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CCDA Minutes - 11/01/2016 IN City of'Tigard Tigard City Council & CCDA Meeting Minutes November 1, 2016 la STUDY SESSION Council Present: Mayor Cook, Councilor Henderson, Councilor Woodard, Council President Snider and Councilor Goodhouse Staff Present: City Manager Wine, City Attorney Olsen,Public Works Director Rager,Division Manager Goodrich,Lake Oswego-Tigard Water Partnership Director Koellermeier, Finance and Information Services Director LaFrance and City Recorder Krager A. COUNCIL LIAISON REPORTS Councilor Henderson asked about a newspaper advertisement for River Terrace housing that mentioned multiple swim centers. Mayor Cook said pool amenities were included in the developer's plans from the beginning. Councilor Henderson announced that the Behavioral Health Collaborative Center is moving all intakes to Hawthorne Center,which is near the MAX line in Hillsboro. He noted that Oregon is rated 49`h in the nation for mental health spending and needs more mental health facilities. Councilor Woodard reported on the Trick or Treat Main Street Halloween event which attracted a large crowd. He referred to the previous council discussion on the civic center and said he will remain open-minded but will be interjecting ideas about combining a recreation center with a civic facility. He noted that he requested Assistant City Engineer McMillan develop three images for this idea and said he wants to be involved. City Manager Wine said while the Leadership and Study Teams will make recommendations it is the City Council that will make the decisions and there will be multiple opportunities for their input. She noted that council was invited by consultants Barney and Worth to give input to their survey. Mayor Cook said he asked that a discussion be added to a council workshop meeting. Councilor Woodard asked Public Works Director Rager to pass along kudos to Assistant City Engineer McMillan. Mayor Cook spoke about the great job the businesses did during the Halloween event and said he thanked them for participating and allowed them to hand out business cards and coupons. He noted that even some businesses not directly on Main Street such as Tigard Tap House,Frame Central and La Fuente Restaurant also participated. TIGARD CITY COUNCIL MEETING MINUTES—November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 1 of 14 Administrative Items: City Manager Wine said City Attorney interviews will be held on November 22 at 6:00 p.m. and reminded council that they are scheduled to tape their TVCTV holiday greeting at 7:15 p.m. that same evening. Council meals will be delivered at 5:30 p.m. EXECUTIVE SESSION At 6:47 p.m. Mayor Cook read the citation for an executive session called under ORS 192.660 (2) (� to consider records exempt by law from public inspection. The executive session ended at 7:11 p.m. 1. BUSINESS MEETING A. At 7:30 p.m. Mayor Cook called the City Council and City Center Development Agency meeting to order. B. City Recorder Krager called the roll. Present Absent Councilor Goodhouse ✓ Councilor Henderson ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook ✓ C. Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Mayor Cook called for non-agenda items. None 2. CITIZEN COMMUNICATION A. Follow-up to Previous Citizen Communication -None B. Citizen Communication—Sign-up Sheet. —None 3. CONSENT AGENDA: (Tigard City Council&CCDA) A. RECEIVE AND FILE • Council Calendar • Council Tentative Agenda for Future Meeting Topics TIGARD CITY COUNCIL MEETING MINUTES — November 1, 2016 City of Tigard 1 13125 SW Hall Blvd., Tigard, OR 97223 w-xvw.tigard-or.gov I Page 2 of 14 B. APPROVE CITY COUNCIL MINUTES: • September 20, 2016 • September 27, 2016 C. CITY CENTER DEVELOPMENT AGENCY-APPROVE CCDA MINUTES: • September 6, 2016 • October 4, 2016 Councilor Woodard noted that he was absent on September 27 and October 4. Council President Snider moved for approval of the Consent Agenda as proposed and Councilor Goodhouse seconded the motion. The motion passed unanimously. Yes No Councilor Goodhouse ✓ Councilor Henderson ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook ✓ 4. CONTINUED LEGISLATIVE PUBLIC HEARING - CONSIDER MARIJUANA FACILITIES ORDINANCE a. Associate Planner Kowacz and Assistant Community Development Director McGuire presented the staff report for the ordinance which brings forward changes recommended by the council at the October 18 legislative public hearing. b. Council discussion—None. C. Council consideration of Ordinance No. 16-22. Councilor Woodard moved for adoption of Ordinance No. 16-22. Council President Snider seconded the motion. City Recorder Krager read the number and tide of the ordinance. ORDINANCE NO. 16-22 -AN ORDINANCE AMENDING THE TIGARD DEVELOPMENT CODE (TITLE 18) TO ADOPT TEXT AMENDMENTS TO CHAPTER 18.735 (MARIJUANA FACILITIES) THAT REDUCE SPACING REQUIREMENTS BETWEEN FACILITIES AND CHANGE PERMITTED HOURS OF OPERATION City Recorder Krager conducted a roll call vote. TIGARD CITY COUNCIL MEETING MINUTES —November 1, 2016 City of Tigard 1 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov I Page 3 of 14 Yes No Councilor Goodhouse ✓ Councilor Henderson ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook ✓ Mayor Cook announced that Ordinance No. 16-22 passed unanimously. 5. LEGISLATIVE PUBLIC HEARING: 2016 OMNIBUS CODE AMENDMENT PACKAGE a. Mayor Cook opened the public hearing. b. City Attorney Olsen read the hearing procedures. C. Staff Report— Associate Planner Kowacz and Assistant Community Development Director McGuire gave the staff report which included a PowerPoint presentation. Ms. Kowacz said three amendments are in this omnibus code amendment package. She said the first is in response to a request from council for staff to consider the current regulations for animal boarding.The second amendment is to raise building height limits in the Main-Center sub- area in the Tigard Downtown Plan District and the third is to amend the Tigard Triangle Plan District to allow multi-family dwelling units within the General Commercial zone. Associate Planner Kowacz said staff researched how nearby cities zone animal boarding and the staff recommendation is to change the classification of animal boarding from Animal- related Commercial to Personal Service which would allow it in most commercial zones. She noted that it would be prohibited in residential zones. Associate Planner Kowacz said the second amendment is to raise building height limit from 45 feet to 80 feet in the Main-Center sub-area in the Tigard Downtown Plan District. Prior to the establishment of the Downtown Plan District the zone was called the Central Business District and had 80 foot height limits. In 2010,when it became the Downtown Plan District it was divided into four sub-areas and two retained the 80 foot limit but two received reduced height limits to 45 feet due to a perceived conflict with the existing development on Main Street. Increasing the height would make new construction more financially feasible in the downtown. Ms. Kowacz said the Tigard Triangle has two zones: Mixed-Use Employment (WE) and General Commercial (CG). Multi-family housing is currently allowed in the MUE zone at 25 units per acre and allowed in the CG zone only through a planned development review and is limited to 25 percent of the gross floor area of the building.The proposed change supports the Tigard Triangle Strategic Plan which emphasizes this area as a mixed-use employment area with a convenient pedestrian and bikeway system. The plan also recommended greater housing choices and affordability and this code change would allow for more housing options in the Triangle. TIGARD CITY COUNCIL MEETING MINUTES—November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 4 of 14 Council has been copied with public comment letters and emails,including those from Steve Martin,Bill Kabeiseman,Rachel Duke from Community Partners in Affordable Housing, Sheila Greenlaw-Fink from Community Housing Fund, and Richard Shavey. ODOT commented that this code amendment satisfies the criteria for the transportation rule. d. Public Testimony— Rachel Duke, Community Partners for Affordable Housing,P. O. Box 23206,Tigard OR 97281, said she was very supportive of the omnibus code amendments and is excited about the proposed changes in the Triangle because they support the vision of the Triangle and multi-family housing will be a great asset. Another reason CPAH is excited about this is because there is an affordable housing crisis in the metropolitan region. Recently publicity covered the Walnut Tree Apartments in Tigard where close to 40 families lost their housing. CPAH is proposing to build multi-family housing in the Triangle on some property they own that will be regulated. Their mission is to provide affordable housing and this amendment would make that possible in the Triangle. She thanked the city for previous support and noted that they cannot do this on their own;it is through public/private partnerships with jurisdictions they serve that they can provide these resources. No other testimony was given. e. Council Questions— None f. Staff Recommendation—Associate Planner Kowacz said the staff recommendation is for the City Council to approve the code amendments as recommended by the Planning Commission. g. Council Discussion— Council President Snider referred to feedback from Bateman/Seidel and asked if staff shared any of the concerns raised about the potential for unintended adverse impacts and whether or not this change in the Triangle is too broad and does not require review. He asked for clarity on the impacts regarding tax lots 400 and 402 specifically noted in their letter. Assistant Community Development Director McGuire responded that the comments were reviewed and discussed at the Planning Commission meeting and staff does not share concerns that opening General Commercial in the Triangle to housing would prevent commercial development. He said the owners are in a situation where the location,lot pattern and ownership pattern will have more influence on potential business and developer interest in those properties. Mr. McGuire said one of the tax lots referred to is currently under Planning Commission review for an oncology center and he believed it would likely develop in a few months so it will no longer be on the table as potential housing. In response to a question from Council President Snider on access to the property,Mr. McGuire replied that public works and engineering staff are working with the property owners and applicants on access issues.At TIGARD CITY COUNCIL MEETING MINUTES —November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 5 of 14 present there is no requirement for them to extend the street or create that access. It is an aspiration of the Triangle plan but the only requirement in the code is a possible bike/pedestrian connection. He noted that the proposed oncology center property owner has access on 72nd and also an access agreement with the owner of the Walmart property to the west.A similar agreement could be worked out for the other property although there are some slope issues. Councilor Woodard asked if the code change will help the doggie daycare business on Barrows Road get back into business. Assistant Community Development Director McGuire said the code amendment would allow it. Mayor Cook said it was unknown if that particular business would reopen. Councilor Woodard said he had mixed emotions about raising the height on Main Street because his memory from discussions in 2010 was that having a 45-foot height allowed drivers on Highway 99W to view the downtown but allowed taller buildings on the east side of Main Street. He said he did not want the activity downtown visually blocked from Highway 99W by a row of buildings. Being able to see helps market and promote the downtown. He said he also needed to be convinced that there was adequate infrastructure and parking. Councilor Goodhouse commented that more events and more people living and working there will attract people to come downtown. Mayor Cook noted that the peak of Symposium Coffee almost reaches the viaduct level. 45 feet is another 20 feet above that so if all Main Street roofs were built to current code drivers would not be able to see over them anyway. Council discussed the cost effectiveness of multiple stories when building. Councilor Henderson noted that building up would get rid of the current problem of unsightly rooftops. Redevelopment Project Manager Farrelly said the price break is below six stories. Five stories of wood can be built on a concrete base. Above six stories there must be steel framing. Mayor Cook said he is favorable to having greater housing choices and housing affordability but is concerned about taking the CG zoned land and allowing anything to be built. We need jobs and housing and if we give up job land for housing it upsets a balance.The housing under discussion tonight is not retail on one floor and housing above as envisioned for the Triangle.Allowing housing anywhere in General Commercial areas can cause some lots to be unbuildable. Council President Snider asked staff if the mayor's concerns could be addressed through a conditional use process. Assistant Community Development Director McGuire said conditional use usually looks at aspects such as parking, offsite impacts on a specific location basis. He clarified with council the concern is that opening it up to a property developer to choose whether they want to build commercial or residential, they would rather see combine TIGARD CITY COUNCIL MEETING MINUTES —November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 6 of 14 mixed use in CG. Assistant Community Development Director McGuire said the Planning Commission took under consideration that there is a finite number of properties that are zoned CG in the Triangle.The Triangle Plan and complete rezoning is coming up in six- eight months so this is a window to allow an affordable housing project to be built. He addressed unintended consequences and said it does open it up to market choice and for owners to analyze the market and do what they think is best. He noted that even when zoned MUE a developer could choose between all housing and all commercial. In response to a question regarding the Triangle acreage Associate Planner Kowacz said there are 450 acres in the Triangle and less than half is zoned CG. There will be less once the proposed lean code comes forward. Mayor Cook asked about the location of the CG acres. Assistant Community Development Director McGuire said staff will project a map on the screen. He said the majority face 99W. Some are near Costco,Walmart and Winco and there are also some smaller areas including Mr. Martin's property. Council President Snider offered support for affordable housing but suggested if that is the problem staff is trying to solve;the code amendment seemed like a broad brush approach. He was supportive of making an exception tonight for one affordable housing project but was worried about unintended consequences Councilor Woodard asked about commercial vs. mixed use property valuation. Mr. McGuire said he did not know for certain but the change proposed does not take away any of the uses allowed now;it adds one and he assumes this would add to the value. Councilor Woodard said there is enough big box retail. He likes the idea of creating a mixed-use village and not just apartments. He suggested apartments may be good transitions from the big box stores. Councilor Goodhouse said, "It is a blank canvas with one shot to get it right." If there is any hesitation,we need to look into it before it gets developed.A mistake here can affect not only Tigard but the entire region. Mayor Cook asked staff about portals and transportation, specifically when a developer would become responsible for building a road or the excess capacity. He said the first one in has plenty of parking,but a developer coming in later may not be able to afford to build because of greater costs due to less capacity for transportation infrastructure. He noted that if the SW Corridor project goes ahead there may be a Highway 217 flyover but there is no guarantee that the flyover will have automobiles,which would completely change the funding source. He asked how to make it more fair and if the Local Improvement District (LID) process could be used,whereby the first person in and the last person in pay a share. Council President Snider asked staff what they thought Community Development Director Asher and Economic Development Manager Purdy (not present) would say about this discussion. Assistant Community Development Director McGuire said we are moving towards mixed use in the Triangle. This is a 20-year vision and we are reinforcing it now. Allowing residential development in the CG Zone is a form of mixed use. The other direction the city TIGARD CITY COUNCIL MEETING MINUTES —November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 7 of 14 is going with the Triangle code is to back off on regulations and allow the market to generate the pattern. Redevelopment Project Manager Farrelly replied that he thought Mr.Purdy would say allowing residential near commercial property is by definition mixed use. It promotes walkability and supports the SW Corridor. Allowing residential lets the market decide where the best place is for residential and the best place for commercial rather than having artificial lines drawn by planners. Councilor Woodard said the city is looking at making this a potential urban renewal zone. That is a way to subsidize affordable housing for 20 years and this may make it more palatable to developers and there would be the opportunity for a vertical housing zone. Councilor Henderson said the 72nd Avenue and Dartmouth Street area is almost a district in itself and is a jewel for Tigard. He asked if it is possible to carve out an area to preserve the CG zoning.Assistant Community Development Director McGuire said a sub-area could be created. Associate Planner Kowacz showed council a map indicating where the CPAH project is. Leaving in the Planned Development process but changing the 25 percent was discussed. Redevelopment Project Manager Farrelly recommended keeping the Planned Development process to maintain that extra level of review and getting rid of any requirement for commercial. He said this would enable the project at hand to obtain financing. Assistant Community Development Director McGuire said having residential development go through a planned development review process would require notification to all neighbors. Mayor Cook said he could support that. City Attorney Olsen suggested staff could amend the ordinance deleting reference to Tigard Triangle provisions and could start over with an ordinance specific to the Triangle. Councilor Goodhouse said council could wait and do everything together in six months when the other code changes are considered. Council President Snider said the affordable housing development is a critical need for the community so he did not want to delay. Councilor Woodard moved to approve Ordinance No. 16-23, striking 18.620 Tigard Triangle Plan District. The motion died. City Attorney Olsen read his notes on what would change in the ordinance language. Council President Snider requested that staff and the city attorney take time to mark up an amended ordinance and provide hard copies to council for clarification. h. Mayor Cook closed the public hearing. Council President Snider moved to table the item while the city attorney and staff prepare the requested documentation. Councilor Woodard seconded. Mayor Cook conducted a vote and the motion to table passed unanimously. TIGAR.D CITY COUNCIL MEETING MINUTES — November 1, 2016 City of Tigard 1 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov I Page 8 of 14 Yes No Councilor Goodhouse ✓ Councilor Henderson ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook ✓ Council moved on to Agenda Item No. 6 at 8:28 p.m. Council returned to this item (Agenda Item No. 5) at 9:22 p.m. i. Council Deliberation and Consideration of Ordinance No. 16-23 City Attorney Olsen said when discussing with staff there was some concern about delaying the decision on the multi-family project in the Triangle Plan District by not adopting it tonight. He said there are two options. One would be to adopt everything except the Tigard Triangle Plan language related to multi-family housing. The second option is to adopt amendments to Chapter 18.620 with suggested language. Instead of language approved by the Planning Commission for the Tigard Triangle, the following would be added, "In addition to the uses permitted by Chapter 18.520 (Commercial Zoning Districts),multi-family dwelling units are permitted in the CG zone through a Planned Development review. Minimum and maximum density requirements do not apply to these developments. The floor area limit on multi-family development provided for in the Planned Development Chapter shall not apply." City Attorney Olsen distributed paper copies with the changes marked for council review. Mayor Cook reopened the public hearing and asked those in the audience that had commented to respond to these suggested changes prior to council voting on them. Rachel Duke, Community Partners for Affordable Housing, said they can live with the wording. Their main concern was to be able to respond in a timely fashion in case they are awarded the funding they just applied for. She said one of their board members is in the audience tonight and CPAH is excited to be in the Triangle and build housing. They want to do what they can to facilitate that and will work closely with staff to make this work. Steve Martin said he lives on Tax Lot 401 in the Triangle and they objected to the blanket approach. He said the analysis tonight was excellent. He said he did not want the housing development held up but at the same time did not want his property to be negatively impacted. He noted that the projects are in different parts of the Triangle. Council President Snider clarified that there will be more scrutiny with the suggested amendment where there would have been none before. Mayor Cook said residential development will go to the Planning Commission and their decision can be appealed to the Council. Assistant Community Development Director McGuire said it has elements that a regular apartment TIGARD CITY COUNCIL MEETING MINUTES —November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 9 of 14 complex building in a multi-family zone does not have including private outdoor space and a 20 percent open space requirement. Mr. Martin noted the idea of sub-districting was discussed which would affect the CPAH project more than it would him. He was favorable towards the suggested amendment which puts residential development under more scrutiny but which will allow the affordable housing project to get underway. Mayor Cook noted that Mr. Martin was a member of the Tigard Triangle Citizen Advisory Committee and has been involved from the beginning. Mayor Cook closed the public hearing. City Attorney Olsen read the changes staff made to the proposed ordinance. o Added to Section 2 at the end "except that Chapter 18.620 is amended as provided in Exhibit B-1 rather than as shown in Exhibit B. o Exhibit B-1 reads, "In addition to the uses permitted by Chapter 18.520 Commercial Zoning Districts, multi-family dwelling units are permitted in the CG Zone through a Planned Development review. Minimum and maximum density requirements do not apply to these developments. The floor area limit on multi-family development provided for in Section 18.350.040.C.2 shall not apply. Council President Snider moved to approve amended Ordinance No. 16-23 as described by the City Attorney. Councilor Henderson seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 16-23 —AN ORDINANCE AMENDING CHAPTER 18.130 (USE CATEGORIES), 18.510 (RESIDENTIAL ZONING DISTRICTS), 18.520 (COMMERCIAL ZONING DISTRICTS), 18.610 (TIGARD DOWNTOWN PLAN DISTRICT),AND 18.620 (TIGARD TRIANGLE PLAN DISTRICT) FOR THE PURPOSE OF ADOPTING AN OMNIBUS AMENDMENT PACKAGE TO CLASSIFY ANIMAL BOARDING AS A PERSONAL SERVICE USE CATEGORY, INCREASE HEIGHT LIMITS IN THE MAIN-CENTER SUB-AREA OF THE TIGARD DOWNTOWN PLAN DISTRICT,AND ALLOW MULTI-FAMILY DWELLINGS IN THE GENERAL COMMERCIAL ZONE WITHIN THE TIGARD TRIANGLE-(DCA2016-00003), as amended City Recorder Krager conducted a roll call vote. Yes No Councilor Goodhouse ✓ Councilor Henderson ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook ✓ TIGARD CITY COUNCIL MEETING MINUTES —November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 10 of 14 Mayor Cook announced that Ordinance No. 16-23 as amended was adopted unanimously. 6. PRESENT POLICY AND IMPLEMENTATION RELATING TO TRANSIENT LODGING Finance and Information Services Director LaFrance gave the staff report and said it is the beginning of a public discussion that began last year with the Budget Committee regarding potentially funding the Tigard Downtown Alliance (TDA) with a Transient Lodging Tax (IIT). There is currently a Washington County TLT but this would be a separate tax on Tigard hotels, motels and Airbnb stays. Mr.LaFrance gave some background on TLTs. The average rate within the state is 7.5 percent. There is a requirement that 70 percent of what is collected must be spent on tourism promotion or tourism-related facilities. The remaining 30 percent can be used for general governmental activities. The agenda packet for this item contained a lengthy presentation from the League of Oregon Cities conference. A sample ordinance was provided should council decide to move ahead on this in the future. Mr. LaFrance described tourism promotion as advertising,publicizing and distributing information for the purpose of bringing in tourists. It can be used for planning for tourism development, marketing and special festivals and events.The tax could also be used to fund an economic development division which would allow the city to expand its economic development reach. A tourism facility is defined as a convention center,a conference center or visitor information center but it can also include improved real property with a useful life of ten years or more that has a substantial purpose of supporting tourism or accommodating tourist activities. TLT revenues can be spent on those items. There is also a definition of a tourist and that is a person who for business or pleasure,recreation, or participation in the arts,heritage, culture,and travels to the community in which that person is a resident of a different community. For the tourist trip the person must travel more than 50 miles from their community of residence, or they must have an overnight stay. Mr. LaFrance has begun outreach with a general manager at Embassy Suites. He said there are differing opinions on how TLT funds can be spent. There would need to be evidence that the Tigard Heritage Trail or Tigard Balloon Festival are actually attracting tourists. Mayor Cook asked for an example of an event at Embassy Suites that would attract tourists. Even if the funds helped pay for a performing arts center,he questioned whether people would meet the definition by traveling 50 miles to watch local theater. He noted that Seaside has a convention center and the TLT helped retire the existing debt. He asked if the Balloon Festival could be funded because the balloonists stay in Tigard motels. Councilor Goodhouse commented that Seaside is a tourist destination but Tigard is not. Councilor Woodard noted the potential for BMX biking events. He asked if street fairs qualify. Mr. LaFrance said if Tigard's event is promoted more than 50 miles away, the TLT can be spent on it. Mayor Cook asked Mr. LaFrance to bring back a laundry list to help figure out what projects can go into the 70-30 percent. He said he would like to know where the city is already spending money that could be recouped and put back into the general fund. He asked if the tax could be used to add a TIGARD CITY COUNCIL MEETING MINUTES—November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 11 of 14 second baseball field to Dirksen Nature Park so that a Babe Ruth Baseball tournament could be held or if building a BMX track near the Tigard Heritage Trail could be covered. He asked if the city wanted to use the tax for a tourism-attracting project, such as a BMX trail,but could not afford to buy the property for ten years, can the TLT be collected and saved in a dedicated fund until then. Finance and Information Services Director LaFrance said he can develop a model to show how a Tigard TLT could be spent and bring it back to council for continued discussion,including input from the hotel/motel industry. 7. RECEIVE UPDATE ON WILLAMETTE WATER SUPPLY PROJECT INTAKE STRUCTURE ALLOCATION Public Works Director Rager, Lake Oswego-Tigard Water Partnership Project Director Koellermeier,Division Manager Goodrich and Dave Kraska from Tualatin Valley Water District. (TVWD)were present to give an update on this item. Mr. Rager said he briefed council on September 20,2016,introducing this opportunity to purchase water intake capacity from TVWD. Council identified several questions for staff response at the September meeting and Mr. Koellermeier responded in a memo that was in the packet for this meeting. Staff recommendation is that it is a good idea for Tigard to invest in this intake facility. It is a one- time opportunity and the city can pay for it through SDCs.TVWD and the City of Hillsboro have both agreed to language in the agreement whereby if Tigard is either not able to use the intake structure or chooses not to, they will buy back and reimburse Tigard for its investment. Water Partnership Director Koellermeier described the 18-month effort seven jurisdictions spent on crafting a future agreement. The original concept of one agreement for seven agencies did not work as there are different timing needs and issues for each community.There will be four agreements and Tigard may potentially be a party in two of them. The City of Tualatin has opted out of the project. The City of Sherwood is still a partner. A key issue for Tigard was protecting its water rights and they will be protected as part of this agreement.Tigard will grow into needing this water; it is not needed now. However, staff recommends that now is the time to make the investment in this one-time offer. If Tigard chooses not to buy into the project the city will end up with water rights but no infrastructure to use it. SDCs would be used to pay for it so it does not necessitate a water rate increase. Councilor Woodard said water is a precious commodity and the city needs to be ready for future density and development. Council President Snider said it is a smart business and planning move. Councilor Henderson said it is important to keep communication open with the Willamette River Water Coalition and he hoped that meetings are at least held biannually. Mayor Cook discussed the SDC cost. Currently it is about$8,000 and it says it might go up to $8,500. Every time the city raises SDCs it ruffles feathers. Methodology studies can be challenged. Council President Snider said ideally it would be paid for by those who will use the water and that is a ways off. It is good news that we will not have to raise customer rates but increasing SDCs is not so simple. Utility Manager Goodrich said 976 homes with a 5/8-in meter would pay for the $9.5 million cost. After the master planning effort is adopted, staff would move forward with an SDC TIGARD CITY COUNCIL MEETING MINUTES —November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 12 of 14 update. He said from the 2010 experience with the Home Builders they know that water supply is a key issue and they are looking for a fairness doctrine and are not trying to avoid paying their fair share. Mayor Cook noted that water supply is the one issue that stopped Wilsonville from building 15-20 years ago. Councilor Goodhouse said it is a smart decision to invest in water as it is a commodity there will be less of in the future. In response to a question from Mayor Cook about whether the city would need to bond in order to pay the $10 million now,before the houses are built. Utility Manager Goodrich said staff looked out to the year 2021 with River Terrace.With expanding the intake structure most costs are anticipated to occur near the end of the project. Mr. Goodrich said$639,000 would be due by the end of Fiscal Year 2017 which is the buy-in for the existing structure. He anticipated that in 2020 and 2021 there would be some$2 and$3 million payments due but at the same time there will be revenue coming in from additional housing units being built in the city and staff has been assured that 1300 units are coming to River Terrace. King City is also looking at expanding their urban growth boundary and perhaps adding 1300 units in that expansion which would be served by this water also. Council President Snider asked if this can be paid for without raising the SDC cost and Mr. Goodrich said that was correct. Councilor Henderson asked about next steps. Mr. Koellermeier said TVWD will deliver a letter of offer to purchase which will develop into the purchase and sale agreement to be negotiated by the parties. This will come before council in December or January. Council consensus was for staff to move ahead. 8. CONSIDER RESOLUTION CONCURRING WITH WASHINGTON COUNTY FINDINGS REGARDING VACATION OF A PUBLIC SLOPE AND DRAINAGE EASEMENTS IN RIVER TERRACE Public Works Director Rager presented this housekeeping item at Washington County's request. Their findings indicate that previous slope and drainage easements are not needed in some River Terrace lots. This resolution vacates and removes them so they are not an encumbrance on the owners'properties. City concurrence with Washington County's findings is required by Oregon state statutes. Council President Snider moved for adoption of Resolution No. 16-46. Councilor Goodhouse seconded the motion. City Recorder Krager read the number and title of the resolution. RESOLUTION NO. 16-46 - A RESOLUTION CONCURRING WITH WASHINGTON COUNTY FINDINGS REGARDING VACATION OF PUBLIC SLOPE AND DRAINAGE EASEMENTS IN RIVER TERRACE NORTHWEST AND POLYGON AT WEST RIVER TERRACE Mayor Cook asked if there was any further discussion. There being none he conducted a vote and the motion passed unanimously. TIGARD CITY COUNCIL MEETING MINUTES — November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 13 of 14 Yes No Councilor Goodhouse ✓ Councilor Henderson ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook ✓ 9. NON AGENDA ITEMS None. 10. EXECUTIVE SESSION None held. 11. ADJOURNMENT A 9:39 p.m. Councilor Woodard motioned for adjournment. Councilor Goodhouse seconded the motion and the motion passed unanimously. Yes No Councilor Goodhouse ✓ Councilor Henderson ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook ✓ -Z;�&0-1011' Carol A. Krager, City Rec rder Attest: Q�l John L. C06 Mayor a ao! ;;� D to TIGARD CITY COUNCIL MEETING MINUTES — November 1, 2016 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 14 of 14