City Council Minutes - 09/21/2010 M&T
City of Tigard
Tigard Workshop Meeting - Minutes
TIGARD CITY COUNCIL
MEETING DATE/TIME: September 21, 2010—6:30 p.m. —Workshop Meeting
MEETING LOCATION: City of Tigard—Town Hall, 13125 SW Hall Blvd.,Tigard, OR 97223
1. WORKSHOP MEETING
A. 6:29:07 PM Mayor Dirksen called the Tigard City Council Workshop Meeting to order.
B. Deputy City Recorder Krager called the roll.
Present Absent
Council President Wilson x
Councilor Buehner x
Mayor Dirksen x
Councilor Henderson x
Councilor Webb x
C. Pledge of Allegiance
D. Council Communications&Liaison Reports—none
E. Call to Council and Staff for Non-Agenda Items - City Manager Prosser announced that a discussion
from the September 14,2010 Study Session would be continued at the end of the meeting.
2. EXECUTIVE SESSION—There was none.
3. RECEIVE REPORT ON THE WATER RATE STUDY FINAL RECOMMENDATION FROM THE
CONSULTANT AND UPDATE ON SYSTEM DEVELOPMENT CHARGES
6:30:18 PM Public Works Director Koellermeier introduced this agenda item. He suggested the format of a
water rate study presentation from staff and Red Oak consultants with a Council question and answer session
mid-way, followed by the SDC presentation and discussion. He noted that in addition to a PowerPoint
presentation there were updated charts displayed showing the four original Tigard water source alternatives
updated due to current study results and the Lake Oswego partnership implementation.
Public Works Director Koellermeier said the following recommendations would be discussed:
• Increasing the fixed charge
• Charging a fixed fee proportionate to water meter size
TIGARD CITY COUNCIL WORKSHOP MEETING
City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 1 of8
i
• Utilizing a tiered rate system
• Billing monthly
• Increasing water rates to allow Tigard to obtain bond financing
• Introducing an economic crisis assistance program
Public Works Director Koellermeier said key assumptions are that Tigard's cost for the partnership is$118
million and funding will come from rate adjustments,SDC revenues and debt financing.
Water Rate Study Final Recommendations
Red Oak Consultant Matthews had a PowerPoint presentation and discussed funding Tigard's current
challenges through increased fixed charges,a revised equivalent meter schedule,and the implementation of
tiered rates.He said a focus on conservation pricing should reduce peak-season and peak-day use.
Consultant Matthews reviewed the funding requirements of the Lake Oswego/Tigard partnership and
discussed funding source options. He said existing Tigard city water customer data was used to develop the rate
designs. He discussed uniform rates and said the consultants'proposal for keeping these in place for industrial
users. He said inclining blocks or tiers increase the price of water as use increases and this is their
recommendation for single-and multi-family residential customers. Conservation will be promoted with the
inclining block structure.
Public Works Director Koellermeier summarized that staff recommends the rate numbers and a shift to
monthly billing to help customers absorb the increases. He said the next part of the program will be to
develop an economic assistance program. He said implementation of tiered water rates will help convey a
conservation message. Increasing fixed charges aligns revenues with expenses and will also help with bonding
discussions to demonstrate stable revenues that are not variable due to weather.
7:00:27 PM Council President Wilson asked why irrigation users would be classified the same as industrial,
when irrigation users only use water during the peak season. Consultant Matthews said they will be charged a
different rate than industrial but will be on a uniform rate because they consume more water during the peak
season.
Council President Wilson noted that electric utilities use smart.meters and asked if a water utility could use
similar technology. Public Works Director Koellermeier said staff received a cost estimate for that technology
of$3 million dollars,but it would help identify leaks and save on the cost of reading meters. He said Tigard
took a compromise approach and all newly purchased meters are remote-read capable.
Council President Wilson referred to temperature data graphs and questioned the rationale for building 20%
additional capacity for only ten 95 to 100 degree days per year. He suggested that if Tigard wants to send a
message of conservation,the City should take another look at the payback through smart meters and charge
rates tied to use.
7:04:42 PM Councilor Buehner said current fixed rates make residential customers subsidize larger users.
Consultant Matthews disagreed,saying,"They are not really subsidizing larger users. But as we move into the
future that is exactly what would happen if we don't make this adjustment."
In response to a question from Councilor Buchner about whether part of Tigard's investment has been paid on
a cash basis,Public Works Director Koellermeier said the City had already put$3 million into the project.
TIGARD CITY COUNCIL WORKSHOP MEETING
City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 2 ofS
Councilor Buehner said it is important that citizens know the City has been saving money along the way so that
there were funds available to start this process prior to borrowing.
Mayor Dirksen said this would be painful for everyone,but considering tiered rates,etc.are things the City
should have been doing anyway. He said when a Cq is funding a necessity like water it costs what it costs,and
the only question is how to pay for it. He said he supports the rate abatement program for people in need.
Public Works Director Koellermeier commented that the City has taken the opportunity to present this to
citizens many times. He told Council the initial 30%rate increase estimate has been reduced and in November
staff will announce a lower percentage which he expected to be closer to 15%than 30%.
7:10:55 PM Councilor Webb commented that this region enjoys some of the best and most affordable water in
the United States. She said the current water rates are so low that conservation isn't encouraged,which is
something tiered rates should do.
7:12:11 PM Mayor Dirksen said this is the best alternative for the City. He announced that Council will be
holding a Town Hall on October 5 at 7:00 p.m. for citizens to come in and discuss issues including water rates,
the upcoming parks bond measure and anything else they wish to address with Council. This will be held in
Tigard's City Hall.
7:13:20 PM Councilor Henderson said it may not be understood by ratepayers that the amount due listed on
utility bills is not just for water,and the potential increase of$10.00 is only on the water potion of their bill.
Public Works Director Koellermeier agreed with the importance of targeting this point in public information.
7:14:14 PM Councilor Buehner said she walked around and personally spoke to 300 households in the Bull
Mountain area about why the water rates are going up. She also explained about the banking rule changes
which now require more costs up front because there is no bond insurance anymore.She said only one person
she talked to remained upset at the end of the conversation. She said people understand that it is"short-term
pain for long-term gain."
7:15:26 PM Council President Wilson said he is the Council liaison to the Regional Water Provider's
Consortium and wanted to propose a Council Goal Setting meeting discussion about forming an aggressive
conservation program particularly for peak-use times,that utilizes new technologies. He said as a landscape
architect he knows that there is no horticultural reason to water lawns and plants a great deal on the few days a
year when the temperatures spike. He said the public needs to be educated about this.
System Development Charges (SDC)
Consultant Matthews said SDC's are part of utility financing and are one-time capital charges that occur when a
new user connects to the water system. He said they are designed to offset the cost of growth and fairly pay for
the impacts on the existing system when new customers move into an area. Oregon law provides guidance on
developing SDC's and the consultants followed this in their recommendation.The four goals of the SDC Study
were 1) Develop a practical SDC that could be implemented;2) Maintain the financial health for the utility;
3) Comply with Oregon law;and 4) Ensure that the SDC's cover the cost of growth. He presented a
PowerPoint on the SDC Study process and recommendation.
Public Works Director Koellermeier said SDC's and water rate revenues are related in revenue financing.The
assumptions made for SDC's are a function of what rate we think Tigard will grow in the future. He said staff
took a conservative assumption of this growth based on the last several years of history. If Tigard grows faster
TIGARD CITY COUNCIL WORKSHOP MEETING
City of Tigard 1 13125 SVS'Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 3 of8
f
and the SDC revenues come in at a faster rate than what is modeled,it provides relief to the water rate side of
the equation. But he noted that the City is not betting on this.He said policy questions for Council are:
® Should the City charge the maximum allowable SDC?
• Should the City implement a phase in schedule?
Public Works Director Koellermeier said the Intergovernmental Water Board discussed this issue and came to
the conclusion that growth needs to pay its own way so they are recommending that against a phase-in-
However,if the City decides to do a phase-in period,they suggest the shorter, three-step,two-year period.
7:23:51 PM Council President Wilson said in his vocation he has been purchasing meters for clients for 25 years
and thinks the proposed costs are too high. He said people are already putting in undersized meters in order to
avoid the current rates. He said it is not equitable and will deter growth.
Councilor Buehner said that new development needs to pay its own way and not be subsidized. Councilor
Webb agreed.
Councilor Henderson said he agreed with Council President Wilson that in this economy people need some
financial relief.
City Manager Prosser asked staff what the assumption was for SDC's in their water rate model and asked what
the consequences would be if Council chose another amount than what is in the assumption.Consultant
Matthews said the SDC model assumes a moderate growth rate. He said the SDC's are not a significant part of
the revenue until future years when the economy will likely improve. Although the increases are substantial,
the impact on the bottom-line of the utility until growth returns is moderate.
In response to a question from Councilor Buehner,Public Works Director Koellermeier stated that the last
time Tigard's water SDC's were raised was 10-years ago.
Council President Wilson said he was not suggesting the SDC's shouldn't be raised,but didn't want Tigard to
lead the way with the highest rates in the region.
Consultant Matthews showed a slide detailing impacts to the utility of a phase-in period.
Mayor Dirksen said Council needed time to consider the SDC rate increases. He said the City typically provides
a phase-in period to dampen the shock of increases for existing bill payers,yet the people who would be paying
these SDC costs are not existing customers.He said he didn't know if phasing makes sense or really solves
anything. He referred to the City of Sherwood which has relatively high SDC's and suggested that the cost of
SDC's is not always a deterrent to growth. He said he would need more time to consider these increases.
Public Works Director Koellermeier remarked that the City is on a tight time line in order to issue required
notices to the Homebuilders Association. He said staff would be meeting soon to show them this package and
will then advise Council.
4. DISCUSS THE 2035 TIGARD TRANSPORTATION SYSTEM PLAN (TSP) -CPA2010-00001
7:40 PM Senior Transportation Planner Gray and Senior Planner Wyss updated Council on the status of
Tigard's Transportation System Plan. She said Council had in their packets the TSP as recommended by the
TIGARD CITY COUNCIL WORKSHOP MEETING
City of Tigard 1 13125 SVS'Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 4 of8
Planning Commission and a matrix summarizing changes made since the March presentation to Council. She
said adoption of the TSP is scheduled for an October 12 public hearing.
Senior Transportation Planner Gray gave a presentation on the significance and importance of having a TSP,
which include eligibility for federal transportation funding. She noted that this update was funded by the
Transportation and Growth Management(TGM)grant. She described the community involvement and citizen
outreach efforts.
Senior Transportation Planner Gray said a focus of this TSP that is a change from past updates is the effort to
get the most use out of the existing system. She said challenges include congestion,patterns for future growth
and limited connectivity. Solutions are addressed in Chapter 5 and include land use planning to support
alternative travel modes,connectivity,traffic management and design operations,and new projects. A table of
new projects is intentionally placed at the back of the TSP to indicate that the first order of business is
managing the existing system.
7:51:04 PM Council President Wilson commented that it seems we are doing more to satisfy legal requirements
in the TSP than to promote the City's vision. He asked staff to ensure that what comes through clearly in the
product is that this is Tigard's plan. He said the only people he is interested in satisfying are the 50,000
residents of Tigard. He commented on references to environmental justice and recommended that if the staff
analysis shows Tigard really doesn't have this problem,then this section not be included. He said he would
rather the plan focus on the desires of Tigard citizens and be less driven by social policy. He said he thought
the TSP was very good overall.
Councilor Webb disagreed with removing references to social justice. She said in every plan across Washington
County,affordable housing has to be sited near transportation in order to get funding so this needs to be
addressed in TSP's.
Councilor Henderson asked how limitations from ODOT's Transportation Planning Rule figure into this TSP.
He said it is important to connect with our neighbors and make sure we are working together.
In response,Senior Transportation Planner Gray said the TSP identifies the corridor refinement plans which
are part of the Southwest Corridor planning and in that process the intent of ODOT and Metro is that they'll
use it to identify alternative mobility standards that will hopefully,loosen up some of the restrictions. Specific
transportation improvements will be identified that can aleive some pressure on major corridors. She said
there is commitment from some at Metro,ODOT,and DLCD to resolving this conflict of adopted goals.
8:07:40 PM Council President Wilson commented that the only backage road in the plan is one he thinks
should not be there—Atlanta near Pacific Highway. He expressed concerns that it is too close to Pacific
Highway to have a reasonable intersection. Senior Transportation Planner Gray said that could be fixed with
turning restrictions and agreed that staff will take another look at it. Council President Wilson said the Tigard
Triangle area needs more connectivity. He said the Comprehensive Plan refers to connecting Fanno Creek
Trail to the Power Line Trail and asked why that is not in the TSP. Senior Transportation Planner Gray said
she did not know why it isn't included and will address this at the public hearing.
Councilor Henderson asked about Project#17 (Ash Avenue Railroad Crossing) and what the"near term"time
frame meant. Senior Transportation Planner Gray said it meant the City would do it now if it could. Councilor
Henderson asked if she thought this project was warranted. She replied that it would provide an immediate
circulation benefit but getting the approval of the railroad is a strategic challenge requiring the trade of an
existing at-grade rail cxossing. Senior Transportation Planner Gray said a project to realign Tiedeman Avenue is
listed as a near term project. She said that project would reduce the need for one at-grade rail crossing and
TIGARD CITY COUNCIL WORKSHOP MEETING
City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 5 of8
i
would have to be completed prior to the Ash avenue railroad crossing project.Mayor Dirksen said ODOT is
aware of the City's desire to extend Ash Avenue.
5. REVIEW COUNCIL GROUNDRULES UPDATE INCLUDING NEW COUNCIL CODE OF
CONDUCT
Assistant to the City Manager Mills referred to recent news reports and You Tube videos and suggested that the
topic of council groundrules is timely. She said Council has been looking at a code of conduct for board and
committee members for the past few months and asked that the same code of conduct be put into Council
groundrules. Staff has revised these documents for Council review. Changes include:
• New section on council communication with other agencies
• Council communications were identified with boards,committees and commissions
• Role of Council liaisons was defined
• Code of Conduct is included
• Change in sanction process for Council (A major change between the code of conduct for the
Board and Committee members and the one that Council has is that the sanction process
was changed to a censuring process. Board and Committee Members are appointed and
can be removed;City Councilors are elected and other Council members cannot remove
them.
• A Certification form is included at the end of the document for Councilors to affirm that they
received the Council groundrules,understand the provisions,and pledge to uphold them.
8:25:58 PM Councilor Henderson said there was no reference to Council's role as the City's policymakers.
Assistant to the City Manager Mills said a reference to Council's role could be added at the beginning of the
document. Councilor Henderson asked whether a word change in the groundrules is a change in the Charter
which can only be done by a vote of the citizens. City Manager Prosser said the Municipal Code and Charter
provisions are not verbatim are only summarized in this document. He said minor revisions in the groundrules
document are acceptable.
Mayor Dirksen said he agreed with Councilor Henderson's suggestion to add wording about Council's
policymaking role and suggested the location be page 8,third bullet down,prefaced with"Council is a policy-
making body and is not involved in the day to day administration of the City."
8:29:28 PM Councilor Buchner said she liked the board and commission contact section language but would
like added to it that Council members are not there to micro-manage any particular function. She suggested the
document encourage Council to treat City staff professionally and with respect.
In response to a question from Councilor Henderson about how August was selected as the time of year for the
annual groundrules review, City Manager Prosser said he remembered that it gives new councilors six months
to get used to how things work so they have a better idea if changes should be made and is also after the budget
hearings.
Councilor Henderson asked about the selection of May as the time for Council orientation. Councilor Webb
suggested removing the stated month (May) and putting in the words, "There will be an event hosted by the
City to share with potential Mayor or City Councilor candidates what is involved." Council agreed with the
recommendation to take out the specific month reference.
TIGARD CITY COUNCIL WORKSHOP MEETING
Cityof Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 6of8
i
i
Assistant to the City Manager Mills responded to an earlier question from Council President Wilson regarding
' whether Council is required to wait for a conviction to act when censuring a public official, and said the City
I Attorney advised that they do not. She added that typically,if there is an issue about not following the law,there
t
are often things that fall under the heading of misconduct.
i Assistant to the City Manager Mills said the City Attorney advised of concern about public officials receiving a
text,e-mail,tweet or other electronic communication during meetings. She said this creates challenges due to
public records requirements,and has the appearance of ex parte contact. She commented that City Attorney
i Ramis said other jurisdictions are addressing this ex parte contact issue in their groundrules. She asked Council
if they wanted language regarding inappropriate contact during meetings included.Council President Wilson
suggested an allowance be made for contact in a family emergency or when a meeting runs late. Councilor
Webb suggested putting something under the"Communications—General" section and making it part of both
Council groundrules and Board and Committee by-laws. She suggested adding a reminder that anything
transmitted by public officials during a city meeting is public record.
8:44:45 PM Assistant to the City Manager Mills thanked Council for serving as the example for Board and
Committee Members on how to act and for Council's striving to have high ethical and professional standards.
6. NON-AGENDA ITEMS
Continuation of discussion about Letter to Homebuilders Association-
8:45:31 PM City Manager Prosser said staff brought in a letter drafted by Washington County Planning
Managers with the suggestion that cities get their Mayors to sign it. It was addressed to Metro and the
Homebuilders Association requesting that they drop their legal challenge to Metro's Construction Excise Tax
(CET). He said it is still evolving and the question for Council is whether they are comfortable with Mayor
Dirksen signing this letter.
Assistant Community Development Director Hartnett said the letter distributed for Council review reflects
changes requested by the Homebuilders Association and Metro. She gave Council historical perspective of the
issue with Metro's CET and the Homebuilders. She said the mayors from Hillsboro and Tualatin have
committed to sign the letter and she thought it important for the Homebuilders'appeal to be dropped.
Councilor Buehner asked why King City was not included.Assistant Community Development Director
Hartnett said she did not know.
Council agreed that Mayor Dirksen should sign the letter.
Other-
City Manager Prosser announced that TriMet will begin removing railroad ties along the old Tigard Street rail
bed. Construction will start September 22 and occur during the hours of 7:00 a.m. through 7:00 p.m. from
Monday through Friday.
TIGARD CITY COUNCIL WORKSHOP MEETING
Cityof Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 I www.tigard-or.gov I Page 7of8
7. ADJOURNMENT
8:55:31 PM Councilor Webb moved for adjournment and Councilor Buehner seconded the motion. All voted
in favor and the meeting was adjourned
Yes No
Council President Wilson x
Councilor Buehner x
Mayor Dirksen x
Councilor Henderson x
Councilor Webb x
r�
Carol A.Krager,Deputy Ci6 Recorder
Attest:
� R
Mayor,City of Tigard
Date
1:\ADM\CATHY\CCM\2010\100921.doc
TIGARD CITY COUNCIL WORKSHOP MEETING
City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.*rd-or.gov I Page 8 of8