Loading...
City Council Packet - 12/18/2018 514 ■ II City of Tigard Tigard Business Meeting—Agenda TIGARD TIGARD CITY COUNCIL BUSINESS / WORKSHOP MEETING MEETING DATE AND TIME: December 18,2018 - 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: httD://www.tieard-or.gov/citv hall/council meeting.Dho CABLE VIEWERS: The regular City Council meeting is shown live on Channel 28 at 7:30 p.m. The meeting will be rebroadcast at the following times on Channel 28: Thursday 6:00 p.m. Sunday 11:00 a.m. Friday 10:00 p.m. Monday 6:00 a.m. City of Tigard Tigard Business Meeting-Agenda TIGARD TIGARD CITY COUNCIL BUSINESS /WORKSHOP MEETING MEETING DATE AND TIME: December 18,2018 - 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: (Tigard City Council) These items are considered routine and may be enacted in one motion without separate discussion. Anyone may request that an item be removed by motion for discussion and separate action. Motion to: A. RESOLUTION THANKING CITY COUNCILOR MARC WOODARD FOR HIS SERVICE B. RESOLUTION THANKING MAYOR COOK FOR HIS SERVICE TO TIGARD C. APPROVE CITY COUNCIL MINUTES: •October 30, 2018 •November 13,2018 •November 20,2018 •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. LOCAL CONTRACT REVIEW BOARD - CONSIDER FANNO CREEK TRAIL ALIGNMENT STUDY CONTRACT AWARD 6:35 p.m. estimated time 5. CONSIDER RESOLUTION TO DELEGATE AUTHORITY TO HOLD A PUBLIC MEETING ON AFFORDABLE HOUSING 6:40 p.m. estimated time 6. JOINT MEETING WITH THE TIGARD BUDGET COMMITTEE 6:50 p.m. estimated time 7. EXTERNAL FINANCIAL AUDIT AND CAFR PRESENTATION WITH MOSS ADAMS 7:30 p.m. estimated time 8. CONSIDER A LONGTERM WATER SERVICE AGREEMENT WITH THE CITY OF DURHAM AND THE TIGARD WATER DISTRICT 8:00 p.m. estimated time 9. CONSIDER CHANGES TO THE EMPLOYMENT CONTRACTS FOR THE CITY MANAGER AND CITY ATTORNEY 9:00 p.m. estimated time 10. NON AGENDA ITEMS 11. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 12. ADJOURNMENT 9:15 p.m. estimated time AGENDA ITEM NO. 2 B - CITIZEN COMMUNICATION DATE: December 18, 2018 (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: ST-L✓� (A-Lt. ti)/3 1 `i Pc- �1za'' ( r c/E "/i x Also,please spell your name as it sounds,if it will _ help the presiding officer pronounce: C C l , 4-1041) Address 3 I 3 I Fhltis ( 4 1 Dii I City 1- 6- State O2 `` Zip ' 7 i I E Phone No.(c G L. (yam 0 3s i-1�c)e Na e: i I /4..1/ ff / enno n4� 0T lso,please spell your name as it sounds,if it will help the presiding officer pronounce: l Address /5.36 0 SIR) 74 a 114.e apt c s le vl j City ti's Gi c 4'/ -r State b Zip j 7Z?;-1 �Z I V v % 4 (AJ I $'r¢t 4i Phhope No. 6-0 3 ? i' 7 7- 37 _ /Name: C{7c( C)L 1 ) V Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address Zi(.7e,/c3 < / AVE' City i - State Zip Phone No. 5°:5)-- 9 6 L' " �( CITIZEN COMMUNICATION I:\ADM\CITY RECORDERS\000 City Recorder-Records Resources and Policies\CCSignup\2018\citizen communication 181204.doc AIS-3696 3. A. Business Meeting Meeting Date: 12/18/2018 Length (in minutes): 5 Minutes Agenda Title: Resolution thanking City Councilor Marc Woodard for his Service Prepared For: Joanne Bengtson, City Management Submitted By: Joanne Bengtson, City Management Item Type: Motion Requested Meeting Type: Consent Resolution Agenda Public Hearing: No Publication Date: Information ISSUE Should the City Council thank Councilor Marc Woodard for his eight years of service? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of the resolution. KEY FACTS AND INFORMATION SUMMARY Following in the family tradition of service to the citizens of Tigard, City Councilor Marc T. Woodard is finishing his second term of office, completing eight years of dedicated service to the community. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A 4 .< .ems .... ,.. .m,w ...« .. .. ._ ... .. ... .. ... .... ..... ......,+ Attachments Resolution of Thanks for Councilor Woodard CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- A RESOLUTION THANKING CITY COUNCILOR MARC WOODARD FOR HIS OUTSTANDING SERVICE TO THE CITY OF TIGARD WHEREAS, Marc T. Woodard has served as a Tigard City Councilor since January 1, 2011 through December 31, 2018; and WHEREAS, over the course of Councilor Woodard's eight years of service, he helped the city recover from challenges triggered by a national recession, contributed to regional conversations about transportation planning, championed the creation of public private sector partnerships to create long-term investments in economic development; and WHEREAS, during his two terms in office, Councilor Woodard tirelessly advocated for improvements within the Downtown Tigard Urban Renewal District, as well as helping to create a new,voter-approved Urban Renewal District in the Tigard Triangle; and WHEREAS,in partnership with Business Oregon, Councilor Woodard strongly supported the creation of the Tigard Enterprise Zone as an economic development tool that encourages local businesses to grow by investing in new facilities and new employees; and WHEREAS, his commitment to addressing the needs of Tigard's homeless population led to the creation of a Homelessness Task Force that joined forces with healthcare professionals and faith- based providers in the region to address the needs of this under-served population, and he championed the city's contributions to a regional conversation about affordable housing as a major component of attracting business and a qualified workforce to the region; and WHEREAS, Councilor Woodard's greatest achievements and lasting legacy come from his strong advocacy of Parks and Recreation services and opportunities for Tigard residents. With Councilor Woodard's guidance, Tigard continued to strategically acquire park and greenspace using funds from the city's voter-approved $17 million Park and Open Space bond, preserving natural areas for residents and visitors to enjoy for generations to come; and WHEREAS, Councilor Woodard's tireless support for adoption and implementation of the city's Parks and Recreation Master Plan lead to the creation of a new quarterly Recreation Guide that gathered the community's wide-ranging recreation providers and community event opportunities into one publication for residents to sample; and WHEREAS, his passion for walking and connecting with residents led to a strategic vision to make Tigard the most walkable community in the Pacific Northwest where people of all ages and abilities enjoy healthy and interconnected lives; and RESOLUTION NO. 18- Page 1 WHEREAS, his support for physical activity and transportation options led to a city partnership with Portland State University's School of Urban Studies and Planning for a cornerstone project studying Tigard's neighborhood walkability and plans for implementing alternative transportation modes; and WHEREAS, Councilor Woodard contributed his time, energy and ideas to the creation of the River Terrace Community Plan, designed to welcome new residents to the city he loves and address everything needed for a community of distinction on Tigard's western border; and WHEREAS, not only did he dedicate 424 Tuesday evenings to serving as a City Councilor, he gave additional time, talent and wisdom to his community as City Council representative to the Intergovernmental Water Board, Park& Rec Advisory Board, Committee for Community Engagement, Metropolitan Area Communications Commission, Tigard Transportation Advisory Committee, Tigard Budget Committee, City Center Development Agency, the Mayor's Appointment Advisory Committee, the Washington County Coordinating Committee and the Clackamas River Water Providers Consortium Board— always with the goal of ensuring the best future for Tigard and its citizens. NOW,THEREFORE, BE IT RESOLVED by the City Council that: SECTION 1: The Tigard City Council, residents and city staff, in grateful appreciation for his contributions to the community, hereby recognize Councilor Woodard for his meritorious and dedicated service to the city. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2018. Jason B. Snider, Council President City of Tigard ATTEST: Carol A. Krager, City Recorder RESOLUTION NO. 18- Page 2 SUPPLEMENTAL PACKET CITY OF TIGARD, OREGON FOR 1�Il cS' "8 ' 'a. TIGARD CITY COUNCIL ,ATE OF MEETING) RESOLUTION NO. 18- A RESOLUTION THANKING CITY COUNCILOR MARC WOODARD FOR HIS OUTSTANDING SERVICE TO THE CITY OF TIGARD WHEREAS, Marc T. Woodard has served as a Tigard City Councilor since January 1, 2011 through December 31, 2018; and WHEREAS, over the course of Councilor Woodard's eight years of service, he helped the city recover from challenges triggered by a national recession, contributed to regional conversations about transportation planning, championed the creation of public private sector partnerships to create long-term investments in economic development; and WHEREAS, during his two terms in office, Councilor Woodard tirelessly advocated for improvements within the Downtown Tigard Urban Renewal District, as well as helping to create a new,voter-approved Urban Renewal District in the Tigard Triangle; and WHEREAS, in partnership with Business Oregon, Councilor Woodard strongly supported the creation of the Tigard Enterprise Zone as an economic development tool that encourages local businesses to grow by investing in new facilities and new employees; and WHEREAS, his commitment to addressing the needs of Tigard's homeless population led to the creation of a Homelessness Task Force that joined forces with healthcare professionals and faith- based providers in the region to address the needs of this under-served population, and he championed the city's contributions to a regional conversation about affordable housing as a major component of attracting business and a qualified workforce to the region; and WHEREAS, Councilor Woodard's greatest achievements and lasting legacy come from his strong advocacy of Parks and Recreation services and opportunities for Tigard residents. With Councilor Woodard's guidance,Tigard continued to strategically acquire park and greenspace using funds from the city's voter-approved $17 million Park and Open Space bond, preserving natural areas for residents and visitors to enjoy for generations to come; and WHEREAS, Councilor Woodard's tireless support for adoption and implementation of the city's Parks and Recreation Master Plan lead to the creation of a new quarterly Recreation Guide that gathered the community's wide-ranging recreation providers and community event opportunities into one publication for residents to sample; and WHEREAS, his passion for walking and connecting with residents led to a strategic vision to make Tigard the most walkable community in the Pacific Northwest where people of all ages and abilities enjoy healthy and interconnected lives; and RESOLUTION NO. 18- Page 1 WHEREAS, his support for physical activity and transportation options led to a city partnership with Portland State University's School of Urban Studies and Planning for a cornerstone project studying Tigard's neighborhood walkability and plans for implementing alternative transportation modes; and WHEREAS, Councilor Woodard contributed his time, energy and ideas to the creation of the River Terrace Community Plan, designed to welcome new residents to the city he loves and address everything needed for a community of distinction on Tigard's western border; and WHEREAS, Councilor Woodard contributed his time as the Planning Commission Liaison in 2011-2012 that laid the groundwork for the future development of the Tigard Triangle, he championed code rewrites, transportation improvements, and details that will attract business, residents and visitors to a vibrant, thriving and regional attraction for years to come; and WHEREAS, not only did he dedicate 424 Tuesday evenings to serving as a City Councilor, he gave additional time, talent and wisdom to his community as City Council representative to the Intergovernmental Water Board, Park& Rec Advisory Board, Committee for Community Engagement, Metropolitan Area Communications Commission, Tigard Transportation Advisory Committee, Tigard Budget Committee, City Center Development Agency, the Mayor's Appointment Advisory Committee, the Washington County Coordinating Committee and the Clackamas River Water Providers Consortium Board—always with the goal of ensuring the best future for Tigard and its citizens. NOW, THEREFORE, BE IT RESOLVED by the City Council that: SECTION 1: The Tigard City Council, residents and city staff,in grateful appreciation for his contributions to the community, hereby recognize Councilor Woodard for his meritorious and dedicated service to the city. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2018.Jason B. Snider, Council President City of Tigard ATTEST: Kelly Burgoyne, Deputy City Recorder RESOLUTION NO. 18- Page 2 AIS-3694 3. B. Business Meeting Meeting Date: 12/18/2018 Length (in minutes): 5 Minutes Agenda Title: Resolution Thanking Mayor Cook for his Service to Tigard Prepared For: Joanne Bengtson, City Management Submitted By: Joanne Bengtson, City Management Item Type: Motion Requested Meeting Type: Consent Resolution Agenda Public Hearing: No Publication Date: Information ISSUE Should the City Council recognize Mayor Cook for his service to the city as Mayor? STAFF RECOMMENDATION / ACTION REQUEST Yes! KEY FACTS AND INFORMATION SUMMARY Mayor John L. Cook was elected in November 2012 to finish the remaining term of outgoing Mayor Craig E. Dirksen who had been elected to the Metro Council. Mayor Cook was then re-elected for a new term which ends 12/31/2018. Although eligible to serve another full term, Mayor Cook and his wife are moving outside Tigard city limits, preventing his eligibility to serve as Mayor. OTHER ALTERNATIVES COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Resolution Recognizing Mayor Cook CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- A RESOLUTION THANKING MAYOR JOHN L. COOK FOR HIS OUTSTANDING SERVICE TO THE CITY OF TIGARD WHEREAS,John L. Cook has served as Tigard's Mayor since January 1, 2013 through December 31, 2018; and WHEREAS, over the course of Mayor Cook's terms, the city faced many challenges on the path to recovery from the 2008 nationwide recession; and WHEREAS, Mayor Cook enlisted aid from Congresswoman Bonamici and Senator Merkley to successfully lobby the U.S. Department of Commerce Economic Development Agency to gain $2.1 million in federal funding for the Hunziker Industrial Core project, a $1.5 million grant from the State of Oregon, contributions from Metro and private developers for the same project which will bring an estimated $36 million in private sector investments, as many as 600 new jobs and generate $140 million in economic output; and WHEREAS, his advocacy and ability to build profitable partnerships brought an infusion of private capital the likes of which Tigard had never seen, along with desperately needed market-rate housing and opportunities to businesses up and down Main Street. His lobbying helped secure a coveted $75,000 grant from the National Endowment for the Arts to support public art for the Tigard Outdoor Museum along the Tigard Street Heritage Trail in a revitalized downtown; and WHEREAS,Mayor Cook pursued completion of a Main Street Green Street Project to retrofit the southern half of Main Street to full green street standards and provide a multi-modal corridor to serve the downtown area. These changes helped create a more distinctive town center for Tigard, which attracted construction of a new$30 million Burnham and Ash Street mixed-use development; and WHEREAS, Mayor Cook and the City Council drove economic investment by pursing the Tigard Street Trail as a path to employment by converting three-quarters of a mile of unused rail spur into a dedicated off-street walk/bike path to connect Tigard's residential workforce to centers of employment locally and regionally. This active transportation route connects to a downtown commercial core of 260 employers and 33 industrial zoned properties; and WHEREAS, in partnership with Business Oregon, Mayor Cook helped create the state's newest Enterprise Zone as an economic development tool that encourages local businesses to grow by investing in new facilities and new employees; and WHEREAS, Mayor Cook successfully petitioned Governor Brown and the U.S. Department of the Treasury to include two Tigard low-income community census tracts in Oregon's list of RESOLUTION NO. 18- Page 1 Opportunity Zones, to encourage long-term investment in low-income communities; and WHEREAS,Mayor Cook represented Tigard in the successful construction and activation of the city's massive water infrastructure project with Lake Oswego for a state-of-the-art water system that delivers a clean, safe, long-term water source to over 100,000 Tigard Water Service Area customers in Durham, King City, Tigard and unincorporated Washington County; and WHEREAS, Mayor Cook's advocacy for community involvement, relationship building and strengthening neighborhood partnerships fostered new and popular ways to connect with Tigard citizens and businesses, including partnerships with YouthSource to connect the city, school district and local businesses with internships and employment opportunities for at-risk and underprivileged young adults;recognizing and empowering youth volunteers by revitalizing the Tigard Youth Advisory Council and involving them in his annual State of the City address; and WHEREAS,Mayor Cook's active membership in the United States Conference of Mayors, Oregon Dept. of Transportation Region 1 Area Commission on Transportation, Westside Economic Affiance Board, Tigard Chamber of Commerce Government Relations Committee, Southwest Corridor Steering Committee, Mayors' Institute on City Design - a leadership initiative of the National Endowment for the Arts, Washington County Coordinating Committee, Metropolitan Mayors Consortium, Oregon Mayors Association, Greater Portland Inc. Small Cities Consortium and many more leadership roles led to successful partnerships, urban design solutions and long-term opportunities that position Tigard as an important partner in the region. NOW, THEREFORE, BE IT RESOLVED by the City Council that: SECTION 1: The Tigard City Council, residents and city staff,in grateful appreciation for his contributions to the community, hereby commend Mayor Cook for his meritorious service to the city. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2018. Jason B. Snider, Council President City of Tigard ATTEST: Carol A. Krager, City Recorder RESOLUTION NO. 18- Page 2 AIS-3701 3. C. Business Meeting Meeting Date: 12/18/2018 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: • October 30, 2018 •November 13, 2018 •November 20, 2018 OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments October 30,2018 Minutes November 13,2018 Minutes REV November 20,2018 Minutes City of Tigard • Tigard Special Meeting Minutes October 30, 2018 TIGARD se 1. SPECIAL MEETING - A. At 6:32 p.m. Mayor Cook called the Tigard City Special Meeting to order. B. City Recorder Krager called the roll. Present Absent Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ C. Mayor Cook asked everyone to stand with him for the Pledge of Allegiance. D. Mayor Cook asked council and staff for any Non Agenda Items. There were none. 2. BRIEFING ON THE SOUTHWEST CORRIDOR MAX LIGHT RAIL PROJECT'S COMPLIANCE WITH STATE-MANDA LED LAND USE CRI 1'hRIA IN THE CITY OF TIGARD Community Development Director Asher introduced this item and said it was an informational presentation and no action was being requested tonight. Mr.Asher asked City of Tigard and TriMet staff to introduce themselves and their role in the project. Present were: Economic Development Coordinator Dylan Dekay-Bemis,Project Planner Gary Pagenstecher, Senior Project Engineer Tegan Enloe, Senior Transportation Planner Dave Roth and Senior Planner Susan Shanks. TriMet staff: Steve Witter, Executive Director of Capital Projects, and Dave Unsworth, Director of Project Development and Permitting. Mr. Asher said direction is sought from Council for a resolution to be considered at the November 13 meeting which will officially determine the City of Tigard's support for the SW Corridor light rail project. He remarked on the importance of a light rail project to a city like Tigard and how it is beneficial. He said one of the proudest moments of his community development career was to help build the Portland-Milwaukie MAX line when he was the community development director for the City of Milwaukie. He suggested that decades from now some cities will be on the light rail network and others will not and the cities that have access to that network will have an advantage in fulfilling their plans and aspirations. Light rail gives a city a lot more development options which most TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 1 of 12 1 communities value such as walkability,mixed-use and being more than just a bedroom community. He said while he is a great proponent of light rail generally, tonight's presentation has a negative bias. He explained that the project is in a land use process and Metro is the decider,TriMet is the applicant and Tigard City Council is a stakeholder,as an affected jurisdiction. Mr.Asher said he received a notice from Metro for a decision on the Land Use Final Order (LUFO),which is a single permit for the project. LUFOs were created by the State of Oregon. Metro's public hearing is scheduled for November 15,two days after the Tigard City Council will make their recommendation. The workshop tonight is an opportunity for Council to hear about the project, concerns staff has identified about the Locally Preferred Alternative (LPA),to get information from TriMet (the applicant) about the process and to get clarification so that the resolution that comes back on November 13 captures whatever Council wants the City of Tigard to be on record about. This input will be considered by TriMet and Metro. Mr. Asher said the project is only at the 5 percent design stage and there are a lot of unknowns. He said the LUFO is arranged so that once Metro approves it,TriMet has authority to build the project in line with this application and any changes would be figured out through a steering committee process where there might be only one representative. These changes would not typically be large. The City Council's influence is limited. He said Council will hear about an agreement that addresses some concerns Tigard has about the project. He asked Council to think about the alignment. and Council will also consider a finalized MOU to be signed by the city manager that talks about addressing these concerns. Mr.Asher said staff has a risk bias in the way we are looking at these issues. Studies show that when faced with a big decision,we are interested in the downside risks as well as the upside. The project has predictable benefits which staff will not talk about much tonight. There are few issues with this project going to the Triangle area.We wanted two stations in the Triangle and it looks like that is going to happen. The Triangle and light rail fit together. Tigard will have better transit service, multi-modalism all over the downtown and the Triangle,and a non-car ride to Portland or Bridgeport would be great. There will be some road and intersection improvements as well as natural resources such as Red Rock Creek. These are all good things that are part of this project and he did not want that to be lost on anyone. The LPA also has adverse impacts in the City of Tigard as well,heavily concentrated in one segment. Most of the focus tonight will be on this troublesome area,the downtown area and portion of the Hunziker Industrial Core that runs up against the downtown. He said staff are being conservative and calling out all risks when we hold this alignment up against the City's Comprehensive Plan policy. Things we care about such as transit-oriented development and walkability could happen but we are not sure we can rely on it happening with this alignment. These concerns are all being put in the frame of the LUFO criteria because that is what the law says we are supposed to do. He showed slides of maps and the alignment and said staff will discuss where the LPA shows conflict or risk with our comprehensive plan policies. He said he would then touch on the MOU and resolution and there is a lot of time for Council questions. Council President Snider asked where the Village Inn site was located. Mr. Unsworth said the yellow area on the map has been expanded because they were asked to do some additional study by the Steering Committee trying to avoid impacting the Village Inn. They may look at other properties. He said this will provide some flexibility and choices as they proceed. TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 2 of 12 This Land Use Final Order is recognition on the part of the State legislature that this project has statewide impact, this MAX line is critical infrastructure to this region,and the region is critical to the economy of the state. To be competitive and gain as much federal share as possible is of real interest to the state. Therefore, the state has passed legislation for this project and projects before it to allow land use decision making elevated from local jurisdictions to the entity that includes all of them—Metro. It does not mean TriMet has rights to build light rail anywhere it wants under any condition it wants. The legislation is very clear that it is trying to abide by statewide planning goals and supportive of local land use planning policies (Comprehensive Plan and other plans). It says in the LUFO legislation that it is meant to be "equivalent in spirit and in substance to the land use procedures that otherwise would be applicable." He said there are 13 criteria,approved by city staff, TriMet and Metro as shown on a slide of all criteria with two highlighted that have not been met: Criterion 3-Balancing and mitigating social,urban form, economic,traffic and safety impacts;and Criterion 11 -Maintaining downtown Tigard as the transit center. The other 11 criteria have been met or are not pertinent at this time. He said this project worked hard to avoid social impacts and he did not think there were any affordable housing impacts. But staff has concerns to bring to Council's attention to impacts to urban form, economic, safety and traffic. Mr. Asher said it is a balancing act and one of the balancers is whether this route location can enhance transit ridership and staff believes it will. Council will hear about the likely contribution of light rail service to improved economic opportunities, the development of a compact urban form, improved safety and the need to protect neighborhoods, districts and centers (the downtown) from adverse impacts. Senior Transportation Planner Roth showed a slide of the Tigard Transit Center and asked, "Does the preferred alternative comply with Criteria 11?" He said that siting it on Hall Boulevard puts it outside Tigard's defined downtown area and, on this basis alone,it fails. The current Tigard Transit Center is centrally located,accessible and multi-modal with eight bus lines and the Wes line serving it. It provides both bike parking and 100 Park&Ride spaces. It is an integral transportation facility woven into the fabric of downtown Tigard and over the past several years the city has invested heavily in renewing the historic downtown area and creating a more walkable environment. An inherent assumption in much of this work is a centrally located transportation hub in downtown Tigard. He said from a transportation perspective siting the new Tigard Transit Center outside of downtown Tigard's established boundaries creates a few potentially negative impacts: increased walking distance and time from the center of downtown,pedestrian trips shifted to Commercial Street,a street without specific plans or investment in appropriate pedestrian scale and streetscape improvements;new and so far unmitigated pedestrian train crossing conflicts, the form of SW Hall Boulevard itself,which sees over 11,700 vehicle trips a day at this location, additional traffic generated from a 300-space Park&Ride structure and impacts of bus ere-routing through the downtown area. Economic Development Coordinator Dekay-Bemis discussed LUFO Criteria 3. Part of the objective is to identify economic impacts on commercial and industrial districts,measures that could increase beneficial impacts and reduce adverse impacts, and the likely contribution of light rail in service to improve economic activities. He showed a slide of the LPA and underlaid in grey were Tigard's industrial zones,its entire supply of industrial land. He said except in the Triangle the route runs through Tigard's industrial lands,avoiding impacts on residential lands. Some business may have to relocate. This does not show the full impact because the project is only 5 percent designed. A Summary of Impacts slide showed 21 businesses that staff said would be directly impacted and need to relocate, or 4.7 percent of industrial firms in Tigard. These firms employ 594 employees, or TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 3 of 12 7 percent of industrial employees in Tigard. Tigard could potentially lose 42.3 acres of the industrial land inventory, or 5.4 percent. Project Planner Pagenstecher said the impacts occur within a severely constrained industrial land inventory without potential future expansion within or at the edge of the City's boundaries. There is no land available of a size and location suitable for industrial use available for expansion within the City boundary. Outside the Urban Growth Boundary the land to the west is topographically challenging and unsuitable for industrial development, even if it came inside the UGB. The other boundaries on the north, east and south are shared with other cities. Mr. Pagenstecher said the need to protect industrial zoned land within Tigard is well documented in the Comprehensive Plan's 2011 Economic Opportunities Analysis. The city is deficient in vacant and redevelopable industrial-zoned property for the 20-year planning horizon. The applicable Goal 9 Comprehensive Plan policies and action measures focus on promotion of well-designed and efficient development of vacant industrial lands and actions that result in greater,more efficient utilization of Metro-designated employment and industrial areas. He showed a slide of the Hunziker Core infrastructure and said the strategy was developed to provide a context for the Wall Street improvement alignment, currently under construction. The middle section is being developed now and Phase 3 (Tech Center Drive) is funded for 2020 development. The Wall Street improvement provides frontage to the Fields property and connectivity between Hunziker Street and 72"d Avenue, helping to relieve the burden on the Highway 217/72'Avenue intersection. This strategy also identified a potential street network between the new Wall Street and Hall Boulevard that could provide access to significant underdeveloped properties in the Hunziker Core,a key element to potential future development of this important zone. He showed a slide of the 16-acre Operations and Maintenance Facility,which would extend from Hunziker Street to the railroad tracks. TriMet indicated operational requirements would preclude any access through it. Potential alignments are truncated by the 0 &M Facility. He summarized by saying that in its current configuration the LPA and 0 &M Facility would adversely impact Tigard's industrial employment landscape by further reducing the already constrained industrial land inventory and reducing the industrial workforce. Staff finds that the LPA is not consistent with LUFO Criterion 3. Senior Planner Shanks talked about impacts to the urban form included in Criterion 3, specifically whether the location of a station area and proposed Operations and Maintenance Facility east of Hall Boulevard adversely impacts Tigard's urban form. The location of a station area and 0 &M Facility east of Hall Boulevard does not serve Tigard well. It does not contribute to the development of a compact and efficient urban form. She said this is not just that the light rail improvements are proposed to be built outside of the downtown Tigard area in an adjacent industrialized area. It is what happens after the station is up and running. The urban form means the physical patterns and structures defining an intensely built space. Downtown Tigard's urban form has been heavily influenced by the historic commercial retail pattern along Main Street,by its proximity to Fanno Creek and by the community's land use vision and redevelopment efforts over time. What it means to downtown's urban form to locate a station outside of it is that downtown's physical boundary will need to expand outward into an area for which it shares very few physical attributes. The Hunziker industrial area consists of several large lots with no internal street grid and no connection to Fanno Creek. Yet the station will somehow need to be physically integrated into downtown,across Hall Boulevard,if it is going to be a safe and successful place. Ms. Shanks said there is a functional component as well and that is that downtown will become a less compact and efficient place. Compact urban form is about physical density and efficient urban TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 4 of 12 form is about functionality. It is only when we have a density of land uses and human activity that we truly achieve efficiency. A consequence of having a less compact and efficient downtown is the dispersal of people and activities. These are the attributes that are the hallmark of good urban form and successful urban places everywhere. Based on projected ridership and transfers, the downtown station will become a hub of human activity and the market will likely want to serve it by locating services and business there. There is concern that this new hub will compete with Main Street and it will suffer. It will create two centers. Most of the community's efforts in the downtown have been focused on Main Street. She showed slides of the City Center Urban Renewal area in the past, present and future. Most completed projects are along Main Street, current projects are along Main Street and proposed projects are near Main Street. Many stakeholders and advocates been working for decades to enliven the sizable area that is already downtown. Senior Planner Shanks noted, as described by Economic Development Coordinator Dekay-Bemis and Project Planner Pagenstecher, the City does not have industrial land to spare. No one has been advocating for a larger downtown or a smaller industrial area.A complete re-imagining of this area will be required because none of the City's plans or policies address the radical change proposed by this light rail alignment. This will require time and resources and significant community engagement. It will also require major amendments to the Comprehensive Plan, Community Development Code and Transportation System Plan. These changes will need to be supported by appropriate analyses and funding for this will need to be added to the City's budget for the next few years. Senior Project Engineer Enloe spoke about the section of Criterion 3 addressing safety and traffic impact. She mentioned beneficial impacts from the project including traffic signals at 65th Avenue and Haines Street and Commercial Street at Hall Boulevard. These roads are expected to have more traffic by 2035 and the addition of traffic signals will reduce the congestion. A successful transit project may cause more people to use transit rather than ride in a vehicle, thus removing some cars from the roads. Senior Project Engineer Enloe discussed three potential adverse impacts. She mentioned the proposed station on 68th Parkway and Pacific Highway and said there has not been much station planning since the project design is just at the 5 percent level. Good use of this station and the Park &Ride are expected from the neighborhoods to the north. If a pedestrian is on the west side of 68th Parkway going towards the station,there is a full traffic signal on 68th Parkway that is considered a protected crossing for them. But if someone is coming from the east, depending on where the access point is on that parcel of land,it could be considerably out of direction travel. A rule of thumb traffic engineers use is that a pedestrian would likely go 150 feet out of their way to use a protected crossing. If access gets farther away than that, there is an increased desirability in dashing across Pacific Highway. There is not enough information to know what the future access will look like so this is a potential safety concern. Ms. Enloe said there are three traffic signals in close proximity; an existing signal at Burnham, an existing one at Scoffins/Hunziker and a proposed signal at Hall Boulevard and Commercial Street. Looking ahead to 2035 it is estimated that there would be a crossing on the freight/WES tracks every 15 minutes during peak hours and a crossing on the light rail tracks approximately every six minutes during peak hours. This is a high number of trains and the concern staff has is that having that close activity and two uncoordinated train systems creates an increased risk of congestion. The safety concern comes from needing to clear cars from the tracks when two trains come at the same TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 5 of 12 time or if a freight train comes through. There is not enough design at this time to know how the independent train systems would trigger the signal system. Senior Project Engineer Enloe discussed the 72nd Avenue/Carmen Drive area which is congested today and future modeling shows that congestion will only increase. The proposed alignment crosses both 72nd Avenue and Carmen Drive in close proximity in an area that experiences high levels of existing and projected future congestion. She said future modeling is based on an assumption that Upper Boones Ferry Road will be built out to five lanes but it is shown to be highly congested in the future. This widening project is not funded. Slides were shown of Tigard Comprehensive Plan criteria marked in red if they conflict,green if they support light rail and black if they could go either way. Engineer Enloe discussed LUFO Criterion 3 —Balancing of Traffic and Safety Impacts. She said there is a need for the system to balance anticipated growth and development, congestion in the area, and also the safety of the transportation system. The Comprehensive Plan calls out a need to create an effective multi-model system and provide different types of travel opportunities for people who live and work and enjoy life within Tigard. There are also sections in the Comprehensive Plan that specifically calling for high capacity transit. Senior Planner Shanks discussed LUFO Criterion 3 —Balancing of Urban Form Impacts and said there is not a good consistency with the LPA.As noted earlier, the words compact and efficient urban form appear frequently in Comprehensive Plan policies. She pointed out Goal 14.3,Policy 1, which recognizes the city's role within the region and that it is recognized that Tigard is part of a larger,urban regional area but while supporting regional and state growth management decisions, the City also values and supports policies that support cities as the best building blocks of an efficient, stable and compact urban region. Project Planner Pagenstecher talked about LUFO Criterion 3—Balancing of Economic Impact. For the more general economic policies the impacts of the overall LPA are positive,providing the City with a safe, effective, efficient and multi-modal transportation network. However, for the more numerous, specific economic policies applicable to industrial areas, the impacts of the LPA and the 0 &M Facilities within those industrial areas are adverse. For employment areas, such as mixed-use zones within the Triangle,the Central Business District and industrial areas,industrial areas are severely constrained and would suffer further diminishment with the LPA. Mitigating these adverse impacts will be critical to Tigard's future economic development. Senior Transportation Planner Roth said LUFO Criterion 11 relates to Tigard's Comprehensive Plan Policy 15.4.which says the downtown shall be Tigard's primary transit center for rail and bus service. The preferred alternative station on Hall Boulevard is outside Tigard's downtown area. Community Development Director Asher said impacts were quickly identified and staff have been working with TriMet and Metro to see if there are some ways to get these adverse impacts mitigated. A draft MOU with TriMet has been prepared that allows Tigard to have comfort regarding concerns discussed tonight. A draft MOU with TriMet will come before Council on November 13 and includes language on: • Number of stations and locations • Hall Boulevard redesign (at downtown station location) TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 6 of 12 • Shared use agreement for downtown parking structure • Future discussion on design and location of downtown station in a MOS scenario • Cooperation on an Ash Avenue crossing • Study and cooperation on active transportation connection between the Triangle and downtown • Cooperation to preserve and develop affordable housing • Future agreement for scoping and budgeting city staffing on the project Community Development Director Asher said Council will need to consider a resolution to support, a resolution to oppose, or a resolution requesting that Metro remand TriMet's application. Staff is seeking direction on which resolution to prepare for a vote on November 13. He said the LUFO will need to be amended at a later date after a few key steps such as the Final Environmental Impact Statement and the full funding grant agreement. This is the time for affected jurisdictions to sign on or make concerns known to TriMet and Metro. Council President Snider asked what TriMet's reaction was to the staff findings. TriMet Director of Project Development and Permitting Unsworth said he appreciated staff's work on this. The project has been brought forth by a steering committee of elected officials who have looked at this for a number of years. A Citizen Advisory Committee met 17 times and both committees universally and unanimously approved this preferred alternative. They looked at a dozen alternatives to get to downtown Tigard but did not want to destroy what they wanted to preserve, such as affordable housing or businesses or create significant traffic impacts by crossing Hall Boulevard twice. He acknowledged that some industrial area is being taken out. He said if the O &M Facility was oriented differently property effects could be minimized. Per state law this is the time to give comments. TriMet will be releasing their findings in the next week or so and Council will have a chance to read this. Council President Snider said it is clear that Metro by state law has to take the criteria into consideration. He said that as a community member for over 20 years and the way the staff and entire city interpret this,it would be hard to say all the criteria are met and Metro will write findings to that effect. He said he is hearing that this is a compromise and wanted to know what specific things are addressed by the MOU and what things are not and what,if anything,is the potential mitigation for it. Mr.Asher said Council President Snider was right, Metro will draft findings. There is more than one way to interpret policies and there are many ways to interpret criteria also. Metro will be looking at this project from a regional,not provincial aspect. TriMet Director of Project Development and Permitting Unsworth noted that the PowerPoint was different, and this was the first time they had seen this version. He requested a five-minute recess to confer with his colleagues in order to provide specific responses on how these issues will be addressed. Mayor Cook called a recess at 7:51 p.m. The meeting was reconvened at 8:02 p.m. City Manager Wine said the presentation was new and acknowledged that it was not fair to ask TriMet for a detailed response to specific criteria. TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 7 of 12 TriMet Director of Capital Projects Witter said City Manager Wine's comments were well taken and he did not see a benefit to respond point by point. TriMet staff has been working with City staff on this. He thanked Councilors Goodhouse and Anderson for working on an MOU,which is not legally binding,but a morally binding, document. He said it is a continuation of TriMet's good faith efforts to work with Tigard which started back when the initial route proposal was being formed and Community Development Director Asher said TriMet really needed to know how urban design and form issues could be understood. We are at five percent design. Looking at the character of the stations to the traffic operations—all of these things will be resolved. Light rail projects are complex and they require some special engineering but TriMet has built over 60 miles of rail and has seen throughout the region that engineering challenges can be overcome. Mr.Witter noted that Mark Greenfield,who wrote the original LUFO legislation was present and could address any specific LUFO questions. TriMet Director of Project Development and Permitting Unsworth said there two ways to deal with the issues. There is mitigation for impacts and they will look for traffic impact mitigations. LUFO does not get you out of local permitting;we still need to come in for land use approval and permits so Tigard has a chance to weigh in. He said regarding urban form, they know there will be a loss of work and TriMet will pay for the relocation of businesses there.The City has asked them to join with them on employment transit-oriented development in that area to build businesses back up. Part of this urban form question is how to grow the downtown and part of that is how to address Hall Boulevard.A request was made of TriMet to assist the City with a jurisdictional transfer of Hall Boulevard from ODOT. They are willing to help with that. He said staff raised relevant issues and an MOU with a work program hits all of these issues and the team at TriMet wants to make this a success. This is not something we are doing to Tigard. It is something we are doing for Tigard. Councilor Goodhouse asked for a definition of Transportation Oriented Development for the audience to hear. Mr. Unsworth referred to Orenco on the west side line and said it is housing built around transit and really uses the transit. Another kind is equitable transit-oriented development which repurposes excess property acquired for a station for affordable housing. Council President Snider asked what percentage of staff concerns are mitigated by the MOU. Community Development Director Asher said it is an excellent start but came very late. He said it is very helpful and adequately addresses many of the issues. Council President Snider asked which issues were not addressed. Mr.Asher said it is reassuring to hear that the funding for Hall Boulevard will be in the base funding in the vicinity of the project. Some of Senior Planner Shanks' concerns about integrating an extended downtown will be helped by improvements to Hall Boulevard as will some of Senior Transportation Planner Roth's concerns. If there is one thing that is not in this agreement it is that the Minimal Operating Segment language. If the project does not go to Bridgeport, do we have to have a station in the industrial area when one in the downtown would solve so many of these concerns. However,TriMet has been very clear that they are not open to moving the station even in that scenario. Council President Snider asked about the congestion at Boones Ferry and 72"d Avenue,which is concerning to him. Mr. Unsworth said they have heard this is an issue from ODOT and others. They are looking at a grade separation and it is on the radar. TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 8 of 12 Councilor Goodhouse said his biggest concern is that he wants a west of Hall Boulevard station option and that citizens are surprised there is not a downtown station option. Mr. Unsworth said what TriMet has heard clearly is that going up and over Hall and landing on Burnham Street increases costs and travel time so much that their General Manager is not interested in doing that. He added that this is a conversation for the Steering Committee later on. Councilor Woodard asked Mr. Asher about the Hunziker Industrial Core,where the City and Trammel Crow have invested millions. Mr.Asher replied that the Trammel Crow property is on the other side of Wall Street and the entire Fields property hillside will be developed just as was planned, with industrial development on the flat part and workforce housing being built on the hillside. In response to a question from Councilor Woodard about the MOU, City Attorney Rihala said it is not a legally binding document in the sense we could take it to court and have a judge compel someone to do something. It is a legal document in that two parties are signing an agreement. Councilor Woodard suggested that if the City has an expectation to receive certain benefits for the City and the tax payer,we need to absolutely ensure that those commitments are solidified in another type of document. City Attorney Rihala said at this point,items in the MOU are flags for future consideration for an IGA. There are placeholders in the MOU with the intent that we will come back and enter into an IGA if we decide to pursue them. Councilor Anderson asked about moving the Operations and Maintenance Facility around and whether maintenance is an industrial use. Senior Planner Shanks said railroad yard use is not allowed in this zone. but an exception was made, and our code will be changed. Councilor Anderson asked how many jobs would be created by an 0 &M facility and Mayor Cook said the answer was at least 150 FTEs. Mayor Cook asked why the Hall Boulevard parking structure site could not be considered a mixed- use development with shared parking below and a few stories built above to facilitate development in the area. Mr. Unsworth said it would be a question for the market and whether it would pencil out. There is language in the MOU regarding shared use for the parking structure. Mayor Cook asked City Attorney Rihala to summarize Charter changes related to light rail. She said the City's Charter says the City may not raise a tax,increase a fee or basically impose any additional cost without a vote to pay for light rail construction. So, any Tigard funding was going to be devoted to construction there would need to be a vote. In terms of what has been voted on,two years ago Tigard passed the authorization ordinance which had to meet specific requirements and asked voters if they supported a light rail project as it was at that time and they voted yes. The resolution Council will consider on November 13 will say to the extent that this project conforms with that vote, the Tigard City Council supports that alignment. No additional vote of the people is required if Council decides that this project conforms with the authorization ordinance. Staff feels comfortable that it does. Councilor Woodard referred to the street maintenance backlog and asked if anyone was concerned that there will be a lot of cross-street traffic to access light rail. He asked if there were ways to find revenue for these things. Mr.Asher replied that this is low down on the list and he was not sure the impact will be as bad as Councilor Woodard thinks. Mr. Unsworth said where there are at-grade crossings TriMet is responsible and will develop maintenance agreements. TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 9 of 12 Mayor Cook thanked TriMet for working with staff on this MOU. He added that Metro does not often receive kudos,but Metro was the "white knight"playing referee and encouraged TriMet and the City to talk. Community Development Director Asher asked for direction from council on drafting a resolution for November 13 meeting. This meeting was to make sure Council has the information they need. Mayor Cook said it would have been helpful to have the MOU in front of them. He suggested mirroring the language from the MOU in the resolution so that we have it in both places. Councilor Goodhouse suggested passing the resolution and MOU but remanding the station location to west of Hall Boulevard. Community Development Director Asher said he is hearing support generally for this project and has heard one councilor asking for something that is not in there. He said staff will draft something that brings over language from the MOU into the resolution. Council President Snider said he has stated this to TriMet staff previously,but for him to support the east of Hall Boulevard station, the line must go to Bridgeport,not necessarily immediately,but there needs to be a commitment to build within a specified time,perhaps ten years. Councilor Woodard said he received a lot of good information over the years but it has changed quickly. He was concerned about the industrial area. He said there is a lot of information and he can't fathom that all the additional things which tax payers are going to pay for are listed in the MOU. There are other things that will be needed to treat roads and deal with congestion, such as lighting and signals,but without an MOU or IGA with an absolute guarantee of some of these big ticket items,he has no assurance. People are going to get frustrated and upset and he could imagine future councilors trying to untangle the mess made because we do not really understand things. He said, "When it comes down to Tigard, I've got to put Tigard first." Mayor Cook said despite what the media has reported,he never said it will decrease congestion. He said it will decrease the increase in congestion. People are moving in;congestion is going to get worse.But it is another tool in our toolbox. Even with building this there will be an increase in congestion because of the number of people moving in. He said he looks at the positives like what it could do for the downtown and what it will do for the Triangle and all the economic development aspects. Those can pay for the items mentioned by Councilor Woodard. We have to look at the negatives but there are plenty of ways that this project would pay for those and more and benefit the city. He said Councilor Woodard is correct in that the first alignment lines looked at were wide and it could have gone in anywhere inside those lines. But the lines went mainly through residential areas. The preferred alternative goes a little inside residential in the Triangle and does affect 5 percent of Tigard's industrial land,but otherwise we would have hundreds and residents and housing advocates displaced. He said he did not like the fact that industrial land is affected but otherwise council would be hearing from hundreds of residents and social organizations testifying that we were taking out an affordable housing project. Councilor Woodard said in order to make a good decision he needs more time. Community Development Director Asher said the project is at the point now where Metro will be making their decision on November 15. This is the next milestone in the project schedule. He said he felt for Councilor Woodard but he also knows how many times staff has updated council at meetings and TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 10 of 12 over lunch. November 13 is the decision date for this council. Mr. Asher said staff will not be back with new information. Council will hear from the public on November 13 but the whole purpose of tonight's workshop was to update Council on everything. City Manager Wine said the MOU will be published with the packet Council receives on Thursday. Councilor Woodard noted that he wished they could have held this workshop meeting back when the Steering Committee had its meeting with Metro. City Attorney Rihala asked for attention to be refocused on the land perspective. She noted that Councilor Goodhouse requested consideration of a remand to address the MOS and reiterated what Mr. Unsworth said earlier; the MOS is not a part of the land use decision. She said a remand would be to address one criteria that is not being addressed in the application that will be before Metro. She said Tigard could prepare comments for Metro saying that Criterion 11 is not satisfied but the MOS would not be the way to go about doing that. Community Development Director Asher asked, following up on Councilor Goodhouse's concern, if the LUFO showed a larger area for the downtown station,would it avail the opportunity to build one west of Hall Boulevard if an MOS came to pass. He asked if not having those locations identified precluded the possibility that there would ever be a station west of Hall. Mr. Unsworth said no, after a final environmental impact statement and a full funding grant agreement, there are opportunities to modify it. He said to recognize though that the application TriMet prepared was based on direction from the Steering Committee and it was a resolution that went to TriMet's Board so he did not think it was possible to change that in the near term. Metro is being asked to do two things on November 15—a vote on the locally preferred alternative as it is written,which does not include the MOS;and to process this LUFO,which includes a full-length alignment that does not describe an MOS. Mr. Unsworth said that if for some reason there is not enough money for a full-length alignment and a description is needed, the MOU says TriMet will consult with Tigard and have a full discussion and the Steering Committee will adopt where we will move forward with an MOS. If they move forward with an MOS and cannot get all the way to Tualatin,they amend the LUFO at the end of the FEIS or at the full-funded grant agreement component. There are opportunities. Mr.Asher asked about the NEPA (National Environmental Policy Act) because after the FEIS is finished,it was not clear to him how a new property impact would be introduced. Mr. Unsworth said a project identified in a NEPA action could do this in several ways. Before an EIS is finalized an MOS will be picked to make sure they have cleared that. This won't happen until June or July of 2019. If we change things after an environmental impact statement has been issued a record of decision, there are reevaluations that can occur and TriMet has done these before on a number of projects. It is not something they are unaccustomed to doing;it is a regular action they have had to take for a number of different elements that have changed after the record of decision has been issued. Mr.Asher clarified for Council that the Steering Committee can change things from what is being adopted now on advice from the project staff. It would not be a City of Tigard decision although Council would be consulted and represented, and some processes would have to be put in place to get through NEPA and to change the alignment. The MOS that will be named in June or July is along the alignment as shown. Mr. Unsworth said the MOU is very clear about the opportunity to have that conversation,which we will have and that is the time for it. TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 11 of 12 Councilor Woodard asked what the result would be if the Tigard City Council decided to oppose or remand. Mr.Asher said if Tigard made a resolution to oppose the project it would be very grave for the project but it would be up TriMet or Metro to figure out how to respond to something like that. He said a remand is very different and is similar to any other land use situation. It would mean asking TriMet to please go back and keep working on this and it would have schedule implications. Council President Snider noted that Tigard would not even get to make that decision and would simply be asking Metro to remand it. Mr. Unsworth said if the City of Tigard, after working on this project for seven years, does not want to move forward,it is a big issue. If Tigard wants to say they want a remand for a specific issue it is up to Metro Council to decide. Councilor Woodard asked if Tigard decided to request a remand would it stop the LUFO. Mayor Cook said the Metro meeting would still happen on November 15 and we would request in a resolution that they change an aspect but Metro Council could decide not to listen to that. City Attorney Rihala said what they are hearing is that the resolution will mirror the MOU,be in support of the project to the extent it conforms with the authorizing ordinance and is in agreement with the locally preferred alternative. Council President Snider said his support was dependent upon language about the line going to Bridgeport or not. City Attorney Rihala asked if the MOS language was in the MOU would be sufficient and Council President Snider agreed it would. Councilor Anderson said Council members that had not seen the MOU were at a disadvantage. He said he has seen it and is satisfied and ready to move on. Community Development Director Asher said staff will write a resolution in support with the MOU language and leave it to Councilors Goodhouse and Snider to see if it satisfies their interests in a commitment relating to the Bridgeport MOS issue or some other option. Council will hear from the public at the hearing on November 13 and will have two weeks to review the resolution and decide if the language is satisfactory before then. 3. NON AGENDA ITEMS None. 4. ADJOURNMENT At 9:15 p.m. Councilor Woodard moved to adjourn the meeting. Councilor Goodhouse seconded the motion and Mayor Cook conducted a vote. The motion passed unanimously. Yes No Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Carol A. Krager, City Recorder Attest: John L. Cook,Mayor Date TIGARD CITY COUNCIL MEETING MINUTES — October 30, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 12 of 12 111 111 City of Tigard Tigard City Council Meeting Minutes TIGARD November 13, 2018 1. SPECL3L BUSINESS MEETING. a A. At 6:31 p.m. Mayor Cook called the Tigard City Council Special Meeting to order. B. City Recorder Krager called the roll. Present Absent Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ C. Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Mayor Cook asked staff and council for Non-Agenda Items. None 2. PUBLIC HEARING AND SOUTHWEST CORRIDOR PREFERRED ALTERNATIVE: INFORMATIONAL PUBLIC HEARING, CONSIDER MOU WITH TRIMET AND APPROVAL OF PREFERRED ALTERNATIVE ALIGNMENT A. At 6:32 p.m. Mayor Cook opened the public hearing. B. Community Development Director Asher gave the staff report. He said he has spoken many times to Council in the five years he has been working on this project. He wanted to introduce other team members who have also been working on this project and acknowledge their work. He thanked City of Tigard staff members working on the largest public works project built in the city and asked them to stand: Citizen and Business Involvement Lead Lauren Scott, City Engineer Lori Faha,Urban Design Lead Gary Pagenstecher,Permitting Lead Susan Shanks, Station Access Lead David Roth, and Sean Farrelly,Lead on Equity and Housing. He thanked project partners present from TriMet: Leah Robbins, Steve Witter,Dave Unsworth and Tom Markgraf. Malu Wilkinson was present from Metro as was Metro Councilor Craig Dirksen. Washington County Commissioner Roy Rogers and State Representative Margaret Doherty were also present. Mr.Asher noted that former Tigard City Councilor Marland Henderson and Councilor- elect T,i7 Newton were also present. TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 1 of 15 He said his presentation would be short since the point of the meeting is to hear from people wanting to testify. He said he gave a lengthier presentation at the October 30 workshop meeting and the materials on the alignment have been available.There are boards in Town Hall and out in the lobby describing the alignment. He described the Tigard portion of the alignment: It enters Tigard north of the Triangle area adjacent to Highway 99W around 68th Parkway and heads south along 70th (which does not exist today), and west at Elmhurst. It then goes over Highway 217, crossing Hunziker Street, and then travel to the southeast side of Hall Boulevard along the existing railroad tracks down to the terminus at Bridgeport Village.There are stations throughout; one at the north Triangle, one at Elmhurst, one east of Hall that will serve downtown,and one proposed at Bonita Road around 72nd Avenue. There is a station proposed at Upper Boones Ferry at Sequoia but he said that one is likely to be dropped. There is the terminus station at Bridgeport that could be within the Tigard city limits. Mr.Asher listed the many times Council has received updates on this project. He summarized the three votes taken in the City of Tigard. A Charter change added Section 52 in 2012 which says the city shall not increase current taxes or fees for construction costs to build or expand light rail transit. The next vote added Charter Section 53 in March of 2013 that states as a matter of policy, the City of Tigard is opposed to high capacity transit without a public vote and outlined what kind of information would be required to give to the voters. In November 2016 Council,in accordance with Section 53,asked the voters if they approved the SW Corridor project. The voters narrowly said yes. This project is authorized in the City of Tigard by a vote of the public. He noted there is a regional vote slated for November 2020 because this project needs to raise a considerable amount of funding to get built. Tigard voters will not necessarily determine the outcome as it is a regional vote. Mr.Asher said the alignment shown tonight and discussed through much of 2018 is the result of years of study, and balances hundreds of variables related to transportation requirements,land use plans and policies and requirements at the local,regional, state and federal level. They are further influenced by a host of best practice considerations about how to build light rail transit, costs and federal grant competitiveness considerations. The outcome is called the Locally Preferred Alternative (LPA)which was recommended by a Steering Committee that Mayor Cook sits on and which was endorsed by every participating jurisdiction. Tigard is the last to vote on this and it will be considered by Metro formally on Thursday, November 15. He said the LPA is not a perfect alignment and his opinion was that all the partners might share this view because there is no perfect alignment. He said choosing an alignment is a give and take process where net gains are balanced against adverse impacts. The impacts in Tigard are significant,however, they should not be a surprise as they were identified early with the initial route proposal. Staff has been insistent and constant in their advocacy and discussions with TriMet about these concerns. As a result, an agreement was reached with TriMet, called a Memorandum of Understanding(MOU)which is a statement of intent about how the project will be built in the city limits of Tigard. There are still many things we do not know about the project because it is only 5 percent designed. TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 2 of 15 Concerns were made known to Metro and TriMet and Metro helped us get to an agreement that will allow us to work on elements that are crucial for the overall success of the project here in Tigard. This includes how stations and other light rail-related facilities will be sited, a future agreement to share space in a downtown parking structure, collaborating to create employment density near the downtown station and agreement to collaborate on improving the non-transit aspects of our transportation system in Tigard where that transportation system interfaces with the project (active transportation improvements,bike/pedestrian and even road and intersection signalization improvements). A separate MOU has already been signed by Tigard and partner agencies (Tigard,Portland,Washington County,TriMet and Metro) to ensure the preservation and development of affordable housing along the corridor. Community Development Director Asher concluded by saying the issue tonight is for Council to consider authorizing the City Manager to sign the MOU with TriMet and to approve the preferred alignment as recommended by the SW Corridor Steering Committee and all project partners. Staff recommendation is that Council make two motions,one to authorize the City Manager to execute the MOU and one to adopt the preferred alternative by motion. C. Hearing Procedures—Mayor Cook announced that anyone may offer testimony and the sign-up sheet is at the front of the room. He said there was a three-minute limit on testimony. D. Mayor Cook called upon those who signed up to testify. Michelle Cheney, 6640 SW Redwood Lane,Tigard, OR 97224, said she is the Branch Manager of the Portland Clinic located off of I-5 between Carmen Drive and Bonita Road. She has been a Tigard citizen for 14 years and also serves on the Tigard Chamber of Commerce Board of Directors. The Portland Clinic's South Branch is one of six locations in the Portland area which total 600 employees. They are proponents of mass transit and offer transit passes to their employees. They know that many of their 90,000 patients depend on public transportation to get to critical care at their clinics. She said the Portland Clinic is a member of the coalition of Tigard businesses, named the Coalition for SW MAX Railroad Options. They became involved when they learned some routes would force demolition of their South Branch. The loss of the building would have disrupted medical care for 7,000 patients—many of them senior citizens living in nearby Summerfield and King City. The ripple effects would impact many medical provider partners in the region. The Portland Clinic supports the locally preferred alternative approved unanimously by the SW Corridor Steering Committee. Their recommendation includes the railroad route from downtown Tigard to Tualatin which Portland Clinic endorses. She encouraged the Council to support the SW Corridor Plan and the LPA. Bob Niemeyer, 13200 SW Howard Drive,Tigard, OR 97223, said he is an independent mechanical engineer and has been in business in Tigard for 30 years. He said all he sees and hears about from people about the light rail is that property values will jump and drive up TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 3 of 15 housing costs. He has yet to see any project involving light rail that has not caused a significant jump in property values and/or housing costs. He noted that there was not a lot of high density housing on this particular route but that is usually what follows when light rail goes in. Rents will go up and people cannot afford to live here unless there are 5-6 people sharing a small apartment. Both of his children have been through this and both have moved home as a result. He said he does not believe that it will only cost$300 per year and thought it would be double or triple that by the time all is said and done. He said he was completely against this and did not see that big a benefit to Tigard. He said he wondered what the big attraction is to get on light rail and go to Bridgeport. Mike Strand,President and Founder of Apex Industries, 12670 SW Hall Blvd.,Tigard, OR 97223 owns a business located right where the light rail is supposed to turn a corner and run down along the railroad tracks. He found out about this route several years ago and former City employee Lloyd Purdy said that it would run down the railroad tracks and would not affect his business. He said he found out weeks ago that in fact,his business would have to go away because the building will not work anymore. This causes a huge problem for himself and his employees. They did a search for other 50,000 square foot buildings for lease within a ten-mile radius of Tigard and found zero. There were only two of that size for sale. There is a shortage of industrial space and finding another location will be challenging. Mr. Strand said ten years ago he had 30 employees and built up to 130 employees now. He supports the local economy. He took the building when it was in a derelict condition and has put millions of dollars into it so they could control their costs for a long period. If he has to move,he will have to pay$15,000-16,000 monthly in rent. Moving cost will be millions of dollars. He said he wanted to go on record that he understands why the property was selected and why the project chose to do that,but he will be hugely and negatively affected by this move. Mayor Cook noted that council received some testimony through emails and letters and read them prior to this public hearing. Lonnie Martinez, 10540 SW Walnut Street,Tigard, OR 97223, said he is a resident and a daily transit user. He serves on the Transportation Advisory Committee,Fanno Creek Trail Committee and on the SW Corridor Project Citizen Advisory Committee for 18 months and has applied to serve some more. Transportation is an economic and workforce development issue. Many,many hours of debate, compromise and consideration were spent to get to a consensus on the LPA. Tigard and the SW Corridor have been represented for multiple years on this project and there has been a lot of opportunity for folks to get involved. He said he jumped on the opportunity as a daily transit user to get to and from work and for pleasure. It is time to move forward and approve this LPA for the future of Tigard and to leave a legacy for future generations. It doesn't take long to look around us and see the growth that is happening. He said he does not see space available to add more roads. He encouraged Council to vote to allow the city manager to sign the MOU and to approve the LPA. Art Lewellen, 1020 NW 9th Avenue,Portland, OR 97209, said he has been an advocate for this light rail project and is acquainted with others who dedicate their lives to building better transit systems. He said if this project penciled out or had enough things in its favor,as TIGARD CITY COUNCIL MEETING MINUTES—November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 4 of 15 opposed to things that are high impact,he would support it. But he cannot support it. He stated a need to thoroughly upgrade the bus system. The busses on the road today are obsolete and they do not convert very well to electric or hybrid electric operation.We have a lot of money we need to invest in the bus system,both in the vehicles and the design of how they incorporate with MAX. He said this is a priority for him and we cannot invest as much as we are in this project with all that it has wrong. He said information coming out about this project is few and far between and no one really knows about all the impact. He said it could be presented before the public for a vote but they would not be voting knowledgeably. The amount of new ridership, as he has figured,is negligible so he has focused instead on bus rapid transit for this corridor, especially on Barbur. He did not see Bridgeport Village as an adequate termination. The line should go to Wilsonville,at least. He left Council some designs and transportation system information which he has also given to Portland and Metro for a fair review. He thanked Council for their work and said he believed if this project does not come to a halt it will be taken to court and he did not want to see that happen. Carine Arendes,9524 SW North Dakota Street,Tigard, OR 97223, said she was glad to see a full house and there were more people in attendance than at many of the other public meetings she has attended as a member of the Town Center Advisory Commission and a member of Metro's SW Corridor Community Advisory Committee. She urged council to support the LPA. While it may not be the ideal alignment,light rail in the SW area will provide many benefits to our community both in the near term and 20-50 years from now. It is too important to our future to fail to support this opportunity. It is a once in a lifetime opportunity to invest in our community and transportation options for the SW portion of the region. The amount of investment that can be leveraged through a federal transportation project is unparalleled. Many desirable transportation improvements can be completed as part of this project-Building Main Street and the Tigard Triangle,rebuilding Hall Boulevard so it meets our community standards, fixing the Scoggins and Hunziker intersection—these are all projects we have wanted to do for a really long time. No light rail project or single transit project will fix congestion in our community. But what light rail will do is give our community options. Light rail will provide an alternative to I-5 travel through our community and is expected to shift the number of transit trips in the corridor from 9 percent to 16 percent.While light rail will not be used by everyone in the community,it will provide more options for those that have the least choices including the young, the old, people who do not drive or do not have access to a personal vehicle. Ms. Arendes said the provisions in the resolution, especially in Section 13,will ensure that this project serves the downtown, along with the Tigard Triangle and the 72°d Avenue corridor.A lot of people across the region and in Tigard,including members of council, have worked hard to get us to this point. She said she does not want Tigard to be left behind, the only part of the region without light rail. She said not to let the perfect be the enemy of the good and urged Council to vote in support of the resolution. Craig Dirksen, 9131 SW Hill Street,Tigard, OR 97223,is the Metro Councilor for District 3 which includes Tigard. He was Tigard's mayor from 2003 to 2012,has been a resident of TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 5 of 15 Tigard for 41 years and is the co-chair of the SW Corridor Steering Committee. This action tonight is a milestone in a very long process that will continue after tonight. It began over ten years ago when the City redid its Comprehensive Plan in response to the reality that the city is going to see a population growth of 20,000 people or more over the next 20 years. He said, "How do we cope with that kind of growth and still preserve and protect our single-family neighborhoods that have made Tigard a great place to live." It was recognized that better transportation choices would be needed to deal with that kind of population growth. Road improvements are planned and have been done, about$25 million was spent on improving Pacific Highway and improvements to I-5 southbound are underway.There are plans to work on Highway 217 and to widen I-205 and also reconcile the bottleneck on I-5 at the Rose Quarter. But it is recognized that those improvements are not going to be enough to provide the transportation system that the region needs and that this city needs to address that growth. It is recognized that the only way to get the additional capacity in addition to those things,is through improved high-capacity transit. Councilor Dirksen said a long evaluation process identified that light rail is the only mode available that will provide the capacity and will continue to provide the capacity we need over the next 20-50 years. The LPA is the result of much collaboration and compromise by all those involved and represents the best possible route through this region with the least amount of impact on existing development and communities. He strongly urged Council to approve the MOU and the LPA and continue to work with TriMet going forward to make sure the final design represents the very best it can be for the city and the region. Roy Rogers, 155 N First Avenue,Hillsboro, OR 97123, said he has been a representative of Washington County District 3 which includes Tigard. He said he was present to express his and the County's support of the LPA. He thanked Mayor Cook for his work on the Steering Committee and also council and staff for the hard work and leadership they have shown. He said this is a difficult project and it takes a lot of courage and tenacity to deal with the variety of issues, some of which we are still dealing with. He also applauded everyone for looking at the future. He mentioned attending a road opening in Tualatin recently and commented at that time that said he would not see what will happen in 30 years because of his age,but we can all count on this light rail project being used by those yet to be born or who have moved here.There have been many issues and compromises made by everyone. Portland compromised on Multnomah Village and PCC. Tualatin wanted it to go to their downtown. Tigard had to adjust as well with plans on Hunziker Street. This has huge economic opportunities. It will increase property values. It will increase jobs. It will increase access to Tigard's neighbors. It will increase mobility. This is a multi-modal project, probably one of the finest examples. There is a lot more work to be done and many more things to discuss and it needs to keep moving forward. The Washington County Board of Commissioners approved this LPA in September and wanted the Tigard City Council to know that they not only expressed strong support but that they want the line to go to Tualatin. He hoped that Tigard would join its neighbors,Washington County,TriMet, Metro,Portland, ODOT,Durham and Tualatin all have supported this as a worthwhile project. TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 6 of 15 Mark McGirr,President of Atiyeh Brothers Inc., 6750 SW Bonita Road,Tigard, OR 97224 said David Atiyeh is present as well. Mr. McGirr said he is Co-chair of the Coalition for SW MAX Railroad Options.Atiyeh Brothers and the Coalition support the preferred alternative recommended by the Steering Committee on August 13. He said the detailed and comprehensive work of Metro,TriMet, staff of the multiple jurisdictions involved and the Community Advisory Committee resulted in the best route, after taking into consideration the various and diverse concerns presented along the way. He said he sincerely commended all those involved for their part leading us to the PA. Over the last year and a half that they have been involved in this process they have personally,and the Coalition businesses,have learned a great deal about the multimodal transportation needs of the community and how the extension of the MAX rail line system to serve SW Portland through Tigard to Tualatin benefits both residents and businesses. He said he was not sure how he felt about it one and one-half years ago but now he truly believes it serves the needs of both residents and businesses. It is a good choice and is important for transit-oriented, and general economic development opportunities for Tigard. He said on behalf of Atiyeh Brothers and Coalition Members he requested that the Tigard City Council join the other jurisdiction members and vote to support the PA. James Caster, 7996 SW Ashford Street,Tigard, OR 97224,urged Council to vote no on the plan for a number of reasons. The first reason is that a MAX line will not solve the traffic congestion problem here. He said all one has to do is drive along Highway 26,Highway 84 or I-205 during rush hour. Traffic just crawls so it does not solve the problem. The second reason is the outrageous cost,which is touching$3 billion and will undoubtedly increase over time. He discovered that Metro wants Tigard to pay$550 million for subsidized housing. That is a tax burden of more than$22,000 per household,not a burden he wants to be saddled with. MAX will be subsidized forever as well as the subsidized housing that will be built along the rail line. The third reason is the human impact. Hundreds of homes will be demolished, forcing families to move against their will and dozens of businesses will also be demolished and those will have to be relocated at public cost. When the MAX line went into Gresham,violent crime spiked in Gresham and the same thing could happen here. His fourth reason is the election results in 2014. Both Tigard and Tualatin citizens voted against bringing MAX into their cities. The Tualatin Council listened and voted to stop MAX at their border. But in Tigard the government did all it could to minimize that result with a PR campaign and a smokescreen vote in 2016,which did not mention any costs that would be incurred with subsidized housing. Mr. Caster urged Council to vote no on this plan to prove that they respect the interests of the people of Tigard and if Council approves the plan it shows that they are beholden to big money and the Metro dictatorship,which will then dictate what happens in Tigard with respect to the MAX project and leave the people of Tigard voiceless. Teresa Dunham,Westside Economic Alliance, 10220 SW Nimbus, Suite K-12,Tigard OR 97223. WEA is a business advocacy group on the westside of the Portland Metropolitan Region that brings together the private and public sectors to advocate for policies that will enhance our region and help it to thrive economically. She asked for Council support in recommending the LPA as recommended by the Steering Committee. This LPA has already been endorsed by the other project partners in the region. The Westside Economic Alliance TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 7 of 15 has been a longtime supporter of the SW Corridor light rail project. It is a project that has been in the making for about ten years and she understands that Tigard has been at the table every step of the way. She thanked the City for their collaboration with other partners. Ms. Dunham said working together is what makes this a great place to live,work and play. She said this is a timely decision before Council tonight and their vote can impact the mobility of Tigard residents for decades to come. In 2016 people said yes to light rail. People here want options when it comes to transportation. Tonight Council can affirm the voters' decision from two years ago. She asked that there be no further delay with this project. The population has grown significantly since we started talking about this. Washington County welcomes 33 new residents a day or more than 12,000 per year. She said the population of Tigard has probably doubled since she went to high school here in the 1980s. Our state needs us to move people and freight in this region. Washington County is the economic engine of the state and we need tools to help alleviate the congestion on highways and roads. The SW Corridor light rail project will help this and help Tigard meet their goals in being a walkable and connected community. It will also help meet the goal of providing residents and others access to a balanced transportation system with more opportunities for multi-modal use. She asked Council to support our future by endorsing the resolution. House Representative Margaret Doherty,9370 SW Martha Street,Tigard, OR 97224, said she was here to speak in favor of the proposal on the table. She was on the Planning Commission for eight years and the issues brought up by light rail have all been addressed. She is impressed with the number of meetings held with the public and staff to discuss alternatives and this has been ongoing since 2007. She said it is very important go through and read what is in the staff report as one thing she learned while on the Planning Commission is that staff does a good job giving information to help with decisions. She said staff recommends this proposal and she repeated this and urged Council to approve the LPA and MOU. It is time for Tigard to move on and go along with everyone else in the corridor and approve light rail. Michael Wardwel, 10629 SW Washington Street, Portland, OR 97225, said he did not have a comment but had a question. He has a property bordering 70th Avenue and Dartmouth Streets. He asked what kind of span will be built there and how it will impact the bordering properties. He asked if there was someone who could address this. TriMet staff were available and spoke to him personally. Elise Shearer, 9980 SW Johnson Street,Tigard, OR 97223 said she has lived in Tigard for nearly 32 years. She asked Council to please keep the words connection and legacy in mind. She spoke in support of the locally preferred option. This is part of the future legacy to the next generations of Tigard citizens. She thanked Council for their active participation in planning that has been going on for eight years. It will allow Tigard to have a more complete and total transportation system to serve our city and the neighboring cities which have long been travelling through Tigard adding to their traffic issues. This route will connect our suburban citizens with faster and more efficient transportation to key educational and health institutions such as our veterans to the VA Hospital and our students to Portland Community College and Portland State University. Tigard businesses will have better TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 8 of 15 connections enabling them to participate and access the metro economy and allow their employees another option for commuting and transportation. Ms. Shearer said transportation and housing are two huge factors in everyone's household budget. Many of our citizens that she hears from every day at her job are being driven further and further out of the area,trying to balance the cost of housing with longer commutes. Ms. Shearer said she was excited about the passing of the affordable housing bond and encourages the City of Tigard to participate in the public/private partnerships along the SW Corridor route that will make more affordable housing in our area as properties become available. She said the city already established a relationship with non- profit groups and has a 100 percent success rate with these affordable housing projects. The future station locations in the Tigard area,ranging from a possible three to six,Tigard Triangle,all the way to Bridgeport will help to provide faster access to key essential service locations as well as expanding employment opportunities for our citizens. She asked Council to keep in mind that the biggest hurdles will be to enhance cross-town (east-west) traffic flow and added transit routes to bring people to the stations and to maximize the number of parking spaces in the park and rides that will be needed. She said she encourages the City Council to advocate and plan for these future transportation improvements also and truly make the SW Corridor a resounding success for our city and our citizens. Caron Grover signed up but did not speak. Kate Rogers, 9527 SW Brooklyn Lane,Tigard, OR 97224, said she is the Chair of the Tigard Town Center Advisory Commission and their members have spent the last year educating themselves on the SW Corridor and have served on the Citizen Advisory Committee,held briefings with the staff of TriMet and Metro as well as a joint session with the Tigard Transportation Advisory Committee. Council has a copy of their recommendations based on that thorough look at the SW Corridor and LPA. She reinforced that the alternative along with the Memorandum of Understanding makes this an outstanding alternative. It allows us to link together the Tigard Triangle urban renewal district with the downtown. It increases walkability around those stations as well as equitable business opportunities. More importantly it provides an opportunity to increase affordable housing. She urged Council to sign the Memorandum of Understanding and approve the Locally Preferred Option. E. Staff response to testimony Community Development Director Asher responded to testimony and concurred that it is nice to have so many people here and he appreciated all the testimony. He said the opinions are great to hear and did not have too much to respond to. He said Mr. Castor's testimony had some opinions that came across more as facts and he was not sure of their accuracy. He did not want to refute each one but if there were questions about housing and costs, the appearance of crime on prior projects,past elections,Tigard's Charter,Tualatin's Charter or any other topic he or other people present can answer them in more detail. He felt the rest of the testimony was self-explanatory and did not require rebuttal. TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 9 of 15 F. Council Questions Council President Snider asked Community Development Director Asher if he had seen the written testimony submitted by Linda Monahan suggesting a change to the MOU and asked if this language is in the current draft MOU as he could not find it. Mr.Asher said he could not find the words "working towards agreement." Council President Snider said since he,Mr.Asher, and Mayor Cook did not see that language,he would move on. Council President Snider asked about written testimony from the Crestwood Homeowners Association and whether adjustments should be made to the description of station connections on 68th Avenue and 99W. He said they are asking Tigard staff to work with Portland staff. Mr.Asher said if we are being asked to collaborate so it is a safe and convenient access for riders,he concurred. Councilor Woodard asked when Council was told of the operations yard on the east side of Hall Boulevard and how recently was that alignment change made. Community Development Director Asher said they were probably made aware in 2016. Councilor Woodard said he did not see this alignment until April or May of 2018. If anyone saw that before that timeframe he was not included. He asked for the exact date it was presented. Councilor Woodard said he learned of the LPA in August of 2018 at a meeting where the Steering Committee made a recommendation to the Metro Council to approve the preferred alternative. He said staff says we do a good job of keeping the public informed of public meetings but there was nobody there but elected officials,board members and a few residents and business owners, only 15 people were at that very important meeting. He did not understand why that room was not full. He said if Mr.Asher was telling him this alignment came to the Tigard City Council in 2016, this is a shock to him. Councilor Woodard said he had no faith that politicians or special interests are going to stay committed to an MOU. He asked City Attorney Rihala if an MOU has any legal bite to it and if not,what instrument does. City Attorney Rihala replied that an MOU is not written to be judicially enforceable but is a legally binding document in that it is a contract signed by two parties. Councilor Woodard said he had no doubt that in 3-10 years from today things will have moved forward but he did not believe there was enough bite to this deal to solidify it enough for the taxpayers. He asked again when the Maintenance&Operations Facility and LPA changed because he did not see it. Council President Snider said he was not aware of it until then or maybe a few weeks before. Community Development Director Asher recounted the meetings and briefings held through 2016 and mentioned March of 2018 where a comprehensive update was held and he is very sure that it was discussed at that session because we were very close to having an Initial Route Proposal selected. He was unsure if this was the first moment Council heard of it Councilor Woodard said he is not anti-rail but is anti-huge tax increase. He said he was supportive until the alignment went "so far out of whack." This public process changed dramatically within the last six months and for the most part, the public does not know what these changes are or how it will TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 10 of 15 impact their environment,politically, socially or economically. They do not know it and are in for a surprise. Mayor Cook closed the public hearing. H. Council Deliberation Councilor Woodard read a statement. "This will be my last statement. I will only be at a couple more meetings so I want to make sure I leave my historical statement documented for this point forward. I have no doubt the SW Corridor MAX light rail preferred alternative will be approved this evening by Council.The resolution is recommended by the Project Steering Committee. This will pass quietly into the night and for some time and within the next few years future council members and the public will bear the brunt of our decisions tonight should the 2020 SW Corridor regional light rail project pass a regional vote. And should TriMet's moral obligation within tonight's resolution fall on deaf ears sometime in the near future, I hope that's not the case. I really don't. Because early on I was for this,up to about six months ago,and the reason, the only reason, I ran for mayor. I said many times eight years was enough,but this is just wrong, the way it was done. This isn't what I signed on for and this is what I fight for. What's concerning to me tonight is the only legal commitment I see by TriMet within this resolution can be found in Section 9 which states, `TriMet and Tigard will develop an intergovernmental agreement (that is the legal document, that is the one with teeth), to define the scope and budget necessary for staff participation in project activities.' That's it. That is the only legal commitment. It does not guarantee or make a legal binding commitment to assign or fund responsibility or accountability to meet Sections 1-8 of resolution which specifies and identifies the things Tigard needs,materially and financially from the project,which were thoroughly identified within a City of Tigard memorandum dated October 22,2018, and titled The SW Corridor MAX Light Rail Project's Compliance with State-Mandated Land Use Criteria in the City of Tigard. This is where Criteria 3 and 11 come from. These things are important and you're not going to get those details tonight. If you weren't in previous meetings you don't know what that is nor do you know the impact of not having those things. Most specifically, Criteria 3 will tell you that the preferred alternative rail alignment, economic and social and political impact,in short. And Criteria 11 is to maintain downtown Tigard as the city's primary transit center for rail and bus,which it doesn't. So you have a disconnect at city center and you have no connection to the downtown area. That's a problem. My no vote tonight is based on what I determine to be a risky business deal for the City of Tigard and taxpayers,which I believe is more likely than not to cost Tigard homeowners and businesses dearly within the next 4-10 years for lack of a legal intergovernmental agreement with TriMet to meet Tigard's Criteria 3 and 11 land use criteria for city master plans,land use and city goals. These compliment the state land use goals and they are not going to do that. By voting no tonight I hope it serves as a call to action for the new council and future councils to hold TriMet accountable to meet our stand-mandated criteria as envisioned by past and current hardworking staff,boards, committee and commission members and former councilors, and without unnecessary financial harm to city services,programs and the taxpayers. My hope for Tigard is that the next council proves my no vote wrong. I really do. Prove it to me that I'm wrong." TIGARD CITY COUNCIL MEETING MINUTES — November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 11 of 15 Councilor Anderson said he had no reason to think that TriMet will not comply with the MOU. He was on the committee with staff and TriMet working on Tigard's concerns with land use issues. He said they reached a good compromise. They negotiated and Tigard got a very good deal. Tigard is not putting any money into this. It is adjacent to downtown and will serve downtown. It is 5 percent engineered so we don't know exactly how the transit center will fit into that but we have a very good planning staff here and we will develop the downtown into a place that Tigard will be proud of. Council President Snider said he struggled with a few criteria and to determine if this is the best compromise he needs answers to a few questions. He said he is stake holding for city residents and asked for the estimated additional capital expense and impact on travel time a project west of Hall Boulevard would incur. Mayor Cook reopened the public hearing at 7:49 pm. Community Development Director Asher clarified that the west of Hall Boulevard station location has long been discussed in the context of the Minimal Operating Segment (MOS). TriMet Director of Project Development and Permitting Unsworth referred to Washington County Commissioner Rogers' earlier comments that everyone wants it to get down to Bridgeport Village in Tualatin and the intent of the project is to do that. The MOS is not part of the LPA being voted on today. The MOU though, says if there is not enough money they will look at shortening the line and having a Minimal Operating Segment that stops in Tigard. TriMet will work collaboratively with the City of Tigard to form a recommendation that would go to the Steering Committee. He said the question is why we would not want to turn north and cross on the west side. There are similar impacts, the line would go up and over the railroad at 23.5 feet from the bottom of the rails to the bottom of the structure, coming up over Hall Boulevard and impacting the City Hall buildings and probably not landing until after Ash Avenue. So we would be going out of direction and adding probably$80 to$100 million in cost. It does not set things up well to eventually go on south to Tualatin.The Steering Committee said it is important to go to Bridgeport but the project may be phased and the environmental impact statement will have an MOS statement as required by federal partners. It would add six minutes of additional travel time. Mayor Cook closed the public hearing at 7:52 p.m. Council President Snider commented that we've been at this for years and have had the details for months. He said he doesn't love it but the question we always have to ask is, "Can I live with it?" and from that standpoint he is supportive of the project, satisfied with answers he just received and prepared to act. Councilor Goodhouse said there were different public votes and for the first ballot measure he gathered signatures so Tigard residents could have a vote. On the third vote he was on the council and stayed silent so he could get a true feel from the voters. It did barely pass so he takes the will of the voters into account. There was more of a process in Tigard than TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 12 of 15 in other cities and the Charter changes have made a difference as far as the citizens having a say in it and the funding. He said he has stayed true to making sure Tigard is not putting any money into it except for staff time as stated in the agreement. He noted that comments were made tonight on enforcing the MOU with TriMet and said that the MOU will be entered into the Federal Transportation Agency and if TriMet does not follow through, Tigard can go to the FTA to affect or stop the project. Council President asked if language needed to be added to the resolution about collaborating with Portland on the Crestwood neighborhood issues. Community Development Director Asher said the MOU is specific to Tigard and TriMet and the design of the project in Tigard. But this is a non-controversial item not requiring a side agreement with TriMet. He said Tigard will be collaborating with Portland on the north and Tualatin on the south. Mayor Cook agreed there are no perfect alignments. This is a negotiation and we have to move forward. Tonight is not a vote on light rail or not;it is a vote on the LPA. There are many things we will still fight for such as walkability around all stations or better bus service. We will continue to work with other entities to improve connections between Hillsboro and Tigard, for example.With the number of people coming here congestion will increase. This doesn't solve the congestion but will reduce the increase. Mayor Cook said his second point is that citizens can make a change. Looking over his years on this committee,he remembered a time ten years ago where, as a representative of the Tigard Chamber of Commerce,they got on a TriMet bus at the Tigard Water District Building and toured the corridor. He said, "Ask anyone along I-5 alignment or the Portland Clinic and other medical offices if their speaking to the committee made a difference.Ask the ballroom dance company if their communication made a difference. Ask the business owners on Beveland Street.Ask any low-income housing advocate in areas near our downtown if their advocacy made a difference. It did." It isn't the best alignment, but it is the best we could come up with. Because other citizens spoke up it caused the alignment to change. He noted that Council President Snider often states that we better have a darn good reason to not follow through with a city board or committee recommendation.And committees such as the Tigard Transportation Advisory Committee and the Town Center Advisory Commission both asked Council to unanimously approve this which carries a lot of weight.They are not staff,TriMet,Metro or Washington County; these are our citizens, and they are asking us to approve this. He said this is why he will be voting for this. Council President Snider moved to authorize the City Manager to sign a Memorandum of Understanding (MOU) with TriMet for the SW Corridor MAX light rail project. Councilor Anderson seconded the motion. In response to a question from Councilor Goodhouse, City Manager Wine said she will sign the agreement tonight and it will be delivered to TriMet for signature tomorrow. Mayor Cook conducted a vote and the motion was approved by majority vote. TIGARD CITY COUNCIL MEETING MINUTES—November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 13 of 15 Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Council President Snider moved to approve Resolution No. 18-47 approving the Preferred Alternative alignment as recommended by the Project Steering Committee and endorsed by the project partners. Councilor Anderson seconded the motion. City Recorder Krager read the number and title of the resolution. Resolution No. 18-47—A RESOLUTION APPROVING A PREFERRED ALTERNATIVE ALIGNMENT FOR CONSTRUCTING THE SOUTHWEST CORRIDOR LIGHT RAIL PROJECT IN THE CITY OF TIGARD, as recommended by the Project Steering Committee and project partners Mayor Cook conducted a vote and the motion passed by a majority vote. Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider V Councilor Woodard ✓ 3. EXECUTIVE SESSION None Scheduled. 4. NON-AGENDA I'1'LMS None • 5. ADJOURNMENT At 8:03 p.m. Councilor Goodhouse motioned for adjournment. Councilor Anderson seconded the motion and Mayor Cook conducted a vote. The motion to adjourn passed unanimously. TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 14 of 15 Yes No Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Carol A. Krager, City Recorder Attest: John L. Cook, Mayor Date TIGARD CITY COUNCIL MEETING MINUTES —November 13, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 15 of 15 1111 ,, City ofTigard Tigard City Council Meeting Minutes TIGARD November 20, 2018 . BUSINESS/WORKSHOP MEETING A. At 6:32 p.m. Mayor Cook called the city council meeting to order. B. Deputy City Recorder Burgoyne called the roll. Name Present Absent Councilor Woodard Councilor Anderson Mayor Cook Councilor Goodhouse Council President Snider C. Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Call to Council and Staff for Non-Agenda Items—City Manager Wine stated there was a citizen comment sheet for people to sign up to speak on at the front of the room. 2. CONSENT AGENDA: (Tigard City Council A. PROCLAIM SMALL BUSINESS SATURDAY: Councilor Goodhouse moved to approve the Consent Agenda as presented. Councilor Anderson seconded the motion and Mayor Cook conducted a vote. The motion passed unanimously. Name Yes No Councilor Woodard(absent) Councilor Anderson Mayor Cook Councilor Goodhouse Council President Snider B. CITIZEN COMMUNICATIONS: TIGARD CITY COUNCIL MEETING MINUTES — November 20, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 1 of 8 Roy Rogers,Washington County Commissioner, said Commissioner Andy Dyke wished he could also be here,but unfortunately had other obligations. He presented Mayor Cook with a plaque of appreciation,talked about how long the two have known each other and how their relationship had grown over the years. He thanked Mayor Cook for his service. Linda Monahan, 10248 SW Kent Court,Tigard, OR 97223,addressed the upcoming council vacancy and said the process for this needs to be a transparent one and one that is done in a public meeting so the public could be present and hear from potential candidates and needs to be done by the incoming 2019 city council. She stated that she would not be a candidate for the two-year vacancy. Toraj Khavari, 13293 SW Woodshire Lane,Tigard, OR 97223, said the Friends of the Bull Mountain Park would like to gift the city the ORPA Volunteer Service Award that Bull Mountain Park received for the nature play area. He said this was achieved because of business and community working together and thanked the city council for their support and said they could not have achieved this without their help. Mayor Cook said the city could not have done it without the Friends of the Bull Mountain Park as well and thanked them for all their hard work. 3. CONSIDER APPOINTMENT OF TIGARD TRANSPORTATION ADVISORY COMMITTEE MEMBERS Sr. Transportation Planner Roth presented this item. New Transportation Advisory Committee members in attendance included: Richard Keast,Holly Koontz,Lonnie Martinez, and Carl Fisher Councilor Anderson moved to approve Resolution No. 18-48. Council President Snider seconded the motion. Deputy City Recorder Burgoyne read the number and title of the resolution. Mayor Cook conducted a vote and Resolution No. 18-48 passed unanimously. Resolution No. 18-48—A RESOLUTION REAPPOINTING LONNIE MARTINEZ AS A VOTING MEMBER,APPOINTING CARINE ARENDES,CARL FISHER,AND RUTH HARSHFIELD AS VOTING MEMBERS AND APPOINTING RICHARD KEAST AND HOLLY KOONTZ AS NON-VOTING AL I ERNA I'L MEMBERS OF THE TIGARD TRANSPORTATION ADVISORY COMMII'IEE Name Yes No Councilor Woodard(absent) Councilor Anderson Mayor Cook Councilor Goodhouse Council President Snider 4. JOINT MEETING WITH THE PARK AND RECREATION ADVISORY BOARD TIGARD CITY COUNCIL MEETING MINUTES — November 20, 2018 City of Tigard 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov Page 2 of 8 PW Division Manager (Parks &Recreation, Streets, Green Team) Martin presented this item. Members of the PRAB in attendance included:Wayne Gross, Claudia Ciobanu,Darlene Dick, Sean Ernes, Scott Winkels and Dave Brown. PRAB member Gross said that as part of Council's Goals in 2017, they decided to expand recreation opportunities,and as committee members that fully support this council goal,they have been working on this. He agreed that recreation is an essential city service and contributes to the quality of life in the community and maintaining and expanding on this has been their single highest priority. He explained that recently the program has been unstable because of budget cuts and the loss of a full time staff person. He requested that in January, once the new council is on board, that council have a large discussion about the recreation program, filling the staff position, and making funding the recreation a priority for the New Year,or else, the committee fears they will lose an entire year without any recreation programs for the community. He said the current state of recreation is unacceptable and that one way to remedy the funding issues would be to increase the Park and Recreation Fee. PRAB member Ciobanu said losing Anthony Markey was a loss to the program and said she would like to see the previous good work continue. She stated there is a need to work on having trust from the public, especially if they continue the program,because it is hard to imagine Tigard without a solid park and recreation program. • PRAB member Winkels added that of all the programs lost so far, the one that people have really felt is the after-school program. He urged council to support a increasing the Park and Recreation Fee. Council President Snider asked Mr. Gross if there were to be an increase to the Parks and Recreation Fee,if he would like to see that go specifically to recreation. Mr. Gross replied yes. Councilor Anderson thanked the board for the good job they have done this past year and said council is in favor of continuing the recreation program and promised they would look at this in the new year. Council President Snider and Councilor Goodhouse agreed. Mayor Cook said for the most part he agrees with everything that has been said. He understands the timing concern. However, this is a budget discussion issue and it is difficult to discuss fees prior to the budget committee discussion in April. He said the problem with just raising the Parks and Recreation Fee an additional$1.50 per household is that it could hurt any future chance of voters approving a levy. Mr. Gross said the board is concerned about the city being able to keep the recreation program going and for it to be financially stable now and in the future. PRAB member Dick said the good thing about increasing the Park and Recreation Fee is that it could be designated for recreation only. Mayor Cook recommended the incoming city council look at sending a separate levy to the voters that focused just on the parks and recreation program. TIGARD CITY COUNCIL MEETING MINUTES — November 20, 2018 City of Tigard 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov Page 3 of 8 Mr. Gross said the second issue of concern the board has is with park maintenance. He explained there have been a number of properties the city has acquired through the parks bond and new developments like the River Terrace Park and proposed downtown plaza, the board is concerned about increasing park maintenance demands. He said the board does not have any suggestions on how to approach this, but want to get this on Council's radar. Mayor Cook agreed. He said people ask him all the time why the city continues to acquire land when they cannot take care of the land they currently have. Council President Snider stated this issue has been one of the concerns that has plagued council since he took office,and said he would like to continue these types of dialogues and not to give up. Ms. Ciobanu said Tigard is not the only entity that struggles with this problem,and understands how difficult it is balancing all of the city's priorities. Ms. Ciobanu talked about the money received from the Transient Lodging Tax last year, the board's discussion on how to use this money wisely so that they fulfill the tourism requirements that come with the money and how the board does not feel that existing city facilities support tourism activities. She said the Lasich property would be ideal for sports fields, similar to what the City of Hillsboro has or even a facility that could be rented out. Mayor Cook said he likes their suggested use and property selection. Council President Snider asked if staff has given any thought to this. Mr. Martin said they have not thought a lot about this,but that something like this would require less overall maintenance. Councilor Anderson said that as council liaison to the Parks and Recreation Board,he has been privy to their discussions, and said that something like this would take a couple of years to complete, so they may want to look at some smaller projects in the meantime. Ms. Ciobanu agreed. Mayor Cook thanked the board for volunteering and all their hard work. He appreciates their efforts. 5. QUARTERLY CAPITAL IMPROVEMENT PLAN UPDATE City Engineer Faha presented this item, explained the process and briefed council on current projects, discussed the status of parks projects, streets projects,water projects, sanitary sewer projects stormwater projects and whether each are currently on budget and schedule,and if they will need long-range park maintenance. She discussed other projects like the American with Disabilities Act (ADA) Transition Plan, the Public Works facility and yard,and showed pictures of projects near completion along the Fanno Creek Trail. Council President Snider asked about the adaptive signals project on Upper Boones Ferry Road. Ms. Faha said they found they have to do some improvements but not a lot and she expects the rest to be in place within the next year. TIGARD CITY COUNCIL MEETING MINUTES —November 20, 2018 City of Tigard 1 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov 1 Page 4 of 8 Councilor Goodhouse asked about the water pipes located on 1215`Avenue and if there needs to be any improvements down the road with water from the Willamette. Ms. Faha explained they are looking at current and future growth, and that at some point in the future we will require additional water and water resource. Mayor Cook recused himself from the following discussion,wished everyone a Happy Thanksgiving and turned the meeting over to Council President Snider. 6. CONSIDER CITY COUNCIL VACANCY APPOINTMENT PROCESS Council President Snider introduced the item and invited Councilor-Elect Liz Newton to join council at the table for the discussion. City Manager Wine presented this item and said staff was presenting this tonight so that council could discuss and open the application process to fill the two-year vacancy that will be available at the end of this year. She explained that earlier in the year council discussed the alternatives and received public comments on how to proceed with the pending vacancy. At the time, council chose to fill the vacancy by appointment with the selection to be made by the 2019 council,and said that all of the deliberations about the open council seat would be made during a noticed council meeting and would be open to the public. She said the process is entirely up to council, and if they were to open the application process now,an appointment could be made as early as possible, once the 2019 council took office. She said staff is looking for guidance to declare the seat vacant at the end of the year,identify a process for opening up the application process, direct staff to notice the application process,discuss the kinds of questions council would like to see on the application, and how to proceed with candidate interviews. Council President Snider said he submitted a draft proposal earlier and that the proposal is simply his thoughts and asked council for input. Councilor Anderson said he would like to go along with staff's recommendations and act as soon as possible in 2019. Councilor-Elect Newton agreed and said it is important to make the process as detailed as possible so the public understands what is going on and when. She is pleased to see there is some emphasis given to the city's financial situation in the suggested questions and that the process be detailed, clear and done in a public forum. Council President Snider stated that while he wants this to be a public process he would like to have each candidate answer questions from council separately and in a way where each of them did not hear the others answers. Councilor Goodhouse said the application process should be very detailed and in the form of essay questions,along with a resume and a question that is specific to the city's budget and police safety. Council President Snider said his proposed questions are intended to show a candidates thought process and ability to make complex decisions. TIGARD CITY COUNCIL MEETING MINUTES —November 20, 2018 City of Tigard 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov Page 5 of 8 Councilor Goodhouse suggested including the time requirements required of a city councilor in the application. City Manager Wine said Council President Snider's proposal could act as a foundation, the application could include one to two screening questions and then each councilor could include a separate question during the interview stage. Council President Snider suggested having three screening questions on the application for candidates to answer. Councilor-Elect Newton agreed that having three screening questions on the application is a good idea,and having one question that asks candidates what they think the primary issue is that council faces. She also agreed with Council President Snider's suggested question about Measure 5 and 50 and what the city's role is in addressing these and what the impact is to the city. Councilor Goodhouse agreed. Council discussed the interview structure, selection process for interviewing candidates,selecting three to four candidates from the application process to interview and time limits for interviewing each candidate selected. Council agreed an appropriate timeframe for interviewing each candidate should be forty-five minutes and that each member of council have two questions for each candidate during the interview process. Council discussed whether they should bring their two questions on the evening of the interview or if they should submit their questions prior to staff to include with the agenda packet. City Manager Wine said in order to have council questions published with the agenda for the interviews at their January 15,2019 meeting, council would need submit their questions to staff by January 8. Councilor-Elect Newton said she is not sure how firm they want to be on the number of candidates they select to interview. Council President Snider said they could choose to interview more than three to four candidates, depending on how many applications they receive. Councilor Goodhouse asked the city attorney if there is any legal problems if council does not publish their questions prior to the interviews. City Attorney Rihala replied that as long as council did not coordinate their questions in advance, and they asked each candidate the same question, there would be no problem. City Attorney Rihala explained that once the questions are submitted, someone could request a copy of the questions through a public records request. Councilor-Elect Newton said she does not have a problem with that or with people knowing the questions in advance. Councilor Anderson agreed that candidates should have the questions in advance. TIGARD CITY COUNCIL MEETING MINUTES —November 20, 2018 City of Tigard 1 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov Page 6 of 8 Council agreed after discussion to submit questions prior to the interview and to have them published with the packet. Ms. Wine explained what staff heard from council: to use Council President Snider's submitted proposal,including the timeline and for each councilor to submit two interview questions by January 2 so they can be published with the agenda material for the meeting on January 15 when council will conduct forty-five minute interviews with each of the candidates selected. Council President Snider said he was worried about having enough time and asked council if they wanted to allow candidates to ask council questions. Councilor Anderson asked the City Manager if this was the only agenda item scheduled for this meeting. Ms. Wine replied yes. Councilor-Elect Newton said she would give up one of her questions so there is enough time for candidates to ask council a question. Council President Snider asked if council wanted to ask one question each due to time restraints. City Manager Wine suggested each councilor submit two questions prior and ask only one of the questions submitted during the interviews. She confirmed they would need to ask each candidate the same question. Ms.Wine said there is a step that needs to happen at the January 8 council meeting where council needs to select the finalists. Council President Snider agreed that on January 8 council would need to deliberate and agree on which candidates they will interview on January 15. • City Attorney Rihala asked what process they would use to select candidates to interview. Will they be deciding by consensus or ranking candidates by their top priorities. Council President Snider said they would deliberate based on the quality of the applicants they receive. Councilor Anderson suggested ranking the applicants. Council agreed. Council President Snider suggested each councilor come to the January 8 meeting with their top ten candidates. Councilor Anderson moved for approval to declare a city council seat vacancy as of December 27, 2018,open a process to accept applications to fill council vacancy and direct staff to make immediate public notification of the vacancy and application process. Councilor Goodhouse seconded the motion. Motion passed by a unanimous vote. TIGARD CITY COUNCIL MEETING MINUTES —November 20, 2018 City of Tigard 1 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov Page 7 of 8 Name Yes No Councilor Woodard(absent) Councilor Anderson Mayor Cook Councilor Goodhouse Council President Snider 7. NON AGENDA ITEMS—None. 8. EXECUTIVE SESSION None. 9. ADJOURNMENT At 8:17 p.m. Councilor Anderson moved to adjourn the meeting. Councilor Goodhouse seconded the motion. Motion passed by a unanimous vote. Name Yes No Councilor Woodard(absent) Councilor Anderson Mayor Cook Councilor Goodhouse Council President Snider Kelly Burgoyne,Deputy City Recorder Attest: John L. Cook,Mayor Date: TIGARD CITY COUNCIL MEETING MINUTES —November 20, 2018 City of Tigard 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov Page 8 of 8 AIS-3675 4. Business Meeting Meeting Date: 12/18/2018 Length (in minutes): 5 Minutes Agenda Title: Contract Award - Fanno Creek Trail Alignment Study Prepared For: Joseph Barrett Submitted By: Kelly Burgoyne, Central Services Item Type: Motion Requested Meeting Type: Local Contract Review Board 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 city's Fanno Creek Trail (Bonita Road to Tualatin River) alignment study to GreenWorks, PC? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends the Local Contract Review Board award the contract for the city's Fanno Creek Trail (Bonita Road to Tualatin River) alignment study to Greenworks, PC in an amount not to exceed $148,225 and direct the City Manager to take the steps necessary to execute the contract. KEY FACTS AND INFORMATION SUMMARY The city needs to hire a consultant to assist with development of a preferred alignment of the Fanno Creek Trail between SW Bonita Road and existing trail terminus at the Tualatin River. The Fanno Creek Trail is the main north-south walking and cycling route in this part of the Metro area, and is the parallel walking and cycling route to Interstate 5 and OR 217. It is a Regional Trail in Metro's Regional Transportation Plan Regional Pedestrian and Bicycle Networks. However, its effectiveness as a transportation facility is significantly reduced by the many gaps and substandard areas of the trail in Tigard. This project will select the alignment and complete preliminary design/cost estimates of the final missing link. This will position the City to seek finds for final design and construction to connect all portions of the existing Fanno Creek Regional Trail and provide a safe, comfortable, enjoyable, and reasonably direct travel experience for community members who see walking or cycling as a viable transportation option in this area. The city issued a Qualification-based Request for Proposal (QBS) for the services in late October. The city needed to use a QBS process for this project as engineering services, a significant portion of the needed work, is covered by the city's and state's QBS process. Upon closing in mid-December, the city received proposals from four firms: • GreenWorks, PC •Alta Planning + Design •Parametrix •Shapiro Didway LLC A staff selection team reviewed and scored the proposals based on the criteria detailed in the QBS packet (which excluded price under QBS rules) and found GreenWorks, PC to be the most qualified for the work. Staff entered into negotiations with GreenWorks for the work and the sides were able to agree on a complete scope and price of$148,225. Staff is recommending GreenWorks, LLC receive the city's contract for the work not exceeding this amount. OTHER ALTERNATIVES The Local Contract Review Board may reject this award recommendation and direct staff to rework the scope of services and resolicit for the work. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS DATES OF PREVIOUS CONSIDERATION This is the first time the Local Contract Review Board has discussed this potential contract. Fiscal Impact Cost: $148,225 Budgeted (yes or no): Partial Where Budgeted (department/program):Transportation CIP Additional Fiscal Notes: In the FY 2019 First Quarter Supplemental, appropriations of$110,000 were allocated for this contracted services for this project in the Transportation CIP Fund. In addition, staff will ask for $55,000 to complete the work in FY 2020. Attachments No file(s) attached e .. AIS-3687 5. Business Meeting Meeting Date: 12/18/2018 Length (in minutes): 10 Minutes Agenda Title: Resolution to Delegate Authority to Hold a Public Meeting on Affordable Housing Prepared For: Schuyler Warren, Community Development Submitted By: Schuyler Warren, Community Development Item Type: Motion Requested Meeting Type: Council Resolution Business Meeting - Main Public Hearing: No Publication Date: Information ISSUE Shall City Council delegate to Tigard Community Development Department staff the authority to take all necessary and reasonable actions to hold a public meeting in compliance with HB 4006, OAR 813-112-0030, and the City's HB 4006 grant obligations? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends adoption of the resolution to delegate authority to hold a public meeting on affordable housing. KEY FACTS AND INFORMATION SUMMARY Background In its 2018 regular session, the Oregon State Legislature passed House Bill 4006. This bill includes several provisions related to affordable housing in cities with populations over 10,000 and with more than 25% of their households rent-burdened, including: 1. Requirement to complete an annual survey on affordable housing strategies. 2. Requirement to report annual housing and affordable housing production totals to the Department of Land Conservation and Development (DLCD). 3. Requirement to hold a public open house to discuss causes and consequences of severe rent burdens within the city, the barriers to reducing rent burdens and possible solutions. 4. Allocation of funds to DLCD to provide technical assistance to cities in increasing housing affordability. Items 1 and 2 — the annual survey and report to DLCD —will be submitted by the Community Development Department. City of Tigard Grant Submittal The city was awarded a grant under Item 4 to create an Affordable Housing Plan. The city is not required to provide any match for this grant, and no funds move through the city; the consultant is paid directly by DLCD. Work Plan and Schedule The work plan for this grant includes holding a public open house to discuss affordable housing opportunities and barriers, which will fulfill the requirements of Item 3 above. Due to time constraints and the delay in receiving a completed MOU for grant work, the required public meeting will be held in early 2019. Staff is working with local housing providers and advocates, the consultant, and others to organize a resource fair and public open house at St. Anthony's to inform the public about the kickoff of the affordable housing work, to solicit feedback, and to fulfill state requirements and the terms of the grant MOU. The administrative rules allow the City Council to delegate authority for a public meeting to discuss affordable housing under OAR 813-112-0030. Staff seeks Council approval to delegate this authority to the Community Development Department in order to combine all required meetings and ensure that the public has adequate opportunity to provide input on the work. Work Product A preliminary background report will be completed by early 2019. This document will form the basis for further work in recommendations and proposed policy directions. The final work product of the grant will be an Affordable Housing Plan. This document will be ready for the Council to consider adopting in June 2019. Final adoption is not mandatory under the terms of the grant. OTHER ALTERNATIVES Alternatively, Council could opt to decline to delegate authority and hold a separate meeting on affordable housing during a regular Council session. The public open house would still occur under the terms of the grant. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Council Goals Issues for Further Council Discussion and Policy Direction: Affordable Housing: consider additional program or policy initiatives DATES OF PREVIOUS COUNCIL CONSIDERATION N/A lm.....�.... ..............».,»:..,...s._-,.�..,...,..—....,,..,.,. .,,,,,>...... ........ ..,_.._�.�,....,,,. :._...»..mow ,.� ,..,,,,.»,:..�...,.v. ..,,...�......,..,,....,-..-m�-n...e.-.,..........�,....» ,d Attachments Resolution CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- A RESOLUTION TO DET EGATE TO TIGARD COMMUNITY DEVELOPMENT DEPARTMENT STAFF THE AUTHORITY TO TAKE ALL NECESSARY AND REASONABLE ACTIONS TO HOLD A PUBLIC MEETING IN COMPLIANCE WITH OREGON ADMINISTRATIVE RUT F 813-112-0030 AND THE CITY'S 2018-19 OREGON HOUSING NEEDS PLANNING GRANT OBLIGATIONS WHEREAS,House Bill 4006,passed in 2018,designates a severely rent burdened city as one where at least 25 percent of the renter households spend more than 50 percent of their household income on gross rent for housing;and WHEREAS,the City of Tigard meets the definition of a severely rent burdened city;and WHEREAS, Oregon Administrative Rule 813-112-0030 requires that severely rent burdened cities must annually hold a public meeting on the causes and consequences of severe rent burdens within the city, the barriers to reducing rent burdens, and possible solutions to reduce the rent burdened households within the city;and WHEREAS, the City was awarded a grant from the Depattinent of Land Conservation and Development, funded by House Bill 4006,to develop an Affordable Housing Plan;and WHEREAS, the terms of this grant require the city to hold two public meetings on the topic of affordable housing and WHEREAS,the Council desires to combine these efforts in order to maximize the impact of each;and WHEREAS, the Council will be informed of the results of the public meeting through the Affordable Housing Plan and report by no later than June 30,2019. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The Council delegates its authority under OAR 813-112-0030 to hold an annual public meeting on affordable housing to Tigard Community Development Department staff. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2018. RESOLUTION NO. 18- Page 1 Mayor-City of Tigard ATTEST: City Recorder-City of Tigard RESOLUTION NO. 18- Page 2 AIS-3663 6. Business Meeting Meeting Date: 12/18/2018 Length (in minutes): 40 Minutes Agenda Title: Joint Meeting with the Tigard Budget Committee Prepared For: Toby LaFrance 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 Update Budget Committee on process leading into FY 2019-20 budget meeting. STAFF RECOMMENDATION / ACTION REQUEST Staff will be seeking feedback regarding City Manager Marty Wine's budget direction, departmental budget instructions, and the proposed schedule for the budget process. KEY FACTS AND INFORMATION SUMMARY Staff are actively working on their FY 2019-20 budgets. They received the City Manager's budget direction and instructions and are working on their requested budgets. The agenda for the joint Budget Committee meeting is as follows: 1) Review of Tigard's 2-year budget plan, status of the plan, and presentation of budget direction from City Manager Marty Wine. 2) Summary of instructions given to departments in order to comply with City Manager Wine's direction. 3) Review of the budget calendar. The primary direction needed in the meeting are: A) Endorsement of Tigard's budget plan and direction. B) Verification that the budget instructions meet the City Manager's and Committee's needs. C) Guidance on how to make the proposed change to a single budget committee meeting successful. OTHER ALTERNATIVES Budget Committee may choose to change direction on the city's budget plan and request that staff prepare a different budget than currently envisioned. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS DATES OF PREVIOUS CONSIDERATION Budget Committee last met on May 29, 2018 Attachments Budget Process Calendar FY 19-20 FY 2020 Budget Calendar - Updated: 12/5/2018 ACTIVITY Lead START END NOTES Budget system open to department staff FIS 11/21/2018 11/21/2018 Dependent on getting staff info from HR Department/CIP Budgets due to Finance All Departments 01/31/2019 01/31/2019 Changes in the budget system made by FIS staff after this date. Department texts and measures and performance All Departments 02/14/2019 02/14/2019 measures due Proposed Budget Decisions Finalized FIS/CM 03/25/2019 03/25/2019 All policy decisions finalized. Dollar changes may be needed to fulfill policy decisions. Departments/CIP will be contacted as needed. Work on document starts. Proposed Budget Documents to Budget Committee FIS 04/25/2019 04/25/2019 Optional Budget Committee Training FIS/Committee 04/25/2019 04/25/2019 Budget Law,Tigard Funds,Budget Document Orientation Budget committee submit questions/white paper Committee 04/25/2019 05/08/2019 i Line item detail questions and/or potential white paper topic topics to FIN questions submitted for discussion at the budget committee meeting. Budget Committee approves City Budget w/CIP FIS/CM 05/18/2019 05/18/2019 If needed,committee can meet on evening of Thursday May 23rd Council adoption of FY 2020 Budget including CIP FIS 06/11/2019 06/11/2019 If budget approval is after May 18,budget adoption will be on June 25th Page 1 of 1 CITY O F T I G A R D Respect and Care I Do the ARD Right Thing I Get it Done 5 U C7 a H w Wt. - w Preparing for FY 2019-2020 2 � o a - Q Budget Process v, w Budget Committee I December 18, 2018 CITY OF TIGARD Framework Themes Tigard is: Financially Stable Resource Constrained Service Level Challenged c: ITY OF TIGARD Current FY 2018-2019 Budget Approved after defeat of Local Option Levy Implements 1st Year of 2-Year Service Cuts ► Created Service Level Reserve CITY OF TIGNRD Looking Ahead to FY 2019-20 Budget 2"d year of cuts be less due to actions of staff, Budget Committee, and Council Budget pivots to remaining services, CIP, performance audits Work towards a more focused Local Option Levy CITYOF TIGARD Summary of Budget Instructions General Fund services have status quo budgets Each department submits $ 100K General Fund cuts. This will be used to propose needed $400K in cuts to General Fund Services Non-General Fund services are constrained by long-term revenues and can request changes to keep up with community demands. Budget Calendar Propose one Budget Committee Meeting on Saturday May 18 Added time for Budget Committee members to submit questions prior to meeting Second meeting can be held, if needed . CI1Y OF TTG \ RI ) Budget Committee Guidance Endorsement of Tigard 's budget plan and direction Agreement that the budget instructions meet Committee's needs Guidance on how to make a single budget committee meeting successful . AIS-3594 7. Business Meeting Meeting Date: 12/18/2018 Length (in minutes): 30 Minutes Agenda Title: External Financial Audit & CAFR Presentation with Moss Adams Prepared For: Jared Isaksen, Finance and Information Services Submitted By: Liz Lutz, Finance and Information Services Item Type: Update, Discussion, Direct Staff Meeting Type: Council Workshop Mtg. Public Hearing: No Publication Date: Information ISSUE Present to the City Council the Comprehensive Annual Financial Report (CAFR) along with other related communication and results from the external financial audit for the city and the Tigard Town Center Development Agency for the fiscal year ending June 30, 2018. The presentation may include recommendations for opportunities for improvement noted by Moss Adams during the course of the audit. STAFF RECOMMENDATION / ACTION REQUEST No action required. Management, and the external auditors from Moss Adams will present the CAFR and results from the audit to council. KEY FACTS AND INFORMATION SUMMARY Oregon Revised Statues 297.425 requires that every city publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing standards generally accepted by a firm of licensed certified public accountants. Moss Adams, the city's external audit firm, performed an audit of the city's financial operations for fiscal year ending June 30, 2018. They reported their findings to the Audit Committee on December 11, 2018. Their reports are included in the city's Comprehensive Annual Financial Report (CAFR) and the TCDA financial report, which will be finalized and delivered to the Council on December 13, 2018. Moss Adams will provide an overview of audit procedures performed and highlight areas with opportunities for improvement or best practices. Additionally, the city's Comprehensive Annual Financial Report was submitted to the Government Finance Officers' Association for their Excellence in Financial Reporting Certificate program. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments No file(s) attached. SUPPLEMENTAL FOR ►alts r8 PACKET - (DATE OF MEETING) - ;7 - x i + - �. - + - X / + - X / + - X + - X X / + - x / + - X i + - x i 0 MOSSADAMS + - x + - x + - x z + - x x x x + - x x + - x CityTigardof Fiscal Year 2018 Audit Results Council Presentation December 18, 2018 Nature of Services Provided • Independent Auditors' Report on the financial statements of the City of Tigard and for the Town Center Development Agency (a component of the City of Tigard) • Report of Independent Auditors on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 2 • Report of Independent Auditors on Compliance for the Major Federal Program and Report on Internal Control over Compliance as Required by the Uniform Guidance • Report of Independent Auditors' on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Oregon Minimum Audit Standards 0 Audit Opinion/ Reports Government Oregon Financial Auditing Minimum Audit Single Audit ® Statements Standards Standards Report Report Report 3 Unmodified —1 ) findings 3 findings noted No findings g No g (clean) opinion Timeliness of on financial posting budget statement meeting notice 2) over-expenditure in URA fund 3) Fund deficit in URA fund Required Communication Auditor's responsibility under auditing standards Significant accounting policies Management judgments & accounting estimates Audit adjustments — see following slide Management's consultation with other accountants No disagreements with management No difficulties in performing the audit Audit observations and recommendations — No material weaknesses noted — discussed with audit committee Required Audit Communications Audit Adjustments Amount To correct accrued interest for the prior year's accrued $2.3 million interest that was not reversed To correct capital assets for right-of-way assets recorded using the incorrect amount of square- $1 .3 million footage, which was not updated from the prior year Passed Adjustments Amounts To record a loss on refunding — 2011 library refunding $321 ,000 bonds To recognize donations received as revenue $185,000 Findings and Best Practices BEST PRACTICES — Discussed with Audit Committee • Utility billing — Key Recommendations • Review to ensure only approved rates are entered into the system • Work orders — Key recommendations • Review right-of-way worksheet to ensure square-footage amount is accurate and properly supported 6 • Lake Oswego Tigard Water Partnership • Recommend establishing a governing agreement to clearly stipulate ownership of the assets, responsibilities for future maintenance and repair costs, etc. Acknowledgements Thank you Toby LaFrance, Jared Isaksen, Amy Lawson, and their staff for their excellent facilitation of the audit process. The audit progressed on time and in an orderly fashion; all requested schedules and draft financial statements were received on a timely basis. All personnel across all departments were courteous, responsive, and fulfilled all our requests in a timely manner. 'Tone at the Top' and attitude from management was one of helpfulness, candor, and openness in response to audit requests and discussion points. CD 0-A • CD Cin • 4 I I fiN X I + i AIS-3669 8. Business Meeting Meeting Date: 12/18/2018 Length (in minutes): 60 Minutes Agenda Title: Consider a Long-term Water Service Agreement with the City of Durham and the Tigard Water District Prepared For: Marty Wine Submitted By: Carol Krager, Central Services Item Type: Motion Requested Meeting Type: Council Resolution Workshop Mtg. Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Tigard City Council adopt a resolution approving a new intergovernmental agreement with the City of Durham and the Tigard Water District for the longterm provision of water? STAFF RECOMMENDATION / ACTION REQUEST Adopt the resolution approving the new intergovernmental agreement. KEY FACTS AND INFORMATION SUMMARY The cities of Tigard, Durham and the Tigard Water District (TWD) have been parties to an intergovernmental agreement (IGA) related to the provision of water and the disposition of certain water system assets within the Tigard Water Service Area (TWSA) since 1993. That IGA is set to expire on December 31, 2018. The three parties have been negotiating a new IGA for several years and have reached agreement as to new terms and are ready for the respective governing bodies to execute the new IGA. Provisions of New IGA The 1993 IGA contains many provisions that caused disagreement among the parties as to how they should be interpreted. For instance, Tigard staff believes the language of the existing IGA does not impart ownership of system assets outside of the TWSA to the other parties. An example of such system assets is Tigard's share of the Lake Oswego Tigard Water Partnership project assets. The other parties disagree and believe that any system assets constructed since 1993, whether inside the TWSA or out, should be partially owned by them. Because the language of the existing IGA is ambiguous, the parties have reached a settlement where the new agreement will not convey ownership of system assets outside the TWSA to the other parties. However, the proposed agreement does state that as long as the other parties remain a part of the TWSA until the year 2045, Tigard would be obligated to pay that party a certain amount in recognition of their commitment if they were to later decide to withdraw. Other provisions of the proposed new agreement include: •Forming an advisory board to the Tigard City Council, named the Water Advisory Board. •Providing a rebate to the City of Durham and the TWD in the amount of 5% of gross water sales within their respective boundaries. OTHER ALTERNATIVES The council could choose to not adopt the resolution approving a new agreement. The existing agreement will expire on December 31, 2018. Should that occur, Tigard will continue to serve water to the City of Durham and the TWD. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS N/A DATES OF PREVIOUS CONSIDERATION This is the first time the council will consider this new intergovernmental agreement. Fiscal Impact Cost: 240,000 Budgeted (yes or no): Yes Where Budgeted (department/program):Water Fund Additional Fiscal Notes: Once the proposed intergovernmental agreement is executed, Durham and TWD would receive an annual rebate of 5% of gross water sales within their respective boundaries, which is an increase over their current 1°/0 rebate. For Durham, their rebate would go from roughly $20,000 to $100,000 per year. For TWD, their rebate would go from approximately $40,000 to $200,000 per year. Attachments TWD Durham IGA Resolution Exhibit A-IGA CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- A RESOLUTION APPROVING THE TIGARD WA[ER SERVICE AREA AGREEMENT AMONG THE CITY OF TIGARD, CITY OF DURHAM, AND TIGARD WATER DISTRICT FOR DET.IVERY OF WA 1'ER SERVICE WHEREAS, the cities of Tigard, King City and Durham withdrew territory and water system facilities from the original Tigard Water District ("TWD") boundaries effective July 1, 1993;and WHEREAS,with the assets and infrastructure obtained by its withdrawal from TWD,Tigard created a city water division. Durham,King City and TWD executed separate agreements with Tigard dated December 23, 1993 (the "1993 IGAs") whereby each of them delegated authority to Tigard to operate, maintain, repair, replace,construct and reconstruct the water system facilities as part of an integrated water supply system over the Tigard Water Service Area ("TWSA"),which comprised the area of the original District;and WHEREAS,the 1993 IGAs expire on December 31,2018 and the parties agree that it is in their best interest to replace those agreements. Tigard has a previous agreement with the City of King City dated December 9,2014 that will remain in place;and WHEREAS,the 1993 IGAs contained ambiguous language regarding the parties'interest in system assets outside the TWSA constructed or acquired after 1993,which includes the Lake Oswego-Tigard Water Partnership;and WHEREAS,it is in all parties'best interests to amicably resolve the ambiguities of the 1993 IGAs'treatment of system assets outside the TWSA,as that boundary existed on December 23, 1993;and WHEREAS,in recognition of the partnership between Tigard and Durham/TWD,and as inducement to clarify that Durham and TWD have no ownership interest in the Lake Oswego-Tigard Water Partnership, or other system assets yet to be built outside the TWSA,as that boundary existed on December 23, 1993,Tigard finds the proposed agreement is in the best interest of the public. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The Tigard City Council approves the Tigard Water Service Area Agreement Among the City of Tigard, City of Durham, and Tigard Water District for Delivery of Water Service, in substantially the form attached as Exhibit A. SECTION 2: This resolution is effective immediately upon passage. SECTION 3: The Agreement is effective and contingent upon ratification of both parties. RESOLUTION NO. 18- Page 1 PASSED: This day of 2018. Mayor-City of Tigard ATTEST: City Recorder-City of Tigard RESOLUTION NO. 18- Page 2 SUPPLEMENTAL PACKET FOR /4/ 9 11161 (DATE OF MEETING) TIGARD WATER SERVICE AREA AGREEMENT AMONG THE CITY OF TIGARD, CITY OF DURHAM AND TIGARD WATER DISTRICT FOR DELIVERY OF WATER SERVICE This Tigard Water Service Area Agreement ("Agreement") is made and entered into pursuant to Oregon Revised Statutes 190.010,by and among the City of Tigard, an Oregon municipal corporation("Tigard"), the City of Durham, an Oregon municipal corporation("Durham"), and the Tigard Water District, a domestic water supply district organized under ORS Chapter 264 ("TWD"). Tigard,Durham and TWD are jointly referred to herein as "the Parties." RECITALS: The cities of Tigard, King City and Durham(collectively the "Cities")withdrew territory and water system facilities from the original Tigard Water District boundaries effective July 1, 1993. Pursuant to ORS 222.540, TWD turned over to the Cities its water mains, service installations, structures, facilities, improvements and other property in the area withdrawn from TWD as it existed on June 30, 1993 ("original District")that were not necessary for the operation of the remainder of the water supply system of TWD. The area withdrawn by Tigard was a major portion of the original District boundaries. Because of this, Tigard was entitled to a major portion of TWD's infrastructure pursuant to ORS 222.540 while King City and Durham were entitled to smaller portions. Pursuant to ORS 222.550, should TWD dissolve,Tigard will obtain all of the TWD's remaining assets that have not been distributed under ORS 222.540. With the assets and infrastructure obtained by its withdrawal from TWD, Tigard created a city water division within its Public Works Department. Durham, King City and TWD executed separate agreements with Tigard dated December 23, 1993 (the"1993 IGAs")whereby each of them delegated authority to Tigard to operate,maintain,repair,replace, construct and reconstruct the water system facilities as part of an integrated water supply system over the Tigard Water Service Area("TWSA"), which comprised the area of the original District. All parties to the separate 1993 IGAs committed to cooperate with Tigard and each other in capital improvement planning and long-term water supply decisions so that Tigard could provide current and future water system users within the TWSA with high-quality water at a reasonable price. The 1993 IGAs provided that Tigard will set rates and charges and receive revenue from water system users in Tigard, King City, Durham, and TWD for the entire TWSA, and with that revenue Tigard will provide the funds to pay for providing water service, The 1993 IGAs expire on December 31,2018, and the Parties agree that it is in their best interest to enter into this Agreement to supersede and replace the respective agreements. Tigard has a previous agreement with the City of King City dated December 9, 2014 that will remain in place. 1 NOW,THEREFORE,the premises being in general as stated in the foregoing recitals, it is agreed by and between the Parties hereto as follows: 1. Definitions "Master Declaration"means the Tigard Master Water System Revenue Bond Declaration dated May 1, 2012, as it has been and may be amended in accordance with its terms. "Remaining Party(ies)" means a Party who continues its interest in this Agreement following notice of withdrawal by another party. "Tigard Water Fund"means the enterprise fund(s)maintained by Tigard for water system purposes. "Tigard Water Service Area"means that area comprising the boundaries of Tigard, Durham and the Tigard Water District, as they existed on December 23, 1993. "Withdrawing Party"means a Party hereto who provides notice of intent to withdraw from membership in this Agreement. 2. Mission Statement Tigard is the authorized water supplier within the TWSA and is recognized by the Division of Drinking Water, Oregon Health Authority, and by the Washington County Public Health Division as a municipal water supplier. As such, Tigard has sole authority to carry out the functions of a water supplier and responsibility to meet regulatory and other requirements mandated by federal and state law and to meet the technical, managerial and financial responsibilities to all customers within the TWSA regardless of the jurisdictional boundaries of the Parties. The Parties commit to working together as good stewards of a fully integrated water supply system so that all current and future water system users in the TWSA receive a high-quality, economical water supply. The Parties further commit to working together and with other agencies and jurisdictions in a cooperative effort to plan for the future long-term water supply needs of the TWSA. 3. Effective Date and Term This Agreement will be in full force and effect commencing at 12:01 AM on January 1, 2019 and shall continue indefinitely, unless earlier terminated by one or more of the Parties according to the terms of this Agreement. Tigard recognizes that by this Agreement, it is assuming the responsibility to provide water to the customers of Durham and TWD for the duration of this Agreement unless Durham or TWD obtains a reasonable alternative domestic water supply and the Agreement is terminated. If Durham or TWD terminates this Agreement but does not have a separate water source,then the Parties agree to negotiate in good faith a wholesale water supply contract as provided in Section 11.6. Upon the effective date of this Agreement,the 1993 IGAs for Durham and TWD will terminate and be of no further effect. 2 4. Water Service Area Advisory Board 4.1. The Tigard City Council will establish the Water Advisory Board ("WAB"). The WAB may adopt bylaws that must be approved by the Tigard City Council. The WAB will consist of five members. Members of the Board will be designated by the respective governing bodies for approval by the Tigard City Council: Tigard- One Member Durham - One Member TWD - One Member At Large—Two Members. One member who resides within the TWSA but outside Tigard and one member who resides within Tigard. At-large members will be nominated by the WAB with final decision and appointment by the Tigard City Council. The at-large members shall represent the interests of the general TWSA public. 4.2. Water Advisory Board Terms of Appointment Upon appointment as provided in Section 4.1, WAB members shall serve an initial term from the date of appointment to December 31, 2021. Members serve at the pleasure of the appointing body. The at large members serve at the pleasure of the Tigard City Council. Thereafter, WAB members shall be appointed in December of the expiring term year for the following four-year term. Each term will begin on January 1 and end on December 31 four years hence. Each WAB Board member shall serve until a successor has been appointed. Members may be re-appointed to succeeding terms without limit. Vacancies may be filled in the same manner as a regular appointment. 4.3. Eligibility Each WAB member shall be an elected official serving on the appointing governing body, except for the at-large members who must meet the requirements in paragraph 4.1. Each governing body may appoint an alternate to attend meetings in the place of a regularly appointed WAB member. The alternate shall be appointed in the same manner and must meet the same qualifications as the regularly appointed WAB member. 4.4. WAB Support Tigard will appoint city officials as staff to the WAB to assist the Board in its duties. Tigard will provide adequate facilities and equipment for all WAB meetings. 3 4.5. Meetings, Quorum and Voting A quorum of the WAB is three (3) members. All meetings will be conducted in accordance with the Oregon Public Meetings Law. All actions require at least three (3) affirmative votes. Generally,meetings of the WAB will be held at least bimonthly,but may occur less frequently as provided in the bylaws. If a meeting is held less than bimonthly, in lieu of a meeting Tigard shall provide an electronic status report to each Party that includes,but is not limited to,the information set forth in Section 6.4.3. A special meeting or emergency meeting may be called as provided in the bylaws by the Chair or any two Members. 4.6. Duties The WAB will be an advisory board and may make recommendations to the Tigard City Council on significant water service issues including,but not limited to: 4.6.1. water system rate methodology and structure to be charged to TWSA users; 4.6.2. system development charges and methodology to comply with state law and to provide that development growth within the existing TWSA and future areas added to the TWSA pay an equitable share; 4.6.3. proposed Capital Improvement Plans, Master Plans, Water Management and Conservation Plans, Curtailment Plans, Emergency Plans and amendments thereto; 4.6.4 recommendations to the Budget Committee and Council on budget requests or amendments to the existing budget for water system operation and maintenance or CIP; 4.6.5 policies,rules and regulations regarding the water system or TWSA users which may be adopted by the Tigard City Council; 4.6.6 proposed issuance of borrowings secured by water system revenues; 4.6.7 proposed sale of water to areas outside the TWSA; 4.6.8 other water related issues assigned by the Tigard City Council or as suggested by the WAB 5. Ownership of Assets The Parties agree to the following ownership provisions: 5.1. "System Assets": Assets within the TWSA necessary for the operation of the water supply system throughout the TWSA,more specifically defined as follows: transmission mains with diameters 12 inches and over that are necessary for the 4 transmission of water throughout the system; computerized control systems ("SCADA"); reservoirs; wells; pump stations and real property upon which reservoirs and pump stations are sited. The real property descriptions are set forth on Exhibit A and incorporated herein by reference. Real property does not include any area within highways, roads and streets. The Parties agree that System Assets within the TWSA are, and shall be,jointly but proportionately owned by the Parties as provided in Section 11.2 so long as this Agreement is in place. The Parties further agree that if System Assets are sold, the proceeds shall be placed in Tigard's Water Fund and dedicated for use in the TWSA water system. 5.2. "Distribution Assets": Water mains with diameters less than 12 inches and service installations. Distribution Assets are considered the property of the jurisdiction in which the asset is located. 5,3. "System Assets Outside the TWSA": Assets or shares of assets that have been or will be acquired or constructed outside of the TWSA boundaries on behalf of the water supply system. The Parties agree that any System Asset Outside the TWSA shall be solely owned by Tigard as the record title holder and Tigard shall exercise and be responsible for all rights, duties and obligations as required by any agreement entered into by Tigard for those assets. The System Assets Outside the TWSA shall be held in trust and used for the benefit of the TWSA parties and their customers. Tigard shall provide water subject to the terms of this Agreement. TWD and Durham have the right to specifically enforce this Agreement or obtain other remedies to compel Tigard to deliver water to their respective customers from these System Assets Outside the TWSA. If System Assets Outside the TWSA are sold or transferred or otherwise disposed of, then any proceeds received shall be placed in Tigard's Water Fund and dedicated for use in the TWSA water system. 5.4. All System Assets and Distribution Assets within the TWSA shall be pledged by Durham and TWD to Tigard to be managed and utilized by Tigard in order to provide water services to all current and future water system users in the TWSA. 5.5. Tigard has sold two series of Water Revenue Bonds in the aggregate initial principal amount of$128,530,000 with a maturity date of August 1, 2045 for the LOT Water Project which is a System Asset Outside the TWSA. Tigard has made various covenants related to those borrowings and the revenues from all users of the TWSA are pledged to the bondholders for repayment. Neither Durham nor TWD may terminate and withdraw from this Agreement prior to August 2, 2045 to ensure payment of this borrowing and compliance with the covenants related to these borrowings. 5.6. Upon notice of withdrawal and termination of this Agreement, the interest in System Assets held by Durham or TWD will be sold to and purchased by Tigard according to Section 11, subject to provisions for indebtedness incurred against those assets in Section 7. Distribution Assets will remain the property of the Withdrawing Party in which the distribution asset is located and Tigard will have 5 no further obligation to operate,maintain,repair or replace them, unless Tigard otherwise agrees. 6. Asset Usage/Water Rates/Revenues 6.1. Tigard's Utilization of All Assets The Parties agree that all System Assets, Distribution Assets and System Assets Outside the TWSA will be utilized by Tigard to provide water services to current and future users in Durham and TWD. Durham's and TWD's ownership interest in the Distribution Assets will remain though the assets are being utilized by Tigard, unless and until transferred to Tigard by agreement or operation of law. 6.1.1. Tigard agrees that it will maintain, preserve and keep the assets in good repair and working order. Tigard may appropriate from the Water Fund all moneys necessary to meet all obligations of this Agreement. 6.1.2. Tigard shall keep the assets free of all levies, liens and encumbrances except those created by this Agreement or consented to by the governing body of Durham and TWD in writing. The Parties contemplate that the assets will be used for a governmental or proprietary purpose by Tigard and, therefore, that the assets will be exempt from all property taxes. Nevertheless, if the use, possession or acquisition of the assets are determined to be subject to taxation, Tigard shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the assets. Tigard shall pay all gas, water, electricity,heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the assets from the Water Fund. Where there is shared use of the assets, these costs will be shared in an equitable manner. 6.1.3. Tigard shall maintain (i) casualty insurance on System Assets within the TWSA, (ii) liability insurance that protects Durham and TWD, including their officers and employees, from liability arising from Tigard's acts or omissions in the operation of the water supply system, and (iii) worker's compensation insurance as a complying employer covering all Tigard employees working on, in, near or about the assets as required under the laws of the State of Oregon. Such coverages will be in the same amounts and coverages as typically obtained by Tigard. Tigard will furnish to Durham and TWD certificates evidencing such coverage within 30 days of request for same. All such insurance will be with insurers that are authorized to issue such insurance in the State of Oregon, name Durham and TWD as additional insureds, and contain a provision to the effect that such insurance shall not be canceled or modified materially and adversely to the interest of Durham and TWD without first giving written notice thereof to Durham and TWD at least thirty(30) days in advance of such cancellation or modification. Tigard may meet any of these requirements 6 through a self-insurance program. Such insurance requirements may be waived in writing by the respective governing bodies of Durham and TWD. System Assets Outside the TWSA will have insurance coverages as provided according to the applicable agreement that governs the ownership, operation,maintenance, repair and replacement of the asset. 6.1.4. The fees,rates and charges charged by Tigard for providing water services to current and future water system users in Durham and TWD shall be the same as those charged within Tigard. 6.1.5. Notwithstanding the foregoing, Tigard may impose different fees,rates and charges for providing water service to areas of the TWSA within Durham or TWD based on Cost of Service Principles when the reasonable estimated cost of providing such service is greater due to special circumstances, including but not limited to additional cost to pump water to serve users in a particular area. Any differential fees, rates and charges imposed for providing water service will be limited to the actual additional costs and be reviewed by the WAB, which will forward a recommendation to Tigard based upon its review. The Tigard City Council will consider the WAB's recommendation prior to taking action. When differing fees, rates and charges are imposed, they will be consistently applied in both Tigard and the remainder of the TWSA where the criteria for imposition are applicable. 6.1.6. At the request of Durham and TWD, Tigard may include additional Durham or TWD charges for their residents only, which will be shown on the bill as a separate Durham or TWD charge. 6.2. Moneys/Revenues/Master Declaration 6.2.1. Moneys and revenues for operation,maintenance and repair shall be held by Tigard in the appropriate Tigard Water Fund. All funds in the Tigard Water Fund will be used solely for water system purposes. 6.2.2. Moneys and revenue for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. 6.2.3. Tigard shall develop a methodology for system development charges ("SDCs") for the entire TWSA and collect the SDCs pursuant to Tigard Municipal Code Chapter 3.24. 6.2.4. Tigard has outstanding borrowings under a Master Water System Revenue Bond Declaration dated May 1, 2012 as it has been and may be amended pursuant to its terms (the "Master Declaration"). The Master Declaration governs Tigard's use of water system revenues. Consequently, all provisions in this Agreement describing the use of water revenues or the Water Fund are subject to the limits and flow of funds in the Master Declaration. If there are any conflicts between this Agreement and the 7 Master Declaration, the provisions of the Master Declaration shall control. If necessary, this Agreement will be revised to be consistent with the Master Declaration. 6.2.5. Tigard agrees to make payments due from it under this Agreement solely from Net Revenues as defined in the Master Declaration and not from other sources. Tigard's obligation to make payments under this Agreement (a) is not secured by a lien on Net Revenues and (b) is subject to Section 4.1 of the Master Declaration which requires Tigard to use water system revenues to make certain other payments, for example debt service on outstanding bonds before paying other expenses. 6.3. Capital Improvements 6.3.1. Tigard shall develop and implement capital projects in accordance with a long-range Capital Improvement Program supported by sound engineering analysis. The projects will be developed and implemented to achieve the best interests of water customers within the TWSA, irrespective of city boundaries. 6.3.2. The WAB will review and provide a recommendation on the Capital Improvement Program to the Tigard City Council, who will consider the WAB recommendations prior to approval of the Capital Improvement Program. 6.3.3. The Capital Improvement Program will establish the location of a capital improvement and designate the type of asset, as defined in Section 5, for which the capital improvement qualifies. 6.3.4. Capital improvements made subsequent to entering into this Agreement will be addressed as follows: (1) those that are determined to be Distribution Assets will become the property of the jurisdiction in which the improvement is located; and (2) for those that are determined to be System Assets, the Parties each have a proportionate ownership, as provided in Section 5.1. System Assets Outside the TWSA will be solely owned by Tigard 6.3.5. Tigard may enter into long-term water supply contracts in accord with the best interests of water users within the TWSA, irrespective of city boundaries. Long-term water supply contracts must be submitted to the WAB for its review and comment prior to approval by the Tigard City Council. 6.4. Accounting 6.4.1. Tigard will use generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures made for the water system. 8 6.4.2. At least annually and within 30 days of receipt of a written request from a member of the WAB, Tigard shall provide a written report to the WAB detailing at least the following: 6.4.3.1 The current balance in the Water Fund(s) and the change in the balance from the prior report. 6.4.3.2 The income from the Water Fund(s) for the reporting period,by type of revenue collected within each jurisdiction. 6.4.3.3 Expenditures from the Water Fund(s) for the reporting period and the description of the expenditure. 7. Indebtedness 7.1. Upon termination and withdrawal by TWD or Durham after August 2, 2045, the Withdrawing Party shall pay in full the proportionate share of outstanding borrowings incurred for System Assets and Distribution Assets except as provided in Section 11. Payment shall be made on the withdrawal date unless otherwise agreed. Any amount the Withdrawing Party owes shall be first offset from the amount the Withdrawing Party is otherwise eligible to receive pursuant to Section 11.4. 7.2. Tigard is authorized by statute to borrow money for the water system. Durham and TWD shall cooperate and take action as reasonably required by Tigard to enable Tigard to sell these borrowings on favorable terms. 8. Services Provided By Tigard 8.1. Tigard will provide water, from such sources or combination of sources determined by Tigard, to current and future water system users in all TWSA jurisdictions on the same terms and conditions Tigard provides water to its water system users. If circumstances require water curtailment or other water use restrictions, emergency or otherwise, each jurisdiction shall be subject to the same policies and procedures so that curtailment is applied uniformly within the TWSA. Durham or TWD may not sell water provided through this Agreement to a third party without the prior written consent of Tigard. Proposed sale of surplus water by Tigard to a non-party for other than short-term emergency purposes will be reviewed and commented on by the WAB prior to approval by the Tigard City Council. Any revenues generated by such a sale of surplus water will be deposited into Tigard's Water Fund. 8.2. Certainty of water supply is of paramount interest. Tigard will provide equally, and in a manner consistent with the terms of this Agreement, all services, equipment and personnel required for delivery of potable domestic water to water system users within Durham and TWD. This includes,but is not limited to, system repair and maintenance, water distribution,new installations, system upgrades, and billing functions. 9 8.3. Tigard will make the same public meeting spaces that are used for WAB meetings available to any Party on request free of charge with reasonable advance notice for that Party's use for regular or special meetings for water related matters. 8.4, Each Party shall respond in the normal course of business to all requests for public records in its possession by persons who are not Parties and shall defend the other Parties and hold them harmless from any and all claims or legal actions made or filed by the person making the records request for records in its possession. 8.5. Tigard shall provide all readily available financial records relating to the water supply system to any Party for inspection and copying on reasonable advance notice and during Tigard's normal business hours. Readily available records are those financial records regularly kept in the ordinary course of business that can be produced without search time and for which requests are of a reasonable or limited volume. Such records shall be produced at no charge. Except for the report required by paragraph 6.4.2, financial information that can only be obtained by a custom report that does not exist in the financial management system or records not meeting this "readily available"definition may be requested in accordance with State Public Records Law and Tigard's Public Records Law Policy. 8.6. Tigard will publish the proposed budget in accordance with Oregon Budget Law. The WAB may request a presentation of the proposed budget for consideration and recommendation prior to Tigard's adoption of the budget. It will be incumbent upon the WAB to schedule the meeting to accommodate the timing of Tigard's budget hearings. Tigard will post a copy of each year-end financial audit ("CAFR"), with includes Water Fund accounts, on the city website. Hard copies are available upon request,based upon availability and price as set forth in the city's Master Fees and Charges. 9. Rules and Regulations 9.1. The Ordinances, Resolutions, Rules, Rates and Regulations for Water Service ("Water Service Rules") adopted by the Tigard City Council govern water service to Durham and TWD. 9.2. The Tigard City Council may modify, alter or repeal the Water Service Rules, rates and at any time according to its processes only after the WAB has had the opportunity to study and comment upon the proposed Water Service Rules. The WAB is empowered to make a continuing review of any Water Service Rules regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments. 10. Extension of Service 10.1. Extension or modification of Durham's or TWD's water distribution system by private parties may be done only with prior written approval of Durham or TWD. 10 Tigard will act as the managing agency to ensure that design and construction meets all relevant Tigard public works improvement standards and American Water Works Association ("AWWA") design standards prior to acceptance. 10.2. No existing or future development in an unincorporated area of the TWSA will be required to annex to a city as a consequence of this Agreement. 10.3. Any annexation shall be in accordance with the applicable statutes, charters and ordinances of the affected entities. 10.4. Residents of Durham or TWD will be responsible for any expenses associated with efforts of the City of Tigard to withdraw from the Tualatin Valley Water District to reach the goal of having a single water provider in Tigard so long as Tigard provides notice of intent to withdraw and confers with the governing body of each party prior to initiating the withdrawal process. 10.5. No part of this Agreement may be interpreted as a waiver of any Party's statutory rights upon annexation of territory. Annexation of new territory to any Party's jurisdictional boundary and annexation related changes to a boundary between any of the Parties will be subject to the process for boundary changes set out in the Metro Code and the Oregon Revised Statutes. The determination of what Party or other entity will be the water supply provider for the area to be annexed will be decided by that process. Each Party to this Agreement reserves all rights to appear and be heard in those proceedings. Each Party agrees in good faith to execute any and all documents as is reasonable and necessary to effectuate a final decision on any boundary change as between any two or more Parties. Any of the Parties may enter an urban services agreement with Tigard to be the water supply provider within all or a portion of that served Party's jurisdictional boundary by the process set out in state law for such agreements. 11. Termination,Withdrawal and Sale of Interest 11.1. Notice On or after August 2, 2045,Durham or TWD may provide written notice ("Notice")to Tigard and the other Party of its desire to terminate and withdraw from this Agreement. The Notice shall set a withdrawal date not less than five years from the date of the Notice and not earlier than August 2, 2045 unless the parties agree otherwise. The Withdrawing Party will sell all of its ownership interest in the System Assets to Tigard effective on the withdrawal date. Tigard will be obligated to purchase all of the Withdrawing Party's interest in the System Assets. The parties may mutually agree on a withdrawal date different from that provided in the Notice. 11.2. Calculation of Ownership Interest of System Assets Should Durham or TWD wish to terminate its interest in this Agreement with Tigard and withdraw, then the Withdrawing Party's proportionate interest in a 11 System Asset will be determined based upon Meter Equivalency. "Meter Equivalency" is calculated based on actual sizes and numbers of meters tracked to each Party's jurisdiction. The following table will be used to determine meter equivalency: Size 5/8-inch 3/4-inch 1-inch 1-1/2-inch 2-inch 3-inch 4-inch 6-inch 8-inch 10-inch 12-inch Equivalent 1.000 1.440 2.667 7.998 12.987 A 22.901 46.968 49.997 79.995 156.291 225.059 Tigard will provide a report of Party's respective meter equivalency upon request by the WAB. 11.3. Valuation Unless the Parties agree otherwise, the value of the Withdrawing Party's proportionate interest in a System Asset will be determined as of the withdrawal date by a mutually agreed utility valuation professional familiar with utility system valuations. The value will be based upon the remaining useful life of the System Assets. Real Property containing System Assets will be valued by a mutually agreed certified appraiser who is a member of the Appraisal Institute applying United States Property Appraisal Practices ("USPAP") (collectively the "Valuation Experts"). If the Parties cannot agree on a single utility Valuation Expert or a single real estate Valuation Expert, then each Party will pick one and the two Valuation Experts selected will choose a third. The decision of the Valuation Experts must be rendered within 180 days of his/her/their retention by the Parties and the decision will be final and binding. The Parties will equally share all costs of the Valuation Expert(s). 11,4. Purchase Terms Following Notice, Tigard and the Withdrawing Party(ies) will have 180 days to determine the value of System Assets and Real Property to be purchased and negotiate a fair and equitable transaction. If they cannot agree, they will employ valuation experts as described in Section 11.3. The established value of the assets to be purchased will be the purchase price included in the terms of purchase and sale. The Remaining Party(TWD or Durham) will be informed of all discussions or decisions of price and terms. Tigard may elect to pay cash at closing or to make installment payments over a term not to exceed five(5) years from the withdrawal date set forth in the Notice with interest on the unpaid principal at the Local Government Investment Pool Rate of Interest. Tigard may also elect to assume the Withdrawing Party's proportionate share of debt from System Assets or Distribution Assets and apply the amount of debt so assumed as a credit against the purchase price. If Tigard does not agree to assume the Withdrawing Party's proportionate share of debt,then the purchase and sale terms must provide for payment to Tigard as provided in Section 7.1. The final terms of purchase and sale will be reduced to a term sheet for tentative approval by the designated representatives of Tigard and Withdrawing Party. 12 In recognition of the Withdrawing Party's partnership and contribution by rate payers to system assets outside of the TWSA, for System Assets Outside the TWSA, the term sheet shall also provide for payment by Tigard of an amount equal to the reimbursement component of Tigard's Water System Development Charge as of the time of withdrawal (SDC-r) (excluding the amount attributed to System Assets and Distribution Assets)multiplied by the meter equivalency of the Withdrawing Party. The SDC-r on January 1, 2019 is $3,898 per EDU (5/8- inch meter). Notwithstanding any future changes to state SDC statutes, total payment per EDU of the withdrawing party will not be less than the value of half ($1,949/EDU) or more than twice ($7,796/EDU)the total value of SDC-r on January 1, 2019. Payment will be made on the same terms and conditions as payment for System Assets. 11.5. Purchase and Sale Agreement Within 60 days after the terms of purchase and sale are determined, Tigard and the Withdrawing Party will prepare the necessary documents for final approval by their respective governing bodies. Transfer of title and termination of the Withdrawing Party's interest in this Agreement will occur on the withdrawal date. 11.6. Water Supply Contract If TWD or Durham elects to terminate and withdraw, it may request a water supply contract from Tigard and the Remaining Party. If requested, the Withdrawing Party and Tigard/Remaining Party will negotiate in good faith a wholesale water supply contract using cost of service water industry standards based on the most recent American Water Works Association Ml, Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices using the principles of the "Utility Approach"to determine revenue requirements and capital-related costs including depreciation expense and return-on-rate base. The length and other terms of any water supply contract will be negotiated at the time. 11.7. System Separation The Withdrawing Party will be responsible for all costs for improvements or system modifications necessary to separate the Distribution Assets from the TWSA System Assets, installation of master meters, notices to customers, costs of account transfer incurred by Tigard and the like. If the Withdrawing Party obtains water supply from a non-TWSA source,the Withdrawing Party will also install cross connection control devices of a type and at locations approved by Tigard. The terms of the purchase and sale agreement will also include a plan and schedule for system separation. 13 12. Rebate The Parties agree that the ability of Tigard to operate,maintain, construct,repair and replace an integrated water system within the TWSA provides opportunities to achieve economies of scale. As an incentive for Durham and TWD to delegate authority to Tigard and remain a Party to this agreement, Tigard agrees to rebate to Durham and TWD an amount equal to five percent (5%) of gross water sales attributed to water system users located within their respective boundaries. The 5%will be paid on system revenues received on an annual basis,unless the Parties agree otherwise. If Durham enacts a right- of-way usage fee applicable to the water system located within its boundaries, Durham may charge that fee to Tigard, in lieu of payment under this section,provided the fee does not exceed 5%of the value of gross water sales attributed to water system users located within Durham's jurisdictional boundaries and no further payment will be made to Durham under this Agreement. At all times, the rebate amount shall be indexed to and tied with the right of way license fee enacted and charged by Tigard within its boundaries. Any challenge or other proceeding initiated by a non-party to test the validity of this rebate will be defended by Tigard and the costs of defense will be paid from the Water Fund. 13. Eminent Domain Durham and TWD agree that Tigard is empowered to use any right of condemnation possessed by Durham or TWD and act in the name of Durham or TWD as necessary to provide water services consistent with the terms of this Agreement, and Durham and TWD agree to take any action necessary for Tigard to exercise that right on the request of Tigard. If Tigard seeks to exercise its own condemnation authority within Durham or TWD, it will inform the affected party and proceed in its own name and authority. TWD or Durham will consider any request by Tigard for Tigard to exercise powers of eminent domain if needed to acquire property within that Party's jurisdictional boundary for use for the water supply system. TWD or Durham may not unreasonably withhold its consent to such a request. TWD or Durham may condition its exercise of such authority for a project that benefits only Tigard on Tigard's agreement to pay all attorney fees and costs incurred in any such proceedings. For projects that relate to the TWSA system, costs of condemnation will be paid from the Water Fund(s). 14. Annual Meeting The governing bodies of the Parties to this Agreement will meet annually to discuss and consider issues related to this Agreement. The annual meeting will include a summary of key activities and any specific suggestions or recommendations which WAB members believe would benefit the water system for consideration by the Tigard City Council. The Tigard City Council will consider such recommendations. 15. Applicable Law,Jurisdiction and Venue This Agreement will be governed by and construed in accordance with the laws of the State of Oregon. If litigation is commenced. the Parties agree that jurisdiction and venue 14 lie in the Circuit Court of the State of Oregon for Washington County. 16. Indemnity To the extent permitted by law, each Party shall defend and indemnify the other Parties, their members, officers, governing bodies, employees or agents who was or is a party, or is threatened to be a party, to any suit or proceeding, from and against all liability, claims, damages or losses, including attorney fees, arising out of acts or omissions arising from the performance of this Agreement. No party shall be indemnified for its own acts or omissions. This indemnity shall remain in full force and effect notwithstanding termination of this Agreement. 17. Default 17.1. Generally A Party is deemed in Default of this Agreement if the Party violates any provision of this Agreement or fails to perform an obligation required to be performed or otherwise breaches this Agreement. An Event of Default is deemed to have occurred if the Defaulting Party fails to cure the Default within the cure period designated in this Section. 17.2. Notice of Default and Cure A written notice of Default("Notice of Default") shall be delivered to the Party in Default("Defaulting Party") by one or both of the other Parties. The Notice of Default must specify the nature of the Default and provide a specified period to cure the Default or otherwise reasonably commence to cure the Default in a diligent manner. A reasonable cure period("Cure Period") will be 90 days unless another time for cure is contained in the Notice of Default. The Notice of Default may also include a requirement to engage in the Dispute Resolution process. A copy of the Notice of Default shall be delivered to all other Parties. 17.3. Response by Defaulting Party 17.3.1. Nonpayment Default The alleged Defaulting Party shall either: (1) make payment in full by the date set in the Default notice; (2) submit a plan for repayment that the Board must approve; or(3) request Dispute Resolution. The Cure Period for non-payment is a 90 day period,but the Board may, in its sole discretion, approve a payment plan in extraordinary circumstances 17.3.2. Other Defaults The Defaulting Party must: (1) cure the Default by the Cure Period set forth in the Notice of Default; (2) state why the Default cannot be cured within the Cure Period, what efforts the Defaulting Party has made to cure the 15 Default and provide a reasonable plan to cure the Default; or(3) request Dispute Resolution. The other Parties must approve the plan for cure and if not approved, an Event of Default will be declared. If Dispute Resolution is requested by the Defaulting Party, then that process will be followed. 17.3.3. Failure to Cure Failure to cure the Default within the allowed Cure Period will result in the Declaration of an Event of Default, and the Parties shall proceed to Dispute Resolution. 18. Dispute Resolution Process This Agreement obligates the Parties to cooperate in the ownership and operation of the System Assets and Distribution Assets for the mutual benefit of all Parties to consistently deliver water to the TWSA. The Parties agree that each Party should bring forward issues regarding past performance or anticipated performance of obligations and duties at the earliest reasonable opportunity so that all Parties can proactively work toward solutions in an attempt to avoid a formal declaration of default. This Dispute Resolution process is provided to encourage informal resolution through negotiation among the Parties' staff, executives or elected officials before resorting to a formal process using mediation, arbitration, or litigation. 18.1. Notice of Dispute Any dispute or Notice of Default will be submitted in writing to the Tigard City Manager or to the TWD Board Chair. If the dispute is not resolved within the 30- day period following receipt of notice, it will be referred to mediation. In the case of a Notice of Default, either the Defaulting Party or the other Party may demand Dispute Resolution at any time during the Default process as set forth above. 18.2. Mediation A Party desiring mediation must provide the other Party with a written notice ("Request to Mediate"), which will set forth the nature of the dispute or Default. The Parties will thereafter cooperate in good faith to select the mediator with Arbitration Service of Portland Oregon or other mutually agreed mediation service within 14 days of a Request to Mediate and may adopt any procedural format that seems appropriate for the particular dispute. Mediation should be scheduled within 14 days of selection of the mediator, or as soon as possible, based on availability. The mediator will then set the rules for conduct of the mediation. The Parties will share the mediation costs as agreed upon with the mediator. If a written settlement agreement is not reached by the Parties within 60 days from the date of the Request to Mediate, or such longer time frame as may be agreed upon, in writing,by the Parties, then the Parties may commence litigation. If mediation fails to resolve the matter, the Parties may mutually agree to binding arbitration in lieu of litigation. 16 18.3. Arbitration If the Parties agree to enter into binding arbitration, selection of the arbitrator, time frame for arbitration, and procedural rules for arbitration will be agreed upon at that time. The Oregon Rules of Civil Procedure and Oregon Evidence Code will apply unless specifically modified by the arbitration agreement. Any arbitrator or arbitrators selected must have significant municipal law experience, unless the Parties mutually agree otherwise, in writing. 18.4. Litigation If all Parties do not agree to arbitrate,then any Party may seek legal relief through the Circuit Court of Washington County. 18.5. Remedies,Injunction Relief and Specific Performance After exhaustion of Dispute Resolution Procedures through the mediation step, a Party may seek all remedies available at law, or in equity, for breach of this Agreement. The purpose of the remedy is to make all non-Defaulting Party whole and to bring the Defaulting Party into compliance, if possible. The remedies may include,but not limited to money damages for additional costs of service, costs of capital and other actual costs incurred by the other Parties resulting from the Default,plus interest at the statutory judgment rate of interest from the date of Default. A Party may seek and obtain immediate equitable relief to prevent irreparable harm before or during the Dispute Resolution process. 19. Dissolution On or after August 2, 2045,the Parties may desire to dissolve this Agreement. Dissolution of the Agreement requires an affirmative vote of every Party's governing body. Dissolution may occur no later than five years from the date of the last affirmative vote to dissolve and no sooner than two years, unless the governing body of each Party agrees to a different timeline. If the Agreement is not dissolved by unanimous consent, then any Party(ies) seeking dissolution may elect to terminate and withdraw as described in Section 11. 19.1. Plan of Dissolution Tigard will develop a Dissolution Plan to wind up business affairs,to be reviewed and approved by the WAB before it is presented to each Party's respective governing body. The Dissolution Plan must provide for among other things: (1) the continued operation of the System Assets while the Dissolution Plan is implemented; (2) an accounting of assets and liabilities; (3)provisions for the payment of debts and obligations; (4) the creation of a reserve account for known, unforeseen, and contingent liabilities; (5) a plan for liquidation of the assets or the purchase of System Assets by Tigard from TWD and Durham; (6) a 17 mechanism for distribution of asset proceeds and excess funds among the Parties in accordance with their ownership interest, following payment of all liabilities and obligations related to the System Assets; (7) a plan for separation of the TWD and Durham Distribution Assets from the System Assets to be acquired by Tigard; and (8) provisions for a long-term water supply contract between Tigard and the other Parties. To the extent that valuation of System Assets is necessary, the valuation process of Section 11.3 shall apply except that each Party will appoint a valuation expert and the three shall agree. If they cannot agree, the average of the three valuation results will be calculated and conclusive. 19.2. Transfer of Capacity Ownership The Dissolution Plan shall provide for transfers of System Assets to Tigard ownership for cash or other consideration, from a Party that seeks complete divestiture of ownership. The Dissolution Plan must provide for appropriate documents to vest ownership in Tigard. Legal fees and costs to transfer ownership to implement the Dissolution Plan will be paid as a common expense from the Water Fund(s). 19.3. Disputes Any dispute regarding dissolution or the Dissolution Plan shall be first subject to the Dispute Resolution process of Section 18 and, if not resolved after mediation, then as determined by the Circuit Court of Washington County. 20. Ratification of this A2reement/Execution in Counterparts Prior to the effective date of this Agreement,the governing body of each Party shall enact a resolution ratifying the Agreement. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Each copy of this Agreement so executed shall constitute a duplicate original. 21. Amendments Any amendment to this Agreement must be approved by the governing body of each party. 22. Severability If a portion of this Agreement is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, all remaining portions of this Agreement shall remain in effect until the Agreement is terminated. In such an event, the Parties will meet to consider amendments to the Agreement to conform to the original intent of the Parties. If the Parties are unable to agree on a revised Agreement within 90 days of entry of judgment by the court, a Party may give notice of termination and withdrawal. 18 23. Property Conveyances All Parties agree in good faith to execute any and all real property conveyances deemed reasonably necessary or desirable to show each Party's share of ownership of such Property as provided in this Agreement. Prior to December 31, 2019, TWD agrees to transfer all System Assets within its boundaries and currently held in TWD's name to Tenancy in Common agreements with Tigard and Durham. 24. Successors and Assigns The Parties to this Agreement shall not have the right to transfer ownership of or to remove System Assets,or to otherwise transfer any interest therein to a non-party without written consent of the other Parties. Neither the benefits received by Durham or TWD nor the obligations incurred under the terms of this Agreement are assignable or in any manner transferrable by Durham or TWD without the written consent of Tigard and any Remaining Party. CITY OF TIGARD CITY OF DURHAM By: By: John Cook, Mayor Gery Schirado, Mayor APPROVED AS TO FORM APPROVED AS TO FORM By: By: Shelby Rihala, City Attorney David Doughman, City Attorney TIGARD WATER DISTRICT By: Ken Henschel, Board President APPROVED AS TO FORM By: Eileen Eakins, District Counsel 19 Exhibit A City of Tigard Public Works Department Exhibit A Water System Assets-Real Property November 2018 Location Washington County Registered Owner Tax ID Year Area Built 8777 SW BURNHAM ST TIC Agreement-Tigard,King City,Durham,&TWD 2S102AD03450 PUBLIC WORKS OFFICE 8777 SW BURNHAM ST- (TIGARD) P989 12943 PUBLIC WORKS SHOP 8777 SW BURNHAM ST- (TIGARD) 1989 13830 10310 SW CANTERBURY LN TIC Agreement-Tigard,King City,Durham,&TWD 2S111BCO2600 EMERGENCY GENERATOR/STORAGE BUILDING(W/P10 VALUE)10310 SW CANTERBURY LN- (TIGARD) 1974 ,4765 CANTERBURY SITE#1-RESERVOIR#1-1 MG 10310 SW CANTERBURY LN- (TIGARD) i960 CANTERBURY SITE#1-RESERVOIR#2-1 MG 10310 SW CANTERBURY LN- (TIGARD) P969 12 BOOSTER PUMP STATION#1 10310 SW CANTERBURY LN- (TIGARD) 1972 120 ASR WELLHOUSE 10310 SW CANTERBURY LN- (TIGARD) 11003 1441 11580 BAYLOR ST Tigard Water District 1S136DD006600 BAYLOR WATER TANK#1-1.125 MG(NORTH TANK)(W/PIO VALUE)11580 BAYLOR ST- (TIGARD) PI969 PEI BAYLOR WATER TANK#2-1 MG(SOUTH TANK)11580 BAYLOR ST- (TIGARD) 1/963 U 12475 SW BULL MOUNTAIN RD Tigard Water District 2S110BC00900 BULL MOUNTAIN RESERVOIR-10 MG 12475 SW BULL MOUNTAIN RD- (TIGARD) P978 12 BULL MOUNTAIN RESERVOIR BOOSTER PUMP STATION 12475 SW BULL MOUNTAIN RD- (TIGARD) 11010 13520 BULL MOUNTAIN RESERVOIR WELL HOUSE 12475 SW BULL MOUNTAIN RD- (TIGARD) 11006 /440 BULL MOUNTAIN RESERVOIR INLINE VAULT 12475 SW BULL MOUNTAIN RD- (TIGARD) 11010 1320 LAND IMPROVEMENTS-PER 10/31/16 APPRAISAL 12475 SW BULL MOUNTAIN RD- (TIGARD) 11010 12 12980 SW 135TH AVE Tigard Water District 2S104DB05300 WELL HOUSE 12980 SW 135TH AVE- (TIGARD) 1/959 1170 SW 135TH-RESERVOIR#1-2.5 MG(SOUTH)(W/PIO VALUE)12980 SW 135Th AVE- (TIGARD) P.1983 12 SW 135Th-RESERVOIR#2-800,000 G 12980 SW 135TH AVE- (TIGARD) P972 12 13001 SW BULL MOUNTAIN RD City of Tigard 2S109ACO2500 PRICE RESERVOIR-3 MG(W/PIO VALUE)13001 SW BULL MOUNTAIN RD- (TIGARD) 2008 0 13425 SW 154TH AVE Tigard Water District 2S105DB00400 MENLOR RESERVOIR-3.5 MG(W/PIO VALUE)13425 SW 154TH AVE- (TIGARD) 1998 0 CONTROL BUILDING 13425 SW 154Th AVE- (TIGARD) 1998 108 WATER SHED BOOSTER STATION 13425 SW 154TH AVE- (TIGARD) 2011 150 14201 SW 119TH PLACE Tigard Water District 2S110BB00500 RESERVOIR SITE#2-280,000 G(W/PIO VALUE)14201 SW 119TH PL- (TIGARD) 1992 0 WELL HOUSE 14201 SW 119TH PL- (TIGARD) 1970 100 BOOSTER PUMP STATION 14201 SW 119TH PL- (TIGARD) 1992 50 GENERATOR VAULT 14201 SW 119TH PL- (TIGARD) 1992 135 DIESEL TANK-400 G 14201 SW 119TH PL- (TIGARD) 1992 0 14255 SW HIGH TOR DR Tigard Water District 2S109BB02902 RESERVOIR#1-HI-TOR NORTH 1 MG(W/PIO VALUE)14255 SW HIGH TOR DR- (TIGARD) 1971 0 RESERVOIR#2-HI-TOR SOUTH 1 MG 14255 SW HIGH TOR DR- (TIGARD) 1990 0 AIS-3668 9. Business Meeting Meeting Date: 12/18/2018 Length (in minutes): 15 Minutes Agenda Title: Consider Changes to the Employment Contracts for the City Manager and City Attorney Prepared For: Dana Bennett Submitted By: Kelly Burgoyne, Central Services Item Type: Motion Requested Meeting Type: Council Workshop Mtg. Public Hearing Yes Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Will Council make changes to the City Manager's contract? Will Council provide a merit increase to the City Attorney? STAFF RECOMMENDATION / ACTION REQUEST City Manager: As a review of the City Managers market position shows her 1.8% behind the middle of the market and that the City Manager's contract is not in alignment with the time-off benefits of other directors, staff recommends that Council increase the amount of administrative leave provided in her contract by 40 hours, changing it from 20 hours to 60 hours per year. City Attorney: As the City Attorney is on a regular City pay scale, and has not received a merit increase in the 15months since her start date, staff recommends that Council provide a merit increase of 12%. KEY FACTS AND INFORMATION SUMMARY The City Manager's contract provides guidelines for conducting an annual market study.. The market study was completed and shows that the current compensation for Tigard's City Manager is slightly below the middle of the market at -1.8%.In addition, the City Manager's contract is out of sync internally. Director contracts provide for 60 hours of administrative time annually, while the City Manager's contract only provides for 20 hours annually. Administrative time is provided in recognition for night meetings and other commitments which require time commitments beyond a regular work day for executive level staff. If Council made this change it would move the City Manager's market position to just above mid-market, to a positive .4%. The City Attorney's contract differs in that the position is on a regular pay scale within the City's pay system. Normally a position on the regular pay scale is eligible for a first merit increase at six months of service and then every 12 months thereafter. It is typical for merit increases to range between 0% and 5%, although exceptional performance can warrant a higher increase. The City Attorney did not receive an adjustment at the six-month date and is now fifteen months into city service with no adjustment in compensation. In light of that, staff would recommend that Council provide a merit increase of 12%, with an eligibility for the next increase December of 2019. OTHER ALTERNATIVES Council may provide direction to staff to make no changes in compensation for the City Manager and City Attorney, or may agree to make changes that are outside of the recommendations from staff. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS DATES OF PREVIOUS CONSIDERATION Council met in executive session on November 27, 2018 to review and evaluate the employment-related performance of the City Manager and City Attorney, as allowed by ORS 192.660(2)(i). Council met on December 11, 2018 to discuss the options for change in compensation of the City Manager and City Attorney in open session. Attachments No file(s) attached. SUPPLEMENTALPACKET FOR Amendment# 1 (D ATE OF MEETING) To City Manager Employment Agreement (2016-2019) Effective Date: December 18,2018 Between: City of Tigard (the"City") And: Martha (Marty) Wine ("Employee") Section 5: Leave Benefits of the Employment Agreement between the City of Tigard and Marty Wine is hereby amended with the following change to section C to read as follows: All other terms and conditions of the Employment Agreement and its amendments shall remain in effect. Section 3: Compensation C. The Employee shall accrue an additionalsix days of Paid Time Off above the levels provided in the Policy in recognition of the additional management leave currently provided to the Employee above the management leave provided to other management employees of the City. Marty Wine,City Manager Mayor John L. Cook Date Date