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City Council Minutes - 11/05/2019 o City of Tigard Tigard City Council Meeting Minutes . November 5, 2019 1. BUSINESS MEETING A. At 6:30 p.m. Mayor Snider called the Tigard City Council and Local Contract Review Board meeting to order. B. City Recorder Krager called the roll. Present Absent Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Youth Councilor Turley ✓ Council President Goodhouse ✓ Councilor Newton ✓ 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. Citizen Communication—Sign-up Sheet. No one signed up to speak. 3. CONSENT AGENDA (Tigard City Council&Local Contract Review Board) A. CONSIDER INTERGOVERNMENTAL AGREEMENT WITH METRO FOR WASHINGTON SQUARE GRANT AWARD B. CONSIDER CONTRACT AWARD FOR MAIN STREET PHASE 2 DESIGN Councilor Anderson moved for adoption of the Consent Agenda as presented.Council President Goodhouse seconded the motion. Mayor Snider conducted a vote and announced that the motion passed unanimously. Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 1 of 14 4. LEGISLATIVE PUBLIC HEARING: CONSIDER ORDINANCE ADOPTING A CONSTRUCTION EXCISE TAX A. Mayor Snider opened the public hearing. B. Mayor Snider announced that anyone may offer testimony and there was a sign-up sheet at the front of the room. C. Associate Planner Warren gave the staff report.He said the Construction Excise Tax is a tax levied on the permit value of construction. It was enabled by Senate Bill 1533 passed in 2016 and can be levied on both commercial and residential building. Residential CETs are limited to a maximum of 1%of the permit value and must be allocated according to a state formula: 1) 50 percent goes towards developer incentives for housing which can be used for SDC exemptions or tax abatements; 2) 35 percent goes towards flexible, affordable housing programs;and 3) 15 percent goes to Oregon Housing Services for home ownership and those dollars come back to Tigard for home ownership programs in the city. Commercial and industrial CETs are not limited,but one percent is typical. The state also has a formula for how those are allocated,which is 50 percent going to affordable housing programs. So far ten jurisdictions have enacted a CET,most recently the cities of Milwaukie and Portland. Mr. Warren said adopting a CET helps backfill SDC exemptions. Tigard has had an affordable housing SDC exemption for about a year and a half and the CET could help replace that lost revenue to the parks and transportation funds. It supports affordable housing in Tigard through the state's down payment program and is a key component of the City's Affordable Housing Plan. In June,when considering the Affordable Housing Plan, Council considered two key funding sources,including Joint Entitlement through the Community Development Block(CDBG)grants and CETs. Associate Planner Warren explained that CETs are based on the permit value of construction. He clarified that permit value is based on the construction cost, not the sale or land price, and is paid prior to the building permit issuance. As an example, a home worth$525,000,construction would cost approximately$275,000 and so the Construct Excise Tax would total $2,750. CET would apply to any construction not explicitly exempted by the authorizing Senate Bill, of which there are several.At adoption of a CET, the City could opt to provide other exemptions. Staff have included a list of potential exemptions that they suggest. As far as CET revenue, the City can estimate what it will generate based on previous years' permit data. Looking at the most recent year, FY2018-2019, there were approximately$1.7 million in construction permits,with an additional$2.1 million in FY2017-2018. Mr.Warren noted these are estimated figures and that construction would trail off during a recession, leading to lower CET revenue. He stated that the last two fiscal years demonstrate how changes in each type of construction affects the total CET revenue. TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 2 of 14 In FY2017-2018, there was greater residential construction, which under the state formula would have generated approximately$2.1 million in CET revenue. In FY2018-2019, however,there was greater commercial construction, which under the state formula would only have generated$1.7 million. To figure what the City would receive,you must implement the state's formula. The City retains a 4% administrative fee, so for FY2017-2018 the City would have collected about $700,000 in SDC backfill funds. In FY2018-2019,in contrast, the City would only receive $267,000 in SDC backfill. A CET could produce many benefits,including helping to backfill SDC payments from the City's Affordable Housing Plan exemption program. The tax would also help with down payment assistance, permanent affordability through community land trusts, support for purchase of low-cost market-rate units (not necessarily purchased by the City,but could be supported by the City),land banking for affordable housing and gap financing for affordable rental units. The City has provided some gap financing in the past through urban renewal funds.This would be a more flexible source of funding for affordable housing. Councilor Newton asked what a permit for$50,000 or less would fund for a homeowner looking to add additional living space for a family member. Associate Planner Warren said he was unsure since he was not a contractor but based on his own personal knowledge of construction costs this might be a kitchen remodel or adding on to expand a bathroom. Mayor Snider added that those additions would be exempted anyway if it did not increase the footprint. For a $100,000 project,Mr. Warren explained that only$1,000 would be paid in a CET. Mayor Snider asked how staff arrived at the missing middle exemption of 50 percent as opposed to any other level. Mr. Warren said staff knew they wanted to provide an exemption, but the scale of development is typically between a professional builder versus an owner-built Accessory Dwelling Unit (ADU). The 50 percent exemption split the difference between the full cost of a single-family structure and the full cost of an ADU. Mayor Snider then verified the effective date was January 1, 2020 and would apply to anything receiving a permit after that date. Mayor Snider opened the floor for public testimony. Jackie Keogh, 5288 N. Interstate,Portland, OR 97217, spoke as Deputy Director of Proud Ground, the region's community land trust. She said she served on the City's Affordable Housing Task Force. She noted that in 2018 their Board of Directors made a strategic decision to focus on the City of Tigard as part of a larger effort to mitigate displacement in the SW Corridor. They have been working with the City,Metro,local developers and non-profit partners on the feasibility of developing permanently affordable homes within Tigard. They support both the CET and the tax exemption for non-profit affordable housing. CET specifically was a key recommendation of Tigard's Affordable Housing Task Force and is essential to pursuing the other recommendations within the plan, including the ability to purchase land and support first-time home ownership programs. She said this program is flourishing in Beaverton and Hillsboro. With a CET, TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd., Tigard, OR 97223 www.tigard-or.gov I Page 3 of 14 Proud Ground can bring this program to Tigard and ensure that residents have permanently affordable housing. She said they have several developers ready,but Proud Ground cannot purchase and hold the land for affordable housing development to be planned.This change would allow Proud Ground to purchase the properties and the tax exemption will help their projects pencil out. If purchased by developers at market rate, they would not be building affordable housing. Nina Kung, 7522 SW Ashford Street,Tigard, OR 97224, spoke in support of the CET and the tax exemption for developing affordable housing. She participated in housing replacement prevention in the SW Corridor program,which had both an adult and youth cohort that met for six months involving City of Tigard,Metro and Unite Oregon, a non- profit.Tigard has a great need for affordable housing,especially because prices will rise with the development of light rail and residents'income has not risen to match the increase.The CET and exemptions are really needed to support and implement the Affordable Housing Plan so people may have housing security,which impacts all aspects of people's lives. Ms. Kung is testifying to express support for both proposals. Sheila Fink, Community Housing Fund, 3700 SW Murray Blvd., Beaverton, OR 97005, spoke in support of the CET. Community Housing Fund participated in the development of the Affordable Housing Plan and support both the CET ordinance and the tax exemptions for non-profit affordable housing. She said Tigard is severely rent burdened, more so than other cities in the state, and solving this problem will require money and willing partners. This is one of few strategies available to the City to generate additional funds for affordable housing. She was on the Vision Task Force in the 1990s who first said the community had to do something. At that point, Tigard agreed to put tax exemptions for non-profit housing in place and was the first city to do so in Washington County. She stated she appreciated the leadership of the City and said it's made a big difference over the years in discussing what one small city could do. This was critical and helped a lot of projects get going. She remembers years ago when Duane Roberts did a video presentation on affordable housing, including why we care and what can we do. Angel was one of the residents who had an opportunity to get stabilized, get help with her addictions and get her GED. She is now a homeowner that runs a non-profit that helps people with mental health and addiction issues. It's a diverse population in Tigard and they can't all afford what the market can offer. A CET helps provide flexible funding to help homeowners and renters. The tax exemption ordinance is also important. She said the ordinances were well crafted and they hope to see them adopted. Tracy Stepp, Community Partners for Affordable Housing, 6380 SW Capital Highway, Portland, OR 97239, said she has been involved in the Tigard community for over 13 years. Over that time, the move toward affordable housing has increased. She noted that Rachael Duke, Executive Director submitted a letter in support of the CET and tax emptions that make their work possible. She wanted to share that for over a decade she has heard personal stories from real people, telling how this help has changed their lives, made their families and children stronger and gave seniors the ability to age with dignity in their home. She said they build housing for people who need affordable and safe places to live,which in turn makes the whole community stronger. TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 4 of 14 Carine Arendes, 9524 SW North Dakota Street,Tigard, OR 97223, said she is active in the community and participated in the Tigard anti-displacement learning opportunity provided- by rovidedby Unite Oregon and it was a valuable experience to hear the stories of people struggling today. She explained she was here to encourage Council to adopt CET ordinance which will provide a needed source of funding for developing regulated affordable housing. Although the economy is doing well,not everybody in our community is doing well. Almost half of houses are rent burdened, and a quarter are severely rent burdened. Clearly,we need more affordable housing and the private market is probably not going to supply it at the level that we need, and funding is a major barrier for non-profit housing providers. The CET was vetted by the community stakeholders participating in the Affordable Housing Task Force. She said one reason she lives in Tigard is that when she was a young working mom,Tigard was an affordable community with good schools and parks. She hopes her own child can afford to live here too. She asked Council to pass this ordinance. Ezra Hammer, Home Builders Association of Portland, 15555 Bangy Road,Lake Oswego, OR 97035, noted that he appreciated hearing the public comments that came before him. He thanked staff for working diligently on this issue. It is always a concern when the developer association sees new taxes proposed,but they think the proposal strikes a good balance. He wanted to note that it really is a tax that will tax housing affordability broadly. They need to be sure that the tax to regulate affordable housing does not impact market rates across the board. Mr. Hammer stated he's before the Council tonight to reiterate their organization's request to rework the ordinance in its current form. The group can understand that taxes in some instances are important,but they need the City to come to the table to examine structural administrative reforms on how they tax existing housing. He asked Council to consider the CET in conjunction with some administrative reforms regarding the way fees are collected.Namely, to delay impact fees to closer to the issuance of an occupancy permit to reduce carrying costs. These costs add up into thousands of dollars for developers.They ask the Council to consider their proposal. E. Response to testimony by staff. Associate Planner Warren reported that he will follow-up with Mr. Hammer regarding his testimony and then report back to Council. He explained that staff have worked with the Development Advisory Committee on development of this ordinance,which includes the Homebuilders, and they've been working on the mentioned administrative reforms. It is not as easy as simply updating the administrative rules, and the Municipal Code will need to be amended in order to proceed. Staff are currently doing background work to determine what the costs would be. Mr. Warren explained that due to prioritization from the Development Advisory Committee, staff have been working on the issue of delaying SDC collections first. Mayor Snider asked why the two changes were not being worked on concurrently. Mr.Warren explained that the housing need is now, and it is not getting better. Staff do not view the CET proposal and the administrative reforms as coupled, and that the CET is a real need now. Since it was ready, staff felt it could go before Council on its own. Mayor Snider asked if work on these two issues began at the same time. Mr. Warren explained that no, the Committee meets quarterly, and one item began a quarter before the other issue due to software considerations.Administrative reforms in fee collection would TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 5 of 14 require software changes and staff are just now getting information back from the third- party vendor that would help update the software. Council President Goodhouse said he was surprised to see the CET come forth but not the SDC consideration at the same time since he remembered that during consideration of these items,it was noted bringing them forward at the same time would work to balance them out. Councilor Newton asked when the SDC collection matter will come to Council. Associate Planner Warren said he could not commit to a timeline, because the Building and Finance Department and City Attorney would also need to be involved. He estimated February 2020 at the earliest. F. Mayor Snider closed the public hearing. G. Council Discussion and Consideration: Ordinance No. 19-16 Councilor Anderson stated he has been a proponent for a couple of years. He has been watching the City of Bend to see how they use their money and said this will help. It will bump up the market rate because it will be passed along to consumers. He said it will be good to put the SDC changes into place. Mayor Snider asked if Councilor Anderson thought the CET proposal needed to wait until administrative reforms were ready for approval. Councilor Anderson stated he thinks the sooner the better,but if this took effect January 1"the number of affected permits would not be a big issue. Council President Goodhouse said he supported the CET,although it will be passed on to builders. He proposed holding approval of the CET until Council can consider the SDC changes to strike a balance between the two, saying it would not cost the City anything to wait. He stated he could only support the proposal if the two issues were present to balance one another. He sees these two items linked together. He thinks approval of the CET ordinance this evening should be contingent on the passage of the SDC deferment. Councilor Lueb commented that the Affordable Housing Plan is incredibly important and listening to our first speakers, she realizes it has a huge impact in the City. She felt there was a cost to the City to continue delaying it and was in favor of passing it now. Councilor Lueb said she would be in favor of deferring collection of SDCs but does not think the two issues are so interconnected that the CET cannot move forward without the SDC deferment. Councilor Newton agreed and said the CET is a key piece of the Affordable Housing Plan and associated programs and she was reluctant to delay it. She said she was enthusiastic about having willing land bank partners but less enthused about the City getting into building affordable housing. She supports passage of the CET today with a note to staff to bring the SDC deferment quickly as possible. Mayor Snider agrees that if CET is approved, staff should make the SDC deferments move as fast as possible. He asked if this implementation date gives people enough time to plan by January 1. Mayor Snider said his remaining concern is the missing middle housing. There TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 6 of 14 is not a lot of construction happening and the City is saying it will implement a 50 percent CET on these desired middle housing developments. Councilor Newton clarified that Mayor Snider's contention was regarding the 50 percent CET on affordable housing. Mayor Snider explained that the City has just completed a couple years of code amendments to make building affordable housing easier in Tigard and before any building has begun, they are adding another tax. Council President Goodhouse stated that the City is trying to promote more growth and affordability, so he didn't like implementing the CET without the SDC deferments either. Mayor Snider reviewed Section 5 of the proposal more closely and found that,like ADUs, the CET on missing middle housing is repealed in 2023. Mayor Snider stated that he would like to see the CET on missing middle closer to 25 percent or zero, so construction is encouraged. He stated he was unsure whether the 50 percent tax would be a barrier. Councilor Anderson stated he could live with 25 percent and Council President Goodhouse concurred. Councilor Lueb stated she could also live with 25 percent CET on missing middle housing while maintaining the sunset clause in 2023. Mayor Snider asked City Attorney Shelby Rihala said she believed the Council wanted to exempt these to 75 percent,meaning the developer would pay 25 percent of the CET, and that the exemption would go to zero percent upon sunset.Councilor Newton agreed that a 75 percent exemption is acceptable. Council President Goodhouse moved to approve Ordinance 19-16 with the change to Section 5, making it exempted to 75 percent,to be effective on January 1 contingent on passage of SDC deferments. There was no second and the motion died. Councilor Lueb moved to approve Ordinance No. 19-16 with amended Section 5, Cottage Clusters for 75 percent of the CET. Councilor Anderson seconded the motion, saying he hoped staff will come back with the SDC consideration by March 1. City Recorder Krager read the number and title of the ordinance and conducted a roll call vote. Ordinance No. 19-16—AN ORDINANCE ENACTING A CONSTRUCTION EXCISE TAX,AMENDING SECTION 5 TO READ THE EXEMPTION IS 75 PERCENT Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ Mayor Snider announced that Ordinance No. 19-16 was adopted unanimously. TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 w-,vw.tigard-or.gov I Page 7 of 14 5. LEGISLATIVE PUBLIC HEARING: CONSIDER ORDINANCE AMENDING TIGARD MUNICIPAL CODE 3.50—TAX EXEMPTIONS FOR NON-PROFIT AFFORDABLE HOUSING A. Mayor Snider opened the public hearing. B. Mayor Snider announced that anyone may offer testimony and there was a sign-up sheet at the front of the room. C Associate Planner Warren gave the staff report and gave a PowerPoint presentation. The proposed ordinance would update the City's tax exemption for non-profit and affordable housing. This has been in place since 1997,when the state allowed jurisdictions to exempt affordable housing developments from property taxes. Portland was the first city in the metro region to adopt the program and Tigard was the second. It has been a successful program with great partners. The exemption only applies to City taxes,which are only one piece of the total property taxes. Property taxes account for 14 percent of the bill.The State said each taHing district had to adopt the exemption separately. However,if they could get 50 percent of taxing districts to sign on, then entire bill will be waived. Tigard adopted the program in 1996,but city code has not kept up to date with the changes in state law. Under this program, the non-profits seeking exemptions must apply for each property and staff recommends to Council in the spring. There are currently four properties in Tigard with exemptions, with additional future properties likely to qualify. Mr. Warren highlighted two key changes to state law being addressed with this code amendment. The exemption allows purchases of land to be exempted from City taxes while the property is held for later development for up to five years.Another provision is a claw back provision that allows the City to impose taxes retroactively should the land be sold or not developed into affordable housing. Associate Planner Warren said extending tax exemptions to land banking lowers holding costs for developers during financing assembly. It allows developers to buy land at a lower price, before land prices rise over time. The update to taxing supports equitable housing in the SW Corridor and aligns with the land purchase goals of the Metro affordable housing bond. C. Public Testimony— Sheila Fink, Community Housing Fund, 3700 SW Murray Blvd.,Beaverton, OR 97005, said the tax exemption program has been very valuable, and these changes will make it even more so. It will provide services not achieved in the past. She thanked the Council for working with staff and stakeholders through committees to construct these recommendations. She said that her organization appreciates the time and energy going into making real changes to help preserve and create new affordable houses so that all kinds of families can call Tigard home. TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 8 of 14 Carine Arendes, 9524 SW North Dakota Street,Tigard, OR 97223, stated she was here in support of updating the existing tax exemption policy because it works! It helps maintain housing for those who may otherwise be displaced. She is a member of Unite Oregon and is proud to bring land banking to the city. It has helped non-profits create and maintain affordable housing in Tigard.As a land use planner,she believes in balance and she thinks staff have done their due diligence on this idea and it has been fully vetted before their task force. She said there was no reason not to adopt the revisions in the ordinance this evening to address the housing challenges ahead. D. Response to testimony by staff. None. E. Mayor Snider closed the public hearing. F. Council Discussion and Consideration: Ordinance No. 19-17 Councilor Anderson moved to approve Ordinance No. 19-17. Council President Goodhouse seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 19-17—AN ORDINANCE AMENDING TIGARD MUNICIPAL CODE 3.50 NON-PROFIT CORPORATION LOW-INCOME HOUSING TO INCLUDE TAX EXEMPTIONS FOR LAND BANKING AND REMEDIES FOR PROPERTIES THAT LEAVE AFFORDABILITY City Recorder Krager conducted a roll-call vote and the motion passed unanimously. Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ 6. RECEIVE UPDATE ON LOCAL OPTION LEVY PLANNING City Manager Wine,Assistant City Manager Nyland, Central Services Director Robinson, Communications Manager Wyatt and John Horvick from DHM Research presented this item with a slide presentation. City Manager Wine stated the Council has a goal to seek a Local Option Levy from Tigard voters in May of 2020. Staff are here to update the Council on the information coming forward from community outreach, the levy and bond task force, facilities planning and the results of a community survey. She explained that they are in the second phase of planning for the levy, during which the Council works to refine the levy and review the scope to determine what to bring to the voters. There is no action requested tonight,but a referral to the ballot would need to occur by late January 2020. She informed the Council the survey results reflect a low level of support for a local option levy. TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 9 of 14 City Manager Wine said the Council would need to decide whether they've had enough time to communicate with the voters regarding the levy or adequate time to explain the City's budget and financial challenges, whether the proposal is clear and defined,and demonstrates community benefits. Staff's recommendation is that a levy not be referred without having over 50, or even better 60 percent,of the community in support. Central Services Director Nadine Robinson stated she was there to discuss the facilities project for the Police Department. The City has contracted with FFA Architecture & Interiors. The scope of the project includes building on a prior report to confirm the space needed by the department and determine whether the current police department could accommodate a second story. FFA also examined the City's facilities condition assessment completed in 2016. Since then, the City's ADA Transition Plan was added, and they wanted to update the report to reflect new needs that have arisen since 2016. FFA first met with representatives from each division in the department and spoke with them face to face. Not surprisingly, they need additional space across the board to be more efficient.They also expressed that they wanted to be together and have good security with secure parking. Ms. Robinson said that they determined that it was feasible to add a second story to the current police facility,but because a Police Department is classified as an essential facility,it must be up to higher seismic standards and these are accompanied by greater costs. They looked at the sites currently available in the Triangle and commercial center off Highway 217 and they are not optimal locations. From the facilities condition assessment, the City knows that there are serious sewer issues that would require going through the police department to complete. It is projected this could total more than$2.5 million. Police department programming includes police operations, community space, emergency management and some IT support, for servers and related equipment in the case of a natural disaster. Results of the programming means the City needs almost 50,000 square feet. Exterior needs include almost two acres of parking. Staff are evaluating facility needs overall,looking at a larger project to determine whether the police department should be part of a larger civic center or its own project. Staff anticipate coming back with both options for Council to consider. Councilor Newton asked about the date they would return with a formal proposal on how to move forward. Central Services Director Robinson stated they were still aiming for the end of the year. Kent Wyatt,Communications Manager, stepped in to give an overview of communication outreach effort. One form of outreach—In-person engagement—began with not ending communications when the previous levy failed. They evolved their communication style to be timelier and more empathetic. City staff asked the community what they did not hear from the City that they wanted to, such as understanding more of what the City does. Staff have taken an all-hands-on-deck approach with 94 events in the past year. These drew a lot of people who then interacted with staff who were able to communicate the City's challenges more effectively. The second form of outreach—Digital engagement—was also refined from feedback from the Committee for Community Engagement(CCE),surveys and focus groups.They learned how and what people wanted to hear, and a primary response was that they wanted to learn through videos. TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 10 of 14 Staff have produced several videos since that time,recently setting the tone for facility needs in Tigard as well as videos related to police services. Staff have previously reported on survey results regarding Safe Routes to Schools and the Council has discussed this and the potential levy many times. Staff continue to emphasize the need for additional police resources and additional officers. The performance audit highlighted this need. What communications staff has heard from the community is to move forward by having more conversations,more names and faces of police officers and why policing is meaningful to them. For either the levy or police recruitment, staff feel it's important to show the people behind the policing. Communications plans a couple of citywide mailers on police services. Their work has been informed by the Levy Task Force, and the CCE,who have been very honest about the City's work. Staff continue to gather and incorporate new feedback into their communications outreach with the community. City Manager Wine said there is important information regarding the component and total costs of the levy as well as the resulting levy rate to come to Council at next week's meeting. Mayor Snider agreed that it's hard to consider one without the other. Assistant City Manager Nyland spoke about the Bond and Levy Task Force which was reconvened in August 2019 with 12 former members and 5 new appointments. They met three times,looking back at lessons learned from the previous levy and examining the proposed 2020 levy. She said they spent a lot of time on messaging and sampled ballot titles. At the end they agreed to send a letter to Council saying whatever they choose to do, the Bond and Levy Task Force members will support. They do not recommend the May 2020 timeline and feel that more time is needed to clarify benefits and establish a need. A discussion was held on whether to include Safe Routes to Schools and the group landed on having a sole focus package. The task force suggested not focusing on a specific date,but instead spending time addressing perceptions, explaining finances, including the need for additional funding, and building partnerships that can help with the effort. She thanked Bond and Levy Task Force members present in the audience. City Manager Wine invited the DHM Research team,John Horvick and Tony Iaccarino,to the table to present their survey results on police services in general,including test messaging as to whether there was voter support or opposition to a levy. Mr. Horvick surveyed on many issues related to a potential police services levy. The methodology they used is a representative survey including 300 Tigard voters with a margin of error of 5.6 percent. Some figures are off by a percentage due to rounding. Key takeaways from this survey are that voter sentiment remains positive, as it has been in the past, residents are satisfied with public safety and feel safe in Tigard. Support for the levy is lower than where DHM Research would make a recommendation in going forward. Mr. Horvick explained that concerns about housing affordability have weighed down positive sentiments in communities around Oregon. This makes voters more hesitant to approve bonds and applies to all demographic groups. One positive aspect is that community support increased each time they conducted the survey,a total of three times,but never reaching a majority. DHM's surveys tested nine different messages, seven had at least 70 percent support,which demonstrates voters' willingness to support. One popular message focused on staffing shortages and TIGARD CITY COUNCIL MEETING MINUTES—November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 11 of 14 having enough officers available to respond to multiple emergencies. Mr. Horvick stated that other highly-rated messages included more officers to address mental health crises,get advanced training to de-escalate situations and address homeless issues, as well as Safe Routes to School. The strongest opposition messaging relates to housing affordability or the desire not to increase taxes on homeowners, as well as arguing that property taxes are already too high. These are clear messages that could be communicated by an opposition campaign. General perceptions of the City of Tigard improved, but were still below the desired threshold DHM would like to see at this point. After learning more information about the proposed levy, support increased to 43 from 38 percent, whereas opposition dropped from 54 to 51 percent. Another issue that should be considered in terms of timing is that Washington County is also considering a public safety measure. DHM asked voters about both measures on the ballot and 44 percent of respondents said they would still vote yes for the City of Tigard levy. The County measure seems to have very little impact on the success of the Tigard levy. DHM polled voters on having a police facility bond on top of a public services levy and there was 40 percent support (with only 15 percent certain). A majority, 60 percent of respondents, suggested the City should put something—either a bond or a levy—on the ballot.He concluded there was some appetite to have the conversation. One major question is timing and which election cycle would be best. With primaries,there can be a lot of turnout variability due to the closed primary system. Looking at Washington County data from the May 2008 election, there was 63 percent Democrat turnout and only 31 percent Republican turnout. On balance, that would be a 15 percent advantage for Democrats. In other elections, the reverse may be true depending on the issue or race. The May 2020 is hard to predict at this point, but there is likely to be a contested Democratic race for the nomination which may drive increased Democratic turnout. That could be favorable for levy support. Mr. Horvick reviewed several past elections and how similar local levies have fared in other jurisdictions, including trends in voting over the recent past. Some other considerations may be cost sensitivity and lowering the levy rate, alternative packages in the levy, measuring status of opinion on public safety and support for additional funding. Qualitative research with key stakeholders would help the City and Council understand the public perception. Council President Goodhouse asked how the saturation in each precinct was determined and why certain areas were or were not represented in the results. Mr. Horvick stated they look at registered voters and do their best to match the percentages in each area. Council President Goodhouse asked if former voting results would skew the overall results. Mr. Horvick stated they aim to be proportional in the community based on who is registered to vote. They also see vote frequency and were able to determine that those who voted more frequently were also in support of the levy at higher levels. That is, likely voters were more likely to say yes. Mayor Snider said one of the things he noticed was that among more frequent voters, the support levels were above 50 percent. Mr. Horvick confirmed that after a lot of messaging,most frequent voters supported the levy. He clarified that in a primary election, they could expect about 70 percent turnout,whereas in a general election they could expect approximately 85 percent turnout. He thinks the May 2020 election will have particularly high voter turnout that may include many infrequent TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 12 of 14 voters,which could work against the levy.There was discussion regarding which voters to target based on their voting frequency. Councilor Newton referred to the presentation on additional research considerations. She stated that she thinks moving forward is important and her conversations with individuals demonstrate greater support once the police service issues are explained to voters. Councilor Newton said she was interested in doing more polling to see how they could shift messaging to be more compelling. She explained that the public is concerned when they hear that police cannot always respond to multiple emergencies and about the number of officers. She stated the City needs to poll what messages are most compelling. Mr. Horvick affirmed that the data is compelling, but that voters are generally satisfied with the way things are. Mayor Snider said he struggled with running a mayoral campaign by knocking on thousands of doors. Most people were interested in his position on the last levy and in those conversations, people stated they did not support the levy. The feedback he heard was simple—the last levy was too big. If focused on police services,they would have supported the levy. He is not sure what to make of that feedback, since it seems inconsistent with the polling results. Mr. Horvick said that the Mayor knows the community well going door to door allows people to have more expansive conversations. He advised the Mayor and Council to take their experiences with voters as one data point and this survey as another. Councilor Lueb said the explanations were robust and with the current political environment we are in uncharted territory. She suggested there was government fatigue and Council will need to put a lot of thought and discussion in order to contribute to the levy's success because the City needs it. Mayor Snider stated that at a practical level, he doesn't think the City can go on having 40 percent of police shifts in a City of 54,000 with 3 officers. He asked,"If not now, then when?" He said the May election should have favorable voter turnout. The history of Washington County money measures shows a 5.5% higher support in even-year May elections. Council President Goodhouse said it needed to be done now and the City and Council need to get the message right this time. He noted that the previous levy needed only four more percentage points, even with a convoluted ballot title. Mayor Snider said he thought they needed to work on cost sensitivity in the next survey. What is the minimum amount where the City would still achieve the staffing outcomes that are desired? Councilor Anderson said he was surprised and disappointed at the results, because the message could not be clearer and more defined. He anticipated better support and he did not believe having police is a luxury. He said, "We just need to put it on the ballot year after year until it passes." Mr. Horvick commented that many organizations rework ballot titles and go back to voters for a similar reason in subsequent elections. City Manager Wine stated that staff is seeking Council guidance about doing another survey and what they may be interested in knowing. Councilor Newton said she wants to conduct additional polling in December. She asked Mr. Horvick from DHM research what he thought would be most beneficial for the next polling. He advised the City has a good grasp on communications and that future polling should prioritize testing different packages. TIGARD CITY COUNCIL MEETING MINUTES —November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 13 of 14 Council President Goodhouse said he favored taking the Safe Routes to School portion out. He said he is anxious to begin working on ballot titles and testing different wording. Mr. Horvick confirmed it was not unusual to test different language within ballot titles. Councilor Anderson said the bond on a police facility was interesting,but he thinks Council should delay moving forward with it at this time. Council President Goodhouse suggested removing the Safe Routes portion. Mayor Snider said it may depend on conversations next week about cost. 7. EXECUTIVE SESSION None. 8. NON-AGENDA ITEMS None 9. ADJOURNMENT At 8:56 p.m. Council President Goodhouse motioned for adjournment. Councilor Newton seconded the motion. Mayor Snider conducted a vote and the motion passed unanimously. Yes No Councilor Lueb ✓ Councilor Anderson ✓ Mayor Snider ✓ Council President Goodhouse ✓ Councilor Newton ✓ .1 Carol A. Krager, City Recorder Attest: Jason B. Snider,Mayor Date: �-�, d ea-26 TIGARD CITY COUNCIL MEETING MINUTES—November 5, 2019 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 14 of 14