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City Council Packet - 03/28/2017
111 1 II City of Tigard TIGARD Tigard Business Meeting—Agenda TIGARD CITY COUNCIL MEETING DATE AND TIME: March 28,2017 - 6:30 p.m. Study Session;7:30 p.m.Business Meeting MEETING LOCATION: City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard,OR 97223 PUBLIC NOTICE: Anyone wishing to speak on an agenda item should sign on the appropriate sign-up sheet(s). If no sheet is available,ask to be recognized by the Mayor at the beginning of that agenda item. Citizen Communication items are asked to be two minutes or less. Longer matters can be set for a future Agenda by contacting either the Mayor or the City Manager. Times noted are estimated;it is recommended that persons interested in testifying be present by 7:15 p.m. to sign in on the testimony sign-in sheet. Business agenda items can be beard in any order after 7:30 p.m. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 503-718-2419, (voice) or 503-684-2772 (11)D -Telecommunications Devices for the Deaf). Upon request,the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments;and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers,it is important to allow as much lead time as possible.Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling: 503-718-2410 (voice) or 503-684-2772 (IDD -Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA VIEW LIVE VIDEO STREAMING ONLINE: http://live.tigard-or.gov CABLE VIEWERS:The regular City Council meeting is shown live on Channel 28 at 7:30 p.m. The meeting will be rebroadcast at the following times on Channel 28: Thursday 6:00 p.m. Sunday 11:00 a.m. Friday 10:00 p.m. Monday 6:00 a.m. City of Tigard TIGARD Tigard Business Meeting—Agenda TIGARD CITY COUNCIL MEETING DATE AND TIME: March 28,2017 - 6:30 p.m. Study Session;7:30 p.m.Business Meeting MEETING LOCATION: City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard,OR 97223 6:30 PM •STUDY SESSION 1. COUNCIL LIAISON REPORTS 6:30 p.m. estimated time •EXECUTIVE SESSION:The Tigard City Council will go into Executive Session to discuss labor negotiations under ORS 192.660(2) (d).All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 6:45 p.m. estimated time 7:30 PM 2. BUSINESS MEETING A. Call to Order B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 3. CITIZEN COMMUNICATION (Two Minutes or Less,Please) A. Follow-up to Previous Citizen Communication B. Tigard High School Student Envoy C. Tigard Area Chamber of Commerce D. Citizen Communication—Sign Up Sheet 4. CONSENT AGENDA: (Tigard City Council) These items are considered routine and may be enacted in one motion without separate discussion.Anyone may request that an item be removed by motion for discussion and separate action. Motion to: 7:35 p.m. estimated time A. APPROVE CITY COUNCIL MINUTES: •February 21,2017 •February 28,2017 •March 7,2017 B. PROCLAIM APRIL 17-21,2017 AS NATIONAL COMMUNITY DEVELOPMENT WEEK C. PROCLAIM APRIL AS ARBOR MONTH •Consent Agenda-Items Removed for Separate Discussion:Any items requested to be removed from the Consent Agenda for separate discussion will be considered immediately after the Council/City Center Development Agency has voted on those items which do not need discussion. 5. CONSIDER A RESOLUTION GRANTING EXEMPTION FROM PROPERTY TAXES UNDER TMC 3.50 FOR FIVE NON-PROFIT LOW INCOME HOUSING PROPERTIES 7:40 p.m. estimated time 6. CONSIDERATION OF NAMING TIGARD STREET TRAIL PLAZA"ROTARY PLAZA" 7:50 p.m. estimated time 7. QUASI-JUDICIAL PUBLIC HEARING:APPEAL OF HEARINGS OFFICER DECISION FOR MADRONA RECOVERY CENTER-CONTINUE TO A DATE CERTAIN 8:00 p.m. estimated time 8. NON AGENDA ITEMS 9. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 10. ADJOURNMENT 8:15 p.m. estimated time City of Tigard • • Tigard City Council Meeting Agenda TIGARD March 28, 2017 CITY COUNCIL STUDY SESSION - 1. COUNCIL LIAISON REPORTS 6:30 p.m. • EXECUTIVE SESSION 6:45 p.m. estimated time Mayor Cook will announce: The Tigard City Council will go into Executive Session to discuss labor negotiations ORS 192.660 (2) (d). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660 (4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. The Tigard City Council will adjourn from the Red Rock Creek Conference Room at the end of the Executive Session. ADMINISTRATIVE ITEMS: o Next phone survey starts March 30 o Schedule Council Summer Outreach Council Meeting Calendar March 7* Tuesday Council Business Meeting- 6:30 p.m.,Town Hall 14* Tucsday Council Businc3s Mccting —CANCELLED 21* Tuesday Council Workshop Meeting- 6:30 p.m.,Town Hall 28* Tuesday Council Business Meeting- 6:30 p.m.,Town Hall April 4* Tuesday Council Business Meeting- 6:30 p.m.,Town Hall 11* Tuesday Council Business Meeting- 6:30 p.m.,Town Hall 18* Tuesday Council Workshop Meeting- 6:30 p.m.,Town Hall 19 Wednesday Budget Committee Meeting—6:30 p.m.,Public Works Auditorium 24 Monday Budget Committee Meeting- 6:30 p.m.,Public Works Auditorium 25* Tuesday Council Business Meeting- 6:30 p.m.,Town Hall May 1 Monday Budget Committee Meeting—6:30 p.m.,Public Works Auditorium 2* Tuesday Council Business Meeting- 6:30 p.m.,Town Hall 8 Monday Budget Committee Meeting—6:30 p.m.,Public Works Auditorium (if needed) 9* Tuesday Council Business Meeting- 6:30 p.m.,Town Hall 16* Tuesday Council Workshop Meeting- 6:30 p.m.,Town Hall 23* Tuesday Council Business Meeting- 6:30 p.m.,Town Hall Regularly scheduled Council meetings are marked with an asterisk(*) l-le w! 3 - SUPPLEMENTALACKET City Council Update March 2017 FOR ,MZr % '2Z 9-0 / 7 (DATE OF MEETING) Chamber Update • Leadership Tigard—Non-Profit was this month. Class learned about different types of non-profits, how non-profits are formed, working vs non-working boards, and toured Medical Teams International, and then participated in a NP networking. Interest list for 2018 class on our website under Programs/Leadership Tigard • Scholarship Recipients Selected—Elizabeth Kerns, Cassidy Thornton, Lauren Brown and Jake Wolf— All Tigard High Students. • Announcements coming this week for Community and Chamber Award Winners. Good Morning Tigard (GMT),Thursday A.M. Networking 7:30 a.m.—Weekly 3/29—Whitney Green Acupuncture at Broadway Rose 4/6—Hosted by City of Tigard 4/20- Hosted by Tigard Farmers Market 4/13 and 4/27 currently available Other • 4/4 4:30 p.m.— Ribbon Cutting Grand Opening Whitney Green Acupuncture • 4/5 7:30 a.m.— Leverage Your Membership with the Tigard Chamber @ the Broadway Rose • 4/11—Leadership Tigard—Communications and Media Day • 4/12—4:30 p.m.—Ribbon Cutting/Grand Opening Costa Vida Fresh Mexican Grill • 4/18—5:30—7 p.m. GET Connected After Hours at the Broadway Rose • 4/28—5:30—9 p.m. 2017 Tigard Shining Stars Community Awards Celebration at Embassy Suites Check our event calendar at http://business.tigardchamber.org/events/calendar/for details follow us on Twitter @tigardchamber Tigard Farmers Market Update • Tigard Farmers Market opens its 25th year April 23rd. Come join us in the PW Parking Lot • Mid-week market,Thursdays 8-4 p.m.June—Aug Tigard Street Trail • 1St Annual Farm to Table Dinner! -Save the date 7/21 • Follow us on Facebook at tigardfarmersmarket and on Twitter @tigardfarmers TDA Downtown Updates • Art Walk Mother's Day Weekend, May 2017—Call for artists is out, check the website for details Find us on Facebook at exploredowntowntigard and at www.exploredowntowntigard.com. Follow us on Twitter @Tigarddowntown and on Instagram at downtowntigard 111 4 ` r t FAIRS IJMcO4OMJ2 Ntigardyrof <. M �T Do�r GR(„r e:41ll};R,GINE. tY:1TCj connect.cofrct colaborato climb. AGENDA ITEM NO. 3-D - CITIZEN COMMUNICATION DATE: March 28, 2017 (Limited to 2 minutes or less,please) The Council wishes to hear from you on other issues not on the agenda and items on the agenda, but asks that you first try to resolve your concerns through staff. This is a City of Tigard public meeting, subject to the State ofOregon's public meeting and records laws. .:ll written and oral testimony becomes part of the public record. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. NAME,ADDRESS & PHONE TOPIC STAFF Please Print CONTACTED Name: j I anti ���`swill Also,please spell your name as it sounds,if it help the presiding officer pronounce: ti.124, Yt�'�✓} EX ii Address ° -B`)Y 2.;."2-CC (v City T 51u--c State Cly Zip C,1 Phone No. SC.-1 f Name j��-).� 14\7 – <ptit� Cts Also,please spell your name as it sounds,if it will 4LLY-El help the presiding officer pronounce: Address C� 441"r( city c� State e— Zip r-i- -3 Phone No. 0 I c? Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. SUPPLEMENTAL PACKET FOR CITIZEN COMMUNICATION (DATU OF MEETING) AIS-3061 4. A. Business Meeting Meeting Date: 03/28/2017 Length (in minutes): Consent Item Agenda Title: Approve City Council Meeting Minutes Submitted By: Carol Krager, Central Services Item Type: Motion Requested Meeting Type: Consent Agenda Public Hearing: No Publication Date: Information ISSUE Approve City Council meeting minutes. STAFF RECOMMENDATION / ACTION REQUEST Approve minutes as submitted. KEY FACTS AND INFORMATION SUMMARY Attached council minutes are submitted for City Council approval: •February 21, 2017 •February 28, 2017 •March 7, 2017 OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments February 21, 2017 Minutes February 28, 2017 Minutes March 7, 2017 Minutes INA S TIGARD City ofTigard Tigard Workshop Meeting Minutes February 21, 2017 0 1. WORKSHOP MEETING A. Mayor Cook called the meeting to order at 6:34 p.m. B. Deputy City Recorder Burgoyne called the roll. Name Present Absent Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard I Councilor Anderson ✓ Mayor Cook I C. Mayor Cook asked those attending to stand with him for the Pledge of Allegiance. D. Call to Council and Staff for Non Agenda Items—None. 2. 2017 ANNUAL COURT REPORT Central Services Director Robinson and Municipal Court Judge O'Brien presented this item. Judge O'Brien gave an overview of court programs and discussed the top three programs: • Traffic • Civil infractions • Public information Judge O'Brien discussed highlights of 2016,annual caseload comparisons from 2012-2016,talked about 2016's most common violations and dispositions,explained the diversion program and the requirements of the program,went over safety education programs,compliance program and 2016 budget highlights. He discussed the use of electronic resources,including email communication and an increase of online payments and increased average amount of fines collected,and discussed expansion to the cellphone statute. Central Services Director Robinson said that using more electronic communication tools is one of the goals for next year,and in doing so,will help increase the court's compliance rate. She explained that currently they are collecting email addresses and sending court related material to both the email TIGARD CITY COUNCIL MEETING MINUTES- February 21, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 1 of 9 and mailing address on file. Council President Snider asked the Judge if he has an opinion or experience about the use of the Photo Red Light Enforcement program. Judge O'Brien replied there is a concern between policy and public safety vs citizen privacy. He stated he has worked on several hundred cases involving the use of photo red light and hasn't seen a large impact to trial cases due to its use. Administratively there are some challenges,but the study that was done suggests an increase to public safety. Judge O'Brien explained there is some frustration regarding the use of photo red light due to people not receiving the original citation because they have moved. He said it can create a challenge because people believe they are entitled to relief when the law states they may not be. Mayor Cook asked about the court's new collection agency and if there was an increase in collections. Ms. Robinson said they started working with the new collection agency in November and communication and collections have been better. 3. SECOND QUARTER BUDGET COMMII'1bE MEETING WITH COUNCIL Information Services Director LaFrance explained they have a number of new people on the Budget Committee and asked those in attendance to introduce themselves. Members of the Budget Committee in attendance were: Mayor John Cook,Council President Snider,Councilor Goodhouse, City Manager and Budget Officer Marty Wine,alternate member Rajendra Patel,citizen Tom Schweizer,citizen William Ludwig,Finance and Information Services Director Toby LaFrance, citizen Stephanie Veal,citizen Clifford Rone,Councilor Anderson and Councilor Woodard. Mr. LaFrance thanked everyone for coming and introduced additional city staff who would be assisting with Budget Committee meetings. Mr. LaFrance discussed the upcoming budget meeting dates,budget training,city funds, expenditures and revenues and preparation for the FY 2018 budget. He explained how expenditures and revenues will change over time and gave some history on past expenditures,and how half of the revenues collected are from property taxes and are not received until the end of November or beginning of December, so there are approximately four months the city lives off of reserves in the budget. He talked about the rainy day fund,decisions discussed last year and the memo from the City Manager to city staff with budget instructions and the need for a"hold the line" budget. He explained the city is unable to grow staff,but increase in demand is still growing. He discussed the local option levy and what is needed to provide services the community is demanding. Mr. LaFrance encouraged members of the Budget Committee to ask questions. Budget Committee member Ludwig asked if in this round of planning there is more concern with the FY 2018 budget or the FY 2023 budget. Mr. LaFrance replied both,because anything they do now impacts future budgets. City Manager Wine added that the intent is to develop a budget that will make decisions for FY 2018 easier as well as what comes after that. Ms.Wine said there is a strong emphasis on seeking a local option levy and the city's hope is that the Budget Committee will be a key player in helping the city plan ahead for future years. She said the next year is relatively straight forward with balancing the budget and it's really about seeking a local option levy. TIGARD CITY COUNCIL MEETING MINUTES- February 21, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 2 of 9 Mr. LaFrance said they were given two very distinctive goals for the upcoming budget cycle and those are to pursue a local option levy and to continue discussion on the approximately$900,000 which is roughly one percent of the general fund. The hope is that as the Budget Committee is prioritizing,staff would like to use this time to talk about pursuing a local option levy which will provide services to the entire community. Mayor Cook explained if there are services departments want or need,they can be brought forward to the Budget Committee for discussion,but will need to be done by submitting a white paper. He said the budget cycle doesn't account for a recession. Mr. LaFrance said from a revenues standpoint,Tigard has been really good about finding revenue drops in the bucket;they aren't large amounts,but they have been able to close the gap. He said they are seeing growth in the community,but not growth to city services. Budget Committee member Rone asked if current budget information includes at least some results of the Capital Improvement analysis that was done and how to begin the process for that. City Manager Wine said the city has completed a building condition assessment and has launched a Civic Center Visioning project that will give the city a sense of what it might look like if we were to replace or remodel the existing building. She said one of the distinctions that Mr. LaFrance made is that capital investments would come from a bond or another kind of investment that comes from a voter approved measure. Budget Committee member Rone said they may need more ongoing revenues for additional investment in addition to going out for a bond,and is glad to see things moving forward with the River Terrace development. Mayor Cook thanked the Budget Committee for attending and for all they do. 4. RECEIVE A REPORT ON THE INITIAL PHASE OF PUBLIC OUTREACH FOR POTENTIAL BALLOT MEASURES Senior Management Analyst Wyatt introduced John Horvick with DHM and said members of the Tigard Leadership Team were present for the discussion. Leadership Team members present included: Public Works Director Rager,Human Resources Director Bennett,Community Development Director Asher,Assistant City Manager Newton,City Manager Wine,Library Director Barnes,Community Services Director Robinson,Police Commander Rogers and Finance and Information Services Director LaFrance. Mr. Wyatt said they had completed the first telephone and online outreach survey and that this was the first of three surveys and focus groups before a final report would be issued. Mr. Horvick provided background on himself, talked about the purpose of the survey,methodology and key findings. He said they started the survey off broad—"Is Tigard heading in the right direction"and continued to ask satisfaction related questions. He explained there is a high TIGARD CITY COUNCIL MEETING MINUTES- February 21, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 3 of 9 percentage of those surveyed that are satisfied with services and the value received,however, confidence is slightly lower. He went over city services provided and where they ranked in overall satisfaction and value for which services tax payers are willing to pay more,overall attitude towards city funding,if taxes were increased how should that be allocated,overall response of who should be paying more (businesses or residents),and if voters would support a Photo Red Light program. He said there doesn't seem to be much of an appetite now for a tax increase and talked about recommendations so that voters feel they are getting a good bang for their buck. Mayor Cook asked Mr. Horvick what the next steps are going forward. Mr.Horvick said they have an opportunity to do additional surveys and those surveys should tackle narrowing down the policies and services the city wants to ask voters about,and where there are information gaps in understanding city financing. Where people get information and who they trust for their information is important as the campaign is developed. City Manager Wine said the purpose of bringing these results to council is to discuss what the community thinks and what the community needs to know. She said the leadership team has discussed these results and the need for some level of communication so the public is aware that services could be at risk due to lack of funding. She asked for suggestions on what the city should include in the next survey. Mayor Cook explained there could be funding concerns if the community continues to grow and explained how that would affect the future. Councilor Goodhouse said they haven't really let the public know what the future looks like and how funding is allocated and where the city is at vs where the city should be. He said there is a need to get the word out and to paint the picture of what's actually going on and the best way is to communicate first before asking for money. Mayor Cook agreed that preparing the public for investment is key. Council President Snider stated he is surprised by the findings and that some are inconsistent with the facts,and he is concerned about this. He talked about the recent failed gas tax measure and how he is really concerned going forward. Councilor Woodard said that looking at the survey there are good things that came out of it. He recommended that in the next survey they focus on population growth and expanding the areas of participation,so that the data point is larger. Mr. Horvick said this was a large number of responses to get from a telephone survey and explained why they had reached out to the areas they had. Councilor Anderson said he's interested to see how long citizens who respond to the survey have lived in Tigard; new residents vs residents who have lived in the city longer and what their satisfaction is. Mr. Horvick explained that typically voters have a higher education level than non-voters do and that more females respond to survey's than males. TIGARD CITY COUNCIL MEETING MINUTES— February 21, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 4 of 9 Councilor Goodhouse suggested throwing in a question in the next survey regarding Tigard's tax rate vs other cities and see if the public is willing to increase the tax rate and by how much. Council President Snider talked about how to ask the question about tax rates in Tigard and how the city should get across the need for more funding. Budget Committee member Rone said he doesn't know where the average citizen gets their information from and that according to a recent survey many are not able to capsulate the data once they do receive it. City Manager Wine said the next survey will focus on understanding where the public gets their information and said that council will need to make a decision whether to put a measure out to voters,but in the meantime,Tigard can move the needle on what they think the public knows. She said communication and educating the public is how the city will get information out to the community in order for movement to be made in increasing awareness. Council President Snider suggested sending out a city report card to residents. City Manager Wine acknowledged Council President Snider's concerns about getting the message out and said the communication team is working on ways to do that. Mayor Cook will keep engaging the public,increase public outreach and talk more at council meetings. Councilor Woodard said education outreach is a good idea to build up a level of confidence and if council says funding will be in one bucket,they need to make sure it's in that bucket. Councilor Goodhouse said the average citizen doesn't have time to collect data,so the citizens have elected and entrusted council to make these kinds of decisions. 5. EXTERNAL FINANCIAL AUDIT&CAFR PRESENTATION WITH MOSS ADAMS Finance and Information Services Director LaFrance introduced James Lanzarotta and Keith Simovic of Moss Adams who would be presenting this item and providing information on the FY 2016 audit they performed. Mr. Lanzarotta said they had completed the audit back in December and were before council to present those results. He talked about the audit,engagement with staff and the Audit Committee. He explained they are tasked to look independently at financial records and the city's internal controls to make sure everything in the books are reflected correctly and then evaluates those to make sure things are legally compliant. He explained in Oregon the Audit Division governs compliance, the most significant being the city's budget, budget process and administration of it once it's been adopted. Additionally,other areas are tested such as the city's procurement process to make sure the process is transparent and the city is doing things according to statute. Finally,they do a technical review of the document. He said it was fun to work with city staff and complimented the Audit Committee on being engaged in the process. TIGARD CITY COUNCIL MEETING MINUTES— February 21, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 5 of 9 Mr. Simovic talked about the Comprehensive Financial Report,a separate report for the City Center Development Agency and a separate letter to the report that highlights the overall governance and how the audit went. He said the most important thing is issuing the audit report,which is an unmodified and clean opinion that financial statements were free of material statements or fraud.He said management was ready when they arrived on site,books were reconciled,and internal controls that were set in place are operating effectively. He commended staff and said everything,including the CCDA was in a clean state. Mr. Simovic discussed the few areas of concern;city failed to list date,time and location of the Budget Hearing on June 14,2016 and there was an over expenditure of the budget in the Urban Forestry Fund,both being minor concerns,but are listed in the report. Mr. Simovic discussed the communication letter and its content, stating that Moss Adams issued everything on December 20th which is before the state required deadline of December 31. He noted audit adjustments: • Correction to the calculation of the right-of-way property. • Correction to the calculation to capitalized interest. • Removal of land that was sold throughout the year,but wasn't reflected in the financial records • Correction to the recording loss of refunding on the 2011 Library Bond • Correction to the recording of recognized donations received as revenue and not as liabilities on the financial statement. • Correction to the transfer from the gas tax fund to the transportation IP fund that was recorded in error. Mr. Simovic said they did not encounter any difficulties in the audit,there were no limitations,no disagreements with management and only a few minor internal control recommendations,of which none rose to significant sufficiency. Mr. Lanzarotta said that Tigard has a fair level of complexity with the Lake Oswego joint venture, and that city management reached out to them to make sure the city accounts for this in the books correctly. He said the audit is really designed to determine that the document is accurate and reflects the correct balances and is not directed towards how the city is operating efficiently or effectively. He explained there are a number of positive indicators that the city is doing well;one being the that the city's assets have grown over the last ten years and longer term planning of the city's finances look good. Councilor Woodard asked how the city had an over expenditure in the Urban Forestry Fund and why did the city have the Donation Fund inaccurately listed. Mr. LaFrance explained that with the Urban Forestry Fund,there was a capital project with invoices coming in late and there was no time to make the adjustments to the budget. As for the error to the Donation Fund being tagged as liability,this was due to the timing of year. Mr.Lanzarotta explained the people who managed these particular donations weren't ready to allocate or spend funds yet and this adjustment was due more to the methodology in tracking than anything else.. TIGARD CITY COUNCIL MEETING MINUTES— February 21, 2017 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 6 of 9 Council President Snider said these errors in past adjustments have been occurring now for the past couple of years and said the city needs to be vigilant,and though there isn't an easy solution,this needs to be fixed. Mr. LaFrance said that two-thirds of the city's financial team that worked on this audit have recently gone to work for other organizations,so in the next round of the budget they will have new staff. 6. TIGARD TRIANGLE LEAN CODE UPDATE Community Development Director Asher,Assistant Community Development Director McGuire and Associate Planner Gaines presented this item. Mr. Asher said the Tigard Triangle is the future of the city and staff is hard at work to plan this area to its fullest potential and the use of the Lean Code will be the primary implementation tool. He provided an overview on the Lean Code,what's included in it and amendments. He said the world is changing, cities in other states are changing,and there is a new concept of planning for healthy communities. They are trying to replace requirements that are getting in the way of development implementation and the Triangle is a good example of this due to the site location. Lean Urbanism allows for an organic way of development to occur and regulatory requirements have made development time consuming and expensive and as a result,small businesses are shut out and this is the reason small sites do not get developed. Mr. McGuire explained this Code will be different from standard Code in the rest of the city and that staff is excited about this and they are receiving favorable responses from property owners. He said creating a set of standards will allow for an over the counter land use process. He discussed the flooring ratio and minimum density being controlled by building height and lot size,parking will now be allowed behind building or within the structure and development standards can be adjusted. Those adjustments can be approved if the development meets the walkability and/or pedestrian space requirement. Mayor Cook wanted the public to know this doesn't mean people can develop in wet land areas. This change does not affect land-use laws,just the city's land-use Code. Mr.Asher explained that this is a change to the city's Development Code and not the Building Code which are constructed to meet fire and life safety requirements and there will be no repeal to sensitive lands requirements. Mr. McGuire explained this will only impact the majority of commercial and residential land areas. Mayor Cook asked why only four to six story buildings in height would be allowed and not more. Mr. Asher replied the more generous the height limit is,there is a belief the property is worth more money,and additionally,staff doesn't think the Triangle neighborhood is a place where towers should be built. Councilor Goodhouse asked about parking requirements and issues. Mr.Asher said parking will still be regulated,however they will not require a minimum amount of parking. He said very few developers and banks are interested in building structures without parking units,and he believes the market should regulate the need for parking,and they would like to concentrate more on things like TIGARD CITY COUNCIL MEETING MINUTES— February 21, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 7 of 9 streetscape. Councilor Woodard asked about equitable housing vs affordable;was there any discussion about affordable housing in this area and does that need to be added to the Development Code. Mr. Asher said the city doesn't want to regulate income levels in the Code,but they are talking about affordable housing. Ms. Caines explained what will be regulated and how to encourage activities within developments: • Require openings in buildings so that people can see what's going on inside and have entry points off the street. • Require there to be space behind windows that will promote pedestrian interaction. • Allow parking and loading areas to be located behind buildings and be screened in. • Encourage private plazas and courtyards that can be used by the public,so that activity inside the buildings will spill out into the plaza/street. • Focus on retaining existing trees onsite for preservation of canopy covering and requiring additional trees to the site and in parking lots. She said the Triangle area is unique and connectivity and transportation is important. She said street sections will be standardized throughout the Triangle so there is connection outside the Triangle. Ms. Caines explained that because smaller developments cost more, they are proposing street sections be at a specified threshold,however,in lieu of meeting this requirement,the developer would be required to do something in exchange,like dedicating the right-of-way. Council President Snider asked what the implications are to funding for not requiring certain improvements. Ms. Caines explained a big piece of this would be urban renewal,requiring the right- of-way dedication and increasing the city's "fee in lieu" option. Mr.Asher said that one of the key concepts is that the city has to think incrementally;and often times,small developments don't pencil out and do not make it past the door to pre-application. He feels that the city needs to be more imaginative in their thinking in order to make these smaller developments affordable,and this is one way to accomplish that. Ms. Caines said staff is still working on edits and said the city attorney has looked at what has been done so far. She said planning staff is also working with engineering staff to review and make sure it's where they want it to be before going forward,getting feedback from some of the property owners and developers in the Triangle and asking how to develop a large site over time. She talked about adding alleyways behind buildings. Councilor Goodhouse asked if businesses could face alleyways. Mr.Asher said they could,but it would be more difficult in making the site work,and the key thing is to include access for other things in areas where street frontage is treated more for pedestrian use. The more the city regulates the street frontage (like they are doing), the more important it is to make sure the site isn't being cut- off for other things. TIGARD CITY COUNCIL MEETING MINUTES— February 21, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 8 of 9 Ms. Caines said that in addition to looking at modifying the Code,staff is looking at the Transportation System Plan Amendments and doing a traffic analysis. Mr. Asher went over the schedule and said the hearing process is scheduled to begin in May,will go before the Planning Commission in June and before City Council sometime in August. Council President Snider asked what developers think about this. Mr.Asher said that most are not interested in reading Code unless they have a current project underway,but that they are starting to speak with property owners and developers. Mayor Cook said there are aspects of the Lean Code that are good and people are saying they like parts of it and said it will be interesting to see how all aspects of it are interacted. Mr.Asher explained they are trying to make the requirements easier and less expensive. 7. NON AGENDA ITEMS—None. 8. EXECUTIVE SESSION—None. 9. ADJOURNMENT At 9:26 p.m. Council President Snider motioned to adjourn the meeting and Councilor Woodard seconded the motion. Motion was approved by unanimous vote of council. Name Yes No Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Councilor Mayor Cook ✓ Kelly Burgoyne,Deputy City Recorder Attest: John L. Cook,Mayor Date: TIGARD CITY COUNCIL MEETING MINUTES—February 21, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 9 of 9 INCity of Tigard Joint Tigard/Lake Oswego City Council Meeting Minutes TIGARD February 28, 2017 I lit 1. BUSINESS MEETING A. At 6:39 p.m. Mayor Cook called the Joint Tigard and Lake Oswego City Council Meeting to order. B. City Recorder Krager called the roll. Present Absent Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider V Councilor Woodard V Councilor Anderson ✓ Mayor Studebaker V Councilor Manz V Councilor O'Neill V Councilor Buck V Councilor Gudman V Councilor Kohlhoff V Councilor LaMotte ✓ Staff Present: City of Tigard: City Manager Wine,Assistant City Manager Newton, City Attorney Rihala,Public Works Director Rager and Utility Manager Goodrich City of Lake Oswego: City Attorney Powell and Lake Oswego/Tigard Water Partnership Project Director Komarek Also Present: DK Advisory Services Consultant Koellermeier C. Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Call to Council and Staff for Non-Agenda Items JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 1 of 10 2. CONSIDER A COST OF SERVICE RATE STRUCTURE FOR THE LAKE OSWEGO/TIGARD WATER PARTNERSHIP Consultant Koellermeier began the discussion by saying the purpose was to update both councils on the work the Oversight Committee has been doing for the past four months. The issue is how to equate the cost of running the treatment plant and facility into bills that each of the partner cities pay. This was identified as a need in the original partnership agreement. Lake Oswego/Tigard Water Partnership Director Komarek said the action item from the original 2008 agreement was that once construction was complete the partners were to develop an operations and maintenance rate for water supplied through the new facilities to the cities. A consultant (FCS Group Inc.)was hired to assist in that effort and they created a spreadsheet model allowing annual adjustment input reflecting the previous year's consumption and changes in cost allocations,expenses to operate the plant, and other items. He said the presentation given to the Oversight Committee is what the councils will hear tonight and his memo to them was included in the packet for this meeting. Mr. Komarek gave background saying they started with Lake Oswego's budget for its water department including the water treatment plant,intake department and some services of their distribution department that does some of the system maintenance.The third amendment to the agreement allocates 20/38th capacity to Lake Oswego and 18/38th to Tigard. He said capacity factors were applied to costs which generated the rate included in the report comprised of an operating component and a depreciation component. Mr. Komarek said the question is whether to fund depreciation now or defer it to a future point. Staffs recommendation to the Oversight Committee, due to significant rate increases to both communities to fund project construction,is to defer depreciation to a future date determined by the councils. Mayor Cook noted that in layman terms the depreciation means depreciating the capital assets already built and funding future facility building. We are already funding some repair and maintenance in our current rates. If a filter needed to be replaced in seven years that would be added to repairs and maintenance but a new building is a capital expense. He said even with not funding depreciation we are still appropriating some repair and maintenance dollars. We funded this on substantial rate increases for both cities. By not funding this depreciation we are saying that when the next facility is built 30 years from now, future councils will probably have to raise rates or come out with their own bond. By funding depreciation there would be cash available in 30 years and while that makes sense he recommends waiting 5-10 years and then figuring out what resources are available. Mr. Komarek said Mayor Cook's description of depreciation was on target with one exception: There are some nearer-term expenditures. Filter media will need to be replaced on a 5-10 year basis. In addition, the current capacity of the plant on a pumping basis is limited to 32 million gallons a day and it is believed that in the next ten years or so,respective demands will approach that amount and an additional pump will be needed in both the river intake pump system as well as the water treatment plant. These items are identified in the memo and it was suggested that even if the councils decide to defer depreciation,it is their recommendation that each city begin setting aside a certain amount of money over the next four years to fund the filter replacement and JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 2 of 10 addition of the pumps. The additional cost to begin prefunding was determined to be six cents per hundred cubic feet. He noted that each city has experienced having to raise rates to meet project capital expenses and the ensuing constituent discomfort. ElCouncilor Woodard asked if a five-year replacement item is considered a major maintenance issue and what else would fall into that category. Mr. Komarek said he considers filters to be an ongoing operations and maintenance item. He said in the plant alone there are literally 1,000 pieces and parts,electronic parts,and things that will not last. We asked for a lifespan of 75 years on concrete and steel but instruments,computers and pumps will wear out or become obsolete. We are developing an asset maintenance and replacement schedule so we will know when these things will be due and can be budgeted. Pumps are all custom-built and not off the shelf items. Councilor Gudman said he was not sure that going down the road setting nothing aside for depreciation is the way to go. He said,making a distinction between repair and capital equipment, it struck him that there is some sort of blended rate which could be calculated for setting aside major capital equipment funding,if not this year, then next year. He has seen too many organizations fail to do this and then they are left without a choice. Mayor Studebaker said the Oversight Committee thought it wise to delay starting to pay for depreciation for five years. Council President Snider said their perspective is that it should be done and probably soon,but just not right now. Councilor Gudman said given the number of variables in the timeframe and the softness of the numbers,if the commitment is there to begin in five years he is completely on board. Councilor Manz asked Mr. Komarek when the councils will see the asset replacement schedule because that may help them make a decision. Mr. Komarek replied that the asset maintenance schedule has been under construction since the beginning of the project and the contractors have been tasked with listing equipment and serial numbers. When the plant is done there will be a complete package for all facilities. He said the asset schedules should be in their hands for entry into the city's computerized maintenance management system in the next four to five months. Consultant Koellermeier explained that in the meeting packet there was a sheet showing rates with depreciation added. He said he handed out a sheet earlier tonight that shows the rates without depreciation. (This sheet has been added to the packet for this meeting.) Councilor Goodhouse suggested if the depreciation funding will not begin for five years that the councils chose the rate now so it is known and not a surprise. He said this puts it in the record so future councils know what our intent was. Councilor Kohlhoff said when she read in the meeting materials that staff was recommending full depreciation funding be deferred to a future time she thought that was terrible and agrees with Councilor Gudman that the councils need to get on with it and not wait five years. She said,"Just start it now and build up and we're done." JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 3 of 10 Council President Snider said the Oversight Committee had a great deal of discussion on this and he would support her position wholeheartedly if the generations before him had done that preparation. He said,"My parents'generation did not plan and a lot of things are burdened on my generation...I do not want to be paying immediately for stuff that was not saved for before and also planning to pay also for the stuff my kids need in 75 years. It does not seem equitable." He added that the Oversight Committee recommended taking action in two to four years,not five. llaMayor Cook said it is difficult when we doubled everyone's rates and then raised them again with a double-digit number and are also planning for a future rate increase. He agreed with holding the rate for five years.When Tigard elected to buy the extra 4 MGD there were two options. Tigard could have amortized it over four years and made the rate increases evenly throughout the whole time or bite the entire 12 percent bullet up front. The Tigard City Council elected to pay for it all up front. Mayor Cook said he did not vote for that but was fine with it as long as the same 3.50 percent rate was kept. He said funding depreciation builds someone else's water plant. He said he understood why that would be done but did not think fully funding it from day one is the thing to do after doubling the community's water rates. He said waiting four years from now was important to him but noted that future councils cannot be bound. Councilor Woodard said he views it from a different perspective saying he retired in 2007 as a maintenance manager and he looks at it in terms of work type orders in four categories: preventive,corrective,major maintenance and capital improvements. He said the list of equipment and maintenance could be itemized by 5, 10 and 15 years to arrive at a bottom line which may equate to only cents. He said it was important to do this right away. He agreed with putting a little money in and putting the capital improvements farther away. Mr. Komarek said they did not break it down by number of components with 5, 10 or 15 year lives;it was a simple, straight-line depreciation. They looked at what it would cost to replace a pipe in 75 years, for example. Council President Snider asked if the filter media and pumps are built in and Mr. Komarek said they were not. Council President Snider said that was not the direction the Oversight Committee gave. Mayor Cook and Councilor Manz concurred. Mr. Komarek said the three items were identified as items that need to be replaced within the next decade. He said the depreciation schedule does not reflect them because they are not assets as they do not exist today. Filter media replacements are a maintenance item that could be funded with a rate increase or within the 3.5 rate increase both cities might adopt. In depreciation he is talking about replacing a structure built of bricks,mortar, steel and concrete. Councilor Buck said he agreed with Council President Snider, as long as the general maintenance costs are built into the rate. He said he appreciated Councilor Gudman's comments about being able to save for major expenses in the future and it would be great if citizens were willing to fund both,but it is hard to ask citizens to pay for future costs when there are current needs such as better roads and new schools.He suggested that rate payers do not have the appetite. He asked if the Oversight Committee can look at phasing it in and giving people time to plan for it. He said he appreciated Councilor Goodhouse's remarks about giving future councils and citizens an idea of the increase. JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 4 of 10 Councilor Manz added that their rate payers have hit their limit at the moment. She said the councils need to be conscious of the hit on those on fixed incomes and on young people buying their first homes. She said waiting five years to look at depreciation gives ratepayers breathing space and it would probably be easier to sell a rate increase at that time. Councilor Gudman said if everyone sitting around the table now was going to be here in five years there would be no problem. He said the concern is what institutional mechanism can be put in place to guarantee that the depreciation starts getting factored into the rates. He asked for a show of hands from council and staff present who thought they would be here in five years and around five hands were raised. ElMayor Cook asked about putting the rate into an intergovernmental agreement. Councilor Goodhouse said he would like to take it further and vote on implementing it now so it is set in place. Council President Snider noted that a future council could choose not to follow it. Councilor Gudman countered that there is a chance that a unanimous decision around the table tonight would hold some weight. Mr. Koellermeier cautioned that the memo talks about developing$1.5 million for pumps and filter material which would add 7-8 cents but this was not added to the rates. Mayor Cook said it would be different for each city. Mr. Koellermeier said it would need to be run through the rate model. Utility Manager Goodrich did some quick calculations and said it would be a minor adjustment. $1 million put away for a rainy day would cost$3.36 per month per EDU. Mr. Koellermeier said the amount being considered is $1.5 million over ten years. Councilor Goodhouse asked if the five-year future amount could be determined now or if staff need to figure out the numbers. Council President Snider said to let the Oversight Committee know what council needs to be done and they will make it happen. Mayor Cook said it has been moved and seconded that the Oversight Committee develop a rate to include depreciation five years from the start date of July 1,2016. The number arrived at will be written into the intergovernmental agreements. The councils can discuss phasing in once they know the number. Councilor Goodhouse proposed an amendment to the motion to require the Oversight Committee to create the structure of a 70-year plan to fund depreciation. Councilor Gudman accepted the friendly amendment. There being no further discussion,Mayor Cook conducted a vote on the amendment which passed unanimously. Mayor Cook asked for any discussion on the motion and there was none. He conducted a vote and the motion passed unanimously. In response to a question from Mayor Cook about staffs recommendation about when the 7 or 8 cents could go into effect,Mr. Komarek said it could be included in the rate beginning July 1. Council President Snider clarified with staff what their preference was and Mr. Koellermeier said putting it in the rate guarantees it is in place. JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 5 of 10 Mayor Studebaker asked for clarification on what amount would be charged. Utility Manager Goodrich said the confusion is that they are talking about CCF but if people use ten units,it is 70 cents. Council President Snider said this is the wholesale amount the cities are charging themselves,it is not what individuals or businesses would be charged. Mayor Cook said each city will need to look at their budgets because part of this amount may be already built in. Councilor Goodhouse motioned to approve the prefunding of known near-term maintenance and capital improvements. Councilor Kohlhoff seconded the motion. The motion passed unanimously. 3. DISCUSSION OF FUTURE GOVERNANCE OF JOINT WATER FACILITIES Mayor Studebaker said the question is whether to continue with the way the water plant is being managed now with Lake Oswego water staff or form a new governing water board. He said continuing the current way would maintain the Oversight Committee and the current water department employees working the way they are now. Under a new water board the employees would probably remain the same but the board would be comprised of two mayors and probably two councilors and two community member in equal numbers from each city. He spoke about impacts to a change in governance and said his understanding is that present water facility staff like the way it is currently.They are unionized and see benefits to that. He noted that they could also unionize under separate water board governance. l! Council President Snider gave some perspective from Tigard's council and said the joint goals should be to set up a system of governance and oversight that can effectively and fairly stand the test of time and unknown stresses our system could face in the future. We need to ensure financial equity and true,joint decision making in a structure that will work over a 50-70 year lifespan. A system needs to be set up that will work effectively to solve problems over a very long period to maintain a certainty of supply for our residents not dependent on politics and that is clear and transparent. He noted that Tigard councilors frequently get asked by citizens,"Why did you buy Lake Oswego a water system?" He said he did not mean to offend anyone but there are things Tigard has learned from experience over the partnership period that lead to different thoughts than were held in the beginning of the project,such as the political uncertainty in the November 2012 elections. There were questions about whether the project was even going to move forward and this was very concerning to Tigard. He said at different points in time, decisions were made by the managing partner entity that felt unilateral and not very partner-like. He said a system needs to be set up that will be effective for 100 years. For these reasons Tigard proposes that a separate entity be created using ORS 190 language to create an IGA that would specifically operate the water supply system. He said Tigard is not suggesting that an entity be created that takes full responsibility for all water delivery;it would be limited to the system that supplies water as a wholesaler to the two cities for distribution. Councilor Goodhouse commented that the project title includes the word"partnership." Both communities have invested in it and right in the logo it says "sharing water" and"connecting communities." He said the best way to do that is have a joint board so both communities have a say,like what occurred with the funding discussion tonight. Residents have taken a hard hit on JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 6 of 10 their water bills and it was always sold to them that this would be something they would own. That was disingenuous to say if it turns out they really do not have a seat at the table with equal input from each community. Councilor Buck said he appreciated Tigard's perspective and even if the assets of the water partnership are currently half owned by Lake Oswego and half owned by Tigard,he understands that it is a difficult perception for Tigard ratepayers to realize that it is equal. He said details will have to be worked out but given that the cost of a separate water board is no more than the current arrangement,he is supportive of the general idea of creating a separate board. Mayor Studebaker said he appreciated the input but this was not something we are going to decide tonight. Mayor Cook agreed and said the intent was to allow councilors to have their say and hear each other's comments. Councilor Gudman said he got questions from citizens who asked,'Why partner with Tigard;we don't need them," so Lake Oswego also heard comments from residents. He said the 2012 unrest was unfortunate for the partnership but now that the project is fully constructed,the chances of it being deconstructed are small. He asked what the fundamental difference would be between the present governance method and a new one.There are two people from Tigard on the Oversight Committee and three from Lake Oswego which he felt was a difference without a distinction. Council President Snider commented that Tigard is not just thinking of construction-related issues but the effects of things we don't want to think of,but which may happen over the next 70-100 years, such as a massive depression,water curtailment that is 50-70 percent of the supply,or Mt. Hood blowing up and contaminating the Clackamas River. He said to think about these things where the entity has the assets in their name and the future council is not altruistic. Think about those scenarios with none of the current partners involved. He added that the Oversight Committee is an advisory body that cannot make decisions and does not have direct control. Councilor Woodard said a governing board and an oversight committee are similar but one has more of a voice. He likened a governance board to the Intergovernmental Water Board (IWB) and said issues are being resolved and he understands their need to feel like a partner. He said Tigard wants to be partners with Lake Oswego and has "a lot of skin in the game." Councilor Kohlhoff expressed uneasiness about turning over that much power to a small group. She noted that if the group consists of two mayors (and who is the mayor is a political issue), and two people from each city, there are six people and that is terrible. She asked,"What happens when there is conflict?" Mayor Cook suggested looking at the South Fork Water Board which is a conglomeration of different entities but has an even number of people serving. It is that way for a reason. The idea of having the same number from each city is that no one city can control it. It takes having someone swing over from the other side. Everything stays the same unless the two cities can figure something out and create a change. JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard 113125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 7 of 10 Council President Snider addressed Councilor Kohlhoff's concern about concentration of power. In the case where she feels that her council representative is not cool-headed or making good decisions or does not represent her well, a majority vote of council could remove that representative. He said, "If it is not going the way it should be going,you can act on that." Mayor Studebaker said, "These are our water rights and that is not going to change. The agreement we have right now has covered most every situation and it looks to him that it would cover anything else that would come up too. I understand the perception problems you have with your folks but as Councilor Gudman said,we've had some of the same kinds of things." You paid more because you were buying our system. It is not like it was not fair for Tigard. He said he did not see the need to change the way it is going on right now but will talk about it,taking heavy consideration of what Tigard is saying and what the impressions are. Councilor Manz said she appreciated hearing the perspective from Tigard council. She said the Lake Oswego City Council needs to have further discussions. She said, "Your opinions are quite well formed," but she thought that especially with a need to bring new councilors up to speed and one member unable to attend tonight they should go back and discuss it. At 7:53 p.m.Mayor Cook thanked the Lake Oswego Council and staff for coming to Tigard for the joint meeting. He said there would be a brief recess and then Tigard would continue the meeting with some routine items. Lake Oswego City Council and staff left the meeting. 4. CONSENT AGENDA: (Tigard City Council&Local Contract Review Board) — A. APPROVE CITY COUNCIL MEETING MINUTES • January 10,2017 • January 17, 2017 B. CONSIDER ENTERPRISE LICENSE AGREEMENT FOR CITY'S GIS SYS 1'hM C. CONSIDER A RESOLUTION RECOMMENDING RESTORING RECREATIONAL IMMUNITY RIGHTS RESOLUTION NO. 17- 12 -A RESOLUTION RECOMMENDING RESTORING RECREATIONAL IMMUNITY RIGHTS Councilor Goodhouse moved to approve the Consent Agenda and Council President Snider seconded the motion. The motion passed unanimously. JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 8 of 10 Yes No Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ 5. NON AGENDA ITEMS —Held after Agenda Item No. 6. STUDY SESSION—Mayor Cook announced at 8:05 p.m. that the Tigard City Council would go into the Red Rock Creek Conference Room for a Study Session. He said the public was welcome to attend. 6. COMMUNITY EVENT GRANT APPLICATION REVIEW AND RECOMMENDATIONS Finance and Information Services Director LaFrance and Confidential Executive Assistant Lutz introduced this discussion. One-half of one percent of the current year operating budget is reserved for social service and community event grants. There is $305,000 to be divided between the two areas and 30 percent of that amount,or$91,500,is available for community event grants. The Social Services Subcomittee of the Budget Committee (on which Councilor Woodard serves) is meeting this Thursday from 1-9 p.m. to hear social service proposals. Three set asides are legislated by resolution:Tigard 4th of July Celebration,Broadway Rose Theater and the Tigard Festival of Balloons. There were more requests than there was funding. Fifteen written requests were received by the deadline this year. Mayor Cook proposed starting with the same amounts given last year and discussing new event requests separately. Council consensus was that the Access to Vision Care for Tigard Residents request is not an event and would more appropriately be considered a social service. Council directed staff to let them know they should do this next year since that deadline for social services was missed for FY 2018. The Foundation for the Tigard Breakfast Rotary Club is asking for funding for a K9-5K Run/Walk Doggie Dash to benefit the Police Department police dog program. Mayor Cook noted it is a worthy cause and he likes the fund raiser but the city already funds the Police Department so this is for something already in our budget. He suggested if there are extra funds they be applied to Tigard events. Mayor Cook noted that both farmers markets doubled their requests. Councilor Woodard said he did not know why there were two farmers markets and suggested either having one pot for farmers markets and splitting it down the middle,or combining the two. Councilor Goodhouse suggested putting money towards only the Tigard downtown market since it promotes events in the downtown. A discussion was held on the two farmers markets and noted that the Bull Mountain farmers market might consider moving their facilities downtown if we were to offer the public works yard for them. City Manager Wine commented that when city representatives went to JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 9 of 10 Washington DC to lobby for farmers market funding they were told that changing locations is a major disruption to a market. It was decided that it was too late this year to approach them about this summer season. Finance and Information Services Director LaFrance, City Manager Wine and Mayor Cook will discuss this and talk to both markets in September. Councilor Goodhouse asked about adding part of the remaining funds to increase support for the Tigard Downtown Affiance bringing events into the downtown. He suggested their extra request of $5,750 had strings attached and is only to be used for a new downtown event. The remaining$430 will be given to Tigard 4th of July Celebration. 7. NON AGENDA ITEMS - Councilor Goodhouse requested a brief discussion of the joint meeting on governance. Council felt it was a good discussion and that it may have been eye-opening for some Lake Oswego council members to hear Tigard's perspective. Mayor Cook asked how water will be allocated in a curtailment. City Manager Wine said that has never been faced previously but it is the feeling at the staff level that Lake Oswego believes they would be first in line in a curtailment situation. Councilor Anderson asked why governance was not laid out in the original agreement. City Manager Wine said Tigard and Lake Oswego entered into a contract for the purpose of building a facility together. It envisioned that once construction was complete the entities would provide for the long term management and operation. It was deliberately separated knowing that the world would have changed by the time the plant was online. Councilor Anderson said that needs to be emphasized. Mayor Cook said this must be decided by June 30,2018. City Manager Wine pointed out that the Lake Oswego Council was outside their jurisdiction tonight and so they cannot vote or make decisions. 8. EXECUTIVE SESSION None. 9. ADJOURNMENT At 8:55 p.m. Council President Snider moved for adjournment and Councilor Goodhouse seconded the motion. Mayor Cook conducted a vote and the motion passed unanimously. Yes No Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Carol A. Kroger,City Recorder Attest: John L. Cook,Mayor Date JOINT TIGARD/LAKE OSWEGO CITY COUNCIL MEETING MINUTES—February 28,2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 10 of 10 IPIIn City ofTigard _ . . Tigard City Council Meeting Minutes TIGARD March 7, 2017 illi 1. BUSINESS MEETING - 6:30 p.m. A. At 6:35 p.m. Mayor Cook called the meeting to order. B. Deputy City Recorder Burgoyne called the roll. Name Present Absent Councilor Anderson If Mayor Cook I Councilor Goodhouse I Council President Snider I Councilor Woodard I C. Mayor Cook introduced Boy Scout Troop No. 847 and they presented the flags and asked the audience to stand for the pledge of allegiance. D. Call to Council for Staff for Non-Agenda Items—None. 2. CITIZEN COMMUNICATION A. Follow-up to Previous Citizen Communication—None. B. Mayor Cook called on people who signed up to speak. Mike Weston,City Manager of King City, 13560 SW Ash Avenue,Tigard,OR 97223,explained they are in the process of expanding the Urban Growth Expansion,area 6D,which is located to the East of the city. He discussed the Memorandum of Understanding(MOU) from 2006,the NE Quadrant and Tigard's involvement with King City. He said King City would like the City of Tigard to partner with them in the expansion of this area. He explained they have all the background items together including the infrastructure and all Tigard would have to do is some of the informational pieces that go along with that. He explained they have calculated what the involvement for the City of Tigard would be in dollars and they believe it to be approximately $50,000-$60,000 for consulting fees and additionally,a small amount of staff time to oversee it. He said Tigard could save money if they choose to partner with King City and would also make the area more enticing to Metro. He asked council to look into the future and think about what the city's need will be. TIGARD CITY COUNCIL MEETING MINUTES— March 7, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 1 of 7 Council President Snider said that Council had a robust discussion during their goal setting meeting and had pushed staff hard to figure out how to make this happen. He asked Mr.Westin how confident he is in the cost estimate for Tigard's participation,because city council was given estimates that were in the$300,000 -$500,000 range to get the required work done,including significant staff oversight. Mr. Westin replied that it is only costing King City approximately $100,000 to do their entire area from scratch and Tigard would not have to start from scratch. Council President Snider said it would be appropriate for Council to have further discussions at a later time on this matter. Jamie Stasny, 17933 NW Evergreen Parkway,Beaverton,OR 97005,property owner in River Terrace,talked about the area outside the Urban Growth Boundary and explained they can't develop this land until it's brought into the UGB and would like City Council to add this to their council goals and work with King City on bringing this area into the UGB. She said this should be a high priority and the preliminary cost estimates are reasonable costs. Paul Grove,Portland Home Builders,15555 Bangy Road,Lake Oswego,OR,thanked Mayor Cook for attending the recent ground breaking ceremony. He talked about the concept planning for River Terrace South and how this is a unique opportunity for King City and Tigard to have an active partnership and create a stronger voice with Metro. Charissa Jones,7195 SW 164t Terrace,Beaverton,OR 97007,Environmental Educator for Tualatin Riverkeepers,talked about Dirksen Nature Park and funds the city received from Metro and the Oregon Water Shed Enhancement Board to purchase the 48 acres that make up Dirksen Park with the caveat that environmental education be at the forefront of activities. She explained when the park was created the Tualatin Riverkeepers helped the city put together a Request for Proposal (RFP) for environmental education opportunities and that Tualatin Riverkeepers was the only group to submit a proposal. She requested the city continue to support environmental education as a focal point at Dirksen Nature Park,and pointed out that if the city chooses not to continue its partnership with Tualatin Riverkeepers, the city would need to go out for another RFP for environmental education due to the mandate from the Oregon Watershed Enhancement Board. Council President Snider said the city believes the partnership with Tualatin Riverkeepers is a good one and hopes to continue the partnership. 3. CONSENT AGENDA A. APPROVE CITY COUNCIL MEETING MINUTES • January 31,2017 • February 7,2017 • February 14,2017 Mayor Cook called for a motion to adopt the consent agenda. Councilor Woodard motioned to approve the consent agenda and Councilor Anderson seconded the motion. TIGARD CITY COUNCIL MEETING MINUTES—March 7, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 2 of 7 Name Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard V Mayor Cook announced that the consent agenda passed unanimously. 4. INFORMATIONAL PUBLIC HEARING—CONSIDER VACATION OF FRIENDLY LANE Mayor Cook opened the public hearing. Assistant City Engineer McMillan gave the staff report on this item and provided council with background information. She said this vacation was needed for two approved developments, explained the Code requirements and said the Planning Commission had recommended council adopt the proposed ordinance. Councilor Woodard asked if this was originally scheduled to go through Luke Lane. Mayor Cook said there was some discussion,but first the old street needs to be removed before a new street can go in. There was no public testimony. Mayor Cook closed the public hearing. Councilor Goodhouse motioned to approve Ordinance No. 17-03. Councilor Anderson seconded the motion. Deputy City Recorder Burgoyne read the number and title of the Ordinance. Motion passed unanimously. ORDINANCE NO. 17-03—AN ORDINANCE CONCERNING THE VACATION OF AN APPROXIMATELY 2.15 ACRE PORTION OF PUBLIC RIGHT OF WAY BETTER KNOWN AS SW FRIENDLY LANE (VAC 2016-00001) IN RIVER TERRACE EAST SUBDIVISION IN THE CITY OF TIGARD Name Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse V Council President Snider V Councilor Woodard V Mayor cook announced that Ordinance No. 17-03 passed unanimously. TIGARD CITY COUNCIL MEETING MINUTES—March 7, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 3 of 7 5. INFORMATIONAL PUBLIC HEARING—CONSIDER VACATION OF 76TH AVENUE RIGHT-OF-WAY,VAC2016-00002 Mayor Cook opened the public hearing. Assistant City Engineer McMillan gave the staff report on this item and provided council with background information. She explained this vacation would allow the developer to build home sites, with the condition that the city has access through Tract C,between lots 18 and 19. Staff feels comfortable in vacating this since the street will not go through the vegetative corridor or wetlands area. Mayor Cook said when he initially looked at this,it looked like it was intended to go through the wetlands,but since that will not happen he doesn't have any problem vacating it. He said connectivity is important and wants to make sure there will be access to trails. Council President Snider said this area is close to his primary residence,but this does not affect his ability to make a decision on this. There was no public testimony. Mayor Cook dosed the public hearing. Councilor Goodhouse motioned to approve Ordinance No. 17-04 and Councilor Anderson seconded the motion. Deputy City Recorder Burgoyne read the ordinance number and title. Motion passed unanimously. ORDINANCE NO. 17-04—AN ORDINANCE CONCERNING THE VACATION OF AN APPROXIMATELY 3,485 SQUARE FOOT PORTION OF PUBLIC RIGHT OF WAY BETTER KNOWN AS SW 76TH AVENUE (VAC 2016-00002) IN THE ELDERBERRY RIDGE PLANNED DEVELOPMENT IN THE CITY OF TIGARD Name Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook announced that Ordinance No. 17-04 passed unanimously. 6. CONSIDER AN ORDINANCE TO NAME A STREET AT ASH/BURNHAM DEVELOPMENT Assistant City Engineer McMillan gave the staff report on this item. She explained that Ash Burnham Development was required to improve the street located between the Ash Street Dog Park and the city's Public Works building. She said this is included in the city's Transportation Plan and that the right-of-way was dedicated by Ash Burnham Development via a Deed of Dedication. She TIGARD CITY COUNCIL MEETING MINUTES—March 7, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 4 of 7 explained the name of the street was omitted from the Deed of Dedication,and therefore,per the County Recording Office,council needed to adopt an ordinance naming the street. Normally council would not see items like this before them. Council President Snider motioned to approve Ordinance No. 17-05. Councilor Goodhouse seconded the motion. Deputy City Recorder Burgoyne read the number and title. Motion passed unanimously. ORDINANCE NO. 17-05 —AN ORDINANCE NAMING AN UNNAMED PUBIC RIGHT-OF-WAY"SW ATTWELL PLACE" Name Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook announced that Ordinance No. 17-05 passed unanimously. 7. CONSIDER ADOPTION OF CITY COUNCIL GOALS Assistant City Manager Newton gave the staff report on this item. She explained that on January 23 council met in a goal setting meeting to focus on goals for the upcoming two-year period. She said these are goals that would set council priorities and areas council want to focus on,but are not exclusive to everything the city will be working on during the next two-year period. She went through the six goals: • Advance a local option levy and facility bond to voters that would increase resources and space for day to day services. • Expand recreation opportunities for the people of Tigard. • Make Downtown Tigard a place where people want to be. • Pursue development of light rail along the Southwest Corridor. • Implement the Tigard Triangle Strategic Plan. • Annex territories into the city. Ms. Newton explained the decision making process council went through to come up with the six goals and why some things were left off at this time. Mayor Cook explained what council discussed at their goals setting meeting and why they chose six goals to focus on. He said staff and council will do much more than what is outlined in each of the six goals,but that these are the specific goals staff is expected to get done in the next two years. Mayor Cook asked staff why there is no time line associated with some of the goals and why some goals have more details included in the report than others. Ms. Newton explained the report would be longer if staff outlined all the steps for each goal,but that a work plan could be attached. TIGARD CITY COUNCIL MEETING MINUTES — March 7, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 5 of 7 Council President Snider agreed with Mayor Cook in that some goals look disproportionate due to the lack of details. Councilor Goodhouse agreed. Ms. Newton said she would have staff add more details on those that were lacking enough detail. Councilor Goodhouse stated he would like to see the date for completion on"Issues for Future Council Direction" changed from 2017-2019 to 2017-2021,since council had agreed these items would be on the table,but are not included in the actual goals. Council President Snider suggested there may be an opportunity to have further discussions with King City once Tigard has looked at a cost analysis of how much money would be needed for Tigard to participate in the Urban Growth Boundary Expansion with King City. He said that staff had given a clear explanation of this cost during council's goals meeting and those costs were much higher than what King City believes it will take. Ms. Newton said she spoke with the City Manager of King City earlier in the day and suggested King City submit something that shows what each city needs to do and costs associated with moving forward. Mayor Cook explained he has a few meetings scheduled with the City Manager of King City and Ms. Stasny within the next week where they will be discussing this. Councilor Goodhouse said that with this item being on the list of"Issues for Future Council Direction,"it gives them the opportunity to look at it,but doesn't necessarily commit staff time. Councilor Anderson agreed and said it was always the intent to bring this area into the city,but there are other issues staff brought forward during the council goals meeting that council felt should be accomplished first. He is all for looking at it again. Mayor Cook agreed,it was always the intent to look at this later,but would like to see it happen sooner than later. He explained there are still unknowns,but with the addition of the Title 11 plans, the city wouldn't be doing everything they had to do with River Terrace and because of this,once the city adds this to their goals it will not take ten years like River Terrace did. He said the ten-year period could shrink down to possibly one,two or three years, so that even if Tigard waited three years,it wouldn't take ten years after that to complete because of the new requirements. Mayor Cook explained the city hasn't figured out a way to finance the operational costs of River Terrace and this is a big issue,and then to include River Terrace South would additionally complicate financing costs. He said council needs to solve short-range financing problems first. Council President Snider said that any kind of motion needs to include the amendments to the timeline as referenced above and additional details to the Triangle goal. Council President Snider motioned to adopt city council goals as amended and Councilor Goodhouse seconded the motion. Mayor Cook conducted a roll call vote and the motion passed unanimously. TIGARD CITY COUNCIL MEETING MINUTES—March 7, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 6 of 7 Name Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ 8. NON AGENDA ITEMS—None. 9. EXECUTIVE SESSION—None. 10. ADJOURNMENT At 7:19 p.m. Council President Snider motioned to adjourn the meeting and Councilor Goodhouse seconded the motion. Motion was approved by unanimous vote of Council. Name Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider V Councilor Woodard ✓ Kelly Burgoyne,Deputy City Recorder Attest: John L. Cook,Mayor Date: TIGARD CITY COUNCIL MEETING MINUTES — March 7, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 7 of 7 AIS-3055 4. B. Business Meeting Meeting Date: 03/28/2017 Length (in minutes):Consent Item Agenda Title: Proclaim National Community Development Week Prepared For: Joanne Bengtson,City Management Submitted By: Joanne Bengtson,City Management Item Type: Receive and File Meeting Type: Proclamation Public Hearing: No Publication Date: Information ISSUE Should Mayor Cook proclaim April 17-21 as National Community Development Week? STAFF RECOMMENDATION / ACTION REQUEST Issue the proclamation KEY FACTS AND INFORMATION SUMMARY This is the 31st year of setting aside an entire week to commemorate community development activities on the national and local level.The continued support of municipalities and nonprofit service providers will help provide a focus on the CDGB and HOME Investment Partnerships programs and their accomplishments over the past years. OTHER ALTERNATIVES COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION Mayor Cook issued this proclamation in 2016. Attachments Proclaim National Community Development Week j r Y r ' 3 3= ,. . N r4 s. v = r f r s K ... 4 i el ...., 5X11. ter: 4 Ai MiV�J ti( .1 . Cir of Tigard IV'_ National Community Development Week *°' , April 17 - 21, 2017 '` r WHEREAS,the Community Development Block Grant Program was enacted into law by President Gerald Ford,as the centerpiece of the Housing and Community Development Act t '. �` of 1974;and I.;, .. WHEREAS,April 17-21,2017 has been designated as National Community Development ''-„,„,j, ., 3 Week to celebrate the Community Development Block Grant(CDBG)Program and the Home Investment Partnerships(HOME)Program;and } 4 lt`+ WHEREAS,the CDBG program has successfully demonstrated its ability to help our community provide much-needed public services for economically, mentally or physically ' 3� 4. - , Y. disadvantaged residentsL. ,construction/renovation of community gathering places and reconstruction of city-owned infrastructure and completion of neighborhood improvements including major sewer,drainage and street projects;and 1 -,a:;' -- WHEREAS,the HOME Program provides funding to local communities to create decent, safe and affordable housing opportunities for low-income persons. Nationally,over one L:, '4i million units of affordable housing have been completed using HOME funds; and Or WHEREAS,the CDBG program has considerable flexibility and allows communities to carry ty? ` -:, out activities that are tailored to their unique affordable housing and neighborhood revitalization needs;and '41 .; WHEREAS,since the program started,the Tigard community has received nearly$4 million :. in CDGB funds;and t, y' NOW THEREFORE BE IT RESOLVED THAT I,John L.Cook,Mayor of the City of Tigard, d Oregon,do hereby proclaim the week of April 17-21,2017 as `F NATIONAL COMMUNITY DEVELOPMENT WEEK . in Tigard,Oregon and urge Congress and the Administration to recognize the outstanding work accomplished locally and nationally by CDBG and HOME Investment Partnerships Programs by supporting funding for both programs in FY2018. Ps Dated this day of ,2017. (s+,. r' IN WITNESS WHEREOF,I have hereunto set my hand and caused the Seal of the 4., t City of Tigard to be affixed. ,... John L. Cook, Mayor t,' City of Tigard •4 ek.. Attest: ,.R City Recorder , " AIS-3056 4. C. Business Meeting Meeting Date: 03/28/2017 Length (in minutes):Consent Item Agenda Title: Proclaim April as Arbor Month Prepared For: Joanne Bengtson,City Management Submitted By: Joanne Bengtson,City Management Item Type: Receive and File Meeting Type: Proclamation Public Hearing: No Publication Date: Information ISSUE Should Mayor Cook proclaim April as Arbor Month in Tigard? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends proclaiming April as Arbor Month. KEY FACTS AND INFORMATION SUMMARY The City of Tigard has a proud history of commitment to preserving,enhancing and maintaining its urban forest.The city's trees provide an important backdrop for life in Tigard. In Oregon,the first week of April is known as Oregon Arbor Week. In Tigard,the city council invites citizens to celebrate trees during the entire month of April. An Arbor Day observance and proclamation are one of four standards established by the National Arbor Day Foundation to qualify for Tree City USA.Tigard has received this recognition annually since 2001.Read about the Tree City USA program at http://www.arborday.org/TreeCityUSA The Mayor will celebrate Arbor Day by planting trees with Tigard High School CE2 students in Jack Park. OTHER ALTERNATIVES N/.1 COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION Mayor Cook issued this proclamation in 2016 Attachments Arbor Month Proclamation r to `4- yr/ 4 ,‘ - , 4 City gfTigard s'. • ARBOR MONTH S 41 , 1 Whereas, In 1872,Arbor Day,a special day set aside for the planting of trees,was } first celebrated in Nebraska;and Whereas,Tigard's urban forest is part of a larger ecology that spans from mountains 4 to ocean and is integral to our region's environmental quality;and 'I Whereas,our urban forest includes a diversity of public and private trees that grace • - our streets,yards,parks and greenways, provide habitat for wildlife,soften r.' ..., hardscapes, clean the air, protect water resources,and ensure that everyone can '<' , experience natural beauty where we live,work and play;and I. -; Whereas,the City of Tigard recognizes that our urban forest is a necessity and is an 'i integral part of the city's infrastructure;and `i Whereas,we are committed to providing resources to maintain and enhance the 74, urban forest;and Whereas,people of all ages and backgrounds, including citizens,civic organizations, 'ti<;y.- businesses,and government agencies, have formed partnerships to participate ' actively in the stewardship and caretaking of Tigard's urban forest. ik. NOW THEREFORE BE IT RESOLVED that I,John L.Cook, Mayor of the City of - ,. V. Tigard,Oregon,do hereby proclaim the entire month of April 2017 as, t - ARBOR MONTH in Tigard, Oregon and encourage people throughout the city to become more "E involved with the planting and stewardship of the urban forest throughout 2017. .- ;iI s- Dated this day of ,2017 IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the '7',P. 5 City of Tigard to be affixed. t‘.:,-,1-'' �F , John L. Cook, Mayor '� -' City of Tigard a- Attest: ,, rr'1 City Recorder :?,\'-:y `c. 11':, ' t. •I.pa 3 A r. ( ! +A A - / A .R. - _I- �' In �. ,A > l-4,-1• AIS-3011 5. Business Meeting Meeting Date: 03/28/2017 Length (in minutes): 10 Minutes Agenda Title: Consider a Resolution Granting Exemption from Property Taxes under TMC 3.50 for Five Non-Profit Low Income Housing Properties Prepared For: Toby LaFrance Submitted By: Liz Lutz, Finance and Information Services Item Type: Resolution Meeting Type: Council Business Meeting- Main Public Hearing Yes Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall four low-income housing projects owned and operated by Community Partners for Affordable Housing (CPAH) and one property operated by Resident Resources be exempted from City of Tigard Property taxation for 2017? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of this resolution. KEY FACTS AND INFORMATION SUMMARY Tigard Municipal Code 3.50 allows certain organizations providing low-income housing to be exempted from Tigard property taxation upon application by March 1 of each year and a demonstration of compliance with certain criteria listed in the code. Community Partners for Affordable Housing owns and operates Greenburg Oaks located at 11875 SW 91st Avenue in Tigard. They also own Village at Washington Square at 11157-11163 SW Hall Blvd in Tigard;the Knoll at Tigard, 12291 SW Knoll Drive;and a single family house located at 9330 SW Tangela Court in Tigard. Resident Resources owns and operates Hawthorne Villas at 7705 SW Pfaffle St. These projects are operated as low-income housing and meet all criteria listed in the Tigard Municipal Code. Community Partners for Affordable Housing submitted four applications for exemption from 2017 property taxes on February 6,2017,and Resident Resources submitted their application for Hawthorne Villas on February 10,2017 which is within the March 1 deadline. These applications were reviewed by staff in the city's Community Development Department and staff determined that the requested tax exemptions are consistent with the applicable Tigard Municipal Code and also the adopted City Housing Policy. The attached resolution gives consent from the City of Tigard for this tax exemption. OTHER ALTERNATIVES Do not approve this tax exemption. COUNCIL OR CCDA GOALS, POLICIES,MASTER PLANS NA DATES OF PREVIOUS CONSIDERATION N:� Fiscal Impact Cost: 389,826 Budgeted (yes or no): No Where Budgeted (department/program): General Fund Additional Fiscal Notes: If passed,the General Fund will receive$389,826 in property tax revenue. Attachments Resolution CPAH Staff Letter Greenburg Oaks Tangela The Knoll at Tigard Village at Washington Sq Hawthorne Villas Letter Hawthorne Villas Fiscal Impact CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 17- A RESOLUTION GRANTING AN EXEMPTION FROM PROPERTY TAXES UNDER TIGARD MUNICIPAL CODE SECTION 3.50 FOR FIVE NON-PROFIT LOW-INCOME HOUSING PROJECTS OWNED AND OPERATED BY COMMUNITY PARTNERS FOR AFFORDABLE HOUSING (CPAH) AND HAWTHORNE VILLAGE GENERAL PARTNERSHIP. WHEREAS,Tigard Municipal Code (TMC) section 3.50 provides procedures for application and consideration on non-profit corporation low-income housing project exemptions from property taxes;and WHEREAS,the TMC requires application for exemption be filed with the city by March 1;and WHEREAS,Community Partners for Affordable Housing is a qualified non-profit organization, filed a request dated February 6,2017 for exemption from property taxes for four low-income housing projects,and meets all the applicable criteria for exemption in TMC 3.50,and WHEREAS, Resident Resources filed a request dated February 10, 2017 for exemption, and meets all the applicable criteria for exemption in TMC 3.50;and WHEREAS,upon review of the application it was found granting the exemptions would be consistent with the applicable Tigard Municipal Code and also with the adopted city housing policies. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The applicants, Community Partners for Affordable Housing and Resident Resources qualified for the exemption set forth in Tigard Municipal Code Section 3.50. SECTION 2: The Finance and Information Services Director is directed to certify to the Assessor of Washington County that the five properties that received exemption in the prior year: a. Village at Washington Square,11157-11163 SW Hall Blvd.,Tigard b. Single-family house located at 9330 SW Tangela Court,Tigard c. Greenburg Oaks,11875 SW 91'Avenue,Tigard d. The Knoll @ Tigard,12291 SW Knoll Drive,Tigard e. Hawthorne Villas,7705 SW Pfaffle,Tigard SECTION 3: The Finance and Information Services Director is directed to certify to the Assessor of Washington County that the City of Tigard has not added any new properties receiving exemption of property taxes this year that did not receive exemption in the prior year. SECTION 4: The Finance and Information Services Director is informing the Assessor of Washington County that the City of Tigard has not dropped exemption of property taxes for any properties that received exemption in the prior year: SECTION 5: This resolution is effective immediately upon passage. RESOLUTION NO. 17- Page 1 PASSED: This day of 2017. Mayor-City of Tigard AT1'hST: City Recorder-City of Tigard RESOLUTION NO. 17- Page 2 III C ' City of Tigard TIGARD Memorandum To: Toby LaFrance, Finance and Information Services Director From: Hannah Holloway,Project Planning Assistant Re: Community Partners for Affordable Housing 2017 Applications for Tax Exemption Date: 7 March 2017 The nonprofit Community Partners for Affordable Housing(CPAH) has applied for Tigard's low- income housing tax exemption for its four properties within the city dedicated to affordable housing.Those four properties are the 84-unit Greenburg Oaks,26-unit Village at Washington Square,48-unit The Knoll,and a single family residence known as"Tangela House". Tigard Municipal Code Chapter 3.50 details criteria that corporations must meet to be granted tax exempt status.Whether and how CPAH meets each of these five criteria at each of its four properties is detailed in the remainder of this memorandum. 1. The property is owned or being purchased by a corporation that is exempt from income taxes under Section 501(c) (3) or(4) of the Internal Revenue Code . . . A letter,attached to CPAH's applications and issued by the Internal Revenue Service,confirms the nonprofit's 501(c)(3) status. 2. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining,in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable,scientific, literary or educational purposes or to the State of Oregon. Application requirements included under TMC 3.50.040 do not list information on asset liquidation as a necessary element. CPAH did not initially provide such information. Upon request,Lynette Soares,Fiscal Manager,confirmed that Article VI of the CPAH Articles of Incorporation document includes a provision for the liquidation of assets in the manner detailed above. 3. The property is occupied by low-income persons. CPAH verifies residents'incomes during the tenancy application process,and reverifies tenants' incomes yearly. CPAH's covenant with Washington County and the State of Oregon requires that CPAH properties are rented to households at or below 60% of the area median income;income- restriction compliance in the units is monitored by the Department of Housing and Community Services and the Washington County Office of Community Development. 4. The property or portion of the property receiving the exemption is actually and exclusively used for the purposes described in Section 501 (c) (3) or(4) of the Internal Revenue Code . . . CPAH has applied for a full exemption at each of its four properties in Tigard.All four properties are dedicated to nonprofit activities. 5. The exemption has been approved as provided in Section 3.50.050 This criterion stipulates that the city shall determine applicants'qualification for exemption within 30 days of application filing. If applicants qualify,the city shall certify that all or a portion of each property is exempt from taxation to the Washington County assessor.This memorandum shall be taken as confirmation of CPAH's eligibility for tax exemption at the four properties listed in the introduction. Conclusion: CPAH has received an exemption for its Tigard properties since 1996.The applications submitted this year indicate no change in circumstances that would prohibit the nonprofit from receiving the exemption again this year. The city adopted its Affordable Housing Program in 2002.As a part of that program,the city included a tax exemption for affordable housing providers as one strategy with which it could support the development and operations of affordable housing.The exemption was created to minimize operating costs for nonprofit housing providers so that they can keep expenses—and thus, rents—as low as possible. CPAH has indicated in each of its four applications that 100% of the exemption will be passed on as a subsidy to its residents. Granting the exemption to CPAH is consistent with TMC standards,as well as adopted city housing policies and goals. COMMUNITY PARTNERS FOR AFFORDABLE HOUSING, INC. 11 �1 � On n PO Box 23206 • Tigard OR 97281-3206 • Tel:503-293-4038 • Fax:503-293-4039 • www.cpahinc.org • info@cpahinc.org City of Tigard Application for Tax Abatement Februa y 6,2017 Greenburg Oaks (formerly Villa La Paz)Apartments 11875 SW 91st Avenue, Tigard A. Property Description 1 B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. IRS Letter A. Property Description Greenburg Oaks Apartments (Tax account # R-276472), 11895 SW 91st Avenue, is just off Greenburg Road, near Pacific Highway. The site sits on 3.01 acres and consists of 84 units in four buildings: 12 one-bedroom/one-bath 564 square foot units, 60 two-bedroom/one-bath 839 square foot units, and 12 three-bedroom/one-bath 1,007 square foot units. In 1998, CPAH added the now much used Community Center to the complex. The Community Center houses a computer center, library, multipurpose room and property management office. In 2005/2006,CPAH completed a$3.5 million dollar rehabilitation of the apartment interiors,building exteriors and project site. Highlights of the rehab included:replacing all building siding and windows,re-configuring and repaving the parking lot, replacing all landscaping, upgrading the recreation facilities, upgrading site lighting and signage. Interior work included replacing all waterlines and drains, replacing all cabinets, countertops, light fixtures and most appliances (refrigerators, dishwashers, hot water heaters)with Energy Star rated devices, replacing all window coverings and many carpets, re-texturing and repainting all apartment interiors. The rehab project featured energy saving appliances, compact fluorescent light fixtures, better insulation,and low volume plumbing fixtures, all of which have reduced tenant energy costs. The rehab work was done without displacing any tenants and with very minimal rent increases. As a testament to the quality of the rehab work, vacancies generally average under 5%, accounts payable are current and annual cash flow is positive. In 2011, CPAH completed exterior re-caulking and exterior painting as part of on-going quality maintenance at Greenburg Oaks. Financing for the project came from a number of public and private grants and low income housing tax credit investments. No new debt was taken on. Approximately $10,000 of the funding was provided by the City of Tigard Affordable Housing Fee Assistance program. Other funding came from the Meyer Memorial Trust, the Paul Allen Foundation, the Oregon Community Foundation, Washington County Office of Community Development through the CDBG and HOME investment programs, and the State of Oregon. Key Bank increased its investment by over$2 million dollars. Legal Description: The site is located in the southeast 1/4 of Section 35,Township 1 South, Range 1 West(Willamette Meridian). Tax Lot: The Washington County Map shows the site as tax lot 23-74-2000, Parcels I, II, and III. B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. CPAH's acquisition and renovation of the complex has ensured that the previously neglected property is professionally managed as safe, decent, and affordable housing. Greenburg Oaks has significantly reduced the housing cost burdens of our families. The efficient delivery of our services improves the health and prospects for all household members, and serves to help break the multi- generational cycles of poverty. CPAH's commitment to 40 years of affordability for those at 50 and 60%of median income guarantees that these apartments will be affordable effectively for the life of the buildings. CPAH maintains active partnerships with the Tigard Police Department, Tualatin Valley Fire & Rescue, Tigard Libraries, and the Tigard School District to enhance the safety and quality of life for residents and to be sure that our programs are well-coordinated with other community resources. Partnerships with Community Action, Good Neighbor Center, Luke-Dorf, Neighborhood House, APPLICATION FOR TAX ABATEMENT PAGE 2 OF 4 Lifeworks NW and other organizations to provide information and referral as well as emergency services like food boxes and rent and utility assistance. Coordination agreements with these agencies enhances ongoing case management and provides a fresh start to many families facing significant barriers moving from homelessness to permanent housing. Several families each year are being reunited with their children as a result of receiving a housing opportunity at Greenburg Oaks. Three of the apartments are reserved for low income families with at least one member in active recovery from alcohol or drug addiction and an additional two apartments are set-aside for clients of the LukeDorf Housing Team. The Community Center at Greenburg Oaks is the focal point for support, skill building, and community building activities offered by CPAH through its resident services program which includes after-school and summer youth programs as well as the annual winter coat distribution and holiday event. CPAH's on-site computer learning center is used by youth for homework, research, e-mail, and educational games; and by adults for job search activities and Internet access. The Tigard Library has twice obtained grant resources to purchase children's material for our on-site library. CPAH offers a variety of adult services as well. The Community Center is also host to a number of general community activities including rent readiness courses, HopeSpring parenting classes, financial literacy classes, parenting safety skills and budget and nutrition classes. The Community Center hosts weekly meetings for AA, NA, and Alanon groups. Food distributions are also held in the Community Center for both the residents at Greenburg Oaks and others in the surrounding community. C. Certification of Resident Income Levels Resident income levels are verified upon application for tenancy and are recertified each year. CPAH has covenants with the state and with Washington County to use the property exclusively for low income rentals for a period of at least 40 years. These covenants require that all households have earnings at or below 60%of the area median income. Some units are restricted to households earning at or below 50%. Compliance with these covenants is monitored by the State of Oregon Department of Housing and Community Services and by theWashington County Office of Community Development. We certify that all apartments in this property are targeted to and remain affordable to households earning at or below 60%of the Area Median Income. D. How Tax Exemption Will Benefit Residents 100% of the property tax exemption is a direct subsidy for the residents. Every dollar reduction in operating costs is passed on as a reduction in the scheduled rents. Some costs,such as the cost of operating our youth programs, must be funded from outside sources mostly through fund raising. Without property tax abatement, we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less-severe police calls, healthier students, and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is general partner of the Villa La Paz Limited Partnership, a single asset entity established for the purpose of acquiring the apartments and qualifying for low-income housing tax credits. CPAH's IRS Determination Letter is attached. CPAH undergoes a full independent audit of its books annually, as does Villa La Paz, LP. Both the State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the project and resident files annually. APPLICATION FOR TAX ABATEMENT PAGE 3 OF 4 F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. b-ite IP / Rachael Duke, Executive Director ate APPLICATION FOR TAX ABATEMENT PAGE 4 OF 4 • INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY DISTRICT DIRECTOR P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: 93-1155559 11AH 7 I jigs DLN: 17053030720009 COMMUNITY PARTNERS FOR AFFORDABLE Contact Person: HOUSING THOMAS E O'BRIEN ID#I 31187 PO BOX 23206 Contact Telephone Number: TIGARD, OR 97281-3206 (877) 829-5500 Our Letter Dated: February 1995 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a) (1) and 170(b) (1) (A) (vi) . Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However', if you lose your section 509(a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, Akeia-0/ tZ,Le7 District Director Letter 1050 (DO/CG) COMMUNITY PARTNERS ,i " • • FOR AFFORDABLE HOUSING, INC. PC)Box 23206•Tigard OR 97281-3206•Tel:503-293-4038•Fax:503-293-4039•www.cpahinc.org• info@cpahinc.org City of Tigard Application for Tax Abatement February6,2017 Tangela Single Family Rental Home 9330 SW Tangela, Tigard, OR A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents [E. Tax Exempt Status F. Verification of Information G. IRS Letter A. Property Description Community Partners for Affordable Housing,Inc.acquired the single family"Tangela House" at 9330 SW Tangela in Tigard, on December 31, 1999, with assistance from the Washington County CDBG program and an original loan from Washington Mutual Savings Bank which is now with Banner Bank. The Tangela home is located just two blocks from CPAH's multifamily project, Greenburg Oaks Apartments and is overseen by the site manager at Greenburg Oaks. The two story 1,916 square foot house sits on a 5,450 square foot lot and is zoned R-7 residential. CPAH converted an upstairs bonus room into a 5th bedroom and completed other necessary repairs after the initial acquisition as well as additional upgrades after the first turnover. In 2013, CPAH replaced the furnace and plans to re-roof and re-paint the home in the next two years. The first residents lived in the home from early 2000 until late 2006 when they moved out of the area. The current residents have been in the home since February 2007 and remain in the home today. We consider these tenancies as very successful outcomes providing a stable neighborhood environment to raise families that had previously experienced transient and sub-standard housing. Legal Description: Barbee Court, Lot 1,Tigard, County of Washington, State of Oregon. Tax Lot: 1S135DC-05300. B. Project's Charitable Purpose Community Partners for Affordable Housing,Inc.(CPAH)creates and maintains safe, healthy,and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. CPAH acquired the single family home in order to assist the County and the Good Neighbor Center Shelter in meeting a"replacement unit"requirement triggered by the Uniform Relocation Act when the shelter acquired its current site and demolished a single family home housing a low- income family. CPAH completed needed repairs and upgraded the Tangela home to a five- bedroom dwelling, in order to provide a rare opportunity in our community—an affordable single- family rental house for a very large family. The home is proximate to CPAH's Greenburg Oaks property, where management and resident services are available to the household. These services include a computer center, community room, neighborhood watch, Individual Development Account grants, and other programs.The resident services coordinator and property management staff visit the home on a regular basis to ensure that the property is well managed and to maintain an ongoing relationship with the residents. The home is located within a census tract(309)which has a higher than average concentration of low-income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole. This area boasted the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9%of Tigard's population base, it is home to nearly 16%of the city's minority households. C. Certification of Resident Income Levels Resident income level is verified upon application, and must be less than 60%of the area's median income. Income is recertified annually. We certify that all residents served by this property earned at or below 60%of the AMI. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 D. How Tax Exemption Mill Benefit Residents 100%of the property tax exemption is passed on as a direct subsidy for the residents. Every dollar reduction in operating costs results in a reduction in the scheduled rents. Some costs, such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement,we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing results in a net savings of public resources. Fewer and less-severe police calls, healthier students, and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is direct owner of the Tangela property and is a nonprofit 501(c)(3) organization. Our operations are audited annually to, among other things, confirm that we are in compliance with our charitable status and with requirements of the County grant and Banner Bank loan documents. F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of residents for compliance with program guidelines. (.,,t__-, c") , 7 Rachael Duke, Executive Director D to APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY DISTRICT DIRECTOR P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: 93-1155559 MAR DLN: 17053030720009 COMMUNITY PARTNERS FOR AFFORDABLE Contact Person: HOUSING THOMAS E O'BRIEN ID#( 31187 PO BOX 23206 Contact Telephone Number: TIGARD, OR 97281-3206 (877) 829-5500 Our Letter Dated: February 1995 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code ae an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a) (1) and 170(b) (1) (A) Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However', if you lose your section 509(a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of thin letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely ��youurs, } /�,� 1-1/ District Director Letter 1050 (DO/CG) COMMUNITY PARTNERS FOR AFFORDABLE HOUSING INC. Attatil • PO Box 23206•Tigard OR 97281-3206•Tel:503-293-4038•Fax:503-293-4039•www.cpahinc.org• info@cpahinc.org City of Tigard Application for Tax Abatement February 6,2017 The Knoll at Tigard 12291 SW Knoll Drive Tigard, Oregon 97223 A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. IRS Letter PAGE 1 OF 3 A. Property Description The Knoll at Tigard is located at 12291 SW Knoll Drive in Tigard (on Hall Boulevard between SW Knoll and SW Hunziker). The Knoll is a prime example of urban development, perched on the edge of the developing downtown of the City of Tigard, walking distance to the library, senior center, transportation, shopping and a variety of other amenities. Previously, three parcels of land totaling 1 acre supported only 3 single family residences. Following the recent zone change, and consistent with the long range goals of the City development plans, The Knoll at Tigard brings this density to nearly 50 units per acre. The design takes advantage of a site with an established infrastructure of utilities, adjacent transportation and services. The Knoll receives a "very walkable" rating from Walkscore.com. The Knoll at Tigard is a 45,000 square foot, 48-unit apartment building along with common rooms and meeting space, providing active living for independent, low-income seniors. Streetscape improvements were required on all 3 street frontages, including development of sidewalks, planting strips with street trees and below-grade utilities. Public spaces including entry courtyards and site walks are well lit. The Knoll at Tigard is a secure access building with a surveillance system. The total site contains .98 acres. Legal Description: see attached Exhibit A Tax Lot: R458454, R458436, R458445 B. Projects Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. The Knoll at Tigard is CPAH's first affordable units for seniors in Tigard and compliments CPAH's affordable units for seniors in Hillsdale. The 48 units are affordable to very low and low income residents on a permanent basis(The Knoll at Tigard provides affordable housing for a minimum of sixty(60)years,with maximum rents regulated by covenants on the property). Rents are affordable to households at 30% to 60% of area median income and below market rents. 45 of the units are one bedroom units and 3 of the units are two bedroom units(1 of which for the on-site manager). 12 of the one bedroom units are Project Based Section 8 units through the Washington County Housing Authority and are set-aside for Veterans. CPAH has expanded its community partnerships with the Tigard Police, the Tigard Library and the Veteran's Administration.The common areas include a living room and kitchen for residents'use as well as a computer center. The community room is available for resident potlucks, holiday events and other activities. C. Certification of Resident Income Levels Resident income levels are certified upon application. The seniors at The Knoll may remain in their units as long as they income qualify at entry. Rents for the one bedroom units average $677/per month for the one-bedroom apartments(25%+ below average market rates). Rents are$780 per month for the two-bedroom apartments. Water, sewer and trash are included in the monthly rental. PAGE 2 OF 3 D. How Tax Exemption Will Benefit Residents The property tax exemption is a direct savings for the residents,allowing for reduced operating costs which results in reduced rents for the seniors at The Knoll. For both the initial development,and long term operations of the project,full tax abatement is essential. The project pro forma allowed for the construction of The Knoll which meets all City and State design requirements along with affordable rents for our seniors. The Knoll includes financing through Washington County HOME and CDBG funds, State of Oregon Trust Fund and Tax Credits. JPMorgan Chase is the private lender with Enterprise Neighborhood Partners as the investor(under the tax credit program). Tax abatement was critical in meeting lender and investor requirements while keeping rents affordable for The Knoll at Tigard and is key to long- term sustainability of the project operating with affordable rents for seniors. E. Tax Exempt Status CPAH, an Oregon non-profit, is the general partner of The Knoll at Tigard Limited Partnership, a single asset entity. CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually, as does The Knoll at Tigard. Mark Schwing of Markusen & Schwing in Beaverton currently provides audit services for CPAH and CPAH's single asset properties.The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development both inspect and audit the project annually. The tax credit investor(Limited Partner) also monitors and inspects the project as does Washington County. F. Verification of Information As CPAH's executive director, I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management acts as the property management agent providing the day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. qt kV/j AL( // achael Duke, CPAH Executive Director Date PAGE 3 OF 3 • EXHIBIT A LEGAL DESCRIPTION • Real property in the County of Washington,State of Oregon,described as follows: LOTS 3,4,AND 5 OF THE DULY RECORDED PLAT OF"KNOLL ACRES", WASHINGTON COUNTY PLAT RECORDS,EXCEPTING THOSE PORTIONS TAKEN FOR STREET PURPOSES,SITUATED IN THE NORTHWEST ONE-QUARTER OF SECTION 1 AND THE NORTHEAST ONE-QUARTER OF SECTION 2,TOWNSHIP 2 SOUTH,RANGE 1 WEST,WILLAMETTE MERIDIAN,IN THE CITY OF TIGARD, WASHINGTON COUNTY,OREGON,AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 5,AND THE TRUE PLACE OF BEGINNING; THENCE SOUTH 29°01'00" WEST,ALONG THE SOUTHEAST LINE OF SAID LOT 5,A DISTANCE OF 149.08 FEET TO THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SW HUNZIKER STREET(WIDTH VARIES,BEING 37 FEET NORTHEASTERLY OF CENTERLINE); THENCE NORTH 61°0l'39"WEST, PARALLEL WITH AND 37.00 FEET NORTHEAST OF THE CENTERLINE OF SW HUNZIKER STREET,AND ALONG SAID NORTHEASTERLY RIGHT-OF-WAY LINE,A DISTANCE OF 55.91 PEET TO A POINT OF CURVE; THENCE ALONG THE ARC OF A 26.00 FEET RADIUS TANGENT CURVE CONCAVE TO THE NORTHEAST THROUGH A CENTRAL ANGLE OF 60°16'39" (CHORD BEARS NORTH 30°53'20"WEST,A DISTANCE OF 26.1I FEET)AN ARC DISTANCE OF 27.35 FEET TOA POINT ON THE EASTERLY RIGHT-OF-WAY LINE OF SW HALL BOULEVARD(WIDTH VARIES,BEING 50 EASTERLY OF CENTERLINE); THENCE NORTH 0°45'00"WEST,PARALLEL WITH AND 50.00 FEET EAST OF SAID CENTERLINE OF SW HALL BOULEVARD,AND ALONG SAID EASTERLY RIGHT-OF- WAY LINE,A DISTANCE OF 255,81 FEET TO A POINT OF CURVE; THENCE ALONG THE ARC OF A 26.00 FEET RADIUS TANGENT CURVE CONCAVE TO THE SOUTHEAST,THROUGH A CENTRAL ANGLE OF 97°18'55"(CHORD BEARS NORTH 47°54'27"EAST,A DISTANCE OF 39.04 FEET)AN ARC DISTANCE OF 44.16 FEET TO THE SOUTHERLY RIGHT-OF-WAY LINE OF SW KNOLL DRIVE(WIDTH VARIES,BEING 27.00 FEET SOUTHERLY OF CENTERLINE); THENCE SOUTH 83°26'05" EAST,PARALLEL WITH AND 27.00 FEET SOUTH OF SAID CENTERLINE OF SW KNOLL DRIVE,AND ALONG SAID SOUTHERLY RIGHT-OF- WAY LINE, A DISTANCE OF I07.23 FEET TO THE EAST LINE OF SAID LOT 3; . EXHIBIT A 1 DWT 1424293514 0018349.000076 THENCE SOUTH 00°45'00"EAST,ALONG THE EAST LINE OF SAID LOTS 3 AND 4,A DISTANCE OF 186,84 FEET TO THE TRUE PLACE OF BEGINNING EXHIBIT A 2 bWT 14242935v4 0088349.000076 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY DISTRICT DIRECTOR P. 0. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: 93-1155559 Lin 7 i DLN: 17053030720009 COMMUNITY PARTNERS FOR AFFORDABLE Contact Person: HOUSING THOMAS E O'BRIEN ID#( 31187 PO BOX 23206 Contact Telephone Number: TIGARD, OR 97281-3206 (877) 829-5500 Our Letter Dated: February 1995 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you arc not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a) (1) and 170(b) (1) (A) (vi)'. Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However', if you lose your section 505(s) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, (4(1,7 District Director Letter 1050 (DO/CG) COMMUNITY PARTNERS - • '• MI11% FOR AFFORDABLE HOUSING, INC. • 4 PO Box 23206•Tigard OR 99281-3206•TcI•503.-293-4038•Fax:503-293-4039•www.cpahinc.org• info@cpahinc.org City of Tigard Application for Tax Abatement February6,2017 Village at Washington Square 11157-11163 SW Hall Boulevard, Tigard A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels ID. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. IRS Letter A. Property Description Village at Washington Square is located at 11157-11163 SW Hall Boulevard, between SW Spruce and SW Pfaffle in Tigard. The site is located within the Washington Square Regional Center and is proximate to employment opportunities as well as public transportation and other services. The Village at Washington Square includes three residential buildings with a total of 26 dwelling units, and a community building, all arranged around a central courtyard/play yard. The project includes one studio, seven one-bedroom, five two-bedroom, seven three-bedroom and six four-bedroom units. Eleven of the units are traditional apartment flats,while the other 15 are two-story townhomes with bedrooms above the main floor living space. The total site sits on .84 acres. In 2012,Village at Washington Square received exterior caulking and painting as part of the on-going focus on quality maintenance. Some additional landscaping was completed in 2013. Legal Description: Partition Plat 1998-038, Lot 1 and Partition Plat 1998-038, Lot 2 in the City of Tigard, County of Washington, State of Oregon Tax Lot: 1S135DA(04600&04700) B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. When it opened in 2002,The Village at Washington Square was the first addition of affordable units to the Tigard housing stock in a decade. The 26 units are priced to be affordable to very low, low, and moderate-income residents. The project is subject to an extended use agreement to keep the rents affordable for 60 years,effectively the full life of the project. This covenant is recorded with the title of the property and requires that rents will be affordable to households at 30%,45%and 60%of area median income and significantly below market rents. Half of the units are three and four bedroom apartments serving larger families who are often unable to find affordable rental opportunities in Tigard. CPAH maintains active partnerships with the Tigard Police Department, Tualatin Valley Fire & Rescue, Tigard Libraries, and the Tigard School District to enhance the safety and quality of life for residents and to ensure that our programs are well-coordinated with other community resources. CPAH works closely with Community Action and other agencies to provide information and referral as well as emergency services such as food boxes as well as rent and utility assistance. Coordination agreements with social service programs such as Lutheran Community Services and Community Action Organization, enhance ongoing case management and link stable housing with successful program outcomes. CPAH offers a variety of programs for youth including after school and summer programs as well as adult services including Neighborhood Watch, classes in support of parenting skills, budgeting and other financial literacy skills, and nutritional shopping and cooking. The Village at Washington Square is located within a census tract (309) which has a higher than average concentration of low-income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole. This area has the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9% of Tigard's population, it is home to nearly 16%of the city's minority households. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 C. Certification of Resident Income Levels Resident income levels are verified upon application for tenancy and at annual re-certification. Residents may remain in their units as long as they income qualify at entry. Rents are well below the market for the area. We certify that all apartments in this project are targeted to and remain affordable to households earning at or below 60%of the AMI. Compliance with income restriction requirements is audited annually by the State of Oregon Department of Housing and Community Services, Washington County Office of Community Development, and by our limited partner investor, Key Bank. D. How Tax Exemption Will Benefit Residents 100% of the property tax exemption is a direct subsidy for the residents (lower rents) as operating costs are lower due to tax abatement. Some costs,such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement,we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less-severe police calls, healthier students, and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is the general partner of the Village at Washington Square Limited Partnership, a single entity asset. CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually, as does the Village at Washington Square. The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the project and resident files annually. F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. tjhtl. (C / I - achael Duke, Executive Director Da e APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY DISTRICT DIRECTOR P. 0. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: 93-1155559 MAR ) I 4111 DLN: 17053030720009 COMMUNITY PARTNERS FOR AFFORDABLE Contact Person: HOUSING THOMAS E O'BRIEN ID)I 31187 PO BOX 23206 Contact Telephone Number: TIGARD, OR 97281-3206 (877) 829-5500 Our Letter Dated: February 1995 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a) (1) and 170(b) (1) (A) (vi) Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. Howeve , if you lose your section 509(a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, r ✓ u a-.01/ 7 District Director Letter 1050 (DO/CG) ' City of Tigard TiGARU Memorandum To: Toby LaFrance,Finance and Information Services Director From: Hannah Holloway,Project Planning Assistant Re: Hawthorne Villa 2017 Application for Tax Exemption Date: 7 March 2017 The City of Tigard has received an application for tax exemption for the Hawthorne Villas property on SW Pfaffle Street.The property is owned by Rajiv Jain,an independent property owner,and managed by Resident Resources,a nonprofit property management company based in Lake Oswego.The two entities work together as the Hawthorne Villas General Partnership. Resident Resources has applied for Tigard's low-income housing tax exemption for the Hawthorne Villas property,which consists of 118 apartment units and a single family home used for manager's lodging and office activities. Tigard Municipal Code Chapter 3.50 details criteria that corporations must meet to be granted tax exempt status.Whether and how Hawthorne Villas GP meets each of these five criteria at the property listed above is detailed in the remainder of this memorandum. 1. The property is owned or being purchased by a corporation that is exempt from income taxes under Section 501(c) (3) or (4) of the Internal Revenue Code . . . Attachment 5 in the Hawthorne Villas application is a letter from the Internal Revenue Services, dated February 8,2017,that confirms 501(c)(3) status for Resident Resources. 2. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind,to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific,literary or educational purposes or to the State of Oregon. Application requirements included under TMC 3.50.040 do not list information on asset liquidation as a necessary element. Resident Resources did not initially provide such information. Upon request, Bill Maxwell,Director of Resident Resources,provided the organization's bylaws in which item 2.03(c) includes a provision for the liquidation of assets in the manner detailed above. 3. The property is occupied by low-income persons. Hawthorne Villas is rent restricted to be affordable to households at 60%or below the area median income for Washington County. Income verification at Hawthorne Villas is conducted by Alexia Consulting,a consulting firm that specializes in affordable property management,approved by the State of Oregon to reliably verify household incomes. Resident incomes are determined at the time of application,and confirmed by yearly audits. 4. The property or portion of the property receiving the exemption is actually and exclusively used for the purposes described in Section 501 (c) (3) or (4) of the Internal Revenue Code . . . Resident Resources is applying for full exemption at Hawthorne Villa.Bill Maxwell,Director of Resident Resources confirmed that 100%of the property is dedicated to non-profit activities,and shall remain so through 2027. 5. The exemption has been approved as provided in Section 3.50.050 This criterion stipulates that the city shall determine applicants'qualification for exemption within 30 days of application filing. If applicants qualify,the city shall certify that all or a portion of each property is exempt from taxation to the Washington County assessor.This memorandum shall be taken as confil nation of Hawthorne Villas GP's eligibility for tax exemption at the property listed in the introduction. Conclusion: Last year was the first year that Resident Resources applied for the city's tax exemption.This year's Hawthorne Villa application indicates that there has been no change in circumstances that would prohibit the nonprofit from receiving the exemption again. The city adopted its Affordable Housing Program in 2002.As a part of that program,the city included a tax exemption for affordable housing providers as one strategy with which it could support the development and operations of affordable housing.The exemption was created to minimize operating costs for nonprofit housing providers so that they can keep expenses—and thus, rents—as low as possible. Granting the exemption to Resident Resources is consistent with TMC standards,as well as adopted city housing policies and goals. www.residentresourcesoregon.org 4800 SW Meadows Rd#300 Lake Oswego,Oregon 97035 Phone 503-534-3777 Fax 503-482-7430 To: City Of Tigard February 10,2017 13125 SW Hall Blvd Tigard,Oregon 97223 Attn:Community Development Application for Tax Abatement Hawthorne Villas Located at 7705 SW Pfaffle Street Tigard,Oregon 97223 A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. Attachments A. Property Description Hawthorne Villa Apartments is located at 7705 S.W.Pfaffle Street in the City of Tigard.The property Is set on 4.76 Acres adjacent to Pacific Highway.The Property is composed of eight apartment buildings with a single family home in front that is currently used as managers home and office with some space used for the community room,See Attachment#1 site plan.In these eight buildings there are one hundred eighteen separate apartments consisting of sixty two one bedroom apartments that are approximately six hundred five square feet,twenty one,one bedrooms that are approximately six hundred eight five square feet,five two bedrooms one bath at approximately seven hundred ninety square feet and thirty studio apartments that are three hundred sixty square feet.The property is restricted to low income families who make 60%of the average medium income for Washington County. The project was purchased (March 2016) by a respected local property owner,Rajiv Jain and Resident Resources under the entity Hawthorne Villas GP.They plan to maintain the affordability component to the property.1He)Eollectively owns and manages over eight hundred apartments in several states.Over three hundred of those apartments participated in section 42 restricted rent housing program.He resides in Portland and is committed to socially responsible ownership of all his properties. He has partnered with Resident Resources to create a safe and secure environment for these valued individuals whom need affordable housing.All the properties that Mr.Jain owns are well maintained with responsible management employees who are compassionate about what they do. ...ice 1.......�. Resident Resources The property being located within walking distance to many local employers and employment sectors makes it an ideal location for those seeking affordable housing.The transportation needs of the Residents is well met as there are numerous transportation hubs within walking distance including Pacific Highway,the 217 and 5 freeways,bus routes and local rail transportation close by. The residents enjoy that there is adequate vehicle parking(171 parking stalls).This relieves them of the high cost of parking a vehicle.This can foster a sense of independence. The Apartments business name is Hawthorne Villas Apartments,it is considered a section 42 affordable housing complex also know as Low Income Housing Tax Credit(LIHTC).it is a federal Program created in 1986 under the Federal Tax Reform Act It accounts for over 90%of the affordable housing in the United States.The nature of the property and location make it an ideal property to receive this tax abatement For your records the tax parcel is R282429 in Census Tract 306.00 with a Zoning of R-12. The lot is over 207,000 square feet with multiple garden areas and courtyards.It has several laundry rooms for residents to do there own laundry. 3. Projects Charitable Purpose Resident Resource's mission is to enable low income families of Oregon find and keep affordable housing.Through our resident service plan(RSP)we strive to create an environment in which families feel safe to seek additional assistance in education,employment and health services. We have an open door policy in which all are welcome.Each Resident whom resides or wants to reside at Hawthorne Villas has an appointment with a staff member who helps identify potential needs relating to our core values of affordable housing,continued educational opportunities,employment referral services.We offer mediation assistance with the ownership/management to prevent evictions that may lead to homelessness..Our many health and social services contacts and referrals are a great resource for the residents with a focus on confidential assistance. Our commitment to the Citizens of Tigard and around the state of Oregon has been to maintain an dignified approach to foster a confidential yet friendly approach to the housing needs of families who may need affordable housing.Many Residents face other significant challenges that can be softened with the right approach.This is done while maintaining the integrity of the property both materially and physically.Creating a safe environment for all Residents is our highest Priority. Hawthorne Villas Ownership has made a significant commitment to fund Resident Services to a level where each resident can have a personal touch that will encourage them to use our services if needed.The tax abatement will go a long way to helping these fine Citizens of Tigard. C. Certification Of Resident Income Levels Hawthorne Villas is a rent restricted apartment complex that will only rent to individuals or families whom make at 60%or below of Washington County Area Medium Income.This compliance is achieved with our advertising,application process,verification process.A second oversight to insure our compliance we have partnered with expert Alexia Consulting whom is approved by the State of Oregon.They are experts in compliance and monitoring in this area,over seeing each and new Resident as well as a yearly audit of each Resident File and our record keeping.The property will rent restricted for at least the next 12 years.See Attachment#4 I:, e Resident Resources D. How Tax Exemption will Benefit Residents With this tax exemption we are able to maintain the low income and affordability component to this property.The Tax exemption also allows us to fund Resident Resources thus reducing Homelessness in the City of Tigard as well as providing valuable services for some families who most need it Through our efforts and management style we have consistently reduced police contacts with Residents which reduces costs to the City.The tax exemption allows us to staff a position which takes some of the burden off of the City of Tigard's resources.The exemption is used to create a safer,healthier more stable environment for Low Income Families. E. Tax Exempt Status Resident Resources is a Domestic Non Profit Public Benefit Corporation Registered in the State of Oregon.Registration#118973395 Certificate of Existence attached as attachment#3 Our Non Profit is formed in the State of Oregon and follows federal guidelines for 501(c)(3). Our EIN number is #81-1513248 Our Corporation is organized exclusively for charitable,religious educational or scientific purposes Including for such purposes the making of distributions to organizations that qualify as exempt by the Internal Revenue Service,or the corresponding section of any future federal tax code.Resident Resources is a general partner with Hawthorne Villa,an Oregon General partnership and co manages the property. F. Verification of Information All the information provided above including attachments below are accurate and complete. Hawthorne Villa an Oregon General partnership is co-managed by Hawthorne Villa GP LLC and Resident Resources. I do so attest to its truthfulness and certify it. Bulla*n -- it.W William Maxwell President esident Resources State Of Oregon Date Oh 2o, Z(1A- OFTICtALBtiW!P County 1'i'}wfy.�.& SAMANTHAANNNIC9.8AVEY ' NOTOAYPtllBJGpIIIEppgl COMUMMON NO 935635 This record was acknowledged before me on(date)iar ,2011 by MY ComMISMON MIMESOCTOe MO (name(s))of individual(s) ( ti �-� ...Oak Nataryilablic State of Oregon �. Sign 5a �- PtIAA 'Official Seal Name 0 ilANA Resident Resources G. Attachments 1. Site Survey a. Building A b. Building B c. Building C d. Building D First floor e. Building D Second floor f. Building E g. Building F 2. Oregon Certificate of Existence 3. State of Oregon Amended Annual Report 4. Certification of Low Income Housing Restriction 5. IRS Certificate of 5013 (c) = 0 q8u „ CiIIIIII i TN I: =c7.. c� r IIII !w I 1111111 I Q 111111111 Mi Ittg IIII1 r � isre Is •Illlltllllll ' 111111111111 I " 1R.-_ -. LII: -i''I III 9 9 I if BUILDING A 15 UNITS HAWTHORNE VILLA APARTMENTS 10,567 GSF 0 o 6 T O 72 E: I„, „9„, ■III111111111 „„,,,,„„o.a,. ___:„... .., 1_ G; ii -{ . ill 1 • IfL' 1 9TOAA0EetiDINADRY 1 r ' C m p I =1 eer =. 11111. 1— ilei IWO ! ,r..7.•—.Ai gay Illllllllllf, llllilllllll I1L?I lis t I ,„.,1 m P l' . ElY BUILDING B 16 UNITS HAWTHORNE VILLA APARTMENTS 11,035 GSF Ki g a 1 ) P PN ki M -- t Ill - illIlIfin110-0 Cil go go 1R__ r3yoLJ�n , ... ,.. T 7r1 y 1y,5 � STORAGE N+c teLk R t1� i N - *16 8f, IN �9 F4, llig s IlIl1011llll 1,v CI -,,: , L !„0 1_31111111M - VIM libl /lig ig0-+. , . U ] . BUILDING C 16 UNITS HAWTHORNE VILLA APARTMENTS 11,035 GSF T . .. til2 I U At 1 111111111111 �‘ 13 1 Its 1 -1, n R IlliIl11i1I11 1 1 to • I Az i 111111111111) ;z I As i --ie -is -i+I • get} 1 BUILDING D 21 UNITS HAWTHORNE VILLA APARTMENTS 15,276 GSF O o \ 1 �7 r O aL..Z Id ;fa MINIM. - C\ _ IMO e l o .I El", _ r .11 11111111111111 DL BUILDING D HAWTHORNE VILLA APARTMENTS liunnull• nmuIllhIE 1 IMIBMI 111111111 50 A 1 1 ...Azi-- II :71 1 A IIi ,-,,,AF I ` _ � "dill ,, ,., � ,., _moo., : .r_ I II I .� �_ ' , , . .Ila , II, .. - A IIIIIIiiiiiiu IIIIIIIIIIII■ co --11151113F1-11312:17- i liw 11)3 'il ' 94% IP $ ► , W. i'1: 'T•1,�1,1 t: 41.1 !i . I , 1 T law II ;wowT i fine 1 T �yj' T vis k. W4 ,16 N : 'I3 5111R 4- h i R M LI 111111IIlill 111111111111 BUILDING E 30 UNITS HAWTHORNE VILLA APARTMENTS 12,000 GSF A r L 410 w=t6_J .. o 1111111111111 • 8 IIIIIIIIIII A lira cN 11 111111Illl111 MIN= 5111 : X11 Ira ' - `ill ci'g �i 1IIIl1111f --:411 --.-t- , :'n"=—:id sTIE p IIIDIIIIIIII I I I 11 i ill fk gbh IIIIIIll11ll 111111111111 II V 1 =- 1 - .=-411 BUILDING F 20 UNITS HAWTHORNE VILLA APARTMENTS 13,600 GSF Feb. 23. 2011 1:25PM No. 9694 P. 1/1 State of O 011,10E OF THE SECRETARY OF STATE Corporation Division Certificate of Existence 559V806W6 I,DL N1S RICHARDSON,SECRE7ARYOFMIR, and Custodian cf the Seal cf said State, do hereby certify: RESIDENT RESOURCES is a Nonprofit Corporation under the laws cf The State c fOregon and is active on the records cf the Corporation Division as cf the date cf this certificate. In Testimony Wherecf I have hereunto set — '• '� . my hand and affixed hereto the Seal cf the / rf-ip -. •`� V, ..*+ ..„....0.,,,!Q�, State cf Oregon. C •, • • ,, • /4,1,.... ,..c.d:;,.."0„.„- ... .\, •** x! . l; DENNIS RICHARDSON,SECRETARY OF S7A7E 2/26/2016 c- ;` Corporation Division 7t.: www.filinginoregon.corn OREGON SECRETARY OF STATE /id* SECRETARY ANDY K TREVINO 248 GREENRIDGE DR LAKE OSWEGO OR 97035 USA By my signature,I declare as an authorized authority,that this filing has been examined by me and is,to the best of my knowledge and belief,true,correct,and complete. Making false statements in this document is against the law and may be penalized by fines,imprisonment,or both. By typing my name in the electronic signature field, I am agreeing to conduct business electronically with the State of Oregon. I understand that transactions and/or signatures in records may not be denied legal effect solely because they are conducted,executed,or prepared In electronic form and that if a law requires a record or signature to be in writing,an electronic record or signature satisfies that requirement. ELECTRONIC SIGNATURE NAME WILLIAM S MAXWELL TITLE PRESIDENT DATE SIGNED 01-27-2017 )9 9 •' I STATE of OREGON SB .• • Colin tyof Wrihlr:olon I,Jerry rpm~,RCI•r 01 Altest• Mint ly rtytl osiivhclerk tor, ! iv •• t wjb ; 0t t. ddmut 6/011V14:: lett )roolor j•ifitoM: lion,Et- 'k Cf*nr kirk Doc f 97032411 Rect: 184112 83.00 04/09/1997 04202:29pm N • Is! I— c5 • • _ • f . • 'RECORDING ItttQUI14. Two EY • • AND WREN RECORDED,MAIL [0: I ,tic d Ora liaising and Coonstreity Unfelt Dapattneent askmlOmen 47310 Attar Unlit IKdsver MCI.1,110V8 ER 0V8 FOR RECORD 'a 1198 OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT 1 LOW-INCOME HOUSING TAX CREDIT DECLARATION OF LAND USE RESTRICTIVE COVENANTS THIS31 CLAttATION OF LAND USE RESTRICIIVE COVENANTS,(thl?"Declaration"),dated as of_ 1-•— . ret Si ,1997,by AWT'EI.OI&1E yaLA LIKTED2404.TVIRSHIP,and its successors and assigns the"Ovmer')r given as a condition precedent to the allocation of low-ncome housing credits by the J Oregon Housing and Community Services Department,a governmental agency of the State of Oregon,together with I". any successor to its rights,duties,and obligations,(the"Department"). •—,, "(incl .es 217 tax credit units and WITNESSETRt two •. —n-area mana;prs' unite) WHEREAS,the Owner is or shill be the owner of a(n)JJ 2 unitirren r inning development,oss►.ntaneeed~wu located on lands In the City of Tigard,County of YI.sshiujtm,State of Oregon,more particularly described in Exhibit -_.J A hereto,known as or to be known as HAWt'HQ .'✓ •t.A E tt t•Mt3t (the"Project");and WHEREAS, the Department has been designated by the Governor of the State of Oregon as the housing credit agency for the State of Oregon for the allocation of low-income housing tax credit dollars(the"Credit");and WHEREAS,the Owner has applied to the Department and entered Into a Determination Letter and Agreement for an allocation of Credit to the Project in an amount not to exceed pnelungractejsbmontaboisambtongdowdyihrig . dollars($18 U43)ofltvr exempt bond financed 4%low-income housing credit allocation;and WHEREAS,the Department has agreed to issue a Form 8609 to the Owner upon the execution and recording of this Declaration which constitutes part of the Determination Lotter and Agreement;and • WHEREAS,the Owner has represented to the Dcpartnxnt In Owner's Low-Income Housing Tax Credit Application iiii (the"Application")dated Much 24. 1997,that Owner shall 1665e/rent 100 percent of the units in the Project to individuals or fitmilies whose income is 60 percent or less of the area amity adjusted median gross income ("Low-Income Tenants")as determined in accordance with Section 42 of the Internal Ramo Code(the"IRC') all and I WHEREAS,the Department has determined the Project would require a Credit allocation in the amount of$181.143 of tn+i,t ctwiLbtntt Lit11rncadAU tax credit allocation to be tinenclally feasible;and WHEREAS,the Owner has represented to the Department rent restrictions it will maintain for the period of time as specified in the Determination Letter and Agreement;and DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER OR96-4-002 PAGE 1 OF 10 r Y • WHEREAS' the IRC rquisq as a condition precedent to the allocation of the Credit that the Owner execute,deliver and record tidy Declaration In the official land deed records of the county in which the Project is located In order to create certain covenants running with the land for the purpose of enforcing the requirements of IRC Section 42 and to the Department's Occupancy Restriction found In Sections hereof by regulating and restricting the use,occupancy zed Medlar lar ottheProoect as set fortb herehr,and WHEREAS,the Owner,under this D4eiaratlon,intends,declares,and covenants that the regulatory and restrictive covenants set forth herein gt verning the use,occupancy and transfer of the Project shall be and are covenants sunning ning with the Project land for the term stated herein and binding upon all subsequent owners of the Project bind for such term,and cm not merely personal covenant;of the Owner, NOW.TIMREPORE,in consideration of the promises sad covenants hereinafter act forth and of other valuable consideration,the receipt and sufficiency of which is hereby eoknowledged,the Owner and the Department agree as fellows: SECTION 1-DEFINITIONS All the words and phrases used in this Dec'.aratlon shalt have the same meaning as when used in IRC Section 42, Treasury Regulations or Noticas promulgated pursuant to IRC Section 42,Depenmer.t Administrative Rules,and the Department of Housing and Urban Development CHUM Regulations unless the context requires Otherwise. SECTION 2-RECORDING AND FILING{COVENANTS TO RUN WITH THE LAND (a) Upon execution of this Declaration:by the Owner and the Department,the Owner Khan cause this Declaration and all amendments hereto to be recorded and filed in the official public lend deed records of**county In which the Project is located,and than pay ail tees end charges incurred in connection therewith, Upoa r:.cording,the Owner 001 hnrnedlately transmit to the Department an executed original or certified copy of I the recorded Declaration showing the date,deed book and page numbers of record. The Owner understands and agrees that the Department will not issue the Internal Revenue Service Penn 11609 constituting final allocation of the Credit unless and until the Department hes received the recorded executed original of this Declaration, (b) The Ownnar intends,declares,and covenants,on behalf of itself and all fhLr re Owners and operators of the ---— Project dining the term of this Declaration,that this Declaration and the covenants and restrictions set forth In this Declaration regulating and restricting the use,occupancy and transfer of the Project(I)shall be and am covenants running with the Project land,encuntbenng the Project fir the term of this Dcolarntion,binding z upon the Owner's successors in title and all subsequent Owners and Operators of the Project(II)are not -„ merely personal cavorenta of the Owner.and(DI)shill bind the Owner(and the benefits shall inure to the Department and any past,present or prospective tamest of the Project)and its respective successors and 111 assigns during the term of:his Declaration, The Owner hereby agrees that any and all requirements of the laws of the Stotts of Oregon to be satisfied in order fur the provisions of this Declaration to constitute deed restrictions and covenants running with the land shall be deemed to be satisfied ur Rill, cad that any requirements of privileges of estate ars intuntded to be satisfied,or in the alternate,that an equitable servitude has been created to insure that these;restrictions tun with the Project. For the longer of the period this Credit is claimed or the term of this Declaration, each and every contract,deed or other Instrument hereafter reteeuted conveying the Project or portion thereof shall expressly provide that such conveyance Is subject to • DECLARATION OF LAND USE RESTRICTIVE COVENANTS LUITC PROJECT NUMBER OR96-4.002 PAGE 2 OF 10 • • rt ' -��, . a thisDeclaration,provided,however,the covenants contained herein shall survive end be effective regardleu bf whether such contract,deed,or other instrument hereafter executed conveying the Project or portion thereof provides that such conveyance le subject to this Declaration. (c) The Owr.3rcovenants to obtain the consent of any prior recorded penholder on the Project to this Declaration and such consent;,hall be a condition precedent to the Issuance of internal Revenue Service Form 8609 constituting final allocation ofthe Credit. SECTION 3-REPRESENTATIONS,COVENANTS AND WARRANTIES OF THE OWNER The Owner hereby represents,covenants,and warrants as follows; (a) Tho Owner(I)Is it limited g n ehhr duly orgrtlzed under the laws of the State of Down,and is qualified to tren:xot business under the laws of the State of Oregon, (Il)hen the power and authority to own Its proputiea and assets and to catry on hs business as now being conducted,and(III)has the aril legal right, power and authority to execute and deliver this Declaration. (b) The execution and perfbrmance of this Declaration by the Owner r.1 wilt nM violate or,as e li:eabie,has ----T not violated any provision of law, rule or regulation, or any order of any court or other agency or governmental body,(II)will not violate or,as applicable,has not viol;ted any provision corny indenture, agreement,mottguge,mortgage note,or other instrument to which the Owner is a party or by which it or the Project is bound,and(III)will not result In the creation or imposition of any prohibited encumbrance of any nature. ...� (c) 'the Ownerw;lll at the time of execution and delivery of thin Declaration,have good and msrketahle title to ..� the preen/cos constituting Ilia Project lite and clear ofany lien or encumbrance(subject to encumbrances Mit created pursuant to this Declaration, any Loan Documents relating to the Project or other permitted 111111111 encumbrances). (d) There is no action,suit,or proceeding at law or in equity,or by or before toy governmental instrumentality or other agency now pending,or,to the knoweedge ofthe Owner,threatened against or meting Ii,or any ores properties or rights,which if adversely determined,would materially impair its right to carry on business substantially as now conducted(and as now contemplated by this Declaration)or would materially adversely affect its financial condition. (e) The Project constitutes or will constitute a qualified low-income building or qualified low-income project, —--- as applicable,as defined in IRC Section 42 and applicable regulations. (f) Each unit in the Project contains complete facilities tor living,sleeping,eating,cooking and sanitation(unless the Project qualifies u a aingle-room occupancy project or transitional housing for the homeless)which are to be used on other then a transient basis. (g) During the Term of thin Declaration,all unite subject to the Credit shell be leased,rented or made available to members of the general public who qualify as Low-Income Tenants(or otherwise quality for occupancy of the low-Income units)under the applicable election specified In Section 42(g)ofthe IRC. (h) The Owner agrees that tenant and third parties will be eligible to enforce IRC Section 42 entitlements as DECLARATION OF LAND USE RESTRICTIVE COVENANTS , r LiHTC PROJECT NUMBER OR96-4-002 PAGE 3 OF 10 provided by the Pair Rousing Act,as amended. JD 0) During the tenn of thio Declaration,the Owner covenants,agrees and warrants that each low-income unit It end will temala habitable. (j) Subject to the requirements of IRC Section 42 slid this Declaration, abs Owner may sell, transfer,or a change the entire Projaa et anytime,but the Owner shall notify in writing and obtain the agreement of an, buyer or arcceesor tx other person acquiring the Project or any interest the sin that soh acquisition Is subject to the requirements of this Declaration and to the requirements of IRC Section 42 and applicable regulations. This provisionsltall lot act to mire any other monis:tion on sate,truster,or exchange of the project or any low-income portion of the Proj.'ct. Thu Owner agrees that the Department may void any sale,transfix,or exelumtge of the Project if the buyer or successor or other person Ibis to assume in writing the requirements cf this Declaration and the requ remre'e of IRC Section 42. Notwltiat:nding the foregoing,the owner shall not dispose of any portion of a building which constitutes a portion of the Project and to which this Declaration applies unless the entire building is disposed of to such person, (k) The Owner agrees to notify the Department in writing prior to any sale,tranatbr,or exchange of the entire Project or any tow-income portion of the Project. (1) The Owner will provide certified financial documentation acceptable to the Department to satisfy the calculation of a qualified contract and to begin the one year period for finding a buyer in accordance with IRC Section 42(hx6)If desired. (m) The Owner shall not demolish any part of the Project, substantially subtract from any real or personal property of the Project,or permit the use of any residential rental unit for any purpose other than rental housing during the term of this Declaration unless required by law or unless the Department has glean its prior written consent. (n) The Owner represents, warrants,and agrees that if the Project, or any part thereof, shall be damaged, destroyed,sbali be condemned,or acquired for public use,the Owner will use its but efforts,subject to the rights of any mortgagee,to repair and restore the Prefect to s'ubsta,nhlly the same condition:ie existed prior to the event causing such damage or destruction,or to relieve the condemnation,and thereafter to operate ism the Project in accordance with the terms of this Declaration. —' (o) The Ctwaer warrants that it has not and will not execute any other Declaration with provisions contradictory to,or in opposition to,the provisions hereof,and that in any event,the requirements of this Declaration are paramount and controlling as to the rights and obligations herein sat forth and supersede any other requirements In conflict herewith. 1 ami (p) The applicable fraction for each building of the Project d,u bag the term of this Agreement shall not be less than the applicable fraction specifed in the Low•Income Rousing Tax Credit Determination Letter and — Agreement(the"Agreement'')executed by the Owner as 1,UJ percent. [See ERC Section 42(h)(6)(B)) (q) The Department may require the Owner to reduce remits cha'gcd for law-income units if property taxes Imposed upon the Project am reduced because of a change In Oregon law. Any reduction in rent required by the Department ahall not exceed the redtctiun in property texas,taking into account any replacement taxes orequfwdentrhargr+s: n'-t .1 hall further tnkc into account prevoil1n,� operatinc or uobt cavera3e requirements of the Projects 1erder19) DECLARATION OF LAND USE RESTRICTIVE COVENANTS I.IRTC PROJECT NUMBER OR96.4-002 5 PAGE 4 OV 10 • • • • • • . e �. T•. " (r)' If the Section 8 Income Limits used to determine rent limits are reduced to account for a reduction in property tsxce Imposed on the Project because of a-change in Oregan law or if rents am otherwise reduced by federally mabai.ized housing assistance programs or comparable program to account for a reduction in property caeca imposed on the Project b caue of a change in Oregon law and the Department determines thus the reduced rent charged far low-income units in the Project cpproprietely toilette the reduction in property taxes,then Section 3(q)of this Declaration shall not apply. (a) The owner will not refLae to lease to a holder of a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937 because of the etatus of the prospective tenant as such a holder. (t) The owner agrees to 811 out and sign Part Hof the Form 8609 required to be completed by the building owner for the chat year of the credit period and return©(without Schedules and other supponing documents)to the Department for the purposes of compliance monitoring. (u) The Department may charge a reasonable fee comparable to fees charged by the Department 1br monitoring activities in accordance with Section 8(d)of this Declaration fbr rent reviews and determinations made pursuant to Sections 3(q)and 3(r)of this Declaration. SECTION 4-INCOME RESTRICTIONS; RENTAL RESTRICTIONS The Owner represents,warrants,and covenants that them end after initial occupancy and throughout the remaining term of this Declaration and in order to seise/the requirements of IRC Section 42("Section 42 Occupancy Restrictions")that; (Check applicable percentage deafen) (a) (I)_ At!east 20 percent or more of the residential unite in the Project will be both re.tt-reetrieted and occupied by Individuals whose Income is 50 percent or less ofthmny adjusted area median become, (2)1.At least 40 percent or more of the I'ceidential units in the Project will be both rent-restricted and occupied by individuals whose income is 60 percent or less of Amity adjusted area median income. imm (b) The Department may require that the determination of whether a tenant meets the low-Income requirement as be made by the Owner or his designated agent at least annually on the basis of the current income of such Low-Income Tenant. SECTION S-DEPARTMENT'S OCCUPANCY RESTRICTIONS The Owner represents,warrants and covenants throughout the term of this Declaration that: (a) Project rents will not exceed the gross rent allowable under IRC Section 42. (Check b through e,if applicable) (b).2L The Owner will extend the Income and rental restrictions of IRC Section 42 for j years after the close of the compliance period. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIH'[C PROJECT NUMBER OR96.4.002 PAGE 3 OP to • •' (o) Regenfieas of any provision in this Declaration to the contrary,the Depart:twee Ocenpency Rertdt ons provided by this Section sheik remain in piece for a petiod dap years or until lareOgt:.l..2021 tempt _ in the case of foreclosure or deed in lieu of forecto are of a prior recorded Hon to this Declaration ss provided in Section 6(b)(1)but subject to Section 6(o)of this Declaration. (Cheek ripple/big election) (d) (I)X The Owner will;i T the earliest dote upon which the Owner may request the Department to mitt • in procuring qualified connect for the requisition oldie tow-Income portion which is a part of the Project to alter year 14,from the year the project was pieced in service. (2) nweonerwwitefinfefelittraseiestdeteopetrtvitielrtlerOwnerintrfetteeesethefiselearment tit-+triaehrpeeearingurqtrailfied-tentreetrfar thratxprisitiotroPtirriove4reserearporsiorr e•prt-e. t ft er tery: r+i 1,?ata ,sit,tathspearttte•p%eter pt: itmeevice (e)_ Operating reserves when released from restricted use shall be wholly used to subsidize tenant rent' consistent with guidelines prescribed by!he Department. SECTION 6-TERM OF DECLARATION (a) Except as hared:Am.provided,this Declaration and the IRC Section 42 Occupancy Restrictions specified herein shad commence with the first day In the Project period on which any budding which'a pert pithy Project is placed in service and shall end on the date which is 1 S years atter the close of the compliance period. (b) The Owner shall comply with the re'uiremeots of IR,C Section 42 relating to the extended use period, provided,however,this Declaration and the extended use period for any building which Is part ofthis Project shall terminate: (I) On the date the building is acquired by foreclosure or instrument in lieu offbrecioaurre or • (2) Cc the last day attire ono-year period specified in RC Section 42(h)(6)(i),if the Owner has properly m^ ~--n requested in accordance with IRC Section 42 that tete Department assist in procuring a qualltled contract for the acquisition of the low-income portion of any building which is a pan of the Project, the Department and the Ow=have agreed upon the terms of sale as specified In Section 3(1)otitis Dec1 ratiory and the Department is unable to present a qua!itied conuact within one year of reaching written agreement regarding the terms of sale, (c) Notwithstanding subsection(b)above,IRC Section 42 rent requirements shell continue ter a period of three years following the termination of the extended use requirement pursuant to the procedures speclfed in subsection tib)above for those tenants existing as of the date of termination. During such three-year period, the Owner shell not evict or terminate the tenancy of en existing tenant of any low-income unit other than for good tartan end shall not increase the gross rent above the maximum allowed under the MC with respect to such low-income unit. (d) lithe Owner has agreed to optic,ial Department's Occupancy Restrictions as reflected in Section 5 of this • Declaration,neither this Declaration nor the extended use period shall terminate until the time period for compliance with such Department's Occupancy Restrictions has expired subject to earlier termination under Section 6(bX1)above. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIRTC PROJECT NUMBER OR96-4-002 PAGE 6 OF 30 • • -- ....-.— _ _- -_ -_ -.._. . a, a SECTION 7-ENFORCEMENT OF DEPARTMENT'S OCCUPANCY RESTRICTIONS 14 (a) The Owno ehcli permit, during normal betimes hoture and upon raaeonabla notice,any duly authorised reprtuantative ofthe Department,to meted any books and records of the Owner regarding the Project with respect to the incomes of Low-Income Tenants which pertain to compliance with the Department's Occupancy Restrictions specified In this Declaration. (b) The Owner shall submit any other Informattor,documents,or certifications requested by the Department which the Department shall dam reasonably:necessary to substantiate the Ownei's ontinuing compliance with the provisions of the Department's Occupancy Restrictions specified in this Declaration. SECTION S-ENFORCEMENT OF SECTION 42 OCCUPANCY RESTRICTIONS (a) The Owner covenants that it will not knowingly take or permit any action that would result in a violation of I the requirements of IRC Section 42 and applicable regulations of this Declaration. Moreover,Owner covenants to take'Ay lewthl action(including amendment oftbia Declaration as may be necea5sty.in the opinlom of the Deportment)to comply My with the IRC and with a'i applicable edea,miinga,policies, procedures,regulations or other official statements promulgated or proposed and published by the Unttad i States Department of the Treasury,the Intend Rcvctue Service,or HUD ion time to time pertrkdrg to Owner's obligations under IRC Section 42 and affecting the Project. (b) The Owner a clmow/edges that the primary purpose far requiring compliance by the Owner with restrictions previded in this Declaration is to assure rompiiance of the Project and the Owner with IRC Section 42 and the applicable regulations,AND BY REASON THEREOF,THE OWNER IN CONSIDERATION FOR RECEIVINGLOW-INCOME MOUSING TAX CREDITS FOR THIS PROJECT HEBEBYAGREES AND -. CONSENTS THAT THE DEPARTMENT AND ANY INDIVIDUAL WHO MEET$THE INCOME . LIMITATION APPLICABLE UNDER SECTION 42 (WHETHER PROSPECTIVE, PRESENT OR — FORMER OCCUPANT)SHALL BE ENTITLED,FOR ANY BREACH OF THE PROVISIONS HEREOF, AND IN ADDITION TO ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, TO ENFORCE SPECIFIC PERFORMANCE BY THE OWNER OF ITS OBLIGATIONS UNDER THIS DECLARATION IN A STATE COURT OF COMPETENT JURISDICTION, The Owner hereby further specifically acknowledges that the beneficiaries of the Owner's obligations hereunder cannot be adequately , compensated by monetary damages in the event of any default hereunder. (a) The Owner hereby agrees that the representations and covenants set forth herein may be relied upon by the Department end all persons interested in Project compliance under iRC Section 42 and the applicable regulations. (d) The Owner agrees to take any and all actions reasonably required by the Department to eubstruniate the Owner's compliance with occupancy restrictions of IRC Section 42 as now constituted or subsequently I amended and other occupancy restrictions of the Department as now constituted or subsequently adopted 1 end will pay a reasonable fee to the Department for the Department's monitoring of the Owners compliance based upon the Department's monitoring costs. (e) This Declaration and the Detennleallon Letter end Agreement of which it is a part may be enforced by the Department w its designee in the event the Owner COs to sadery any of the requirements herein la addition, ' DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER 0896-4-002 -- PAGE 7OF10 , this Declaration shall be deemed a contract enforceable by one or more Tenants as third-party tette(clines of the Declaration and Determination Letter and Agreement. In the event the Owner fails to latisPg the requirement&oftlis Declaration or the Determination Letter and Agreement and(eget costs are incurred by • the Departttrent or one or more of thin tenants or beneficiaries,such legal was,including attorney fence:,std mutt costs(including costs of appeal),arc ti;e responsibility of;and may be recovered$om,the Owner, i c S! VI CTIUN 9-EXTENDED LOW- COME HOUSING COMMTnfl NT VW*war APPLICABLS"* An Option Ri:, o I' ret Re�usel Agreern rt has been entered into with 2tratatin Valley Housinrd g tr2 a, t r. t.5 co-C- *rare Pot I er. ■ hereby agrees to transfer the Project to a"quatities!nonprofit oTanle-adore'[as defined In IRC 42(h)(5 ! J eccepttble to the Owner,the Department and the mortgage leader after the end of the calendar ye.. ' g r. yearn after the issuance of the Forts 8609 for the Project,or as soon thereafter as the trican be . co mmated,on the following terms; (1) condderatfon for the handle shall be in accordance with the formula in IR ttion 4201)(6)(F) in en, of equal to the sum of(a)the principal amount of outstanding i edness secured by the Project,I, the adjusted investor equity in the Project,and(c)other captt ontributtone not reflected in the amo is described above;reduced by cash distn'butions from(or .tltable for distribution from) the Project. (2) Owner shall be undo • obligation to transfer the Projer2 I. qualified organization in the event that no acceptable quail' citation accepts title and.. . . Owner's obligations before the end of the calendar year felling after the issuan • . the Forms 8609 fir the Project. (3) In making the determination or .•• transfe qualified nonprofit organization,first right of reheat , _ shall be given to . Y (4) Any controversy related to the aet. ' o 1'the transferee qualified organization shall be settled by arbitration pursuant to the rule •f the Am ,can Arbitration Association. (b) Owner thither covenants to use I :reasonable best e r o assure that,at the time of the transfer: (I) the Project is generating suJHae It flow to service Project de,. and pay Project operating expenses;and(ii) the Project is in reason• good physical condition(fora ti-family apartment pnnject of its age and y quality), mins (c) No provision • • =section shall prevent any lender loaning fluids d by the Project front fbrectosing .i on the prop or ctherwise exercising its Ml right as a lender. In the c t of a bonafde foreclosure or transfer r Project to a lender by a deed In Iku of tbrectosure,the fbrecloArt ender shell take the Project — freeay(clear-of any obligation to transfer the Project to a nonprofit organizatio to operate the Project , a sti'irrdable housing except as provided for in IRC Section 42. The Deaartment its assigns shall have n.,f, t.,.:.r,.,9y:.daf'ar+i► 0-eveld•fe*7yies000.nd• - SECTION 10-MISCELLANEOUS (a) Bevel ability The invalidity of any clause,part,or provision of this Declaration shall not affect the validity of the remaining portion thereof. f DECLARATION OF LAND USE RESTRICTIVE COVENANTS 9 LIHTC PROJECT NUMBER OR96-4.002 PAGE 3 OF 10 • • . • • (b) Notices. All notices to be given pursuant to this Declaration shaft be In writing and shill be deemed given when tilted by certified or rr,ghtered mail,return receipt requested,to the parties hereto at the addresses set fbrth below,or to?nch other place as a party may from time to time designate in writing. To the Department: Oregon Housing and Community Servioes Department ATTN: LIHTC PROGRAM 1600 State Street Salem,Oregon 97310.0161 To the Owner 1 arniXI 3E.M1,1A14=P•12 EA-13T2IERSHIP i 1'N: r.HAn AREINAKER, 1,6101 SW flND AVENUE ar1I Pallida11101.22214 7fheU partmant,and the Owns:may,bynotiwgiven hetutnder,dolpnate any fiartha or ditliumt addresses to which subsequent notices,certificates or other communications shall be sent. (o) Ameatiment. The Owner agrees that It will take ail actions necessary to effect amendment of this Declaration as may be noceeaary to comply with the IRC,any Nut all applicable rules,regulations,policies,procedure, ruling;,or other official statements pertaining to the Credit. The Department,together with Owner,may ex xxutc and reoarri any amendment or modification to this Declaration and such amendment or modification shall be binding ort third-partics granted rights under this Declaration. -— (d) Subordination ei Declargicat. This Declaration and the restrictions hereunder are subordinate to the peemenent loan end loan documents on the Project in an original principal amount not to exceed Shill except insofar as NW Section 42(hX6)(P1 otherwise requkres. The Department may utbordinato this Declaration to other Financing,in its sate discretion and such subordination;hell be binding on all third- parties granted rights under this Declaration, (e) Govntslinx.Le'.y This Declazntlon shall be governed by the laws of the State of Oregon and,where applicable,the laws of the United States of America. • (f) flundeaL0Motieel.l. The obligations of the Owner as set forth herein and in the Application shall survive the allocation of the Credit and shall not be deemed to terminate or merge with the awarding of the allocation, DECLARATION OF LAND USE RESTRICTIVE COVENANTS to LIHTC PROJECT NUMBER OR96-4-002 PAGE 9 OF 10 • • • • i — • . ' ' IN WITNESS WHEREOF, the Owner has caused this Declaration to be signed by its duly authorized iaproAntbtives,3s of the day and year first written above. L. OWNER Eavtnor7ta V.il a ted Peroaruhip • • Name: C .•Aavist_Sebgat#en Title: ri!' + y�orne Villa GP, Inc., Genera Partner of Hawthorne Associates Limited Partnership, a General Partner — STATE OF OREGON ) ) County of waehinetnn ) This instrument was acknowledged before me this., g'ik_ day of Q.pYl 1 ,1931 by G. David Sebitstiep. President ! ..;htt•4aith41-ZiiM i e,. :;, Wit. tiatuwealc-catCoa _ NOTARY PUBLIC FOR OREGON es hni 9l�4 NOT. i aX7 n '"� °0;de tnv tz.sees _. _— My Commission Expires: t .-es;�:,- r, —. i___. . 7Ttbdoawnatpnryandthis I(mhz71P97,by: Y'''''••; r FY.L+t.r✓ print MUM XaniP.K.Mor - MC Tax CnrditProgrorRrprivet , garbed 7147 —H DECLARATION OF LAND USE RESTRICTIVE COVENANTS '/ LTRTC fRO,IECT NUMBER OR96-1.002 PAGE 10 OF 10 • • t ; • + -- a DI . a =OXO14 'A° , ma=x, 1 part taa 4b4 f."osgtt L.O *t0A DO5tl.04 Lind tater WW1 hortheaet telt x of ttti eouthovet Otsatkr of QBotio4 33, tvshig 1 ;hurt, Phage 3 'N,,Aet ox' the :rillaastte Maritima, La the City of ?Lord, County of f':ebisgtoo And Stith of Qei'rpn, doaorlltsd as follorst flirt'$1 0 at aka ;torthvott corner of the GOaxgO niohaxdto4 Donation Sand CLata, aitootad L4 rsotion 2$* Tewa1hip 1 Rath. Pangs 1 rest, 7tillacstto MarLdiao, thaws South 09000' I•tint, 1507.60 tz.it to 1 pots* in tihA "Sorthar1;y' boundtay Sana of said — I Donahoe Lend Claim thimea 4oith 0°11' 'IAA* 1204.0 .*est to an Lovo pips* z94 limo pipe saskLrq CAA Not;th's-at oorast of that t ant oeovmnod 1n 02td Barak 271, ?alp 648, tb :ot 'oath 69049' 2444 08.0 foot alooq thr aorta Liao of Chit tem* n0Ertersd Ln all D,sad Book 270, gaga 14f to tths tloxtb'sst owner of said haat and true point of 111. baginpioq of the tract bsrido 4a•mrtbsd, thsoft youth 69041• Nut, 25.0 foot, thaw= %path 00W nmol para1101 with the Saab line of that, treat described it dpi to `' hsoAnsi R. % EM UN= u:, A pixt of th.Ooorpe aiohaadsoo Donation Lead Clain in the Northoist gnurtis of the soathw xt (martin of Pieties 36, township 1 South, flange 1 if•rt of tlra IdajAmett4 :nridian, in the City of tigard, County of Waabirgtron and 1tate of Ornpea, iteseritel as foilnr+a 67077401Pq at the Northwest Dorm of the tamp Itiobecdaon Donation Land Maim. .itaattd La $Lotion 36, 720Paship 1 South, ams 1 want. ''iii a¢att. Ceridian and runnimp tb:anoa SO2th 60°00' Srt1207.60 foals to a point to the eoathatjj betntoay line of said Donation Land Olata, t enoe .Tenth 0°11' Slur, 1104.0 fest to as tato;si¢t, said imat pips mxrkitfg aha ltotthsr^et O4eea4s of AMA tr,oo ostraini to Crud Doak 279, -- Page 2661 than-+ Sour, 61049. Cant, 61.0 fa*t Along the Olarat hiwz of that tract n lv y.fi Sio r4:.d scot 279, 7.g, 646 to this Portivaint cream of therc4f1 thaws Routh 69049' atilt, 30.0 f sats thence North 0011' sant persJ.lat with the 'vast line of Rlh at ta=t dastrhif+'d is dont' to LSsa3td T. CUM, et 41, ttC4rd+ed Pen-say 14. 1130, In gook 697, Copts 339, 'ar..ehinetos 0oaat7-lcwrosdi, 173.66 featp titins, iootb 66°17' Usti L1.0 fast to Us taliq point of bogie ninsw of the heroin daaeribad reuminanp thaws oontlnuinq South 08017' ;sat, 46.0 feet to 4 taint on the 9'eft lino of :aid pion* tract, Mango North 0°11. task alora arid Tact Use, 90.0 f«.et, tkon, It_tb 6047. Root, 43.0 fest, th4oc4 Booth 0°12' Watt. 90.0 feat to the truce point of bogiaeixq. • PIT= zit a part of tha oceans Richardson Donation Land Main 1a the Northeast quarter of the ',,atsthe•aet quarter of Station 36, township 1 Loath, Rana 1 Went of the WiliawttaII wmridia', in the City of Tigard, County of Waahiaptoa and St4ts of Orman. daecribad . LA follows, Eff Dnearatm at the aartbwast corner of the George hioheadaoa Doa3tioa Land Wale in I / Raotion 36, Township 1 south, tamp 1 toot, Diarootto tesi1iad in the County of Wazbington and State of Oregou, ?.ad sunildq ,Memos South 89080+ S Dt, 1867.00 fest to a point on the Northerly boundary lino of said Donation Land claim thanes south 0°11' West, 1020.34 fast to a point on the Rost lino of that tract described in deed to Leonard 8. Cason, at al. r oordad Pacuary 16, 1966, is took 677, Deme 139, records of Washington county, being the We.torly 6ortbwtst corder of that tract dasoribed in $0 t9ag%=t5.eatdsd oftob't 29. 063, in Scow 144, Pogo 520, rat.-'ad7 of Wsetlaq'sod County.hod the tram paint of beginning of the 6sroin d4dCrdbd prvaloJap thaws south 86452,7' Teat 161.6 fonts therms North 0011' Brat. 90.0 feat, thuece south 86x17• Nast. 43.0 feat to a point on the font line of said ,Damn tract; thence North 0°11' Sart ilong nail Sart Line. 171.34 Lost to a point, theme North 06°17' Vest, 63.0 fest to a point, Chinos South 0011' west, 76.0 foot to a point, thine lts:rtb :0°17' Nest, 141.6 feet to a point oft th3 Wnnt lion of said Cason trot, tbsao■ South 0°11' wait along said west line, 166.34 fest to the true point of bogianiag. • • • yy • • x.►_1cst, V. • A parts of the George liahardsan Donation Land Clair ln'.tht Northeast oy xtar of the iouttowrt quarter of &action 31, township 1 South, tf e 1 ;tett of the 7illPatt"A Roridiaa► La thz City of ¬a, County of 'L9bington and state of orogen, dusoribat ae MUMS iiirVi2Wi it the Uosthwuot =roar of the George Richardson Donation Land Clair► in east-'oa le, covaubiy 1 Seth, 2:xnan 1 ;Dant of tho t'iLlatr..tta NUM= and rifanin9 tho on ash WOO, Wast, 19,81.40 toot to a point on tan Ne wetly beton asy lEa of slid Deaatica Znod elmim$ tb gcs d.lnbh 0011' ?:tit, 044.0 BtAt to a point on `he "owoAt line of that treat dsaarisad is doad to Leonard w. Cam=et al. rsoordad .7agaary LS. 1909► is look 677, Rage ISO. records of •n6.ohiagton 4oanty, holm fan Uaat0rl1 forth"orc aornor of thh Brat tract d<tcribr-d in t1urt4lro ratoan'tf rAbstnouy 4. 1545. in SOadc t32. iNge SA. rsoozvla.of Washington Oaaaty aA4 taw two poLat of bogia:lag of too haraf*udeortlo4 property, t hosoe Acnth 81017• soma, 141.0 tomato a paint/ t uws Xnezt 4011' Wit, 755.0 fogs to poinoi thqoao daotb S8^17' nuts 68.4 Balt to a point es tha tsm6 Dias of :aa1i c:aa'on treat► thsnna Worth 04211' Pat Along Old Lot iia', 111.44 rout to A point, shone north 010i7' 3tont, 105 frob to a pals* mitt* Win lige et odd Cason truu*► thmnaa South 0011' Vast-'.1on4 ;sot lino, 190 feat to tho trap point of bsginaiap. RUM VZ a 1,,pari of tha Ooongs Dictum: o*Donative Rand Claim in ttkn Yattb6,*At quui'tCC of th Southaoat 9,i xt.ir of 000tion 36, Township 1 eoath,, Kang. 2 Rost of tha *ai13xs*bte nori+lisn, to tho City of Tigard, county of 11a:*hiognen dnd Stat:' of Orogen, donorihol to tollnwne 8•662802 o at the Moftby,st corner of thn Comm Rieb*rdson Donation Land Claim in _ g netioo 36, Townabip 1 South, bongo 1 Mese of tha Willreatta MaridLan, is the musty of staahington and Stott., of Dragon nod owning thecae tiotth 69°00' Dart. 3507.64 loot to a paint on tho north:rly tosndnsy Liam of said potation Land Chita} thanes Booth Oo12' 14x4r 154.0 =eat to a point on deo Mswt Una of that tract 4aaeribad in naiad to C� Leonard R. Caron wt *3. ponord.d Maori 16. 1055, in Donk 677, lags 1.351, records of fitrbington county, being tho $ortheoet carom of toy first tr of dararibid in >artime *monied in B00% 745, Page 165, records of'n0shiagton County and the true r point of h.=ginnisq of tho herein dosrrih4.p,.tgertyl thence South $S°&T' 2famt, =05 --- t o t 00 a: point au► tt+ *ni lain' of L131.d canon *nest► thasas Rooth O°ii' Lit Sisal avid aunt lir!, 1.04.0 fent to :a point; thoneo GOrth G8017' WO, Sas toot 50 a mixt on the Meet line at tsid Canon toot; tis Booth 0011• rust along said West line. woo 155.0 Meet go the trot point of beginning. • 1t( • • a a • w.�..r•�'s-�.-1�:� � S Ar is _ _ • MOM an �► Part of ;h8. Cieotga Aithastboa t oncnio*Land Otala4 40:141,2 itorthaest gust-tar of tta atmtbsae.nt IplTht ai 1t:a7hL90 59, «ooroahip ./Moth, taidt 1 Walt of /shit ?tolls?/strut Yesidianr La the Caro! ligand, County of eanhington and Mesta os cr.Qoa, dsstxibe4 as lollowat art xit_**l at tut northwest ooronr or the Giorgi Richardson Monica Lind Olaio 8eatioa 35t t.snao tooth 8000' Rost, 1887.00 Cant to a point on tha ;lostk 4.t boundary of said aoaatLoa Land Claim thaws loath 0011', 990 taAa to a point, 7Yid ' point being the :+osz!:t:Na ai; (w.r.►r of a twat oou yud to Ososs Oidlor kad oraxa rtatlra mimmemo pr :iee3 taeoxeAd Itreheb#s 93, tit:;,Vit. I tlw9 t•clak Ott, 7+442 09, Mud tae tsar Detnk of b20tssia•J1 th2noo ;41001 0110 'neat, 178 toot to a FILM!on oho 1:'awt 114" of that twat do.ariood in a 04-ad to Laoo s"d r. Oar,000t al,•saoordu4%Usu y in, ly8d ls'ioctt 077, !A¢4 130. 'Moxda of?,174tia4ton County, bola. th3 lrortbw+,rtt moose o!Ona first turn d.eoribad is Rortg4v rlevadad nay 12. 1171, la moon 818, Ono 117, r000s,i, of fasbisphoa County/ thnaaa 000th 8017• sakt, 106 f®at to s.'pion on tha :ant liar of said Canon trantt thtanao liorth 0411' :Aft /lots, etd.ld nOt Li o, 3.90 trot to then Coast► 1Ln't of•tx44 sl.tilcr ttg'att thenci /torah;:SIO Vast/loam Brits Would* !Lae of said .41or Mo •tr t, 108.0 teat to that trua point of bsg g. • • • • • I5 • TTaj C Department of the Treasury 1.Itky Internal Revenue Service P.O. Box 2508 In reply refer to: 0248359979 Cincinnati OH 45201 Feb . 08, 2017 LTR 4168C 0 81-1513248 000000 0011 00019437 BODC: NOBOD RESIDENT RESOURCES SUITE 300 WILLIAM MAXWELL 4800 SW MEADOWS RD STE 300 LAKE OSWEGO OR 97035 39800 Employer ID Number: 81-1513248 Form 990 required : Yes Dear Taxpayer : This is in response to your request dated Jan. 30, 2017, regarding your tax-exempt status . We issued you a determination letter in March 2016, recognizing you as tax-exempt under Internal Revenue Code (IRC) Section 50I(c) (3) . Our records also indicate you're not a private foundation as defined under IRC Section 509(a) because you're described in IRC Sections 509(a) (1) and 170(b) (1) (A) (vi) . Donors can deduct contributions they make to you as provided in IRC Section 170. You ' re also qualified to receive tax deductible bequests , legacies, devises, transfers, or gifts under IRC Sections 2055, 2106, and 2522. In the heading of this letter, we indicated whether you must file an annual information return. If a return is required, you must file Form 990, 990-EZ, 990-N, or 990-PF by the 15th day of the fifth month after the end of your annual accounting period. IRC Section 6033(i) provides that, if you don 't file a required annual information return or notice for three consecutive years, your exempt status will be automatically revoked on the filing due date of the third required return or notice. For tax forms, instructions , and publications, visit www. irs.gov or call 1-800-TAX-FORM (1-800-829-3676) . If you have questions, call 1-877-829-5500 between 8 a.m. and 5 p.m. , local time , Monday through Friday (Alaska and Hawaii follow Pacific Time) . AIS-Fiscal Impact of Tax Exemption Property Estimated City of Tigard City of Tigard Total Tax Rate Total Market Tax Rate Property Tax Property Value* (Including Bond Impact Tax Impact Levy) (Estimated) Village at $2,526,320 $2.898/$1,000 $7,321 $16.7962/$1,000 $42,432 Washington Square Single Family $319,940 $2.898/$1,000 $927 $16.7962/$1,000 $5,373 Home—9330 SW Tangela Ct. Greenburg $7,618,930 $2.898/$1,000 $22,080 $16.7962/$1,000 $127,969 Oaks The Knoll @ $4,619,270 S2.898/$1,000 $13,387 $16.7962/$1,000 $77,586 Tigard Hawthorne $8,124,850 $2.898/$1,000 $23,546 $16.7962/$1,000 $136,466 Villa Total Impact $67,261 $389,826 * Because these properties have been exempted from property taxation in the past,Washington County does not show a current assessed value. These figures are an updated market value. Tigard tax rate determined by City of Tigard and City of Tigard-After(bonds) Total tax rate located in Washington Co Listing by Tax Code 023.66 AIS-3012 6. Business Meeting Meeting Date: 03/28/2017 Length (in minutes): 10 Minutes Agenda Title: Consider Naming Tigard Street Trail Plaza "Rotary Plaza" Prepared For: Steve Martin Submitted By: Steve Martin, Public Works Item Type: Resolution Meeting Type: Council Business Meeting- Main Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the city council name the small public space at the end of the Tigard Street Trail, "Rotary Plaza"? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends the council designate the small public space as "Rotary Plaza." KEY FACTS AND INFORMATION SUMMARY In December,the city received a request to name the public space adjacent to the Tigard Street Trail,and near Symposium Coffee,"Rotary Plaza." The letter from Mr. Marland Henderson,representing two Rotary Clubs in Tigard (Breakfast Rotary and Noon Rotary),is attached. As outlined in the city's Naming and Recognition Policy,the Council has the authority to designate names for parks and city facilities. This request follows the guidelines in that policy. At a workshop on January 24,2017, the council directed staff to bring forward a resolution for consideration. Additionally,members of council and representatives from Rotary discussed: •Rotary members would like to be involved in the planning and development of this small public space; and •Members promised to dedicate at least$25,000 toward the development of the plaza. The city received grant funding for the trail portion of the Tigard Street Trail project.These funds can be used only on the trail itself,not the small public space. OTHER ALTERNATIVES Council could choose to not designate the area as "Rotary Plaza." The council could also choose to not name the area at all,or could select a different name. COUNCIL OR CCDA GOALS, POLICIES,MASTER PLANS This request follows the city's Naming and Recognition Policy. DATES OF PREVIOUS CONSIDERATION Council was briefed on this request on January 24,2017. ' Fiscal Impact Cost: n/a Budgeted (yes or no): no Where Budgeted (department/program): Parks Additional Fiscal Notes: There is a cost for a sign with a park name. However, a sign will be installed for any park name. It is probable that the Rotary will help with installation of a sign with the name they have requested. Attachments Naming Resolution Naming Request Naming Policy CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 17- A RESOLUTION TO NAME THE AREA AT THE END OF THE TIGARD STREET PEDESTRIAN TRAIL ROTARY PLAZA WHEREAS, planning and development of the Tigard Street Trail and Public Space Capital Improvement Project is underway;and WHEREAS,it is desirable to have continuity in the naming of city facilities and parks as described in the city's Naming and Recognition Policy;and WHEREAS,two Tigard Rotary Clubs are jointly requesting the name of the plaza area be Rotary Plaza;and WHEREAS, both Rotary Clubs have a long history of benefitting the City of Tigard,would like to help plan and develop the area,and have promised funding to assist in plaza development. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The gathering area, adjacent to Main Street, at the south end of the Tigard Street Trail be named Rotary Plaza. SECTION : This resolution is effective immediately upon passage. PASSED: This day of 2017. Mayor-City of Tigard ATI EST: City Recorder-City of Tigard RESOLUTION NO. 12- Page 1 December 7, 2016 Parks Manager, Steve Martin City of Tigard, Public Works Regards: Request to name a park in downtown Tigard Steve, As a representative of the local two Rotary Clubs in Tigard, Noon and Breakfast,we are requesting the naming of a new park/plaza for the downtown of Tigard, better known as the South Entry of the Tigard Heritage Trail. This week we have created a consensus between the Noon and Breakfast Rotary to work together in partnering with the City of Tigard to create a gathering place that identifies and gives Rotary a presence in the downtown of Tigard. The committee of the Noon Rotary has been established for several weeks to secure this endeavor and has been attended by many of its long time leaders. The Breakfast Rotary was represented by their President, Jim deSulley, which is now part of this committee to name and manage the Rotary Plaza Project. With the agreement of both Clubs and from a selection of many names the name was chosen as ROTARY PLAZA. This name was chosen mainly for its simplicity and it identified everyone's goal of creating a gathering place that has been a long time goal of both clubs Upon serious consideration we have agreed to move forward with this naming of the area of the Heritage Trail from North side of Main Street to under the North side of the overpass of Pacific Highway, from the East property line of the Chamber of Commerce Building to the West of the Railroad Easement. Please advise next steps including a submittal document if possible. We have been in contact with Liz Newton and following her guidance. As a member of the Noon Rotary and the Chair of the Community Development please feel free to respond to me as necessary. Marland Hen erson , 1795 SW Ka 'erine Street, Tigard, Oregon Cell 503-329-0159 e-mail mhcon@aol.com City of Tigard Naming & Recognition Policy TIG A R I7 Effective September 3, 2013 A. Purpose The purpose of this policy is to provide consistent standards and procedures to: • Name city key features, buildings and property. • Install items on city property to recognize an individual,group or event. B. Naming Criteria for City Key Features, (such as open-air shelters, sports fields, gardens,rooms,trails, etc.), Buildings and Existing Property, Including Parks 1. All requests to name city key features, buildings and existing property must be reviewed by the parks manager and approved by formal action of the City Council. 2. To assist the public in identifying and locating key features,buildings and property, proposed names should be descriptive in nature or should contain a descriptive element, such as the Fanno Creek House, Dirksen Nature Park, Woodruff Bridge or John Anderson Baseball Fields. 3. Proposed names shall recognize one or more of the following: - A physical,historical, or unique characteristic of the key feature, building or existing property. - An event that had a significant impact to the city. - An individual or individuals, living or dead (memorial),who made a significant contribution to the city, either historically, financially or through civic duty. - A group or groups that made a significant contribution to the city, either historically, financially or through civic duty. - A property owner(s)who donates or sells property to the city. C. City-Initiated Requests to Name City Key Features, (such as open-air shelters, sports fields, gardens, rooms, trails, etc.), Buildings and Existing Property, Including Parks 1. The process to consider a city-initiated request is as follows: a. A city councilor or designee, city board or committee, or city staff member, "City Requestee," interested in naming a key feature, building or property must submit a written request—including specific information as to the purpose,proposed location (if applicable) and significance of the name—to the parks manager. b. The parks manager will prepare a recommendation,including a cost estimate to implement the name. c. The request and recommendation will be placed on a council agenda for informal discussion by the City Council. d. At the discussion the council will either: - Direct the parks manager to prepare a resolution to formally adopt the name. If applicable, staff will assist the council in identifying and selecting a city funding source to implement the name. - Determine that a majority of the city councilors do not support the name, and the request will not move forward. e. With council support, a resolution naming the feature,building or property will come before council for formal action. f. If the resolution is adopted, the parks manager will implement the name. D. Non-City-Initiated Requests to Name City Key Features, (such as open-air shelters, sports fields, gardens, rooms,trails, etc.), Buildings and Existing Property, Including Parks 1. The process to consider a non-city-initiated request is as follows: a. An individual or organization, "Requestee,"interested in naming a key feature, building or property must submit a written request—including specific information as to the purpose,proposed location (if applicable) and significance of the name—to the parks manager at the following address: Parks Manager City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 b. When applicable, and if the name is intended to recognize an individual(s), group(s) or event, the parks manager will attempt to verify that the recognition is acceptable to the individual(s), group(s) or event, or the appropriate representative of the individual(s),group(s) or event. c. The parks manager will review the request and prepare a recommendation and cost estimate to implement the name. d. The request and recommendation will be placed on a council agenda for informal discussion by the City Council. e. At the discussion the council will either: - Direct the parks manager to prepare a resolution to formally adopt the name. Under this option, the council will also need to determine whether the Requestee or the city will be financially responsible for the costs to implement the name,including a plaque or signage (if desired). If the city assumes the costs, staff will assist the council in identifying and selecting a city funding source to implement the name. - Determine that a majority of the city councilors do not support the name, and the request will not move forward. f. With council support, a resolution naming the feature, building or property will come before council for formal action. g. If the resolution is adopted, the parks manager will work with the Requestee to implement the name. E. Changing the Name of City Key Features, (such as open-air shelters, sports fields, gardens, rooms, trails, etc.), Buildings and Existing Property, Including Parks 1. Irrespective of how the existing name was initiated or funded (city/non-city), the City Council has the authority to change the name of any city key feature, building or property. 2. The process to change the name of a previously named key feature, building or property is as follows: a. A city councilor or designee, city board or committee, or city staff member, "City Requestee," interested in changing the name of a key feature, building or property must submit a written request—including specific information as to why the name should be changed and the purpose and significance of the new name—to the parks manager. b. The parks manager will prepare a recommendation,including a cost estimate to implement the name change. c. The request and recommendation will be placed on a council agenda for informal discussion by the City Council. d. At the discussion, the council will either: - Direct the parks manager to prepare a resolution to formally change the name; if applicable, staff will assist the council in identifying and selecting a city funding source to implement the name change. - Determine that a majority of the city councilors do not support the name change, and the name will not be changed. e. With council support, a resolution changing the name will come before council for formal action. f. If the resolution is adopted, the parks manager will implement the name change. F. Naming Requests for Properties under Acquisition, Including Parks 1. For tracking and record keeping purposes, the City Council recognizes it is preferable to name a property early in the acquisition process, typically as a part of the real property transaction discussed in executive session. 2. The city's Property Acquisition Workbook acknowledges that naming rights are frequently desired by those selling property to the city. After consulting council, staff may use naming rights as a non-monetary negotiation tool when attempting to purchase property. 3. During acquisition, the process to name a property is as follows: a. The parks manager will prepare a list of potential names for council consideration. The names will be generated by city staff involved in the acquisition and—when feasible as part of an executive session discussion on real property transactions— by: - The Park and Recreation Advisory Board (for park and open space properties). - The City Center Development Agency (for Downtown or urban renewal properties). - Other appropriate city agencies, boards or committees that play a role in the acquisition of city property. b. In correspondence or as part of the City Council's executive session discussion on real property transactions to purchase the property, the parks manager will provide the council with a list of potential names developed under this section. City councilors may also propose names for the property. c. During the City Council's executive session discussion on real property transactions to purchase the property, the City Council will direct staff to incorporate a property name into the purchase agreement (or comparable document). d. The council will take formal action on the name when it takes action on the purchase agreement (or comparable document) at a council business meeting. e. If the purchase agreement (or comparable document) is approved by council, the parks manager will implement the name. G. City-Initiated Requests to Install Recognition Items, (such as benches, picnic tables, trees and shrubs) 1. The process to consider a city-initiated request is as follows: a. A city councilor or designee, city board or committee, or city staff member, "City Requestee," interested in having the city install an item must submit a written request—including specific information as to the purpose,proposed location, significance and type of item requested—to the parks manager. b. The parks manager will prepare a recommendation,including a cost estimate to purchase and install the item. c. The request and recommendation will be placed on a council agenda for informal discussion by the City Council. d. At the discussion, the City Council will either: - Direct the parks manager to install the item on behalf of the city. (No formal council action required.) If applicable, staff will assist the council in identifying and selecting a city funding source. - Determine that a majority of the councilors do not support the request, and the item will not be installed. e. If so directed, the parks manager will install the item. H. Non-City-Initiated Requests to Install Recognition Items (such as benches, picnic tables, trees and shrubs) 1. All items installed on city property must be approved in advance by the parks manager. The parks manager has sole discretion regarding the approval of the installation of all items submitted under this section. 2. The process to consider a non-city-initiated request is as follows: a. An individual or organization, "Requestee," interested in installing an item must submit a written request—including specific information as to the purpose, proposed location, significance and type of item requested—to the parks manager at the following address: Parks Manager City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 b. When applicable, and if the item is intended to recognize an individual(s), group(s) or event, the parks manager will attempt to verify that the recognition is acceptable to the individual(s),group(s) or event, or the appropriate representative of the individual(s),group(s) or event. c. The parks manager will review and approve or decline the request. d. If the request is approved, the parks manager will: -Notify the Requestee. - Collect payment from the Requestee to purchase and install the item. Requestees are financially responsible for all costs associated the item,including a recognition plaque (if desired). Specific information on plaques is outlined below. -Will work with the Requestee to install the item. e. If the request is declined, the parks manager will attempt work with the Requestee to amend the request so it is acceptable to both parties. If no agreement can be reached, the item will not be installed. 3. The parks manager will allow the following types of items: a. Benches must be contoured style or another approved style, designed for outdoor use and constructed of materials approved by the parks manager. Once approved, benches must be purchased through a Parks Division-approved manufacturer. A brass or bronze plaque, no larger than 2 '/2 x 6 inches, may be affixed to the bench. b. Picnic Tables must be an approved style, designed for outdoor use and constructed of materials approved by the parks manager. Once approved, tables must be purchased through a Parks Division-approved manufacturer.A brass or bronze plaque,no larger than 2 1/2 x 6 inches,may be affixed to the table. c. Trees and Shrubs must be a size and species approved by the parks manager. Plaques for trees and shrubs: - Must be made of bronze. - Cart be no larger than 8 1/2 x 11 inches. - Cannot be free standing, but must be affixed to a concrete, aggregate rock or boulder foundation. The parks manager will review the design of the proposed plaque and foundation and can provide examples of acceptable plaques. 4. The installation of comparable items, (other than those specifically mentioned listed in this section), may be proposed by the Requestee and will be considered by parks manager. 5. The parks manager may alter the proposed location of the item to ensure ease of maintenance and to prevent conflicts with other park features. AIS-3046 7. Business Meeting Meeting Date: 03/28/2017 Length (in minutes):5 Minutes Agenda Title: Appeal of Quasi Judicial Hearings Officer Decision for Madrona Recovery Center Prepared For: Gary Pagenstecher,Community Development Submitted By: Gary Pagenstecher,Community Development Item Type: Resolution Meeting Type: Council Business Meeting -Main Public Hearing: Yes Publication Date: Information ISSUE Shall City Council approve,deny, or approve with conditions the appeal of the Hearings Officer decision to approve conditionally the Madrona Recovery Center's request for a medical center use in the Commercial Professional zone? STAFF RECOMMENDATION / ACTION REQUEST Open the hearing on March 28 and continue the matter to the meeting of April 4. At the time of Council consideration,staff and the City Attorney will suggest that the order of consideration should be whether the center is a medical center use permitted in the C-P zone,and then address the issues raised on appeal. Staff recommends Council make a determination that the proposed development is a medical center use permitted in the C-P zone,address the substantive traffic issue raised on appeal,and deny the appeal. KEY FACTS AND INFORMATION SUMMARY On October 13,2016,Madrona Recovery Center applied for a conditional use permit to change the use of existing office buildings from "office" to "medical center," both permitted uses in the Professional Commercial (C-P) zone. The appellant,Mr. Bowersox,questioned the staff determination that the proposed use falls within the "medical center" use category at the hearing. On February 13,2017,the Hearings Officer issued a Final Order(attached).The medical center use and other possible related uses were discussed in-depth on pages 11-16 of the Hearings Officer's report,including reference to the relevant sections of the Development Code. The Hearings Officer concluded that the proposed inpatient mental health,drug and alcohol treatment facility does not fall within any of the use categories listed in TDC 18.130. The Hearings Officer approved the conditional use request,but conditioned his approval so that the applicant had to obtain a Director's Interpretation that the proposed use is permitted in the C-P zone. Mr. Bowersox appealed the Hearings Officer Final Order(attached)with three assignments of error: 1. Hearings Officer was required to deny the application when concluding the use did not qualify as a conditional use. 2. Hearings Officer cannot defer the use issue to a Director's Interpretation. 3. Hearings Officer erred in concluding that Madrona demonstrated compliance with requirements for adequate public facilities. OTHER ALTERNATIVES •Uphold the appeal and deny the Madrona application. •Deny the appeal and approve the Madrona application with conditions. •Remand the decision to the Hearings Officer. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS NA DATES OF PREVIOUS COUNCIL CONSIDERATION None Attachments Memo from Staff re Revised Finding Memo from City Attorney Letter from Appellant's Attorney Resolution HO Final Order CUP2016-04 Madrona Use Narrative Staff Use Memo Notice of Appeal AgendaQuick©2005-2017 Destiny Software Inc.,All Rights Reserved JORDAN RAM ISP C ATTORNEYS AT LAW Two Centerpointe Dr 6th Fl Phone: (503) 598-7070 Lake Oswego OR 97035 Toll Free: (888) 598-7070 www.jordanramis.com Fax: (503) 598-7373 LEGAL MEMORANDUM TO: Tigard City Council FROM: Shelby Rihala, City Attorney DATE: March 17, 2017 RE: Madrona Appeal to Council This memo provides a summary to Council of the decision points at issue in the Madrona appeal and the order in which the City Attorney suggests making those decisions. Below is a suggested outline for the process: 1. Is the proposed use a "medical center" pursuant to TDC 18.130.050.G? The Code defines the characteristics of medical centers as, "facilities providing inpatient, outpatient, and emergency and related ancillary services to the sick and infirm, and are usually developed in a campus setting or on multiple blocks." TDC 18.130.050.G.1. The full text of this subsection and the hearings officer's analysis are found beginning on page 9 of the Hearings Officer Final Order. In applying the characteristics of a use to a specific proposal, the Code instructs that "uses are assigned to the category whose description most closely describes the nature of the primary use." TDC 18.130.015.A.1. Council has discretion in determining the use "most closely" describing the proposed development, within the parameters of the Code's definition of a medical center. Council should consider whether the proposed development is most closely described as "providing inpatient, outpatient, and emergency and related services...." JORDAN RAMI S PC ATTORIIV♦ AT LAW March 17, 2017 Page 2 Because the hearings officer conditionally approved the application using the criteria applicable to medical centers, should Council conclude that the proposed use is a medical center, Council's decision will satisfy the condition to obtain a use determination and Council may then proceed to hear the remainder of the appeal on the merits, as described in #2 below. Should Council not agree that the proposed development is most closely described as a medical center, the City Attorney recommends requesting a Director's Interpretation, as described in #3 below. 2. If the proposed use is a medical center, were traffic impacts adequately addressed in the proposal? The appellant asserts that the applicant was required to perform a traffic impact analysis. Council must review this claim on the merits. City staff found that because the site was fully developed, there did not appear to be a need to require a full transportation impact analysis and the thresholds to require one were not likely met under TDC 18.810.030.CC, which establishes parameters for when a traffic study is required. The applicant did provide an Impact Statement showing that trip generation would be reduced under the proposed use. The applicant also provided a Traffic Impact Statement showing the ITE Manual trip generation would be half of what was permitted under the existing office use. Additionally, the appellant points to TDC 18.810.020.A. City staff responds that this general provision addresses application of standards in 18.810. Because the site does not have frontage on a public street (Varns St. terminates into a private drive), there would be no affected public facilities. Council must weigh the evidence and make a decision to either affirm or deny the appeal based on the applicable standards and criteria. 3. If the proposed use is not a medical center, Council may wish to stay the current appeal pending a Director's Interpretation as an omitted use, pursuant to TDC 18.130.030. Because the hearings officer conditionally approved the proposed development pursuant to criteria applicable to a medical center, if Council determines that the use is not a medical center, the City Attorney recommends obtaining a Director's Interpretation (DI), as provided for in TDC JORDAN RC1 M I S PC ATTORNUYI AT LAW March 17, 2017 Page 3 18.130.030. This section is intended for circumstances in which "unintentional omissions occur and unanticipated uses may not be clearly assignable to a use category." TDC 18.130.030.A. The Code includes approval standards and provides that the Director "shall render an interpretation, as governed by Chapter 18.340." Under Chapter 18.340, the Director has 14 days to issue a decision. That decision is appealable to the City Council within 14 days after the interpretation is mailed to the applicant and Council would hear the appeal as a Type III, quasi-judicial appeal action. If it becomes necessary to obtain a DI, the City Attorney has conferred with the applicant's counsel and the recommendation is to stay the Council appeal of the hearings officer's decision to allow the DI to become final. Either the DI is appealed to Council, in which case the two proceedings may be joined and considered on appeal together, or the DI is not appealed and therefore binding on Council in the appeal of the hearings officer's decision. IB0wERs0x LAW I JRM RECEIVED FEB 2 7 2017 Jeffrey A.Bowersox Jeffrey(n,bowersoxlaw"com CITY OF 71GARD PLANNING/ENGINEERING February 27, 2017 Via Hand Delivery Director City of Tigard Planning Division 13125 SW Hall Boulevard Tigard, OR 97223 Re: Notice of Appeal CUP 2016-00004 and VAR 2016-00004 Madrona Recovery Center Greetings: On behalf of property owner Autonome ASR, LLC, I enclose: 1. Notice of Appeal, with its four page"Exhibit 1" to be filed in this matter; and 2. The required filing fee in the amount of$3,372.00. Sinca - , OWERS• '1• ,P.C. !�/. o ersox JAB:ms Enclosures Phone:(503)452-5858 6960 SW Varns Street,Suite 200 Website:www.BowersoxLaw.com Fax:(503)345.6893 Portland,OR 97223 RECEIVED City of Tigard FEB 2 fi 2017 71111COMMUNITY DEVELOPMENT DEPARTMENT CITY OF TIGARD II ■ PLANNING/ENGINEERING TIGA,2l, Land Use Decision Appeal Filing Form The City of Tigard supports a citizen's right to participate in local REQUIRED SUBMITTAL government.The Tigard Community Development Code,therefore, ELEMENTS sets out specific requirements for filing appeals on certain land use decisions. EX Filing Fee g.Narrative (address criteria 8,.32() 2u,1t.) Property address/location(s): 6996 - 7000 SW Varns 11,I; -.1111 1 ,I t>\I 1 Street, Tigard, OR 97223 Case No.(s): Deadline of appeal: February 2 7 . 201 7 neighbor Case Name(s): Interest in proposal (applicant, neighbor, etc.): g g C . property owner at 6960 SW Varns Street, Re>Atea "eNv(S)`C.UPZpItP—CcA Appeal fee: 3 31 Z Tigard. OR 97223 Date decision final: Autonome ASR, LLC Notice of final decision: Appellant's name: by: Jeffrey Bowersox, Member Business: Commercial-Professional Office Leasing 0 TypellDirector's Deci_sionto Address: 6960 SW Varns Street Ha/PC Tia rd, 0 Expedited Review(Deposit): City/state: g OR Zip: 9 7 2 2 3l to/PC to Citi Cvunc7: Ph#: 503-452-5858Email: -Jeffrey@bowersoxlaw.com Application accepted: Specific reasons for appeal or review: By: 'i---- Date:2/2-1 II-7 Appellant ' s specific reasons for appeal iAa,arLxw.a<.,ladUse Acv 10/02/2014 or review are contain in the attached Exhibit 1, which by this reference is incorporated herein. 4Autonome, ASR, LLC d By: Jeffrey A. Bowersox, Member 02-27-2017 r%/I Ap.- .ant s s':rture Print name and title Date City of Tigard • 13125 SW Hall Blvd. • Tigard,Oregon 97223 • www.tigard-orgov • 503-718-2421 • Page 1 of 1 EXHIBIT 1 -NOTICE OF APPEAL Autonome ASR, LLC ("Autonome") appeals the City land use hearings officer's Final Order, dated February 13, 2017, approving Madrona Recovery Center's ("Marone") conditional use permit and variance applications, CUP2016-00004 &VAR2016-0004, for a 23-bed inpatient mental health and substance abuse disorder treatment facility(the"Application") on the following grounds set forth below. This notice of appeal provides the notice of appeal contents required by Tigard Development Code("TDC") 18.390.040.G.2.a.ii. A. An identification of the decision being appealed,including the date of the decision. As noted above, the decision being appealed is a decision by the City land use hearings officer, dated February 13,2017, approving the Application. Madrona's conditional use permit and variance applications, CUP2016-00004 &VAR2016-0004. B. A statement demonstrating the party filing the notice of appeal has standing to appeal. Autonome has standing to file the notice of appeal because it owns the property adjacent to Madrona's proposed development and appeared orally and in writing before the hearings officer. C. A detailed statement of the specific issues raised on appeal. 1. The hearings officer was required to deny the Application since he specifically concluded that the proposed use does not qualify as a conditional use in the zoning district. The most fundamental and important issue when reviewing a conditional use permit application is determining if the proposed use qualifies as a conditional use in the applicable zoning district. It was the central issue before the hearings officer in this case. The subject property is zoned Professional Commercial (C-P). Madrona requested conditional use permit approval based on its assertion that the proposed use qualifies as a "medical center," which is allowed as a conditional use in the C-P zone. TDC Table 18.520.1. Although other potential use categories were discussed during the hearing process, Madrona was adamant that the only use category it qualified for is a medical center. The hearings officer rejected this characterization of the proposed use and concluded that it does not qualify as a medical center, or any other type of use allowed in the C-P zone. He explained that it cannot qualify as a"medical center"because it is exclusively an inpatient facility and lacks the"outpatient and emergency ... services to the sick and inform," which are a necessary components under the definition. TDC 18.130.050.G(1). The hearings officer evaluated a number of other potential uses and concluded that the proposed use does not qualify as any of the permitted,restricted or conditional uses allowed in the C-P zone. Once the hearings officer concluded that the proposed use does not qualify as a medical center or any other use allowed in the C-P zone, he had no choice but to deny the Application. Madrona requested approval as a medical center and did not even ask the hearings officer to consider other 1 use categories, so determining that it does not qualify as a medical center alone is grounds for denial. Since the hearings officer evaluated other uses and concluded that the proposed use does not qualify as any of the uses allowed in the C-P zone,there is simply no legal basis for approving it as a conditional use. If the proposed use does not qualify as any of the conditional uses allowed in the C-P zone,it cannot be approved as a conditional use and the Application must be denied. 2. The hearings officer cannot defer the use issue to a subsequent director's interpretation determination. Notwithstanding the hearings officer's determination that the proposed use does not qualify as a medical center or any other conditional use allowed in the C-P zone, the hearings officer approved the Application subject to Madrona obtaining a subsequent planning director interpretation that the proposed use is a permitted use in the C-P zone. There are multiple reasons why the hearings officer did not have the authority to defer the use issue to a separate director's interpretation process. The hearings officer has exclusive jurisdiction to determine in the first instance if the proposed use complies with the conditional use permit criteria. TDC Table 18.390.1. It was his responsibility, and his alone,to determine whether or not the proposed use qualifies as a conditional use. The hearings officer did not have the authority to transfer that responsibility to the director, especially when he already concluded that the proposed use does not qualify as an allowed conditional use in the C-P zone. Once had made that determination,the only decision he had the authority to make was to deny the Application. The hearings officer cannot defer the use issue because different uses have different approval standards under the conditional use criteria in TDC 18.330.050. It is not possible to determine compliance with the size, dimensional, setback, offstreet parking and related approval standards until the City determines the appropriate use classification. The hearings officer erroneously reviewed the Application for compliance with the standards applicable to medical centers even though he concluded the proposed use cannot qualify as a medical center. The hearings officer cannot defer the use issue to a subsequent director's interpretation process because that process does not provide the same procedural rights. In order to defer an issue of compliance to a subsequent process, that later process must provide for the same public notice and opportunity to participate as the underlying process. Moreland v. City of Depoe Bay, 48 Or LUBA 136, 153 (2004); Sisters Forest Planning Committee v. Deschutes County, 45 Or LUBA 145, 154-55 (2003); Rhyne v. Multnomah County, 23 Or LUBA 442, 447(1992). The director's interpretation process clearly does not provide the same opportunity to participate as the Type III conditional use process. The director's interpretation is a considered a"Special kind of decision"that is a Type I process unless the applicant appeals: "Type I if not appealed, Type II if appealed by applicant." TDC Table 18.30.1. Unless Madrona appeals, Autonome will have no local appeal rights because a Type 1 decision"is not appealable locally, and is the final decision of the city."TDC l 8.390.030.D.. Neither the Type I procedures nor the director's interpretation procedures even provide an opportunity for non-applicant parties to comment. The director's interpretation process is clearly not equivalent because it does not provide an opportunity to comment, a public hearing or any appeal rights. 2 Even if Madrona could rely on a director's interpretation to address the use issue, it was required to do so before or concurrently with the conditional use permit application. TDC 18.340.010 defines the director's interpretation as a process for"resolving these ambiguities in advance of or concurrent with applying for a particular permit or other action." (Emphasis added). That way the use issue will have already been addressed by the director and can be properly factored into the conditional use permit criteria. It is not a process intended to address the use issue after the underlying land use permits have already been approved. 3. The hearings officer erred in concluding that Madrona demonstrated compliance with TDC 18.330.030.A.3 given the lack of any traffic impact analysis. Madrona was required to provide a traffic impact study and demonstrate that the surrounding transportation system has adequate capacity to serve the proposed use. TDC 18.330.030.A.3 requires all conditional uses to demonstrate that"all required public facilities have adequate capacity to serve the proposal. In order to address this requirement,TDC 18.390.050.B.2.e requires all Type III applicants to provide an impact study that quantifies the effect of the development on public facilities and services, and must address"at a minimum, the transportation system, including bikeways,the drainage system,the parks system, the water system, the sewer system, and the noise impacts of the development." (Emphasis added). Additionally, TDC 18.810.020.A provides: "No development may occur and no land use application may be approved unless the public facilities related to development comply with the public facility requirements established in this section and adequate public facilities are available." The transportation system is one of the public facilities that Madrona must demonstrate has adequate capacity to serve the proposed use. Madrona cannot demonstrate compliance with these approval criteria because they never provided the City a traffic impact study. Without some evidence identifying the current capacity of the surrounding transportation system and analyzing the additional traffic impact this facility will create, there is no evidentiary basis for concluding that the proposed development satisfies TDC 18.330.030.A.3. The hearings officer erred in addressing this approval criterion. The hearings officer erroneously concluded that traffic impacts are not relevant because the road providing direct access to the property is private. Regardless of whether or not the access road is private, TDC 18.330.030.A.3, 18.390.050.B.2.e and TDC 18.810.020 all require the applicant to demonstrate that the surrounding public transportation system has capacity to accommodate the proposed use. The private access road connects to the public transportation system, so Madrona is still required to provide a traffic impact study to address the impacts on the public transportation system. D. A statement demonstrating that the specific issues raised on appeal were raised during the comment period. As noted in the hearings officer's decision, Autonome raised the specific issues on appeal during the hearings officer's process. Autonome argued that the proposed use was not an allowed use in the C-P zone and therefore the hearings officer was required to deny the application. Autonome 3 also argued that Madrona failed to demonstrate that the surrounding transportation system has adequate capacity to serve the proposed use. E. Filing Fee. The notice of appeal includes a filing fee for the appeal in the amount of$3,372, the appeal filing fee provided by the City. 4 madrona recovery Kenny Asher Director of Community Development City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 February 22, 2017 RE:CUP2016-00004 Dear Mr.Asher: Thank you for taking the time to weigh all the evidence and offer your interpretation of the code as it applies to our proposed use of 6996-7000 SW Varns Street--also known as Washington County Tax Assessor's Map 2S 101DA,Tax Lot 01900.After your careful consideration of our case,our hope is that the proposed use will be permitted in the Commercial—Professional zone. We are excited by the prospect of being a part of Tigard's economic development by providing local jobs, responsibly paying taxes, and compassionately and professionally meeting a dire regional need for mental health and addiction treatment for adolescents. We are providing this documentation to support our assertion that Madrona Recovery is best-suited to conduct business as a "medical center" in the C-P zone. 1. Residential treatment is commonly recognized as a medical service. Madrona Recovery is most similar to a "Medical Center" according to the zoning regulations.The term "residential," in our case, refers to a level of care, not to a zoning category. It is common knowledge that health care is provided along a continuum (American Hospital Association, 2014). Patients receive care along this continuum based on the severity of illness and the intensity of services that are required for effective treatment. A"residential" level of care is widely recognized as logically being on this continuum, between "inpatient" and "outpatient". Residential is a recognized level of care that is a slightly less intense level of service than what is provided in an acute inpatient hospital setting, and a much higher level of service than what is offered in an outpatient setting.Specifics of the care that Madrona Recovery plans to provide are contained in the program description, previously submitted to City of Tigard staff(see Appendix). As defined by city code (18.130.030 Omitted and Unanticipated Uses, G. Medical Centers), Madrona Recovery provides"services to the sick and infirm" by treating only patients with a physician-diagnosed, medical condition and providing care in a "campus setting." 1 2. Health insurance companies fund the mental health and addiction treatment we provide. The business model for Madrona Recovery relies primarily on payments made by health insurance companies to fund the services provided at our facility. Health insurance pays for the costs of treatment after co-pays, deductibles, and out-of-pocket aspects of insurance benefit plans have been met. Health insurance companies provide coverage only for health-related services that they define or determine to be medically necessary. All patients must meet"medical necessity" requirements at all times to be admitted and to continue treatment at Madrona Recovery. Medical necessity refers to a decision by a health plan that a treatment,test,or procedure is necessary for an individual's health or to treat a diagnosed medical problem. Medicare,for example, defines medically necessary as: "Health care services or supplies needed to diagnose or treat an illness, injury,condition,disease, or its symptoms and that meet accepted standards of medicine." (Medicare Glossary, www.medicare.gov/glossary/m.html). Furthermore, Madrona Recovery employs a team of physicians, nurses,and an array of assessment and treatment specialists who meet the standards of health insurance companies in Oregon to be eligible for reimbursement for our services. All patients are admitted and treated by physicians who are licensed to practice medicine in Oregon. 3. No other category better describes the work of Madrona Recovery. The other categories considered were Detention Facilities and Transitional Housing. Neither of these categories is a good fit for Madrona Recovery. Transitional Housing is described as "as public or non-profit living facilities possessing the same characteristic as group or household living." Madrona Recovery is not a public or non-profit facility. Our business is a medically-managed, residential setting for patients with physician-diagnosed health conditions.Our funding will come from health insurance companies,who do not pay for transitional housing. Madrona Recovery is investing more than a million dollars to upgrade the facilities to meet rigorous medical safety standards required by the Oregon Health Authority and the Joint Commission. These upgrades would be unnecessary if the facilities were to be used merely for transitional housing or group living. Detention Facilities require"judicially required detention, incarceration, or supervision." Our clients will not be judicially required to be in our care. Our clients will be receiving mental health and addiction treatment,funded exclusively by health insurance. In fact, insurance companies (including Medicaid) expressly do not pay for healthcare services for those who are incarcerated or in detention (Healthcare Funding for Incarcerated Youth, 2017). 4. City of Tigard officials have consistently referred to Madrona Recovery as a "medical center." We would like to thank Gary Pagenstecher,John Floyd, and other Tigard officials who have worked closely with us along the way as we have poured time and financial resources into this important endeavor. From our initial inquiries in early 2016,the pre-application process,the application process, 2 through today,they have repeatedly supported our proposed use and indicated that we should be categorized as a "medical center." As noted in the Staff Report: Madrona Recovery Center will be a licensed adolescent mental health and substance use disorder treatment facility.This facility is designed to provide short term inpatient treatment that will prevent patients from entering higher levels of care.The program goal is to provide short-term, high-quality,trauma-informed care that will stabilize youth, educate their families, and assist them to bridge their care from an inpatient to an outpatient setting. Adolescents 13- 17 years of age with mental health and substance use disorders will receive care for 14-21 days in a secure and stabilized environment. The existing buildings will be remodeled to answer the programming needs of the facility. Accommodations within the building will include lobby,offices, kitchen, dining, patient rooms, restrooms,fitness,activity,and ancillary spaces. A fenced outdoor area will be established to allow supervised outdoor activities for the patients.The facility will be secure and be able to provide treatment for up to 23 persons. Madrona Recovery clearly fits best in the"buffer zone" between industrial and residential areas.The proposed use is consistent with the intent and purpose of the C-P zoning district,as highlighted below in excerpts from the Staff Report. • The use is similar to and of the same general type as the use categories listed in the zoning district. "Medical centers are allowed conditionally in the C-P zoning district.The existing buildings meet all of the standards found in the Community Development Code for professional offices and medical centers with the exception of the rear yard setback. All additional standards found in the Conditional Use chapter solely for medical centers are met. --- No additional concessions are being sought and all other standards are met or exceeded. This criterion is met(page 9) • The use has similar intensity, density, and off-site impacts as the use categories listed in the zoning district,to be evaluated using the criteria set forth in 18.130.015.A.2. "This is an existing development,there will be no additions or changes to the existing structures or other improvements that will cause any adverse effects to the property, surrounding area, or community." (page 9) • The use has similar impacts on the community facilities as the listed use categories. Community facilities include streets,schools, libraries, hospitals, parks, police and fire stations, and water, sanitary sewer and storm drainage systems. o N. All of the provisions and regulations of the underlying zone shall apply unless modified by other sections or this title, e.g., Planned Developments, Chapter 18.350; or a variance or adjustment granted under Chapter 18.370. FINDING: As shown in the analysis above, all of the applicable site development review standards are met. (page 8) 3 o All Access, Egress and Circulation provisions (18.705)are met. (page 11) o All Landscaping and Screening standards (18.745)are met. (page 12) o All Off-Street Parking and Loading requirements(18.765)are met. (page 13) o All Urban Forestry Plan requirements (18.790)are met. (page 13) o All Street and Utility Improvement standards (18.810) are met.The applicant proposes to use the existing access from SW Varns Street to the private drive that currently serves the property. No changes are proposed.The existing buildings are currently served by water, sewer,gas, and electricity. No new utilities are required. (page 14) o The City of Tigard Police Department reviewed the proposal and has no objections to it. (page 14) o Clean Water Services has reviewed this proposal and issued a Sensitive Area Pre-Screening Site Assessment(#16-003631)dated September 29, 2016 stating that the proposed development is not likely to impact the existing or potentially sensitive areas found near the site. (page 14) We also want to thank Joe Turner for the conscientious, diligent analysis he has provided as Hearings Officer. Mr.Turner ultimately was unable to say conclusively that our program met the "medical center" category due to the language in the code which says it must provide "inpatient, outpatient,and emergency services." We will not provide emergency services at our facility. Based on this, Mr. Turner has sought a director's interpretation as a condition of our Conditional Use Permit approval. However, since the proposed use is most consistent with the use category of medical center,which is a permitted use,the proposed use should be approved. For these reasons and more,we hope that you endorse city staff's recommendation to approve Madrona Recovery to do business in the C-P zone. Thank you for your thoughtful deliberation on this matter. If you have any questions or need of further clarification, do not hesitate to contact us. Sincerely, John Thornton CEO (503) 734-7363 madrona recovery 4 REFERENCE American Hospital Association (2014, February). Integrating behavioral health across the continuum of care. Chicago, IL: Health Research &Educational Trust. APPENDIX Program Description submitted to Tigard staff: Level of care: Medically managed, residential treatment, integrating mental health and addiction medicine Program goal: Provide brief residential treatment that will prevent patients from entering higher levels of care for mental health or substance use disorders. Rapidly stabilize patients and return them to their home environment with continued support until they are fully engaged in outpatient treatment. Length of Stay: 14-21 days of residential based on acuity and needs. Continuing care would include video conference therapy and support for up to three weeks after discharge to create a bridge to outpatient treatment. Target population:Adolescents, 13-17 years old,with mental health and substance use disorders that are unlikely to be successful in outpatient treatment immediately due to instability in their living environment and need for a 24/7 care environment to stabilize. We intend to begin by opening a 24-bed facility in the Portland-metro area. Treatment Philosophy:Trauma Informed Care,Sanctuary Model,that fosters a therapeutic milieu for community-based treatment.There is high emphasis on building a therapeutic alliance between patients and the staff treatment team to increase engagement and retention in the program. Interventions are focused on stabilizing mental health and substance use disorders through evidence-based practices such as dialectical behavioral therapy and structured relapse prevention to build skills for emotional regulation and interpersonal effectiveness. Staffing: The clinical team of therapists, milieu counselors(mental health technicians), nursing team and psychiatrist are experts in mental health and addiction treatment with a specialty in working with adolescents and families.A generous ratio of therapists to clients to facilitate daily interaction while in care. Discharge Planning:Starts immediately upon admission with the patient's primary therapist assisting in involving family members and community supports as well as resources for continuing care. Continuing care: Post discharge video and/or phone support to prevent entry/re-entry to emergency department(ED)or other higher levels of care. Program will assist patient in engaging in outpatient and community resources to prevent relapse and destabilization. 5 ' City of Tigard TIGARD Memorandum To: Joe Turner, City of Tigard Hearings Officer From: Gary Pagenstecher,Associate Planner Re: Request from the Hearings Officer for a Use Category Interpretation for the Madrona Recovery Center Conditional Use (CUP2016-00004/VAR2016-00004) Date: January 31,2017 Description of the proposed use, as described by the applicant: "The proposed Madrona Recovery Center will be a licensed adolescent mental health and substance use disorder treatment facility. This facility is designed to provide short term inpatient treatment that will prevent patients from entering higher levels of care. The program goal is to provide short-term, high-quality, trauma-informed care that will stabilize youth, educate their families, and assist them to bridge their care from an inpatient to an outpatient setting. Adolescents 13-17 years of age with mental health and substance use disorders will receive care for 14-21 days in a secure and stabilized environment. The facility will be staffed by therapists, milieu counselors (mental health techs), a nursing team and a psychiatrist who specializes in working with adolescents and their families. With an overall staff of 32-35 people providing 24/7 care, the average number of staff per shift is about 10." City's comment on whether the use category Medical Center or Transitional Housing is more consistent with the proposed use: The following is the process described in the code for determining which use category is assigned to a particular land use. 18.130.015.A Considerations 1. The "Characteristics" subsection of each use category describes the characteristics of each use category. Uses are assigned to the category whose description most closely describes the nature of the primary use. . . . 2. The following items are considered to determine what use category the use is in, . . . a. The description of the activity(ies) in relationship to the characteristics of each use category; Section 18.130.015.D discusses the use of examples and states that "the names of uses on the lists are generic. They are based on the common meaning of the terms and not on what a specific use may call itself." Thus, when seeking to determine the appropriate use category, the "Characteristics" section takes precedence and controls over the generic and non-binding "Examples" section. This method of interpretation is consistent with the City's practice. For this specific case, the following is a description of staff's evaluation of the proposed use compared with each use category identified in the Hearings Officer's Continuance Order: 18.130.050.G Medical Centers 1. Characteristics: Medical Centers are facilities providing inpatient, outpatient, and emergency and related ancillary services to the sick and infirm, and are usually developed in a campus setting or on multiple blocks. The City believes that the proposed recovery center is characterized as Medical Center because it provides inpatient and related ancillary services to the sick (mentally and/or substance abuse) and because the two-building facility provides a campus-like setting. The proposed activity, "to provide short term inpatient treatment that will prevent patients from entering higher levels of care" best matches the characteristics of the Medical Center Use Category, "facilities providing inpatient, outpatient, and emergency and related ancillary services to the sick and infirm." 18.130.040.0 Transitional Housing 1. Characteristics: Transitional housing is characterized as public or non-profit living facilities possessing the same characteristics as Household or Group Living, but with tenancy less than 45 days. The City believes that this category is not applicable because the proposed use is 1) for profit and 2) not as clear a fit with the characteristics description. Medical Centers specifically describes inpatient treatment,whereas Transitional Housing does not. 18.130.080.0 Detention Facilities 1. Characteristics: Detention facilities are uses devoted to the judicially required detention, incarceration, or supervision of people. The City believes that this category is not applicable because the proposed use is not judicially required and is therefore not consistent with the characteristics for Detention Facilities, and does not warrant any further reading of the category. CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 17- A RESOLUTION AND FINAL ORDER DENYING THE APPEAL OF THE HEARINGS OFFICER'S FINAL ORDER NO. CUP2016-00004/VAR2016-00004 APPROVING MADRONA MEDICAL CENTER AND ADOPTING FINDINGS AS AMENDED TO INCLUDE SUPPLEMENTAL FINDINGS WHEREAS,The Hearings Officer initially reviewed this case at a public hearing January 9,2017 and kept the record open for additional testimony by the applicant and the City on the question of the "medical center" use classification;and WHEREAS,The Hearings Officer issued a Final Order No. CUP2016-00004/VAR2016-00004 approving the application with a condition requiring the applicant to obtain a Director's Interpretation approving the proposed use as permitted in the C-P zone;and WHEREAS, Staff mailed notice of Final Order CUP2016-00004/VAR2016-0004 to interested parties on February 13,2017. WHEREAS, the Appellant,Autonome ASR,LLC,by Jeffrey Bowersox,having standing to appeal,timely filed a Notice of Appeal on February 27,2017;and WHEREAS, City Council held a public hearing on the appeal on March 28, 2017,which was continued at the request of the Appellant to April 4,2017;and WHEREAS, City Council concluded at the April 4, 2017 hearing that the proposed "medical center" use is permitted in the C-P zone,addressed the substantive traffic issue on appeal,and denied the appeal. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The Tigard City Council denies the Autonome appeal of Madrona Recovery Center, CUP2016-00004/VAR2016-00004. SECTION 2: The City Council adopts the Hearings Officer's Final Order, except insofar as the Hearings Officer concluded the proposed facility was not a medical center. Council finds the proposed facility is most closely described in Code as a medical center and is a permitted use in the C-P zone. Council further adopts the supplemental findings attached hereto as Exhibit A and incorporated herein by this reference. SECTION 3: This resolution is effective immediately upon passage. PASSED: This day of 2017. Mayor-City of Tigard A'1'1'EST: City Recorder-City of Tigard RESOLUTION NO. 17- Page 1 EXHIBIT A ' BEFORE THE LAND USE HEARINGS OFFICER FOR THE CITY OF TIGARD, OREGON Regarding an application by Madrona Recovery for a ) F I N A L O R D E R conditional use permit and variance to convert an ) CUP2016-00004 & existing law office to a medical center at 6996- ) VAR2016-0004 7000 SW Varns Street in the City of Tigard, Oregon ) (Madrona Recovery Center) A. SUMMARY 1. Madrona Recovery(the"applicant") requests approval of a conditional use permit to change the use of an existing law office to what the applicant describes as a "medical center;"a secure 23-bed inpatient mental health and substance abuse disorder treatment facility serving adolescents13-17 years of age. Patients at the facility will receive treatment for 14-21 days, 24 hours a day, 7 days a week. The use is proposed in two existing buildings located on a 1.04-acre site at 6996-7000 SW Varns Street; also known as Washington County Tax Assessor's Map 2S 101 DA, Tax Lot 01900(the "site"): The site and surrounding properties are zoned C-P (Professional Commercial). 2. The applicant also requests approval of a variance to the 25-foot rear yard setback required for medical centers; the existing south building on the site is setback approximately 14 feet from the rear boundary of the site. 3. Additional basic facts about the site and surrounding land and applicable approval standards are provided in the Staff Report to the Hearings Officer dated January 2, 2017 (the "Staff Report"), incorporated herein by reference. 4. Tigard Hearings Officer Joe Turner(the "hearings officer") conducted a duly noticed public hearing to receive testimony and evidence in this matter. At the public hearing, City staff recommended approval of the application, subject to conditions of approval in the Staff Report. Representatives of the applicant testified in support of the application. One person testified with questions and concerns about the application. Disputed issues in this case include: a. Whether the City provided adequate notice of the proposed development; b. Whether the applicant is required to resolve the ownership of Tax Lot 2100 prior to approval of this application; c. Whether traffic impacts on the private road serving the site are relevant to the applicable approval criteria; The application originally included Tax Lots 01900 and 02100.However the applicant modified the application to remove Tax Lot 02100 prior to the hearing. d. Whether the proposed facility will have an adverse impact on the nearby daycare facility; e. Whether the proposed secure inpatient mental health and substance abuse disorder treatment facility is permitted in the C-P zone; and f. Whether a variance to the rear yard setback is required. 5. Based on the findings and discussion provided or incorporated in this final order,the hearings officer concludes that the proposed inpatient mental health, drug and alcohol treatment facility does not fall within any of the use categories listed in TDC 18.130. Therefore this application can only be approved if the applicant obtains a final planning director interpretation that the proposed use is permitted in the C-P zone, pursuant to the approval criteria in TDC 18.130.030. B. HEARING AND RECORD 1. The hearings officer received testimony at the public hearing about this application on January 9, 2017. All exhibits and records of testimony are filed with the Tigard Department of Community Development. At the beginning of the hearing,the hearings officer made the declaration required by ORS 197.763. The hearings officer disclaimed any ex parte contacts,bias or conflicts of interest. The following is a summary by the hearings officer of selected testimony offered at the public hearing in this matter. 2. City planner Gary Pagenstecher summarized the Staff Report and the proposed development. a. He noted that the applicant proposes to change the use of the site from a law office to a medical center, specifically an adolescent mental health and addiction residential treatment facility. The applicant proposed to remodel the inside of the building to accommodate the proposed residential treatment facility. Exterior changes are limited to the replacement or elimination of certain doors and windows and the installation of eight-foot high privacy fencing around portions of the site. b. There are potential issues regarding the ownership of Tax Lot 2100 and whether the application included required signatures from the correct owner(s)of this parcel. Therefore the applicant modified the application to remove Tax Lot 2100 from the application. The applicant submitted a revised site plan with development limited to Tax Lot 1900. See the January 9, 2017 email to Mr. Pagenstecher from Gretchen Stone. c. The City received a comment letter from Tualatin Valley Fire and Rescue("TVFR")requesting the applicant, among other things, install clearly visible address numbers on the site for emergency responders. He requested the hearings officer add a condition of approval to that effect. CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 2 d. He testified that Mr. Bowersox is not an owner of Tax Lot 2100. 3. Architect Gretchen Stone and John Thornton, president of Madrona Recovery, testified for the applicant. a. Ms. Stone summarized the proposed change in use. The proposed use will meet all applicable standards for a medical center, with the exception of the rear yard setback requirement for the south building. The applicant requested a variance to the 25- foot rear yard setback required for medical center uses to accommodate the existing south building on the site, which is setback between 13 feet 8 inches and 14 feet 9 inches from the rear(west)property line. The buildings on the site were originally developed as office buildings, which do not require a rear yard setback. The applicant will install an eight- foot high privacy fence along the west and south boundaries of the site to provide additional screening and privacy between the site and abutting commercial properties. The applicant was unable to find any suitable alternative sites for the proposed facility. The buildings on the site have been vacant for the past three years. b. Mr. Thornton summarized the proposed treatment clinic use. The facility is not a methadone treatment facility. The facility will provide short-term mental health treatment for adolescent patients ages 13 to 17. It will not generate significant traffic. Patients will reside at the secure facility for seven to twenty-one days while receiving treatment. Patients will be provided ongoing post-discharge therapy by videoconference. Patients will not travel back and forth to the site on a daily basis. The facility and its patients will not pose a safety risk to the public. The facility will not accept sex offenders or patients with a history of violence or running away. The facility will be locked at all times and surrounded by fencing. He agreed to conditions of approval to that effect. i. Representatives of the applicant met with representatives of the Touchstone Preschool prior to purchasing the site and explained the proposed use. The Preschool did not raise any objections to the proposed use. He submitted an email summary of the proposed use that he sent to the Preschool. 4. Jeff Bowersox testified on behalf of Autonome ASR, LLC. ("Autonome"). a. He testified that Autonome owns nearby property but did not receive notice of the application or of the September 26, 2016 neighborhood meeting. Autonome may have an ownership interest in Tax Lot 2100. The applicant should be required to resolve the ownership of Tax Lot 2100 prior to final approval of this application. b. The buildings on the site have always been used for law and accounting offices. The proposed use will increase impacts on surrounding uses. There is a daycare facility serving 300 children located three buildings away. CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 3 c. He argued that the proposed use is not a medical center but is actually an involuntary detention center(a jail). d. He requested that, if the facility is approved, the hearings officer include conditions of approval limiting the use of the facility consistent with the applicant's summary, prohibiting sex offenders or patients with a history of violence or running away. e. The proposed use will substantially increase the volume of traffic, which will increase wear and tear and the need for maintenance on the existing private road serving the site. The applicant failed to propose any mitigation for this impact. f. He requested the hearings officer hold the record open or continue the hearing to allow additional time to respond to the application. 5. Pursuant to Mr. Bowersox's request,the hearings officer held the record open for eight days, until 5:00 p.m. January 17, 2017, to allow the public to submit additional testimony and evidence regarding the application. The hearings officer held the record open for a second week, until January 24, 2017, for the applicant to submit a final argument,without any new evidence. No new evidence was received from the public during the first open record period. Therefore the applicant waived its right to submit a final argument and requested the hearings officer close the record. Pursuant to the applicant's request, the record in this case initially closed at 5:00 p.m. January 18, 2017. 6. On January 23, 2017 the hearings officer issued an"Order Re-Opening the Record"extending the open record period to allow the parties an opportunity to submit additional testimony and evidence regarding whether the proposed use falls within one of the"Use Categories"listed in TDC 18.130. The hearings officer re-opened the record subject to the following revised schedule: a. Until 5 P.M. on January 31, 2017, for all parties to introduce new evidence and testimony regarding the apparent Code conflict noted in the Continuance Order. b. Until 5 P.M. on February 7, 2017 for all parties to respond in writing to the new evidence submitted during the first open record period; and c. Until 5 P.M. on February 14, 2017, for the applicant to submit a final argument, without any new evidence. 7. The following evidence was submitted in response to the Order Re-Opening the Record: a. A letter dated January 26, 2017 from Mr. Thornton; CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 4 b. A letter dated January 30, 2017 from Ms. Stone; c. A letter dated January 30, 2017 from the applicant's attorney, Joshua S. DeCristo; d. A letter dated January 31, 2017 from Mr. Bowersox; e. A memorandum dated January 31, 2017 from Mr. Pagenstecher; f. A letter dated February 7, 2017 from Ms. Stone; g. A letter dated February 7, 2017 from Mr. Bowersox; h. A memorandum dated February 7, 2017 from Mr. Pagenstecher; and i. An email dated February 8, 2017 from Ms. Stone waiving the applicant's final argument and requesting the hearings officer close the record. 8. Pursuant to the applicant's request the record in this case closed at 5:00 p.m. on February 8, 2017. C. DISCUSSION 1. City staff recommended that the hearings officer approve the application,based on the affirmative findings and subject to conditions of approval in the Staff Report. The applicant accepted those findings and conditions without exceptions. The hearings officer adopts the findings and conclusions in the Staff Report as his own except to the extent they are inconsistent with the findings and discussion in this final order. 2. The hearings officer finds that the public had an adequate opportunity to review and respond to the proposed development, consistent with the limitations of the Code. TDC 18.390.050.0 requires the City to mail notice of public hearings to owners of property within 500 feet of the site and other specified persons at least twenty calendar days prior to the hearing, and publish notice in the newspaper and post notice on the site at least ten calendar days before a hearing. The City did these things in this case. The City mailed notice of the hearing to the to the persons listed in TDC 18.390.050.C(1)(a)on December 13, 2016. (See the January 18, 2017 Affidavit of Mailing). Autonome ASR, LLC was included in the notice mailing list. (See Exhibit B of the January 18, 2017 Affidavit of Mailing). The City posted a sign on the site and published notice in the Tigard Times newspaper on December 13, 2016. (See the January 18,2017 Affidavit of Posting Notice and the December 15, 2016 Affidavit of Publication). This is sufficient to comply with the Code. The Code does not require that mailed notice be received by the owners; such a requirement would be impossible to enforce. Multiple forms of notice are required, in part, to provide a measure of overlap, so that if notice in one form is not effective (e.g., when a mailed notice is not received), another form of notice will be CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 5 effective(e.g., published or posted on the site). In addition, Autonome received actual notice of the hearing, as Mr. Bowersox appeared at the hearing on behalf of Autonome. a. It is the City's policy to require applicants schedule and attend a neighborhood meeting to summarize a proposed development prior to submitting an application. However this is not a requirement of the Code. The applicant mailed notice of a neighborhood meeting to the owners of properties within 500 feet of the site on August 12, 2016. The applicant held the neighborhood meeting on September 15, 2016. The applicant mailed notice of the meeting to Autonome ASR, LLC. See the"Evidence of Neighborhood Meeting"tab in the application packet submitted on November 22, 2016. As noted above, failure to receive properly mailed notice is irrelevant. 3. The applicant modified the proposed development to exclude Tax Lot 2100 from this application. (See the site plan attached to the January 9, 2017 email from Ms. Stone to Mr. Pagenstecher). Therefore there is no need to resolve the ownership of this property prior to approval of this application,because that property is no longer part of the proposed development. 4. Mr. Bowersox argued that traffic generated by the proposed facility will increase wear and tear and the need for maintenance on the existing private road serving the site. Assuming that assertion is correct,' it is not relevant to the applicable approval criteria for this development. Use and maintenance of private roads is regulated by private easement agreements. The hearings officer and the City have no authority to interpret or enforce such private agreements. If there is no recorded agreement for maintenance of the easement,than the parties to the easement are required to share the costs of maintenance based on their proportionate use. ORS 105.175(3). 5. There is no evidence that the proposed treatment facility will have any adverse impact on the nearby daycare facility. Patients will be confined to the secure facility and will not be allowed to leave the site during their treatment. The facility will not treat patients with a history of violence or sex offenses. The applicant met with the operators of the daycare facility and they did not express any concerns with the proposed use. 6. There is a dispute about whether the proposed use is allowed in the C-P zone. The applicant and the City argue that the proposed use is a"medical center"use described in TDC 18.130.050.G. Mr. Bowersox argued that proposed use is a"detention facility" described in TDC 18.130.080.C. The hearings officer finds that the proposed use does not fall into any of the Use Categories listed in TDC 18.130,based on the plain language of the Code. 7. TDC 18.130.040.A provides: 2 There is no evidence in the record regarding the volume of traffic generated by the prior law office use or the proposed treatment facility use. CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 6 Group Living. 1. Characteristics: Group Living is a living facility for groups of unrelated individuals which includes at least one person residing on the site who is responsible for supervising, managing, monitoring, and/or providing care, training, or treatment of residents. Large group living facilities may also be characterized by shared facilities for eating, hygiene, and/or recreation. 2. Accessory uses: Accessory uses commonly found are recreational facilities and parking. 3. Examples: Examples include dormitories; communes; fraternities and sororities; monasteries and convents; nursing and convalescent homes; some group homes for the physically and mentally disabled; and some residential programs for drug and alcohol treatment. 4. Exceptions: a. Does not include lodging meeting the definition of Transitional Housing, Detention Facilities, and/or Commercial Lodging. b. Does not include lodging where the residents meet the definition of Household, and where tenancy is arranged on a month-to-month basis, or for a longer period, which is classified as Household Living. a. The facility will house a group of unrelated individuals and provide staff who are responsible for supervising,managing,monitoring, and/or providing care, training, or treatment of residents. The facility will also provide shared facilities for eating, hygiene, and/or recreation. In addition, the facility will provide, in part, "residential programs for drug and alcohol treatment,"which is one of the examples of "Group Living" listed in TDC 18.130.040.A(3). However staff that provide care and treatment of the residents will not reside on the site. Therefore the facility does not fall within the definition of"Group Living"in TDC 18.130.040.A. In addition,the primary purpose of the proposed facility is to provide mental health and addiction treatment,not a "living facility." i.The hearings officer notes that TDC 18.130.040.A(3)includes, "nursing and convalescent homes"as examples of"Group Living" uses. In the hearings officer's experience, staff at such facilities generally do not reside on the site. Therefore the requirement for resident staff included in Section A.1 may be an error. However, this requirement is clearly part of the Code and cannot be ignored. 8. TDC 18.130.040.B provides: Household Living. 1. Characteristics: Household Living is characterized by the residential occupancy of a dwelling unit by a household. Tenancy is arranged on a month-to-month basis, or for a longer period. Uses CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 7 where tenancy may be arranged for a shorter period are not considered residential. They are considered to be a form of commercial lodging or transitional housing. Apartment complexes that have accessory services such as food service, dining rooms, and housekeeping are included as Household Living if tenancy meets length of stay requirements and residents have access to facilities for individual meal preparation. The maximum number of people who may reside in any given dwelling unit shall be determined by the state building code. 2. Accessory Uses: Accessory uses commonly found are recreational activities, keeping of normal household pets, hobbies, and parking of the occupants' vehicles. Home occupation and accessory dwelling units are examples of accessory uses that are subject to additional regulations. 3. Examples: Uses include living in houses,duplexes, apartments, condominiums, retirement center apartments, manufactured housing, and other structures with self-contained dwelling units. Includes most types of senior housing, e.g., congregate care, assisted living, if residents live in self-contained units. 4. Exceptions: a. Does not include for-profit lodging, where tenancy may be arranged for periods less than one month. Such uses are considered a hotel or motel use and are classified as commercial lodging. b. Does not include lodging meeting the definition of Transitional Housing. a. The facility will not provide month-to-month or longer tenancy and residents will not have access to facilities for individual meal preparation. Patients will reside at the facility for two to three weeks and all food service will be provided in the common dining area. (See plan sheet A3). Therefore the facility does not fall within the definition of"Household Living"in TDC 18.130.040.B. 9. TDC 18.130.040.0 provides: Transitional Housing. 1. Characteristics: Transitional housing is characterized as public or non-profit living facilities possessing the same characteristics as Household or Group Living,but with tenancy less than 45 days. 2. Accessory Uses: Accessory uses commonly found are recreational facilities, parking of autos for the occupants and staff,and parking of vehicles for the facility. 3. Examples: Examples include homeless shelters, women's/children's shelters, drug/alcohol treatment facilities. 4. Exceptions: CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 8 a. Does not include for-profit lodging where tenancy may be arranged for periods less than one month, which is considered a hotel or motel use and is classified as Commercial Lodging. b. Does not include residential uses meeting the definition of Group Living. c. Does not include residential uses where the residents meet the definition of Household Living. d. Does not include residential uses meeting the definition of Detention Facilities. a. The proposed facility does not meet the standard for Transitional Housing. Transitional housing is defined, in part, as"[l]iving facilities possessing the same characteristics as Household or Group Living,but with tenancy less than 45 days." As discussed above, the facility possesses characteristics of Group Living, i.e., staff who are responsible for supervising,managing,monitoring, and/or providing care, training, or treatment of residents and shared facilities for eating, hygiene, and/or recreation. The facility will provide residential drug and alcohol treatment, which is an explicit example of"Transitional Housing"as well as"Group Living." Patients will reside at the facility for less than 45 days. However Transitional Housing is further defined as, "[p]ublic or non-profit living facilities..."The applicant is not a public or non-profit entity. The applicant will operate the facility on a "for-profit"basis. Therefore the facility does not fall within the definition of"Transitional Housing"in TDC 18.130.040.C(1), which provides, "Transitional housing is characterized as public or non-profit living facilities..." 10. TDC 18.130. 050.G provides: Medical Centers: 1. Characteristics: Medical Centers are facilities providing inpatient, outpatient, and emergency and related ancillary services to the sick and infirm, and are usually developed in a campus setting or on multiple blocks. 2. Accessory uses: Accessory uses may include diagnostic and treatment facilities, laboratories, surgical suites,kitchen/food service facilities; laundry, housekeeping and maintenance facilities; administrative offices and parking. 3. Examples: Examples include hospitals and medical complexes that include hospitals. 4. Exceptions: a. Medical Centers may also include freestanding offices for hospital-based and/or private practice physicians and other allied health care professionals; these medical office buildings are regulated as Offices. b. Does not include uses meeting the definition of Emergency Services. CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 9 a. The facility will provide inpatient services to the sick and infirm, i.e., mental health treatment that the applicant describes as"medically necessary health care treatment"to patients residing at the facility. b. The facility is arguably"[d]eveloped in a campus setting or on multiple blocks."The facility will be housed in two separate buildings on the site. In addition, a campus setting or multi-block facility is not an explicit requirement for a Medical Center. The Code expressly provides that Medical Centers are"usually"designed to this standard. Use of the term "usually"clearly indicates that a campus setting or multi-block facility is not a requirement. c. However the facility does not qualify as a Medical Center,because it will not provide outpatient or emergency services. To qualify as a"Medical Center" the facility must provide, "[i]npatient, outpatient, and emergency ... services to the sick and infirm..."The hearings officer finds that the term "and" as used in TDC 18.130.050.G(1) has its plain, natural, and ordinary conjunctive meaning so as to require that Medical Centers include all of the listed services. As the Oregon Supreme Court held: Generally, the words 'and' and 'or', as used in statutes, are not interchangeable,being strictly of a conjunctive or disjunctive nature, and their ordinary meaning will be followed if it does not render the sense of the statute dubious or circumvent the legislative intent,or unless the act itself furnishes cogent proof of the legislative error." Lommasson v. School Dist No 1, 201 Or. 71, 79, 261 P2d 860, adh'd to in part on rehearing, 201 Or. 90, 267 p2d, 1105 (1954). In this case the term"and"was clearly used in the conjunctive sense. In order to qualify as a medical facility under TDC 18.130.050.G, the facility must provide inpatient,outpatient and emergency services. The proposed facility will not provide outpatient or emergency care. Therefore it cannot qualify as a medical facility based on the plain meaning of the words in TDC 18.130.050.G. Reading TDC 18.130 as a whole, this interpretation does not appear to render the sense of the statute dubious or circumvent the legislative intent. As discussed below,the Code appears to provide for the majority of individual medical service uses that are gathered together in the"Medical Centers" definition in other use categories in the Code. Limiting the term "and"to its usual conjunctive meaning to limit"Medical Centers"to those facilities that provide all three types of medical services does not render the Code meaningless or absurd. d. Arguments that the term "and" should be interpreted to mean the disjunctive "or" in this provision might be more persuasive if the Code did not expressly include other types of inpatient, outpatient, and related ancillary services in other use categories elsewhere in the Code. Outpatient medical facilities and other types of medical services CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 10 such as laboratories and blood collection centers are clearly included in the"Office"use described in TDC 18.130.060.L. Drug and alcohol treatment facilities are expressly included in the examples of"Group Living,""Transitional Housing,"and the exception for"Transient Housing."Nursing and convalescent homes, which may provide a type of residential inpatient treatment,are included in the"Group Living"use. Medical centers as defined by TDC 18.130.050.G combine all of these uses in a single facility,hence the use of the conjunctive term"and."In addition, ORS 174.020(2)provides that a specific provision must prevail over a general provision addressing the same issue. The examples of"Group Living,""Transitional Housing,"and the exception for"Transient Housing" specifically mention residential drug,alcohol and mental health treatment facilities whereas the"Medical Centers"definition includes a wide variety of medical services with no specific mention of drug, alcohol or mental health treatment facilities. e. The only examples of"Medical Centers" listed in TDC 18.130. 050.G(3)are"[h]ospitals and medical complexes that include hospitals."The facility is not a"hospital"as that term is commonly used. f. The applicant argues that the"drug and alcohol treatment facilities" described in the Code are different from the mental health and drug and alcohol treatment facility proposed in this case; the facilities permitted as transitional housing are limited to facilities serving the homeless or previously incarcerated persons. The proposed facility is a for-profit facility serving patients from the general population. Therefore this facility can only qualify as a Medical Center. However the language of the Code does not support such a distinction.The Code lists drug and alcohol treatment facilities in two different use categories and facilities for treatment of"[p]sychiatric, alcohol, or drug problems...,"as an example of a third use category. The Code clearly anticipates a variety of drug, alcohol and mental health treatment facilities,not just facilities for persons"in transition."The hearings officer must interpret the Code in context and cannot consider individual provisions in isolation. 11. TDC 18.130. 060.D provides: Commercial Lodging. 1. Characteristics: Commercial Lodging includes for-profit residential facilities where tenancy is typically less than one month. 2. Accessory uses: Accessory uses commonly found are parking, restaurants and bars,meeting and convention facilities, and recreational facilities for guests such as pools and gym. 3. Examples: Examples include hotels,motels,rooming houses, and bed-and-breakfast establishments. 4. Exceptions: a. Does not include uses meeting the definition of Group Living or Transitional Housing. CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 11 I a. This is the only use category that does not expressly exclude the proposed facility. The proposed facility is a for-profit residential facility where tenancy is typically less than one month. However the primary purpose of the proposed facility is to provide mental health treatment, not residential housing. In addition, the facility is clearly inconsistent with the"Commercial Lodging" examples listed in TDC 18.130.060.D(3), "hotels, motels, rooming houses,and bed-and-breakfast establishments."Therefore the facility does not fall within the definition of"Commercial Lodging" in TDC 18.130.060.D. 12. TDC 18.130.060.L provides: Office. 1. Characteristics: Office uses are characterized by activities conducted in an office setting that focus on the provision of goods and services, usually by professionals. Traditional Office uses are characterized by activities that generally focus on business, government, professional, medical,or financial services. Office uses may include activities that, while conducted in an office-like setting, are less consumer-oriented and focus on the support of off- site service personnel or in the development, testing, production, processing, packaging, or assembly of goods and products. Medical, dental, veterinary offices are out-patient clinics which provide healthcare to humans or animals, characterized by a professional or group of professionals assisted by support staff. 2. Accessory uses: Accessory uses commonly found are parking and storage facilities. 3. Examples: Examples include government offices; medical, dental, and veterinary clinics and laboratories;blood collection centers; professional offices for attorneys, architects, engineers, stockbrokers, insurance brokers, and other consultants; headquarters offices; sales offices; radio and television studios; administrative offices for painting,building, and landscaping contractors; and software development firms. 4. Exceptions: a. Offices that are part of and are located within a firm in another use category are considered accessory to the firm's primary activity. a. The facility will provide medical care to humans by a professional or group of professionals assisted by support staff. But such care is provided on an in-patient basis. Medical office uses included in TDC 18.130.060.L are limited to out-patient facilities. Therefore the facility does not fall within the definition of"Office" in TDC 18.130.060.L. 13. TDC 18.130. 080.0 provides: CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 12 Detention Facilities. 1. Characteristics: Detention facilities are uses devoted to the judicially required detention, incarceration, or supervision of people. 2. Accessory uses: Accessory uses include offices, recreational and health facilities, therapy facilities, maintenance facilities, and hobby and manufacturing facilities. 3. Examples include prisons,jails, probation centers,juvenile detention homes, and related post incarceration and half-way houses. 4. Exceptions: a. Programs that provide care and training or treatment for psychiatric, alcohol, or drug problems, where patients are residents of the program, but where patients are not supervised by police officers, are classified as transient housing. a. The applicant proposed to operate a secure facility where patients are supervised by staff and precluded from leaving prior to the end of treatment. However residence at the facility is not judicially required. Therefore the facility does not fall within the definition of"Detention Facilities" in TDC 18.130.080.C. b. TDC 18.130.080.C(4)(a)provides the following exception: Programs that provide care and training or treatment for psychiatric, alcohol,or drug problems, where patients are residents of the program,but where patients are not supervised by police officers, are classified as transient housing. i. As discussed in the January 23, 2017 "Order Re-Opening the Record,"the proposed use clearly qualifies as"transient housing"as described in this exception. The express purpose of the proposed facility is to provide, "[t]reatment for psychiatric, alcohol, or drug problems, where patients are residents of the program..." Patients in the facility will be supervised by private medical staff,not police officers. Therefore, according to TDC 18.130.080.C(4)(a),the proposed use should be classified as "transient housing."However TDC 18.130.080.C(4)(a) is not a use category. It is merely an exception to the "Detention Facilities"use category. The Code does not include a "Transient Housing"use category. (A)The applicant argues that this exception is limited to, "facilities that provide judicially required treatment for psychiatric, alcohol, or drug problems, where patients are residents of the program,but where patients are not supervised by police officers..."p 4 of Mr. DeCristo's January 30, 3017 letter(italics in original). The hearings officer disagrees with this reading. This section provides an exception to facilities for judicially required detention. The exception makes no mention of the"judicially required"provision. In addition, this exception refers to "patients," not CUP2016-00004 8c VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 13 "detainees,""inmates,"or"prisoners."The hearings officer finds, based on the plain meaning of the words in the Code,that the"judicially required" provision is inapplicable to this exception. (B)The applicant further argues that this exception is intended to apply to facilities operating under Oregon's Behavioral Rehabilitation Services(BRS)rules. However the applicant failed to provide any evidence demonstrating how facilities operating under the BRS rules fall into this exception and the proposed facility does not. Presumably patients of facilities operating under the BRS are there pursuant to a judicial order. However, as discussed above,judicial confinement is not required for this exception. The proposed facility is intended to provide, "[t]reatment for psychiatric, alcohol, or drug problems, where patients are residents of the program..."and patients in the facility will not be supervised by police officers. The exception does not require adjudication or any other requirements. Therefore the proposed facility appears to fall squarely within the scope of this exception. ii. Unfortunately the term "transient housing"is not used anywhere else in the Code. It appears that the term"transient housing"is a typographical error and this section was intended to use the term, "transitional housing." Such an interpretation would be consistent with the example of"transitional housing" in TDC 18.130.040.C(3), which includes, "[d]rug/alcohol treatment facilities." However the examiner has no authority to rewrite the code and correct this apparent typographical error. Weston Kia v. City of Gresham, LUBA 2014-085. Consequently the Hearings Officer cannot find that the proposed use constitutes"transitional housing"definition in TDC 18.130.040.C(3), based on the example of"transient housing" used in 18.130.080.C(4)(a). Therefore the hearings officer cannot find,based on this exception, that the proposed use qualifies as either transient or transitional housing. The use clearly qualifies as"Transient Housing" as defined in this exception. However the Code does not include a"Transient Housing" use category. 14. In order to approve this CUP application the hearings officer must find that the use complies with the CUP approval criteria in TDC I8.330.030.A. The hearings officer finds that the application complies with TDC 18.330.030.A(1), (2), (3), (5) and (6),based on the affirmative findings in the Staff Report. The hearings officer adopts those findings as his own. 15. The hearings officer cannot find that the application complies with TDC 18.330.030.A(4),"The applicable requirements of the zoning district are met except as modified by this chapter."The site is zoned C-P. TDC Table 18.520-1 lists the uses that are permitted, restricted, conditional,or prohibited in the C-P zoning district. Uses are listed in the table based on the use categories set out in TDC 18.130. As discussed above, the proposed inpatient mental health and substance abuse disorder treatment facility does not fall into any of the listed use categories. Therefore the hearings officer cannot find that the proposed use complies with the requirements of the C-P zone and that the requirements of the C-P zone are met. CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 14 16. TDC 18.130.030 gives the director exclusive authority to interpret the Code to determine whether an omitted or unanticipated use would have been permitted in a zoning district if the use had been contemplated, based on the approval criteria in TDC 18.130.030.0 and the procedures in TDC 18.340. If the applicant obtains a final planning director determination that the proposed use is permitted in the C-P zone, this CUP can be approved. Therefore the hearings officer can approve this CUP application subject to a condition of approval requiring a final planning director interpretation that the proposed use is allowed in the C-P zone. a. TDC 18.340.020.D requires the director mail notice of an interpretation decision, "No the person requesting the interpretation and any other person that has specifically requested a copy of such interpretation." Appeals of the director's interpretation are limited to the applicant and any party who received notice or participated in the interpretation process. TDC 18.340.020.E. The question subject to interpretation, whether the proposed inpatient mental health and substance abuse disorder treatment facility is allowed in the C-P zone, was the primary issue in this case. Therefore the hearings officer finds that the director should be required to mail notice of the interpretation to all persons who testified orally or in writing regarding this CUP application. 17. The City argued that denial of this application may constitute a violation of the federal Fair Housing Act(the "FHA"). The City cites to a prior case where Cascadia Behavioral HealthCare Inc. ("Cascadia")proposed a transitional housing use in the R-4.5 zone. Transitional housing was not allowed in the R-4.5 zone. The FHA required the City to grant a reasonable accommodation to allow the use in the R-4.5 zone. The hearings officer understands the City's concerns. However the hearings officer has no authority to implement or interpret the FHA. The hearings officer's authority is limited to implementation and interpretation of the Tigard Development Code. In addition, this case appears significantly different from the Cascadia decision cited by the City. The Cascadia decision involved a residential treatment facility proposed in a residential zone(R-4.5) where housing is a permitted use.This case involves a residential treatment facility proposed in a commercial zone where housing is generally prohibited.'Therefore the FHA may be inapplicable in this case. 18. The applicant testified that the facility will not provide treatment of patients with a history of sex offense, violence,or running away. A condition of approval is warranted to that effect. 19. The applicant requested a variance to the rear yard setback requirements for medical centers. As discussed above, the proposed use does not constitute a"medical Residential development at a minimum density of 32 units/acre is permitted in conjunction with commercial development on C-P zone land in the Tigard Triangle and Bull Mountain Road Districts.TDC 18.520.020.D. CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 15 center"as defined by TDC 18.130..050.G. The proposed use complies with the standard setbacks for permitted uses in the C-P zone. Therefore the variance request may be moot. However the director could presumably interpret the proposed use to be similar to the medical center use and therefore subject to the medical center setbacks. The hearings officer finds that, to the extent this facility is subject to the medical center setbacks it complies with the approval criteria for a variance from those setbacks,based on the findings in the Staff Report. D. CONCLUSIONS Based on the findings and discussion provided or incorporated in this final order, the hearings officer concludes that the proposed inpatient mental health, drug and alcohol treatment facility does not fall within any of the use categories listed in TDC 18.130. Therefore this application can only be approved if the applicant obtains a final planning director interpretation that the proposed use is permitted in the C-P zone, pursuant to the approval criteria in TDC 18.130.030. E. DECISION In recognition of the findings and conclusions contained herein, and incorporating the Staff Report and public testimony and exhibits received in this matter, the hearings officer hereby approves CUP2016-00004 & VAR2016-0004 (Madrona Recovery Center) subject to the following conditions of approval: CONDITIONS OF APPROVAL THE FOLLOWING CONDITIONS SHALL BE SATISFIED PRIOR TO COMMENCING ANY SITE WORK, INCLUDING GRADING, EXCAVATION AND/OR FILL ACTIVITIES: 1. The applicant shall apply for and obtain final approval of a director interpretation that the proposed inpatient mental health, drug and alcohol treatment facility is permitted in the C-P zone, based on the approval criteria in TDC 18.130.030.C. a. The director shall mail notice of the interpretation to all persons who testified orally or in writing regarding this CUP application. 2. The applicant shall prepare a cover letter and submit it, along with any supporting documents and/or plans that address each of the following requirements to the COMMUNITY DEVELOPMENT DEPARTMENT ATTN: Gary Pagenstecher, 503-718-2434. The cover letter shall clearly identify where in the submittal the required information is found: a. Prior to site work, the applicant shall provide a fee in the amount of$518 for the city's cost of collecting and processing the inventory data for the entire urban forestry plan of 14 existing retained trees, $154.00 first tree+ $364.00($28 each additional x 13) = $518. CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 16 h. The applicant shall submit a service provider letter from Pride Disposal verifying the existing enclosure is adequate for the proposed medical center use and accessible for service. THE FOLLOWING CONDITIONS SHALL BE SATISFIED PRIOR TO A FINAL BUILDING INSPECTION: 2. The applicant shall contact the COMMUNITY DEVELOPMENT DEPARTMENT ATTN: Gary Pagenstecher 503-718-2434. a. The applicant shall call for a final planning inspection to ensure the project was completed as shown on the approved plan. b. The applicant shall install clearly visible address numbers on the site for emergency responders. THE APPLICANT SHALL OPERATE THE FACILITY CONSISTENT WITH THE FOLLOWING CONDITIONS: 3. The facility shall not provide treatment of patients with a history of sex offense, violence, or running away. THIS APPROVAL SHALL BE VALID FOR EIGHTEEN (18)MONTHS FROM THE EFFECTIVE DATE OF THE HEARINGS OFFICER'S DECISION. DATED this(3 day of February 2017. 47/40-• Joe Turner, Esq., AICP City of Tigard Land Use Hearings Officer CUP2016-00004& VAR2016-0004 Hearings Officer Final Order (Madrona Recovery Center) Page 17 Exhibit A-2 1111 II City of Tigard TIGARD Memorandum 111 To: Mayor Cook, and City Councilors From: Gary Pagenstecher,Associate Planner Re: Public Hearing for Appeal of Hearing's Officer Decision to Approve Madrona Recovery Center CUP2016-00004/VAR2016-00004 Date: March 21,2017 The following is a revised finding to address the Appellant's third assignment of error: 3. The hearings officer erred in concluding that Madrona demonstrated compliance with TDC 18.330.030.A.3 given the lack of any traffic impact analysis. TDC 18.330.030.A.3 states: All required public facilities have adequate capacity to serve the proposal; Pursuant to 18.390.050.B.2.e, the applicant provided an Impact Statement summarizing that trip generation would be reduced under the proposed medical center use from the prior office use of the site. The applicant also provided a Traffic Impact Statement showing the ITE Manual trip generation for the proposed medical center use would be approximately half of what was permitted under the existing office use. Pursuant to 18.810.020.A, proposed development must addresses the applicable standards in 18.810 for potential impacts to Streets and Utilities. Since the site does not have frontage on a public street (yarns terminates into a private drive), public streets improvements are not applicable. The City's Engineering review did not identify any outstanding public facility capacity issues with the fully developed site. Therefore, there is adequate capacity in the existing public facilities that serve the site. This criterion is met. Exhibit A -3 OC W Zoee Lynn Powers Q zpowers@radlerwhite.com X � LU{ 971-634-0215 Q March 21, 2017 In QTigard City Council CL 13125 SW Hall Blvd. W Tigard, OR 97223 1- 3 RE: Madrona Recovery Center(CUP2016-00004&VAR2016-0004) LLI DL Mayor and Councilors: 0 Madrona Recovery("Madrona") seeks approval of a Conditional Use Permit changing the use of an existing commercial office complex to a medical center—specifically an adolescent mental health and substance use disorder treatment facility—at 6996-7000 SW Varns Street.The proposal is for an adaptive reuse and interior remodeling of properties that have been vacant for three years, under application numbers CUP2016-00004&VAR2016-0004.The facility is designed to provide high-quality, short-term,trauma-informed care to stabilize youth in crisis and work with the youth and their families to bridge care from an emergency,to inpatient care at the property, and finally to ongoing outpatient support.The Hearings Officer approved the Conditional Use Permit ("CUP")application in a Final Order dated February 13, 2017,subject to conditions. I. Madrona is a Medical Center Type Use The CUP process is designed to analyze the site suitability and impacts of the proposed use on the neighborhood and public facilities.TDC 18330.030.A. In this case,the Hearings Officer did that analysis,followed the CUP process, meticulously examined this proposed use and its minimal off-site impacts,and, after consideration of those factors, approved the CUP. The reason we are in front of City Council now is that the Hearings Officer had questions about classifying Madrona as a "Medical Center" use and, because of his uncertainty, he requested another review to make that classification decision.We ask that City Council agree with the planning staff's interpretation of the code that this is a "Medical Center"type use for the following reasons. Under the code, a "Medical Center" use has the "characteristics" of"providing inpatient, outpatient, and emergency and related ancillary services to the sick and infirm[.]"TDC 18.130.050.6.1. The listed "characteristics" of a use in the code, of course,cannot cover every possible use. Rather, "[u]ses are assigned to the category whose description most closely describes the nature of the primary use."TDC 18.130.015.A.1. The Hearings Officer felt uncomfortable being the final decision-maker that classified Madrona Recovery as a Medical Center use.The Hearings Officer conditioned the approved CUP on Madrona seeking a Director's Interpretation to place the proposed use in the "Medical Center" category.That {00650107;3} Tigard City Council March 21, 2017 W a Page 2 C- Zd z Director's Interpretation process, however, is for"omitted" uses that were"unanticipated"or Q "unintentional[ly] omi[ted]." For example, if the code had been written before the internet, an internet café use would have been unintentionally omitted because that category of uses simply had not existed before. H In this case,there is an existing use category with characteristics that"most closely describe[] the nature of the primary use": Medical Center.As noted, a "Medical Center" use has the CL. "characteristics" of"providing inpatient,outpatient, and emergency and related ancillary services to the LU sick and infirm[.]" Madrona Recovery will do all these things for its patients. = First, as with any medical center, most patients and their families will come to Madrona in an emergency situation stemming from a mental health or substance abuse emergency.See"Emergency" at Webster's Third New International Dictionary, Unabridged, Web: 19 Mar 2017 ("an unforeseen W combination of circumstances or the resulting state that calls for immediate action"). Madrona's written admission criteria clearly articulates the emergent nature of the conditions it treats. For example,a child would be a candidate for admission if they presented with suicidal ideation,self-endangering behavior, substance abuse, or an inability to maintain adequate nutrition or self-care. Madrona triages and addresses immediate safety needs of these patients, such as by medicating for detoxification, monitoring for signs of withdrawal, and providing emergency counseling services and constant monitoring. Second, Madrona will provide short-term inpatient treatment to stabilize patients.Therapists, counselors, a nursing team, and a psychiatrist will provide care 24 hours a day, seven days a week, generally for 14 to 21 days depending on the patient's needs. Patients undergo a psychiatric evaluation, a thorough history and physical,a nursing assessment and laboratory tests,a chemical dependency assessment, a nutritional assessment, and other evaluations.As problems are identified,their treatment needs are prioritized, and strategic interventions are implemented. Third, Madrona helps its patients to successfully transition from its structured inpatient program to outpatient supports and services in their home communities.This outpatient service provides the continuity of care that patients critically need to maintain the gains they have achieved during their inpatient stay. Utilizing advanced telemedicine technologies, patients and their families are provided ongoing therapy from their counselor at Madrona via secure video-conferencing,an approach which increases patient chances of continued treatment success and reduces traffic to and from the site. Finally, Madrona will provide"ancillary services," including administrative services, kitchen and dining services, housekeeping and maintenance, as well as fitness and activity programing. Madrona frequently describes their services as a "bridge"that allows patients and their families to move from crisis situations,through an intensive impatient program, into a supported outpatient treatment, and ultimately back to leading healthy full lives.Just as a patient with a broken leg may initially go to urgent care for emergency services and then have a period of inpatient treatment for surgery with outpatient follow up,these mental health and substance abuse disorder patients follow a similar path to recovery through Madrona. {00650107;3} Tigard City Council March 21, 2017 oe W _ Page 3 Imo , XThe Tigard Planning Staff came to the same conclusion: "The City believes that the proposed LIJ recovery center is characterized as Medical Center. . . ." Gary Pagenstecher,Associate Planner, City of Tigard Memorandum:Request from the Hearings Officer for a Use Category Interpretation for the Madrona Recovery Center Conditional Use(January 31, 2017). If City Council cannot conclude today that Ythis is a Medical Center within the meaning of the code, Madrona can obtain a Director's Interpretation pt formalizing the opinion of the Planning Staff. 0— Autonome ASR, LLC's Appeal = Autonome ASR, LLC("Autonome") is the property holding entity on the site next to the proposed use,and the only neighbor who has objected to Madrona's proposed medical center. The majority of Autonome's arguments—that the Hearings Officer needed to decide this was a Medical Center use and that he could not defer the issue to a Director's Interpretation—are not correct because the City Council has the authority to make the use interpretation in this appeal.TDC 18.930.050. City Council will take testimony and evidence on the issue of the correct use, possibly including evidence not presented to the Hearings Officer, and will make a decision on the CUP application. In fact, rather than the code conferring on the Hearings Officer"exclusive jurisdiction"to decide on a conditional use, as Autonome asserts,the definition of"conditional use" provides for an "approval authority"to make the decision following a public hearing,and an "approval authority"can be"either the director,the initial hearing body,or the council,depending on the context. . . ."TDC 18.120.030.22. The context here is the appeal of a Type III procedure, and City Council is empowered to decide that this is a Medical Center use and finalize the approval of the CUP. Although irrelevant at the City Council level, it merits mentioning that Autonome seems to have missed important code sections when it states that a Director's Interpretation would mean "Autonome will have no local appeal rights."Chapter 18.340,titled "Director's Interpretations," provides that "[t]he applicant and any party who received such notice or who participated in the proceedings through the submission of written or verbal evidence of an interpretation may appeal the director's Interpretation to the city council within 14 days. . . ."TDC 18.340.020.The notice of appeal is pursuant to TDC 18.390.040.G.2,exactly the same as the procedure to appeal that Autonome used to file the present appeal to council. Finally, it is unclear why Autonome believes Madrona did not provide the required impact analysis for the CUP application.As part of the Type III procedure for initial CUP applications under TDC 18.330.020.A, Madrona submitted the required impact study "quantify[ing]the effect of the development on public facilities and services."TDC 18.390.050.6.2.e. If Madrona had not submitted this paperwork,the application would not have been accepted as complete.The Impact Study and Traffic Impact Statement are attached as Exhibit A for convenience. Autonome states that Madrona never analyzed "the additional traffic impact this facility will create"—when, in fact,the attached Traffic Impact Statement concluded that the current general office use would produce 120 trips per day and the new, proposed use would produce only 62 trips per day.The Staff Report,dated January 2, 2017, shows that"the City's Engineering review did not identify any outstanding public facility capacity issues {00650107;3} Tigard City Council GG March 21, 2017 W a Page 4 CIa Xz with the fully developed site [and that]there is adequate capacity in the public facilities that serve the site." Staff Report, p.5. Q Ill. Conclusion Madrona asks that CityCouncil classifyits proposed use as a Medical Center and finalize the approval of OC � p p the Conditional Use Permit for 6996-7000 SW Varns Street. W H Sincerely, W CI Zoee Powers {00650107;3} EXHIBIT A Impact Study and Traffic Impact Statement Traffic Impact Statement 6996 & 7000 Varns Street Tigard, Oregon 97223 The existing buildings total approximately 10,296 square feet of usable office space. One of the buildings has an unfinished basement that was used for storage. Based on ITE manuals, a general office produces 11.7 daily trips per 1,000 gross square feet. In its existing use this would produce 120 trips per day. The proposed use will be a total of 23 beds of inpatient medical rehab. The ITE classifies this as a Nursing Home with a land use code of 620. The average daily trips is 2.7 trips per bed. This would put the average daily traffic at 62 trips per day. All use classifications are based on the ITE manual and are not meant to match the City of Tigard's land use classifications. The closest use was selected from the ITE list of uses. As you can see this is a reduction in traffic over the existing use of the buildings. {00650107;3} EXHIBIT A CONT. Madrona Recovery Center Impact Study 6996 & 7000 SW Varns Street Tigard, Oregon 97223 This document will address the impact that this project will have on the public and private infrastructure within the City of Tigard, Washington County and Clean Water Services. The project is a conversion of two existing office buildings. The North building is a two story building with a basement. The two above grade floors have a total of 6,899 square feet with the basement being 2,459 square feet. The Southern building is two stories with no basement. The total square footage of the South building is 3,397. The previous use of the building was office space and more specifically they were law offices for a single tenant. The new use will be an inpatient adolescent mental health and substance use disorder treatment center. The nature of the proposed use is much less taxing on public infrastructure in many ways and will be discussed in more detail in the following statement. Transportation System: As offices, the existing buildings could employ approximately 40 workers that mainly work 8 a.m. to 5 p.m. Monday to Friday. The treatment center will have 32-35 employees. There will be approximately 10 employees per shift and the center will be open 24 hours a day. The overload on the street system will be less than the previous use at peak hours. This use should have approximately 20-30 peak trips in the AM and PM hours. Bikeways: New bike racks will be installed on the property to meet the City requirements. The nearest bike lanes and bus lanes are located on SW 72"dAvenue, which is less than 0.5 miles from the site. No patients of the facility will have access to public transportation during their time at the center. {00650107;31 EXHIBIT A CONT. Drainage System: The site currently has a public storm sewer conveyance system on the north side of the private access easement that is against the Southern ramp to Highway 217. The site also has a storm water quality and detention area that was built when the second building was constructed about 8 years ago. There will be a small amount of impervious surface added to the site for a single basketball hoop. This small addition can have the storm water treated and managed by the existing facility. Parks: The closest park to the site is Potso Dog Park. It is about a 0.6 mile walk from the site. The nature of this business does not negatively affect the park system. The buildings are secured for safety and all outdoor activity are secured to the site for the patients. Water and Sewer System: The two buildings are currently served by the public water system. This use will, by nature, use more water. The following usage per day is based on the industry averages for the specific fixtures. The use may be more or less than approximated based on the building patient load and time of day. The North building will add three wash sinks, three toilets, one clothes washer and one shower. The South building will add one wash sink and one toilet. Based on industry averages these added fixtures could add between 300 — 400 gallons of water per day to the existing use of the site. {00650107;3} Exhibit A - 2 .111 City of Tigard TIGARD Memorandum MOW To: Mayor Cook, and City Councilors From: Gary Pagenstecher,Associate Planner Re: Public Hearing for Appeal of Hearing's Officer Decision to Approve Madrona Recovery Center CUP2016-00004/VAR2016-00004 Date: March 21,2017 The following is a revised finding to address the Appellant's third assignment of error: 3. The hearings officer erred in concluding that Madrona demonstrated compliance with TDC 18.330.030.A.3 given the lack of any traffic impact analysis. TDC 18.330.030.A.3 states: All required public facilities have adequate capacity to serve the proposal; Pursuant to 18.390.050.B.2.e, the applicant provided an Impact Statement summarizing that trip generation would be reduced under the proposed medical center use from the prior office use of the site. The applicant also provided a Traffic Impact Statement showing the ITE Manual trip generation for the proposed medical center use would be approximately half of what was permitted under the existing office use. Pursuant to 18.810.020.A, proposed development must addresses the applicable standards in 18.810 for potential impacts to Streets and Utilities. Since the site does not have frontage on a public street (Varns terminates into a private drive), public streets improvements are not applicable. The City's Engineering review did not identify any outstanding public facility capacity issues with the fully developed site. Therefore, there is adequate capacity in the existing public facilities that serve the site. This criterion is met.