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City Council Minutes - 12/15/2009 Agenda Item No. Meeting of /'f a! S' 2 cv/10 rA City of Tigard Tigard Workshop Meeting — Minutes TIGARD CITY COUNCIL, CITY CENTER DEVELOPMENT AGENCY AND BUDGET COMMITTEE MEETING DATE/TIME: December 15, 2009 —*6:00 p.m. Executive Session/6:30 p.m. - Workshop Meeting '`EXECUTIVE SESSION CONVENED AT 8:23:43 PM MEETING LOCATION: City of Tigard—Town Hall, 13125 SW Hall Blvd., Tigard, OR 97223 1. WORKSHOP MEETING 6:34:04 PM 1.1 Mayor Dirksen called the meeting to order. 1.2 Roll Call: City Council present: Name Present Absent Mayor Dirksen ✓ Council President Wilson ✓ Councilor Buehner ✓ Councilor Henderson ✓ Councilor Webb ✓ Staff Present: City Manager Prosser, Assistant City Manager Newton, Public Works Director Koellermeier, Redevelopment Project Manager Farrelly, Finance and Information Services Department Director LaFrance, Assistant Finance and IT Director Smith-Wagar, Management Analyst Wyatt, and City Recorder Wheatley. 1.3 Pledge of Allegiance 1.4 Council Communications&Liaison Reports ■ Mayor Dirksen announced he would update the City Council regarding JPACT and Federal appropriation priorities at the next business meeting. 6:35:08 PM 1.5 Call to Council and Staff for Non-Agenda Items 6:35:24 PM City Manager Prosser advised there would be an Executive Session later this evening at approximately 8 p.m.,which is when City Attorney Ramis is expected to arrive. TIGARD CITY COUNCIL CCDA & BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City=of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 www.tigard-or.gov I Page 1 of 13 City Center Development Agency.• 6:36:16 PM 2. JOINT MEETING OF THE CITY CENTER DEVELOPMENT AGENCY AND THE CITY CENTER ADVISORY COMMISSION TO HEAR PRESENTATION FROM CITY OF ALBANY'S URBAN RENEWAL MANAGER City Center Development Agency Members Present: Chair Dirksen Director Buehner Director Henderson Director Webb Director Wilson City Center Advisory Commission Members Present: Commissioner Barkley Commissioner Hughes Commissioner Murphy Commissioner Shearer Commissioner Wong 6:37:30 PM Mayor Dirksen opened this portion of the agenda advising that he attended a presentation by the City of Albany regarding their urban renewal efforts,which he found interesting and enlightening. The City of Tigard has a relatively new urban renewal district whereas Albany has had their district in place and has gone through the stage where we are now. The Mayor said because Albany dealt with similar issues coming up for Tigard that it would be helpful for us to hear how Albany dealt with those issues. 6:38:39 PM Redevelopment Project Manager Farrelly introduced Albany Urban Renewal Manager Kate Porche. A copy of Ms. Porche's presentation to the City Council entitled, CARA—Central Albany Revitali.Zation Area—Presentation to Tigard City Center Development Agency and City Center Advisory Commission—December 15, 2009, is on file in the City Recorder's office. 7:06:19 PM Listed below are the "Takeaways" from the Albany experience: 1. Public input and collaboration is key. 2. Have a strong plan and policy to guide decision-making. 3. Use design guidelines to ensure quality projects. 4. Grants,loans, agreements —strong contracts ensure strong relationships. 7:07:09 PM Council discussion and questions of Ms. Porche followed. Summaries of points of discussion follow. • Corvallis is a strong competitor for Albany,which has been a challenge. Ms. Porche acknowledged the challenges for Tigard because of our proximity to a number of other communities. She commented the need to "reinvent yourself." • Albany is slightly below 50,000 in population. Mayor Dirksen noted Albany is the closest City to the same size as Tigard in Oregon. Ms. Porche noted the challenge for cities the size of Albany and TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 2 of13 Tigard in that"you are sort of big enough to have big city problems, but not large enough to have some of the federal contributions available to slightly larger cities. • Albany and Tigard have similar challenges with a major road dissecting the City. The Albany plan has guidelines to highlight gateways and this is a component of the plan still to be implemented in full. • Two years ago,Albany became an Oregon Main Street. They would like to change traffic configuration in the downtown to slow down traffic by turning one-way streets into two-way streets. ODOT opposes this change. • Albany has a very strong downtown association,which primarily represents the merchants. The association has agreed to a voluntary business improvement district (a tax to fund activities). The Chamber of Commerce also operates;however, there is a rift between those two organizations. It is hoped that the Oregon Main Street designation will represent a way to bridge the rift. • Ms. Porche described her position and how it has evolved. Originally, this position was filled by a Planner;it is now stationed in the Economic Development Department. Ms. Porche reports to the City Manager and this has benefited her. She said being separate from the Community Development Department or the Public Works Department has allowed her to act like an ombudsman for developers to assist them through the process and be the liaison among the other departments. • Ms. Porche reviewed how assistance was provided to help some businesses make the transition to locate or expand in the downtown area. 7:16:46 PM • Commissioner Murphy noted the presence of small service businesses in the downtown and the potential"cost of success"; that is, as property values climb,business might find they cannot afford to operate in downtown Tigard. He asked if this occurred in Albany. Ms. Porche said they have not had this challenge in Albany. She said she has considered the possibility and noted that what makes downtown Albany special is the presence of the small and unique businesses. She said there is a fine point where "you are trying to get the pendulum to swing, but you don't want it to be too far, too successful." Some mitigation has helped small businesses located within the historic property freeze (through the state). This has impact to the increment increase in the urban renewal area, but Albany's board has decided it is willing to forego the increment increase allow the people to continue with their tax freeze for historic properties, "because that's such an important part of who we are...we wouldn't have a downtown if it were not for the existence of these historic buildings." • In response to a question from Commissioner Shearer,Ms. Porche advised they do not have data yet regarding the actual number of living units are in the downtown. She thinks there are about ten units,which she acknowledged was not a "huge"number. She said there was support early on to provide for residential units in the downtown as residents will support the businesses as they utilize goods and services. The Fire Code changed, so sprinkler systems are required for residential units and this has made it cost prohibitive in many cases resulting in the decline of the rehabilitation of the second levels of buildings. Mayor Dirksen noted, and Ms. Porche confirmed, there are plans for a high-count of number of residential units in the future. She reviewed the residential units in the planning stages,which will be within walking distance to the downtown. • 7:21:37 PM In response to a question from Commissioner Hughes,Ms. Porche advised the housing needs analysis study was done by the Albany Community Development Department about five years ago. The study indicated needs for low- and high-income housing;mid-range and first-time homebuyers'housing needs were sufficient. Albany did a parking study. A group of people in their community are upset about parking and believe the solution is a parking garage. Ms. Porche said she believes there is a natural flow to the evolution of parking. First, there would be parking meters and then once this solution is maxed out, then you would build a parking garage. The study indicated TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 3 of13 that the "high time" measured at 46 percent usage. Parking professionals say that the "perfect" amount is 85-90 percent usage. There was discussion on the perception of what is adequate parking. Some believe you should be able to park directly in front of the business you want to use while others are accustomed to parking and walking a distance. Mayor Dirksen commented that possibly a paradigm shift needs to take place. People walk distances within malls to visit the stores they patronize or walk a long distance from the huge parking lots of big box stores. • 7:24:16 PM Ms. Porche said the Main Street program has helped Albany find ways to calm the challenges for parking through signage including"way-finding" signs;i.e., Wlelcome to Downtown—Free Public Park This Wlay.' At the public parking lot, there is a map of businesses and the hours of operation. • 7:25:02 PM Councilor Buchner commented on Tigard's situation where there might be parking behind the building;however, these parking areas are not connected to the parking in the next building. Ms. Porche said there are a handful of buildings in the Albany community that have small parking lots behind. Albany also has alleys. The City of Albany owns several parking lots downtown,which she thinks was a strategic move. Some of these lots are slated for future development where there will be underground and above ground parking. The City of Roseburg built a parking garage and people did not use it. Parking garages cost $30-50,000 per space to build, maintenance is expensive and security is expense. Roseburg found they could not afford the security and transients are living in the garage,which then means no one wants to park there at all. When it comes to parking it is important to know where you are in the evolutionary cycle,what your needs are, and how you can address in the "right way and the right time." • 7:26:56 PM Councilor Buchner asked how Albany was able to acquire the areas for parking. Ms. Porche said this occurred before she arrived and she did not know if these were originally city- owned properties or vacant lots that the City agreed to take over. The properties were acquired long before the urban renewal district evolved. • 7:27:29 PM Community Development Director Bunch worked for the City of Albany in the early 1980's. The parking along the riverfront in Albany was the result of warehouse buildings burning down in the 1920's and 1930's. The land became derelict and the City took these over because of abandonment. The large parking lot next to the Riverfront Park pathway was once filled with warehousing buildings, etc. because Albany was a steamboat (shipping) center. The City has maintained these properties as parking lots,which have become great assets. • 7:29:08 PM In response to a question from Council President Wilson,Ms. Porche reported about how their tax increment financing has grown. She noted the creators of boundaries the urban renewal district included significant properties: o an industrial property that was about to come off of a tax freeze situation and o an area near major roads where major building was about to occur In year two,there was $450,000 a year available from the tax increment and this gave Albany a boost to kick things off. Mayor Dirksen noted Tigard's urban renewal district is 193 acres,which is considerably smaller than Albany's. The "frozen base" for City of Tigard's district is $69 million; Albany's is $282 million. Ms. Porche spoke to the challenges of a way to prioritize projects to determine the projects to do now and those to be done in five or ten years. • 7:31:46 PM In response to a question from Councilor Buchner, Ms. Porche advised there was a minor adjustment to the boundary of Albany's urban renewal district shortly after the district was created. • 7:32:20 PM Ms. Porche said with the change in Oregon law,private partnerships need to be below $750,000; otherwise,it is considered a public project. • 7:32:47 PM Commissioner Shearer asked about the elderly housing project. Ms. Porche said it was a low-income housing tax credit project and was complicated. It is a limited partnership on one side TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 4 of13 and a non-profit on the other side. The project received $135,000 from the Urban Renewal Agency and that money went to specific architectural details and public open space the City wanted. Private developers funded the remainder of the project and later received the tax credits. The project is now operated and owned by a non-profit organization. This property does not pay taxes; therefore, there is no tax increment for the property. She referred to the dilemma of non-profit projects or projects that qualify for a historic tax freeze and to coming up with a policy if the value of these projects is less to the District. • 7:34:58 PM Ms. Porche spoke to the difficult determining the "right mix" for developing properties. This has represented a challenge when attempting to create overall policies. • 7:35:22 PM In response to a question from Commissioner Hughes,Ms. Porche noted there was a bond early in the District's history for a streetscape. Recently Albany worked with a financial advisor because urban renewal bonds are more complex than the traditional municipal borrowings. They did a tax-exempt and a taxable bond. She talked about establishing a line of credit, but they did not draw from it so it was rescinded. They have applied for a new line of credit for$5 million (two-year term). This is a good time to borrow money and the rate for the new line of credit is 2 percent. The bank they are working with is flexible and will allow them to draw for a tax-exempt or a taxable bond. • 7:38:33 PM Ms.Porche advised that Albany would be glad to set up a tour of their District. 7:398:01 PM City Council/Budget Committee: 3. UPDATE THE BUDGET COMMITTEE ON THE CITY'S YEAR-TO-DATE FINANCIAL PICTURE • Citizen Budget Committee members present: Goodrich, Struck, Parker and Alternate Committee Member Moghimian. Finance and Information Services Department Director LaFrance introduced this agenda item. 7:40:57 PM Finance and Information Services Department Director LaFrance asked the citizen members of the Budget Committee if they had any suggestions for the upcoming City Council goal-setting meeting. Committee member Bailey sent an email to Finance and Information Services Department Director LaFrance suggesting a goal that Tigard should remain flexible to changes and costs and needs where possible; that is, to remain as fiscally nimble as much as possible. 7:44:41 PM Committee Member Goodrich said Tigard is in a good position compared to some of the other communities. He said it would be wise for the City to continue with current fiscal policy while maintaining infrastructure so that as the economy recovers,we will be in a position to see development for the downtown renewal area. 7:46:27 PM Committee Member Struck noted a great number of commercial vacancies in our community. She would like to see some thought into drawing new businesses to Tigard to occupy these empty buildings. 7:46:59 PM Committee Member Parker said he would like to see his City Council embrace the business community by being more involved, attentive, or participatory. He said he has served on a couple of city committees and he TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 5 of13 has noticed there are no Tigard business owners serving on these committees. This seems like it would be beneficial for the City to learn what business owners need. 7:48:04 PM Finance and Information Services Department Director LaFrance summarized the comments by the Committee Members regarding suggestions for City Council goal areas: • Developing the downtown. The individuals serving on the Tigard Budget Committee also serve on the City Center Development Agency Budget Committee. • Maintaining the City's infrastructure. • Provide incentives to businesses to fill vacant storefronts. • Embracing the business community. 7:48:52 PM Committee Member Struck said she thinks the City Council has done a good job of spending the tax dollars wisely and are conservative. We are ahead of the communities that surround us and she would like us to continue this conservative,responsible course. 7:49:27 PM Council President Wilson noted that everything we do has some kind of financial component. As City Council members, they cannot launch into new projects without preplanning and going through the Budget Committee. He encouraged the Budget Committee citizen members to think broader than the current budget. 7:50:47 PM Councilor Buchner noted the difficulty to come up with money to do a variety of projects. She asked the Committee to try to think of ideas about how we could adjust the budget so we could add some other projects. Councilor Buchner confirmed for Committee Member Struck that the City Council has a priority list of projects. She gave an example of a City Center Advisory Commission proposal for a facade grant program. It has been difficult to come up with money to support this program. 7:53:23 PM Finance and Information Services Department Director LaFrance said in the 2009 City Council goals, there is a five-year goal to develop a long-term financial strategy. He asked if this was something the Budget Committee members feel should be moved forward and should there be direction about how to develop the strategy? Budget Committee Parker suggested an approach that uses data from today's economy. He offered that this goal might be better to be pushed off for a couple of years to wait for the economy to settle down. Mayor Dirksen agreed with Committee Member Parker. When this goal was established, the City Council was not sure how they could address it. The economic situation has made this more difficult. Mayor Dirksen said some of what is going to happen in the future is beyond our control;outcomes will be affected by decisions of the State Legislature. For traditional funding sources, there are limitations placed on us by Measure 5 and Measure 50, which have long-term, negative impacts on Oregon cities. He suggested we might want to try to influence our representatives in Salem and encourage them to address these issues at the State level. 7:56:12 PM Budget Committee Member Goodrich agreed we should work with the State as well as the County and Metro. Someone from the City should be involved in these organizations so "we are in the mix and in the planning." TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 6 of13 7:56:45 PM Councilor Buchner referred to the recent change in the Mayor's responsibilities, this has allowed the Mayor to become an active member and participant in committees that meet during the day. This change has already paid off for Tigard. 7:57:31 PM City Manager Prosser explained that the City Council will be meeting in a goal-setting session in one week. He requested that Finance and Information Services Department Director LaFrance summarize the goal suggestions, send them to the Citizen Budget Committee members so they can review in time for staff to finalize the goals and submit them to the City Council by Friday. 7:58:12 PM Budget Forecast Finance and Information Services Department Director LaFrance said we are taking a different approach for the forecast. The purpose of the forecast is to take today's conditions for policies and programs and,if nothing else changes, to move that information forward with known changes and assumptions and determine from that what the financial picture looks like. From this we can set the baseline to determine available resources for other programs and policy changes. In addition, we can ascertain our constraints to make policy changes that might require a lower level of service because we do not have resources or where we might seek additional resources. The forecast allows us to "frame the discussion." In prior years, we forecasted our needs; aka a "wish list" for additional staffing presuming a change because the City Council made a decision to approve the additional staff. The process now shows: ■ Existing staff ■ Existing programs ■ What resources are available Finance and Information Services Department Director LaFrance said the general approach has been to review things such as the CPI,gross domestic products,unemployment, and area housing starts to determine the state of the economy. There is in general agreement in the economic community that we are somewhere in the trough of our recession. There is also general agreement that to get to the economic conditions that we had before the recession will be a longer, slower recovery than experienced in prior recessions. We are looking at about a three-to six-year time horizon for a recovery. Finance is preparing the first numbers for the forecast from indices prepared using the assumptions listed above. The departments will then look at the forecast to weigh-in on where it makes sense and where they have input that could affect the numbers. The real work will be through those department discussions and the foundation for the budget and policy decisions. 8:03:22 PM Councilor Buehner noted we will be looking at budgeting for next fiscal year within four months. She asked Finance and Information Services Department Director LaFrance if we might know more about where we are in the recession's trough by then? Finance and Information Services Department Director LaFrance said that as we get further along,we will have a better idea of where we are. Some indicators show we are beginning the climb out of the recession while others disagree. As we get more of a preponderance of indicators that point in the same direction,we will have a better idea. At this time,it is a"fairly mixed bag." TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 7 of13 8:04:33 PM Finance and Information Services Department Director LaFrance reviewed the status of the following for the current fiscal year: ■ Property tax collections — our largest revenue. We have received from Washington County six turnovers of our property tax. Last year after we have had six turnovers of our property tax, we were at 91 percent of our total collections. This year we have received $11.5 million of property tax revenue (General Fund and Library General Obligation Bond). Last year we also received an additional $1,060,000 for the remainder of the year in the rest of the turnovers. To meet our budget amount, we need to receive another$1.1 million. The basic message: We are on track avitb ourpropery tux collections as to avbut we budgeted and forecasted. Finance and Information Services Department Director LaFrance explained the budget was based on a 93 percent collection rate (historically the collection has been about 94 percent). We received information from Washington County that it might be a little bit less than average due to the economy. If we have a lower collection rate, in future years it will increase our prior year collections. Eventually the money does come. We will use the 93 percent collection rate assumption for next fiscal year. Washington County has possibly the highest collection rate in the State of Oregon. ■ Key funds. We did not find any funds in our key funds where the amount spent against budget was alarming. We are 42 percent of the way through budget year. November closed with • 37 percent spent from the General Fund of our budget • 19 percent spent from the Gas Tax Fund (because Burnham Street is just starting) • 39 percent spent from the Building Fund. Revenues for permits are at 46 percent of budgeted collection rate (at 42 percent of the way through the year). With the General Fund support approved by the Budget Committee for this year, the revenues in that fund exceed the expenses by about $65,000. However, Finance and Information Services Department Director LaFrance cautioned we are at that time of year where building usually is slow and he expects this to be"tailing in closer" to the budget. Overall,we seem to be on track when comparing the key funds against the budget. ■ Street Maintenance Fee process. Last week, the City Council approved the changes to the Street Maintenance Fee. There will be an additional change to be reviewed by the City Council regarding the appeals process. Councilor Buehner noted the start date for the new Street Maintenance Fees was changed. Finance and Information Services Department Director LaFrance will be preparing an analysis to show the effect of the start date change. The general result of the new Street Maintenance Fee process is that the fees will increase. The fees are about triple and will be phased-in over a three-year period. Implementation was delayed to July 2010. The average resident will be paying $72 per year instead of$30 per year at the end of the three-year phase-in. 8:10:52 PM Finance and Information Services Department Director LaFrance advised a Supplemental Budget Hearing is scheduled for January 12. We have items that need to be carried from the prior budget because we now have TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 8 of13 information we did not have at the time of budget approval. We have ARRA funding, which needs to be appropriated. We also have changes associated with the Engineering performance review and because we approve the budget on a program level the budget needs to reflect we are moving Engineering from the Community Development Department to the Public Works Department. There are a couple of "clean up" issues that will be part of the Supplemental Budget hearing. 8:11:59 PM Assistant Finance and IT Director Smith-Wagar reported on the status of the audit. The auditors do preliminary work in May and return in the fall after the fiscal year has ended to wrap up. Our auditors were here for a couple of days in November and were also here last week. The auditors have completed their fieldwork. They review items such as our internal controls to determine if there is adequate separation of duties. Overall, the audit went well. Each year, they select different items to review. Under auditing standards they have to change the items they review from year-to-year. Some items are always reviewed (cash,liabilities). The auditors reviewed customer deposits. We have done a good job of refunding developer's deposits but we are not as good at tracking those instances where the developer has not done a good job so the City has had to do the work and the deposits under these circumstances should have become revenue. The money sits in liability accounts and should be changing over to revenue in a more timely manner. We will likely see a management letter comment from the auditors regarding this matter. The Comprehensive Annual Financial Report is about 75 percent complete. Assistant Finance and IT Director Smith-Wagar anticipates it will be finished in about two weeks. In response to a comment by Mayor Dirksen, Assistant Finance and IT Director Smith-Wagar agreed that we have been conservative with regard to the customer deposits and transferring the funds to revenue. There will be about a$200,000 adjustment to revenues this year. Assistant Finance and IT Director Smith-Wagar confirmed for Councilor Buchner that there were no major issues identified by the auditors. 8:16:37 PM Finance and Information Services Department Director LaFrance advised another quarterly meeting of the Budget Committee is scheduled for March 16. The Budget approval process is scheduled for Mondays beginning April 12 for three weeks with a fourth Monday reserved for a meeting if needed. Finance and Information Services Department Director LaFrance advised Councilor Buchner that the election of the Chair will occur at the first Budget-approval meeting. 8:17:46 PM City Center DeveloptnentAgency/City Center DevelopmentAgency Budget Committee: 4. UPDATE THE CITY CENTER DEVELOPMENT AGENCY BUDGET COMMITTEE ON THE AGENCY'S YEAR-TO-DATE FINANCIAL PICTURE • City Center Development Agency Budget Committee Members present: Committee members Dirksen, Wilson, Buchner, Henderson, Webb, Goodrich, Struck, Parker and Alternate Committee Member Moghimian. TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 9 of13 Finance and Information Services Department Director LaFrance advised the forecasting process will be the same for the CCDA as it is for the City of Tigard. 8:18:57 PM Finance and Information Services Department Director LaFrance said we expect collections from property tax to be $177,004. We have already collected $229,500; therefore, we will be looking at a collection of roughly $250,000 within the Urban Renewal District. In talking with Washington County, the unanticipated collection amount was because there was a large increase in the assessed value for utilities relating to activity by Verizon. This is a temporary item. We will have an additional$75,000 to appropriate. 8:20:39 PM There are two funds for the City Center Development Agency. The Capital Project Fund is 18 percent spent. There has been $19,000 in projects carried over from the prior year: the Downtown Circulation Plan and the Tigard Transit Redevelopment. The budget for these two items is $27,967. The debt service fund has no dollars for budgeted expenses. The audit of prior financials occurs at the same time as the City audit. 8:21:49 PM In response to a question from Councilor Buchner, Finance and Information Services Department Director LaFrance advised that no dollars will be going toward the Burnham Street Budget. Next year, there will be some funds going toward this project. 8:23:43 PM The City Council met in Executive Session. City Manager Prosser announced the citation under which the Executive Session was being called: The Tigard City Council went into Executive Session under ORS 192.660(2) (f) and (h) to discuss exempt public records and consult with legal counsel regarding litigation likely to be filed. Executive Session concluded at 8:55 p.m. 8:59:47 PM City Council meeting reconvened. 5. BRIEFING NO. 4 ON THE TIGARD TRANSPORTATION SYSTEM PLAN UPDATE Senior Planner Wyss presented the staff report. The consultants have completed their work on the Systems Solutions Report and we have a draft version of an updated Transportation System Plan. The Citizen Advisory Committee and the Technical Advisory Committee will meet December 16, 2009 to review the document for consistency with previous discussions and other transportation plans. After the edits have occurred the draft version of the Transportation System Plan will be made available to the community. The City will take comments on the draft throughout January 2010. Individual meetings with City Council members will be coordinated through the City Manager's office. There will be a Community Open House on January 27 to discuss the projects with staff. After receiving all feedback, changes will be made and a final draft completed in early February. The final draft will be distributed to the Planning Commission and City Council about a month before a March meeting where the consultant will present an adoption-ready draft to go through the adoption process in the late spring of 2010. 9:04:21 PM TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 10 of 13 Council President Wilson said he hoped that the students working on 99W plans would be looking at backage roads. Would those types of plans be considered in the Transportation System Plan? Senior Planner Wyss said they would be considered. If these types of plans are not shown in the first round, then Senior Planner Wyss suggested an opportunity would then be had when the High Capacity Transit Study is done. 9:05:06 PM Mayor Dirksen referred to the current economic situation. He said it looks as if the draft document would stand well with the exception of the Transportation Financing Analysis. He asked for a summary of the criteria used for this Analysis. Senior Planner Wyss said the Finance Department identified the current funding sources for transportation projects in the City and made a projection over the next 20 years. The Consultants broke that information down by what is used for operations and maintenance and what would be used for capital projects. The number came out to $55 million to be anticipated to be available in the next 20 years for capital projects. This information was used to prioritize the high, medium and low priority projects. The high priority projects would fit within the $55 million projection. If there are partnerships with other jurisdictions on projects, then the funding would shift. Mayor Dirksen said that the more we show we are able and willing to help fund projects with other jurisdictions seems to help free up dollars from those sources. Senior Planner Wyss confirmed a statement by Council President Wilson that if a project is not on our plans or regional plans, then the project is not eligible for funding. 9:08:25 PM 6. SECOND WORKSHOP ON DOWNTOWN CODE AMENDMENTS Redevelopment Project Manager Farrelly presented the staff report. A copy of the PowerPoint presentation is on file in the City Recorder's office. This item was discussed at the October 20, 2010, City Council workshop meeting Since then staff has engaged in discussions with Oregon Department of Transportation (ODOT) regarding how to address the Transportation Planning Rule. ODOT was concerned about the Hall and 99W subarea. Staff had proposed allowing up to eight stories of mixed uses. ODOT said this would negatively affect their facilities. Staff reviewed information with ODOT showing expected square footage that could be developed under the new Code and trips that could be generated, there was evidence that there could be "quite an impact" on ODOT's facilities. For the time being, staff decided to leave the existing height limits in place. He reviewed maps (PowerPoint presentation) that showed the original proposal and the new proposal. ODOT indicated they would work with the City through this 99W corridor land use plan and said that high-capacity transit in the corridor would change the equation. If Hall and 99W (or in the vicinity) becomes a station area for high- capacity transit,then the City could go ahead with the scale of development we originally proposed. In response to a question from Councilor Buchner, Redevelopment Project Manager Farrelly said the land use study for high-capacity transit in the corridor will be completed in about a year. He said he could ask ODOT to memorialize in writing their willingness to revisit the plans for the area if high-capacity transit is added to the area. Mayor Dirksen said ODOT representatives have made statements at public meetings regarding revisiting the plans so it is also a matter of public record. 9:13:44 PM Redevelopment Project Manager Farrelly said that because of the proposed change to the Code, another hearing will be held before the Planning Commission on December 7. Planning Commission unanimously TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 11 of 13 recommended approval. The City Council public hearing is scheduled for January 26, 2010, which will be preceded by a discussion at the January 19,2010 City Council workshop meeting. Redevelopment Project Manager Farrelly referred to a slide in the PowerPoint presentation showing the new maximum building heights in different subareas. He referred to a slide showing the proposal to change the signage to allow signs to rise up to 2 feet above the roof/canopy. Council members indicated this change could be added to the proposed Code amendment. Mayor Dirksen suggested that such a sign be allowed only on one-story buildings and after brief discussion there was agreement among the City Council members on this suggestion. 9:19:21 PM Redevelopment Project Manager Farrelly,in response to a question from Council President Wilson, said he has heard discussion that some jurisdictions, Metro, and the LCD will be working with ODOT on the Transportation Planning Rule issues. Council President Wilson pointed out how the Transportation Planning Rule reinforces the status quo; i.e., downtown Portland has the 200-foot limits, which translates that all supporting infrastructure goes to support downtown Portland. We want to do something different. 9:20:40 PM Councilor Buehner asked about areas that might include residential; i.e., where the Joanne's store and Russ Chevrolet are now located. Redevelopment Project Manager Farrelly said with a three-story limit, it would be unlikely to get the ability for the type of mixed use that would include residential. With the high visibility of this intersection, Redevelopment Project Manager Farrelly said it would likely remain retail oriented. Redevelopment Project Manager Farrelly also noted there were comments of concern about an area showing 80 units per acre;however,this is for a transit-oriented development purpose. 9:23:09 PM Taller structures to be used for residential is a long-term concept for the City of Tigard. 9:23:50 PM In response to a question from Councilor Buchner,Redevelopment Project Manager Farrelly said it is possible that some of the 2nd floors on existing buildings in downtown could be refurbished for other uses. 9:25:09 PM Councilor Henderson asked a question about how the height is measured, noting a topography circumstance behind Russ Chevrolet,which is a steep grade. Mayor Dirksen said the issue limiting us is ODOT's concern with the number of stories of the building and the number of trips generated. 9:26:51 PM 7. PROVIDE UPDATE ON FEBRUARY,2010 SPECIAL LEGISLATIVE SESSION Assistant City Manager Newton and Management Analyst Wyatt presented information to the City Council on this agenda item. Assistant City Manager Newton reviewed the priorities from last Session. A summary is included in the City Council packet materials on file in the City Recorder's office. Management Analyst Wyatt reviewed information about the February Legislative Session: • Session will start on February 1. Each legislator can introduce one priority bill. TIGARD CITY COUNCIL CCDA& BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 12 of 13 • Measure 66 and 67 election results Qanuary 26)will determine the scope of what is reviewed during the session. • One topic that might be introduced is for tracking devices to be required for hikers. • He asked if City Council members heard anything relating to the legislative session,to let staff know and staff will track. City Council will receive regular updates on the bills being tracked. Management Analyst Wyatt responded to a question from Councilor Buehner advising Tigard staff and Washington County staff are following federal transportation-related issues. Updates are also received from the League of Oregon Cities. Councilor Buehner asked for regular updates. In response to a question from Assistant City Manager Newton, Councilor Webb suggested that the session will be short and activity will need to be monitored by staff. Assistant City Manager Newton said there might be some collective bargaining issues introduced. Management Analyst Wyatt said there is a list online showing what cuts will need to be made if Measures 66 and 67 do not pass in January. Not many on this list relate directly to cities,but there will be some impact if these measures are turned down. There is a potential that cities could lose the state revenue sharing funds they now receive. 8. ADJOURNMENT 9:35:33 PM Motion by Councilor Webb, seconded by Council President Wilson,to adjourn. The motion was approved by a unanimous vote of City Council present. Mayor Dirksen Yes Council President Wilson Yes Councilor Buehner Yes Councilor Henderson Yes Councilor Webb Yes Catherine Wheatley, City Recorder Attest: rrz Mayor, ity4, /-3. of Tigar Date: l 0 I:\ADM\CATHY\CCM\2009\Council 20091215-1532 O1ca7d9bc6ab5300.doc TIGARD CITY COUNCIL CCDA & BUDGET COMMITTEE MINUTES—DECEMBER 15, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 13 of 13