City Council Minutes - 06/18/2019 a City of Tigard
Tigard City Council Meeting Minutes
TIGARDJune 18, 2019
10
1. BUSINESS/WORKSHOP MEETING
A. At 6:30 p.m. Mayor Snider called the City Council to order.
B. City Recorder Krager called the roll.
Present Absent
Mayor Snider x
Council President Goodhouse x
Councilor Newton x
Councilor Lueb x
Councilor Anderson x
C. Mayor Snider asked everyone to stand and join him in the Pledge of Allegiance.
D. Call to Council and Staff for Non-Agenda Items—None
2. CITIZEN COMMUNICATION
A. Follow-up to Previous Citizen Communication—None
B. Tigard High School Student Envoy—John Freudenthal presented his final report on THS
activities to council for school year 2018-19. He noted the Balloon Festival and e of July
fireworks are coming up and due to construction,the 4t'of July fireworks will be held at
Cook Park instead of the Tigard High football field. The first day of school is September 4
and incoming ASB President Sarah Gentry will be presenting Tigard High updates. He
thanked council for their involvement in the community. Mayor Snider asked about his
future plans and THS Envoy Freudenthal said he is heading off to University of Oregon to
major in political science and minor in public policy. Mayor Snider read Resolution No.
19-19 approved by Council on July 11,2019 commending THS Envoy Freudenthal for his
service and presented him with a copy.
C. Citizen Communication—No one signed up to speak.
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3. RECEIVE BRIEFING ON UTILITIES BUSINESS PLANNING—FINANCIAL RATE
STUDIES STRATEGY
Utility Operations Manager Goodrich introduced this item and gave a PowerPoint presentation.
He said in January council asked Public Works staff if they could align future rate studies on water,
storm water and sanitary sewer. Staff put together a program where all three utility rates are
synchronized to come to council for adoption at the same time,using a strategy of a systematic
schedule of cost-of-service analysis and rate setting cycles. Staff will start with storm water,
drinking water(which has had no rate study since 2014),and the last will be sanitary sewer.
He said utilities are all funded through rates;no other funding is provided. Each utility has a
unique strategy for the rate structure but the plan is to make them all effective January 1,2020.
The water master plan is not complete and it is not in the best interests of the public to do a rate
study before the plan is staff needs to complete the master plan and develop a list of projects.
Master plans are staff resource intensive and cannot be done at the same time due so they will be
staggered
After 2021,Council will have a combined rate analysis which will start in 2024. Council will adopt
a package of rates in 2024 to make sure the rates meet the expenditures. This cycle will bring
continuity and make it easier to budget for these services.
Council President Goodhouse said there should be communication to show residents what the
changes will be and where and when projects are planned. He said people do not understand
changes on their utility bill. Utility Operations Manager Goodrich said the city gained a lot of
experience in the last nine years with the Lake Oswego Water Partnership and did a lot of local
communication to water users. He said this rate setting cycle will allow for better communication
and is an efficient use of consultants. Rates will be looked at from a full picture for the benefit of
council and the community.
Councilor Newton agreed and said she sees this as an opportunity to use master plans to show
people what the projects are,why the rates went up and what we are funding.
4. PUBLIC HEARING ON THE CAUSES AND CONSEQUENCES OF RENT BURDEN
a. Mayor Snider opened the public hearing and announced that anyone may give testimony
that has signed up to speak.
b. Associate Planner Warren presented the staff report for this item. In 2018 the Oregon
Legislature passed House Bill 4006 intended to address housing affordability across the
state. The bill defines severe rent burden as a household that spends more than 50 percent
of its income on rent. It also defines a rent burdened city as one in which more than 25
percent of its renters are severely rent burdened. In October of 2018 the City of Tigard
was notified by the Housing and Human Services Department that it was identified as a
rent burdened city as 26 percent of renters were severely rent burdened. In February 2019
the City was again notified that it was a rent burdened city and the percentage of rent
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burdened households had increased to 29 percent. Under the provisions of HB 4006 the
City is required to hold an annual public hearing on causes and consequences of rent
burden and possible solutions. The hearing for 2018 was held in January 2019 owing to
the compressed timeline between notification and issuance of Oregon Administrative
Rules.Tigard was also required to provide additional annual reporting on housing
production to the Department of Land Conservation and Development.
Associate Planner Warren said HB 4006 also provided technical assistance grants to rent
burdened cities to provide planning work towards addressing housing needs.Tigard
received a grant to develop an Affordable Housing Plan. The plan was informed by an
affordable Housing Task Force that met five times over the last six months. Their work
and the work of a consultant have concluded in a plan that will be considered for adoption
in a separate hearing tonight.
C. Public Testimony.Associate Planner Warren said two members of the Affordable Housing
Task Force have been invited to speak and then anyone from the public may testify.
Rachael Duke,Community Partners for Affordable Housing(CPAH) thanked the city for
allowing her to sit on the Affordable Housing Task Force. She is very excited about the
policy roadmap developed in the Affordable Housing Plan. CPAH has been part of the
Tigard community for close to three decades. Housing is a critical platform to success.
She commented that with shifts in city policy recommended this evening along with new
state and regional funding opportunities there could actually be some real changes and an
increase in affordable housing. This is housing that can be with us for a long time,
changing people's lives, making it possible for seniors to age in place or kids to stay in
school without having to move three times during the school year. It is an investment in
people's lives and builds the kind of neighborhoods that we all want to live in. The plan
has a combination of tools and it is not just one tool,but the combination,that will make
the difference. She said CPAH looks forward to the strategizing that will take place over
time. She applauded one of the most important strategies that Tigard is already doing-the
non-profit housing tax exemption,along with the exemption for non-profit housing
developers for the city's transportation and parks system development charges.
Ms. Duke said that without dedicated staff time to shepherd this project it will be hard to
accomplish the goals. She asked Council to consider what is already affordable but
unregulated housing in the community that could be stabilized. She asked that the city
focus on the people in the housing through tenant support. She summarized that CPAH is
in support of the plan and these resources and strategies are important and she looks
forward to being part of the conversation.
Jackie Keogh,Deputy Director of Proud Ground which is a community land trust and the
only affordable housing provider in the area that can ensure homeownership opportunities
for low and moderate income families spoke. They have two decades of experience and
during that time they've experienced an influx of lower income households who have
become priced out and forced to leave their communities,including Tigard.As this
persists,generations of families are excluded from building wealth through home
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ownership. Unfortunately this disproportionately impacts lower-income households of
color. These households have been systemically locked out of home ownership and
continue to experience instability and overall displacement. This instability causes children
having to change schools,parents having to commute further,and households limited to
building wealth and having to put it into overpriced rentals and families being separated
from support systems such as neighborhoods,parishes and daycare centers. Long-term
this can contribute to generational poverty.With the housing crisis creating these
aggressive forces it is essential that jurisdictions and non-profit affordable housing
providers work together to create permanent affordable housing solutions. Proud Ground
shares in the City's understanding that this area is missing crucial mid-sized housing that
has an important role for first-time homeowners, singles and senior citizens. In 2018,
Proud Ground's Board of Directors made the strategic decision to focus on Tigard as
part of the effort to mitigate displacement along the SW Corridor. Proud Ground has
since worked with the City of Tigard,Metro and non-profit partners on the feasibility of
developing affordable homes within the city. She said as a committee member of the
affordable Housing Task Force she can attest that Proud Ground is in support of the
affordable Housing Plan,specifically the recommended strategies that will leverage funding
sources to develop affordable housing such as the Construction Excise Tax and TIF set
asides.And beyond funding,Proud Ground commends the plan for its focus on
partnership with a land trust organization for prioritization on land banking for long-term
affordable housing. Investing in a single home can serve up to three income-qualified
households. She said Proud Ground appreciates the effort the City of Tigard is making.
Sheila Greenlaw Fink was unable to attend and provided written testimony that has been
added to the record.
Elise Shearer,9980 SW Johnson Street,Tigard,OR 97223, said as a former employee of
St.Anthony's Church,which has a congregation of 10,000 she heard from many people in
their multi-cultural community that even though they attend church at St. Anthony's or
work in Tigard, they cannot afford to live here. Many are rent burdened because they have
to drive to other communities to work,have higher transportation costs and spend more
time away from their families.They are living in multi-generational households in order to
make ends meet,especially in the Hispanic community. The Vietnamese and Filipino
communities live in multi-generational households because they support their seniors.
Many baby boomers are retiring and living on fined incomes and hopefully they've paid off
their homes or have down-sized. Seniors have greater medical expenses and sometimes
have to make a decision to give up a car because they cannot afford it. There are disabled
people, college students,immigrant families and entry-level employees who work in the
Tigard area but cannot afford rent in Tigard.
Ms. Shearer said she was thrilled that the Metro Housing Bond passed. Tigard has a very
experienced local partner in the CPAH organization willing to work with our city. She
added that CPAH started at St.Anthony's as a social justice community. She supports the
adoption of the Affordable Housing Plan which will benefit almost one-third of the
community, seniors,disabled,low-income and immigrant families and multi-cultural
communities. This will provide a more equitable community for all citizens of Tigard.
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d. Mayor Snider closed the public hearing.
Councilor Newton asked if the housing cost burden was rent and mortgage or total
housing costs including utilities.Associate Planner Warren said housing cost burden is any
household spending more than 30 percent of their income on housing costs (mortgage and
property taxes) and a severe household burden is any household spending more than 50
percent. The concept of rent burden only applies to rentals. House Bill 4006 does not
focus on home ownership;it focuses on housing costs related to rent. He said while both
issues are important,renters are sometimes more vulnerable.
5. PUBLIC HEARING: CONSIDER ADOPTION OF AN AFFORDABLE HOUSING PLAN
a. Mayor Snider opened the public hearing.
b. Associate Planner Warren gave the staff report for this item. In 2018 the Oregon
Legislature passed House Bill 4006 which provided the City of Tigard with a grant to help
with housing issues and create an Affordable Housing Plan. He introduced Matt Hastie,
consultant with Angelo Planning Group and project manager for the plan. He said Tigard
has been doing a lot already and the plan built upon those previous planning and
implementation efforts.
A task force met throughout the process. Strategies were evaluated in terms of staff time
and resources needed, feasibility(legally and politically), flexibility /ability to support
multiple goals,and level of impact,that is,would they be applicable to multiple housing
units,a few housing units,and if a funding source,how much revenue they would raise.
This evaluation was used by the task force to prioritize strategies.
Mr. Hastie said key findings are that the adoption of funding sources is crucial to
implementing the other strategies. Recommended funding strategies include:
• Adoption of a Construction Excise Tax (CET) High priority
• Become a Community Development Block Grant entitlement jurisdiction.
Currently the City is a partner in the CDBG program that Washington County
administers and is already receiving some funding. The recommendation is for
Tigard to become its own entitlement organization and this can be done in steps,
starting with becoming a joint entitlement jurisdiction with Washington County
which would bring in less money but would require much less time managing the
program,which can be a significant administrative cost. Estimated revenue is
$130,000 per year. High priority
• Set aside Tax Increment Financing(urban renewal),a set-aside of a portion of
urban renewal funding received through Tigard's two urban renewal areas to fund
affordable housing activities. This was also recommended in the SW Corridor
Equitable Housing Strategy document.There is expected to be a fair amount of
housing developed in the Triangle urban renewal district so there is a clear
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connection between setting aside some funding for housing and the type of
development likely to occur there.
Mr. Hastie spoke about tools to develop new or preserve existing affordable housing or
reduce barriers to that housing.
• Policy action to address current or future code,covenants and restrictions (CCRs)
that restrict or control things that the City allows in its zoning or development
code. It would not necessarily mean those that are in existence now but it could
start by preventing this from happening further. There would be some monitoring
involved. High priority
• Partnership with a Community Land Trust using revenues from funding sources
mentioned previously to support them for providing opportunities for
homeownership for low-income households,down payment assistance programs,
etc. High priority
• City support for resident/supportive services which help people maintain their
existing stable housing. The near-term recommendation is to consider
incorporating funding for this is any public safety levy that the city or county
considers. Longer term,revenue sources could be used to supply this service for
particular developments. High Priority
• Tenant and homeowner protection programs help stabilize existing households and
residents to reduce displacement.There are some good models of this from Salem
or Gresham. Staff would be required to develop and run the rental registration
process and them later on for inspections once it gets started. This is particularly
for multi-family housing.
• Preserve and protect low-cost and market rate (LCMR) housing units. Near-term
higher priority recommendation is to use the city's existing non-profit loans for
housing program tax exemption or use an acquisition or rehabilitation project to
help maintain that housing as affordable.
• An Incentive Zoning recommendation gives relief from mixed use requirements to
build commercial uses on the ground that still promote an active environment on
the first floor. High Priority
• Consider density or height bonuses or reduced parking requirements for affordable
housing near transit. Medium Priority
• Dedicated staff allocation to focus on these types of programs.The initial process
would be to develop a roadmap for how this would work over the next 10 years as
the population and tax base grow(half-time person extending to full-time)
Medium Priority
• Tax abatements are already being used.There are a number of state-enabled tax
abatement or exemption programs available. Update existing nonprofit low-
income housing program to terminate the exemption if eligibility criteria are not
met and also to apply this not only to low-moderate income housing already built,
but to land owned by organizations who commit to low-moderate income housing.
Near term,medium priority
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• Adopt a tax freeze for residential rehabilitation. Medium Priority
• Reducing or exempting system development charges (SDCs) is already being done.
One recommendation is to offer deferral at a lower interest rate for certain desired
housing types. A recommendation is to work with other entities in the region to
lower non-city SDCs. Another recommendation is to update the SDC
methodology to tie fees to dwelling size. Prineville did this recently Long term
• Partner with land banking and acquisition but avoid development of an extensive
program until funding and staff resources are adequate. Low priority
• Inclusionary zoning is allowed in Oregon but there are a lot of restrictions on how
it can be used which makes it challenging. If state regulations change in the future
this may be worth looking at. Only one city is doing this at present and he is not
recommending smaller cities do this. Low priority
Mr. Hastie showed a slide with the timeline which is also described in the Affordable
Housing Plan.
c. Mayor Snider opened the public hearing and announced that anyone signed up to speak
may give testimony.
Carine Arendes,9524 SW North Dakota Street,Tigard,OR 97223,thanked staff for
implementing the DLCD grant. She said she was heartened that Council is recognizing
that being able to stay in Tigard for the long term is a pressing need for Tigard's
increasingly diverse community and she expressed her support for adopting the 2019
Housing Implementation Strategy and challenged Council to continue to build upon this
work. She was pleased to see a recommendation to increase funding for regulated housing.
She also liked code changes to eliminate unnecessary requirements for co-mingling of
housing and commercial space. She said she was concerned about the recommendation to
avoid planning for land acquisition in the urban renewal area as well as how long some of
the basic steps such as hiring dedicated staff will take. She said,"We could do better."Ms.
Arendes suggested setting goals for adding affordable housing units over time,identifying a
time and process to check in and evaluate,and a plan to share with the community what is
happening on this topic. Staff has reported that there has never been an analysis on how
many low-cost units are needed in our community but what we do know from the
Equitable Housing Strategies Report is that there are about 6,000 low-cost units in Tigard.
She said with that many units at risk for rental increases due to the SW Corridor project
there is too much at stake to not know clearly where we are going and what we hope to
achieve. She thanked Council and staff for taking action to protect community members
who call Tigard home and want to stay.
Greg Patton, 16745 SW Queen Anne Avenue,King City,OR 97224, said he is on the St.
Anthony Severe Weather Shelter Steering Committee and has been involved for ten years.
He thanked the City for providing social service grants to help feed people and keep them
warm. He said they support the Affordable Housing Plan.The number of both chronic
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homeless and those cycling in and out of homelessness is increasing. Most places that are
low income have a waiting list or are full. Mayor Snider thanked Mr. Patton for his service
to the community.
Ezra Hammer,Homebuilders Association, 15555 Bangy Road,Lake Oswego,OR 97035,
thanked Council and staff for taking up this important issue. He spoke about the CET as a
funding source and said that while it will lead directly to increased costs for market rate
housing,they do believe that a dedicated source for affordable housing is critical. He said
there are two targeted SDC reforms which would offset the cost of the CET for new
housing. The first is insuring that the SDC rates are due on completion of the land use
application. It can take two years to plan the project and get it approved. Builders are
dedicating hundreds of thousands of dollars towards the project just to get to that point
(land purchase,attorneys,community engagement personnel), so they believe if the city
were to allow the builder to know what the rates are from day one,they won't see dramatic
increases in the cost of SDCs while going through that process. This is similar to how the
zoning code cannot dramatically shift after the date of application.
Mr. Hammer said the second idea is collecting the SDCs towards the completion of the
building project. Currently they are paid upon pulling the building permit,but the impacts
of the SDCs relate to the occupancy of the building.The water and sewer won't be used
until the homeowner is living in the building. A number of cities are looking at collecting
these costs closer to issuance of the certificate of occupancy. The dollar amount is the
same for the city but it would reduce the impact of carrying the cost during the entire
project.
Mayor Snider clarified that the HBA wants the city to make the two changes and do the
CET. Mr. Hammer said that while they are not in favor of increasing the cost of market
rate housing,they respect the fact that the city is identifying a need for some funding and
they believe that through robust discussion a compromise can be reached.
Councilor Anderson asked Mr. Hammer how he felt about the one percent being the
highest in the state. Mr. Hammer said he could be incorrect but he thought the cost of the
CET was based on the building permit,not the cost of the house itself.
Associate Planner Warren said staff is not asking council to consider the CET tonight. He
referred to a question from Councilor Anderson and said the CET is based on the permit
value,not the market cost of the property. He said one percent is the maximum allowed
under state law and every city that has adopted it, did so at that rate.
Councilor Anderson clarified that Council's consideration is on the Affordable Housing
Plan,not each individual recommendations.
Council President Goodhouse asked when SDCs will come back to council for discussion
and Associate Planner Warren confirmed that the discussion on potential SDC changes for
ADUs is scheduled for July 9. Associate Planner Warren said pursuing the work program
would require opening the entire SDC methodology and that is why it had a lower priority.
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Council President Goodhouse asked how allocating a full time staff member would be
funded. Associate Planner Warren said in the near term the task force suggested that initial
money from funding sources go towards programs. This will be revisited in the future as
income and the tax base grow.
Mayor Snider noted that Hillsboro and Beaverton are both CDBG entitlement cities and
asked if they are using the process recommended for Tigard or are they full entitlement
cities. Mr. Hastie said Hillsboro started out using that process and learned some lessons
that Tigard can draw on. He said Beaverton is a full entitlement city but shares some
resources. Councilor Newton added that Hillsboro is a full entitlement city but does their
plan jointly with Washington County.
d. Mayor Snider closed the public hearing.
e. Council Consideration
Council President Goodhouse clarified that this is a roadmap and he had no problem
moving forward. Councilor Lueb thanked everyone involved in this important work for
the community and said it is important to close the housing gaps and take care of the most
vulnerable. She said she is supportive and looks forward to discussing each option as a
stand-alone item. Councilor Newton said she appreciated the strategy of looking at
funding sources first and the thoughtfulness about impacts to the General Fund.
Councilor Anderson moved to approve Resolution No. 19-27. Councilor Lueb seconded
the motion. City Recorder Krager read the number and title of the resolution.
Resolution No. 19-27—A RESOLUTION ADOPTING AN AFFORDABLE
HOUSING PLAN FOR THE CITY OF TIGARD
Yes No
Mayor Snider x
Council President Goodhouse x
Councilor Newton x
Councilor Lueb x
Councilor Anderson x
Mayor Snider conducted a vote and announced the resolution passed unanimously.
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6. CONSIDER SECOND RESTATED COOPERATIVE AGREEMENT WITH WILLAMETTE
RIVER WATER COALITION (WRWC)
Public Works Utility Division Manager Goodrich gave the staff report for this agenda item.The
Willamette River Water Coalition was formed in 1997 to preserve access to the Willamette River
as a potential water source. The first restatement of the agreement was in 2008. Over the last
several years changes were made including the creation of the Willamette Intake Facility
Commission. Because of these actions and changes,the four members felt the agreement needed
to be restated. Roles are being clarified including those of the Tualatin Valley Water District.The
key points for Tigard are that it restates water rights of 26 mgd in the Willamette supply. There are
25 mgd of unallocated rights. If new members are added or a decision is made to share,
provisions are provided in this IGA. He said there is no fiscal impact and it just protects Tigard's
interests. The agreement does not take place until October,2019.
Councilor Newton clarified for the audience that Tigard cannot take water from the Willamette
River without a vote but we have water customers, such as those in Durham, that do not have the
same restriction. She suggested communicating with the public on how this protects our overall
water strategy. Utility Manager Goodrich said they will be doing that but need a systematic
approach including discussion with our partner,Lake Oswego about whether Willamette River
water would be needed in the joint water supply's future. Staff recognizes the importance of the
Willamette supply. Mayor Snider said there may come a time 20-30 years from now where our
choice is not to have enough water or to take some from the Willamette River.
Councilor Lueb motioned to approve Ordinance No. 19-07. Council President Goodhouse
seconded the motion. City Recorder Krager read the number and title of the ordinance.
Ordinance No. 19-07—AN ORDINANCE APPROVING THE SECOND RESTATED
INTERGOVERNMENTAL COOPERATIVE AGREEMENT CREATING THE
WILLAMETTE RIVER WATER COALITION,AN INTERGOVERNMENTAL
ENTITY FORMED UNDER ORS CHAPTER 190 BETWEEN TUALATIN VALLEY
WATER DISTRICT AND THE CITIES OF SHERWOOD,TIGARD,AND
TUALATIN
City Recorder Krager conducted a roll call vote. Mayor Snider announced that Ordinance No.
19-07 passed unanimously.
Yes No
Mayor Snider x
Council President Goodhouse x
Councilor Newton x
Councilor Lueb x
Councilor Anderson x
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7. CONSIDER ORDINANCE FOR TIGARD MUNICIPAL CODE CHAPTER 10.40
RELATED TO ANIMALS ON SIDEWALKS
a. Mayor Snider opened the public hearing.
b. City Attorney Rihala gave the staff report for this item. She said horses,ponies and goats
are not allowed on a city sidewalk.They cannot pull a wagon and this is punishable by a
fine.
In consultation with the city's police department staff has determined that this is no longer
a relevant code section and the staff recommendation is to repeal it.
c. Mayor Snider opened the public hearing and announced that anyone may give testimony
that has signed up to speak. There was no testimony.
d. Mayor Snider closed the public hearing.
e. Council Consideration
Council President Goodhouse moved to approve Ordinance No. 19-08 and Councilor
Anderson seconded the motion. City Recorder Krager read the number and title of the
ordinance.
Ordinance No. 19-08—AN ORDINANCE REPEALING TIGARD
MUNICIPAL CODE CHAPTER 10.40,RELATING TO ANIMALS ON CITY
SIDEWALKS
City Recorder Krager conducted a roll call vote. Mayor Snider announced that the
Ordinance No. 19-08 was adopted unanimously.
Yes No
Mayor Snider x
Council President Goodhouse x
Councilor Newton x
Councilor Lueb x
Councilor Anderson x
S. NON-AGENDA ITEMS None
9. EXECUTIVE SESSION None scheduled
10. ADJOURNMENT
At 8:31 p.m. Councilor Lueb motioned for adjournment. Council President Goodhouse
seconded the motion and all voted in favor.
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Yes No
Mayor Snider x
Council President Goodhouse x
Councilor Newton x
Councilor Lueb x
Councilor Anderson x
Carol A. Krager,City Recorde
A
Jaso . 'Hider,Mayor
Date: 47 LG^Le /3 Z;Iel l
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