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City Council Minutes - 09/26/2017 City of'Tigard Tigard City Council Meeting Minutes September 26, 2017 STUDY SESSION Council Present: Mayor Cook,Councilor Goodhouse, Councilor Woodard, Councilor Anderson and Council President Snider A. EXECUTIVE SESSION -At 6:30 p.m. the Tigard City Council entered into an Executive Session. The Executive Session ended at 7:05 p.m. B. TOWN CENTER DEVLOPMENT AGENCY-POTENTIAL URBAN RENEWAL INVESTMENT IN TRIANGLE AFFORDABLE HOUSING DEVELOPMENT Redevelopment Project Manager Farrelly gave the staff report and said Community Partners for Affordable Housing Executive Director Rachael Duke and Assistant Director Shannon Wilson were in attendance to discuss an affordable housing project in the Tigard Triangle. CPAH owns a site at 11090 SW 68`h Parkway in the Tigard Triangle Urban Renewal District. The$14 million Red Rock Commons project would provide 48 units to serve a mix of tenants. Mr. Farrelly said the Portland metro region is in a housing crisis with affordable rents doubling in the last year. He said CPAH has put together much of the complicated financing that goes into building a long-term affordable housing project. They are applying for HOME funds which are federal dollars that go through Washington County and there is a gap in the total funding. CPAH is requesting a local investment from urban renewal funds. Mr. Farrelly said the report accompanying the urban renewal plan for the Tigard Triangle adoption process anticipated expending money for redevelopment assistance. Staff believes that investment in this project is consistent with the urban renewal plan. The Tigard Transportation Advisory Commission supported this investment,in principle. If the Town Center Development Agency(ICDA) Board is supportive,a resolution would be prepared authorizing Executive Director Wine to sign a letter of support and a future TCDA Board action would authorize the amount. Director Snider clarified that staff was not asking for approval of a specific amount tonight but was seeking approval of the concept. Director Goodhouse asked if they were requesting the entire gap amount. Mr. Farrelly said the gap is currently$470,000 and a local contribution would partially fill that. He said staff has considered the amount of tax increment financing(TIF) coming in over the next five years and think that an amount of$100,000-$200,000 is workable. CPAH Executive Director Duke said another aspect is meeting the needs of the community. They plan to build mostly one-bedroom units but may add some two-bedroom units TIGARD CITY COUNCIL MEETING MINUTES—September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 1 of 9 depending on specifications from funding sources. She said they could market to existing Tigard residents who may face rising rents or eviction due to being displaced by gentrification or light rail alignment. One half of the units will be affordable to low-income people. Section 8 vouchers will be connected to some apartments,making them affordable to seniors and veterans and those with disabilities. A partnership with Luke-Dorf will allow some residents with mental health issues to find housing there. CPAH will provide services to make sure residents have access to community resources. Chair Cook asked for definitions and percentages of income used to define low-income, workforce and affordable housing. CPAH Executive Director Duke said all of the units will have some sort of tax credit financing which means that units will be at either 50 or 60 percent of median family income housing except that some units will be more deeply affordable than that. At 60 percent of median family income,a one-bedroom apartment will be around$750 per month.That will be for someone who hopefully,has a job.They have held conversations with Portland Community College about computer training and workforce programs. Some units will have Federal Housing Authority assistance tied to them,allowing even more affordability.They will have screening criteria so the people getting into the 60 percent units have the income to support that. She said workforce housing is defined as 60 percent of median income,which for a single person would be around$30,000 annually. Director Snider asked about the construction quality of the affordable housing. Ms.Duke said the same development team used to build the Knoll is involved. She said their goal is always to build affordable housing that is aesthetically pleasing but also cost effective,because they are under some constraints. She shared a site plan. Chair Cook asked how sure staff was that the tax increment financing projected is correct. He noted that Compass Oncology in the Triangle went to LUBA and has been remanded back to council so their timeline has shifted somewhat. Redevelopment Project Manager Farrelly said the Tigard Triangle District is much bigger than the downtown urban renewal area. ECO NW did the projections and they have been very accurate. Chair Cook asked if the words,"assist in the development of affordable and workforce housing"mean helping to develop or giving money to help them develop. He said helping to build something may not be the intent. When we look at urban renewal,there have to be improvements such as half-street improvements and trail improvements that benefit the public. That would be a requirement of any business. Director Snider has how this differs from the Atwell apartment efforts. Chair Cook agreed but said the agency also said the second and third development would not get the same assistance as a catalyst project. He said this project is not redevelopment and will not grow the tax increment funding. He said there is still a discussion on SDCs and annual tax abatement yet to be held and this may come into play and not even need to use any urban renewal money. Community Development Director Asher said the model where we take public dollars and use them not as a direct loan or grant is what happened with the Knoll and that could happen here as well. He pushed back on the notion that the project would not add value to the Triangle. He said it will add value to the street,to the neighborhood and to the district. He said there will be non-profit development, such as education and parks,in the Triangle and none of that will be paying taxes. He added that the affordability aspect of this project is probably the TIGARD CITY COUNCIL MEETING MINUTES— September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 2 of 9 highest public benefit that could be delivered to the district. He said this is why the city should join with the state and federal agencies to make this affordable housing happen because without the city's help this will not happen at all. Director Goodhouse said if the city helps build this with the first of the urban renewal money he preferred existing Tigard renters to have priority. Ms. Duke said CPAH must follow fair housing laws but can certainly market to those living in Tigard. She said they can help agencies working with people in Tigard to get the word out when housing wait lists open. Director Anderson asked who will manage the housing and Ms. Duke said CPAH owns and asset-manages their buildings but contracts on-site management. They currently contract with Income Property Management. Director Anderson said he would like to see more family units to address that need in the Tigard community. Ms. Duke said the site is small and they want to make sure they have enough parking. She said while they are open to adding some two-bedroom units there is not enough time to change the plan to add family units. Director Anderson said he supports the project. Assistant City Manager Zimmerman said since he started working in Tigard he has heard some people shy away from what the Triangle could become,comparing it to Portland but then there are some that want it to be like Portland. A misnomer is that the Pearl District is a luxury area but there is a significant amount of affordable units that did not happen because of the market;they happened because of contributions. He said another consideration is that with affordable and workforce housing workers can afford to live in the same neighborhood where they are employed. Ms. Duke said the main thing for them is that they can demonstrate to their other funders that there is a local commitment and contribution. She said it makes a big difference in making their application successful. Executive Director Wine said she heard support from council for the concept and the form and amount of the assistance will be determined later. A resolution will be coming forward at a future meeting. Due to the time,Liaison Reports and Administrative Items were postponed until the next meeting. 1. BUSINESS MEETING ,I 2. A. At 7:33 p.m. Mayor Cook called the City Council business meeting to order. B. City Recorder Krager called the roll. Present Absent Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ TIGARD CITY COUNCIL MEETING MINUTES—September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.dgard-or.gov I Page 3 of 9 C. Pledge of Allegiance—Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Call to Council and Staff for Non-Agenda Items—None. 2. CITIZEN COMMUNICATION A. Follow-up to Previous Citizen Communication Assistant City Manager Zimmerman gave follow-up to previous citizen communication regarding the AR chip seal that was applied to Summer Crest and Manzanita Streets. These streets would not have received an overlay and the trial application was being evaluated as an additional solution to restore neighborhood streets to make them eligible for future slurry seal treatment. He said the product application relies on a mixture of asphalt and rubber applied to the street with an aggregate applied and then rolled into the mixture. The aggregate presents initially as a rough surface and is intended to smooth over time with use,though it will likely be rougher in texture than a traditional pavement overlay. Assistant City Manager Zimmerman said the benefits are that it costs $100,000 per mile of AR chip seal versus $500,000 per mile for pavement overlay. It has the ability to restore deteriorated roads that slurry seal cannot. This gives the city significant ability to restore lower volume streets not under consideration for a full pavement overlay. It provides better traction overall and should eliminate black ice during winter driving conditions. The application allows for minimal disruption to neighborhoods and can be driven and parked on within hours rather than days. Concerns about this product include a change to neighborhood streets in terms of character and culture. The rough texture,loose gravel and tracking of the AP substance is less appealing than pavement overlays and similar to slurry seal concerns. Wear patterns have emerged on some streets. The contractor did not apply the substance uniformly. In some places the substance went all the way to the curb and in others,space remained. When AR chip seal is applied over existing potholes or large cracks they immediately re-present and are most susceptible to loose gravel. He said the project continues to be evaluated to see if it will restore deteriorated streets to a level that makes them eligible for slurry seals in the future. Assistant City Manager Zimmerman said the city received emails,phone calls and public testimony at council meetings regarding the AR chip seal. He said staff believes they have responded to every communication.After recognizing that similar concerns were coming in from multiple residents,the city mailed an FAQ document and an invitation to a September 18 neighborhood meeting. Mr. Zimmerman said he,the city engineer,and the street maintenance program manager dialogued with neighbors about their concerns and the decisions behind why this product was used. Much was learned at the neighborhood meeting,both about on the ground concerns and how well the city is communicating with residents. TIGARD CITY COUNCIL MEETING MINUTES— September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 4 of 9 Mr. Zimmerman said future steps include communication improvements to residents regarding this product if it is used in the future, continued solicitation of public input, including a survey around January after the product has been in use for about six months. The Public Works Department will continue their structural evaluation of the product and consider changes to reduce roughness,loose gravel,uneven application and whether continued use is beneficial to the city. He added that City Management and Public Works will incorporate this information and evaluate whether future use of AR chip seal is in the best interests of the public. If the product is structurally sound,it is likely that the city will adapt a second phase to chip seal projects that includes a slurry seal the following year after the AR chip seal is applied. If this multiple phase is adopted,the overall costs will be$150,000/mile which is 70 percent more affordable. Mayor Cook clarified that these streets would not have received a full overlay for several years and said he understood that the streets being slurry sealed next year had lasted nine years. Assistant City Manager Zimmerman said those streets were not under consideration for a pavement overlay and went for nine years because they held up better than expected. B. Citizen Communication—Sign-up Sheet. Amy Chamberlain, 11825 SW Summer Crest Drive,Tigard,OR,97223,thanked Assistant City Manager Zimmerman, Streets and Transportation Senior Engineer McCarthy and Councilor Goodhouse for reaching out. Although residents felt the communication was delayed, she said she understands that staff was trying to do more research prior to responding. She said many residents are still upset but feel that concerns have received a response. She asked that the survey is done well in advance of next year's street. She asked the council to come view the chip size and shoddy workmanship;this changed the culture of their neighborhood. There was nothing wrong with the road and people would have been happy with the status quo. Their road has been compromised. Dan Murphy and Sharon Maroney,8500 SW Colony Creek Road,Tigard, OR, 97224,came to bring Council up to speed on the planned expansion of the Broadway Rose Theater.Mr. Murphy said they have discovered there are so many more activities and uses for the building and want to renovate their space to accommodate a rehearsal hall,costume shop and more office space as their staff has grown. He noted that meeting space is at a premium in Tigard and Washington County and other foundation members such as Just Compassion and the Rotarians use space in the Broadway Rose for meetings. Council President Snider asked if the city pays to use the Broadway Rose Theater and Mr.Murphy said no. Mr. Murphy requested Council consideration of waiving all system development fees, building permit fees and other related expenses beginning with the pre-application fee. Mayor Cook said the city is currently considering editing the code as it relates to system development charges for non-profits. He noted that Council can waive other permit fees. They have waived some fees for as little as$300 and some as high as$40,000. Each waiver request is considered individually. He noted that the city helped with capital to build it and TIGARD CITY COUNCIL MEETING MINUTES— September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 5 of 9 helps annually with operations and he will have to wait to see what staff determines the costs to be. City Manager Wine said as the pre-application advances and it is learned what the fees are, council will be kept apprised so they can move forward with this process or an alternative. 3. CONSENT AGENDA: (Tigard City Council) — A. APPROVE CITY COUNCIL MINUTES • July 11,2017 • July 25,2017 • August 22,2017 • September 5,2017 B. CONSIDER AUTHORIZING A THIRD AMENDMENT TO THE LASICH PROPERTY CONTRACT OF SALE AND ESCROW INSTRUCTIONS Councilor Anderson moved for approval of the Consent Agenda and Council President Snider seconded the motion. Mayor Cook conducted a vote and the motion passed unanimously. Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ 4. CONSIDER RESOLUTION AUTHORIZING A CDBG GRANT APPLICATION FOR METZGER SCHOOL PARK Associate Planner Warren presented the staff report and provided background on a proposed Community Development Block Grant (CDBG) application for$59,082 with a city match of $41,358. He pointed out that the amounts increased since the agenda item summary was submitted due to the receipt of better cost estimates as the scope was refined. The grant will fund a wellness facility at Metzger School Park. He reminded Council that the City of Tigard entered into a joint use agreement for use of a portion of the Metzger Elementary School grounds as a city park. Funds for this improvement at Metzger School Park have been included in the capital improvement plan and this is where the match for this grant is budgeted. This will allow the city to use money already earmarked for the park towards a matching grant.The grant application will specifically fund installation of a nature play area, fitness stations and walking paths to provide connectivity within the park and to the surrounding neighborhood. TIGARD CITY COUNCIL MEETING MINUTES— September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.dgard-or.gov I Page 6 of 9 Associate Planner Warren said this is the second phase of a health and wellness initiative in the park. The first phase was the community gardens which provide an opportunity for fresh food for area residents. The wellness phase of this project will provide active play and fitness facilities. CDBG grants are aimed at specifically providing support for infrastructure and facilities in moderate to low income neighborhoods. The neighborhood directly surrounding the school is designated as a low income neighborhood based on census data. He said studies have shown a higher prevalence of childhood obesity in lower income areas and this project is intended to help adjust this issue by providing healthy options and supportive infrastructure. Staff recommends approval of this resolution. Mayor Cook mentioned that there had been previous discussion about using CDBG grants for another park and asked if this replaces it. City Manager Wine commented that as staff performed due diligence related to the other park property it was determined that there was not enough information to satisfy the requirements of a CDBG grant application at this time. Mayor Cook said it is confusing to the public to have something called Metzger Park,a Washington County park not in the city limits,and Metzger School Park. He suggested in the meantime calling it Tigard Park at Metzger School. He noted that there was another park that for ten years was called Tigard Park. Cook Park used to be called Tigard Park. The name is not currently in use and could be used again as a placeholder. Councilor Goodhouse commented that the healthy match offered by the city for this CDBG grant gives it a better chance of being considered. Council President Snider moved to approve Resolution No. 17-41. Councilor Goodhouse seconded the motion. City Recorder Krager read the number and title of the resolution. Resolution No. 17-41 A RESOLUTION AUTHORIZING A COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG)APPLICATION FOR FACILITIES IMPROVEMENTS AT METZGER SCHOOL PARK Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Mayor Cook conducted a vote and Resolution No. 17-41 passed unanimously. 5. CONSIDER SANITARY SEWER LATERAL GRANT FUNDING MAXIMUM Utility Manager Goodrich presented the staff report. Council is being asked to set the maximum funding limit for up to $5,000 as a financial incentive to replace damaged or failing sanitary sewer laterals in the public right of way.Administrative Rule 12.01.080-10-01 provided for a grant TIGARD CITY COUNCIL MEETING MINUTES— September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.dgard-or.gov I Page 7 of 9 program and was adopted in May 2017. The Sanitary Fund budgets $20,000 for the program each year,which should allow up to four lateral replacement grants if based on a$5,000 maximum. The funds are first come, first served and are prescriptive in nature to ensure appropriate use of public funds. This includes application forms and final payment. The city does not reimburse contractors directly. There are provisions for appeals and the city engineer can make the decision on an appeal. Staff is recommending council,by motion,approve a maximum funding limit for up to$5,000 for approved individual applications. Council President Snider noted it was not clear to him if it was by fiscal or calendar year and thought that should be clarified on the Frequently Asked Questions page. Utility Manager Goodrich said that question is valid and he will change it to read,"fiscal year,July—June."He said as the city gains experience with this new program,budgets will be adjusted accordingly which includes Council consideration of funding level adjustments. Mayor Cook asked if homeowners coming in to get a permit would be informed of this grant availability. Utility Manager Goodrich said public outreach was planned to let people know it is in Place. Council President Snider said staff(both sewer division and permit center employees) should be directed to mention this program to people who might qualify.Mr. Goodrich said he will make sure that happens,as well as putting information in Cityscape and on the website. Council President Snider moved to approve a maximum funding limit for individual applications for the city's sanitary sewer lateral grant program of$5,000. Councilor Anderson seconded the motion. Mayor Cook conducted a vote and the motion passed unanimously. Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ 6. NON AGENDA ITEMS 7. EXECUTIVE SESSION None. 8. ADJOURNMENT At 8:15 p.m. Councilor Anderson moved for adjournment. Councilor Goodhouse seconded the motion and all voted in favor. TIGARD CITY COUNCIL MEETING MINUTES— September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 8 of 9 Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Carol A. Krager, City R order Attest: John L. ok,Mayor Date: ,4r1,� TIGARD CITY COUNCIL MEETING MINUTES— September 26, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 9 of 9