Councilor Woodard said, "I think you are doing a good job on this. When I saw this come through and that you were asking for a 5%reduction in each department,including Council's,I thought that was a good thing." TIGARD CITY COUNCIL MINUTES —JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 3 of 9 Bond Rating Agency Presentation Finance and Information Services Director LaFrance showed Council the PowerPoint developed for the bond rating agency presentation that he, Assistant Finance Director Smith-Wagar and Financial Consultant Pat Clancy presented to Moody's and Standard & Poors in San Francisco. He noted that the City has not had a bond rating since 1993. Park bonds are imminent so this was time to get a good bond rating. He said, "This is the only time an independent third-party looks at the City's finances are managed. While audits ensure accounting practices are followed and controls are met, they do not evaluate management of the finances, like bond rating agencies do." Council President Buehner asked what specific questions were asked. Finance and Information Services Director LaFrance said Moody's wanted to know about management and the process the City went through to get the budget reductions last year. They even referred to the Mayor's Corner in the Cityscape. He said Standard and Poors'questions were more data driven. In response to a question from Councilor Wilson, Finance and Information Services Director LaFrance said they travelled to San Francisco because it was recommended that they present this in person. He noted that staff will meet in person again with the rating agencies regarding the upcoming water bonds. Finance and Information Services Director LaFrance summarized by saying it has taken many years of sound financial decisions by staff and city management to get to this place. Standard and Poors and Moody's will be looking at the City's financial records as a part of their service and the City will need to maintain this. City Manager Prosser commented that it takes a long, responsible history to get bond ratings like these. He said, "We have a very engaged citizenry who is supportive of what we do. To get an upgrade in a down economy is a pat on the back." He noted that when the City goes back to the bonding agencies for the water bonds, it will be on the strength of the water enterprise which typically may be rated a bit lower. Finance and Information Services Director LaFrance said at that time Moody's may travel to Tigard to take a look. City Manager Prosser said he had a conversation with Pat Clancy who praised Finance and Information Services Director LaFrance and Assistant Finance Director Smith-Wagar for an excellent job. Mayor Dirksen complimented them on their overview information. In response to a question from Councilor Wilson, Finance and Information Services Director LaFrance said bond bids are due on January 25, 2011. Computers will crunch the data for the parks bond and for refinancing the library bond if interest rates are lower. He said there will be a series of bonds: 2011 Series A —Parks, and 2011 Series B — Library. Councilor Wilson asked, "If we get a better rate on the library bonds, does the assessment rate go down?" City Manager Prosser said the debt service would go down. Finance and Information Services Director LaFrance suggested a Cityscape article would be a useful tool to communicate interpret how these General Obligation bonds will appear on citizen's property tax statements. Councilor Wilson asked if the $17 million bond included interest. City Manager Prosser said it didn't; the interest is spread over the years of the bond and is added to the bond amount. Councilor Henderson asked how this will be shared this with the public. Finance and Information Services Director LaFrance said he has a press release. Assistant City Manager Newton passed around a copy of the bond rating press release to Council. TIGARD CITY COUNCIL MINUTES —JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 4 of 9 Finance and Information Services Director LaFrance said the Budget Committee will receive a third Update on at the April 19 Council Workshop,but proposed that the third quarter report be delivered to Council during a Budget Committee meeting in April. Council agreed. He said the budget document would be delivered to Committee members one and a half weeks prior to the Budget Committee meeting. He said training will be offered for new members. 3. TRANSPORTATION GROWTH MANAGEMENT HIGH CAPACITY TRANSIT LAND USE STUDY KICKOFF Senior Transportation Planner Gray introduced this item. She was joined by Associate Planner Daniels, Redevelopment Project Manager Farrelly, and Metro Senior Planner Gardner, who was present to kick off the High Capacity Transit Land Use Study. Senior Transportation Planner Gray presented a PowerPoint slide showing how Tigard's High Capacity Land Use Plan is one of five separate plans. She gave the overall context of these separate, but related, plans. They include land use plans for Portland and Tualatin, an Alternatives Analysis for High Capacity Transit, and the I- 5/Pacific Highway 99W Corridor Refinement Plan. Language will be kept general until the HCT type and alignment are selected. rJ She said Tigard is starting with land use so the City can make sure transit investments and accommodate growth meet the desires of the citizens who live here, rather than starting with a transit alignment and making the community development fit around it. She said staff wants to begin by finding out how this community wants to grow and then by having transit serve that. She acknowledged that this is an unusual way to do it but said it is good for Tigard because we can make sure our community objectives are met first. Council President Buchner asked if Tigard is going to be coordinating with various land use plans done by neighboring cities. Senior Transportation Planner Gray replied that has already begun with some regional coordinating meetings and there will be a lot of effort going into coordinating with adjacent jurisdictions. Senior Planner Gray said Tigard's High Capacity Land Use Plan is one of several plans along the SW Corridor. She described Tigard's project, funded by the State Transportation Growth Management (TGM) grant and jointly awarded to Tigard and Metro. She said the contract ends January 2012,although sometimes projects like this require extensions. She said the project outcome includes a conceptual Station Community Plan and the identification of six to ten potential locations and "typologies." She defined typology as a transit-oriented station community type, noting that there will be different types within the City. She described key project tasks and public involvement activities. She said the Final Concept Plan will be presented at a joint Planning Commission/Council Workshop,with recommended Comprehensive Plan,zoning map and Code changes. Councilor Woodard asked Senior Transportation Planner Gray what she saw as the biggest challenge. In reply, Senior Transportation Planner Gray said,"We simply have a capacity constraint." She is planning a discussion on this topic for Planning Commission and could also present this to Council. Councilor Woodard said he would be very interested in that discussion. -0 Senior Transportation Planner Gray said there is broad recognition that the Transportation Planning Rule is no longer achieving its desired outcome. City Manager Prosser said Tigard has already come up against the TPR in its downtown Tigard Triangle area where high-density development is planned. ODOT told the City that they could not adopt the zoning they TIGARD CITY COUNCIL MINUTES -JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 www.dgard-or.gov I Page 5 of 9 wanted due to capacity restrictions. Mayor Dirksen added that Tigard isn't the only one bumping up against the TPR and changes to it are a top legislative priority of the League of Oregon Cities and Metro. Council President Buchner said the TPR discussion should be held at a joint Planning Commission/Council meeting. She said she was also concerned that King City should be kept in the loop. She suggested a joint meeting of both Councils. City Manager Prosser said their Council would need to talk to their City Manager about setting up a joint meeting. Senior Transportation Planner Gray said King City's City Manager has been included in some discussions already. Councilor Wilson asked, "When ODOT evaluates whether something would impact their facilities — do they assume full build-out? We know that full build-out never happens. Could there be a compromise where the first projects built absorb density and perhaps it is lowered with subsequent projects?" Senior Transportation Planner Gray replied that one of the very important outcomes of this work is that we will be able to identify certain locations where we think growth will happen first and start looking at adjusting the TPR for smaller areas rather than the entire Triangle. Mayor Dirksen asked about temporal zoning, where the first five Triangle projects would get a certain zoning and the next five would get another zoning. Senior Transportation Planner Gray said, "If we were to try and do it that way, we would probably end up with a trip cap for the entire Triangle...That is the first thing that would come to mind ...kind of messy." Mayor Dirksen said the issue is that ODOT has a formula to calculate capacity and many are challenging the validity of the formula. Council President Buchner said another issue is the density directives coming from Metro. Senior Transportation Planner Gray said she is optimistic about the TPR because everyone agrees about the problem. Council President Wilson said that in the past alignments were determined first, which was inexpensive and more politically feasible. He asked, "What happens if we come up with a route that is not the cheapest or the most politically feasible?" Metro Senior Planner Gardner said criteria has changed. She said in the last 30 years a lot of alignments have gone in the cheapest or most politically feasible locations due to the Federal Transit Administration rules. She said those rules have started to shift. She said there was a movement from EPA,HUD and the DOT for livability, so all grants Metro applied for relating to the SW corridor had to show how any improvements in this corridor would meet livability criteria. City Manager Prosser said when early lines were being designed, planners looked at construction costs;not the life cycle costs. He said they are taking a long term sustainable view of the cost of this project. Council President Buchner said, "99W doesn't work now. One alignment option is running it down that right of way, which would be a nightmare. How can we get this information to whomever needs to hear it. It just isn't feasible." Senior Transportation Planner Gray said she didn't know what her regional partners would say but she didn't see any strong arguments to remove existing capacity on 99W. Metro Senior Planner Gardner said, `By doing this HCT Land Use Plan you're giving directive, or informing, the alternatives analysis process. And so,the Tigard's `will'will be expressed through the results." Senior Transportation Planner Gray discussed the public involvement activities. She said there is a project website. Videotapes of the Citizen Advisory Commission meetings will be posted on the web. In response to a question from Councilor Wilson regarding the next steps, Metro Senior Planner Gardner said Metro just received $6 million to start the multi-modal transportation planning for the SW Corridor, and received $2 million to begin the alternatives analysis. Over the next two-three years they will be looking at existing conditions and then in three-five years will be looking at transit alternatives in the SW Corridor. She TIGARD CITY COUNCIL MINUTES -JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 6 of 9 said as part of that process, they will review the results of Tigard's HCT Land Use Plan to help inform what mode and alignment are chosen. Councilor Henderson asked what lessons were learned from the Interstate Avenue project. Metro Senior Transportation Planner Gardner said she and the Project Manager have been reviewing over 30 plans to get good ideas for alignments and look at what has worked well and what has not. City Manager Prosser said just by starting with land use plans is an example of how we have learned from past projects. Redevelopment Project Manager Farrelly distributed the final version of the Tigard 99W Urban Design Vision done by University of Oregon's Graduate Architectural School. He said an executive summary is on the web. He noted that this document is a tool in communicating with stakeholders but has no policy implications. City Manager Prosser said the professor who led this project gave a presentation about this project in Germany and asked if staff had heard any feedback. Redevelopment Project Manager Farrelly said he would find out. At 8:34 pm Mayor Dirksen called for a 10-minute break. Council reconvened at 8:46 pm. 4. REVIEW OF 2011-12 CITY COUNCIL BUDGET REQUEST Assistant City Manager Newton introduced this item. She said staff prepared a Council budget that holds the line but to match other City budgets, a 5% cut is needed. She said there is an easy reduction of$10,000 since Railvolution will not be held in Portland this year. Mayor Dirksen said at the time his stipend was raised, the mayoral travel budget was also raised. He has not used all of it. He offered to reduce his travel budget from $9,000 to $6,000. Assistant City Manager Newton countered that $6,000 may be too tight and suggested it be $7,000 or $7,500. Councilor Wilson suggested reducing councilor travel from $5,000 to $4,000. He noted that the League of Oregon Cities Conference will cost less because it is in Portland (no hotels or airfare required). Councilor Henderson noted that he'd asked for a breakdown of what each Councilor has spent on travel and training in past years. Assistant City Manager Newton said the records may not have been kept from years ago because there is no requirement to keep them. Current Councilor expenditures were figured and that material was distributed to Council. Mayor Dirksen said it was difficult to ask City departments to cut 5% but not reduce Council's budget by the same amount. City Manager Prosser clarified that Council wanted to budget the lower travel amounts of$4,000 each for Councilor travel and$7,000 for the Mayor's travel. 5. DISCUSS DRAFT 2011 CITY COUNCIL GOALS City Manager Prosser noted that Council didn't talk about mid-range and long-term goals during the December 30 Council Goal Setting and asked if Council wanted to maintain these goals. Council President Buehner said nothing has changed with the long-term goals and she recommended keeping them. Councilor Wilson agreed and said the City ought to accomplish something in the current year towards all five-year goals. Discussion was held on what could be done in 2011 about urban renewal along Pacific TIGARD CITY COUNCIL MINUTES -JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 7 of 9 Highway. Mayor Dirksen said the corridor study will go a long way towards work on that goal. City Manager Prosser cautioned that work load also needs to be considered. Councilor Wilson said, "Explore means take a brief look at it and figure out what steps need to be taken. Explore doesn't mean that we've made a decision to do it... You would have some small task that would help inform the decision." Council President Buchner said she would like to add facility needs to the list (finding a new location for Public Works). Mayor Dirksen mentioned that he has held a few discussions with the National Guard and they are looking at vacating the armory and have asked if the City would be interested in their property. Councilor Henderson said that to him, brainstorming ideas 1-6 (from the Council Goal Setting Session) are really five-year goals. Mayor Dirksen suggested that the five-year and long-term goals from last year be retained because none of them has changed other than progress has been made on some of them. Councilor Wilson and Councilor Buchner agreed. City Manager Prosser said at the January 25 meeting, Council goals will be scheduled for consideration and approval.They will include the 2011 goals plus five-year goals and long-term goals. Mayor Dirksen referred to a few minor wording change suggestions. Councilor Wilson and Council President Buchner said these changes were acceptable. 6. COUNCIL LIAISON REPORTS Council President Buchner said she received her Silver Certificate from the Leadership Training Council. 7. NON-AGENDA ITEMS - See Item 1.5 above. 8. EXECUTIVE SESSION: At 9:14 City Manager Prosser announced that the Tigard City Council would be entering into an Executive Session under ORS 192.660 (2) (f) to consider records that are exempt by law from public inspection. The Executive Session ended at 9:57 pm. 9. ADJOURNMENT At 9:58 PM Mayor Dirksen moved for adjournment. Motion seconded by Councilor Henderson and all voted in favor. Yes No Councilor Wilson ✓ Council President Buehner ✓ Mayor Dirksen ✓ Councilor Henderson ✓ Councilor Woodard ✓ TIGARD CITY COUNCIL MINUTES -JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 www.dgard-or.gov I Page 8 of 9 Carol A.Krager,Deputy City Rec rder Attest: 4ZL Council President,6ty o Tigard -M ate_ O I 1 Date I:ADM\CATHM M\2011\110118.doc TIGARD CITY COUNCIL MINUTES -JANUARY 18, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov Page 9 of 9