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City Council Packet - 09/05/2017 " City of Tigard Tigard Business Meeting—Agenda TtARD�• TIGARD CITY COUNCIL, LOCAL CONTRACT REVIEW BOARD & CITY CENTER DEVELOPMENT AGENCY MEETING DATE AND TIME: September 5, 2017 - 6:30 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 heard 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 (TDD -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 (TDD -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. rir city- of Tigard Tigard Business Meeting—Agenda TIGARD CITY COUNCIL, LOCAL CONTRACT REVIEW BOARD & CITY CENTER DEVELOPMENT AGENCY MEETING DATE AND TIME: September 5, 2017 - 6:30 p.m. Business Meeting MEETING LOCATION: City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard, OR 97223 6:30 PM 1. BUSINESS MEETING A. Call to Order B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 2. CITIZEN COMMUNICATION (Two Minutes or Less,Please) A. Follow-up to Previous Citizen Communication B. Citizen Communication—Sign Up Sheet 3. CONSENT AGENDA: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: A. APPROVE CITY COUNCIL MINUTES: •June 27,2017 B. CONSIDER AUTHORIZING THE CITY MANAGER OR A DESIGNEE TO SIGN AN IGA WITH WASHINGTON COUNTY TO ADMINISTER THE CITY TRANSIENT LODGING TAX C. CONSIDER APPROVAL OF RESOLUTION WAIVING THE TEMPORARY SIGN PERMIT FEES FOR TIGARD BASKETBALL ASSOCIATION •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. 4. CONSIDER RESOLUTION APPOINTING COMMITTEE FOR COMMUNITY ENGAGEMENT MEMBERS 6:35 p.m. estimated time 5. DISCUSSION ON MOBILE FOOD CARTS POLICY 6:40 p.m. estimated time 6. CITY CENTER DEVELOPMENT AGENCY: CONSIDERATION OF RESOLUTION ACCEPTING THE TIGARD URBAN LOFTS FINANCIAL ANALYSIS AND IMPLEMENTATION STRATEGIES REPORT 7:10 p.m. estimated time 7. LEGISLATIVE PUBLIC HEARING: CONSIDER APPROVING AN ORDINANCE AMENDING THE TIGARD MUNICIPAL CODE TO REFLECT CHANGE OF URBAN RENEWAL AGENCY NAME TO TOWN CENTER DEVELOPMENT AGENCY 7:30 p.m. estimated time 8. CONSIDER RESOLUTION ADOPTING THE REVISED BY-LAWS FOR THE CITY CENTER ADVISORY COMMISSION 7:40 p.m. estimated time 9. LOCAL CONTRACT REVIEW BOARD: CONSIDERATION OF CONTRACT AWARD FOR PACIFIC HIGHWAY SANITARY SEWER LINE 7:50 p.m. estimated time 10. CONSIDER APPROVAL OF FRANCHISE AGREEMENTS FOR CITY OF SHERWOOD, DBA: SHERWOOD BROADBAND AND CONSTELLATION NEW ENERGY, INC 7:55 p.m. estimated time 11. NON AGENDA ITEMS 12. EXECUTIVE SESSION: The Tigard City Council will go into Executive Session to discuss property negotiations, under ORS 192.660(2) (e). 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. 8:00 p.m. estimated time 13. ADJOURNMENT 8:15 p.m. estimated time AGENDA ITEM NO. 2 B - CITIZEN COMMUNICATION DATE: September 5, 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 of Oregon's public meeting and records laws. All written and oral testimony becomes part of the public record. The names and addresses ofpersons 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: hilli �,1 tAtq-ev) c A v Also,please spell your name as it sounds,if it will l help the presiding officer pronounce: A 1Akt f v,vt 1,19-C/V- Address ftg23---;gZ lto s Gkv11 mer Cates City 1 � 0/AA State Zip 'i 1 2,273 Phone No. Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. CITIZEN COMMUNICATION I:\ADM\CITY RECORDERS\000 City Recorder-Records Resources and Policies\CCSignup\citizen communication 170905.doc NTA SUPPLEMENTAL PACKET FOR — CG�i °j1Cornrn yr (DATE OF MEETING) �t 4 - +"rte ;3h°-L r:y,�ffi.„,,,,,,.,..,..v.,..-• .�g "`. x'i�y r -V e • _ ,. . 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Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): Consent Item Agenda Title: Approve City Council Meeting Minutes Submitted By: Kelly Burgoyne, 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: •June 27, 2017 OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Tune 27,2017 Minutes 11111 City of Tigard s ` ' Tigard City Council Meeting Minutes TIGARD June 27, 2017 STUDY SESSION 1. COUNCIL LIAISON REPORTS -Mayor Cook spoke about his trip to Washington,DC to lobby for the COPS grant and one for the Tigard Farmers Market. He met with Housing and Urban Development(HUD) and learned about the focus in funding homelessness programs. He noted that Tigard's legislature appreciates the city's flyer on legislative priorities. He also reported on the U. S. Conference of Mayors. Councilor Anderson said PRAB interviews were held. Councilor Woodard noted there will be a Tigard Heritage Trail walk this week which is one of three. He invited the American Legion commander and adjunct to give input on a memorial wall or a flag. City Manager Wine said the purpose of the walks is to receive input on the design for the trail and there will be a walk each month this summer. Mayor Cook said he spoke to National Endowment for the Arts representatives in Washington DC and spoke about outreach for the trail.They were so impressed they encouraged the city to apply for funding from an NEA program called Our Town. Councilor Goodhouse mentioned the use of a cell phone tower for a large flag in eastern Oregon. Administrative Items: City Manager Wine said there are opportunities for council to participate in any of 30-40 events planned throughout the summer including Pop-ups in the Park,Ice Cream Socials,Movies in the Park and Budget and Brews. A schedule will be distributed to council and some levy and bond communication material is also available. Council members are invited to attend and help with the message or just drop in and see how the conversations are going. The levy and bond task force will be invited to some events and will also hold their own listening sessions when their works gets underway. Assistant City Manager Newton passed out information on Annexation Zone 2,which has two properties already under an annexation contract so council cannot consider that zone at tonight's hearing since the conditions of the contract cannot be changed without their permission. City Manager Wine suggested council continue discussion on Zone 2 to a future date. 2. BUSINESS MEETING A. At 7:36 p.m. Mayor Cook called the Tigard City Council and Local Contract Review Board meeting to order. TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov Page 1 of 21 B. City Recorder Krager called the roll. Present Absent Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson V Mayor Cook ✓ Councilor Goodhouse V C. Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Mayor Cook asked Council and Staff for Non-Agenda Items. None 3. CITIZEN COMMUNICATION A. Follow-up to Previous Citizen Communication— None B. Citizen Communication—Sign-up Sheet. Gretchen Buehner, 11920 SW Imperial Avenue,#12,King City,OR 97224, spoke about downtown planning. She said she watched the last council workshop discussion regarding issues for the downtown and realized that some work done in the 2000s got lost. There was a three-year period after urban renewal was passed and a project identified in a consultant report included an urban creek. She said it was supposed to go where the parking lot on Burnham Road and Main Street is. She noted that there had been a turnover on the council and planning staff members and wanted to bring this to the current council's attention. Ms. Buehner also thanked Assistant City Manager Newton for her wonderful service to the City Tigard. 4. CONSENT AGENDA: (Tigard City Council and Local Contract Review Board) A. APPROVE CITY COUNCIL MEETING MINU L S • April 11,2017 • April 25,2017 B. PROCLAIM JULY 2017 AS PARK AND RECREATION MONTH C. PROCLAIM THE 20m ANNIVERSARY OF MIDDLE OF MILLEN DRIVE PARADE D. LOCAL CONTRACT REVIEW BOARD:AUTHORIZE PURCHASE OF POLICE VEHICLES TIGARD CITY COUNCIL MINUTES —JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 I www.tigard-or.gov Page 2 of 21 Council President Snider moved for adoption of the Consent Agenda as presented. Councilor Goodhouse seconded the motion. The motion passed unanimously. Mayor Cook said Item 4.0 is a proclamation for the 20th anniversary of the Middle of Millen Drive Parade and people may not be aware that what started out as a neighborhood parade with a few wagons is now the largest Fourth of July parade in Tigard. Millen Drive is near the Tigard High stadium and the neighbors do an amazing job. Yes No Council President Snider ✓ Councilor Woodard V Councilor Anderson V Mayor Cook ✓ Councilor Goodhouse V 5. CONSIDER A RESOLUTION APPOINTING LIBRARY BOARD MEMBERS AND ALTERNATES City Manager Wine gave the staff report on behalf of Library Director Barnes and the Mayor's Appointment Advisory Committee. Interviews were held to fill five voting member and two alternate positions. Mayor Cook mentioned the excellent pool of interested citizens and said there were more applicants than spots available. He said it was difficult to turn down citizens who are so well qualified. Councilor Anderson moved to approve Resolution No. 17-29. Councilor Goodhouse seconded the motion. Resolution No. 17-29—A RESOLUTION RE-APPOINTING KATIE HARRIS AND APPOINTING LONN HOKLIN,AND MARY BOGART TO THE TIGARD LIBRARY BOARD FORA I LRM OF FOUR YEARS,EFFECTIVE JULY 1,2017 THROUGH JUNE 30,2021;AND APPOINTING REBECCA GAUTHIER AND JEAN HART TO COMPLE 1'h PERMS OF TWO POSITIONS VACA 1JD MID-'PERM,EFFECTIVE JULY 1,2017 THROUGH JUNE 30,2019;AND APPOINTING CHUNG-HUEY NINA KUNG AND MARTIN RUBIN AS ALTERNATES FOR A TWO YEAR TERM,EFFECTIVE JULY 1,2017 THROUGH JUNE 30,2019 Yes No Council President Snider V Councilor Woodard V Councilor Anderson V Mayor Cook V Councilor Goodhouse V TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 I www.tigard-or.gov Page 3 of 21 6. CONSIDER RESOLUTION APPROVING A DEVELOPMENT AGREEMENT WITH SD DEACON FOR TIGARD TRIANGLE PROPERTY Associate Planner Pagenstecher presented the staff report for this item.At issue is a development agreement between SD Deacon and the city for redevelopment of property in the Tigard Triangle. Council was briefed and reviewed the proposal at the May 16,2017 workshop and agreed to take action tonight. Staff recommends council approval of the agreement and finds that it is not in conflict with the Community Development Code,results in a significant extension of the regional multi-modal trail to serve the Tigard Triangle and provides assurances to the developer supporting redevelopment of the site. He noted that the attorneys for SD Deacon were present. Councilor Woodard moved for approval of Resolution No. 17-31. Councilor Anderson seconded the motion. The motion passed unanimously. Resolution No. 17-31 —A RESOLUTION APPROVING A NON-STATUTORY DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TIGARD, OREGON AND TRIANGLE POIN 1'E,LLC AND TRIANGLE POIN'l'E TWO, LLC TO FACILITATE REDEVELOPMENT Yes No Council President Snider V Councilor Woodard V Councilor Anderson V Mayor Cook V Councilor Goodhouse V 7. QUASI-JUDICIAL PUBLIC HEARING—CONSIDER ORDINANCES FOR ISLAND ANNEXATIONS A. Mayor Cook opened the public hearing. B. City Attorney Rihala read the hearing procedures. Copies of the procedures were available at the front of the room. C. Mayor Cook asked Council if any member had a conflict of interest or ex parte contact. Councilor Goodhouse asked if attendance at the council annexation outreach event in April counted as ex parte contact.Attorney Rihala said it did not. Mayor Cook disclosed that he received an email on this subject that did not come in through city email. He has been out of town and will forward it for the record.He did not feel that it would bias his decision. City Attorney Rihala asked for a summary. Mayor Cook said the email was about Annexation Zone.9 which is the commercial property and there was confusion because Washington County had building codes and regulations and it asked why the city didn't push annexation then. Also stated in the letter was that they knew the mayor from the Chamber of Commerce Board and they were an employee of a local contractor of the city and have investment interest in the property. Mayor Cook said it would not sway his TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 I www.tigard-or.gov Page 4 of 21 decision on how he would vote. He added that he has walked or driven by almost all of the island properties. D. Mayor Cook asked if anyone in the audience challenged the participation of a Council member. There were no challenges. E. Staff Report—Assistant Planner Smith gave the staff report and said this proposal is to annex ten different unincorporated islands that are areas completely surrounded by the Tigard jurisdiction. She showed maps and described each of the ten annexation zones by number and tax lot size and discussed zoning equivalents between the county and city. Zone 1 is made up of the Arlington Heights and Arlington Heights Two Subdivision. It is about 15 acres in size and is comprised of 55 tax lots. Under Washington County zoning,all 55 lots are zoned R-6 which means Residential—six units per acre. If the annexations are approved they will be converted to Tigard equivalent zoning,which in this case would be R-7—Medium Density Residential. Zone 2 is 1.13 acres and is made up of one tax lot. Under Washington County zoning it is also R-6 and if approved,will become R-7—Medium Density Residential. She said in 2015 it was originally proposed as part of the Summit Ridge Annexation which was a 29-lot subdivision located south of the site. At the time the owners opted to exclude their property from this previous annexation request and instead, an annexation contract was signed. This contract would allow the city to annex the property at a later time. She said the applicant will discuss this at greater length in their presentation. Zone 3 is made up on seven tax lots totaling 6.6 acres in size and is currently zoned R-6 in Washington County zoning and will convert to R-7—Medium Density Residential under City of Tigard equivalent zoning. Zone 4 is made up of two parcels totaling five acres in size. The Washington County zoning is currently R-6 and will convert to R-7—Medium Density Residential under City of Tigard equivalent zoning. Zone 5 has two tax lots totaling about one acre in size.The Washington County zoning is currently R-6 and will convert to R-7—Medium Density Residential under City of Tigard equivalent zoning. Zone 6-A is made up of five tax lots of land totaling about 8.3 acres in size.The Washington County zoning is R-6 and City of Tigard equivalent zoning is R-7. Zone 6.B is made up of one tax lot totaling 0.93 acres in size.The Washington County zoning is R-6 and City of Tigard equivalent zoning is R-7. Zone 6-B is the only proposed annexation area in this project that was voluntarily submitted by the TIGARD CITY COUNCIL MINUTES —JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 I www.tigard-or.gov Page 5 of 21 property owner. If council approves the annexation of Zone 6-B it will be effective as soon as it is filed with the Secretary of State. Zone 7 is made up of one tax lot and is 0.225 acres in size. Under Washington County zoning it is R-15,or Residential—15 units per acre and under City of Tigard zoning it would become R-25 zone—Medium High Density Residential. Zone 7 and 8 are the only two properties in this project that are not located in the Tigard Water Service Area. They receive water from the Tualatin Valley Water District which will remain the same even under annexation. Zone 8 is made up of one tax lot and is 0.609 acres in size. It is Washington County zoning Residential R-5 or five units per acre and under City of Tigard zoning would become R-4.5—Low Density Residential. As mentioned previously,Zone 8 is located within the Tualatin Valley Water District which would remain the water provider. Zone 9 is one tax lot and is one acre in size. The Washington County zoning designation is R-24,or Residential—24 units per acre. Upon annexation,the City of Tigard equivalent zoning is R-25. All of the proposed annexations meet the requirements of the Tigard Community Development Code,Tigard Comprehensive Plan,Metro Code and state statutes. They will be removed from the Washington County Enhanced Sheriff's Patrol District and Washington County Urban Road District and will instead receive services from the Tigard Police and Public Works Departments. Except for Zones 7 and 8,which are in the Tualatin Valley Water District,all annexed areas will be removed from the Tigard Water District. Zones 1 and 9 will also be removed from the Washington County Service District for Street Lighting. Assistant Planner Smith said staff recommends approval of the proposed island annexations by adoption of the ordinances. F. Assistant City Manager Newton and Executive Assistant Bengtson represented the city as applicants.Assistant City Manager Newton said that since the city initiated these annexations,it is the applicant. She commented that she has come full circle; starting her career with the city as a planning intern annexing islands and now she is retiring in two days,and annexing the last islands. She credited Executive Assistant Bengtson with preparation of all of the annexation applications to submit to the Community Development Department. She said the council adopted goals in March for 2017-2019 and Goal 6 was to annex islands into the city. Assistant City Manager Newton showed a PowerPoint and discussed the outreach to affected property owners. She said it was important to note that the majority of annexations will not take effect for three years,with no changes to taxes or services until then. There are two exceptions;one property owner signed a voluntary TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 I www.tigard-or.gov Page 6 of 21 annexation agreement,and staff recommends Zone 5 not go into effect for ten years or whenever sewer is available. Ms. Newton discussed the outreach to island residents and showed a letter that was mailed March 16,signed by the mayor and councilors inviting affected property owners to an open house on April 5. Fifteen property owners came and met with the council. On May 1 a postcard was mailed to property owners that the city had not heard from. On June 7 she and Ms. Bengtson went door to door and hung door hangers on each property that the city still had not heard from letting them know the city was interested in hearing from them and informing them of the date of the public hearing. She discussed each zone Zone 1 —One property owner attended the open house and two asked for property tax estimates.When they were putting out the door hangers one property owner said he was not interested in annexation. The HOA treasurer asked if the city would be interested in taking ownership from the HOA of the storm water facility and the strips of right-of-way facility along Bull Mountain Road. Staff explored the right-of way responsibilities. Parks and Facilities Manager Martin visited the storm water facility and advised that after bringing it up to standards,it would cost about $10,000-$15,000 to maintain annually. He also advised that it would be beneficial for the city to maintain it to ensure it was functioning properly. The HOA would need to transfer the property to the city and provide access to the facility. Streets Supervisor Walker confirmed that the city is responsible for maintaining Bull Mountain Road along the subdivision but the right of way maintenance would be the responsibility of the HOA. Since Bull Mountain Road is designated as a collector and as such,right-of-way maintenance could be a candidate for city contracted maintenance like on Durham Road and 135th Avenue. It could cost$2,400 to$3,000 per year if the city was interested in pursuing that. Mayor Cook asked for clarification that because the annexation doesn't take place for three years the city would not be taking over any of those responsibilities until then and Ms. Newton agreed. Zone 3 is seven different properties and three separate islands on Bull Mountain Road. Owners of four properties attended the open house and a tax assessment estimate was prepared and emailed to one of the property owners on request. Zone 4 is two tax lots owned by one owner on Alpine Crest Way. Although not directly contacted by the property owner,Councilor Woodard was advised by a neighbor of this property that the property owner would like to arrange access to park property (Bull Mountain Park). Parks and Facilities Manager Martin said a chain link gate could be installed if the property owner is interested. Zone 5 is two properties on Sunrise Lane adjacent to Sunrise Park and although there is sewer in the vicinity,engineers advise that extension of the sewer facilities would be cost-prohibitive at this time. One of the property owners is interested in TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov Page 7 of 21 sewer when it becomes available. None of the other island properties are in this situation and all have sewer available. For this reason,staff recommends annexation for Zone 5 be delayed for ten years or when sewer becomes available. Owners of one of the properties came to the open house and have been in regular contact with staff throughout the process. The other owner submitted a letter on June 19,2017 expressing opposition to annexation or at least as agreement to annex upon sale of the property. Ms. Newton contacted the owner and informed her that if the annexation was approved it would not be in effect for ten years.The owners of 14905 SW Sunrise reported that a fence installed 30 years ago by a previous owner between their property and Sunrise Park sustained major winter storm damage and requested that the fence be repaired or replaced. Parks Supervisor McKnight did a field assessment and estimated that it would cost$4,800 to replace the fence along the city's park and he is willing to do this if council is supportive of that. The property owners are concerned that good weather brings more activity in the park in the evenings and into the night and submitted photos and have been in contact with the police chief. The park is supposed to be dosed at dusk. Another request was that cars parking along the road taking up travel lanes could be accommodated in space closer to the park entrance. Their ideas have been submitted to Parks and Facilities Manager Martin and Parks Supervisor McKnight for their review. They also inquired about Sunrise Lane pavement that is not currently in the right of way and contend that if the street is widened it should be on the south side. The city has confirmed that the majority of that pavement is not in the city's right of way. Mayor Cook asked what the definition of sewer"becoming available"is. Assistant Community Development Director McGuire said he did not know of a standard but he is aware that the existing property is far away from sewer. He said he understands that there is a property between existing sewer and this property likely to develop in the future which would extend it into the definition of"becoming available."Mayor Cook said he wanted more clarity on this,whether it is a certain distance or dollar amount and he thought property owners should have this information. Zone 6 is divided into three separate segments. Zone 6-A is five tax lots along both sides of Fern Street and one property owner attended the open house and two requested property tax estimates. Zone 6-B is owned by one owner who has signed an annexation agreement and asked if council would waive the$718 lot line adjustment application fee and he would assume responsibility for all other development application fees. Zone 6-C contains two lots and annexation is not under consideration this evening because the northern-most property owner is doing a survey and working with city engineers to determine how to get connected to sewer. He will sign a voluntary annexation and come in right away if he can get connected. The southern property owners have been notified that they would then be inside an island and Ms. Newton informed them that if that island is created they would be annexed. TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.dgard-or.gov Page 8 of 21 Zone 7 is one tax lot on Spruce Street,west of Hall Boulevard. An email was received from the property owner on June 19,2017 requesting a continuance and asking for more information. Zone 8 is one tax lot on SW Landau and Ms. Newton has held two conversations with the property owner who is opposed to annexation because he questions the benefit. Zone 9 is one tax lot with a multi-family complex and associated parking. One of the property owners attended the April 5 open house and submitted a letter on June 19,asking for a delayed effective date of ten years. The Zone 2 property owners have an annexation contract in place now that requires them to annex no later than March 2019. Staff proposed that they receive the three year period consistent with the other island properties,moving the effective date to 2020. The owners are working out details with Venture Properties on getting a sewer connection and are considering whether to keep with the original agreement or annex under this ordinance. Ms. Newton said the city attorney pointed out that the city does not have permission to move ahead with the ordinance tonight and the property owner has asked for a continuance to July 25,2017. Ms. Newton summarized that staff is recommending council approve ordinances with the exception of Zone 2 and provide direction on the following: Zone 1 —Contact HOA to find out if there is interest in transferring ownership of the storm water facility and right of way maintenance along Bull Mountain Road. Zone 4—Contact the property owner regarding a gate for access to Bull Mountain Park. Zone 5—Staff supports the replacement of the fence between Sunrise Park and 14905 SW Sunrise Lane. The ordinance effective date is in ten years. Zone 6—Follow up on annexation of 13990 and 13992 SW Fern which are in play with potential sewer connection. Mayor Cook asked for clarification on a distance number for sewer connections. Assistant Community Development Director McGuire said he needs more time to get an estimate. Councilor Goodhouse asked if Zone 5 will be annexed in at the ten-year point whether or not they are connected to sewer. Ms. Newton said they would still get annexed in at ten years even if they do not have sewer,or earlier if they do. She said one property owner wants to connect as soon as sewer is available. Mr. McGuire suggested that might be the tie-in;when the neighboring property connects it will make it more available for the other property. TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov Page 9 of 21 G. Public Testimony: Gretchen Buehner, 11920 SW Imperial Avenue#12,King City,OR 97224,said these annexations are something she was working on when she first got on the city council in 2007. She commented that the county code states that if a property is within 300 feet of a sewer line and their septic system fails they are required to hook up to the sewer. She said Washington County has been haranguing the city for many years to get this going and she is thrilled to see that it is happening. Marland Henderson, 11795 SW Katherine Street,Tigard,OR 97223, said he was here for one point. He said he was neutral about the annexations but requested that council defer a vote for at least a month or two. He said Community Participation Organization (CPO) 4B was unaware that this vote would be happening tonight and they had planned to discuss it on July 13. He said he spoke to them on two occasions and they feel they were not involved. He noted that they only meet every three months and did not meet in January due to weather. He said it would be a good thing if this vote could be delayed. Gretchen Buehner said it was in the April CPO4B newsletter. Alexander Backardjiev, 7505 SW Landau Street, Tigard, OR 97223, said he just did not want to join Tigard. He did not see an advantage. Nathan Schmitz, 14635 SW 133rd Avenue,Portland,OR 97224,said he attended the open house and thought it was a great session. Being new to the process,he gathered information and studied maps. He said he was interested because he is considered living on an island due to a small strip of right of way. He said he is against annexation as a matter of principle and is comfortable with the services he currently receives. His area connects to other areas of Bull Mountain and he asked, "Why not annex us all in at the same time?" Nancy Younger, 15065 SW Sunrise Lane,Tigard,OR 97224,asked for clarification on the sewer location. She said there are seven houses below hers and none are on sewer. She said most along 150`h Avenue are on septic and there is a codicil in their deeds on the west side of 150th Avenue that they cannot sell to a developer unless the entire block sells to a developer. She asked what the proposed development on Sunrise Lane might be and whether there were plans for Sunrise Park that could include the city bringing in sewer. Mayor Cook said there are plans to develop the park but not for next ten years. Ms.Younger said she does not like the plans. Mayor Cook responded that citizens can change the plans. Ms.Younger expressed concern about the wording, "in ten years or when there is sewer,"and said she does not want to be in the city. Daniel Olsen, 110730 SW 85th Avenue,Tigard,OR 97223 said he had concerns with Zone 7 and asked about the conversion from Washington County Zone 15 to City TIGARD CITY COUNCIL MINUTES-JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov Page 10 of 21 of Tigard Zone R-25. He asked if the city considered lowering it to Zone 12 which also abuts the property. Mayor Cook asked staff how they define the closest zoning. Assistant Community Development Director McGuire said the zoning will not affect anything until the land is sold. R-25 is medium density(13-25 per acre). Council President Snider asked why the city would zone a property R-25 when it is only .225 acres. Mr. McGuire said staff is using the standard conversion chart. Mayor Cook asked staff to look up how the other adjacent property is zoned. H. Response to testimony by staff Assistant Planner Smith responded regarding Zone 7 and said the adjacent property is zoned R-25. One corner is R-12. She showed a slide of maps to illustrate the zoning. Assistant Community Development Director McGuire added that triggers for the Zone 5 properties could be ten years or when one or the other gains access to sewer. Mayor Cook said coming up with a certain distance figure that defines when sewer is considered available would be helpful. Applicant rebuttal to testimony Assistant City Manager Newton responded that Sia Lindstrom at Washington County was contacted along the way and was sent topics of letters,postcards,the schedule and a copy of the door hanger. She spoke with Jim Long of CPO4M who said they will be discussing it tomorrow night at their meeting. Ms. Buehner said this was in the CPO newsletters. Ms. Newton said Marland Henderson suggested that Lisa Hamilton contact her directly but she did not. Assistant Planner Smith said that per land use notification requirements CPOs are on the interested parties list and they did receive notification and communication via email that they received the notice. Councilor Woodard asked about the CPO notification process and Ms. Newton said she made every effort to make sure the CPOs were in the loop. She said,in all fairness,the CPO chairs are volunteers and she assumed that Washington County would have notified them. She said she called Ms. Lindstrom right away when Mr. Henderson told her that CPO4B did not know about the annexations. Councilor Goodhouse said it sounds like the property owner in Zone 5,who would be annexed in when there is sewer at a certain distance or in ten years,probably would not want to be a resident then anyway. He suggested a three-year timeframe for all of the annexations because it would be less confusing. He said if council does not want to go that route he would like to see them annexed in at the time of sale. Councilor Anderson said he wanted to assure the public that this is not a land grab and has been on the table for years. He noted that service providers are frustrated by TIGARD CITY COUNCIL MINUTES-JUNE 27, 2017 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov Page 11 of 21 islands within the city and this evens out the services that the rest of the neighbors are paying for. Council President Snider asked a hearing process question and City Attorney Rihala said the hearing was quasi-judicial because it is for a discrete number of properties. Council President Snider said he did not want the CPOs to feel excluded but in this situation the city went over and above to communicate with property owners. Council personally participated in outreach and every property owner was invited. He observed that a meeting cycle of every three months does not provide a timely source of feedback for a city council that meets weekly. He added that he was not favorable towards bringing in all properties in three years. Councilor Woodard said he agreed with the three-year timeframe as hooking up to sewer may be costly for some areas. He said it is true that the islands should be incorporated as they use services and should pay for them. He said he did not hear negative concerns at the annexation outreach and council has been available to citizens but has not been contacted. He expressed disappointment with the county CPO staff for the missed communication opportunity. Mayor Cook said he would like to discuss Zone 5 further. Assistant City Manager Newton said Zone 5 already has the language about either ten years, and council could add "when sewer is available." Councilor Goodhouse suggested adding, "or upon sale." Mayor Cook disagreed, saying it could be sold tomorrow and they cannot get sewer yet so he did not feel that wording was appropriate. Councilor Woodard asked to see the list. Assistant City Manager Newton said the list of items is not related to the quasi-judicial decision and needs to be addressed separately because they are not part of the annexation process. Council President Snider said it is the city council's intent is to provide follow up on the desired items. J. Mayor Cook closed the Public Hearing. K. Council Discussion and Consideration: Ordinance No. 17-07 Councilor Goodhouse moved to approve Ordinance No. 17-07 and his motion was seconded by Councilor Woodard. Councilor Anderson asked about the request from the property owners and Council President Snider noted that council's intent is for staff to follow up on all of the items on the list. City Recorder Krager read the number and title of the Ordinance. TIGARD CITY COUNCIL MINUTES - UNE 27, 2017 _ City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 12 of 21 Ordinance No. 17-07—AN ORDINANCE ANNEXING 55 PARCELS OF LAND TOTALLING 15.164 ACRES,APPROVING THE ZONE 1 ISLAND ANNEXATION (ZCA2017-00001),AND WITHDRAWING PROPERTIES FROM THE TIGARD WATER DISTRICT,WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT, WASHINGTON COUNTY URBAN ROAD MAINTENANCE DISTRICT, AND WASHINGTON COUNTY SERVICE DISTRICT FOR LIGHTING. City Recorder Krager conducted a roll call vote. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Mayor Cook announced that Ordinance No. 17-07 was adopted unanimously. L. Council Discussion and Consideration: Ordinance No. 17-08 Councilor Woodard moved for adoption of Ordinance No. 17-08. Council President Snider seconded the motion. City Recorder Krager read the number and tide of the ordinance. Ordinance No. 17-08— AN ORDINANCE ANNEXING SEVEN (7) PARCELS OF LAND TOTALLING 6.605 ACRES,APPROVING THE ZONE 3 ISLAND ANNEXATION (ZCA2017-00003),AND WITHDRAWING PROPERTIES FROM THE TIGARD WATER DISTRICT,WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT,AND WASHINGTON COUNTY URBAN ROAD MAINTENANCE DISTRICT City Recorder Krager conducted a roll call vote. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Mayor Cook announced that Ordinance No. 17-08 was adopted unanimously. TIGARD CITY COUNCIL MINUTES —JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 13 of 21 M. Council Discussion and Consideration: Ordinance No. 17-09 Councilor Anderson moved for approval of Ordinance No. 17-09 and Councilor Goodhouse seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 17-09— AN ORDINANCE ANNEXING TWO (2)PARCELS OF LAND TOTALLING 5.083 ACRES,APPROVING THE ZONE 4 ISLAND ANNEXATION (ZCA2017-00008),AND WITHDRAWING PROPERTIES FROM THE TIGARD WATER DISTRICT,WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT,AND WASHINGTON COUNTY URBAN ROAD MAINTENANCE DISTRICT City Recorder Krager conducted a roll call vote. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Mayor Cook announced that Ordinance No. 17-09 was adopted unanimously. N. Council Discussion and Consideration: Ordinance No. 17-10 Councilor Goodhouse moved to approve Ordinance No. 17-10 amended to include the language, "in ten years or when connected to sewer." Councilor Anderson seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 17-10— AN ORDINANCE ANNEXING TWO (2)PARCELS OF LAND TOTALLING 1.01 ACRES,APPROVING THE ZONE 5 ISLAND ANNEXATION (ZCA2017-00002),AND WITHDRAWING PROPERTIES FROM THE TIGARD WATER DISTRICT,WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT,AND WASHINGTON COUNTY URBAN ROAD MAINTENANCE DISTRICT,with the amendment to change the timeframe to ten years or when connected to city sewer. Council President Snider asked if the words "whichever is sooner" should be added. City Attorney Rihala said council could clarify that and Mayor Cook asked for a vote TIGARD CITY COUNCIL MINUTES-JUNE 27, 2017 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 I www.tigard-or.gov Page 14 of 21 on that clarification. All voted in favor to add the words, "whichever is sooner" to the amended language. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ City Recorder Krager conducted a roll call vote. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson V Mayor Cook ✓ Councilor Goodhouse V Mayor Cook announced that Ordinance No. 17-10 was adopted unanimously. O. Council Discussion and Consideration: Ordinance No. 17-11 Council President Snider moved for approval of Ordinance No. 17-11 and Councilor Anderson seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 17-11 — AN ORDINANCE ANNEXING FIVE (5)PARCELS OF LAND TOTALLING 8.306 ACRES,APPROVING THE ZONE 6A ISLAND ANNEXATION (ZCA2017-00009),AND WITHDRAWING PROPERTIES FROM THE TIGARD WATER DISTRICT,WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT,AND WASHINGTON COUNTY URBAN ROAD MAINl'ENANCE DISTRICT City Recorder Krager conducted a roll call vote. Yes No Council President Snider V Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ TIGARD CITY COUNCIL MINUTES— UNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 15 of 21 Mayor Cook announced that Ordinance No. 17-11 was adopted unanimously. P. Council Discussion and Consideration: Ordinance No. 17-12 Councilor Woodard moved for approval of Ordinance No. 17-12 and Council President Snider seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 17-12— AN ORDINANCE ANNEXING ONE (1)PARCEL OF LAND TOTALLING 0.930 ACRES,APPROVING THE ZONE 6B ISLAND ANNEXATION (ZCA2017-00010),AND WITHDRAWING PROPERTY FROM THE TIGARD WATER DISTRICT,WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT,AND WASHINGTON COUNTY URBAN ROAD MAINTENANCE DISTRICT City Recorder Krager conducted a roll call vote. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Mayor Cook announced that Ordinance No. 17-12 was adopted unanimously. Q. Council Discussion and Consideration: Ordinance No. 17-13 Council President Snider moved for approval of Ordinance No. 17-13 and Councilor Anderson seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 17-13— AN ORDINANCE ANNEXING ONE (1) PARCEL OF LAND TOTALLING 0.225 ACRES,APPROVING THE ZONE 7 ISLAND ANNEXATION (ZCA2017-00004),AND WITHDRAWING PROPERTY FROM THE WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT AND WASHINGTON COUNTY URBAN ROAD MAINTENANCE DISTRICT City Recorder Krager conducted a roll call vote. TIGARD CITY COUNCIL MINUTES —JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 16 of 21 Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Mayor Cook announced that Ordinance No. 17-13 was adopted unanimously. R. Council Discussion and Consideration: Ordinance No. 17-14 Councilor Anderson moved for approval of Ordinance No. 17-14 and Councilor Woodard seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 17-14— AN ORDINANCE ANNEXING ONE (1) PARCEL OF LAND TOTALLING 0.609 ACRES,APPROVING THE ZONE 8 ISLAND ANNEXATION (ZCA2017-00005),AND WITHDRAWING PROPERTY FROM THE WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT AND WASHINGTON COUNTY URBAN ROAD MAINTENANCE DISTRICT City Recorder Krager conducted a roll call vote. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Mayor Cook announced that Ordinance No. 17-14 was adopted unanimously. S. Council Discussion and Consideration: Ordinance No. 17-15 Council President Snider moved for approval of Ordinance No. 17-15 and Councilor Woodard seconded the motion. City Recorder Krager read the number and title of the ordinance. TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 mwomairwa City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 17 of 21 Ordinance No. 17-15—AN ORDINANCE ANNEXING ONE (1) PARCEL OF LAND TOTALLING ONE (1)ACRE,APPROVING THE ZONE 9 ISLAND ANNEXATION (ZCA2017-00006),AND WITHDRAWING PROPERTY FROM THE TIGARD WATER DISTRICT,WASHINGTON COUNTY ENHANCED SHERIFF'S PATROL DISTRICT,WASHINGTON COUNTY URBAN ROAD MAINTENANCE DISTRICT,AND WASHINGTON COUNTY SERVICE DISTRICT FOR LIGHTING City Recorder Krager conducted a roll call vote. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Mayor Cook announced that Ordinance No. 17-15 was adopted unanimously. Councilor Woodard moved to re-open and re-notice the public hearing and continue it on July 25,2017 to consider an ordinance to annex Zone 2. Councilor Goodhouse seconded the motion. Council President Snider objected to continuing a hearing that had been dosed and asked if that threatened all the other decisions made tonight under one quasi-judicial hearing. A process discussion was held and City Attorney Rihala said council could either reopen and continue the public hearing for Zone 2 or hold a new public hearing.Assistant Community Development Director McGuire confirmed that the 20-day notice could be met. Councilor Woodard withdrew his original motion. Councilor Woodard moved to hold a new public hearing on July 25,2017 for consideration of Zone 2 and re-notice the hearing. Councilor Goodhouse seconded the motion. Mayor Cook conducted a vote and the motion passed unanimously. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Mayor Cook directed staff to follow up on the list of separate requests from property owners. TIGARD CITY COUNCIL MINUTES —JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 18 of 21 8. LOCAL CONTRACT REVIEW BOARD—CONSIDER CONTRACT FOR DESIGN, FABRICATION AND DELIVERY OF PEDESTRIAN BRIDGE ON FANNO CREEK TRAIL Senior Management Analyst Barrett and Engineering Project Manager Peck presented the staff report. Under consideration is a contract for the final design of the Tiedeman realignment for the Fanno Creek Trail to bring it up to regional design standards which support Tigard's strategic plan. This is for the design, fabrication and installation of an 80-foot steel truss pedestrian bridge only,not the trail. An RFP was issued and three proposals were received.A selection team found that Contech Engineered Solutions met the qualifications and scored the highest. The cost is $110,220. Mayor Cook clarified that this was not a QBS process and Senior Management Analyst Barrett said the language was similar but the cost was considered. Mayor Cook asked if this was the lowest bid and Engineering Project Manager Peck confirmed this was the second lowest bid and comes in under the engineer's estimate of$117,000. Councilor Woodard moved to approve the contract as presented. Councilor Goodhouse seconded the motion and it passed unanimously. Yes No Council President Snider V Councilor Woodard ✓ Councilor Anderson V Mayor Cook V Councilor Goodhouse ✓ 9. CONSIDER RESOLUTION TO APPROVE A NEW TIGARD POLICE OFFICERS' ASSOCIATION CONTRACT FOR FISCAL YEARS 2017-2020 AND AUTHORIZE THE CITY MANAGER TO SIGN Human Resources Director Bennett and Senior Analyst Leos were present for the staff report. Ms. Bennett said they have been negotiating a contract on behalf of council with the police union and request adoption of a resolution approving a new contract. She briefly described the bargaining process. They began bargaining in January and were able to reach a tentative agreement in early June. The Tigard Police Officers'Association(TPOA) ratified the contract on June 13. Mayor Cook said he did not remember a contract being adopted prior to expiration in the recent past. Human Resources Director Bennett replied that this is the second time in her professional career that a contract was reached prior to expiration. Mayor Cook commended staff for meeting this deadline. Councilor Woodard complimented staff on their hard work. Councilor Goodhouse moved to approve Resolution No. 17-30. Council President Snider seconded the motion. City Recorder Krager read the number of title of the resolution. Resolution No. 17-30—A RESOLUTION ADOPTING A NEW COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF TIGARD POLICE OFFICERS'ASSOCIATION (TPOA)AND AUTHORIZING THE CITY MANAGER TO SIGN TIGARD CITY COUNCIL MINUTES—JUNE 27, 2017 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov Page 19 of 21 Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse V Mayor Cook announced that the motion passed unanimously. 10. CONSIDER COUNCIL TRAVEL POLICY City Manager Wine said council reviewed the policy in a workshop and asked questions about some potential changes. Staff researched some elements and talked with the Oregon Government Ethics Commission. She listed the three proposed changes: Changing the distance designation for local travel from 50 miles away to 40 and adding a statement regarding the applicable taxes on local overnight stays,expanding the definition of"conference hotel,"and deleting the section on travel time. Council President Snider made a motion to approve the council travel policy. Councilor Goodhouse seconded the motion. Mayor Cook conducted a vote and the motion passed unanimously. Yes No Council President Snider V Councilor Woodard V Councilor Anderson ✓ Mayor Cook V Councilor Goodhouse V 11. EXECUTIVE SESSION None. 12. NON AGENDA ITEMS None. 13. ADJOURNMENT Mayor Cook thanked Assistant City Manager Newton at this last meeting in her career for all the years of service she gave to the city. Councilor Woodard thanked her and said he appreciated her assistance when he first joined the council. He congratulated her on her retirement. Council President Snider noted that she was always working behind the scenes and people may not recognize her contributions. He said it was a pleasure to have her working for the citizens of Tigard. Councilor Goodhouse thanked Ms. Newton for all she has done and said she will be missed. Councilor Anderson said she made his transition to council easy. Ms. Newton said she loved her job and working with citizens. TIGARD CITY COUNCIL MINUTES —JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 I www.tigard-or.gov Page 20 of 21 Council President Snider moved to adjourn at 9:30 p.m. Councilor Anderson seconded the motion and all voted in favor. Yes No Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson V Mayor Cook V Councilor Goodhouse ✓ Carol A. Krager,City Recorder Attest: John L. Cook,Mayor TIGARD CITY COUNCIL MINUTES -JUNE 27, 2017 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 21 of 21 AIS-3254 3. B. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): Consent Item Agenda Title: Consider Authorizing the City Manager or a Designee to Sign an IGA with Washington County to administer the City Transient Lodging Tax Prepared For: Toby LaFrance, Finance and Information Services Submitted By: Steve Kang, Finance and Information Services Item Type: Motion Requested Meeting Type: Consent Agenda Public Hearing: No Publication Date: Information ISSUE Shall council authorize the city manager or a designee to sign an intergovernmental agreement (IGA) with Washington County to administer the City Transient Lodging Tax on the City's behalf? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends that council authorize the city manager or a designee to sign the agreement. KEY FACTS AND INFORMATION SUMMARY During the Budget Committee deliberations for the FY 2016-17 budget, the committee discussed a local transient lodging tax. The tax would be a General Fund revenue that could be used to support $40,000 for the Tigard Downtown Affiance in the FY 2016-17 Budget. The state of Oregon and its cities, counties and regional governments have the authority to impose and collect taxes on paid overnight stays at lodging properties such as hotels, motels, resorts, inns, bed & breakfasts or short-term home rentals. These taxes are known as transient lodging taxes (TLT) and are a combination of state and locally assessed taxes. As of July 1, 2016, there is a state-wide tax rate of 1.8 percent; this rate will reduce to 1.5% on July 1, 2020. In addition to the state wide tax, 15 counties and over 90 cities levy a local TLT. These local taxes range from 1 percent to 13.5 percent. The current Washington County's TLT in place is set at 9 percent. On August 8, 2017, the Tigard city council adopted the ordinance adding chapter 3.85 to the Tigard Municipal Code (TMC) to establish 2.5 percent tax on Transient Lodging in the City of Tigard. Some of the key points on the TMC 3.85 are; 1. Section 3.85.040, the Transient Lodging Provider shall collect a tax rate of 2.5% from the Occupant. 2. Section 3.85.080, all TLT collected by the provider are due on a monthly basis. 3. Section 3.85.160, every provider shall keep records of compliance and the records shall be retained for 3 years and 6 months after they are created. 4. Section 3.85.200, the city council may enter into an IGA with Washington County whereby the county is responsible for the administration, collection, distribution, and enforcement of the TLT. Based on the current projection, the 2.5 percent TLT tax is estimated to generate approximately $625,000 in additional revenue. As mentioned previously, at least 70 percent of any revenue generated by a net increase in the TLT rate would be required to be allocated for tourism promotion or tourism-related purposes. Recently, the City of Beaverton enacted a local city TLT of 4 percent and City of Hillsboro adopted a local city TLT of 3 percent. The Beaverton and Hillsboro TLT are also subject to the requirement that at least 70 percent of the revenue be spent on tourism related purposes. Beaverton's TLT is being collected and administered through an IGA with Washington County and Hillsboro is planning a similar IGA. The adopted ordinance No. 17-18 permits both collection by the city or by an IGA. Washington County already collects the county TLT and is willing to collect Tigard's TLT. The TLT collection by Washington County via IGA will reduce the city's cost to administer TLT collection and administration significantly. The IGA has been agreed to by the legal counsels from both the City and the County. Key terms of proposed IGA with Washington County: 1. Washington County to administer the City Transient Lodging Tax on the City's behalf. 2. The Parties intend that this Agreement operate in addition to, and not in lieu of, the existing intergovernmental TLT sharing agreement the Parties entered into in October 2006 regarding the county's 9 percent TLT. 3. The County may collect the City TLT pursuant to this Agreement and distribute the proceeds, less county reasonable costs (current projection is approximately $2,000 to $5,000 annually based on $625,000 revenue), to City. OTHER ALTERNATIVES Council could propose changes to the agreement or could decide not to authorize the city manager or a designee to sign the agreement. Should the council decide not to approve the agreement, the city's cost to administer TLT collection and administration will increase significantly. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION The city council adopted the ordinance, No. 17-18, creating the Transient Lodging Tax (TLT) in Tigard on 8/8/2017. Fiscal Impact Fiscal Information: Establishment of a local TLT in Tigard at a rate of 2.5 percent will add approximately $625,000 of revenue annually. Seventy percent of the revenue must be spent on tourism related purposes and the remaining thirty percent can be used for any new or existing General Fund purpose. Annual cost to administer TLT is projected to be $2,000 to $5,000 through IGA with Washington County, which will be deducted prior to the distribution. Attachments TLT IGA w WA County INTERGOVERNMENTAL AGREEMENT Transient Lodging Tax This Agreement is entered into by and between Washington County,a political subdivision of the State of Oregon ("County") and the City of Tigard, a municipal corporation ("City"). WHEREAS: 1. Washington County Code Chapter 3.08 is a County-wide tax on transient lodging("County transient lodging tax"); 2. Section 3.08.170 of the Washington County Code provides that County transient lodging tax proceeds collected within a city may be shared with the city,provided the city requests to participate and enters into an agreement with the County regarding transient lodging tax sharing; and 3. Per Ordinance 17-18, adding Chapter 3.85 to the Tigard Municipal Code,the City adopted a two and one-half percent (2.5%) local transient lodging tax ("City transient lodging tax") in addition to the County transient lodging tax; and 4. The City desires Washington County to administer the City transient lodging tax on the City's behalf; and 5. The parties desire to enter into this Agreement to implement the terms of Washington County Code Chapter 3.08 and administer Tigard Municipal Code Chapter 3.85 (collectively referred to as the "transient lodging taxes"); and 6. The City transient lodging tax is substantively modeled off of the County transient lodging tax to allow for administrative ease. NOW THEREFORE,the parties agree to the following: TERMS AND CONDITIONS: 1. City,in consideration of a shared allocation of County transient lodging tax collected within the City,hereby consents to the following: a. The administration and enforcement of the transient lodging taxes shall remain with Washington County,acting by and through its County Chief Financial Officer; b. The total amount of County transient lodging tax shall not exceed nine percent(9%) of the rent as provided in Section 3.08.080 of the County Code; and INTERGOVERNMENTAL AGREEMENT TRANSIENT LODGING TAX PAGE 2 c. The amount of the County transient lodging tax distributed to City shall be calculated as provided for in Section 3.08.170B of the County Code. d. The County shall collect the City transient lodging tax to the extent it is consistent with the County transient lodging tax and remit the proceeds,minus the cost provided for in Section 4 of this Agreement,to City. 2. The Parties intend that this Agreement operate in addition to,and not in lieu of, the intergovernmental tax sharing agreement the Parties entered into in October 2006.As between the Parties of this Agreement,paragraphs 1 and 2 of their 2006 tax sharing agreement is struck in its entirety and amended to read as follows: "1. The parties agree that: a. The administration and enforcement of the transient room tax shall remain with Washington County, acting by and through its Director of Support Services; b. The transient room tax rate imposed by the County within the City shall not exceed the amount provided in Section 3.08.080 of the County Code; and c. The amount distributed to the City shall be calculated as provided in Section 3.08.170 B. of the County Code." 2. County shall calculate the amount, if any, due to City in accordance with Section 3.08.170 B. of the County Code and shall distribute any amount due to City within 30 days of receipt of taxes." 3. County shall calculate the amount,if any,due to City in accordance with Section 3.08.170B and shall distribute any amount due to City within 30 days of receipt of the taxes. 4. The County may collect the City transient lodging tax pursuant to this Agreement and distribute the proceeds,less county reasonable costs (a minimum of.33% of the taxes allocated),to City. 5. Disputed Collections: a. The County shall implement, on the City's behalf,the provisions of the City Code establishing the City transient lodging tax, and shall pursue collection of all delinquent City transient lodging taxes through processes available under City Code,and may apply any funds initially collected to recover County's own demonstrable actual costs of collection, applying any remainder to delinquent City accounts. However, City shall be INTERGOVERNMENTAL AGREEMENT TRANSIENT LODGING TAX PAGE 3 responsible to defend any claim or litigation involving legal challenges to the City's transient lodging tax or any part thereof, or the use of the taxes by the City. b. The County shall process petitions for redetermination or appeals directed at City collections. Should the City receive a petition for redetermination,the request shall be forwarded to the County for processing under the redetermination and appeals procedures of the County Code.Any appeal to the City Council shall be forwarded to the County for processing under the administrative appeal procedures of the County Code. The City will transmit any petition or notice of appeal together with the file of the appealed matter to the County Chief Financial Officer within ten business days of receipt of the petition or notice of appeal. 6. County and City,by and through their respective Finance Officers,shall cooperate in ensuring that the transient lodging taxes are effectively and efficiently enforced within City.Each party shall give the other immediate written notice of any action or suit filed or any claim made against party that may result in litigation in any way related to this Agreement 7. This Agreement may be terminated by either Party upon 30 days'written notice. Any amounts due to City from County and/or City transient lodging taxes collected prior to the effective date of termination shall be paid within 30 days of termination. 8. Each Party shall comply with all applicable Federal,State and Local laws rules and regulations,including but not limited to,state transient lodging tax laws and administrative rules, and non-discrimination in employment because of race,color, ancestry, national origin,religion,sex, sexual orientation, marital status,age,medical condition or disability. 9. This writing is intended both as the final expression of the agreement between the Parties with respect to the included terms and as a complete and exclusive statement of the terms of the Agreement. All the aforementioned is hereby agreed upon by the parties and executed by the duly authorized signatures below. CITY OF TIGARD Address: 13125 SW Hall Blvd. Tigard. OR 97223 Signature Date Print Name Title INTERGOVERNMENTAL AGREEMENT TRANSIENT LODGING TAX PAGE 4 WASHINGTON COUNTY Address: 254 N.First Avenue Hillsboro, OR 97124 Signature Date Print Name Title AIS-3256 3. C. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): Consent Item Agenda Title: Consider Resolution Waiving Temporary Sign Permit Fees for Tigard Basketball Association Prepared For: Liz Lutz Submitted By: Liz Lutz, Finance and Information Services Item Type: Resolution Meeting Type: Consent Agenda Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Tigard City Council waive the temporary sign permit fees for the Tigard Basketball Association? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends council consider resolution waiving $192 of permit fees for Tigard Basketball Association. KEY FACTS AND INFORMATION SUMMARY On August 21, 2017, Clifford Rone from Tigard Basketball Association emailed the city to request a waiver of permit fees charged to hang three banners (text of email attached). According to the Master Fees and Charges Schedule, Temporary Sign Permits are $64 per sign. They are requesting the city waive fees for three signs, totaling a fee waiver of$192. The Tigard Municipal Code Section 3.32.070 authorizes council to waive fees for non-profits. The text of the TMC is as follows: 3.32.070 Exemptions. The City Council is authorized to waive or exempt the fee or charge imposed upon an application or for the use of city facilities and services, if a nonprofit organization requests such a waiver in writing and the council determines that community benefit for the proposed activity outweighs the financial burden on the city. The waiver or exemption shall not excuse the nonprofit organization from compliance with other requirements of this code. Tigard Basketball Association is a qualifying non-profit. They have made their request to waive fees in writing. If council determines that the benefit to the community outweighs the loss of$192 in permit fees, then council is authorized to waive the fees. OTHER ALTERNATIVES City Council could deny the request. COUNCIL OR CCDA GOALS, POLICIES, MASTER PLANS Shall the Tigard City Council waive the temporary sign permit fees for the Tigard Basketball Association? DATES OF PREVIOUS CONSIDERATION N/A Attachments Resolution Request Letter ..... ...u.. CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 17- A RESOLUTION WAIVING $192 IN TEMPORARY SIGN PERMIT FEES FOR TIGARD BASKETBALL ASSOCIATION. WHEREAS,Tigard Municipal Code 3.32.070 authorized City Council to waive fees for nonprofits when the request is made in writing and council determines that the community benefit outweighs the financial burden to the city;and WHEREAS,Tigard Basketball Association has requested in writing the waiver of fees for three temporary sign permits;and WHEREAS, the Master Fees and Charges Schedule states that the fee for temporary sign permits is $64 per sign for 30 days and WHEREAS,council determines that the community benefit outweighs the $192 financial burden to the city. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: Tigard Basketball Association receives a waiver of$192 in temporary sign permit fees. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2017 Mayor- City of Tigard ATTEST: Deputy City Recorder-City of Tigard RESOLUTION NO. 17- Page 1 Lizbeth Lutz From: Clifford Rone <croneoregon@gmail.com> Sent: Monday, August 21, 2017 7:34 PM To: Lizbeth Lutz Subject: Re:TBA fee waiver Liz, Here is our request for a fee waiver for three banners: Tigard Basketball Association is a 501(c)(3)organization that has served families in Tigard since the early'80's.We provide a recreational basketball program for boys and girls in grades 3 through 12.The organization is run by an all-volunteer board and has served over 640 boys and girls for each of the past few years.As part of our service to the community we have provided more than 40 scholarships each year for some time to kids who qualify for free and reduced lunches at school.More information about the organization can be found on our website at tigardbasketball.org. One of our few methods of reaching the community near registration time in early September is to hang banners on the School District fences.Under Tigard's sign code we have been required to pay a monthly fee to the City to do that,though the School District does not charge us.We hereby request a waiver for three banners for TBA this 2017-I8 season. Please let me know if you need additional information. Thank you, Clifford Rone TBA Board Member& Past President AIS-3220 4. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): 5 Minutes Agenda Title: Consider Resolution Appointing Committee for Community Engagement Members Prepared For: Rudy Owens, City Management Submitted By: Kelly Burgoyne, Central Services Item Type: Motion Requested Meeting Type: Council Resolution Business Meeting - Main Public Hearing: No Publication Date: Information ISSUE Should the Council approve a resolution appointing new members for the Committee for Community Engagement? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends that Council approve the appointment of three new members to the Committee for Community Engagement. KEY FACTS AND INFORMATION SUMMARY The Committee for Community Engagement (CCE) is charged with oversight, accountability and policy direction on program design for citywide community engagement activities. The CCE formed after City Council adopted new bylaws on May 9, 2017, for the former Neighborhood Involvement Committee (NIC). The genesis for the program change was born out of changes in Washington County's community participation structure—a well-timed opportunity to strengthen community engagement on all topics of community interest. Standing members of the NIC, prior to its name change to the CCE, were very excited for the new expanded role of their committee and enthusiastically voted to recommend adoption of the proposed bylaws at their meeting on April 19, 2017. The new bylaws for the CCE sets the maximum number of committee members at 15. Currently there are 12 members, who were grandfathered onto the committee under the new bylaws. The newly adopted bylaws also call for a diversity of membership, including by gender, geographic representation, age, language ability, and the participation of business owners, home owners, and renters. The bylaws also prioritized a membership slot for an official representative from CPO4B and 4M each, should qualified applicants apply, and a membership slot for a non-native English speaker, youth or business owner each should qualified applicants apply. The membership boundary for applicants is now the Tigard Urban Service Boundary. Applicants throughout the city and in the Tigard Urban Service Boundary area were recruited from mid-May through July 7, 2017. The bylaws were used as criteria in the final review of all applicants, all of whom were qualified to serve. Short biographies of the three recommended applicants are below: Thomas Lauritzen: Lauritzen lives in the Tigard Urban Service Area on Bull Mountain. He worked 26 years in law enforcement with the Washington County Sheriffs Department in the Patrol and Corrections Division, and then spent seven years Portland General Electric before retiring in 2010. Since his retirement, he has been active in his area. He was elected chairman of his homeowner's association, and in 2017 elected a commissioner of the Tigard Water Board. Lauritzen is also actively involved in CPO 4B (Bull Mountain) and is a founding member of the Nextdoor neighborhood group serving hundreds of homes in his area. He and his wife are avid walkers/hikers in the Bull Mountain area and Tigard. Yamini Naidu: Naidu grew up in Tigard and is a recent graduate in biomedical engineering from Yale University. She is currently working at Schrodinger, a Portland biotech firm. She previously served on the Mayor of Beaverton's Youth Advisory Board and Committee for Citizen Involvement. She has a strong interest in promoting engagement among Tigard's younger residents. She also serves as an alternate member of the Tigard Parks and Recreation Advisory Board. Christine Rehse: Rehse has lived in Tigard the last two years, and has lived in the Scholls area for a decade and a half. She is the branch manager for Washington Square U.S. Bank and has a background in finance and administration. She has a passion for community engagement, having lead fund-raisers for her employer and worked on numerous community projects. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS 2017-2018 City Council Goals: 1. Advance a Local Option Levy and Facilities Bond to Voters to Increase Resources and Space for Day-to-Day City Services, and; 4. Pursue Development of Light Rail Along the Southwest Corridor. Strategic Plan, Goal 3: Engage the community through dynamic communications. DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Resolution w. CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 17- A RESOLUTION APPOINTING THOMAS LAURITZEN,YAMINI NAIDU AND CHRISTINE REHSE TO THE COMMITTEE FOR COMMUNITY ENGAGEMENT,EACH FORA'TERM OF FOUR YEARS, EFFECTIVE SEPTEMBER 1,2017 THROUGH AUGUST 31,2021. WHEREAS,the newly adopted bylaws of the Committee for Community Engagement as of May 2017 call for appointing up to 15 members on the Committee for Community Engagement;and WHEREAS, the committee already had 12 standing members, leaving three vacancies to be filled by eligible applicants who reside, own property, own a business or work within the City of Tigard's Urban Services Boundary;and WHEREAS,Thomas Lauritzen,Yamini Naidu and Christine Rehse were interviewed by Mayor John Cook and committee liaison Councilor Marc Woodard on July 19, 2017, for the open positions on the Committee for Community Engagement. NOW,THEREFORE,BE IT RESOLYED by the Tigard City Council that: SECTION 1: Thomas Lauritizen is appointed to the Committee for Community Engagement as a Member for a four-year term, effective Sept. 1,2017 through August 31,2021;and SECTION 2: Yamini Naidu is appointed to the Committee for Community Engagement as a Member for a four-year term,effective Sept. 1,2017 through August 31,2021;and SECTION 3: Christine Rehse is appointed to the Committee for Community Engagement as a Member for a four-year term, effective Sept. 1,2017 through August 31,2021;and SECTION 7: This resolution is effective immediately upon passage. PASSED: This day of 2017. Mayor-City of Tigard ATTEST: City Recorder-City of Tigard RESOLUTION NO. 17- Page 1 AIS-3154 5. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): 30 Minutes Agenda Title: Discussion of Mobile Food Carts Policy Submitted By: Kelly Burgoyne, Central Services Item Type: Update, Discussion, Direct Meeting Type: Council Staff Workshop Mtg. Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Discuss City's policy on mobile food carts on private property. STAFF RECOMMENDATION / ACTION REQUEST This is a discussion item, no action is requested. KEY FACTS AND INFORMATION SUMMARY Mobile food carts have been a growing trend both nationally and in the Portland region. In 2015, in response to inquiries from local food entrepreneurs, Tigard staff undertook a review of the Tigard Development Code to determine applicable regulations for mobile food carts. Staff determined that under existing code language mobile food carts were permissible on private property, subject to parameters. This code interpretation was summarized in a handout which was posted on the city website. The parameters for mobile food carts are: •It must meet the Oregon Revised Statute definition for a trailer or vehicle. A cart meets one of these definitions if it is designed and licensed to be driven under its own power or pulled by another vehicle on a public road. •It must meet the Tigard definition for an eating establishment and may be located on any property that is zoned to allow this use. •Must be located on a paved surface. •Must be located on a property with an existing building (vacant or occupied) or an existing use so that the existence of the cart does not create a de facto standalone parking lot. •Must meet the applicable setback standard of the zone in which it is located. •Must not obstruct or otherwise make unsafe any areas designed for pedestrian or vehicle movement to, from, or through the property on which the cart is located. •If the cart is located in a required parking space(s) for any existing use, a replacement space that meets the city's parking standards must be provided for each space used. •A mobile food cart may have signage subject to the city's sign regulations. •The food cart business must have a City of Tigard business license and a Washington County Health License. Since the interpretation, three properties have hosted food carts in downtown Tigard: Sherrie's Jewelry Box has had one since early June, the Tigard Taphouse has had several different carts since it opened in September 2016, and Tigard City Hall currently hosts a coffee cart once a week, and had several food trucks make lunchtime visits in 2016. In May 2017, three downtown restaurant owners met with Mayor Cook and city staff to express strong concerns with the policy. At the meeting Mayor Cook offered to hold a City Council workshop to discuss Tigard's food cart policy. The following points can help inform the discussion: Concerns expressed about food carts by Downtown stakeholders: Food trucks with lower costs and fewer regulations can undercut the prices of brick and mortar restaurants. Downtown Tigard does not have enough customers to support an influx of food trucks. Food carts can have offsite impacts: noise, visual clutter, etc. Benefits of food carts expressed by Downtown stakeholders: The presence of multiple food options makes a business district a food and beverage destination, attracting new customers. They are opportunities for local food entrepreneurship for the food cart owner and provide supplemental income for property owners. Mobile food carts support Tigard's Strategic Plan Goal for walkability. OTHER ALTERNATIVES This is a discussion item, no alternatives to consider. COUNCIL OR CCDA GOALS, POLICIES, MASTER PLANS Tigard Strategic Plan Goal 2: Ensure development advances the vision. Tigard Comprehensive Plan Economic Development Goal 9.1: Develop and maintain a strong, diversified, and sustainable local economy. Tigard Comprehensive Plan Special Planning Areas: Downtown, Goal 15.1: The City will promote the creation of a vibrant and active urban village at the heart of the community that is pedestrian oriented, accessible by many modes of transportation, recognizes natural resources as an asset, and features a combination of uses that enable people to live, work, play, and shop in an environment that is uniquely Tigard. DATES OF PREVIOUS CONSIDERATION This is the first time the topic has been discussed as a Council agenda item. Attachments Food Cart Summary :71 . II City of Tigard TIGARD Mobile Food Carts on Private Property This handout describes where mobile food carts are allowed on private property in Tigard based on current city policy. Food carts on public property (e.g. sidewalks, streets, parks, etc.) are subject to different rules. Contact Dylan Bemis, Economic Development Coordinator, at DylanB(a,tigard- or.gov 503-718-2560 for assistance with operating a food cart on public property. FOOD CART DESIGN A mobile food cart must meet the Oregon Revised Statute definition for a trailer or vehicle.' A cart meets one of these definitions if it is designed and licensed to be driven under its own power or pulled by another vehicle on a public road. The following design requirements also apply: ❑ The cart must have wheels and the wheels must not be removed. ❑ The cart must not require any plumbing or electrical connections that require permits. ❑ Any canopies, awnings, or other attachments on the cart must be entirely supported by the cart and not touch the ground. A cart that meets the design requirements described above shall be considered a vehicle, and not a structure, for development review and permitting purposes. A cart that does not meet all of these requirements shall be considered a structure and is subject to all applicable land use approvals, design reviews, and permits. FOOD CART LOCATION2 A mobile food cart must meet the Tigard411111 definition for an eating establishment3 and may be located on any property that is zoned to allow this use.4 See map inset. ,4116. Food carts may be located on any of the properties shaded in grey. A more - WAIL detailed zoning map can be found here: http://www.tigardmaps.com/Map GalleryPDFs/d planning/a zonin P I g/zoning1117.pdf 1 See Oregon Revised Statute Sections 801.560 and 801.590 for definitions. 2 More than one food cart per property is allowed provided each one meets the design and location requirements. 3 See Tigard Community Development Code (TCDC) Subsection 18.130.060.F for definition. 4 Eating establishments are allowed as primary, accessory or limited uses in the following zones: C-C, C-G, C-P, MU-CBD, MUE, MUC, MUC-1, MUE-1, MUE-2, MUR-1, MUR-2 and I-P. FOOD CART LOCATION (continued) The following location requirements also apply: ❑ The cart must be located on a paved surface. ❑ The cart must be located on a property with an existing building (vacant or occupied) or an existing use so that the existence of the cart does not create a de facto standalone parking lot. ❑ The cart must meet the applicable setback standard of the zone in which it is located. ❑ The cart must not obstruct or otherwise make unsafe any areas designed for pedestrian or vehicle movement to, from, or through the property on which the cart is located. ❑ If the cart is located in a required parking space(s) for any existing use, a replacement space that meets the city's parking standards must be provided for each space used.5 FOOD CART SIGNAGE A mobile food cart may have signage subject to the city's sign regulations.6 Some signs require permits. A sign permit application can be obtained from the Tigard Permit Center at 13125 SW Hall Blvd. Application and general permit information can also be found here: http://www.tigard- or.gov/city hall/online permit counter.php. Signs in the public right-of-way, such as on public sidewalks and landscape strips, are not allowed under any circumstance. FOOD CART APPROVAL PROCESS 1. Determine that your cart meets the design and location requirements as described in this handout. Contact the Tigard Planner on Duty at tigardplanneronduty@tigard-or.gov or 503-718-2421 for assistance. 2. Obtain a Washington County Health License to operate your food cart in Tigard. Contact Washington County Department of Health and Human Services at 503-846-8722 for assistance or visit their webpage on mobile food units, i.e. food carts, at: http://www.co.washington.or.us/HHS/EnvironmentalHealth/FoodSafety/Business/mobile- food-units.cfm. 3. Obtain a Tigard Business License to operate your food cart in Tigard. Obtain a business license application from Tigard City Hall at 13125 SW Hall Blvd. Application and general license information can also be found here: http://www.tigard- or.gov/business/business licenses.php. The city s current policies can be found in the Tigard Community Development Code, which is located here: htp //www.tigard-orgov/business/title 1 8.php. 5 See TCDC Chapter 18.765 for parking information. 6 See TCDC Chapter 18.780 for sign information. AGENDA ITEM NO. 5 —DISCUSSION ON MOBILE FOOD CART'S POLICY DATE: September 5, 2017 (Limited to 2 minutes or less,please) This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony becomes part of the public record. The names and addresses ofpersons 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 Mobile Food Cart's Policy STAFF Please Print CONTACTED Name: (r1 i ke, m1 II€4'r Ti ja-r t Also,please spell your name as it sounds,if it will � "� n - � help the presiding officer pronounce: p c-� et°6c- Address cfa30 3 v rn ha-14,1 0. City -T-1 Cr a-r- State �� Zip 7 ad 3 Phone No. /V/14 Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. CITIZEN COMMUNICATION I:\ADM\CITY RECORDERS\000 City Recorder-Records Resources and Policies\CCSignup\Agenda Item 5-Sign-up Sheet 170905.doc AIS-3222 6. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): 20 Minutes Agenda Title: Downtown Urban Lofts Project report Submitted By: Sean Farrelly, Community Development Item Type: Resolution Meeting Type: City Center Update, Discussion, Direct Staff Development Agency Public Hearing: No Publication Date: Information ISSUE The Board of the CCDA is requested to consider a resolution accepting the Tigard Urban Lofts Financial Analysis and Implementation Strategies report, funded by a Metro Community Planning and Development Grant. STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of the resolution. KEY FACTS AND INFORMATION SUMMARY In 2015, the Tigard City Center Development Agency was awarded a Metro Community Planning and Development Grant (CPDG) for the Downtown Tigard Urban Lofts Development project. The goal of this project was to complete pre-development feasibility work for a mixed use/affordable housing development on two adjacent downtown properties: a 0.45 acre privately owned site fronting Main Street (the "Nicoli site") and the 0.81 acre Tigard Transit Center property owned by TriMet. The first task of the project was to collaborate with TriMet on developing a reconfiguration plan for the Tigard Transit Center, which could be necessary with the SW Corridor light rail project. One of the potential reconfigurations was to move the Transit Center to a location adjacent to the light rail station on the Ash Avenue alignment. The project team decided to study two additional sites that could be built on remnant parcels that would potentially result from the construction of the Ash Avenue alignment. A real estate market consultant and architect team made up of Johnson Economics and SERA Architects studied three sites, which are discussed in the attached Tigard Urban Lofts Financial Analysis and Implementation Strategies Report: Site A: the "Nicoli" site and part of the Tigard Transit Center site (0.54 acres) Site B: a site northwest of the potential light rail station (0.57 acres) Site C: a site southwest of the potential light rail station (0.65 acres) The concepts were designed to be dense transit oriented mixed-use development. All of the concepts assumed a 5 story building (4 stories of wood over a concrete podium.) The conceptual site plans are summarized below: Site A Site B Site C Housing Units ,50 56 72 Density (units/acre) 92.8 98.2 111.3 Residential Parking 27 `45 44 Parking ratio 0.5 0.8 0.6 Leasable Commercial 4,200 s.f. 22,281 s.f. 1,902, s.f. space The concepts diverged from Tigard's current development code by having higher density and fewer parking spaces than is allowed. This was done to maximize the number of residential units and allow a more transit supportive design. A financial analysis found that the concepts, assuming market rate housing, had financial gaps ranging from 22% to 29% (that is, the income generated by the project did not support the costs to build the project.) The gap was able to be reduced in the pro forma, but not eliminated, by applying the Vertical Housing Development Tax Credit, SDC reduction, and land costs write down. One promising avenue for a feasible project on the sites is affordable housing. Financing affordable housing is complex and challenging, however affordable housing projects have the ability to tap into other sources of equity and financing for development, and affordable rents are not expected to provide a market-level return on investment. Affordable housing is also desirable on these sites due to the potential impact that the SW Corridor project could have on existing "naturally occurring" affordable housing residents in downtown. Some residents could be physically displaced by the construction of the project. Residents could also be priced out of the area due to the rising rents that often accompanying the opening of light rail service. New permanently designated affordable housing would help mitigate these impacts as well as address the national affordable housing shortage. City staff are currently working on a Metro Equitable Housing grant funded project that will result in further affordable housing predevelopment work on a downtown site. OTHER ALTERNATIVES The Board of the CCDA could decide to revise or not to adopt the proposed resolution. Board acceptance of the final report is a milestone for the Community Planning and Development Grant. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Tigard City Council 2017-19 Goals and Milestones Goal #3. Make Downtown Tigard a Place Where People Want to Be •Make Downtown Tigard a livable community with something to offer residents 18 hours a day, 7 days a week; develop housing units within Downtown. Issues for Further Council Discussion and Policy Direction •Affordable Housing: Consider additional program or policy initiatives. Tigard Comprehensive Plan Special Planning Areas - Downtown Goal 15.2 Facilitate the development of an urban village. Tigard Strategic Plan Goal 2: Ensure development advances the vision. City Center Urban Renewal Plan Goal 5: Promote high quality development of retail, office and residential uses that support and are supported by public streetscape, transportation, recreation, and open space investments. Tigard Downtown Improvement Plan Downtown Housing Development Catalyst Project. DATES OF PREVIOUS COUNCIL CONSIDERATION September 6, 2016: Update on Downtown Urban Lofts Project. March 1, 2016: IGA with Metro for Downtown Grant Award. February 23, 2016: Review of draft IGA documents. Attachments CCDA Resolution Exhibit A CITY OF TIGARD, OREGON CITY CENTER DEVELOPMENT AGENCY RESOLUTION NO. 17- A RESOLUTION ACCEPTING THE DOWNTOWN TIGARD URBAN LOFTS PROJECT FINANCIAL ANALYSIS AND IMPLEMENTATION STRATEGIES REPORT WHEREAS, the City Center Development Agency was awarded a Community Planning and Development Grant by Metro for the Downtown Tigard Urban Lofts Project;and WHEREAS, the final report produced with grant funding, the Downtown Tigard Urban Lofts Project Financial Analysis and Implementation Strategies, contains recommended strategies and potential public participation and funding sources to facilitate new transit oriented housing on three specific sites and in Tigard's urban renewal districts in general; and WHEREAS, approval of this resolution will not directly change any city or agency policies,but will inform future discussions and actions. NOW,THEREFORE, BE IT RESOLVED, by the Tigard City Center Development Agency that: SECTION 1: The Board of the City Center Development Agency hereby accepts the Downtown Tigard Urban Lofts Project Financial Analysis and Implementation Strategies report (Exhibit A) to inform future planning activities in Tigard's urban renewal districts. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of ,2017. Chair—City of Tigard City Center Development Agency ATTEST: Recorder— City of Tigard City Center Development Agency CCDA Resolution No. 17- Page 1 Attachment A TIGARD URBAN LOFTS DEVELOPMENT OPPORTUNITY STUDY 3 it` = —_--- ,.: .. --- _ 318 .."'.". -."'"' ----lit _ _ ,- _ _ _ - SERA Architects FINANCIAL ANALYSIS & IMPLEMENTATION STRATEGIES Prepared for City of Tigard April 2017 ffir,IN I 7. SERA _� JOHNSON H&A CONSTRUCTION ECONOMICS COMPANY JOHNSON ECONOMICS LLC—621 SW Alder Street,Ste.605 Portland,OR 97232—503-295-7832 ;■ CONTENTS I. INTRODUCTION 3 II. SUBJECT SITES 3 III. CONCEPTUAL SITE PLANS 6 CONCEPT COMPARISONS 10 IV. FINANCIAL ANALYSIS 10 A. METHODOLOGY 10 B. COST ESTIMATES 12 C. FINANCIAL PERFORMANCE 13 D. COST CONSIDERATIONS 14 E. ALTERNATIVE COST/SUBSIDY SCENARIOS 15 V. FINANCING AND IMPLEMENTATION STRATEGIES 18 A. GENERAL STRATEGIES AND CONSIDERATIONS 18 B. PUBLIC PARTICIPATION AND FUNDING SOURCES 20 APPENDICES APPENDIX A—CONCEPTUAL DESIGNS APPENDIX B — PRO FORMA FINANCIAL ANALYSIS APPENDIX C— DETAILED COST ESTIMATES APPENDIX D —MARKET ANALYSIS REPORT JOHNSON ECONOMICS LLC—621 SW Alder Street,Ste. 605 Portland, OR 97232—503-295-7832 ,;■ I. INTRODUCTION This report and its appendices present the findings of the Tigard Urban Lofts Development Study project. This report summarizes the final design concepts, financial feasibility analysis, and strategies and tools for moving forward. Appendices to this report provide the full design package, pro forma analysis tables, and full market analysis report. JOHNSON ECONOMICS was retained to prepare analysis of three development opportunity sites in Downtown Tigard, based on design work from SERA Architects, and construction costing provided by H&A Construction. The project was undertaken in collaboration with representatives from the City of Tigard, TriMet, Metro and Community Partners for Affordable Housing. This project was funded by a Community Planning and Development Planning Grant from Metro. II. SUBJECT SITES This development opportunity study considered the potential of three sites in the Downtown Tigard area to support transit-oriented development (TOD) in the future. Given the existing and potential transit improvements in the area, the centrality of the neighborhood, and the community's vision, it is prudent to plan for increased density and TOD building forms in the Downtown. FIGURE 2.1:SUBJECT SITES,DOWNTOWN TIGARD r .7' 40,17 , '§`,5,,4. _ _0'. ♦ . ., \\r. ' ' ,ts,', ' e A N - .' ;%‘ -•` . .. k 5 1 iy 4 .e ' x . , 7.4 , i 4.*4 "ice N. ` - .t;, A. ` tr 1 D44 44, I .. .4 ♦ . ., �, ♦ / .' , ly `I • ro I ♦ 100, --fid/ •♦ I, t♦ \\1111.)16., . s e I 4 <, ' 1k r .r _ . _ f Source: Google Earth,Johnson Economics CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 3 ,iEr Figure 2.1 presents the three sites studied in this project. They have been labeled Sites A, B, and C. Each of these sites is adjacent to potential future TriMet transit center improvements, including possible locations for a future MAX light rail station. Figure 2.2 summarizes basic characteristics of the three sites, and current zoning requirements. All sites are located within the Mixed Use Central Business District zone, and within the Downtown Plan District. Site A is located in the Main-Center sub-area, while Sites B and C are located in the Scoffins-Commercial sub-area. FIGURE 2.2:SUBJECT LOCATION SITES PERMITTED RES.DENSITY REQ.RES.PARKING Max Units Units Parking Min Address Acres Sq.Ft. Plan Area per Acre Permitted Ratio Parking Site A 12260 SW Main St./ 0.54 23,480 Main-Ctr 50 27 1.0 27 8960 SW Commercial Site B 8845&8861 SW 0.57 24,850 Scoffins-Com. 80 46 1.0 46 Commercial Site C 8775 SW Commercial 0.65 28,171 Scoffins-Com. 80 52 1.0 52 Source: City of Tigard,Metro RLIS,Johnson Economics The conceptual development designs discussed in this report vary from current zoning requirements in key ways, as discussed more in the next section. This was done in order to test designs that exemplify good transit-oriented development principles, maximize housing, and provide a catalyst for future development in the district. Location The subject sites are located within a quarter mile, or a few blocks, of each other in Downtown Tigard (Figure 2.3). Because of the close proximity, these sites do have many similarities in terms of opportunities and challenges for development. This area has been the focus of intensive community planning and investment. The city's traditional Main Street and the surrounding area are redeveloping over time with a strong emphasis on walkability, full mix of uses, increased household density, and new development forms. The central location is within roughly 1.5 miles or less of the remainder of the city. Central Beaverton is located roughly 5 miles to the northwest, and central Portland is 10 miles to the north. (The appended Market Analysis includes a full discussion of the strengths and weaknesses of the site locations, and the market viability of prospective land uses. These considerations were taken into account in determining the development programs for the three conceptual designs.) CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 4 FIGURE 2.3:SUBJECT LOCATION 217 Beaverton Ij 99 Tigard Study Sites k<,' Lake Oswego King City A D urha rri 2 Miles Source: RLIS,Johnson Economics CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 5 III. CONCEPTUAL SITE PLANS This project produced three development concepts (one for each site) prepared by SERA Architects. The concepts include a site plan, development program, and conceptual building elevations. Massing diagrams were also prepared for Site A. The concepts are summarized below, and presented in full in Appendix A. FIGURE 3.1:CONCEPTUAL SITE PLANS Site A Site B Site C Total Building Size (s.f.): 63,633 57,345 80,026 Construction: 5 floors 5 floors 5 floors Type V(wood),over Type V(wood),over Type V(wood),over Type I (concrete) Type I (concrete) Type I (concrete) Building Height (ft.): 55 52 52 RENTAL HOUSING Housing Units: 50 56 72 Density(units/acre): 92.8 98.2 111.3 Leasable Res.Space (s.f): 42,067 46,300 65,992 Residential Parking: 27 45 44 Parking Ratio: 0.5 0.8 0.6 RETAIL SPACE Leasable Retail Space (s.f.): 4,200 2,281 1,902 Retail Parking: 6 6 5 Parking Stalls/1,000 s.f.: 1.4 2.6 2.6 Source: SERA Architects,Johnson Economics In keeping with the goals of this project, the concepts are designed to represent dense transit-oriented development, with an emphasis on rental housing over ground-floor commercial space. They are intended to serve as pioneering examples of dense, more urban forms in Downtown Tigard and catalysts for future mixed-use development in the area. In general, these concepts deviate from current zoning requirements in two key ways: they exceed the currently permitted residential density in these planning sub-areas, and they do not meet the required residential parking ratio of 1.0 parking space/unit. These variations were included by design, based on discussions of preliminary findings and project goals with staff. Increased residential density and reduced parking ratios are key design goals of successful transit-oriented development, which aims to bring more households within walking distance of transit and mixed use amenities, while reducing dependence on cars. A sample of the designs are presented below. Please see Appendix A for the full design package. CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 6 ...le Slor I r FIGURE 3.2:SITE A CONCEPT t t x...•--.., ,_ ,-- ...its 1 ,,,,, „.,,,,It , ...... t tr '14 14 . ..s, .... ell ' '' OP, 0 . -,. 1 i 1,... 1-: lit s ... -t- It 1 f,. ---...._ ...,;:t. ..;.......„„ - _ ... v#00. -.......i D 4 4 Site A Massing Diagram—View towards South , - - - - I i 1 i i BICYCLE LT SPACE pus —I RESIDENTIAL NAW ao et TRIVET RETAIL Loeay FACILITIES 42X,. -42X,. Z:3. STAR SF - , STAR I I, I- I 1 — ————— 11111111111•211—....").. ' ---- ---- E)BUILDING , Site A—Site Plan 2-2-r iirn I 3F••:. i :r•- t 1 :r--• , TWO TWO. IWO TWO TWO THREE BEDROOM- BEDROOM' BEDROOM! BEDROOM BEDROOM TAf0 BATH TWO BA , IWO BA TWO TWO BATH I31S SF = ' I SNOW RIF ICINSF s TAmi _.,.... ...—., lt•SF ' - STAIR THREE "9:SF ONE ONE ONE ONE ONE ONE ONE OPE BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM SES S. Se-S. E5SF S-3 S. •r I r r 1 :-.:E. 1 r r 1 = r 1 :17 F' 1 1-. r t Site A—Upper Residential Floor Source: SERA Architects CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 7 ,t■ FIGURE 3.3:SITE B CONCEPT . i � na 3. It - RESIDENTIAL 'EIAF,.N- RESIDENTIAL RESIDENTIAL RETAIL ..- Ii/E, AMENITY LOBBY Site B Longitudinal Section Diagram—View towards NE I I 1 — ! STAIR BICYCLE PARKING/ STAIF a '. sF AMENITY RESIDENTIAL RETAIL ' 1SM lf LOBBY ,..F 1 I I_'_,_- -— — - Site B—Site Plan THREE ONE ONE ONE ONE ONE ONE THREE BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM .195V 6E3 S. 5E3 S. 653 S. 6E3 S. 653 SF 5_3 8= i.9:•8F r k .y, TY�(I TiMD TWO ONE STAR'" -' t r ° ■ _ ' Two STAIR! BEDROOM MS , 1 BA t: _7 17/10 BATF„ •BATH_<- 1 zz7SF ;IBi8F . S SF 991IF 366S€ —I I I - .1 I I 1 Site B—Upper Residential Floor Source: SERA Architects CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 8 ..1 I FIGURE 3.4:SITE C CONCEPT RESIDENTIAL TOWNHOMES PUBLIC RETAIL RESIDENTIAL .. -- ',1 SPACE LOBBY Site C Longitudinal Section Diagram—View towards NE —I I 4 1 i 3,131037804 I, STAIR --I-co, .,„,--, AIR 1 q,a,,, -'''.--',' -1'4-4--- RESDENT1AL J • LOBBY ZVI"r PUBLIC RETPJL SPACE 191:EF 02 IF ---- - 1111111.1't PROPOSEDIBUS PULLOUT}_- —"'" llIllIlllMll 1 __ ..., . .. . .... . .. . .. . _ . . Site C—Site Plan 1 1 , ONE - .. TWO ONE BEDROOM —•"" - BEDROOM-H BEDROOM I BATTWO BARI 722 SF SISS SF 1,5SSF ONE BEDROOM BEDROOM - ow Two STAIR BEDROOM- '''' '''- ONE ONE -' 31 SF am BEDROOM BEDROOM 479 tIF "1:'SF ' 1 TWO ONE ONE III - T.'1•1 I - BEDROOM- BEDROOM BEDROOM i , l BATH TWO BATH "3.SF "1,SF ' 7t - SF 11481F — I 1 I I- I I I I Site C—Upper Residential Floor Source: SERA Architects CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 9 ut CONCEPT COMPARISONS The concepts developed for the three sites are similar in some ways but differ in others. ■ All designs call for four floors of wood-framed residential uses, over ground floor uses under a concrete podium (Type V construction over Type I). ■ The ground floor uses are a mixture of retail commercial space and common area uses for the residences above. ■ All concepts include some parking underneath the concrete podium, combined with some uncovered surface parking. All concepts include a driveway/lane under the podium to provide access to the parking. ■ All concepts include a six-foot set back over the third floor, as required by code. ■ The space provided by the setback, combined with balconies and rooftop access/amenity for residents, meets the code requirements for open space and landscaping on the sites. ■ The concepts all include a mixture of one bedroom units, two bedroom units, and three bedroom units. All of these units are located on upper floors. Site C also includes four-bedroom townhome and/or live/work units with direct access from SW Commercial Street. ■ Site A accommodates the fewest residential units at 50, while Site B accommodates 56 units. Site C allows for the largest development, with 72 total units. ■ Site A and C are determined to need minimal site work, while Site B would require a greater level of excavation. IV. FINANCIAL ANALYSIS Each of the three concepts was evaluated using pro forma and cash flow analysis to assess the financial feasibility any potential viability gap that exists between the cost and expected return. This section presents the methodology and basic assumptions used in this analysis and presents the findings. Detailed pro forma sheets, and cost estimates, are presented in Appendices B & C. A. METHODOLOGY Each development and individual components were evaluated using a ten-year cash flow, with a reversion value at the end of the period.1 The scenarios assumed fee simple ownership of the property by the developer and conventional financing. Planning level estimates of construction costs were provided by H&A Construction based in Tigard. The numbers assumed by developers may vary substantially, depending upon variations in design and finish quality. H&A Construction presented a range of potential costs ranging from low to high. The pro forma 1 An estimated sales price at the end of the period. CITY OF TIGARD j URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 10 1;■ All I analysis presented here used the per-square-foot cost estimates from the low end of the spectrum. Soft cost and contingency costs equal 30%of hard costs. The estimated current land value of the sites was determined from a City-provided appraisal (1/31/2017) for Site A. And estimated real market value (RMV) of the Washington County Assessor's office for Sites B and C. While RMV was used as a proxy for acquisition cost in this analysis, the actual cost to acquire the sties may vary. Financial assumptions were made with respect to lending terms. As with other market-based assumptions, these reflect the current and near-term market trends and are likely to change over longer time frames. The following is a brief summary of financial assumptions common through this analysis: FIGURE 4.1: FINANCIAL ASSUMPTIONS Variable Assumption Capitalization Rate (Residential): 5.0% Capitalization Rate (Commercial): 7.0% Minimum Debt Coverage Ratio 1.25 Loan to Value Ratio Max 80% Construction Loan Interest Rate 5% Permanent Loan Interest Rate 5% Threshold Return on Cost: 6.3% Source: Johnson Economics Income and sales assumptions were based upon the professional opinion of JOHNSON ECONOMICS, reflecting surveys of properties in the market area. These assumptions necessarily assume a fairly generic product. These included the following: FIGURE 4.2:INCOME ASSUMPTIONS Product Type Income Assumption Rental Apartments Mo. Rent Rent/s.f.* One bed/one bath $1,300 $1.90 Two bed/one bath $1,500 $1.80 Two bed/two bath $1,800 $1.71 Three bed/two bath $2,100 $1.66 Four bed/two bath townhome $2,500 $1.09 Average*: $1,566 $1.70 Retail Lease Rates(NNN,Annual): $18/s.f *Average rents differs somewhat among the sites due to differences in the average size of each unit type. Source: Johnson Economics CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 11 ,lig While we feel that these numbers are appropriate baseline assumptions, developers evaluating project feasibility may vary in their assumptions, which would either increase or decrease the perceived viability of the project. The analysis assumed threshold requirements in terms of a minimum return necessary for market rate development to occur. Return on Cost is defined as the net operating income (N01) during the first stabilized year divided by the total project cost. The yield that an individual developer or investor may be willing to accept can vary significantly, and these measures should be viewed as guidelines. B. COST ESTIMATES Preliminary cost estimates were developed based on the conceptual site plans. These planning-level cost estimates reflect the detail available in the development concepts, and were used to as the cost assumptions for the pro forma financial analysis. Figure 4.3 presents the estimated cost range for each site, from least cost to highest cost. The greatest factors influencing eventual building cost will be the quality of materials and finishes applied to the building, and also the availability of labor and whether the current trend of escalating labor cost continues. (NOTE: JOHNSON ECONOMICS has altered the cost estimates prepared by H & A Construction in two key ways: The original estimates included two contingencies allowances of 10% each, one on hard costs, and one on the project total, including hard costs. This has been replaced with a single 10% contingency rate, now included in soft costs. In addition, the original estimates included placeholder estimates for the cost of system development charges (SDC's) for these projects. These have been replaced with more accurate, higher estimates of SDC's. These changes are reflected in the pro forma analysis. The cost estimates found in the appendix present the full unrevised cost estimates of H &A Construction.) FIGURE 4.3:COST ESTIMATES,CONCEPTUAL DESIGNS AT SUBJECT SITES SITE Site A Site B Site C Est.Acquisition $750,000 Est.Acquisition $1,250,000 Est.Acquisition $1,350,000 Least Highest Least Highest Least Highest Cost Cost Cost Cost Cost Cost Floors lthru 5 $ 9,379,690 $ 10,639,869 $ 8,818,935 $ 9,953,695 $ 12,575,670 $ 14,198,440 Sitework $ 699,200 $ 981,920 $ 707,034 $ 993,396 $ 834,476 $ 1,133,797 General Conditions $ 1,034,240 $ 1,292,800 $ 1,034,240 $ 1,292,800 $ 1,034,240 $ 1,292,800 Subtotal $ 11,113,130 $ 12,914,589 $ 10,560,209 $ 12,239,891 $ 14,444,386 $ 16,625,037 Mark Ups/Contingencies/Ins. $ 822,344 $ 983,333 $ 790,393 $ 942,513 $ 1,025,385 $ 1,207,815 Building Construction Subtotal $ 11,935,474 $ 13,897,922 $ 11,350,602 $ 13,182,404 $ 15,469,771 $ 17,832,851 Developer Soft Costs $ 3,580,642 $ 4,169,376 $ 3,405,180 $ 3,954,721 $ 3,867,443 $ 4,458,213 System Development Fees $ 591,936 $ 533,062 $ 723,482 $ 668,528 $ 903,907 $ 833,014 Project Total(no off site work) $ 16,108,052 $ 18,600,360 $ 15,479,264 $ 17,805,654 I $ 20,241,120 $ 23,124,078 Source: H&A Construction,Johnson Economics • This analysis applies the least cost estimate. Given the achievable rent levels in this market area, rental housing is not assumed to be built to the luxury level. Either market rate or affordable housing can aim for cost savings while providing a quality development. CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 12 ``"Iv • The Site B concept features the lowest estimated costs, while providing more units than Site A (56 vs. 50). This is because the Site B concept is the most compact and efficient of the designs. • The Site C concept has the highest estimated costs but is also the largest development. The estimated cost is comparable on a per-unit basis, and slightly lower on a per-square-foot basis. • Some of the major factors impacting the estimated costs of these concepts are discussed in more detail in the following section of this report. • See the appendix for detailed cost estimate data. C. FINANCIAL PERFORMANCE JOHNSON ECONOMICS performed pro forma analysis including 10-year cash flow analysis on the conceptual site plans, based on a number of market-based and cost assumptions as discussed above. The initial analysis assumed that the project would offer market-rate (i.e. not subsidized) rental units using the "least cost" estimate of development costs. Based on these assumptions, none of the concepts are estimated to achieve a market value equal to the cost to build them (Figure 4.4). FIGURE 4.4:FINANCIAL PERFORMANCE&FEASIBILITY MEASURES CONCEPTUAL DESIGNS AT SUBJECT SITES(MARKET RATE, FULL COST) Site A Site B Site C Land Cost: $750,000 $1,250,000 $1,350,000 Construction Cost: $11,935,474 $11,350,602 $15,469,771 Soft Costs: $3,580,642 $3,405,180 $3,867,443 System Development Fees: $591,936 $723,482 $903,907 Project Total: $16,858,052 $16,729,264 $21,591,120 Cost/s.f.: $271 $270 $253 Resid. cost/unit: $300,897 $265,421 $274,445 Estimated Project Value: $13,856,545 $14,892,842 $19,338,200 Value/Cost: 82% 89% 90% Target Return on Cost: 6.3% 6.2% 6.2% Actual Return on Cost: 4.5% 4.8% 4.8% Estimated Viability Gap: $4,808,883 $3,778,966 $4,775,294 Gap as%of Cost: 29% 23% 22% Source: Johnson Economics,H&A Construction • As a market-rate development, each is faced with a probable "viability gap" between the cost of development and the targeted return on the investment. CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 13 S411, • The estimated project value is derived from the achievable net operating income and assumed cap rate. In short, the amount of rental revenue these buildings could generate from the programmed uses is not yet high enough to justify the high cost of construction. • The gap differs from concept to concept (as a percentage of cost) from 22%for Site C to 29%for Site A. There are a variety of measures which might help reduce or close this gap, which are discussed more below. D. COST CONSIDERATIONS The findings indicate that one significant challenge to feasibility is the relatively high cost of developing these types of structures, combined with general escalation of construction costs in recent years. This creates an imbalance between cost and the projected operating income, even though achievable rents have also been climbing steadily in Tigard. The following are some aspects of the cost challenge faced by these concepts as market-rate developments: • Labor Availability: Currently the apartment construction market is likely in or nearing the high point in the current cycle, with apartment production increasing across the Metro area since roughly 2012. The Metro area saw an estimated 6,500 units produced in 2016, and this is projected to grow to as many as 9,000 units in 2017. As the number of projects in the pipeline has increased, the availability of regional construction companies and labor have become more and more limited. This has increased construction labor costs markedly over the last few years, and this may increase depending on the continuation of this current development cycle. It is currently uncertain when this cycle will turn. There are some indications that rents are leveling off and more concessions are being offered to prospective tenants in central Portland where the majority of construction has been taking place. At the same time, Portland has introduced an inclusionary zoning program which might further deter some new development projects. Many suburban markets, including Tigard, have not seen as much development yet this cycle, and it is possible that construction activity may shift to these markets and therefore maintain the pace of recent years. H & A Construction estimates that continuation of the current tight labor market may increase construction costs at 5% per year going forward, until the cycle moderates. • Construction Form: The proposed building form of four stories of Type V wood construction over Type I concrete construction (five stories total), entail some increased costs over buildings with fewer floors. Additional floors add some costs in structural elements to support the extra weight and allow for settling. Logistically, the larger project will likely require a larger general contractor with experience in this type of construction, which likely have higher fees and overhead. In addition,the taller construction requires a tower crane which may be avoided with shorter buildings. However, in reducing building size there are straightforward trade-offs in the number of units that can be accommodated on-site and how well the building meets goals of transit-oriented development. CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 14 Al I ■ • Required Building Step Back: Tigard Municipal Code that the street facing facade of a building in the Downtown Plan District feature a six-foot step back above the third story (18.610.030 A.1.b). The intent of this rule is to reduce the sense that buildings are looming over the streetscape and allow for additional light into local street corridors. While this rule is well- intentioned, it creates greater costs for wood-framed buildings because it means that the frame must essentially provide support for two facades. The second, step-back facade also requires support members extending from the podium to the top floor, as if it were the external façade. • Structured Parking: All concepts use some combination of parking under the concrete podium and surface parking. This is largely necessary to strike a balance between sufficient residential density to meet the goals of the project, and accommodate enough parking, even at a reduced parking ratio. Reliance solely on surface parking would greatly constrain the footprint of the built structure on site, limiting the number of residential units and commercial uses. • Site Size and Configuration: Site work may be more expensive on sites this size because they are not quite large enough to accommodate larger excavation equipment and vehicles. Smaller equipment means increased time for site preparation. • Finishes and Materials: The third-party cost estimates assumed a "mid-grade" finish level for this project and the residential units. Finishes and the exterior envelope are approximately 20% of the building cost. Adjusting the assumptions for the finish level can impact the overall project costs by roughly 5%. • Preliminary Nature of Designs: Cost estimates for this project were supplied by a third-party construction contractor with experience in building these types of projects. The accuracy of such estimates varies depending on the specificity of the design plans the contractor has to work from. Plans at this level of specificity require significant assumptions on the part of the construction contractor to estimate cost. In JOHNSON ECONOMICS experience, this sometimes leads to conservative estimates which depict the costs as somewhat higher than could actually be achieved. This is a prudent approach for the estimator to take, faced with a lack of specificity and uncertainty about future market conditions. A second, more generic cost calculator estimate conducted by the third-party contractor also projected costs at nearly 10% lower than those in the detailed cost estimate. Therefore, for planning purposes we believe it is suitable to assume that project costs may be somewhat lower. (This is reflected in the "revised cost estimate" scenario discussed below.) E. ALTERNATIVE COST/SUBSIDY SCENARIOS This project assumes that the subject sites have a high potential to participate in some form of public/private partnership for development. This is because the sites are likely to be developed in conjunction with major transit station improvements in the area. Depending on the eventual design and location of a transit station in the area (this is currently unknown), one or more of these sites may come under the ownership of TriMet, meaning the agency can steer the planning and development of the site(s) to meet public goals such as the provision of quality T.O.D., affordable housing, and/or other public goods which make the most of these catalytic sites. CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 15 In order to test the impacts of various potential public/private funding mechanisms, JOHNSON ECONOMICS used the pro forma model to test various scenarios which could impact the cost/return equation for potential developers: • Revised Costs: This scenario assumes that the project can be developed at a lower cost than the fully projected cost. This would be accomplished through a series of less-expensive finishes and materials, but also assumes that the full estimated cost may be conservatively high. This scenario assumes that hard costs are 7.5% lower than the full cost projection. Soft cost percentage and SDC estimates remain unchanged. • Land/SDC Waiver: This scenario assumes that the cost of the land to the developer may be eliminated through some combination of land donation, or waiver of SDC costs up to the estimated value of the land. This mechanism has been used on a prior project in the area. • Vertical Housing Tax Credit (VHTC): This building is located in Tigard's Vertical Housing Development Zone which allows for a tax exemption on new construction of up to 80% per year for ten years. This scenario assumes use of this tax credit. • VHTC+ Land/SDC Write-down: This scenario assumes use of both of the above options. Figure 4.5 presents the findings of this alternatives analysis. While in none of the scenarios is the viability gap completely eliminated for a market-rate project, it does fall significantly with use of the VHTC and reduction in the cost of the land. The concepts for Site B and C also achieve an estimated project value that exceeds project cost with the use of these programs. FIGURE 4.5:FINANCIAL PERFORMANCE&FEASIBILITY MEASURES CONCEPTUAL DESIGNS AT SUBJECT SITES(ALTERNATIVE SCENARIOS) Feasiblity Gap 30% 29% Site A 25% 23% Site B 23% 22% 20% 19% Site C 17% 17% 17% 15% 13% 111% 11% 10% 10% 5% 3% 4% $�3 Market Rate Market Rate Market Rate Market Rate Market Rate (Full costs) (Revised costs) (Land/SDC write (VHTC) (VHTC&Land/SDC down) writedown) Source: Johnson Economics CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 16 FIGURE 4.5(CONT.): FINANCIAL PERFORMANCE&FEASIBILITY MEASURES CONCEPTUAL DESIGNS AT SUBJECT SITES(ALTERNATIVE SCENARIOS) Site A Value/Cost Ratio 140% t Site B 120% Site C 104% 103% 104% 103% 100% 95% 96% 93% 95% 96% 93% 89% 90% 88% 88% 82% 80% 60% 40% 20% 0% Market Rate Market Rate Market Rate Market Rate Market Rate (Full costs) (Revised costs) (Land/SDC write (VHTC) (VHTC&Land/SDC down) writedown) Source: Johnson Economics CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 17 "Nt■ V. FINANCING AND IMPLEMENTATION STRATEGIES The findings of the financial analysis suggest that buildings on the scale of those envisioned in these conceptual designs may be infeasible for the foreseeable future as market-rate rental housing. While achievable rents in this market area have increased significantly in recent years, development costs have as well. While mid-rise buildings are becoming ever more feasible in the Downtown Tigard submarket, a viability gap still persists. Given the key location of these sites adjacent to major planned transit improvements, and likely to be controlled by public agencies, creating catalytic transit-oriented development is a reasonable public goal. The following are some general approaches to consider in increasing the feasibility of these projects. A. GENERAL STRATEGIES AND CONSIDERATIONS 1) Affordable Housing Developing one or more of these sites as affordable housing rather than market-rate rental housing, may help negate some of the market considerations which help make the project infeasible. Affordable housing projects have the ability to tap into other sources of equity and financing for development, and affordable rents are not expected to provide a market-level return on investment. The estimated project costs remain high, even assuming subsidies for affordable housing such as tax credits. Applying for and administering tax credits increases both development soft costs and operating costs over time for affordable housing. Additional expectations for green building, accessibility and other requirements add additional cost. In practice, development of affordable housing is often more costly than the development of market-rate housing. Private affordable housing developers can benefit from state provisions that allow them to avoid paying prevailing wages for the project, which can mitigate construction costs by roughly 15%. Two aspects of the proposed conceptual designs complicate this: one is that prevailing wage is required for projects over four stories; the second is that prevailing wage is required for projects which include a commercial component. Refining the design to be four stories in height, and residential- only (not permitted at Site A) may allow this significant source of cost saving. JOHNSON ECONOMICS modeled applying LIHTC to the site concepts, assuming successful application to the maximum allowed tax credit allocation for a single project. As expected, tax credits can greatly subsidize the initial development costs of a project. However, the remaining equity needs were still sizable — up to 50% of cost in some cases. It is likely that additional layers of subsidy or financing would be necessary to fully fund such a development. Each affordable housing project is unique, often involving a complex partnership of multiple agencies, programs and investors to fully finance a sizeable project. Despite challenges, the CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 18 "1;■ affordable housing approach, combined with other considerations discussed below, is likely the best strategy to develop a demonstration project at one or more of the subject sites that meets the public goals for T.O.D. while addressing displacement concerns. 2) Regulatory Changes The City should consider adopting changes to the Municipal Code requirements for the Downtown Plan Area to further facilitate T.O.D. and achieve the types of development envisioned in the conceptual site plans. This project has demonstrated that in order to achieve the types of built form envisioned here, the current code provisions for maximum residential density and residential parking ratio are too restrictive. Residential Density: The current maximum residential density is 50 units/acre in the Main-Center subarea (Site A), and 80 units per acre in the Station Area Overlay (Sites B and C). The conceptual designs achieved residential densities of 92 to 112 units per acre. Parking Ratios: The current code calls for 1.0 off-street parking space for each multi-family unit with some provisions to lower the ratio with an Adjustment. In order to achieve the building forms envisioned in this project, the concepts assumed a ratio of 0.5 spaces per unit. Sites B and C were still able to achieve 0.8 and 0.6 spaces/unit respectively. A relaxation of these standards would facilitate development at greater densities and meet the T.O.D. goals of increased housing and less dependency on cars in transit station areas. Fourth-floor Building Step Back: This requirement was specifically identified as an added cost factor by the third-party cost estimator. In a wood-framed building, he step-back necessitates the construction of redundant structural elements for each of the street-facing facades. 3) Go Larger or Smaller Unfortunately the three subject sites studied are an inopportune size (0.5 —0.65 acres) for this scale of construction. While the five-story construction form brings greater attendant costs, the sites are not large enough to allow for the number of units that help mitigate those costs through economies of scale. Site C, being the largest, begins to demonstrate these benefits by allowing 72 units (compared to 50 and 56), and featuring lower estimated soft costs as a percentage of hard costs. These economies can allow larger sites to generate higher returns that begin to balance out construction cost increases. In the absence of larger sites, project partners should consider more modest building designs when this project moves forward. Buildings of three stories total provide the greatest cost savings, as construction simplifies and elevators are no longer required. However, a building that is four stories (either with full podium, or with simpler tuck under parking) can also achieve cost savings from easier framing, use of smaller general contractor firms, and no need for a tower crane. CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 19 SIN B. PUBLIC PARTICIPATION AND FUNDING SOURCES There are several key ways in which public agencies can help facilitate desired development types such as T.O.D. and affordable housing. In general, these amount to reducing costs and lowering process barriers such that previously infeasible forms become feasible. The following is a summary of major categories of public intervention in the development process. Tigard currently or has in the past implemented many of these ideas.2 CATEGORIES OF PUBLIC INTERVENTION • Ensure Code Consistency with Public Goals: Because development codes are complex and multi-faceted, it is often possible for some provisions in the code to be working at cross purposes with the community's vision for the development types it would like to see. Often developers themselves, or planning projects such as this, can identify individual provisions which may be complicating or even preventing some development types. • Pre-Development Assistance: This may include modest grants or loans to assist with pre- development soft costs such as project feasibility studies, design and engineering documents, site and environmental studies. This assistance can help smaller developers and property owners decide if development is feasible. • Streamlined Permitting and Review Process: Any efforts to reduce the time it takes for public review of projects reduces costs to the developer. Clear and objective standards help developers design permit-ready projects from the outset and avoid delays. Pre-application conferences with knowledgeable staff can also help expedite the process. • SDC and Fee Waivers/Subsidy: This is one of the most direct ways that local jurisdictions can reduce the costs of new development and the viability gap. System Development Charges (SDC's) and other permitting and process fees can add up to a significant expense to the developer. • Land Acquisition and Control: Land acquisition ensures that a public agency has control over the site and that it will be used to meet public goals. Control of the land allows the agency to dictate what will occur there, and is a valuable asset which can be used as an incentive for developers. • Equity Gap Financing: Gap financing usually takes the form of grant or loan that is directly applied to help overcome the viability gap, most commonly for affordable housing. Demonstration of local funding commitment can also help non-profits secure tax credits or other state funding. A source of funding must be identified to provide this financing, and amounts may need to be sizable in order to make a difference on large projects. 2 The 2016 "Tigard Affordable Housing Strategies"report provides an in-depth discussion of the use of many of these strategies over the last decade to encourage and facilitate affordable housing. Many of these strategies can also be applied to development which meets T.O.D.goals,though there are more plentiful sources of funding for affordable housing. CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 20 "%I! • Tax Exemptions: Tax exemptions provide an on-going reduction in operating costs in return for meeting specified public goals. Affordable housing projects can utilize tax savings to help defray the often increased cost of staffing at these properties. The trade-off is that in an Urban Renewal Area, the project will generate lower or no tax increment during the abatement period. FUNDING SOURCES Successful public/private projects are often an amalgam of multiple programs and funding strategies to make the development feasible. Many of the funding sources described below can be used in combination to reduce costs or otherwise bridge the viability gap. Note that commitment of public funds of$750,000 or more may trigger prevailing wage law for market- rate developers, though not necessarily for affordable housing developers. FIGURE 5.1:MAJOR FUNDING SOURCES FOR T.O.D.AND AFFORDABLE HOUSING Program Source Description Potential Uses Equitable Housing Metro Tigard has secured a grant to provide pre- • Pre-development Planning and development analysis to address a range of assistance for A.H. Development Grant affordable housing and anti-displacement issues. Will include analysis of opportunity sites. Tax Increment Tigard The subject sites are located within the Tigard City • Pre-development Financing(TIF) Center Urban Renewal Area. Urban renewal assistance generates TIF revenue that can be used for qualified • Land acquisition projects in the URA. TIF is often the largest source of • Gap financing funding for public/private partnerships that meet public goals. Vertical Housing Tax Tigard Tigard has established a Vertical Housing • Tax abatement for Credit(VHTC) Development Zone which includes the three subject TOD sites. This program can provide an incentive to market-rate developers to locate in this area. The program provides a tax abatement of 20%per floor, up to 80%total,over ten years. Metro Transit- Metro This Metro program offers financial incentives for • Gap financing for Oriented public/private partnerships for T.O.D. This may take T.O.D. Development(TOD) the form of purchasing a T.O.D. easement, land Program discounting, or other approach. This funding may be sufficient incentive for market-rate developers to build to higher T.O.D.standards, or can supplement other sources for affordable housing. Low Income State The L1HTC program remains the main source of • Equity financing for Housing Tax Credit funding for new affordable housing construction. Affordable Housing (LIHTC) Qualified projects may be awarded 9%tax credits • Gap financing through a competitive process,or 4%credits through a non-competitive process. The tax credits are then sold to investors to provide development capital at the outset of a project. Available tax credit funding is limited by the competitive process, and the total state funding pool each year. CITY OF TIGARD URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 21 ,;/ FIGURE 5.1 CONT.):MAJOR FUNDING SOURCES FOR T.O.D.AND AFFORDABLE HOUSING Program Source Description Potential Uses HOME Program County This program provides low-interest loans for • Primary or gap affordable housing projects. It is often used as a financing for A.H. supplemental source of financing in combination with other programs such as LIHTC. Oregon Affordable State This program provides a tax credit which is applied • Primary or gap Housing Tax Credit to affordable housing loans. The lender reduces financing for A.H. interest by up to 4%with the full benefit going towards reducing rents at the property. Community Tigard This program can be used to make off-site and • Public projects Development Block other public improvements around qualified associated with Grant(CDBG) projects. These off-site improvements can reduce qualified development costs to developers who may otherwise be projects responsible for them. Construction Excise Tigard The City may consider adopting a local CET to be • Pre-development Tax(CET)-Potential applied towards affordable housing and/or T.O.D. assistance CET revenues could be used directly, or as a way to • Land acquisition recoup funds foregone through a SDC's or fee • Gap financing waiver program. Transit-Oriented Tigard This is an optional state administered program • Tax abatement for TOD Development Tax similar to the VHTC which provide a 100%tax Exemption(TOTE)- abatement on residential improvements for a Potential qualified project. Cities establish a program and determine the coverage area. This program provides more local control on what qualifies, and the 100%exemption provides a higher incentive to developers. However, individual projects require approval of taxing jurisdictions representing 51%or more of the combined tax rate on the property. CITY OF TIGARD I URBAN LOFTS DEVELOPMENT STUDY-MARKET ANALYSIS PAGE 22 City . . of Respect and Care I Do the Right Thing I Get it Done Tigardii_ 5 6 a W 4,4� 9 Q Downtown Tigar a '� c 2.4 Urban Lofts Project ,f) ._ POMMW City Center Development Agency Board j Fli 'rill ■ September 5, 2017 CODA , i"'N a t, City of i igard Downtown Tigard Urban Lofts Project • Project funded by Metro Community Planning and Development Grant • Goal : to complete pre-development feasibility work for a transit oriented development on/near the present site of Tigard Transit Center City of Tigard Downtown Tigard Urban Lofts Project • Phase 1: complete transit analysis to identify potential relocation of the Transit Center. Analysis supported moving it adjacent to potential Ash Avenue light rail station. • Phase 2: Feasibility Study, Financial Analysis and Implementation Strategies. Also : ESA's, appraisals and survey for TC and Nicoli sites. Tigard Urban Lofts FeasibilityStudy . , SIN Johnson Economics, LLC SERA O H N SO SERA Design ECONOMICS H&A Construction Project Goals • Three opportunity sites • Take advantage of key sites P\�S� N • e3v PROPOSED TR Design true T. O . D. 6po • Catalytic design and form •, d,0 ,o` PJ WES STATION j, Assumptions • Increased density yQ�G ',- s� „ • Lower parking ratios 5 t '" 4 r s A ' 0 ':•:'4. to •:', 4•.• 4 / 5.t' ` 7 ce+' .v4 �;:' S '.'p '0, , ..., .../...,-,,_,.. 0. , . '.• -, ,:<,„..,' ,- , •,..' 0 —I "/-%,..cr,v' • •0fi/� / ` •:a )m,-,,,:r +fay • of 4. ; i./ , . 0 A r rfA' r. F 4 } s 1',E£ 1Y' 7t4,lNii ',,,,f 1\" � ''y ems+ 1 �' t tet .. � > ti,; ,/ �5. �., v/` f . 70 Cri r " 1 Cyd.. r* 1 r ► o i - Market Analysis , . , , , _ , Market Estimated ti able Land Use } Locati • Development Conditions ' Demand Form II Rental Housing Good Strong Strong4-Story MFR or Mixed Use Retail Space Good Moderate Moderate Low-Rise or Mixed Use Office Space Moderate Moderate Moderate Low-Rise or Mixed Use 7 z as r r e ,$g, rf iW 7t YDw° - a lir Site A W / / A40s Total Building Size (s.f.): 63,633 Immi -a- Construction: 5 floors tn ff —\./ .1\\ Type V(wood),over r Type I (concrete) de Building Height (ft.): 55 :\ '\ SITE A \ �QIJ�p RENTAL HOUSING �\\ ��`? Housing Units: 50 \`, s\ \.\\ • \ Density(units/acre): 92.8 \' \\\ \ Leasable Res.Space (s.f): 42,067 \s, \:, .5 Residential Parking: 27 \� �' \\ \ Parking Ratio: 0.5 \ \N\ `` `a',.,, `j \ RETAIL SPACE \ \ Leasable Retail Space (s.f.): 4,200 \ `�k t!"'1 Retail Parking: 6 \\\ &., \ Parking Stalls/1,000 s.f.: 1.4 8 SW COMMERCIAL STREET 11141C a Site Plan W ,„ F, ` 4 PIC SPACE RESIDENTIAL IDOSE TRIMET RETAIL LOBBY FACILITIES AIM Sr 1231 to 0 STAR aim 9F L.. � kt CC I I A N STAIR Z I IN 9F t -_ ..._._ 9 ..... — Q m H ` 1-®..... 6$ ,1 ♦ IW� I I THREE TWO TWO TWO TWO BEDROOM BEDROOM- BEDROOM• BEDROOM- BEDROOM• B 13,5 SF TWO BATH TWO BATH TWO BATH TWO BATH TWO BATH" 10606E 40A0 SF MBG SF 1010 5F IU3S$F STAIR Upper Floor 91S STAT R THREE 1"SF ONE ONE ONE ONE ONE ONE ONE ONE 14 BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM PI a n 12419E 5185f 679 SF 6595E 697 SF VA SF Sig SF 679 W- 6995f I 4 � 1.. 9 ICC ii L W 1111111111. . a .....-- (110) ,---- ---.^. •••• ...- low. "1"' -•" 1 , • C4-4 ,... ._ , - 72- _ _:---,-- r. . ' .....--- - - _. _ -. F t- , - - , ,,...0.0. '- '',-- rF• • if 1 J F-, • '-'•-: , n _ ,.... ' YON I 1 P -- -r- ... ' .,... ! ... .._ ...,.._. ..........._ _ . ...., — RI ITT — 1,,',. •t; '°' .1,...r _.. ..._ , 11 . i . ... ....IONMIIIR '11.1.mooloolo., * , ... li .. _ 10 lir CO Site B W Total Building Size (s.f.): 57,345 \\\ � / Construction: 5 floors V 1 ' Type V(wood),over \ \ j Type I (concrete) 'Q'' \ Building Height (ft.): 52 \\ SITE B �\�a�� 'S�P� RENTAL HOUSING ���� • Housing Units: 56 e- / Density(units/acre): 98.2 \ Leasable Res.Space (s.f): 46,300 \ `/ Residential Parking: 45 .,. \ /. Parking Ratio: 0.8 RETAIL SPACE RES DENTIAL Leasable Retail Space (s.f.): 2,281 __ ___ Retail Parking: 6 ��, d am` I Parking Stalls/1,000 s.f.: 2.6 DRIVE. j� 11 ...L. m ..........._..,._. 1 Site Plan W1-- s q Immo C i , e NI SI,. 5 oras RESIDENTIAL AETILL A "IV LOBBY Mit NSW I ti • THREE ONE ONE ONE ONE ONE ONE BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM BEDROOM 8638f 6498E 8698E 6438E 663SF 8638E ,; �,I .. Upper F „,, -.., ._ - . � �.. `.. Tvuc Two sulk ONE STAIR BEDROOM- BEDROOM- BEDROOM- BED •* • ,. DROOM 26s sF TWO BATH TWO BATH TWO'BATH TWO BATH 1 6 BA BE Plan 727 SF 484 fF 991 SF V ���,r/8, z, `°�' Site C s H V Total Building Size (s.f.): 80,026 Q�*p� `C Construction: 5 floors tn Type V(wood),over Type I (concrete) Building Height (ft.): 52 SITE C RENTAL HOUSING Housing Units: 72 .\ \\\,\,.. r**74. �t Density(units/acre): 111.3 �`. Leasable Res.Space (s.f): 65,992 0. \ , Residential Parking: 44 4r ` \ Parking Ratio: 0.6 RETAIL SPACE RESIDENTIAL Leasable Retail Space (s.f.): 1,902 Retail Parking: 5 PUBLIC RETAIL RESIDENT OPEN Parking Stalls/1,000 s.f.: 2.6 SPACE DRIVE 13 _. ci) W , SMOG 1801! SitePlan IMMIMI .;� -r 1 STIR zcaSF M .._L.. I -CI RESIDENTIAL TOWNHOMEI W ,, JI LOBBY LIVE—WORK LIVE- 1 PUBLIC RETAIL. AUi7S12SF n7sF d7BF , f 7.1:: SPACE 19u,sF 612 SF I ONE PROPOSED'BUS PULLOUT�—'� ONE ,� .. BEDROOM TWO BA n BEDROOM q 96 SF �9u� ONE ONE BEDROOM BEDROOM SM SF •,• 5- TWO TWO STAIR ' STAIR BEDROOM' THREE BEDROOM- Ins' ONE ONE 26. Iwo BATH BEDROOM TWO BATH BEDROOM Upper Floor ,6661 v TWO ONE ONE P I a nOtezoom BEDROOM BEDROOM WORT( BATH rN s. vMrsF ,1..�F � 14 9 If) rH v Ill.. it s.„ imini CZ)� 11 Mili 111 U IICC 4 Wilk Milli 1111 '‹E z a 111 1 cm ‘. lit . I i_. ..< a_ _, ___ 7..-1 -- .., -1 .., i- .,12 i a--+ C (.I) O (n 0 +_ Vco (,).O -0 c6 +-� C m •_ 03 (13 CSA CIA •,. Vc a) 4_, a) •_ -0 4_, •_ 0 co _ . m •_ t+- E ._ v) - C Qa. V .o_ c c U • c� a--' v (U co ca 0 D N 4U O S— O v • U cn L (U •- •� J U m cn cn co 2 . . . . . . Feasibility Gap Feasiblity Gap 30% 29% •Site A 25% 23% Site B 23%22% 20% 19% " Site C 17%17% 17% 15% 13% 10%11% 11%10% 10% 5% 13% 4% 0% 0% 0% 0% Market Rate Market Rate Market Rate Market Rate Market Rate Affordable (Full costs) (Revised costs) (Land/SDC write (VHTC) (VHTC& (LIHTC 9%) down) Land/SDC writedown) 16 Value/Cost Ratio Value/Cost Ratio 140% •Site A Site B 21% 120% 117°/ 115% ii Site C 104%03% 104%03% 100% 95%96% 93% 95%96% ° 89%90% 88% ��� 88% 93/ 82% .. 80% 60% iiiiic 40% i q 20% v Y 0% Market Rate Market Rate Market Rate Market Rate Market Rate Affordable (Full costs) (Revised costs) (Land/SDC write (VHTC) (VHTC&Land/SDC (LIHTC 9%) down) writedown) 17 Potential Strategies • Affordable housing • Regulatory changes • Larger sites or sm: 1,5„et.,...,r_, buildings t ! I . - 1 1� L �� °kill I -., Run Ai In, . . L ' if ' ' . 411 Ii Ill 7'''.7 '. 7-r.,-- ---'4"..; Aar ' •111.11 i U i 0 '-'— ' . . 1 1 18 City of Tigard Next Steps • Work with TriMet on an MOU to prioritize affordable housing in the vicinity of potential light rail station. • Metro Equitable Housing Grant will refine feasibility work for one of these sites or another transit accessible site AIS-3232 7. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): 10 Minutes Agenda Title: City Center Development Agency Municipal Code Amendments Submitted By: Sean Farrelly, Community Development Item Type: Ordinance Meeting Type: Council Public Hearing - Legislative Business Meeting - Main Public Hearing: Yes Publication Date: Information ISSUE Shall Council adopt the ordinance to update Tigard Municipal Code Chapters 2.64 and 3.28 to reflect the adoption of the Tigard Triangle Urban Renewal Plan? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of the proposed ordinance amending the Tigard Municipal Code. KEY FACTS AND INFORMATION SUMMARY Voter approval of the Tigard Triangle Urban Renewal Plan in May 2017 has created the need to make revisions to the Tigard Municipal Code's references to urban renewal. Currently Chapter 2.64 refers to the City Center Development Agency. "City Center" refers to downtown Tigard. Changing the name of the City Center Development Agency to the Town Center Development Agency would reflect that the Agency is implementing plans in both downtown and the Triangle. Together these areas constitute Tigard's Town Center in the Metro 2040 Growth Concept (see attached map). One change is also proposed for Chapter 3.28, where a reference is made to expenditures conforming to "the Tigard Downtown Revitalization Plan." This reference is proposed to be changed to "the city's duly enacted urban renewal plan(s)." Attached are the ordinance, the redlined version of the Municipal Code chapters (Exhibit A) and a clean, reformatted version. OTHER ALTERNATIVES Council could decide to revise or not to adopt the proposed ordinance. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS City Center Urban Renewal Plan Tigard Triangle Urban Renewal Plan DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Ordinance Exhibit A 2.64 Clean Copy 3.28 Clean Copy Tigard Town Center Map CITY OF TIGARD, OREGON TIGARD CITY COUNCIL ORDINANCE NO. 17- AN ORDINANCE TO AMEND MUNICIPAL CODE CHAPTERS 2.64 AND 3.28 TO REFLECT CHANGE OF URBAN RENEWAL AGENCY NAME TO TOWN CENTER DEVELOPMENT AGENCY WHEREAS, the recent voter approval of the Tigard Triangle Urban Renewal Plan has resulted in the need to change the name of Tigard's urban renewal agency from City Center Development Agency to Town Center Development Agency to reflect the new geographic location of the urban renewal area;and WHEREAS,sections of the Municipal Code need to be updated to reflect this. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Sections 2.64 and 3.28 of the Tigard Municipal Code are hereby amended as provided in Exhibit A (additional language underlined and deleted language st ere). SECTION 2: If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application,and to this end the provisions of this ordinance are severable.The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the ordinance be enforced. SECTION 3: Any references to"City Center Development Agency"in contracts,intergovernmental agreements,or other documents are now references to"Town Center Development Agency." SECTION 4: This ordinance shall be effective 30 days after its passage by the council, signature by the mayor,and posting by the city recorder. PASSED: By vote of all council members present after being read by number and title only, this day of ,2017. Carol A. Krager,City Recorder APPROVED: By Tigard City Council this day of ,2017. John L. Cook,Mayor ORDINANCE No. 17- Page 1 Approved as to form: City Attorney Date ORDINANCE No. 17- Page 2 Exhibit A TIGARD MUNICIPAL CODE Chapter 2.64 CITY TOWN CENTER including, but not limited to, the power of eminent DEVELOPMENT AGENCY. domain. The powers conferred to this agency by ORS Chapter 457 are in addition and Sections: supplemental to the powers conferred by any other law. (Ord. 89-05 §4, 1989). 2.64.010 Need Declared. 2.64.020 Title. 2.64.050 Limitation On Action. 2.64.030 Membership. 2.64.040 Powers. Any act of the City Town Center 2.64.050 Limitation On Action. Development Agency shall be considered the act 2.64.060 Rules Of Procedures. of the Urban Renewal Agency only and shall not 2.64.070 Advisory Commission be considered an act of the City Council, even Established. though membership of both are identical. The Comy Town Center Development Agency shall not 2.64.010 Need Declared. exercise any power which, by Charter, requires voter approval. (Ord. 89-05 §5, 1989). Pursuant to ORS 457.035, the City Council declares that blighted areas now exist in the City 2.64.060 Rules Of Procedures. and that there is currently a need for an Urban Renewal Agency to function in the City. (Ord. 89- 1. The Agency shall serve with integrity, 05 §1, 1989). perform the duties of the position and obey the laws of the federal, state and local governments. 2.64.020 Title. This is required to protect the public's confidence in the integrity of their local government's fair The Urban Renewal Agency created by this and effective operation. chapter shall be known as the City-Town Center Development Agency. (Ord. 89-05 §2, 1989). 2. Council Groundrules will govern proceedings of the Agency where they do not 2.64.030 Membership. conflict with these rules or statutory provisions. The City Town Center Development Agency 3. A violation of the Council Groundrules shall be comprised of members of the City shall not be considered a basis for challenging the Council as it lawfully exists from time to time. validity of any Agency decision. Any change in membership of the City Council shall automatically, and without need for further 4. An Agency member may be subject to a legislative action, constitute an identical change in Council Resolution of Censure for misconduct, the membership of the Gity—Town Center nonperformance of duty and failure to obey the Development Agency. (Ord. 89-05 §3, 1989). laws of the federal, state and local governments. Misconduct includes not honoring the provisions 2.64.040 Powers. of the Council Groundrules. Subject to the limitations imposed by Section 5. Early recognition of the questioned 2.64.050, the Cot—Town Center Development conduct is encouraged. Progressive counsel may Agency shall have authority to exercise all powers occur with the Agency member but is not required available to the Agency under ORS Chapter 457, 2-64-1 Code Update: 1/11 TIGARD MUNICIPAL CODE prior to passage of a Resolution of Censure. (Ord. 10-16 §3 (Exh.A), 2010). 2.64.070 Advisory Commission Established. The City Town Center Advisory Commission is established. The Commission shall be comprised of seven to twelve up to fifteen members appointed by the City Council. The purpose of the Commission is to assist in implementation of Nail the city's duly enacted urban renewal plan(s), to make recommendations to the City Town Center Development Agency and to help inform Tigard's citizens of the content and activities of urban renewal plans''-s . (Ord. 10-16 §3 (Exh. A), 2010; Ord. 89-05 §6, 1989). ■ 2-64-2 Code Update: 1/11 Exhibit A TIGARD MUNICIPAL CODE Chapter 3.28 TIGARD URBAN RENEWAL necessary or convenient in accordance with AGENCY FUND. prescribed procedures to account for all funds received and all obligations and expenditures Sections: there against as part of the City's fiscal records, thus to maintain currently at all times proper 3.28.010 Establishment. records of accountability thereof as required by 3.28.020 Deposits. law. (Ord. 82-83 §4, 1982).• 3.28.030 Expenditures. 3.28.040 Records. 3.28.010 Establishment. Finding that ORS 457.440 requires a special revenue fund be created to be used to pay the principal and interest on indebtedness incurred by the Agency to finance or refinance the carrying out of the urban renewal plans, the Tigard City Council establishes a special revenue fund of the City of Tigard designated "Tigard Urban Renewal Agency Fund," which short title shall be "TURA Fund." (Ord. 82-83 §1, 1982). 3.28.020 Deposits. The Tigard City Council further finds that all payments as and when received by the City under ORS 457.420 through 457.450 shall be separately maintained and deposited in the Tigard Urban Renewal Agency Fund together with any increments thereto or interest thereon. (Ord. 82-83 §2, 1982). 3.28.030 Expenditures. Obligations against or expenditures from the fund shall conform to • ' . ' . ' . the city's duly enacted urban renewal plan(s) and as restricted by ORS Chapter 457. (Ord. 82-83 §3, 1982). 3.28.040 Records. The Finance Director is authorized and directed to establish all accounting records 3-28-1 SE Update: 12/01 TIGARD MUNICIPAL CODE Chapter 2.64 TOWN CENTER including, but not limited to,the power of eminent DEVELOPMENT AGENCY. domain. The powers conferred to this agency by ORS Chapter 457 are in addition and Sections: supplemental to the powers conferred by any other law. (Ord. 89-05 §4, 1989). 2.64.010 Need Declared. 2.64.020 Title. 2.64.050 Limitation On Action. 2.64.030 Membership. 2.64.040 Powers. Any act of the Town Center Development 2.64.050 Limitation On Action. Agency shall be considered the act of the Urban 2.64.060 Rules Of Procedures. Renewal Agency only and shall not be considered 2.64.070 Advisory Commission an act of the City Council, even though Established. membership of both are identical. The Town Center Development Agency shall not exercise 2.64.010 Need Declared. any power which, by Charter, requires voter approval. (Ord. 89-05 §5, 1989). Pursuant to ORS 457.035, the City Council declares that blighted areas now exist in the City 2.64.060 Rules Of Procedures. and that there is currently a need for an Urban Renewal Agency to function in the City. (Ord. 89- 1. The Agency shall serve with integrity, 05 §1, 1989). perform the duties of the position and obey the laws of the federal, state and local governments. 2.64.020 Title. This is required to protect the public's confidence in the integrity of their local government's fair The Urban Renewal Agency created by this and effective operation. chapter shall be known as the Town Center Development Agency. (Ord. 89-05 §2, 1989). 2. Council Groundrules will govern proceedings of the Agency where they do not 2.64.030 Membership. conflict with these rules or statutory provisions. The Town Center Development Agency shall 3. A violation of the Council Groundrules be comprised of members of the City Council as it shall not be considered a basis for challenging the lawfully exists from time to time. Any change in validity of any Agency decision. membership of the City Council shall automatically, and without need for further 4. An Agency member may be subject to a legislative action, constitute an identical change in Council Resolution of Censure for misconduct, the membership of the Town Center Development nonperformance of duty and failure to obey the Agency. (Ord. 89-05 §3, 1989), laws of the federal, state and local governments. Misconduct includes not honoring the provisions 2.64.040 Powers. of the Council Groundrules. Subject to the limitations imposed by Section 5. Early recognition of the questioned 2.64.050, the Town Center Development Agency conduct is encouraged. Progressive counsel may shall have authority to exercise all powers occur with the Agency member but is not required available to the Agency under ORS Chapter 457, 2-64-1 Code Update: 1/11 TIGARD MUNICIPAL CODE prior to passage of a Resolution of Censure. (Ord. 10-16 §3 (Exh. A), 2010). 2.64.070 Advisory Commission Established. The Town Center Advisory Commission is established. The Commission shall be comprised of up to fifteen members appointed by the City Council. The purpose of the Commission is to assist in implementation of the city's duly enacted urban renewal plan(s), to make recommendations to the Town Center Development Agency and to help inform Tigard's citizens of the content and activities of urban renewal planss. (Ord. 10-16 §3 (Exh. A), 2010; Ord. 89-05 §6, 1989). ■ 2-64-2 Code Update: 1/11 TIGARD MUNICIPAL CODE Chapter 3.28 TIGARD URBAN RENEWAL received and all obligations and expenditures AGENCY FUND. there against as part of the City's fiscal records, thus to maintain currently at all times proper Sections: records of accountability thereof as required by law. (Ord. 82-83 §4, 1982).■ 3.28.010 Establishment. 3.28.020 Deposits. 3.28.030 Expenditures. 3.28.040 Records. 3.28.010 Establishment. Finding that ORS 457.440 requires a special revenue fund be created to be used to pay the principal and interest on indebtedness incurred by the Agency to finance or refinance the carrying out of the urban renewal plans, the Tigard City Council establishes a special revenue fund of the City of Tigard designated "Tigard Urban Renewal Agency Fund," which short title shall be "TURA Fund." (Ord. 82-83 §1, 1982). 3.28.020 Deposits. The Tigard City Council further finds that all payments as and when received by the City under ORS 457.420 through 457.450 shall be separately maintained and deposited in the Tigard Urban Renewal Agency Fund together with any increments thereto or interest thereon. (Ord. 82-83 §2, 1982). 3.28.030 Expenditures. Obligations against or expenditures from the fund shall conform to the city's duly enacted urban renewal plan(s) and ORS Chapter 457. (Ord. 82-83 §3, 1982). 3.28.040 Records. The Finance Director is authorized and directed to establish all accounting records necessary or convenient in accordance with prescribed procedures to account for all funds 3-28-1 SE Update: 12/01 Metro Title 6, Centers, Corridors, Station Communities and Main Streets, Adopted Boundaries ii. I 11—.--fl...... ., I ,,,,,IPf ashington ' Square West t Portland 1 j Murray eil , Schalk ' i 43 / Ti —J_. - - -i 21n I99A, art Lake 5 ,Lake) Oswego Grove King le \_ "''" I , City .�s 0 r •7 1 / i 1K - i ' k- _„,i ,___„). / s-tipi n 1 Pr Central city, adopted boundary 1 1 ki Regional center, adopted boundary ir 111 1 Tualatin i .7-1...../- Town 1.,rTown center, adopted boundary AGENDA ITEM No. 7 Date: September 5, 2017 TESTIMONY SIGN-UP SHEETS Please sign on the following page(s) if you wish to testify before City Council on: Legislative Public Hearing — ORDINANCE AMENDING THE TIGARD MUNICIPAL CODE TO REFLECT CHANGE OF URBAN RENEWAL AGENCY NAME TO TOWN CENTER DEVELOPMENT AGENCY This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony become part of the public record and is openly available to all members of the public. 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. Due to Time Constraints City Council May Impose A Time Limit on Testimony AGENDA ITEM No. 7 Date: September 5, 2017 PLEASE PRINT This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony become part of the public record and is openly available to all members of the public. 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. Proponent—(Speaking In Favor) Opponent—(Speaking Against) Neutral Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone /, Name,Address&Phone No. Name,Address ` hone 'o. ; ame,Address&Phone No. Name,Address&Phone No. Na e,Address . hone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. AIS-3233 8. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): 10 Minutes Agenda Title: Update City Center Advisory Commission By-laws Submitted By: Sean Farrelly, Community Development Item Type: Resolution Meeting Type: Council Business Meeting - Main Public Hearing: No Publication Date: Information ISSUE Council is requested to consider approval of a resolution adopting revised by-laws for the City Center Advisory Commission to reflect their new advisory duties on the Tigard Triangle Urban Renewal Plan. STAFF RECOMMENDATION / ACTION REQUEST Staff recommends that Council approve the resolution. KEY FACTS AND INFORMATION SUMMARY The voter approval of the Tigard Triangle Urban Renewal Plan in May 2017 has created the need to make several revisions to the City Center Advisory Commission's by-laws. The current by-laws make reference only to advising on the City Center Urban Renewal Plan. The proposed changes include: 1. Change the name of the commission to the Town Center Advisory Commission, to reflect its new duties to advise on the Triangle plan. This mirrors the change of the name of the City Center Development Agency to the Town Center Development Agency. "Town Center" refers to Downtown Tigard and the Tigard Triangle's joint designation as a Town Center in the Metro 2040 Growth Concept (see attached map). 2. Update the Composition section to add two voting members (for a total of eleven),which includes: A. Add one new position (for a total of three) for business or property owners and open it up to Triangle representatives. B. Add one new at-large position (for a total of six). C. Open up the designated resident position to residents within or adjacent to the boundary of the Triangle. With the existing provisions for up to two alternates and up to two ex-officio members, the maximum number of commissioners is fifteen. The by-laws continue to allow membership to drop below this number if there is difficulty recruiting qualified applicants. At their July meeting the CCAC reviewed the proposed changes and gave their feedback. Attached are the redlined version of the current by-laws and a clean, reformatted version. OTHER ALTERNATIVES Council could decide to revise or not to adopt the proposed changes. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS City Center Urban Renewal Plan Tigard Triangle Urban Renewal Plan DATES OF PREVIOUS COUNCIL CONSIDERATION April 5, 2016: Revise City Center Advisory Commission by-laws Attachments Council Resolution Exhibit A- Clean Version Red-Line Version Tioard Town Center Map CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 17- A RESOLUTION AMENDING THE BY-LAWS OF THE TOWN CENTER ADVISORY COMMISSION WHEREAS, the Town Center Advisory Commission (previously the City Center Advisory Commission) will have a new role to advise on the implementation of the Tigard Triangle Urban Renewal Plan;and WHEREAS, the by-laws of the Town Center Advisory Commission need to be updated to reflect the new charge and duties,composition and responsibilities. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The by-laws governing the Town Center Advisory Commission as specified in Exhibit A are hereby adopted. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2017. Mayor-City of Tigard ATTEST: City Recorder-City of Tigard RESOLUTION NO. 17- Page 1 IN: ' City of Tigard . IOA Town Center Advisory Commission Proposed By-law Revisions,August 7,2017 SECTION I. CHARGE AND DUTIES A. The Town Center Advisory Commission (TCAC) hereafter referred to as the "Commission" shall have no powers except as conferred by this resolution, City Charter, the Tigard Municipal Code, or the Oregon Revised Statutes. B. It shall be the function of the Commission to act as an advisory body to the Town Center Development Agency (TCDA), the Urban Renewal Agency for the City of Tigard or the City Council as appropriate. C. The Town Center Advisory Commission is charged with advising the Town Center Development Agency, the Urban Renewal Agency for the City of Tigard, on matters pertaining to Urban Renewal Plan implementation and tax increment fund allocations for the City Center Urban Renewal District and the Tigard Triangle Urban Renewal District. Recommendations pertaining to policy, budget, and implementation of urban renewal projects identified within the Urban Renewal Plans and / or the annually adopted Work Programs will be made to the Town Center Development Agency or City Council as appropriate for consideration, deliberation and action. The Commission may also provide recommendations with regard to amendments to the Urban Renewal Plans. D. The Commission shall perform other duties as assigned by the Town Center Development Agency. E. The Commission may form subcommittees to investigate areas relevant to its charge or duties pursuant to this section. F. The Commission and its members shall conduct itself in a manner that's in keeping with applicable federal, state, and local laws pertaining to conduct and ethics and the City of Tigard Code of Conduct. Any violation of the provisions of such laws shall be grounds for removal from office. SECTION II. COMPOSITION A. The Commission shall consist of eleven (11) members appointed by the City Council who are residents or are businesses or property owners (or their representatives) within the City Center or Tigard Triangle Urban Renewal Districts with the following representation if possible: 1. At least three (3) business owners or property owners or designated management representatives of business or property owners whose business or property is located within the City Center Urban Renewal District or Tigard Triangle Urban Renewal District; 2. Six (6) persons who are residents of Tigard and represent a cross-section of interests in the community at large; City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 www.tigard-or.gov i page 1 3. One (1) person residing within or adjacent to the boundaries of the City Center Urban Renewal District or Tigard Triangle Urban Renewal District; 4. One (1) person with expertise in real estate development, urban planning or design, or affordable housing; 5. Two (2) alternates (non-voting) including one (1) at large resident of Tigard, and one (1) business or property owner (or a designated representative) from within the City Center Urban Renewal District or Tigard Triangle Urban Renewal District. 6. Up to two (2) non-voting ex officio members representing taxing jurisdictions whose boundaries overlap the City Center Urban Renewal District or Tigard Triangle Urban Renewal District, or non-residents who have expertise in real estate development, urban planning or design, affordable housing, or other desired background may be appointed. B. Membership may temporarily drop below required minimums due to resignations and/or difficulty in recruiting qualified applicants. C. A member or ex officio member who is appointed to fill a position pursuant to subsection 1, 2, 3, 5, or 6 above, and who subsequently ceases to be eligible for the position to which the member or ex officio member was appointed, shall resign from the Commission within one month of becoming ineligible. SECTION III. APPOINTMENTS A. Council shall fill vacancies with individuals necessary to meet the compositional requirements of above. B. In addition, Council shall determine a means of staggering appointments of all current members using three (3) three-year terms, three (3) two-year terms, and three (3) one-year terms. C. Appointments shall be made by the City Council with recommendations from the Mayor. SECTION IV. TERM OF OFFICE A. After the initial staggering of terms for current members as defined in Section III.B. above, the term of office of all future, appointed members shall be three (3) years or until their successors are qualified and appointed. B. All terms shall begin January 1 and end December 31. C. Any vacancy in the Commission shall be filled by appointment by the Council upon recommendation by the Mayor for the unexpired portion of the term. The unexpired portion of a term does not count towards the fulfillment of the three (3) year appointment. D. Members may be reappointed for up to two consecutive terms. E. Members of the Commission shall receive no compensation for their services. City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov I page 2 F. A member who seeks to resign from the Commission shall submit a written resignation to the staff liaison. If possible, the resignation should allow for a thirty (30) day notice so the City Council can appoint a replacement. SECTION V. ORGANIZATION OF THE COMMISSION A. At its first or second meeting of the year, and thereafter annually, the Commission shall elect a Chair and Vice Chair from its members who shall hold office at the pleasure of the Commission. B. If the Chair or Vice Chair should resign, the Commission shall, at its next meeting, conduct an election and provide a replacement. C. Chair. The chair shall have general directional powers over the Commission. The chair shall preside at all meetings and, in consultation with support staff, set the agendas and notify the board of all meeting times and place. The chair shall also be an ex-officio member of all subcommittees and shall be the sole spokesperson for the Commission unless this responsibility is delegated to the vice chair, another Commission member or support staff. D. Vice Chair. In the event of the absence of the chair at a meeting the vice chair shall perform the duties of the chair. E. Staff liaisons are the primary contacts for City of Tigard boards and the primary interface between these bodies and the Town Center Development Agency, City Council, City Manager, and departments. Besides serving as a technical resource, staff liaisons are responsible for meeting logistics, member recruitment and recognition, recordkeeping, and monitoring board effectiveness. SECTION VI. MEETINGS A. The Commission shall meet at least quarterly during a calendar year at a time and place that is specified at least 5 days in advance. B. Agendas and minutes shall be posted for public notice on the City of Tigard web page and in the lobby of City Hall or Permit Center in compliance with Oregon Public Meetings Law. All meetings shall be open to the public. C. The parliamentary authority for the Commission is Robert's Rules of Order Revised, except where superseded by these bylaws or local, state, or federal law. D. A majority of votes of Commission members present shall determine the official position of the Commission on a given issue. Alternates are not allowed to vote under any circumstances. E. Chair and Vice Chair shall vote on all matters before the Commission. City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov page 3 F. Commission members shall not send or receive electronic communications concerning any matter pending before the Commission during a Commission meeting. G. Commission members shall not use electronic communication devices to review or access information regarding matters not in consideration before the Commission during a Commission meeting. SECTION VII. COMMISSION MEMBER RESPONSIBILITIES A. Members of the Commission shall: 1. Regularly attend Town Center Advisory Commission (TCAC) meetings and contribute constructively to discussions, 2. Consider and discuss issues from a Citywide perspective, as well as that of particular stakeholders or interests, 3. Understand and be able to articulate the TCAC's charge, responsibilities and adopted, annual work program, 4. Strive to reach consensus on matters under consideration, 5. Act with respect and consideration for the viewpoint of others, 6. Review and provide comment on reports, presentations, and recommended policies or strategies related to redevelopment before the Commission, and 7. Vote on motions in front of the Commission, except where reasonable abstention is necessary. B. Commission members may engage in general discussions regarding its charge, responsibilities or projects within the Urban Renewal Plans or urban renewal work programs, but shall not discuss specific real estate projects or proposals with potential developers or property owners without the authorization of the Town Center Development Agency. C. In addition,members shall not make representations on behalf of the City of Tigard or Town Center Development Agency without authorization. D. Members shall not make representations on behalf of the TCAC whether intentional or not, without the authorization of the Commission. SECTION VIII. ATTENDANCE If a member of the Commission is unable to attend a meeting, he or she is expected to notify the Chair or Vice Chair. If any member is absent from any six (6) regularly scheduled meetings within one year or three (3) consecutive meetings without reasonable cause,the issue shall be placed on the upcoming agenda, and upon majority vote of the Commission that position shall be declared vacant. The Commission shall forward its action to the Mayor and Council,who shall fill the vacant position. SECTION IX. QUORUM City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov page 4 At any meeting of the Commission, a quorum shall be a majority of the current voting members of the Commission. No action shall be taken in the absence of a quorum except that the meeting may continue with discussion on agenda items. For the purposes of forming a quorum, members who have disqualified or excused themselves from participation in any matter shall be counted as present. In the event a quorum will not be present at any meeting, the Chair or Vice Chair shall notify the Commission members in advance of that fact so that a decision may be made whether to meet and take no action on agenda items or to reschedule to a different time. SECTION X. REMOVAL OF MEMBERS A. The City Council may remove members of the Commission in accordance with Section VIII Attendance. B. The Council may also remove members, when, in its judgment, the conduct of a member does not conform to the City of Tigard Code of Conduct for Boards, Commissions and Committees, Section VII Member Responsibilities, or other conduct unbecoming a representative of the,City. C. The Commission may make a recommendation to Council for the removal of a member in accordance with Section VII Member Responsibilities. The Commission shall forward a recommendation for replacement to the Mayor and Council in a timely manner. SECTION XI. ANNUAL REPORT OF THE COMMISSION A. Not later than December 1 of each year, the Commission shall prepare and file its Annual Report to the TCDA. B. The Annual Report shall include a summary of key activities and proceedings and any specific suggestions or recommendations which the Commission believes would assist its mission or the overall goals for the urban renewal areas. C. The Annual Report shall not be submitted unless approved by the Commission. SECTION XII. AMENDMENTS A. These bylaws are adopted by resolution of the Tigard City Council, are binding on the Commission, and may be amended by the City Council. The Commission may propose amendments for Council consideration. City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 I www.tigard-or.gov page 5 14 s City of Tigard RD G -Town Center Advisory Commission TIGA Proposed By-law Revisions,August 7, 2017 SECTION I. CHARGE AND DUTIES A. The Town Center Advisory Commission (TECAC) hereafter referred to as the "Commission" shall have no powers except as conferred by this resolution, City Charter, the Tigard Municipal Code, or the Oregon Revised Statutes. B. It shall be the function of the Commission to act as an advisory body to the Town Center Development Agency (CCDA TCDA), the Urban Renewal Agency for the City of Tigard or the City Council as appropriate. C. The Town Center Advisory Commission is charged with advising the -Town Center Development Agency, the Urban Renewal Agency for the City of Tigard, on matters pertaining to Urban Renewal Plan implementation and tax increment fund allocations for the City Center Urban Renewal District and the Tigard Triangle Urban Renewal District. Recommendations pertaining to policy, budget, and implementation of urban renewal projects identified within the Urban Renewal Plans and / or the annually adopted Downtown Implcmcntation Strategy and Work Programs will be made to the City—Town Center Development Agency or City Council as appropriate for consideration, deliberation and action. The Commission may also provide recommendations with regard to amendments to the City Center Urban Renewal Plans. D. The Commission shall perform other duties as assigned by the City-Town Center Development Agency. E. The Commission may form subcommittees to investigate areas relevant to its charge or duties pursuant to this section. F. The Commission and its members shall conduct itself in a manner that's in keeping with applicable federal, state, and local laws pertaining to conduct and ethics and the City of Tigard Code of Conduct. Any violation of the provisions of such laws shall be grounds for removal from office. SECTION II. COMPOSITION A. The Commission shall consist of rune-eleven (911) members appointed by the City Council who are residents or are businesses or property owners (or their representatives) within the City Center Qt Tigard Triangle Urban Renewal Districts with the following representation if possible: 1. At least two three(32) business owners or property owners or designated management representatives of business or property owners whose business or property is located within the City Center Urban Renewal District or Tigard Triangle Urban Renewal District; City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov I page 1 2. Five-Sir (65) persons who are residents of Tigard and represent a cross-section of interests in the community at large; 3. One (1) person residing within or adjacent to the boundaries of the City Center Urban Renewal District or Tigard Triangle Urban Renewal District; 4. One (1) person with expertise in real estate development, urban planning or design, or affordable housing; 5. Two (2) alternates (non-voting) including one (1) at large resident of Tigard, and one (1) business or property owner (or a designated representative) from within the City Center Urban Renewal District or Tigard Triangle Urban Renewal District. 6. Up to two (2) non-voting ex officio members representing taxing jurisdictions whose boundaries overlap the City Center Urban Renewal District or Tigard Triangle Urban Renewal District, or non-residents who have expertise in real estate development, urban planning or design, affordable housing, or other desired background may be appointed. B. Membership may temporarily drop below required minimums due to resignations and/or difficulty in recruiting qualified applicants. C. A member or ex officio member who is appointed to fill a position pursuant to subsection 1, 2, 3, 5, or 6 above, and who subsequently ceases to be eligible for the position to which the member or ex officio member was appointed, shall resign from the Commission within one month of becoming ineligible. SECTION III. APPOINTMENTS A. Council shall fill vacancies with individuals necessary to meet the compositional requirements of above. B. In addition, Council shall determine a means of staggering appointments of all current members using three (3) three-year terms, three (3) two-year terms, and three (3) one-year terms. C. Appointments shall be made by the City Council with recommendations from the Mayor. SECTION IV. TERM OF OFFICE A. After the initial staggering of terms for current members as defined in Section III.B. above, the term of office of all future, appointed members shall be three (3) years or until their successors are qualified and appointed. B. All terms shall begin January 1 and end December 31. C. Any vacancy in the Commission shall be filled by appointment by the Council upon recommendation by the Mayor for the unexpired portion of the term. The unexpired portion of a term does not count towards the fulfillment of the three (3) year appointment. D. Members may be reappointed for up to two consecutive terms. City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov page 2 E. Members of the Commission shall receive no compensation for their services. F. A member who seeks to resign from the Commission shall submit a written resignation to the staff liaison. If possible, the resignation should allow for a thirty (30) day notice so the City Council can appoint a replacement. SECTION V. ORGANIZATION OF THE COMMISSION A. At its first or second meeting of the year, and thereafter annually, the Commission shall elect a Chair and Vice Chair from its members who shall hold office at the pleasure of the Commission. B. If the Chair or Vice Chair should resign, the Commission shall, at its next meeting, conduct an election and provide a replacement. C. Chair. The chair shall have general directional powers over the Commission. The chair shall preside at all meetings and, in consultation with support staff, set the agendas and notify the board of all meeting times and place. The chair shall also be an ex-officio member of all subcommittees and shall be the sole spokesperson for the Commission unless this responsibility is delegated to the vice chair, another Commission member or support staff. D. Vice Chair. In the event of the absence of the chair at a meeting the vice chair shall perform the duties of the chair. E. Staff liaisons are the primary contacts for City of Tigard boards and the primary interface between these bodies and the Ci Town Center Development Agency, City Council, City Manager, and departments. Besides serving as a technical resource, staff liaisons are responsible for meeting logistics, member recruitment and recognition, recordkeeping, and monitoring board effectiveness. SECTION VI. MEETINGS A. The Commission shall meet at least quarterly during a calendar year at a time and place that is specified at least 5 days in advance. B. Agendas and minutes shall be posted for public notice on the City of Tigard web page and in the lobby of City Hall or Permit Center in compliance with Oregon Public Meetings Law. All meetings shall be open to the public. C. The parliamentary authority for the Commission is Robert's Rules of Order Revised, except where superseded by these bylaws or local, state, or federal law. D. A majority of votes of Commission members present shall determine the official position of the Commission on a given issue. Alternates are not allowed to vote under any circumstances. E. Chair and Vice Chair shall vote on all matters before the Commission. City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov I page 3 F. Commission members shall not send or receive electronic communications concerning any matter pending before the Commission during a Commission meeting. G. Commission members shall not use electronic communication devices to review or access information regarding matters not in consideration before the Commission during a Commission meeting. SECTION VII. COMMISSION MEMBER RESPONSIBILITIES A. Members of the Commission shall: 1. Regularly attend CCAC Town Center Advisory Commission (TCAC) meetings and contribute constructively to discussions, 2. Consider and discuss issues from a Citywide perspective, as well as that of particular stakeholders or interests, 3. Understand and be able to articulate the CCAC's TCAC's charge, responsibilities and adopted, annual work program, 4. Strive to reach consensus on matters under consideration, 5. Act with respect and consideration for the viewpoint of others, 6. Review and provide comment on reports, presentations, and recommended policies or strategies related to Downtown redevelopment before the Commission, and 7. Vote on motions in front of the Commission, except where reasonable abstention is necessary. B. Commission members may engage in general discussions regarding its charge, responsibilities or projects within the Urban Renewal Plans or Downtown Implemcntation Strategy urban renewal work programs, but shall not discuss specific real estate projects or proposals with potential developers or property owners without the authorization of the Town Center Development Agency. C. In addition, members shall not make representations on behalf of the City of Tigard or City-Town Center Development Agency without authorization. D. Members shall not make representations on behalf of the CCAC TCAC whether intentional or not, without the authorization of the Commission. SECTION VIII. ATTENDANCE If a member of the Commission is unable to attend a meeting, he or she is expected to notify the Chair or Vice Chair. If any member is absent from any six (6) regularly scheduled meetings within one year or three (3) consecutive meetings without reasonable cause, the issue shall be placed on the upcoming agenda, and upon majority vote of the Commission that position shall be declared vacant. The Commission shall forward its action to the Mayor and Council,who shall fill the vacant position. City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov I page 4 SECTION IX. QUORUM At any meeting of the Commission, a quorum shall be a majority of the current voting members of the Commission. No action shall be taken in the absence of a quorum except that the meeting may continue with discussion on agenda items. For the purposes of forming a quorum, members who have disqualified or excused themselves from participation in any matter shall be counted as present. In the event a quorum will not be present at any meeting, the Chair or Vice Chair shall notify the Commission members in advance of that fact so that a decision may be made whether to meet and take no action on agenda items or to reschedule to a different time. SECTION X. REMOVAL OF MEMBERS A. The City Council may remove members of the Commission in accordance with Section VIII Attendance. B. The Council may also remove members, when, in its judgment, the conduct of a member does not conform to the City of Tigard Code of Conduct for Boards, Commissions and Committees, Section VII Member Responsibilities, or other conduct unbecoming a representative of the City. C. The Commission may make a recommendation to Council for the removal of a member in accordance with Section VII Member Responsibilities. The Commission shall forward a recommendation for replacement to the Mayor and Council in a timely manner. SECTION XI. ANNUAL REPORT OF THE COMMISSION A. Not later than December 1 of each year, the Commission shall prepare and file its Annual Report to the ' - - - - p - . :;-- - - - . TC--CDA . B. The Annual Report shall include a summary of key activities and proceedings and any specific suggestions or recommendations which the Commission believes would assist its mission or the overall goals for the Downtownurban renewal areas. C. The Annual Report shall not be submitted unless approved by the Commission. SECTION XII. AMENDMENTS A. These bylaws are adopted by resolution of the Tigard City Council, are binding on the Commission, and may be amended by the City Council. The Commission may propose amendments for Council consideration. City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov I page 5 Metro Title 6, Centers, Corridors, Station Communities and Main Streets, Adopted Boundaries _ , 1 1 Washington :i West �� ,,,,,00,0\0„..T.....,/) Portland Murray I Scholls , ._._ , f Tigard - - — - _ _ 1 1 Lake Lake ) Oswego I 795) r, Grove King - lb.. City IV+r A . -----, \\\: 1\s,„ Central city, adopted boundary 1 1 Regional center, adopted boundary 1 I Tuarikatin I �\ Town center, adopted boundary AIS-3240 9. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): 5 Minutes Agenda Title: Contract Award - Pacific Highway Sanitary Sewer Line Prepared For: Joseph Barrett Submitted By: Kelly Burgoyne, Central Services Item Type: Motion Requested Meeting Type: Council Update, Discussion, Direct Business Staff Meeting - Main Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Local Contract Review Board award a contract for the Pacific Highway Sanitary Sewer Line to Insituform Technologies, LLC? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends the Local Contract Review Board award a contract for the Pacific Highway Sanitary Sewer Line to Insituform Technologies, LLC for $148,041 and direct the City Manager to take the necessary steps to execute the contract. KEY FACTS AND INFORMATION SUMMARY A stretch of sanitary sewer lines along Pacific Highway are in need of repair. The lines were constructed in the 1960s. The pipe material of the lines is concrete and after years of cleaning by Hydro jetting (high pressure water blasting), the pipe walls have become thin. Exposed aggregate is evident in current video inspection reports. As further cleaning is needed, the pipe walls could become thinner and a pipe failure could occur. A pipe failure at this location would cause a significant traffic disruption on Pacific Highway since the line runs underneath the near curb southbound lane. To repair the existing line, a cured-in-place pipe (CIPP) process will be used. CIPP is a trenchless rehabilitation process used to repair existing pipelines. This will limit the traffic disruption in Pacific Highway compared to traditional dig and replace pipe repair methods which is also more expensive. The CIPP process involves a resin type liner that is placed within the pipe between two manholes. The liner is then cured resulting in a tight-fitting form, jointless and corrosion resistance liner for the pipe. The liner will also increase the structural integrity of the pipe which will extend the service life of the pipe. The city issued an Invitation to Bid for the work in late July and received three bids: •Insituform Technologies, LLC - $148,041 •Michels Corportation - $212,601 •Iron Horse, LLC - $328,280 •Engineer's Estimates - $258,980 The city was happy to receive two bids that were well below the engineer's estimate. This was potentially aided by the city's willingness to extend the schedule of work into next calendar year and allowing the contractor a more flexible timeframe to initiate and complete the work. Staff has completed a review of the bids and determined that Insituform Technologies, LLC has submitted the lowest responsible bid at $148,041. Staff finds no reason that Insituform Technologies would be ineligible for this work and thus recommends them for contract award consideration. OTHER ALTERNATIVES A stretch of sanitary sewer lines along Pacific Highway are in need of repair. The lines were constructed in the 1960s. The pipe material of the lines is concrete and after years of cleaning by Hydro jetting (high pressure water blasting), the pipe walls have become thin. Exposed aggregate is evident in current video inspection reports. As further cleaning is needed, the pipe walls could become thinner and a pipe failure could occur. A pipe failure at this location would cause a significant traffic disruption on Pacific Highway since the line runs underneath the near curb southbound lane. To repair the existing line, a cured-in-place pipe (CIPP) process will be used. CIPP is a trenchless rehabilitation process used to repair existing pipelines. This will limit the traffic disruption in Pacific Highway compared to traditional dig and replace pipe repair methods which is also more expensive. The CIPP process involves a resin type liner that is placed within the pipe between two manholes. The liner is then cured resulting in a tight-fitting form, jointless and corrosion resistance liner for the pipe. The liner will also increase the structural integrity of the pipe which will extend the service life of the pipe. The city issued an Invitation to Bid for the work in late July and received three bids: •Insituform Technologies, LLC - $148,041 •Michels Corporation - $212,601 •Iron Horse, LLC - $328,280 •Engineer's Estimates -$258,980 The city was happy to receive two bids that were well below the engineer's estimate. This was potentially aided by the city's willingness to extend the schedule of work into next calendar year and allowing the contractor a more flexible timeframe to initiate and complete the work. Staff has completed a review of the bids and determined that Insituform Technologies, LLC has submitted the lowest responsible bid at $148,041. Staff finds no reason that Insituform Technologies would be ineligible for this work and thus recommends them for contract award consideration. COUNCIL OR CCDA GOALS, POLICIES, MASTER PLANS DATES OF PREVIOUS CONSIDERATION This is the first time the Local Contract Review Board has discussed this contract. Fiscal Impact Cost: $148,041 Budgeted (yes or no): Yes Where Budgeted (department/program): Sanitary Sewer Fund Additional Fiscal Notes: The Sanitary Sewer Fund has $250,000 budget in FY 2018 for construction of this project. With a contract amount of$148,041 there are enough available appropriations to cover this work. Attachments No file(s) attached. AIS-3253 10. Business Meeting One Meeting Date: 09/05/2017 Length (in minutes): 5 Minutes Agenda Title: Consider Franchise Agreements for City of Sherwood, DBA Sherwood Broadband, and Constellation New Energy, Inc. Prepared For: Brian Rager Submitted By: Marissa Grass, Public Works Item Type: Motion Requested Meeting Type: Council Business Meeting - Main Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the City of Tigard enter into new franchise agreements with the City of Sherwood and Constellation New Energy, Inc.? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends council approve the two franchise agreements. KEY FACTS AND INFORMATION SUMMARY The city's Franchised Utilities Ordinance, Chapter 15.06 of the Tigard Municipal Code (TMC) provides the guidance for how the city will manage franchised utility companies who place their facilities in the public right of way (ROW). Section 15.06.060 states that the council shall grant by resolution a utility franchise to any person providing utility services which has submitted an application, meets the requirements of this chapter, and agrees to sign the city's standard franchise agreement without modification. The City of Sherwood (DBA Sherwood Broadband) has a small fiber line that runs from the City of Durham down Upper Boones Ferry Road to the area near 72nd Avenue and Cardinal Lane. Sherwood obtained a ROW permit from the city to get that line installed and now desires to obtain a franchise from Tigard. They have signed the standard franchise agreement. Constellation New Energy, Inc. (CNE) sells electricity at retail to customers in Tigard. CNE sells energy at retail that is produced by an electricity provider to end users; as such, CNE does not own any facilities nor have any employees in Tigard. They have signed the city's standard franchise agreement. Based on the fact that both entities have signed the standard franchise agreement, staff recommends the council approve both. OTHER ALTERNATIVES N/A COUNCIL OR CCDA GOALS, POLICIES, MASTER PLANS DATES OF PREVIOUS CONSIDERATION TBD Fiscal Impact Cost: N/A Budgeted (yes or no): N/A Where Budgeted (department/program):N/A Additional Fiscal Notes: Both entities will pay the Right of Way Usage Fee, as described in Section 15.06.100 of the Franchised Utility Ordinance. It is unknown at this time the level of revenue that will be generated from the Sherwood agreement. CNE pays the city about $1,000 every six months. Attachments CNE-Tigard Master Franchise Agreement Sherwood-Tigard Franchise Agreement 'PI iii <TIG-Mtli CITY OF TIGARD, OREGON FRANCHISE AGREEMENT THIS FRANCHISE AGREEMENT ("Agreement") is made and entered into by and between the City of Tigard, an Oregon municipal corporation, ("City") and Constellation New Energy, Inc. a Delaware corporation, ("Franchisee") qualified to do business in Oregon: RECITALS 1. Pursuant to Federal law, State statutes, and City Charter and local ordinances, the City is authorized to grant non-exclusive franchises to occupy the rights-of-way as defined in Chapter 15.06 of the Tigard Municipal Code ("TMC"),in order to place and operate a Utility System within the municipal boundaries of the City of Tigard ("Franchise Area"); and 2. Franchisee has requested a franchise to place and operate a telecommunications services (the"Utility System"),as defined in TMC 15.06.020,within the Franchise Area; and 3. The City has found that Franchisee meets all lawful requirements to obtain a franchise,and therefore approves the application. NOW,THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: AGREEMENT 1. GRANT OF AUTHORITY - The City grants Franchisee the non-exclusive right to occupy City rights-of-way to place and operate a Utility System for a term of ten (10) years from and after the Effective Date of this Agreement (the "Term"),except as set forth below. 2. AUTHORITY NOT EXCLUSIVE - This Agreement shall be nonexclusive, and is subject to all prior rights, interests, agreements, permits, easements or licenses granted by the City to any person to use the rights-of-way for any purpose whatsoever,including the right of the City to use same for any purpose they deem fit, including the same or similar purposes allowed Franchisee hereunder. The City may, at any time, grant to other persons authorization to use the rights-of-way for any purpose. This Agreement does not confer on Franchisee any right, title or interest in any right-of- way. 3. PERFORMANCE-During the term of this Agreement,Franchisee agrees to comply with all lawful terms and conditions of TMC Chapter 15.06,including but not limited to the permit and permit fee requirements set forth in TMC 15.06.200 and TMC Chapter 15.04, and the right-of-way usage fee set forth in TMC 15.06.100,the provisions of which are incorporated herein as though fully set forth. 4. CHANGE OF LAW;AMENDMENT OF FRANCHISE AGREEMENT a. It is the intent of the parties that this Agreement may be amended from time to time to conform to any changes in the controlling federal or state law or other changes material to this agreement. Each party agrees to bargain in good faith with the other party concerning such proposed amendments. This Agreement may be amended or terminated by the mutual consent of the parties and their successors-in-interest. Utility Franchise Agreement Page 1 of 3 City of Tigard,Oregon b. To the extent any lawful City rule, ordinance or regulation,including any amendment to the provisions of TMC Chapter 15.06,including any change to TMC 15.06.100,is adopted on a jurisdiction-wide basis and is generally imposed on similarly situated persons or entities, the rule, ordinance or regulation shall apply without need for amendment of this Agreement. The City shall provide Franchisee notice of any such change in local law. 5. TAXES - Nothing contained in this Agreement shall be construed to exempt Franchisee from any license, occupation, franchise or excise tax or assessment, which is or may be hereafter lawfully imposed on Franchisee. 6. INSURANCE - By the Effective Date of this Agreement, Franchisee shall provide a certificate of insurance that names the City as an additional insured and is otherwise consistent with the requirements of TMC 15.06.180. 7. SEVERABILITY - If any section, subsection, sentence, paragraph, term, or provision hereof is determined to be invalid, or unconstitutional by any court of competent jurisdiction, such determination shall have no effect on the validity of any other section, subsection, sentence, paragraph, term or provision hereof,all of which will remain in full force and effect for the term of the Agreement. If any material portion of the Agreement becomes invalid or unconstitutional so that the intent of the Agreement is frustrated, the parties agree to negotiate replacement provisions to fulfill the intent of the Agreement consistent with applicable law. 8. REMEDIES a. This Agreement shall be subject to termination as set forth in TMC 15.06.310,provided that the City complies with the requirements set forth in TMC 15.06.320 and 15.06.330. b. All remedies under this Agreement, including revocation of the Agreement, are cumulative and not exclusive, and the recovery or enforcement by one available remedy is not a bar to recovery or enforcement by any other such remedy. The City reserves the right to enforce the penalty provisions of any ordinance or resolution and to avail itself of any and all remedies available at law or in equity. Failure to enforce shall not be construed as a waiver of a breach of any term, condition or obligation imposed upon Franchisee by or pursuant to this Agreement. A specific waiver of a particular breach of any term,condition or obligation imposed upon Franchisee by or pursuant to this Agreement shall not be a waiver of any other,subsequent or future breach of the same or of any other term,condition or obligation, or a waiver of the term,condition or obligation itself. c. The right is hereby reserved to the City to adopt, in addition to the reservations contained herein and existing applicable ordinances,such additional regulations as it shall find necessary for the regulation of the right-of-way, provided that such regulations, by ordinance or otherwise, shall be reasonable and not in conflict with the rights herein granted. Franchisee shall, at all times during the life of this Agreement, be subject to all lawful exercise of the police power by the City, and to such reasonable regulations as the City may hereafter by resolution or ordinance provide. The City hereby reserves the right to exercise,with regard to this Agreement, all authority now or hereafter granted to the City by state statute or City charter, except where such authority may be modified or superseded by the Constitution of the State of Oregon or the Constitution of the United States. Utility Franchise Agreement Page 2 of 3 City of Tigard,Oregon IN • a I L(Mutt 9. ASSIGNMENT - All rights and privileges granted and duties imposed by this Agreement upon Franchisee shall extend to and be binding upon Franchisee's successors, legal representatives and assigns. This Agreement may not be transferred or assigned to another person unless such person is authorized under all applicable laws to own or operate the Utility System and the transfer or assignment is approved by all agencies or organizations required or authorized under federal or state laws to approve such transfer or assignment. Franchisee shall provide the City with written notice of any transfer or assignment of this Agreement within twenty(20) days of requesting approval from any state or federal agency. 10. NOTICE-Unless specifically provided otherwise herein,all notices shall be mailed,postage prepaid, to the following addresses or to such other addresses as Franchisee or the City may designate in writing: If to Franchisee: ATTN: Michael Kinasz Constellation New Energy, Inc. 10 S Dearborn Street, 51" Floor Chicago, IL 60603 312-394-4547 If to City: City of Tigard Attention: Marty Wine, City Manager 13125 SW Hall Blvd. Tigard, Oregon 97223 11. GOVERNING LAW -The law of the State of Oregon governs the validity of this Agreement, and its interpretation, performance and enforcement. Any action or suit to enforce or construe any provision of this Agreement by any party shall be brought in the Circuit Court of the State of Oregon for Washington County,or the United States District Court for the District of Oregon. 12. EFFECTIVE DA 1'F. -The effective date of this Agreement ("Effective Date") shall be the date it is fully executed by the City and Franchisee. CITY OF TIGARD FRANCHISEE M.1.. ) Y B : By: Mayor Date: Title: /len,,'" C -TG..)e Alun 1A-fC.(" Date: 41(6)I I/-- Utility Franchise Agreement Page 3 of 3 City of Tigard,Oregon UPIII TIGARD CITY OF TIGARD, OREGON FRANCHISE AGREEMENT THIS FRANCHISE AGREEMENT ("Agreement") is made and entered into by and between the City of Tigard, an Oregon municipal corporation, ("City") and the City of Sherwood, DBA. Sherwood Broadband an Oregon municipal corporation, ("Franchisee") qualified to do business in Oregon: RECITALS 1. Pursuant to Federal law, State statutes, and City Charter and local ordinances, the City is authorized to grant non-exclusive franchises to occupy the rights-of-way as defined in Chapter 15.06 of the Tigard Municipal Code ("TMC"),in order to place and operate a Utility System within the municipal boundaries of the City of Tigard ("Franchise Area");and 2. Franchisee has requested a franchise to place and operate a telecommunications services (the"Utility System"), as defined in TMC 15.06.020,within the Franchise Area; and 3. The City has found that Franchisee meets all lawful requirements to obtain a franchise,and therefore approves the application. NOW,THEREFORE,in consideration of the mutual promises contained herein, the parties agree as follows: AGREEMENT 1. GRANT OF AUTHORITY - The City grants Franchisee the non-exclusive right to occupy City rights-of-way to place and operate a Utility System for a term of ten (10) years from and after the Effective Date of this Agreement (the "Term"), except as set forth below. 2. AL'fl-IORITY NOT EXCLUSIVE - This Agreement shall be nonexclusive, and is subject to all prior rights,interests, agreements, permits, easements or licenses granted by the City to any person to use the rights-of-way for any purpose whatsoever,including the right of the City to use same for any purpose they deem fit, including the same or similar purposes allowed Franchisee hereunder. The City may, at any time, grant to other persons authorization to use the rights-of-way for any purpose. This Agreement does not confer on Franchisee any right, title or interest in any right-of- way. 3. PERFORMANCE-During the term of this Agreement,Franchisee agrees to comply with all lawful terms and conditions of TMC Chapter 15.06,including but not limited to the permit and permit fee requirements set forth in TMC 15.06.200 and TMC Chapter 15.04, and the right-of-way usage fee set forth in TMC 15.06.100,the provisions of which are incorporated herein as though fully set forth. 4. CHANGE OF LAW: AMENDMENT OF FRANCHISE AGREEMENT a. It is the intent of the parties that this Agreement may be amended from time to time to conform to any changes in the controlling federal or state law or other changes material to this agreement. Each party agrees to bargain in good faith with the other party concerning such proposed amendments. This Agreement may be amended or terminated by the mutual consent of the parties and their successors-in-interest. Utility Franchise Agreement Page 1 of 3 City of Tigard.Oregon :" t TIGARD e b. To the extent any lawful City rule,ordinance or regulation,including any amendment to the provisions of TMC Chapter 15.06,including any change to TMC 15.06.100,is adopted on a jurisdiction-wide basis and is generally imposed on similarly situated persons or entities, the rule, ordinance or regulation shall apply without need for amendment of this Agreement. The City shall provide Franchisee notice of any such change in local law. 5. TAXES - Nothing contained in this Agreement shall be construed to exempt Franchisee from any license, occupation, franchise or excise tax or assessment, which is or may be hereafter lawfully imposed on Franchisee. 6. INSURANCE - By the Effective Date of this Agreement, Franchisee shall provide a certificate of insurance that names the City as an additional insured and is otherwise consistent with the requirements of TMC 15.06.180. 7. SEVERABILITY - If any section, subsection, sentence, paragraph, term, or provision hereof is determined to be invalid, or unconstitutional by any court of competent jurisdiction, such determination shall have no effect on the validity of any other section, subsection, sentence, paragraph, term or provision hereof, all of which will remain in full force and effect for the term of the Agreement. If any material portion of the Agreement becomes invalid or unconstitutional so that the intent of the Agreement is frustrated, the parties agree to negotiate replacement provisions to fulfill the intent of the Agreement consistent with applicable law. 8. REMEDIES a. This Agreement shall be subject to termination as set forth in TMC 15.06.310,provided that the City complies with the requirements set forth in TMC 15.06.320 and 15.06.330. b. All remedies under this Agreement, including revocation of the Agreement, are cumulative and not exclusive, and the recovery or enforcement by one available remedy is not a bar to recovery or enforcement by any other such remedy. The City reserves the right to enforce the penalty provisions of any ordinance or resolution and to avail itself of any and all remedies available at law or in equity. Failure to enforce shall not be construed as a waiver of a breach of any term, condition or obligation imposed upon Franchisee by or pursuant to this Agreement. A specific waiver of a particular breach of any term,condition or obligation imposed upon Franchisee by or pursuant to this Agreement shall not be a waiver of any other,subsequent or future breach of the same or of any other term,condition or obligation, or a waiver of the term, condition or obligation itself. c. The right is hereby reserved to the City to adopt, in addition to the reservations contained herein and existing applicable ordinances,such additional regulations as it shall find necessary for the regulation of the right-of-way, provided that such regulations, by ordinance or otherwise, shall be reasonable and not in conflict with the rights herein granted. Franchisee shall, at all times during the life of this Agreement, be subject to all lawful exercise of the police power by the City, and to such reasonable regulations as the City may hereafter by resolution or ordinance provide. The City hereby reserves the right to exercise,with regard to this Agreement, all authority now or hereafter granted to the City by state statute or City charter, except where such authority may be modified or superseded by the Constitution of the State of Oregon or the Constitution of the United States. Utility Franchise Agreement Page 2 of 3 City of Tivard.Oregon 111 TIGAI D 9. ASSIGNMENT - All rights and privileges granted and duties imposed by this Agreement upon Franchisee shall extend to and be binding upon Franchisee's successors, legal representatives and assigns. This Agreement may not be transferred or assigned to another person unless such person is authorized under all applicable laws to own or operate the Utility System and the transfer or assignment is approved by all agencies or organizations required or authorized under federal or state laws to approve such transfer or assignment. Franchisee shall provide the City with written notice of any transfer or assignment of this Agreement within twenty(20)days of requesting approval from any state or federal agency. 10. NOTICE-Unless specifically provided otherwise herein,all notices shall be mailed,postage prepaid, to the following addresses or to such other addresses as Franchisee or the City may designate in writing: If to Franchisee: City of Sherwood DBA. Sherwood Broadband Attn: Brad Crawford 22560 SW Pine St Sherwood, OR 97140 503 625-4203 If to City: City of Tigard Attention: Marty Wine,City Manager 13125 SW Hall Blvd. Tigard, Oregon 97223 11. GOVERNING LAW-The law of the State of Oregon governs the validity of this Agreement,and its interpretation, performance and enforcement. Any action or suit to enforce or construe any provision of this Agreement by any party shall be brought in the Circuit Court of the State of Oregon for Washington County,or the United States District Court for the District of Oregon. 12. EFFECTIVE DATE -The effective date of this Agreement ("Effective Date") shall be the date it is fully executed by the City and Franchisee. CITY OF TIGARD FRANCHISEE By: By: •1 Mayor j Date: Title: I C / i' Date: C7/6/7-7 Utility Franchise Agreement Page 3 of 3 City of Ticrard flrPc nn City of Tigard, Oregon Affidavit of Posting A In the Matter of the Proposed Ordinance(s) T I G A R D STATE OF OREGON ) County of Washington ) ss. City of Tigard ) I, 1(j Ru-ra Li pl&' ,being first duly sworn,by oath, depose and say: I posted in the following public and conspicuous places, a copy of Ordinance Number(s) 11-9-i which were adopted at the City Council meeting of q/547617 , on the 5111 day of 6e nbei" , 2012. 1. Tigard City Hall, 13125 SW Hall Blvd.,Tigard, Oregon 2. Tigard Public Library, 13500 SW Hall Blvd.,Tigard, Oregon 3. Tigard Permit Center, 13125 SW Hall Blvd.,Tigard, Oregon Signature whoPerf oed Posting Subscribed and sworn before me this_��qday of,,4fir' ';20 2by ke--14 i�'�, Sf?�_ ()FFIGIAL STAMP - . CAROL ANN KRAGER Notary Public-State of Oigon 744 NOTARY PUBLIC - OREGON r x; COIMISSION NO. 924954 MY COMMISSION EXPIRES FEBRUARY 10,2018 I:\ADM\CITY RECORDERS\FORMS\AFFIDAVIT OF POSTING-ORDINANCE.DOC