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CITY COUNCIL REGULAR MEETING MINUTES
April 15, 2008
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Council President Turchi called the regular City Council meeting to order at 6:00 pan. on April 15,
2008, in the City Council Chambers, 380 A Avenue.
Present: Councilors Turchi, McPeak, Hennagin, Groznik, Jordan, and Johnson; Mayor
Hammerstad was excused
Staff Present: Alex McIntyre, City Manager; Evan Boone,Deputy City Attorney; Robyn Christie,
City Recorder; Jane Heisler, Public Affairs Director; David Donaldson, Assistant
City Manager; Jeff Munro, Parks Superintendent; Elizabeth Papadopoulos;
Maintenance Director; Sidaro Sin, Senior PIanner; Joel Komarek, City Engineer
Youth Council: none
3. PRESENTATIONS
Jimmy Thompson,Troop 230, was present and working toward his Communications Merit Badge.
4. CONSENT AGENDA
Councilor Jordan reviewed the consent agenda.
4.1.1 Award of Contract for temporary employee service
Action: pulled for discussion
4.1.2 Resignation of Colin Cooper from the Planning Commission
Action: Accept resignation with regret
4.2 RESOLUTIONS
4.2.1 Resolution 08-25, approving an Intergovernmental Agreement with Alto Park Water
District for Fire and Emergency Medical Services
Action: Adopt Resolution 08-25
4.2.2 Resolution 08-26, approving an Intergovernmental Agreement with Lake Grove Rural
Fire Protection District for Fire and Emergency Medical Services
Action: Adopt Resolution 08-26
4.3 APPROVAL OF MINUTES
4.3.1 February 12, 2008, special meeting
4.3.2 February 19, 2008, regular meeting
4.3.3 February 20,2008, special meeting
4.3.4 March 4, 2008, regular meeting
Action: Approve minutes as corrected
END CONSENT AGENDA
Councilor Groznik moved to approve the consent agenda. Councilor McPeak seconded the
motion. A voice vote was taken, and the motion passed with Council President Turchi,
Councilors Groznik,Jordan, Hennagin, Johnson, and McPeak voting `aye.' (6-0)
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April 15, 2008
5. ITEMS REMOVED FROM THE CONSENT AGENDA
4.1.1 Award of Contract for temporary employee service
Mr. Munro explained this service would assist regular employees in mowing, landscape
maintenance, trash removal, event staffing, and things of that nature on a seasonal, short-terns basis.
The City prepared a request for proposals (RFP) for services up to 13,500 hours or about 16
workers over a 6-month period. Staff found that "The Personnel Department"provided the best
combination of rates and services and recommended Council award the contract. The funds were
budgeted under miscellaneous professional and technical services. He discussed the cost difference
between the 2 respondents and the crew management process.
Councilor Jordan moved to award a temporary employee service contract to "The Personnel
Department" up to $185,000 to provide temporary workers to park Maintenance and
Maintenance Services Division. Councilor Johnson seconded the motion. A voice vote was
taken, and the motion passed with Council President Turchi, Councilors Groznik,Jordan,
Hennagin, Johnson, and McPeak voting `aye.' (6-0)
6. CITIZEN COMMENT
None
7. PUBLIC HEARINGS
7.1 Ordinance 2509, an ordinance annexing to the City of Lake Oswego one parcel
comprising approximately 0.32 acres at 4800 Upper Drive; declaring City of Lake
Oswego zoning pursuant to LOC 50.05.025; and removing the parcel from certain
districts (AN 08-0001)
Mr. Boone reviewed the hearing procedure. Councilor Johnson announced a relative owned
property near the subject site but did not believe that would influence her decision. No other
member of Council declared any ex parte contacts, site visits, bias, or conflicts of interest. No
member of the audience challenged any Council member's right to consider the application.
Mr. Sin provided the staff report. The annexation was one parcel on Upper Drive with a single-
family residence, and no right-of-way was proposed for annexation. The zoning designation was R-
7.5, low-density residential. He indicated the property on an aerial map and noted the single-fancily
residence had been vacated since early 2007 due to a failing septic system. The new property
owner wished to annex in order to rehabilitate the house and occupy it or sell the parcel. He noted
parcels which had been annexed in January. He reviewed the annexation criteria including
adequacy of City services and the subsequent withdrawals. He explained the right-of-way was
included in previous annexations.
As no wished to testify Council President Turchi closed the public hearing.
Councilor McPeak moved to adopt Ordinance 2509. Councilor Jordan seconded tine motion.
A voice vote was taken,and the motion passed with Council President Turchi, Councilors
Groznik,Jordan, Hennagin,Johnson,and McPeak voting `aye.' (6-0)
7.2 Ordinance 2510, an ordinance annexing to the City of Lake Oswego one parcel
comprising approximately 0.91 acres at 13560 Fielding Road; declaring City of Lake
Oswego Zoning pursuant to Lake Oswego Community Development Code 50.05.025;
and removing the parcel from certain districts (AN 08-0002)
No member of Council declared any ex parte contacts, site visits,bias, or conflicts of interest. No
member of the audience challenged any Council member's right to consider the application.
Mr. Sin provided the staff report. This annexation was north of Foothills Park and east of Hwy 43.
He indicated the property on a map. The zoning designation for the property was R-10 and had a
Willamette River Greenway Overlay. The annexation would not create a new island. The parcel
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April 15, 2008
was also within the City's flood management area. There was a single-family residence, but Mr.
Sin understood it had been demolished. The property had mature trees and sloped toward the
Willamette River. He reviewed the annexation criteria including adequacy of City services and the
subsequent withdrawals. The City did not have any plans at this time for surface water management
improvement projects. The sewer was owned by Portland. He discussed the limited conditions
under which one could build in the 100-foot buffer area in the Willamette Greenway.
Mr. Boone discussed mitigation requirements for single-family residences in the Greenway. There
were a number of uses permitted which would be reviewed by the Development Review
Commission (DRC) as a development within the Greenway Management Plan but not as a
conditional use.
Mr. Sin understood the owners and applicants had a pre-application conference on this property for
a single-family residence so had some familiarity with the requirements.
Councilor Jordan assumed, since there were no stormwater services and the property sloped to the
River, that Lake Oswego would require on-site treatment.
Mr. Sin believed there were several options. The first was to connect to available services. In this
case there were some intermittent services along Fielding Road, and if a connection were made,
properties further along the road would be impacted. He understood the engineering department
was looking at discharging runoff into the River or on-site detention such as drywells, and this
would be worked out with the applicant.
Councilor Groznik understood upon annexation stormwater management would be subject to Lake
Oswego regulations and that the stormwater would be taken care of one way or another.
Mr. Sin explained the City had 3 drainage basins: Oswego Lake and the Tualatin and Willamette
Rivers. This was all subject to engineering department review. A water quality standard would be
considered before discharging into the Willamette.
Mr. Boone added under the Willamette Greenway Act one of the significant issues was protection
of fish and wildlife habitat which added an overlay to the drainage standard on mitigation and
protection of the resource.
Mr. Sin discussed notification requirements.
Council President Turchi commented on the need to generally address stormwater issues in the
area.
As no wished to testify Council President Turchi closed the public hearing.
Councilor Jordan moved to adopt Ordinance 2510. Councilor Johnson seconded the motion.
A voice vote was taken, and the motion passed with Council President Turchi, Councilors
Groznik,Jordan, Hennagin,Johnson, and McPeak voting `aye.' (6-0)
8. INFORMATION FROM COUNCIL
8.1 Councilor Information
Councilor McPeak discussed online information available on the upcoming election.
8.2 Reports of Council Committees, Organizational Committees, and Intergovernmental
Committees
Councilor Johnson provided information on her attendance at Clackamas County Community
Partners Wastewater-Task Force that was Iooking at regional solutions.
Councilor Jordan reported on her attendance at the Metro Policy Advisory Committee (MPAC)
meeting and Clackamas County's Urbanization Forum. She discussed Metro Transportation
Improvement Program (MTIP) flexible funding which was limited to less than $68 million and
reduced the amount of local project funding. There were more projects than funding available. The
Urban and Rural Reserves Committee met and reviewed the maps.
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April 15, 2008
Council President Turchi reported on the Regional Emergency Management meeting.
9. REPORTS OF OFFICERS
9.1 City Manager
Mr. McIntyre suggested an April 22 study session on the FEMA floodplain maps which the
Planning Commission had considered.
9.2 City Attorney
No report
Council President Turchi recessed the meeting at 6:55 p.m. to reconvene at 7 p.m.
10. STUDY SESSION
10.1 Joint meeting with the City of Tigard and Intergovernmental Water Board regarding
the Joint Water Supply Study
Council President Turchi called for introductions including Lake Oswego Council members, Mr.
McIntyre, Mr. Lashbrook, and Mr. Boone. Tigard representatives Tigard Mayor Craig Dirksen,
Tigard Council President Sydney Sherwood, Tigard Councilor and Intergovernmental Water Board
(1WB) Member Gretchen Buchner, Tigard Councilors Nick Wilson and Tom Woodruff, IWB Chair
Patrick Carroll, IWB Vice Chair Dick Winn, IWB Board Members Bill Scheiderich and Julie
Russell, Tigard City Manager Craig Prosser, Tigard Public Works Director Dennis Koellermeier
Tigard City Attorney Tim Ramis, Attorney Clark Balfour(attorney preparing the agreement), and
Utility Division Manager John Goodrich.
Mr. Carroll discussed the IWB composition representing water users.
Mr. Komarek outlined the presentation that identified shared goals and major terms of the draft
partnerships agreement. An important goal was to have a water system that served the needs of
both communities, shared capital and operating costs, offered greater regional strength in regional
water supply issues, improved system reliability, and preserved Lake Oswego's water rights. Lake
Oswego and Tigard had shared a long history of shared water service since the 1970s on a
wholesale basis. In early 2006, Lake Oswego and Tigard jointly funded and managed an engineer
analysis, and the two Councils heard a recommendation and findings and agreed there was a
significant benefit in a partnership. A working group was appointed with periodic Council member-
support to come up with a mutually agreeable partnership. In December 2007,both cities executed
a memorandum of understanding (MOU) that committed both parties to do their best to come up
with mutually-acceptable terms and result in a shared water system.
Mr. Komarek reviewed the major highlights of the agreement. It did not create a new unit of
government. The agreement would commit the cities to jointly fund and build supply and treatment
between now and 2016 when Tigard's agreement with Portland expired. The cities would share
water through Lake Oswego's rights on the Clackamas River with 24 million gallons per day(mgd)
to Lake Oswego and 14 mgd to Tigard, and share shortages equally.
He reviewed the system components. The treatment plant had a 16 mgd capacity, and the water was
pumped to Lake Oswego, crossed Oswego Lake, and proceeded to Waluga Reservoir. Several lines
connected to the Bonita Road pump station. The system was built in the mid-to late 1960s, so it
was getting older, which motivated the expansion and improvements. He discussed improvements
made in 2002 that addressed the Endangered Species Act(ESA).
The water rights would be retained by Lake Oswego, and Tigard would have an equity ownership of
the new facilities and the land under those facilities in relation to capacity share of the system. The
agreement would establish a schedule to bring new capacity on line. Excess capacity in the system
of one party would be leased by the other. The agreement established existing service areas and
acknowledged potential future service areas but did recognize the need for mutual consent. The
agreement did not preclude either party from pursuing other water supply options.
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Mr. Koellermeier reviewed Tigard's service area and corresponding urban service areas. The
agreement was formulated to recognize Lake Oswego as the managing partner through the system
expansion and project construction. The cost of the expansion and operation and maintenance
would be shared in proportion to capacity ownership. Tigard would reimburse Lake Oswego for the
design and construction payments fi-om a reserve account. The agreement would establish a
technical committee and an oversight committee made up of elected officials from each of the cities
that would advise the respective City Councils. Some decisions like rate setting and system
development charges (SDC) would be made by individual cities while others would be made by
both cities. The agreement would also address withdrawal or sale of assets, dissolution of the
partnership, dispute resolution, governance, and addition of new partners. Staff and the working
group felt it had reached a good outline of the agreement and envisioned a public process prior to
adoption in June 2008. The IGA had to be ratified and financing needs and timing identified. He
provided a slide showing the major components of the program and schedule from 2008—2017. A
document should be ready for public review and conmment in 30—45 days.
Councilor Groznik asked how public input would be sought to keep momentum going.
Mr. Koellermeier replied the complicating issue was the number of governmental units involved.
Once the document was available it would go to the respective Councils and through the hearing
and comment process. Tigard had discussed the source selection for some time and was bringing
the public along.
Ms. Buehner added the working group decided it was best to develop a list of bullet points that
outlined the substance of the agreement for this meeting rather than trying to have a detailed final
document. Tigard was ready to go out with the bullet points with fine-tuning to follow.
Councilor Jordan asked when financial and ratepayer information would be available.
Mr. Komarek replied a rigorous financial analysis was prepared last July based on the feasibility
study. Although those costs might change, he was comfortable going to the public with the
understanding there might be some changes.
Councilor Jordan suggested it would be a good idea for each city to have a schedule of the others'
outreach process.
Mayor Dirksen assumed in 30-45 days each Council would have had time to review the document
and be comfortable with the language and ready to present the document jointly. He suggested
open houses with representatives from both Councils to support the notion of a partnership.
Mr. Koellermeier said he felt the working group had looked at the document pretty thoroughly.
Councilor Hennagin had perceived the IWB had a different boundary, and Tigard had its own
water service.
Mr. Koellermeier replied Tigard was the water supplier to the members of the IWB which acted in
an advisory capacity to the City of Tigard and represented the various users. Tigard was the
funding agency and had the bonding power. One attendee noted a portion of Tigard was served by
the Tualatin Valley Water District. The Tigard Water Service District included a potion of Tigard,
Durham, and King City.
Councilor Hennagin understood shortages would be shared equally.
Mr. Komarek replied there was more work to be done,but they wanted any shortages to be shared
equally.
Councilor McPeak was concerned about the short timeframe. She herself saw no big hurdles at
this point.
Mr. Winn asked if it was too soon to provide citizens with a cash flow program.
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April 15, 2008
Mr. Koellermeier replied that concept existed in draft form today, and staff did not wish to
presume the partnership was a given. The information was an outflow of the construction schedule,
and it would be available in that 30—45 day window.
Council President Turchi observed people in both communities might have new ideas, so it was
important to see where the public process went. Hopefully it would be a short period of time,but he
felt both Councils bad to be flexible and ready to work through problems.
Ms. Buchner thought the designated users of the water rights were interesting.
Mr. Komarek replied Lake Oswego held two permits on the Clackamas River and one on the
Willamette. There was a place of use associated with each permit and a point of diversion and rate
of use which was 38 mgd on the Clackamas and 3.8 mgd on the Willamette. The Iarger of the
Clackamas permits included the City of Tigard as a place of use. The smaller permit also named the
City of Tigard as a place of use in addition to the City of Tualatin. The Willamette permit was
secured in 1975 and was an alternate source in the event of an emergency.
Mayor Dirksen noted there would be greater costs for ratepayers from both cities, and no one
wanted to raise rates. Even though Tigard might continue to lease water from Portland, in the long
term that was a very expensive way to deliver water to residents. In the long run it would be a
better deal rather than doing nothing.
Councilor McPeak recalled the CaroIlo report presented a good case for the logic of this outcome.
Councilor Jordan observed Metro would be making decisions about urban and rural reserves.
Lake Oswego and Tigard went through this process, and need fiom the Stafford triangle had been
considered. It could be possible for Lake Oswego to share even more of its capacity with Tigard if
it was not used in Stafford.
Mr. Komarek replied some excess capacity for Stafford, some time in the future, could be leased to
the other.
Councilor Turchi thought one of the real benefits was being able to defray the costs by building
excess capacity and making it better for Lake Oswego ratepayers.
Mayor Dirksen added Tigard could also sell its excess capacity.
Councilor Groznik asked Mr. Komarek to discuss the benefits of redundancy.
Mr. Komarek replied Lake Oswego currently had one supply source with small interconnections.
This partnership could provide access to Bull Run and potentially the Willamette. He discussed
possible constraints on the CIackamas and the vision of a broad regional system.
Mayor Dirksen added Tigard was under no illusion that this partnership would always and forever
provide the City with an adequate source of water. At some point the demands would outstrip the
supply, so Tigard would maintain its other relationships. While Lake Oswego was considering
Stafford, Tigard was considering other areas as well. Lake Oswego was the preferred option.
Mr. Laslrbrook understood the Carollo report could be available on each city's website.
The group recognized the working groups and Mr. Koellermeier and Mr. Komarek for their work.
Ms.Buehner felt this was a win-win agreement for ratepayers through shared expenses and
economy of scale.
Councilor Jordan asked when the tipping point was for reaching an agreement.
Mayor Dirksen responded based on pressures from other potential partners that point was October.
11. ADJOURNMENT
Councilor Turchi adjourned the meeting at 7:57 p.m.
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April 15, 2008
Respectfully submitted,
Robyn Christie /s/
Robyn Christie
City Recorder
APPROVED BY THE CITY COUNCIL:
ON May 20. 2008
Judie Hammerstad /s/
Judie Hanunerstad, Mayor
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April 15, 2008