CCDA Minutes - 04/02/2013 ' City of Tigard
Tigard City Council, CCDA and Local Contract CCDA,
TIGARD Review Board Meeting of April 2, 2013
CITY CENTER DEVELOPMENT AGENCY MEETING
I@
A. At 6:32 p.m. Mayor Cook called the meeting of the City Center
Development Agency, City Council and Local Contract Review Board to
order.
B. Deputy City Recorder Krager called the roll.
Present Absent
CCDA Director Woodard ✓
CCDM Chair Cook ✓
CCDA Director Buehner ✓
CCDA Director Henderson ✓
CCDA Director Snider ✓
C. Pledge of Allegiance
D. Council Communications & Liaison Reports—CCDA Director Buehner said she will
give a report on earthquake preparation at the end of meeting. CCDA Director
Woodard announced he will be meeting with the Clackamas Water Providers next
week. CCDA Director Henderson said he will speak about the CDBG grant
program. See Agenda Item No. 9.
10 Director Buehner said that regular first Tuesday CCDA meetings were
originally scheduled to allow focus on CCDA-related topics only. She requested that
City Council items not be scheduled on CCDA agendas.
E. Call to Council and Staff for Non-Agenda Items —None.
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• ICJ EXECUTIVE SESSION: At 6:36 p.m. Chair Cook announced that the Tigard
City Center Development Agency was entering into an Executive Session to discuss
real property transaction negotiations under ORS 192.660(2)(e).
The Executive Session ended at 7:05 p.m.
1. RECEIVE URBAN RENEWAL PROJECTS UPDATE
10 Redevelopment Project Manager Farrelly and Community Development Director
Asher were present to give the staff report.
Burnham Street Parking Lot: Redevelopment Project Manager Farrelly said bids will be
awarded soon for the Burnham Street parking lot and it should open by July. He said the lot
design was reconfigured to accommodate outdoor display space for store owner Jeffrey
Allen.
Facade Improvement Program: This popular program has attracted a lot of interest
recently. Five businesses have applied since January 1 and all are motivated to start
construction soon: Jeffrey Allen, Max's Fanno Creek Brew Pub,Tigard Cleaners, Kepler's
Upholstery and Symposium Coffee. Facade project construction nearing completion
includes the Diamond property, Sherrie's Jewelry Box, Rojas Market and Gifts, and Wei Li
Acupuncture.
Fanno Creek Trail Undercrossing Lighting: Lighting is being designed not only for
safety but to highlight architectural features of the viaduct. This is being incorporated into
the Fanno Creek Trail project connecting Grant and Main Streets. The undercrossing lights
will change color for holidays and festivals.
Downtown Events U The Tigard Chamber of Commerce was awarded the contract to
coordinate downtown events. Third Friday events continue. Spring will bring more
pedestrian activity and customers. The second annual street fair is tentatively scheduled for
August 17 and it will not conflict with the Tualatin Crawfish Festival this year. Director
Buehner commented that the "Third Friday event last year was poorly attended because it was
held right after the street fair. Redevelopment Project Manager Farrelly said if the August 17
date is held for this year, it may be a multi-night event and could include the third Friday.
Downtown Art: A public art visioning session was held last week. CCDA Directors
Woodard and Henderson attended along with 20 members of the community. Artist Brian
Borello collected ideas for Tigard gateway public art pieces.. The second public meeting will
be May 22 and Redevelopment Project Manager Farrelly will send out a reminder. Council
President Henderson said he appreciated the explanation of the different interpretations and
Councilor Woodard mentioned he liked the process because the artist developed themes
from the information he gathered.
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Tigard Street Trail: Redevelopment Project Manager Farrelly said meetings have been held
with Executive Director Wine regarding the Tigard Street Trail project. It has been in limbo
due to ODOT Rail inaction and personnel changes,but there are some new ideas on how to
reengage the rail contingent. One thing up for discussion is whether to purchase the land or
do Rail-to-Trail land banking. Director Buchner encouraged staff to keep pushing this to go
forward.
Symposium Coffee: Director Henderson asked about the status of this downtown business.
Redevelopment Project Manager Farrelly said they have been awarded $23,000 for interior
improvements and another$12,000 for facade improvements. They desired a mid-April
opening but now it looks more like a May or June opening. He said it has been helpful to
have Director Henderson on the review committee as he was involved in constructing the
Chamber building.
2. DISCUSSION ON PROPOSED DOWNTOWN TIGARD ENVIRONMENTAL
CLEAN-UP FUND PROGRAM
CJ Redevelopment Project Manager Farrelly said staff is seeking CCDA direction and feedback
on a new program in the downtown. It is increasingly apparent that there may be
environmental contamination due to historical uses of a number of sites in the downtown.
This is a hurdle to redevelopment as developers are reluctant to purchase these properties
not knowing the presence or extent of contamination and what their liability might be.
Staff is proposing that the CCDA coordinate a program to maximize the work that can be
done. There are programs available through the State of Oregon,Business Oregon,
Department of Environmental Quality (DEQ) and the Environmental Protection Agency
(EPA). Resources are available to develop a fund to help solve this problem. The CCDA
will also be seeking partnerships with developers.
Tonight the Council will be asked to approve, through a resolution,a$25,000 grant
application to the Oregon Business Development Department Brownfields Redevelopment
Program. If successful, the grant will be used to perform outreach to property owners,
compile an inventory of properties with potential environmental issues and do baseline
assessments. This information will be used to apply for substantial amounts of EPA
funding. He said he and Community Development Director Asher met with the head of
the Oregon office of the EPA and obtained information on available funding and how to
access that money.
'Director Buchner asked if there was funding available for educating property owners
about the complicated process and potential liability when selling or developing their
property. She has heard some good presentations on this. Redevelopment Project Manager
Farrelly said funding is available for this purpose and requested that Director Buchner pass
along to him some names of speakers on this topic.
Director Buchner asked if there were low-interest loan programs for clean-up of properties.
Redevelopment Project Manager Farrelly said the State of Oregon has a type of brownfields
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program revolving loan program. Director Buehner said this would be a good tool for a
small business owner that may not be able to come up with the entire clean-up amount at
one time.
Director Henderson questioned why the grant application approval was scheduled for
Council, not CCDA approval. Redevelopment Project Manager Farrelly said the application
form required approval from the highest body so Council will be considering this. Director
Henderson asked if there would be any time when the CCDA would expend funds for this
program and Redevelopment Project Manager Farrelly said there would. Director Buehner
cautioned that there are very strict rules regarding tax increment financing.
Community Development Director Asher said the federal grant cycle starts in the fall and by
then we will know more. He said the urban renewal district in Tigard was set up with strict
parameters but brownfields are a very classic urban renewal activity.
Executive Director Wine said the resolution under consideration is for council support of a
grant application. In response to a question from Director Buehner about whether all grant
programs require formal council approval,Executive Director Wine said it depends on the
program. She said council support lends validation and the city has an internal policy that
asks staff to bring grant applications to council for approval. She said she will return to
�-qq council with a proposed change to internal procedures regarding grant approval thresholds.
�J
SPECIAL CITY COUNCIL MEETING
3. PROCLAMATION —ARBOR MONTH
HMayor Cook proclaimed that April is Arbor Month in Tigard and read the
proclamation.
4. CONSENT AGENDA:
HMayor Cook read the items on the consent agenda.
RESOLUTION NO. 13-13 -A RESOLUTION SUPPORTING AN
APPLICATION FOR AN INTEGRATE=D PLANNING GRANT FROM OREGON B
USINESS DEVELOPMENT DEPARTMENT BROWNFIELDS PROGRAM
Mayor Cook asked for a motion to approve the consent agenda. Councilor Buehner moved
to approve the consent agenda and Councilor Woodard seconded the motion. Motion
passed unanimously.
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Yes No
Councilor Woodard ✓
Mayor Cook ✓
Councilor Buchner ✓
Council President Henderson ✓
Councilor Snider ✓
LOCAL CONTRACT REVIEW BOARD
Mayor Cook announced that Council is meeting as the Local Contract Review Board for the
following agenda item.
5. CONSIDER ADOPTING REVISIONS TO THE CITY'S PUBLIC CONTRACTING
RULES—LEGISLATIVE PUBLIC HEARING
At 7:35 p.m. Mayor Cook opened the public hearing.
10 The staff summary was given by Senior Management Analyst Barrett. He said staff is
asking the LCRB to approve revisions to Tigard's public contracting rules. The city has
elected to follow its own public contracting rules rather than follow the Attorney General's
Model Public Contracting Rules and the LCRB adopted the current contracting rules in late
2011. Since then, the State has passed legislation that Tigard is required to put in its rules,
and staff also found some efficiencies that need incorporation into the contracting rules.
A matrix of specific changes was included in the packet for this agenda item. They include:
• Incorporating Qualification Based Solicitations (QBS)
• Exempting temporary personnel services from competitive bidding
• Language changes related to surplus property
• Raising the amendment threshold from 25 percent of the contract total to the actual
project budget for that fiscal year
• Removing intergovernmental agreements from the public contracting rules
ElLCRB Member Buchner commented that there seems to be a low threshold for
contracts that do not have to go through the process. She asked if Finance Department staff
had a recommendation to simplify low level contracts. Senior Management Analyst Barrett
said Tigard's $10,000 level is higher than most other agencies, although the State is looking
at moving the level for the entire state to $10,000. He said, "Where Tigard tends to "bump
up against the ceiling is at the intermediate level. Our level is $100,000. The state allows us
to go up as high at$250,000." He said staff would prefer an increase to that level to
expedite contracts and move projects ahead more quickly, but noted that small businesses
may be unfavorable because it would be more difficult for them to compete.
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Senior Management Analyst Barrett said staff will come before the LCRB next year after the
current legislation makes its latest changes. He said staff could bring a recommendation at
that time.
Senior Management Analyst Barrett said the QBS level has been raised to $250,000 but this
is only for five services:
• Surveyors
• Engineers
• Architects
• Transportation Planners
• Photogrammetrists
LTJ LCRB Member Henderson expressed concerns he has with the QBS process. He said
QBS allows the top three consultants to be able to see what the costs are. He said, "We
went through this with the Dirksen Nature Park and I have concerns. We could benefit by
narrowing it down to three qualified bidders and looking at the prices."
Senior Management Analyst Barrett replied, "I don't think you would find very much
disagreement from the staff. Unfortunately,in the state of Oregon it truly is the top scoring.
You can take the top three and interview them but nowhere in those interviews or any
subsequent look, can you ask for price."
LCRB Member Henderson gave a scenario where the city's engineered estimate was half of
what the most qualified person's fees were and we cannot agree. Senior Management
Analyst Barrett said at that point you could interview the next qualified person. LCRB
Member Snider said that is why we agreed at a prior meeting that we would want staff,who
are the experts, to make a recommendation that we not move forward or go ahead with the
next firm in line.
Senior Management Analyst Barrett said this is not a very popular rule across the state and it
may become even less popular if certain bills pass in the legislature. He said proposed
legislation would reduce the $250,000 cap to $100,000, making even more projects subject to
this law.
City Attorney Ramis addressed LCRB Member Henderson's concerns and said not only
would the staff agree with his point but the city attorney's office does too. He said the
difficulty is that this issue is controlled in Salem. The controversy has been battled over
several years, and at this point a few specialty professions have been able to secure this
particular right through legislation. Local governments that have opposed this have not
been successful. He suggested Council talk to their legislators because this is not the
direction they are moving and, "that is not especially good for us."
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LCRB Member Henderson said the current law is extreme and cuts a lot of good consultant
groups out of the running. He referred to the Dirksen Nature Park design proposal and
said, "In my world that number of$457,000 is six percent of the project. We can't afford an
$S million product. I would rather go back and ask them to design something for$5
million." He said the LCRB would then have control. LCRB Board Member Buehner said
no one on council was disagreeing with him but the city must follow state law.
CJ City Engineer Stone spoke on the issue of large professional services contracts and said
a lot of the work that the engineering profession does is repetitious from one city to the
next. Staff has a good idea of what each city is being charged for like services. This basis
has been used by staff to determine whether or not we are getting a fair price. He said this is
what we can talk to the vendor about. Consultants also know that staff will do a comparison
to other jobs, particularly with road projects.
18 LCRB Member Snider asked if a government body can willingly violate the rule, as a
protest. City Attorney Ramis said, "No. It would place our contracts in a position where
they might not be enforceable." He said a contractor could sue because we did not follow
the state statutes and the city would have a lot of exposure.
19 LCRB Member Woodard referred to the exemptions and said he did not have an issue
with the rules because we must follow the statutes. He said he had a concern about
contracts being amended without LCRB approval. It was his impression that they could be
amended up to ten percent but it appears now that threshold is higher and he asked for the
reasoning behind it, saying he would be concerned if there was a 30 percent change. City
Engineer Stone replied that a 30 percent change would get everyone's attention. He said an
amendment of that amount would clearly indicate that the project scope has changed. He
said in that case, it would be staff's obligation to tell the LCRB that the scope has changed
and either the budget needs to be approved or the project needs to be dialed back. He said
the advantage is that staff can continue to move a project forward as long the approved
project budget is not exceeded.
Senior Management Analyst Barrett said this rule applies to all contracts. The LCRB raised
it to 25 percent last year. He said the real push behind this is that a project cannot be
stopped if staff didn't have the ability to sign that amendment. He clarified that it is the
approved project budget for the fiscal year.
LCRB Member Buchner used the example of building something for the upcoming water
project and said it would cost the millions in lost time and wages if every change order had
to come to Council.
EDPublic Works Director Koellermeier clarified that when selecting professional
consulting staff we want the very best we can get. Having good design and oversight can
save the city money because a good design can save money at the construction end. He said,
"The premise of this rule as promulgated by the state is to allow us to find the very best
contractor that is qualified to do the work for us, so we can save the big money at the
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construction end of the project. Please don't lose sight of that. That is the goal we are trying
to accomplish."
1@LCRB Member Snider referred to the practice mentioned by City Engineer Stone
of keeping an eye on what other cities are paying for similar services and said there is a major
weakness in this approach. Everyone could be paying twice as much as they should be
paying,if there is collusion involved. City Engineer Stone said he understood LCRB
Member Snider's issue with this but noted that there is a check in the process and that is the
federal government. Many of these professionals also do business with the federal
government and are only allowed to charge the federally audited rate. So if our costs are in
line with federal audited rates, the theory is that we are supposed to be getting a good rate.
LCRB Member Henderson said he is concerned that the city cannot afford the
Dirksen Nature Park design. LCRB Chair Cook asked staff if the QBS included a project
scope and our budget. City Engineer Stone said there was a project scope that listed the
acreage and outlined what we wanted to see in a park design,but the budget was not
discussed. City Engineer Stone said part of the process is that as they bring us designs,we
can say, "No, this is too much. Redesign it and bring it back. It all depends on what we tell
them we want the park to look like."
LCRB Member Woodard said the Dirksen Nature Park design and planning occurred within
the PRAB and included street improvements, trail design and two fields. He said the
product of the QBS is a master plan that is good for twenty years and we can phase out the
building and use it to apply for grants for the life of the plan. City Engineer Stone said as
long as we have a master plan,we can build it out. We can only do what we can afford and
can choose to build certain portions of it whenever we want.
City Manager Wine used the Dirksen Nature Park as an example,and said if the City of
Tigard spends $457,000 for a master plan product, then that is the investment we are
making. If design constitutes eight percent of construction,we will have this question
before us with each park we are investing in with park bond funds. But we will have in place
a design and a master plan for the investments we will eventually make in that park.
LCRB Member Snider said, "I'm still back to the QBS. How do you end up spending only
$250,000?" City Engineer Stone said what we asked the consultant to do is give us the ideal
master plan for the ideal park. We can decide during the process to limit the scope of work
and then it would be cost less. LCRB Member Snider asked, and City Engineer Stone
confirmed,if the consultant completes it more quickly than estimated,it could cost less.
LCRB Member Snider said a QBS contract does seem different than a paving contract and is
not boxing us in the way he first thought.
LCRB Member Buehner said she wanted to return to discussing the larger contracts,which
are not park designs. She said with contracts for the water plant design her primary
concern is to get the best designs, and in this case 30-35 percent of the project cost may be
spent on design. She said she did not want the LCRB to lose sight of the fact that most of
the QBS contracts will be for large construction projects.
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Senior Management Analyst Barrett said there will also be changes to how we handle smaller
contracts for these five professions. The direct appointment ceiling is now$100,000.
LCRB Member Buehner asked if the Finance Department could keep council informed of
potential legislation. She suggested being proactive and getting the League of Oregon Cities
involved. She wants Tigard to take a leadership role as one of the larger cities in Oregon.
City Manager Wine said Assistant City Manager Newton will add this to our state legislative
committee and help convey council's concerns.
HCity Attorney Ramis confirmed that there are circumstances where QBS works pretty
well but in other circumstances it does not.
LCRB Member Woodard asked about exemptions. Senior Management Analyst Barrett said
the only new one is for temporary personnel services. He said we will use them but instead
of calling three different agencies we would call one agency and get three resumes and do
interviews.
As no one signed up to give public testimony,LCRB Chair Cook asked if anyone in the
room wished to testify. There was none.
Senior Management Analyst Barrett said the staff recommendation is for the LCRB to
approve the revisions to the public contracting rules.
LCRB Chair Cook closed the public hearing at 8:18 p.m.
LCRB Member Buehner moved to approve the LCRB Resolution No. 13-01 and LCRB
Member Snider seconded the motion. The motion passed unanimously.
A RESOLUTION ADOPTING REVISED PUBLIC CONTRACTING RULES
Yes No
LCRB Member Woodard ✓
LCRB Chair Cook ✓
LCRB Member Buehner ✓
LCRB Member Henderson ✓
LCRB Member Snider ✓
Mayor Cook announced that the City Council is reconvening for the remaining items on the agenda.
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6. RECEIVE BRIEFING ON A LOCAL AGENCY AGREEMENT WITH ODOT TO
PARTIALLY FUND MAIN STREET PHASE I IMPROVEMENTS FROM PACIFIC
HIGHWAY TO THE RAILROAD CORRIDOR
City Engineer Stone said this briefing will cover the changes in the intergovernmental
agreement with ODOT which will move funding for Phase II of the Main Street Green
Street project into Phase I to pay for additional design and testing costs in the finalization of
construction plans and specifications. The agreement will come before Council at a future
business meeting.
Mayor Cook asked City Engineer Stone for details on the changes and asked if the changes
were initiated by Council or if there were issues discovered by contractors. He noted the
project increased by $425,000 which is more than ten percent of the project. He asked if
taking this amount from Phase II means that phase will have to be backfilled. City Engineer
Stone said a concern was expressed by businesses about access across the water feature.
There were access issues at the Diamond building and also with the "eye" in the road.
He noted that each time we ask a consultant to change something on this project, ODOT
adds their own fee.
City Engineer Stone said the goal for this project is to design a roadway that handles storm
water in a different way. With these water features,water is diverted as much as possible
from the roads and sidewalks into a planter area where the water is partially treated before
going into the storm water system. We have already done this on Burnham and along Main
Street from Scoffins to 99W.
Councilor Buehner said the city received complaints from some businesses along Main
Street about the designs after initially approving them. She wanted people to understand
that most of this extra work is redesign related to the city being"business friendly." She
expressed concern that some businesses caused the city to go back and redesign because
they couldn't get relevant driveway information to us. She said this is a policy
discussion to talk about later.
City Engineer Stone said ODOT requires a certain level of certainty as to what the project is
estimated to cost and wants the funding in place before they award the construction
contract.
City Engineer Stone showed a diagram illustrating the money movement between project
phases. He said the original project estimate was $3 million and now it is estimated at$3.4
million so $400,000 is being moved from Phase 11 to Phase 1. He said the actual cost could
be lower than anticipated. In that case,because this is a grant, the money could be moved
back into Phase II.
Councilor Snider asked about the impact on Phase II and City Engineer Stone said if the
entire $400,000 is needed in Phase 1, the city's match for the grant will increase by $425,000
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for Phase II. Mayor Cook noted that once we figure out what the actual cost is for Phase I,
we will know the impact on Phase II well before we start design.
7. RECEIVE BRIEFING ON A LOCAL AGENCY AGREEMENT WITH ODOT TO
PARTIALLY FUND MAIN STREET PHASE II IMPROVEMENTS FROM THE
RAILROAD CORRIDOR TO SCOFFINS STREET
(This item was discussed at the same time as Agenda Item 6.)
8. RECEIVE BREIFING ON AN INTERGOVERNMENTAL AGREEMENT WITH
WASHINGTON COUNTY FOR THE WALNUT STREET IMPROVEMENT
PROJECT
City Engineer Stone reported that he is not sure when this work will start because there have
not been any meetings yet. Mayor Cook said that might be a good thing because it may
mean there is more time to give input. He noted that there are two Walnut Street projects.
Councilor Buchner said the design for the Tiedeman to 116`''Avenue work was done years
ago and the right of way was purchased so she did not think there was much that needed to
be done to get this started.
Council President Henderson noted that each time an amendment is passed it affects the
budget, and asked if we are paying attention to this. City Engineer Stone said this particular
project is being funded by Washington County, except for utility work that will be funded
out of public works enterprise funds (sewer and utility underground fund). City Manager
Wine responded to Council President Henderson's question and said that when we approve
IGAs it means there is probably a commitment to using funds. She said that as members of
the Budget Committee, Council will see the Capital Improvement Plan and this will be listed.
Councilor Buehner said the $680,000 is what the city will pay rather than the millions it
would have cost if Washington County was not doing the project.
Councilor Woodard asked about residential concerns in these two areas of Walnut Street.
City Engineer Stone said there will be impacts to some properties and acknowledged that
this project has been planned for so long, residents may have forgotten about it. He said
Washington County will be notifying residents of construction work in their area.
Councilor Buehner requested that side street residents be notified of work on Walnut too
(Tiedeman, Fonner, and 112th avenue) because the side street residents were not notified
the last time Walnut was under construction.
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City Engineer Stone said there will be also be message boards at major intersections prior to
construction, advertising public hearings to let people know when they can come and
comment on the project.
Councilor Woodard asked about the Fanno Creek Trail under the Scholls Ferry Road Bridge.
He said it often floods and asked if there was a way to construct something to keep water off
of the trail. He said citizens have been sending photographs of the flooding. City Engineer
Stone said the repair would be easy but the permits would be difficult to secure from Clean
Water Services. He said attempts are being made to control the water elevation downstream.
Councilor Woodard replied that it still floods. City Manager Wine said the city has received
extensive communication on this and she will report back to Council.
9. COUNCIL LIAISON REPORTS— 10 IRCouncilor Buehner reported on a briefing
received at the Water Consortium meeting on earthquake damage and mediation focused on
water. It was a compelling presentation because citizens have always been told to have
enough food and water for 72 hours but in the event of a major earthquake we will more
likely be looking at three months where roads and infrastructure will be destroyed. Supplies
would be delivered from eastern Oregon.
She said it is likely that in such an event a tsunami would arrive on the coast. The
earthquake would measure 7 or 8 in the Willamette Valley and probably 5 in the
Bend/Redmond area. The speaker said there are zero infrastructure projects of sufficient
stability to survive such a quake. Our water plant will be the first. But we need to get water
to the plant. One thing we need to do is upgrade infrastructure. She said at the legislature,
House Resolution 3 was proposed to motivate local governments to start revamping
emergency infrastructure and emergency management processes designed for three-day
emergencies to three-month periods. She suggested that Council get online and read the
entire report. She said the city needs to get the word out to our citizens. Councilor
Woodard said he supports preparation and recommended that Mike Lueck take the lead.
Council President Henderson said the CDBG grant program has $3 million in HUD funds
to distribute to the cities in the county. Tigard is in a group of eight cities that pool their
money to do larger projects. Money is provided for low-income housing and
infrastructure. He said there is twice as much need as they are able to fund. Five percent
may be lost due to sequestration. Councilor Buehner mentioned the need for disabled
veteran housing. She said it is an important program and she appreciated Council President
Henderson's involvement on the grant committee.
10. NON AGENDA ITEMS - None
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11. ADJOURNMENT
At 9:02 p.m. Councilor Buchner moved for adjournment. The motion was seconded by
Councilor Henderson. All voted in favor.
Yes No
Councilor Woodard ✓
Mayor Cook ✓
Councilor Buchner ✓
Council President Henderson ✓
Councilor Snider ✓
Carol A. Krager,Deputy City Recolffer
Attest:
Chair,T' City Center Development Agency
Date: 2- , /
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