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City Council Packet - 11/13/2012 TIGARD City of Tigard TIGARD CITY COUNCIL BUSINESS MEETING November 13, 2012 COUNCIL MEETING WILL BE TELEVISED I:1Design & Communications\Donna\City Council\ccpktl 13125 SW Hall Blvd. • Tigard, Oregon 97223 • 503.639.4171 TTY Relay: 503.684.2772 • www.tigard- or.gov 4 City of Tigard Tigard Business Meeting—Agenda TIGARD TIGARD CITY COUNCIL AND CITY CENTER DEVELOPMENT AGENCY - Agenda Revised on 11/7/2012 - In the Study Session the Public Contracting Rules will be rescheduled. A City Council Executive Session as added for pending litigation. MEETING DATE AND TIME: November 13, 2012 - 6:30 p.m. Study Session; 7:30 p.m. Business Meeting MEETING LOCATION: City of Tigard - Town Hall - 13125 SW Hall Blvd., Tigard, OR 97223 6:30 PM • STUDY SESSION - TIGARD CITY COUNCIL AND CITY CENTER DEVELOPMENT AGENCY A. Removed from agenda; will be rescheduled. B. City Center Development Agency: Main Street Art/Gateway Update C. Administrative Items: • City Manager Evaluation Input - Tabulated responses will be placed in the Thursday council newsletter mailbag. • Attached is an outline of resource documents assembled for the newly elected officials' orientation. Staff is preparting a notebook with paper copies of the organizational chart, staff directory, City Charter, Council Groundrules and the League of Oregon Cities City Handbook; the remaining documents will be on a flash drive placed within the notebook. Additional notebooks /flash drives will be assembled for council members upon request. • Council Calendar: • November • 20 Tuesday - Council Workshop - 6:30 p.m. • 22 Thursday - Thanksgiving Holiday - City Hall offices closed. • 27 Tuesday - Council Business Meeting - 6:30 p.m. • December • 4 Tuesday - Council Meeting and City Center Development Agency Meeting - 6:30 p.m. • 11 Tuesday - Joint Lake Oswego Council Meeting - 5:30 dinner, 6 -7:30 dinner followed by a Tigard Council Business Meeting - 7:45 p.m. • 18 Tuesday - Council Meeting - Mayor's Farewell reception, Remarks and Blue Ribbon Task Force Report - 6:30 p.m. • 25 Tuesday - Christmas - City Hall office dosed. • EXECUTIVE SESSION: The Tigard City Center Development Agency will go into Executive Session to discuss real property transaction negotiations under ORS 192.660(2)(e) and the Tigard City Council will go into Executive Session to discuss pending litigation with legal counsel under ORS 192.660(2)(h). 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. Study Session - November 13, 2012 Page 1 7:30 PM 1. BUSINESS MEETING - NOVEMBER 13, 2012 A. Call to Order B. Roll Call C. Pledge of Allegiance D. Council Communications & Liaison Reports E. Call to Council and Staff for Non - Agenda Items 2. CITIZEN COMMUNICATION (Two Minutes or Less, Please) 7:35 p.m. - time is estimated A. Follow -up to Previous Citizen Communication B. Tigard High School Student Envoy - Associated Student Body President Megan Risinger (pronounced rice 'n C. Tigard Area Chamber of Commerce D. 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: 7:45 p.m. - time is estimated A. Approve City Council Meeting Minutes for: 1. August 21, 2012 2. August 28, 2012 B. RECEIVE AND FILE: 1. Council Calendar 2. Tentative Agenda C. Receive and File: Hall Boulevard Condition Assessment D. Approve Waiver of Temporary Sign Permit Fees for Tigard Little League - Resolution RESOLUTION NO. 12 -41 - A RESOLUTION WAIVING $108 IN TEMPORARY SIGN PERMIT FEES FOR TIGARD LITTLE LEAGUE • Consent Afenda - Items Removed for Sebarate Discussion: Any items requested to be removed from the Consent Agenda for separate discussion will be considered immediately Or the Council / City Center Development Agency has voted on those items which do not need discussion. Business Meeting - November 13, 2012 Page 1 4. REQUEST FOR PUBLIC INPUT - CITY MANAGER PERFORMANCE REVIEW CRITERIA 7:50 p.m. - time is estimated 5. CONTINUATION FROM OCTOBER 23, 2012, OF PUBLIC HEARING ON URBAN FORESTRY CODE REVISIONS - URBAN FORESTRY CODE REVISION PROJECT - COMPREHENSIVE PLAN AMENDMENT (CPA) 2011 -00004 DEVELOPMENT CODE AMENDMENT (DCA) 2011 -00002 8:00 p.m. - time is estimated 6. COUNCIL LIAISON REPORTS 7. NON AGENDA ITEMS 8. 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 dosed to the public. 9. ADJOURNMENT 9:15 p.m. - time is estimated Business Meeting - November 13, 2012 Page 2 Tigard Mayor and Council Members — Orientation Table of Contents • Roles, Responsibilities and Regulations for Local Elected Officials (Pages 1 -2) • Administrative Support — Human Resources /Finance and Information Services /City Management /City Recorder (Page 3) • Departmental Programs and Issues (Pages 4 -5) ROLES: SUPPLEMENTAL PACKET Policy Maker /Rules of Conduct Resource Documents and Websites: FOR 11 1,3 /avl�. • City Charter (DATE OF MEETING) o Chapter I — Name and Boundaries " o Chapter II — Mayor Council Form — Powers `J u o Chapter III — Form of Government o Chapter IV — Council o Chapter V — Powers and Duties of Officers o Chapter VI — Elections o Chapter VII — Vacancies in Office o Chapter VIII — Ordinances o Chapter IX Public Improvements o Miscellaneous Provisions o Urban Renewal Citizens Right to Vote • Tigard Municipal Code (Titles 1 -17) and Community Development Code (Title 18) (web) Tide 2: o Code of Conduct. o Nominating Procedure. o City Council. o Local Contract Review Board. o City Center Development Agency. • Tigard City Council Groundrules • 2012 Tigard City Council Goals • Council Stipend • Budget Committee (ORS 294.414) o Establishment (LOC City Handbook, Pages 3 -11) • o Oregon Budget Law — LOC City Handbook, Pages 8 -12) • . 2012 City Council Appointment Matrix o City of Tigard Committees o Other Agency Committees 1iPage • City Handbook — Published by the League of Oregon Cities o Chapter 1 — Local Government in Oregon, Page 1 -1 o Chapter 2 — The Legal Powers and Authority of Local Government, Page 2- 2 o Chapter 3 — City Councilorship, Page 3 -1 • What is Policy • Administrative Role of Council • Quorum /Votes • Forms of Council Action: • Ordinances • Quasi Judicial • Resolutions • Motions and Consensus • Administrative Rules and Orders o Administrative Rules also in TMC 1.16.105 (web) o Approved Administrative Rules (web) o Chapter 4 — Ethics and Conflicts of Interest, Page 4 -1 o Chapter 5 — Elections, Page 5 -1 o Chapter 6 — Relations with Other Governments, Page 6 -1 • City of Tigard Council Liaison Appointment Matrix o Chapter 7 — Working with the Public, Page 7 -1 o Chapter 8 — Financial Management and Budgeting, Page 8 -1 o Chapter 9 — Purchasing and Public Contracts, Page 9 -1 o Chapter 10 — Personnel Administration and Labor Relations, Page 10 -1 o Chapter 11 — Risk Management and Insurance, Page 11 -1 o Chapter 12 — Land Use and Development Programs, Page 12 -1 o Chapter 13 — Public Safety and Regulatory Programs, Page 13 -1 o Chapter 14 — Public Works and Utilities — Page 14 -1 o Chapter 15 — Building Regulations, Page 15 -1 o Chapter 16 — Energy, Page 16 -1 o Chapter 17 — Other City Programs, Page 17 -1 • Parks and Recreation • Libraries • Human Services (Social Services) 2 1Page Administrative Support — Employee Orientation Human Resources /Risk I Benefits I Liability Insurance Finance and Information Services ( Stipend Check I Inside Tigard (Intranet — how to access) City Management — Administrative Support Appointment Calendar Budget Preparation Training and Travel Arrangements Business Cards Arrange with HR for Key Card (Badge) City Recorder /Records Meeting Agenda Packet Tentative Agenda Schedule Preparation /Distribution Meeting Logistics (Notices, Room Set Up) City Records Management Email Records Management (For emails received Elections through city email address.) 3 1 Page ■ Departmental Programs and Issues Finance Department Adopted Budget — Fiscal Year 2012 -2013 (web) Citywide Travel /Training Policy Capital Improvement Program FY 2012 -13 Public Contracting Rules (web) City Center Development Agency Budget (web) Most Recent Audit Master Fees and Charges Schedule (web) Audit Committee Local Contract Review Board. Community Development and City Center Development Agency CWS Durham Plant District SW Corridor /High Capacity Transit (web) Goal 10 Housing Plan Update Targeted Improvement Program Main Street Green Street Program (web) Tigard Triangle Tigard Triangle Report Tigard Triangle Transportation /TGM Public Space Planning City Center Development Agency. River Terrace /Area 63 Annexation (web) Saxony Property Acquisition Public Works Parks Master Plan (web) Sustainability Practices /Study Park Bond Report Parks and Recreation Advisory Board (web) Capital Improvement Plan (web) Emergency Management Program (web) Street Maintenance Fee (web) COOP and EOC Water Delivery — Structure. Governance Issues (web) Intergovernmental Water Board (web) LOTWP Agreement LOTWP Agreement — Amendment 1 LOTWP Agreement — Amendment 2 Annual Solid Waste Finance Report Police Department Annual Report (web) Changes in Youth Programs T�ard Youth Advisory Council (web) Commercial Crimes Unit (web) Library Library Strategic Plan (web) Feasibility Study 2012 Annual Survey Results (web) Library Funding (web) Wage Human Resources Staff Directory Inside Tigard Web Page (web) • Employee Resources • Values Program • Departments • Who's Who • Salary Schedules City Management Personnel Policies Citywide Personnel Policies TPOA Agreement (Police Union) SEIU /OPEU Agreement Organizational Chart 51 Page net an. d AIS -1048 i^rN , v 7 l� Business Meeting 01 t / as ` • Meeting Date: 11/13/2012 r Length (in minutes): 30 Minutes C� ��_ Agenda Title: Discuss Public Contracting Rules VV ! VC. Prepared For: Joseph Barrett I , , Submitted By: Joseph Barrett, Financial and Information /V�I� Services Council Business Mtg Item Type: Update, Discussion, Direct Staff Meeting Type: - Study Sess. Public Hearing Newspaper Legal Ad Required ?: No Public Hearing Publication Date in Newspaper: Information ISSUE Public Contracting Rules (PCR) annual update and possible discussion points. STAFF RECOMMENDATION / ACTION REQUEST As a part of the annual update, staff is seeking direction and input on possible changes to the Purchasing and Contracting Rules. KEY FACTS AND INFORMATION SUMMARY The City needs to revise its Public Contracting Rules (PCRs) to include a key change to Oregon Revised Statute (ORS) 279C. Since the City last updated our PCRs, a change to the way public agencies solicit certain classes of professional services went into effect and the city is a bit behind in getting the change into our Public Contracting Rules (Rules.) The required change involves qualification based solicitations (QBS) and requires the city to use this process when hiring professional services such as: • Architects, • Engineers, • Transportation Planners, • Land Surveyors, and • Others as listed in ORS 279C.100 The QBS process requires the selection of the top qualified firms be made by criteria other than price. The city may use a firm's experience, project management approach, project team member qualifications, local expertise, or other criteria so long as it's not price, in determining the top qualified firm for the work. Only after this determination has been made and the proposers ranked may the city enter into price negotiations with the top ranked firm. If an agreement cannot be made for the cost, the city may move on to the second most qualified firm and so on until an agreement is reached. While the city is required to include this in the Rules there is room to determine the exact makeup of the policy which staff is hoping to get the LCRB's direction on how that process should look. The need to include the QBS provisions into the city's Rules also affords the opportunity to look at other potential revisions to the Rules, ones that may help clarify a policy's intent or streamline a segment of the Rules or a process. The attached matrix lists these potential changes. The list was developed using a committee of city staff and was has been reviewed by the City Attorney's Office. Based upon the review the list was pared down to remove suggestions with negative legal concerns. OTHER ALTERNATIVES The Local Contract Review Board could decide to not discuss these topics during study session and direct staff to bring them forward during a business meeting as a revised version of the Public Contracting Rules. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION The current Public Contracting Rules were adopted in September 2011. Attachments Possible Topics for PCR Revisions Matrix TIGARD'S PUBLIC CONTRACTING RULES — REVISION TOPICS — NOVEMBER 13, 2012 STUDY SESSION RULE LCRB DIRECTION REQUEST /DETAILS IMPACT OF REVISION SECTION Qualification Staff will be asking the LCRB to adopt a This revision will have a significant impact on how the city 70.000 Based Qualification Based Selection (QBS) policy as solicits for certain classes of professional services including: This isn't Selection required by state included in the (QBS) • Architects, PCRs yet but The city needs to include the QBS process in its • Engineers, it will go under Public Contracting Rules as mandated by ORS 279. • Transportation Planners, Section 70.000 This was passed by the 2011 legislature and became • Photogrammetrists, — Personal effective in January 2012. The city was waiting for • Land Surveying, and Services the Attorney General's public contracts manual to • Others Contracts come out before taking action but the AG will not produce revised model rules this year. Thus, the city The QBS process does not allow for price as a criteria in the should initiate its own changes to come into selection of a consultant... qualifications for the work are compliance with the new selection process. determining factor. After determining the most qualified consultant the city would then negotiate a price. If the parties could not come to acceptable terms, the city could open discussions with the second most qualified consultant. Staff will also need to solicit for, and maintain, a qualified list of vendors to select from for intermediate level projects. This will limit those able to work on the project to those that are on the qualified list. Sustainable Is the LCRB interested in a clause that encourages Inclusion of this clause will likely have an impact on the city's 90.000 or "Green" the city to purchase sustainable or "green" products contracting and purchasing practices. Staff would be required This isn't in Purchases whenever financially or operationally feasible? to afford some diligence in ensuring good faith effort to utilize the PCRs. If sustainable products. A rule like this would require defining included, it terms such as "financially feasible" or "operationally feasible." would Without such development, how this rule is implemented naturally fit in throughout the city would likely vary to a large degree. with Section 90.000 — Recyclable/Re cycling Purchasing Guideline with a slight title change. Page 1 TIGARD'S PUBLIC CONTRACTING RULES — REVISION TOPICS — NOVEMBER 13, 2012 STUDY SESSION RULE LCRB DIRECTION REQUEST /DETAILS IMPACT OF REVISION SECTION Exemption Is the LCRB interested in including an exemption As the city is truly purchasing the services of the assigned 10.000 for from competitive bidding /proposal for contracts temporary employee more than the temp service itself, it may Similar Temporary with temporary personnel agencies? help expedite the process by waiving the three quote exemptions Personnel requirement. Staff typically asks to review resumes from a exist for Services temporary firm and conducts either phone or face -to -face advertising, interviews prior to final selection. This exemption would ammunition, essentially view the candidates as the proposers rather than the software, and temporary agency. others. Intergovemm • Is the LCRB interested in a more definitive The purpose of including any of the revision in the PCRs is to 100.00 ental definition regarding if the City Manager (or help clarify the IGA process for staff, Agreements designee) can sign for any IGA under the (IGAs) delegated signature authority (currently $100,000) It is worth noting that IGAs are not considered true public as with other forms of contracts. contracts as there are political aspects to IGAs that are not part of the public interest protecting in public contracting. As such • Is the LCRB interested in include definitions that the possibility of obtaining procedures and rules for IGA (and draw distinction between IGA, Memorandum of other forms of agreements with public agencies) may be made Understanding (MOU), and Cooperative outside of the Public Contracting Rules... similar to how the Improvement Agreements (CIA) in the public city's Travel Policy or the Property Acquisition Workbook contracting rules? were implemented. • Is the LCRB interested in the public contracting rules defining a policy for MOUs and CIAs that is different that the IGA policy, specifically related to who approves each type of agreement? Surplus Is the LCRB interested in clarifying the disposal Certain areas of the current public contracting rules define as 60.000 threshold levels for surplus property, specifically per item where others are silent. On the purchasing of good regarding a per piece /lot definition ?. side, it is clearly defined "per lot." Staff recommends surplus follow the same definitions as a purchase. The inclusion of such a revision may have impact on the methods the city uses to dispose of various pieces of surplus property. Page 2 TIGARD'S PUBLIC CONTRACTING RULES — REVISION TOPICS — NOVEMBER 13, 2012 STUDY SESSION RULE LCRB DIRECTION REQUEST /DETAILS IMPACT OF REVISION SECTION Amendments Would the LCRB be open to an increase in the current Raising the threshold in which original contract amounts may be 10.015(F), 25% of the original agreement threshold for amended without LCRB approval could help gain efficiencies for 10.075, and amendments? staff. It would also likely reduce the amount of contract 70.020 amendments that are brought before the LCRB. Page 3 AIS -1072 B. Business Meeting Meeting Date: 11/13/2012 Length (in minutes): 5 Minutes Agenda Title: Main Street Art/Gateway Update Submitted By: Sean Farrelly, Community Development City Center Development Item Type: Update, Discussion, Direct Staff Meeting Type: Agency Public Hearing: No Publication Date: Information ISSUE Clarify desired design elements for the Main Street gateways /public art sites. STAFF RECOMMENDATION / ACTION REQUEST The board of the CCDA is requested to provide feedback to staff on Main Street public art and gateway features. One clarification is requested from the Board. Is it the expectation of the Board that stone columns and walls, similar in scale to what was built on the corner of Burnham and Hall, be constructed at the Main Street gateways - or should the artwork be the focus? KEY FACTS AND INFORMATION SUMMARY At the March 6, 2012 meeting the CCDA Board accepted the recommendation of the CCAC Public Art Subcommittee to concentrate public art resources at the northeastern and southwestern gateways to Main Street. Gateway treatments were recommended in the Tigard Downtown Streetscape Plan. The art would be of large enough scale to mark the entrances to Downtown to passing motorists while also be engaging at the pedestrian scale. Since this meeting an Intergovernmental Agreement with ODOT has been signed to allow work to be undertaken on the gateway sites (which are technically ODOT right -of -way.) The subcommittee, with CCDA liaison Henderson has worked with public art consultant Valerie Otani on developing criteria for a Request for Proposals and reviewing submittals. The subcommittee anticipates interviewing three finalists in late November /early December. The committee /consultant will continue to work with the selected artist in finalizing a site specific proposal. Regarding the guidance requested from the Board about the balance of stone work and artwork, there are several alternatives. One possible course of action is that the design of the larger gateway sites be deferred until the artwork proposal is finalized. The artwork and the design of the site could be integrated, perhaps with smaller scale walls, utilizing the same type of stone as in the Burnham /Hall gateway. The stone could be the unifying element for the downtown gateways. OTHER ALTERNATIVES The Board of the CCDA can suggest staff to pursue other options for the sites. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Tigard Downtown Streetscape Design Plan Council Goal 3: Downtown DATES OF PREVIOUS COUNCIL CONSIDERATION March 6, 2012 Fiscal Impact Fiscal Information: The FY 2012 -13 CCDA budget included line item for $60,000 for Gateways and $60,000 for Main Street Streetscape (including art). $60,000 has been set as the budget for the gateway public art using the Main Street Streetscape project budget. The gateways will be designed this fiscal year, but not likely built until FY 2013 -14. The cost of the design will depend on CCDA Board direction as to the scale of the gateway. ■ City Council Meeting — November 13, 2012 SUPPLEMENTAL PACKET Tigard Representative: Megan Risinger FOR / 3 /a D/a (DATE OF MEETING) Past: • Breast Cancer Awareness Week: Oct. 21 -27 • Halloween Rooms: October 31 Clubs /Leadership decorate rooms and host activities for Tigard's youth to have a fun and warm Halloween alternative to trick -o- treating in the dark. • Veteran's Day Memorial Breakfast /Assembly: November 2 Leadership Activities Committee invites veterans to breakfast and then there was an assembly to honor the veterans and talk about their sacrifice. Speakers were student Courtney Bither and teacher Steve Fulton. Present: • No school November: Students are looking forward to the many days of no school this month. • Winter Sports Start: Winter sports like girls and boy's basketball, swimming, wrestling, ski team and the snowboarding teams have started practice Future: • Tigard High School Canned Food Drive: December 1— 21 Tigard Leadership is having a Hunger Games themed canned food drive that involves class competitions and a community drive to collect cans for Tigard's Loaves and Fishes. UP COM1 NG EVENTS GoodAirig Tigard (G ess Networking — 7 :30- 9:OOam - FREE • 11/15/12 —Game Time SUPPLEMENTAL PACKET • 17880 SW McEwan Rd Lake Oswego, OR 97035 FOR j l /o)/ Ql? / a • (503) 726 -4263 • 11/22/12 - NO GMT — Thanksgiving Day (DATE OF MEETING) • 11/29/12 - Tigard Area Farmers Market & Youngs Funeral Home • Hosted at the Young's Location —11831 SW Pacific Hwy Tigard, OR 97223 • (503) 639 -1206 • 12/6/12 — Becoming You Hypnosis • Hosted at Broadway Rose Theatre - 12850 SW Grant Ave. Tigard, OR 97223 (503) 620- 5262 • 12/13/12 — HomeStreet Bank • 16200 SW Pacific Hwy. #Z -3 Tigard, OR 97224 • (503) 968 -2200 • 12/20 & 12/27 — NO GMT — Christmas Holiday • 1/3/13 — NO GMT — New Year's Holiday • 1/10/13 — TACC Hosting • Upstairs Pearson Community Room 12345 SW Main St Tigard, OR 97223 ▪ 1/17/13 — Urgent Care King City • 11820 SW King James PI Suite 30 King City, OR 97224 • (503) 625 -4100 • 1/24/13 — Core Chiropractic • 9735 SW Shady Ln #303 Tigard, OR 97223 • (503) 684 -1273 • 1/31/13 — Burgerville • Either at their location or at TACC - TBD Other Chamber Events Lunch Local — No Host Lunch, 2 & 4 Wed of each month 11:45 a.m. to 1 p.m. • November 14 Thirsty Lion • November 28 Bridge City Cafe • December 12 Wu's Open Kitchen 1/2/13 — Tigard Young Professionals first Networking event - 6 -8pm Location TBD Tigard's Third Tuesday, After Hours — 01/15/13 @ Becoming You Hypnosis & Tao of Touch — 5:00 — 6:30 pm —9725 SW Beaverton - Hillsdale Hwy Suite 210 -E Beaverton, OR 97005 For more about these and other events, go to http : / /business.tigardchamber.org /events /calendar/ To sign up for our newsletter, e-mail info @tigardchamber.org and put newsletter in the subject line Find us on Facebook & Twitter at tigardchamber and Linkedln Group and Company Tigard Chamber !GARD AREA © tin ti Find us on Facebook ` MM; Wh ere Business Soars! .... 40 , !!. . ... . ,L0 4-A J 1L...4 H . • rt ill • 0 C � �- ci • 1 -4 (:), r—il o H • v—i 4 10 ,4 4 - h U f li i i: s H • 1 -4 N., 4 ,E U (ti' o 0 C..) 0 o tn C w "im X 1 ) 0 ciD M t . . , ` cam, o 1Y--1 ctt CA • • .-I v +,, a oo d __. . i : ... �' 4A (1) c v) o • AGENDA ITEM NO. 2 -D CITIZEN COMMUNICATION DATE: November 13, 2012 (Limited to 2 minutes or less, please) The Council wishes to hear from you on other issues not 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 of persons 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: T (. Also, please spell your name as it sounds, if it will '" L- 6- I S T U 2 'S pU D ti help the presiding officer pronounce: � G GE u y . M lrvr t o r, LICE Address 1 S &'D S.U.'. I a 1, r /4 t, VC L A-R 13 0 A) City / G l4 0-1) State e) 6 Zip q t' / U X t 0 Phone No. S 3 & 3 1 6,5 4-5 Name: Also, please spell your name as it sounds, if it will help the presiding officer pronounce: Address City State Zip Phone No. Name: Also, please spell your name as it sounds, if it will help the presiding officer pronounce: Address City State Zip Phone No. CITIZEN COMMUNICATION CA - cr - Ovv - SUPPLEMENTAL PACKET c • C r' ro ai FOR I I / /3 /JJ � .a t Lis c om (DATE OF MEETING) A BRIEF SYNOPSIS OF THE CASCADE POLICY INSTITUTE REPORT ON OREGON'S PROPOSED CO2 EMISSION REDUCTION 1. Page 1 of the report provides a detailed summary of the economic analysis. 2. Cap and trade for pollutants is not part of this analysis. This analysis addresses greenhouse gas which is primarily water vapor and a small amount of carbon dioxide (CO2). 3. Beginning on page 6, Section 5, the relationships cited are from the Organization for Economic Co- operation and Development (OECD). OECD is an international organization of thirty of the world's most advanced countries. A. A 1% increase in energy use is associated with a 1% increase in national income (page 6). B. A 1% increase in CO2 emissions is associated with a 0.71% increase in national income. The reverse is also true (page 7). C. The proposed HB 3543 calls for a 10% reduction in CO2 emissions below 1990 level by 2020. This means a 15% reduction below today's level resulting in an approximate 11% decrease in income (0.71 x 15). D. Reducing the 2020 CO2 emission levels below the 1990 baseline level needs to be adjusted for the projected population growth. It would be a 2020 CO2 emissions reduction of 40.7% for a 28.9% (0.71 x 40.7) reduction in GDP /capita below 1990 baseline (page 11). E. The 2020 state and local revenues per capita is projected to be $7,780. Under the proposed CO2 reduction goal, it would be $6,790 (page 12) 4. The WCI expects technological advancements to compensate for restrictions in carbon emissions. However, the reduced private income and wealth may inhibit the needed changes (page 9). 5. The eleven minute DVD, Unstoppable Solar Cycles, clearly shows solar radiation is the primary driver of atmospheric temperature. T c-ce 42_ i Mr, C r'i n� c rn Cascade Policy �" ns o cG� Institute 11 1 13 1v1- 4850 SW Scholls Ferry Road Suite 103 SUPPLEMENTAL PACKET Portland, Oregon 97225 FOR i ///3 /aoi7 t: 503.242.0900 f: 503.242.3822 (DATE OF MEETING) Info @cascadepolicy.org www.cascadepolicy.org Oregon Greenhouse Gas Reduction Policies: The Economic and Fiscal Impact Challenges Peepared foe the Cascade Policy Institute September 7008 QuantEcon, Inc. QuantEcon, Inc. PO Box 280 Manzanita, Oregon 97130 Phone 503.368.4604 E -Fax 503.296.5495 Email RPOZDENA @QUANTECON.COM This paper was prepared under a contract between the Cascade Policy Institute and QuantEcon, Inc., Randall J. Pozdena, PhD, President. The paper was co- authored by Eric Fruits, PhD, President of Economics International, under subcontract to QuantEcon, Inc. C a s c a d e Policy I n s t i t u t e Oren ci Greei ho.ise GZs Redt cticn Policies: l he Economic and Fiscal Impact. Challences Contents 1 Executive summary and conclusions 1 2 Introduction 2 3 Oregon's emissions goals 2 4 Cap- and -trade programs 3 The logic of cap- and -trade programs 3 The experience with cap- and -trade 3 Volatile organic materials (Chicago area) 4 Nitrogen oxides and sulfur oxides (Southern California) 5 Sulfur dioxide (multi- state) 5 Nitrogen oxides (multi- state) 5 Carbon dioxide (EU) 5 5 The relationship among dioxide emissions, energy consumption, and economic activity 6 Causation Evidence 7 6 Technology to the rescue? 8 7 The economic and fiscal impacts of Oregon's greenhouse gas reduction goals 10 Baseline forecasts of greenhouse gas emissions, employment, income, and state and local government revenues 10 Greenhouse gas emissions 10 Gross domestic product 10 Employment 11 State and local government revenues 11 Oregon's greenhouse gas reduction goals relative to the baseline 11 Impacts on state income 11 Impacts on state employment 12 Impacts of Oregon's greenhouse gas reduction goals on state and local government revenues 12 8 Alternative carbon dioxide emissions management options 13 Carbon tax 13 Technology acceleration 14 Pricing of emissions 14 Subsidy of new technology adoptions 14 Subsidy of basic research 15 Congestion Pricing 15 Endnotes 16 Sources. 16 Cascade Policy Institute ;! •eco ~1 Greer' o.ise Redcctiol Policies: I it Economic and I iscal :es Figures Figure 1: Sensitivity of a Portland temperature trend and forecast model to order assumptions, 1871 -2012 2 Figure 2: Oregon per capita greenhouse gas emissions, baseline and goals 1990 -2025 3 Figure 3: Relationship between per person energy consumption and national income, by country, 1980 -2004 7 Figure 4: Relationship between per person energy consumption and carbon dioxide emissions, by country, 1980 -2004 7 Figure 5: Relationship between per person carbon dioxide emissions and national income, by country, 1980 -2004 8 Figure 6: Oregon actual and forecast gross domestic product per person, baseline and greenhouse gas emissions reduction goal, 1990 -2025 11 Figure 7: Oregon actual and forecast gross domestic product, baseline and greenhouse gas emissions reduction goal, 1990 -2025 11 Figure 8: Oregon actual and forecast employment, baseline and greenhouse gas emissions reduction goal, 1990 -2025 12 Figure 9: Oregon actual and forecast state and local government own source revenues, baseline and greenhouse gas emissions reduction goal, 1990 -2025 12 Figure 10: Oregon actual and forecast state and local government own source revenues per capita, baseline and greenhouse gas emissions reduction goal, 1990 -2025 12 Tables Table 1: Regressions of gross domestic product, energy consumption, and carbon dioxide emissions, country cross - section, natural logarithms, 2003 7 Table 2: Regressions of gross domestic product, employment, and state and local government own source revenues, natural logarithms 10 Table 3: Summary of energy- economy causation research 15 Cascade Polio Institute Greet I oJEe G Redtctio:s folicies: ile Fcoho.liicand 1 i c..I 1'17Cltxcf CIc5IIer • 1. Executive summary and • Economic vitality, energy use and carbon dioxide emissions have been tightly cointegrated historically, conclusions and energy strongly "causes" economic vitality. This is true both in studies over time and across countries. Of Policy initiatives to regulate greenhouse gas emissions are fast the OECD countries that display lower than average becoming a dominant feature of regional public policy. The energy use relative to their economies, all have initiatives commonly involve setting goals to reduce emissions embraced nuclear power — a source that historically has below a baseline or business -as -usual level. The Western been "off -the- table" in Oregon. Climate Initiative is one such program, and has been subscribed to by Oregon and 10 other western states and provinces. • Energy consumption and technology choices are Specifically, the WCI identifies emissions reduction targets and strongly embedded in long -lived capital. This raises identifies cap- and -trade mechanisms as a way to achieve theoretical and practical obstacles to the economic emissions reduction targets. development and adoption of carbon sparing technology. In addition, because of the existing carbon - From an economics perspective, the initiatives ideally should intensity of the production of capital goods, too -rapid strike the optimal balance between sacrifices that must be made turnover of existing capital may actually accelerate in the near term and the benefits of avoiding future depression of atmospheric carbon accumulation. economic well -being due to climate change. Unfortunately, the projections of future climate change are highly uncertain,' and • Absent adoption of silver - bullet, low cost /high the associated future economic benefits more uncertain still. effectiveness technological innovations, the cost to the Consequently, this paper does not engage that debate. Rather, it Oregon economy of meeting the WCI emissions curtail - focuses on measurement of the short-run costs of certain, ment goal are large. Oregon's economic growth to 2020 proposed aspects of the WCI, as we understand the Initiative would be approximately cut in half, and gross output per today. Although only half of the equation, it is important to capita would be reduced by 20 percent relative to the discuss what these costs may be, and what factors and policies baseline case. might best mitigate these costs. • State and local revenues would be reduced by about 13 The paper first describes the nature of the WCI emissions goals percent, relative to the baseline case. and the cap- and -trade policy approach that is part of the Initiative. The paper then goes on to conduct an empirical • The measured impacts do not incorporate any dead - investigation of the relationships among economic output, weight losses imposed on the economy by inopportune energy use and carbon dioxide emissions, and the links to the technology - picking, subsidy schemes, misallocation of State's economic and fiscal condition. energy permit or tax revenues, and administrative overhead in both the public and private economies. The main findings of this paper are as follows: • Both cap- and -trade and carbon tax policies have • The notion of capping emissions and providing market theoretical justification, but implementation issues risk signals through a cap- and -trade scheme is not imposing costs greater than their benefits. Similarly, conceptually unreasonable or without precedent. subsidizing accelerated adoption of energy- sparing technologies is of dubious net value when the risks of • The WCI's empirical underpinnings are not picking losers, instead of winners, is considered. transparently documented, making it difficult to Acceleration of the wrong technologies may actually evaluate whether the proposed trajectory of emissions aggravate atmospheric carbon levels. reductions is at, below, or above a trajectory that optimally balances near -term costs against future • One policy that offers both economic benefits and benefits. carbon - emissions reductions is implementation of congestion pricing. Implementation of this policy • The cap- and -trade mechanism has a history of resolves a pricing error on the highway system that implementation difficulties. This is due to the wastes valuable time and fuel, and distorts land use and vulnerability of the caps and permit allocations to highway investment decisions — all to the disbenefit of political influence and the tendency of permit values to the economy. Congestion pricing, by correcting this be highly volatile — even in relatively flexible pricing error, thus is a carbon policy option that, perhaps compliance settings. In the Oregon context, in which the uniquely, actually strengthens the economy while help - portfolio of politically - acceptable, alternative energy ing resolve carbon emissions problems associated with sources is constrained, and the non - carbon technology excess congestion, travel, and stop- and -go vehicle use. options undeveloped, these problems may be aggravated. From an economist's viewpoint, one intervenes in market processes only with great caution and an abundance of good Cascade Policy Institute Qe'c ',IetiI,._i«t, kH ;Itct:_ IeF col c, nicaxl Ic(01 Ito), Ilerue� homework. As the recent experience with ethanol subsidy policy Oregon is a key state for such an analysis because the State is a suggests, the effects of well- meaning, but ill- conceived leader in climate change legislation. Indeed, Oregon has adopted interventions can be costly. These authors believe that the one of the most ambitious greenhouse gas emissions reduction benefits and costs of policy should be carefully calculated before goals in the world. However well- intentioned, such policies imposing what otherwise will be a significant economic burden come with challenges in implementation and risks regarding on economic activity. their effect. This study reviews extant research and conducts original research. It focuses almost exclusively on carbon dioxide emissions, since the associated use of fossil fuels seems 2. 1 n tro d u c ti o n the greatest challenge at this time. The research is adapted to the Oregon context wherever possible, but necessarily relies on national and international studies. One of the fast - growing policy drivers in Oregon (and many other states) is climate change legislation. At the request of The benefits of reduced emissions could include avoided Cascade Policy Institute, the authors evaluate Oregon policy economic damage that may result from changing climate initiatives to regulate of greenhouse gas emissions. The goal of conditions. On the other hand, actions to address climate change the evaluation is to estimate the challenge climate control would impose costs because most emissions stern from the initiatives pose in the form of economic and fiscal effects that combustion of fossil fuels, which constitute the majority of the may need to be offset by the benefits of climate policy. This nation's energy supply. This study focuses on the potential costs information is provided to help inform the public and policy of Oregon's greenhouse gas emissions reduction goals. makers of the potential costs of these initiatives, to identify the potential stumbling blocks and help benchmark the scale of the The focus on potential costs is not because we are uninterested in benefits climate policy itself must bring. the benefits of a reduced carbon dioxide burden in the atmosphere. Rather, amongst economists there is greater Policy makers in several states have concluded that global potential to accurately measure costs associated with reduced warming is a crisis, that the human use of fossil fuels is the fossil fuel energy use than the benefits. Indeed, in 2008, the primary cause of such warming, and that state or regional policies GAO surveyed 18 expert economists on the potential costs and must be enacted to stabilize the global climate. The authors do benefits of various climate policy options (United States not challenge this conclusion here. We would only note that the Government Accountability Office, 2008). Overall, the panel types of models used to reach these conclusions are sensitive to rated estimates of costs as more useful than estimates of benefits specifications and assumptions. (A simple example of this for informing congressional decision making. Some panelists sensitivity is presented in Figure 1.) This report focuses on the indicated that uncertainties associated with the future impacts of economic and fiscal impacts of state climate change policies climate change as limitations to estimating benefits. Stavins et al. rather than on potential climate change itself or issues of (2007) independently find that most studies tend to forecasting this change. Some of the policies under consideration underestimate costs of emission reduction programs and by states will affect their economic performance and fiscal overstate benefits. Thus, the greatest challenge of climate policy solvency. may be avoiding making matters worse. FIGURE 1 Sensitivity of a Portland temperature trend and forecast model to order assumptions, 1871 -2012 3. Oregon's emissions goals 5! To be fair, Oregon's climate policies are not yet fully articulated. 5l• I I For purposes of benchmarking Oregon policy, therefore, we 56. assume the State's commitment to the Western Climate Initiative 55. ( 1,. I. (WCI) characterizes the broad features of Oregon's climate I , li .., -•, policy. i , .nllWhr_ .,,uuu.rw•o" 53 . 1 ' 1 II 1 The Western Climate Initiative is a collaboration of 11 American 5 states and Canadian provinces. Oregon was one of the founding 5t. ' states and is a full partner in the Initiative. The Initiative was — Menge AelW TTemperature I formed to develop regional strategies to address potential climate 50. —Llnar trend 0. _ change. Even though each partner sets its own emissions goals, through the Initiative, the partners set an overall regional goal for '°' a a $ $ reducing greenhouse gas emissions. In July 2008, the partners ..,, issued a draft design of the regional cap- and -trade program Somme ""°'" °°" (Western Climate Initiative, 2008). Figure 1 shows actual, historical temperatures for Portland, Oregon, and various time - series fitted trends and associated forecasts. The trends and forecasts vary only by the degree of the assumed polynomial form, yet the forecast implications are very different. This study assumes that Oregon's climate policy embraces at Ci•:ade Police Institute Oe:eiCi Io.ISeC- Retlt 'c:li_ie: Iel- •,ci , tit) It, II 1,), , tllel.e�. least two, key features of the WCI: 4. Cap - and -trade programs I. 2020 Reduction Goal. By 2020, Oregon aims to achieve greenhouse gas emissions that are 10 percent below A cap- and -trade scheme is only one of many policy options to 1990 levels.' By 2050, Oregon's goal is to achieve reduce greenhouse gas emissions. It is outside of the scope of this greenhouse gas emissions that are 75 percent below study to evaluate all of the policy alternatives. Section 8, 1990 levels. The Western Climate Initiative regional however, discusses selected, other policies and their relationship greenhouse gas emission reduction goal is an aggregate to cap- and -trade programs. reduction of 15 percent below 2005 levels by 2020 (Western Climate Initiative, 2007). Figure 2 shows that The logic of cap- and -trade programs the Oregon goal represents a 40 percent reduction from 2008 levels in emissions per person. The Western Conceptually, cap- and -trade schemes create a market in Climate Initiative goal represents a 30 percent reduction emissions. Economists have long argued that environmental from 2008 levels. problems exist precisely because government has failed to create markets that individuals are inherently powerless to create. In 2. Focus on cap and - trade. A focus on cap- and -trade contrast to the more commonly used regulatory compulsion schemes as a way to insert market incentives to conserve approach (a form of so- called command and control), pricing energy or switch fuels, or end -use technologies. schemes have lower societal costs. This is because those able to reduce emissions at the lowest cost are automatically encouraged to do so, whereas a pure regulatory scheme cannot make this FIGURE 2 differentiation and thereby imposes larger, dead - weight losses on the economy. Also unlike a pure, regulatory approach, cap -and- Oregon per capita greenhouse gas emissions, trade schemes generate revenue, which remains in the economy baseline and goals, 1990 -2025 as a partial offset to the economic losses associated with adjusting equipment or business practices. For these reasons, 25.0. virtually all economists support market -based solutions to ?0 , environmental problems. " °' '91*"' 2°' MM` The basic operation of cap- and -trade program is relatively 190- straightforward. The program "caps" total emissions at some WO • 1 t7 arbitrary level and then issues permits, each of which allows a '°°°'°"" certain amount of emissions. The initial endowment of permits 0 ' 15O 4 o ' conceptually should total no more than the cap. The initial most distribuo tithe on of perm its have permits may been require issued for their free purchaseto emitters , or may based be „°, distributed without initial cost. In all the programs to -date, all or ,2, WT on °° GMG from their past emissions. 2008 WMs 7.0 • 5.°, If a facility wishes to emit more than its endowed permits allow, the facility must purchase permits in the market. Sellers would be those facilities that emit less than their permits allow either 6a.tM fawnw'..Mary O..i9POOP . •iw.1209EI ORS MOA AS NOS ROMM1 because they have low cost ways of reducing emissions or reduce their products' output or choose to go out of business. The interaction of buyers and sellers yields a price for the emissions that clears the market for permits. We do not know the origin of the 2020 Reduction Goal. As professional economists, we are reflexively suspicious of the To the extent the permits have value, they provide an incentive to seeming precision by which such goals are stated. Given the invest in mitigation technologies to reduce emissions. The uncertainties involved, it is highly unlikely that the goal capital costs of the investments would be offset by the value of represents an accurately optimized net - benefit goal or climate permits that could be sold in the market. Over time the traded management trajectory. Nonetheless, we take the goal as given price of permits may rise or fall (under a fixed cap) depending since our focus is on the costs, rather than the benefits, of climate upon the comparative trends in the need to emit versus trends in policy. emissions abatement options. We turn first to a discussion of the cap- and -trade scheme before The experience with cap - and -trade proceeding to the measurement of the impacts of Oregon's adopted goal, and the issues that are on the critical path to avoiding these costs. In practice, with a few exceptions, cap- and -trade schemes have not been effective in reducing emissions — mainly C a s c a d e P o l i c e I n , t i t u t e F _ : . i , i � e 1 l ".ce � < s h e ; i t c t 1 ' " 1i c i e : I e i i i c 1 I 1 cn,,; (_.I �Iler:e� because of implementation issues. A number of implementation abatement is possible except by reducing output. Oregon problems plague cap- and -trade schemes: is not alone in this. 1. Political factors. The allocation of the initial Ellerman and Buchner (2007) indicate that the endowment of permits has often been plagued by special perception of limited or costly abatement seems to have exemptions, political favoritism and (understandable) influenced both the ambition of the caps set in the EU push -back by the industry(s) subject to the caps and Emissions Trading Scheme and several of the allocation adjustments to the caps. This has resulted in over- choices. Even without a binding cap, emissions allotment of permits in almost every program. The result reduction programs have a small, negative net economic is that such programs do not impose binding caps. impact. It is due to the deadweight loss associated with Permits, in turn, trade for nominal, low values. administering the program and distributional costs. Binding caps, on the other hand, in a limited abatement 2. Price volatility. In the real world, industries and firms setting, can have significant economic impacts as regularly face volatility in their business activity. Spikes production costs increase and are passed through to or depressions in activity are hard to accommodate with households, businesses, and state and local a permit scheme. Permits are, essentially, assets, governments. analogous to stocks in that the buyer and seller must formulate expectations about their value far into the 5. Misallocating the revenues generated. Orszag (2008) future. In a volatile world, permits — like stocks — are suggests that the cost to the economy of an emissions subject to sharp price movements with actual or reduction goal might be half as large if policymakers expected changes in economic conditions. Orszag sold the allowances and used the revenue to lower (2008) testified that experience with cap -and -trade current taxes on capital that discourage economic programs have revealed this high price volatility. Indeed, activity. These tax reductions would be instead of giving Nordhaus (2007) found that the price of sulfur dioxide the allowances away to energy suppliers and energy - allowances under the U.S. Acid Rain Program was intensive firms or using the auction proceeds to reduce significantly more volatile than stock prices between the costs that the policy could impose on low- income 1995 and 2006. households. He warns, however, that using the allowances value to lower the total economic cost could 3. High administrative costs. Monitoring emissions exacerbate the regressivity of the cap- and -trade directly is costly in many settings. It is one thing to put program. monitors on a relatively small number of utilities' smokestacks. It is quite another to do so with motor It is worthwhile summarizing the effects of existing cap -and- vehicles, livestock, or individual businesses. Yet the trade schemes to evaluated the significance of these challenges. potential for substitution across capped versus uncapped entities (across geographic boundaries, types of firms, Volatile organic materials (Chicago area) etc.) may defeat the cap, or even breach the cap more than would have been the case without the cap- and -trade The Emissions Reduction Market System ( "ERMS ") is a cap - scheme. and -trade emissions trading program operating in the Chicago area. The first permits were issued in 2000. Illinois was mandated 4. Differences in abatement potential. Some gases are to reduce volatile organic materials ( "VOM ") emissions by 3 more amenable to cap- and -trade programs than others. percent a year through 2007. Stavins (1998) observes that the number and diversity of sources of carbon dioxide emissions due to fossil fuel Even though emissions have been declined while the program combustion are much greater than in the case of sulfur has been operating, Kosobud et al. (2004) and Evans and Kruger dioxide emissions. Ellerman and Buchner (2007) (2006) conclude that the Chicago VOM trading system has been explain that there is a widely shared perception that the ineffective because of an over - allotment of permits. Evans and main difference between carbon dioxide and Kruger (2006) attribute the over - allotment to three factors: (1) a conventional pollutants — such as sulfur dioxide — is the baseline process /formula that inflated the cap; (2) federal and abatement potential. For example, scrubbers were a state regulations mandating emissions reductions that rendered demonstrated technology when the U.S. sulfur dioxide the market redundant; and (3) economic losses due to numerous system was implemented. Moreover, substitution facility shutdowns. Kosobud (2007) finds that while emissions among coals of widely varying sulfur content was were reduced below benchmark, reductions cannot be attributed possible at the time. In contrast, for carbon dioxide to the cap- and -trade program. Instead, traditional regulations and associated with electricity generation or transportation, mandated emissions reductions drove down emissions (at an the extant opportunities for abatement potential are unknown cost in lost business activity) below allotments. This limited. In Oregon, for example, little coal is used and resulted in a surplus of permits, making the cap- and -trade additional hydroelectric and new nuclear power are program redundant and ineffective. widely perceived as off -the- table. Hence, very little 4 Cascade P0.1, v Institute 0 ec of Greet l 6 s 1-tecit Policies: i e Economic anti E i cai 1-t e ct h� tier, es Nitrogen oxides and sulfur oxides (Southern California) sulfur content of fuels. In this way the available scrubbing and fuel- switching were both feasible options. The Regional Clean Air Incentives Market ( "RECLAIM ") is a cap- and -trade emissions trading program operating in Southern 2. Monitoring was relatively straightforward. The major California. The program began in 1994. Under the program, emitters in the sulfur dioxide market were coal burning polluting facilities are required to cut their emissions of nitrogen electric utilities. For these utilities there were reliable oxides and sulfur oxides. The system was designed to reduce continuous electronic monitoring sensors in emissions of nitrogen oxides by 70 percent from 1994 to 2003. smokestacks to record emission volumes. The EPA Emissions of sulfur oxides were to be reduced by 60 percent. could record these emissions in real time and deduct a tradable permit for each ton of the sulfur dioxide The emissions caps for each facility were too high to meet the emitted. Permits had, in principle, an infinite life and emissions reduction goal. They were also too low — and inflexible were allocated free of charge. (Kosobud 2007) — to respond to unanticipated shocks. The United States Environmental Protection Agency (2002) found that the rate of 3. Fuel switching was possible at low cost. Schmalensee et emissions decrease was less than half the initial projections. It al. (1998) find, for example, that declines in rail concluded that initial allocations were excessively high. The transportation rates lowered the cost of low- sulfur, initial allocations were approximately 4060 percent above actual Powder River Basin coal. Indeed, in hindsight, emitters emissions during the first two years (1994- 1995). overinvested in scrubbers relative to the costs of low - sulfur coal. The combination of scrubber technology and Joskow (2001) concludes that the inflexibility of the cap -and- low - sulfur coal resulted in relatively steep declines in trade scheme contributed to California's energy crisis in the early emissions. 2000s. He notes that until early 2000, the market prices for permits were very low because the number of permits allocated Even in this idealized environment, however, the Nordhaus to power plants generally exceeded their emissions. Between (2007) finding of volatile allowances suggests the program April 2000 and September 2000, the price of pollution permits produced repeated, and unexpected, shocks and the associated required to cover nitrogen oxides emissions from power plants in efficiency losses. the Los Angeles area increased by a factor of nearly ten. During this period, the demand for California - generated electricity Nitrogen oxides (multi- state) increased rapidly. This, in turn, increased gas -fired generators' demand for permits. The supply of permits, however, continued Nitrogen oxides (NOx) are prime ingredients in the formation of its planned decline under the program. The result was a spike in ground -level ozone (smog), a pervasive air pollution problem in the price of permits which (under limited technology options) many areas of the eastern United States. The NOx Budget hampered new capacity development and increased the cost of Trading Program ( "NBP ") and the NOx SIP Call program are electricity generation and contributed to California's energy cap- and -trade programs. They were created to reduce emissions crisis. of nitrogen oxides from power plants and other large combustion sources in the eastern United States. The programs were designed Sulfur dioxide (multi- state) to reduce NOx emissions during the warm summer months, referred to as the ozone season, when ground -level ozone The sulfur dioxide cap- and -trade scheme is often cited as the concentrations are highest. poster child for cap- and - trade.' However, it was introduced in a relatively ideal setting of readily - available technology and The market has been marked by price fluctuations and substitution opportunities. Phase I, 1995 through 1999, uncertainties regarding whether certain states would participate encompassed aggregate annual emissions from the 263 dirtiest in the programs (Burtraw et al., 2005). Because of a multiplicity large generating units. In Phase II, 2000 and beyond, almost all of confounding legal, participatory, and economic factors, no existing and new fossil - fueled electric generating units in the rigorous examination has been published on the economics of the continental United States are subject to a tighter cap on aggregate programs. It serves as a nascent case study of the complexity of annual emissions. implementing cap- and -trade schemes. Stavins (1998) concludes that the trading program performed Carbon dioxide (EU) successfully. Targeted emissions - reductions were achieved and exceeded. Estimated cost savings are up to $1 billion annually, The European Union Greenhouse Gas Emissions Trading compared with the cost of command - and - control regulatory Scheme ( "EU ETS ") is a cap- and -trade program that began alternatives that were considered by Congress in prior years. trading in 2005. It is closest to the notions being advanced However, there are several unique features to this program: regionally by the WCI and Oregon policymakers. The program has relatively modest goals: 1. As Stavins (1998) points out, there were both input and process substitutions available. The permit system was 1. The Kyoto agreement requires EU countries by 2012 based on emissions of sulfur dioxide rather than the to reduce their greenhouse gas emissions by an Cascade Police Institute c, e,lt I e- lift J ICI I I ilu,; 11 average of 8 percent below 1990 emissions levels. data for 2005. The actual emissions data indicated that the market was "long" by a substantial number of 2. The EU Emissions Trading Scheme exempts emitters of permits. That is, emissions were much lower than the less than 10,000 tons of carbon dioxide per year and number of permits issued. As a result, permit prices thereby only covers about 50 percent of the EU's plummeted. emissions (Metcalf et al., 2008). 4. Increases in power costs. Despite little or no carbon 3. Because it is implemented at an EU level, evasion impact, the scheme affected power prices. Sijm et al. through geographic substitution is relatively limited. (2006) conclude that power prices increased significantly in the face of carbon dioxide emissions Even with its relatively modest goals, most observers do not trading. They estimate pass- through rates of 60 -100 consider the EU's emissions reduction programs to be a success. percent of the carbon dioxide costs. Pass - through rates are lowest in France in which more than 75 percent of its 1. No meaningful reductions in emissions have been electricity is generated from nuclear power (Nuclear achieved. Indeed, Stagnaro (2008) finds that since the Energy Institute, 2008). This is disputed by Anger and EU's adoption of the Kyoto Protocol, the European Oberndorfer (2008). They conclude that because of the Environmental Agency cannot attribute changes in over - allotment of permits, the EU's Emissions Trading carbon emissions from 1999 to 2005 to any policies or Scheme did not impose a cost burden on emissions regulations. Indeed, variations in greenhouse gas management and should not have raised costs. emissions are better explained by variations in weather and the business cycle than by emissions reduction The practical experience with cap- and -trade is not encouraging policies. for its cost - effectiveness in the Oregon setting. Oregon has a more aggressive emissions reduction goal than most of the earlier 2. Political conditions resulted in an over - allotment of programs and seemingly also a more restrictive portfolio of permits. Smith and Swierzbinski (2007), studying the compliance alternatives. With a large share of Oregon's energy United Kingdom's experience, conclude that an inflated either coming already from relatively clean sources baseline for individual firms exposed the system to an (hydroelectric power and natural gas facilities), its fuel - over- allotment of permits. The result is an emissions cap switching and scrubbing options are relatively limited. Hence, that requires little additional abatement effort, and low even if applied to public utilities first — to reduce monitoring and permit values. Ellerman and Buchner (2007) report that administration costs — its practical options are few in this regard. the number of allowances distributed to installations in the first year of the EU Emissions Trading Scheme The other main uses of energy, transportation, residential and exceeded those installations' emissions by about four industrial uses, pose administrative challenges and greater percent of the total EU cap. Convery and Redmond difficulties in adjusting for the users. There is current public (2007) identify several factors that created pressure for and/or policy skepticism about hydroelectric or nuclear capacity, member states of the Emissions Trading Scheme to be importation of natural gas, and use of wave energy, and there are generous with their allowances. Because the allowances load management issues with wind and solar power. are allocated for free, there is a strong competitive Consequently, it is clear that squeezing reductions in carbon incentive for companies in the trading sectors to press to emissions with a cap- and -trade scheme may be difficult without maximize the quantity of their allowances. Countries reducing total energy usage. with less generous allocation run the risk of slowing or stifling investment and capacity expansion. We now turn to measurement of the economic impacts which it appears may be a major channel of reaction to Western Climate 3. Price volatility. Hepburn et al. (2006) and Convery and Initiative policy. Redmond (2007) report that prices in the EU's Emissions Trading Scheme have had periods of volatility and one or more price crashes. The authors conclude that the 5. The relationship anion; dioxide fundamental cause for the volatility is that the projections upon which allocations were based emissions, energy consumption, embodied far greater uncertainty than was acknowledged at the time the allocations were made. and economic activity Ellerman and Joskow (2008) suggest that higher than expected prices in 2005 and early 2006 were due to a Both over time and across countries, changes in national income cold late winter in early 2005, a dry summer in southern is associated with changes in energy consumption and carbon Europe, and high natural gas and oil prices that made emissions. Figure 3 shows a positive relationship between per coal more attractive. Convery and Redmond (2007) capita energy consumption and per capita national income. The attribute a sharp fall in price experienced in the spring of relationship is approximately one -to -one: a one percent 2006 to the release of actual carbon dioxide emissions increase in energy consumption is associated with a one 6 C as ade Polic■ Institute e,,, ,;r =ti 1 ,;_r -e ( ke:'.< . I'C,li;ies: I F - III( ti Id i5C<I 1110, percent increase in national income (Table 1). Figure 4 shows a positive relationship between per capita energy consumption and per capita carbon dioxide emissions. The Similarly, lower energy consumption is associated with lower estimated elasticity is approximately 1.32: a one percent increase national income. OECD countries have some of the highest in energy consumption is associated with a 1.32 percent increase energy consumption and the highest national income.' in carbon dioxide emissions (Table 1). Conversely, a one percent decrease in carbon dioxide emissions would be associated with a FIGURE 3 0.63 percent reduction energy consumption. For countries that produce nuclear energy, increases in energy consumption are Relationship between per person energy associated with smaller increases in carbon dioxide emissions consumption and national income, than for non - nuclear countries. by country, 1980 -2004 FIGURE 4 $100.000 • Relationship between per person energy r ; ,� . . consumption and carbon dioxide emissions, by country, 1980 -2004 10000 01000. 2 w00ol...d. OECD cornlw �' j •,, f •,. slop • 100 1000 10.000 100000 R Energy Use Per Person - WM. W. (k8ograms dot equivalent) a at Q. mr Mee.. OECD .o.e.. 0 0O 100 1000 .0 000 100.000 TABLE 1 alegy Use P.. Person Burr xve e.. (k110Qfams of oil equvaleni i Regressions of gross domestic product, energy consumption, and carbon dioxide emissions, country cross - section, natural logarithms, 2003 Figure 5 shows a positive relationship between per capita carbon dioxide emissions and per capita national income. The estimated Dependent Variable: GDP per capita based on PPP elasticity is approximately 0.71: a one percent increase in carbon Variable Coe.. Std. Err. 1 -slat. P•vakre dioxide emissions is associated with a 0.71 percent increase in Intercept 1.36 0.07 19.54 0.00 ••• national income (Table 1). Similarly, lower energy carbon Total energy consumption per capita (kgoe I person) 1.02 0 01 106 36 000 ^• Adjusted R- squared 0.80 dioxide emissions are associated with lower national income. Observations 2.829 Dependent Variable: Carbon dioxide per capita in metric tons of carbon Causation Evidence Variable Coe.. Std. Err. t -stet. P -valor Intercept -8 67 0 08 -108 14 000 Total energy consumption per capita lkgoe r person, 1 32 0 01 119 81 000 '•• A correlation between two variables does not imply that one Adjusted R- squared 0.84 P Y Obse "°'Ions 2.829 event causes the second to occur. For example, a third factor could be causing both variables in the same direction. Policy Dependent Variable: Total energy consumption per capita (kgoe / person) cannot be based on simple correlations. One must be sure that a Intercept Variable " - -- e t 65 Std. Err r tsta. -V change in one variable, through policy, will "cause" the desired Carbon docide per capita m metric tons of carbon 0.63 0.01 119.81 0.00 ••• change in outcomes. Adjusted R- squared 0.84 Observations 2.829 There are several methods for evaluating the relationships among economic activity, energy consumption and carbon emissions. Dependent Variable: GDP per capita based on PPP One approach involves simulation modeling. Under this Variable Coati. Std. 0.01 t• 699.57 P.00 approach the modeler develo s a best guess of how each sector Intercept 8.12 0.0, 899.s7 0.00 ••• PP P g Carbon dioxide per capita in metric tors of carbon 0.71 0.01 107.47 0.00 ••' o the economy responds to changes in energy markets and Adjusted R- squared 0.60 Y P g gY ODs 2.829 to changes in each ofthe other sectors of the economy. Ca' a d e Policy Institute :)-et :on Gi eel o_ise Cas Reductjoil Policies: II e and fiscal I 1 CI allelIges. changes in energy and emissions. The studies reviewed below FIGURE 5 discuss these causality studies. Relationship between per person carbon Numerous studies have found that energy "causes" economic dioxide emissions and national income, activity or that there is a symbiotic or "bi- directional" effect by country, 1980 - 2004 whereby each affects the others. See the summary of energy and economic activity studies in Pozdena (forthcoming, 2008). s,o0 .000 Although more sophisticated theoretically than the simple, correlative studies, these studies show a very persistent effect of • energy on economic activity, even in the very long run. The most recent peer- reviewed published research concludes, for i10A00 S A :'.•. example, that a 10 percent decrease in energy would result in a .''' decrease in long-run real GDP by 1.2 percent to 3.9 g Y percent P P (Narayan and Smyth, 2008). Y ` � . i { stow Thus, historical relationships suggest that policies to reduce energy consumption in the U.S. will have a negative impact on economic activity in the long run. This should come as no surprise since, if there were inexpensive ways of conserving s,,, Rect oa, E�n «.. oe, energy or cost - effective technologies to reduce the cost of their oe, 010 t 00 10.00 /0000 use, they would have been adopted by the market. Carbon Dioxide Emissions Per Posen Num >bnn ew metro tons) Even though one can argue that fossil fuels have provided a too - cheap means of producing energy, that alone does not explain This is the basis of the impact framework developed for the energy trends. Consumption of energy is not a goal in itself; it is a Western Climate Initiative.' Thus, implicitly, the WCI cost imposed on other activities. At all times, in all economies, framework assumes causality, even if no such causal relationship therefore, there is an incentive to reduce the use of energy in has been demonstrated. general, but that is balanced against the benefits it provides. That benefit is economic activity, and our interest in economic vitality Many simulation models are not well documented and difficult to has dominated the market cost implications of energy consump- evaluate. For example, as far as we can discern, there is no tion. The implication for the future is that the cost of conser- publicly available technical documentation for the ENERGY vation and production of energy by other means should not be 2020 model employed by the Western Climate Initiative. This assumed to be trivial, nor the desire for economic vitality weak. makes it impossible to evaluate independently the validity of the model. In addition, simulation models are presumptive in their Carbon dioxide emissions are not a necessary consequence of structure and content, calling into question whether the energy production and consumption. However, under historical relationships and associated predictions are reliable and technology and market conditions, carbon emissions have been unbiased. tightly integrated with economic activity. Coondoo and Dinda (2006), for example, evaluate the causal association between Econometric analysis is a statistical approach for developing the emissions and economic activity and finds the same, high level of relationships among income, energy consumption and carbon cointegration others find for energy itself. Since the study is a emissions. Rather than assuming a relationship, econometric panel of different countries at different times, it demonstrates the techniques use real -world data to test whether a relationship pervasiveness of this cointegration even among economies of exists and whether forecasts reliably predict actual outcomes. different composition and levels of energy consumption. This, in The econometric approach also permits testing for causality. A turn, suggests that it is going to be hard, at the margin, to variable is said to "cause" another if movements in one economic influence emissions without adversely affected economic variable consistently precede movements in a second variable. activity. Since an omitted, third common variable can be responsible for this pattern of precedence, defining causality in this way (referred to as Granger causality) is more reliable than simple correlative studies. 6.Technology tO the rescue? Econometric studies that have found that there are such strong Historical studies give us a picture of cause and effect under inter - relationships among economic activity, energy historical conditions. The great prayer of climate change policy, consumption, and emissions that it is hard to separate their therefore, must be that novel technology — that was not a choice mutual influences. This notion, that is called "cointegration" or not available in the past — will evolve rapidly to break the tight means that, in the historical context at least, one cannot expect to entanglement of energy, emissions, and economic activity. be able to influence economic activity without having associated This section explores the potential for heroic technological t' .1, .d, ! IIZv Institute - eccri Greei Gz:s Reckctio Ilse fiscal Impact CI allea es fixes to the cointegration dilemma. resources available to develop new technologies. Liddle (2007), in his study of cointegration of vehicle travel, the Changes in technology can take many forms. Technological economy, fuel costs, and fuel efficiency, concluded that change can take the form of novel mechanical or chemical it may be very costly to use pricing mechanisms to processes to produce or consume energy. Energy conservation improve fleet fuel efficiency. He looks to technological within existing technical constraints, however, also is a form of changes to resolve the challenge. technological change because it involves individuals and firms rearranging the way they do things. Economists view 3. Wholesale replacement of energy- consumptive capital technological change as a factor that evolves under the combined is itself energy consumptive. For example, photovoltaic influence of serendipity and market conditions. Exactly how panels manufactured in the 1990s used more energy in technology will evolve is uncertain, difficult to predict, and their manufacture than they produced over their limited by market forces. Bretschger (2005) puts the challenge of lifetimes. In essence, subsidizing their adoption above resource - sparing technological change succinctly: the market level thus increased, rather than decreased, fossil fuel use.' The latest panel technologies may be [TJechnological change has the potential to compensate less wasteful, but often, energy - efficiency calculations for natural resource scarcity, diminishing returns to do not incorporate the cost of converting existing capital, poor input substitution, and material balance systems, developing storage facilities, etc. through the restrictions, but is limited by various restrictions like entire supply chain.' When such calculations are made, fading returns to innovative investments and rising the total energy budget of adopting new technology can research costs. be surprisingly high. Consider, for example, the energy cost of manufacturing new cars with greater energy Increasing scarcity of some resources and the associated rising efficiency. The full, supply -chain budget can be prices should stimulate creation and adoption of new, energy approximated from national, input output information sparing technologies. Indeed, the logic of cap- and -trade and linked to sectoral energy consumption data. When all of other efforts to create markets in carbon emissions is to stimulate the supply -chain energy demands are considered, it adoption of carbon - sparing technologies and behaviors. requires approximately 7.6 terajoules (7.6 x 10 joules) However, penetration of new technology can be expected to be to manufacture one million dollars of cars or light trucks. slow and costly, for several reasons. Converted to BTUs and equivalent gallons of gasoline, enough energy thus is used to manufacture a $20,000 car 1. Even if the carbon - sparing technology already exists, to propel an existing - efficiency vehicle over 100,000 capital market forces will stymie penetration. The reason miles. The point of such energy- accounting exercises is is that most technology is embedded in durable, physical simply to highlight the challenge of technology capital of come kind, such as industrial plant and transition. The transition to carbon - sparing energy or equipment, vehicles, housing type or location, etc. If a transportation technologies typically will initially new technology comes along that is energy- sparing, the accelerate climate carbon accumulation, since these owner of the existing capital will suffer reduced value of energy demands are front - loaded. (In climate policy that capital. Specifically, if asset markets work parlance, there is a negative time shift in the carbon efficiently, the value of the "old" capital will fall by an emission burden.) amount equal to the relative energy cost savings offered by the "new" capital — everything else being equal. In summary, it is difficult to project the development timing, cost Thus, owners of old capital will be, at best, indifferent to and penetration rate of new, carbon - sparing technology. More the existing or new technology. Indeed, if the new importantly, it is hard to know whether the rate of adoption of technology has high, front -end costs (of acquisition, new technology is, or is not, adequately captured in the historical conversion, etc.), it may make more sense to hold on to record used to develop causality models. If it is, then the the old technology (which has low market value) until implications of those models are sufficient to provide insights other factors make replacement cost - effective. This is into the economic effects of climate policy in Oregon. likely why Newell (2004) and others have observed that making the replacement technology cheaper accelerates In what follows, we take the conservative position that adoption faster than a higher cost of energy. technological change may be unable to fully offset the impact of the WCI initiatives on the Oregon economy. 2. If carbon - sparing alternative technology is not currently available, the only effect of higher energy input prices is to reduce consumption and production of the associated products or services and/or depress the wealth of those who hold the old capital. This is problematic because it results in reduced economic activity hand -in -hand with any reduction in energy use and carbon emissions. Reduced private income and wealth may limit the 9 Cascade Policy institute ( Peck eta,iI'clicie': IrF -,ci �i�_�itl i�:_<ll i c. Itllri:e�, 7. The economic and fiscal impacts continues present activities (including those that now restrain greenhouse gas emissions), but takes no additional special of Oregon's greenhouse gas actions to reduce emissions. Under the "business as usual" scenario, the Advisory Group predicts that by 2025 Oregon's reduction goals total greenhouse gas emissions would be 61 percent higher than 1990 levels. Much of the growth in greenhouse gas emissions can This section evaluates the economic and fiscal effects Oregon's be attributed to population growth. Indeed, the Advisory Group's proposed greenhouse gas emissions reduction goal. This study projections suggest that 2025 "business as usual" per capita focuses on the economic and fiscal impacts of climate change emissions would be almost identical to 1990 levels. policies rather than on potential climate change itself. Some of the policies under consideration by states will affect their Gross domestic product economic performance and fiscal solvency. The United States Bureau of Economic Analysis (2008) provides It should be noted that the impact estimates presented in this Oregon's gross domestic product over the period 1997 -2007. section are not "best- case" estimates - though there is some risk Table 2 shows estimates of the relationship between Oregon they may prove to be that. They are based on long term and/or population and GDP. The data indicate an elasticity of 3.23: a one widespread historical behavioral relationships. As noted percent increase in population would be associated with a 3.23 elsewhere in this report, technological change offers the greatest percent increase in Oregon's gross domestic product. This potential to mitigate some portion of the impacts of achieving the elasticity estimate is applied to the Census Bureau's population stated, Oregon reduction goals. However, patterns of energy use projections to forecast employment through 2020 and converted are embedded in huge stocks of commercial, industrial and to 2008 dollars using the gross domestic product deflator residential capital, and producing new, more efficient capital provided by the State of Oregon (2008). itself is energy- consumptive and carbon - emissive. Liddle (2007) and Pozdena (2008, forthcoming) have studied the TABLE 2 long -term revealed relationships among energy use, travel activity and progress in fuel efficiency in transportation. They Regressions of gross domestic product, found low responsiveness of either technical change or travel employment, and state and local government behavior to price changes alone. If more generally applicable, own source revenues, natural logarithms these findings suggest that the there may be slow development and adoption of technology and/or backward shifting (near -term acceleration) of the atmospheric carbon burden. Thus, there are Dependent Variable: GDP (millions $2000) considerable hurdles to development and deployment of new Variable Coex. Std. Err. Vital. P-ealue technologies such that the current relationships are altered Intercept 7.61 0.17 45.60 0.00 •- significantly. Hence, it is relevant to appraise economic and t r ed 3.23 0.13 z4. 0.00 -• fiscal impacts under conservative assumptions, since to do obsenratgns 11 otherwise may assume away an important cost of producing greenhouse gas benefits. Dependent Variable: Employment (millions) Variable Coax. Std. Err. t-stat. P -vacua Intercept -2.49 0.45 -5.52 0.00 '•' Baseline forecasts of greenhouse gas emissions, GOP Ri i 06 0.0 6.58 0.00 employment, income, and state and local Observations 11 government revenues Dependent Variable: State & local own source general revenue (millions $2008) Both over time and across countries, changes in Oregon state Variable Coax. sea. Err. t.tat P -rawe income and employment are correlated with changes in pop- Intercept $2008) 0.77 34 1.34 0. 8 0.5 ulation. The State of Oregon (2008) provides actual and forecast Adjusted R- squared 0.85 population over the period 1990 -2015. The United States Census Observations 9 Bureau (2005) forecasts state population through 2030. Dependent Variable: Employment (millions) Greenhouse gas emissions Variable Coax. Std. Err. fetal. P-ealue Intercept -1.00 0.05 -20.38 0.00 ^. The Oregon Governor's Advisory Group on Global Warming Adjusted R-squared ed 0.97 0.04 30.02 0.00 g ry p S ndwated R- squared o.97 (2004) forecasts what it calls the "business as usual" amount of observations 26 greenhouse gas emissions through 2025. This study adopts the Advisory Group's "business as usual" scenario as a baseline level of annual emissions. "Business as usual" assumes that the state 10 Cascade Policy Institute r. ;; r; iI, PeJtctc 1 eI- coretica1c1 i_cr1I nu, LL .Iler :;e. Employment FIGURE 6 Economics recognizes the interrelationship between gross domestic product and employment. Table 2 shows estimates of Oregon actual and forecast gross domestic the relationship between Oregon gross domestic product and product per person, baseline and greenhouse employment. The elasticity of employment with respect to gross gas emissions reduction goal, 1990 -2025 domestic product is 0.25: a one percent increase in gross domestic product is associated with a 0.25 percent increase in 580000 - employment. This elasticity estimate is applied to gross domestic product projections to forecast employment through 2020. 570.000• $65500 State and local government revenues 550000• The United States Census Bureau (2008) provides Oregon's state a 000, $48.400 555.400 and local governments' own - source revenues for each of the fiscal years 1995 -96 through 2005 -06, with the exception of S40.000 • fiscal years 2000 -01 and 2002 -03 for which state -level data is not available." Revenues are converted to 2008 dollars using the gross domestic product deflator provided by the State of Oregon $'°°°°' (2008). Table 2 shows estimates of the relationship between Oregon gross domestic product and state and local governments' 520.000 own source revenues. The data indicate an elasticity of 0.77 with Year "s respect to gross domestic product: a one percent increase in gross curve ' """ °°■° domestic product would be associated with a 0.77 percent increase in Oregon's state and local government revenues. The elasticity estimate is applied to the employment and gross domestic product projections to forecast state and local Figure 7 shows that 2020 baseline gross domestic product is governments' own - source revenues through 2020. projected to be $291.1 billion. With the greenhouse gas reduction goal, 2020 gross domestic product would be $242.8 billion, or $48.3 billion lower than baseline projections. Between 2008 and Oregon's greenhouse gas reduction goals 2020, the sum of foregone income would be $301.0 billion. At a discount rate of 7 percent, the present value of the foregone relative to the baseline income is $173.3 billion. Figure 2 shows Oregon's greenhouse gas emissions goal relative to actual and baseline projected emissions provided by the FIGURE 7 Oregon Governor's Advisory Group on Global Warming (2004). It assumes that policies will be in place by the end of 2008 to Oregon actual and forecast gross domestic achieve Oregon's 2020 reduction goal. Given current projections product, baseline and greenhouse gas of Oregon's population growth, the state's 2020 reduction goal emissions reduction goal, 1990 -2025 can be attained if per capita emissions decline by a little more than four percent per year continuously between 2008 and 2020. 5050.000 - S300 000 • 5291 , 6d. Impacts on state income • $250.0°° • The estimated elasticity of gross domestic product with respect to 5242.8 hl. carbon dioxide emissions under historic conditions is approximately 0.71. In other words, a one percent reduction in $ -g 00000 5,600 per capita carbon dioxide emissions is associated with a 0.71 g percent decrease in per capita gross domestic product (Table 1). 5,59,00°. The estimated elasticity is applied to the reduction in emissions relative to the baseline. For example, Oregon's 2020 reduction 5,00.00• goal would result in emissions that are 40.7 percent lower than baseline. Applying the estimated elasticity indicates that state per capita gross domestic product would be 28.9 percent lower than baseline. rear * A. m ,.-,,., ° , Cascade Policy institute i) e .o ke.lt ct a Policies I e k:urctlic a ICI 1 ci CI z_Ilei : -e� Impacts on state employment FIGURE 9 Table 2 estimates the relationship between Oregon gross Oregon actual and forecast state and local domestic product and employment. The estimated elasticity is government own source revenues, baseline and applied to Oregon's gross domestic product under the greenhouse greenhouse gas emissions reduction goal, 1990 -2025 gas emissions reduction goal. $40.000- Figure 8 shows that 2020 baseline employment is projected to be 2.01 million, or 45.8 percent of projected population. Under $35.000. 5341 N. • Oregon's greenhouse gas reduction goal, 2020 employment would be 1.92 million, or 90,000 less than baseline projections. If & ,000 , state population growth continues at the rate projected by the _ #97 0i. United States Census Bureau (2005), then only 43.9 percent of $24.6X the population would be employed. :25.009 . • $ $20.000 FIGURE 8 515.000 Oregon actual and forecast employment, baseline and greenhouse gas emissions 510.000 reduction goal, 1990 -2025 1 Q R Year as... /whew nwrre.. 2.2 . 201 nW. 20• • Figure 10 shows that 2020 baseline state and local revenues per • capita is projected to be $7,780. Under Oregon's greenhouse gas 1.92 MI reduction goal, 2020 state and local revenues per capita would be 174 $6,790, or $990 lower than baseline projections. If �E W 16. FIGURE 10 14. Oregon actual and forecast state and local government own source revenues per capita, baseline and greenhouse gas emissions 2 reduction goal, 1990 -2025 Year y.unz .Weu.s rairW.pn 59.000 - O $8.000 $7.790 Impacts of Oregon's greenhouse gas reduction goals on state and local government revenues f7000 $6 420 56.780 Table 2 estimates the relationship between Oregon state and local 56000, • government own source revenues as a function of the state's gross domestic product and employment. The estimated elasticity estimates are applied to Oregon's gross domestic product and $ employment under the greenhouse gas emissions reduction goal. Figure 9 shows that 2020 baseline state and local revenues are $4.000' projected to be $34.1 billion. With the greenhouse gas reduction year R R goal, 2020 state and local own source revenues would be $29.7 billion, or $4.4 billion lower than baseline projections. The lower employment from meeting the emissions goals will also increase the demand for state and local government expenditures. C a s c a d e 1>i il Institute 0 e -.s i 0reei °I o.tse Gas Retiuctict e Fcowomicaid isud ces 8. Alternative carbon dioxide however, changes in the cap or quantity of permits will create a patchwork of changes in wealth positions of the emissions management options various holders. As the discussion above has made clear, the cap- and -trade This is not to say that there are no issues associated with approach is a means of creating a market in emissions, but often implementing a carbon tax. Some of the challenges include the stumbles over implementation problems in practice. If there are following: economic externalities to the emission of carbon dioxide, creating markets in these emissions is an important thing to do. It 1. First and foremost, the collected revenues need to be serves as a means of efficiently guiding the burden of adjustment deployed in a way that minimizes the impact on the to climate policy to those who can adjust at least cost. However, economy. Use of the revenues to reduce other tax the cap- and -trade approach has been problematic, historically, obligations, as in the British Columbia implementation, and seems particularly difficult, in our opinion, to accommodate is particularly attractive. It makes the overall program to the comprehensive capping of carbon dioxide emissions. more politically palatable while preserving the marginal incentive to conserve fuel use. Proper implementation, In this section, we discuss selected, alternative mechanisms of of course, requires that there not be a one - for -one refund managing carbon emissions. of carbon taxes paid, or the marginal incentives will be dulled. 2. It is often argued that the certainty of meeting emissions Carbon tax goals is lower than with a specific cap- setting scheme. This is true, since with carbon taxation, one must wait to An alternative to cap- and -trade schemes is a carbon tax applied observe the market reaction before knowing what to the per unit carbon content of fossil fuels. The advantages of a amount of emissions reduction that will occur. carbon tax approach over a cap- and -trade scheme include the However, from our perspective, this is an advantage in following: that the risks to the economy of an overly aggressive cap are more easily avoided. Put differently, cap- and -trade 1. A carbon tax is paid in proportion to the amount of fuel schemes, relative to a carbon tax, enjoy greater certainty used, allowing the burden on the payor to vary more of emissions reduction at the expense of greater closely with the variations in industrial and other energy uncertainty about the scale of adverse economic use. In economics parlance, a carbon tax is a flow -based impacts. pricing scheme rather than a stock -based scheme as with the cap -and trade permits. The permits, being long -lived 3. If fuels produce differing quantities of offending assets, require speculation about future values of the greenhouse gases according to their use, the carbon tax permits on the part of market participants. The scheme will have to be made technology sensitive if it is uncertainty of future conditions makes such speculation to encourage scrubbing, sequestration, and other post - a proximate cause of the volatility and inequity observed combustion adjustments. This complicates the in other permit programs. implementation. 2. A carbon tax prices the marginal use of fossil fuel A challenge that faces any emissions rationing or pricing scheme directly. Permit schemes do so only if the permits are is whether emissions management technology will evolve traded in a highly liquid and high volume setting. quickly enough to meet emissions reduction goals without Specifically, to preserve marginal -cost signaling, small impairing economic activity by more than the value of economic increments of permit quantities will have to be bought gains purported to be associated with emissions reductions. and sold. With both the long -term effect of climate change uncertain and its economic impact less certain still, it is hard to set either 3. A carbon tax approach also is more easily extended to emissions quantities or prices with any confidence. commercial, residential and transportation settings where fuel use is already extensively metered. Thus, it European Union countries have also adopted ambitious goals, can more easily be a comprehensive program. but have been unsuccessful in attaining them. Indeed, Stagnaro 1 (2008) finds that since the EU's adoption of the Kyoto Protocol, 4. It is inevitable, in the uncertain world of climate and the European Environmental Agency does not attribute changes economic modeling, that changes in carbon pricing in carbon emissions from 1999 to 2005 to any policies or policy will have to be made. With a carbon tax, these regulations. Except for one case, the variation in emissions is not changes are transparent and, when coupled with the attributed to specific policies. Rather, variations in greenhouse return of revenues to payors (see below), changes in gas emissions are better explained by variations in weather and incentives can be implemented with relatively little the business cycle than by emissions reduction policies. relative equity impacts. In the case of permit schemes, Ca s c a d e P o l i c y I a s t i tut e i ie, i Greeuliouse (;as Redoctio°7 Policies: 1 I F cot;o =rtic bind f iscal I ioact C;I"o Ilert es Technology acceleration subsidies. The difficulty with this logic, however, is that it is not clear that market transformation is necessary if An economically efficient carbon policy maximizes the present the benefits of the innovation are clear. The booms in value of expected, economic well- being. The trade -off of personal computers, mobile phones, iPods, and other present prosperity against the risks of future, negative economic technology all occurred with great rapidity, despite high impacts of climate change may be very harsh. Indeed, in the capital costs, without public subsidy. On the other hand, extreme hypothetical case that there are no better carbon - sparing publicly mandated innovations rarely — if ever — technologies than those available today, the picture is dire. The successfully take off. For example, the switch to digital only way to avoid the impacts of climate change over time would over - the -air television broadcasting has been subsidized be to shrink the current economy drastically. by the giveaway of broadcast spectrum and hardware subsidies. Nevertheless, the switch over has been Rapid technological change is the means by which current output delayed by several years because consumers have not and income trends potentially could be maintained while been convinced that the innovation represents an reducing negative impacts of climate change. This makes it improvement over the status quo. important to determine if there are cost - effective means of accelerating the development and adoption of carbon - sparing 2. Fledgling or "orphan" technologies need technologies. bootstrapping in order to be able to scale up production sufficiently. This "critical mass" argument There are three, basic ways of achieving this acceleration: is a variation of the market - transformation argument, pricing of carbon emissions, subsidy of new technology and suffers from the same defects. Decades of subsidies adoption, and subsidy of basic research. provided to solar power installations have yet to transform the industry into one that can survive without Pricing of Emissions the subsidies. Indeed, one could argue that the subsidies have served to sustain a moribund technology that was One prices carbon emissions to reflect their economic burden. not providing energy in excess of the energy embedded That is the goal, of course, of cap- and -trade and carbon tax in the product. It will take a major, persistent change in policies. By raising the cost of burning carbonaceous fuels, fossil fuel prices to improve the pace of innovation in incentives are created that will encourage conservation through this technology. reduction in carbon - intensive activities. This conservation necessarily implies some loss in current economic well- being. 3. Subsidies are required to accelerate conversion of The prospect of this loss, however, in turn creates incentives to durable "old" capital. Some studies have observed avoid these losses, motivating profit- seeking innovators to that subsidies to reduce purchase costs are more develop cost - effective, carbon - sparing technology. effective in technology adoption than the prospect of equal savings in use. See Newell (2004). This likely is Economic history is full of examples of profit- motivated due to the uncertainty of future energy cost savings innovation springing from the desire to spare a costly input. relative to a definitive subsidy. Often times, however, Thus, we know that influencing the price of carbon will stimulate the uncertainty of savings in use is warranted because innovation and adoption of carbon - sparing technology. In technologies do not operate as efficiently in real -world addition, the incentive will be strongest to develop cost - effective environments as they do in the lab. Newell observes that . innovations since only these will be adopted in the market place. energy savings from higher efficiency levels routinely have been overestimated. New technologies often Thus, there is no reason to doubt the effectiveness of the invisible involve overstatements of savings by 20 percent to 100 hand of the marketplace. However, as discussed earlier in this percent, and overestimation of internal rates of return by paper, technology embedded in long -lived capital will be factors of five. Thus, the fact that subsidizing capital absorbed slowly due to the offsetting price changes in old costs can accelerate adoption does not necessarily make technologies. This raises the question of whether additional it a cost- or energy-effective mechanism. policies to accelerate technological change are warranted. In our view, none of these reasons is per se a justification for Subsidy of new technology adoptions subsidizing adoption of new technologies. The only real justification is in those cases in which the private market would "underpurchase" new technology because it does not perceive A common, existing policy is to subsidize the capital cost of new the social externality associated with climate change effects. By technologies. The rationale for such subsidies include the pricing those externalities directly, however, (via a cap- and -trade following: or carbon tax) private decisions will properly incorporate this 1. The market needs to be exposed to the new consideration. Hence, at a minimum, subsidies are duplicative technology in order to embrace it. This is the learning of an emissions-pricing program. or market- transformation argument for technology There are other problems with subsidy programs directed at 14 C as ca de Polk: y I n, r i r u t e 0 °1 Greed case Gas Reduction Policies: 1 I Economic and Fiscal Impact CP atler,c,es technology adoption. The most important one is that policy costs of implementing the strategy, the economic benefits are makers have to "pick the winners" to subsidize. Even with dramatic: the estimated benefit -cost ratio is over six -fold, unbiased professional advice, one has to have great faith in policy suggesting that the effects on the regional economy would be makers' prescience in technology and market trends. In fact, the unusually potent (Puget Sound Regional Council, 2008). track record in this regard is poor. The nearly wholesale abandonment of nuclear power, for example, has traded local Congestion pricing should be implemented on its own merits. environmental risks for what some say will be a global climate However, because it actually generates positive economic change catastrophe due to fossil fuel use. In addition, the subsidy benefits by sparing another, valuable resource (travelers' time) its has to be paid by someone, potentially diverting funding of economic footprint may be positive, rather than negative. beneficial activities to non- cost - effective ones. Hence, it is one of the few carbon - sparing policies that actually improves, rather than degrades, economic welfare. Subsidy of basic research Whereas carbon taxes, set at a level that emulates the social cost The one area that most economists might argue deserves public of carbon emissions, would be on the order of a fraction of a cent subsidy is basic research. The difference between basic and to a cent or so per VMT, peak period congestion levies may easily applied research is that the former may be more expensive than be in the 25 to 65 cents per VMT on congested facilities. Thus, any one market innovator could afford, and does not typically congestion pricing may be a case where doing something to enjoy the profit prospects of the latter. generate economic benefits may indirectly be a good first step in managing carbon emissions. In summary, acceleration of technological innovation seems best served by levying charge on carbon emissions. Most subsidies TABLE 3 are either likely to be ineffective (inherently, or due to incompetence in picking winners), or duplicative of the incentives provided by pricing emissions externalities. There Summary of energy - economy causation research may, however, be some justification for subsidizing basic research that bears upon carbon technology. Causality Finding Energy causes GDP causes No Author Carry Studied GDP Energy Causality Stem (1993) US x x Congestion Pricing Stem (2000) us x X Lee (2006) US X X Con Congestion pricing is a policy that economists have advocated AbosedrndLon (1980) US US X g P g P Y Akanca and Late (1t�) us x for many over 50 for reasons other than climate change Yu and Choi (1905) US X considerations. This author has studied and advanced the notion Yu and Hwang (1984) US X of congestion pricing for over 30 years. Economists believe that cheng (1995) us x Erni and Yu (1997) Japan X X such pricing better reflects the impact of additional vehicles on Erol and Yu (1987) Canada x the speed of the traffic stream under high volume conditions. Eros and Yu (1987) ray X Current mechanisms of road pricing (the gas tax, primarily) are Erol and Yu (1987) West Gennany X insensitive to the scarcity of peak road capacity. This under - Er Yu (1987) France x Y P P ty• Erol and vu (,967) utc x pricing of scarce peak roadway capacity distorts trip making, Yu and Choi (1985) UK x location decisions, and roadway authorities' tendencies to add Ghali and El- Saldta (2004) Canada X X new capacity. All of these effects have an adverse effect on the Soytas and San (2003) ray x Soytas and Sari (2003) France X carbon footprint of travel and dissipate valuation time resources sores and San (am) Germany X of regional labor. Soytas and San (2003) Japan X Lee (2006) Canada X congestion pricing would be reduction in Lee (2006) France X Thus, a side effect of con g P g Lee (2006) ray x low -value trip making, and encouragement of time -, fuel- and Lee (2006) JaPan X carbon sparing travel and mode choice behavior. Vehicle miles Soytas and San (2006) Canada X X traveled (VMT) would be reduced, especially in the peak period, soya and San (2006) way X X but likely also in daily traffic. In addition, reducing turbulence of Soytas and San (2006) Japan X X Y Y g Sr oytas and San (2006) UK X X traffic ( "stop- and -go conditions ") reduces both fuel Soytas and San (2006) France X consumption and emissions. Soytas and San (2006) US X Soytas and San (2006) Germany X Narayan and Smyth (2008) G-7 Panel X The results of a regional implementation experiment in the Puget Sound Region (for which this author was a principal investigator) suggest that pricing for congestion alone on the region's road network would reduce total VMT by about six to seven percent, and generate economic benefits of $28 billion over a thirty -year period in present value terms. Relative to the C a s c a d e P o l i c e i n s t i t u t e 0 e:ci! 1„..a krdtct'o 1 l' Irciet I Fcun,.ili:.1 itl 1 ,, I I ),,,( CI, Ile' .es Endnotes 1. See Keenlyside (2008), for example, who most recently raised a furor the 6. Most studies that have found causality have found that changes in energy journal Nature amongst climate management advocates with his prediction consumption cause changes in income (Narayan and Smyth, 2008; Soytas of decadal cooling. and Sari, 2006; Thoma, 2004; Stern, 2000, 1993). (For the U.S., results from Soytas et al. (2007) suggest Granger causality from energy consumption to 2. Oregon Revised Statutes §468A.205. Oregon's statute identifies a real GDP. While the authors fail to reject the hypothesis at a 10 percent level greenhouse gas as any gas that contributes to anthropogenic global warming of confidence, the p -value (0.1599) suggests that Granger causality is more including, but not limited to, carbon dioxide, methane, nitrous oxide, likely than not.) Earlier studies have found causation going the other way hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. (Abosedra and Baghestani, 1991; Kraft and Kraft, 1978). One study has found bi- directional causality (Lee, 2006). 3. The dominant precursor of acid rain in the U.S. is sulfur dioxide from coal -fired power plants in the northeast and midwest. These emissions are 7. Energy payback is the recovery (period) of the energy spent for the focus of the acid rain program created by Title IV of the Clean Air Act manufacturing of the respective technical energy systems, also called Amendments of 1990 that created a cap- and -trade program. Title IV created harvesting ratio (ISO 13602). a cap on utility sulfur dioxide emissions from electric generating units, to be implemented in two phases. 8. See, for example, United States Department of Energy (2004). 4. The Organisation for Economic Co- operation and Development (OECD) 9. Carnegie Mellon University Green Design Institute (2008). is an international organisation of thirty countries that accept the principles of representative democracy and free - market economy. OECD members are 10. See, for example, Zhang et al. (2006) and Sawtelle (2007). considered to be the most economically advanced countries in the world. 11. Own source revenues are the total taxes, charges and fees raised at the 5. This reflects the authors' understanding of the Western Climate Initiatives' state and local level, excluding utility, liquor store, and insurance trust fund potential framework to estimate economic impacts. The Initiative has not revenues. Total revenues are equal to own source revenues plus federal published any estimates of economic impacts associated with its reduction funds. goals and its cap- and -trade scheme. To date, it has published a framework document that describes the inputs, assumptions, and modeling approach it intends to use to estimate impacts (ICF Consulting Canada, 2008). The Initiative's potential approach uses an energy market model to simulate changes in the supply and demand for different sources of energy in response to different policy scenarios. The simulation model uses ENERGY 2020, an integrated multi- region energy model that provides detailed all -fuel demand and supply sector simulations. ENERGY 2020 can be linked to a detailed macroeconomic model to determine the economic impacts of energy /environmental policy and the energy and environmental impacts of national economic policy. Sources Abosedra, S. and Baghestani, H. (1991). New evidence on the causal Coondoo, D. and Dinda, S. (2002). Causality between income and emission: relationship between United States energy consumption and gross national A country group- specific econometric analysis. Ecological Economics, product. Journal of Energy and Development, 14(2):285292. 40(3):351367. Akarca, A.T., Long, T.V., 1980. On the relationship between energy and Coondoo, D. and Dinda, S. (2006). Income and emission: A panel data -based GNP: a re- examination. Journal of Energy and Development 5, 326331. cointegration analysis. Ecological Economics, 57(2):167181. Anger, N. and Obemdorfer, U. (2008). Firm performance and employment in Ellerman, A. D. and Buchner, B. K. (2007). The European Union Emissions the EU emissions trading scheme: An empirical assessment for Germany. Trading Scheme: Origins, allocation, and early results. Review of Energy Policy, 36(1):1222. Environmental Economics and Policy, 1(1):6687. Bretschger, L. (2005). Economics of technological change and the natural Ellerman, A. D. and Joskow, P. L. (2008). The European Union's emissions environment: How effective are innovations as a remedy for resource trading system in perspective. Pew Center on Global Climate Change. scarcity? Ecological Economics, 54(23):148163. http:// www .pewclimate.org/docUploads/EU- ETS -In- Perspective- Report.pdf, retrieved September 11, 2008. Burtraw, D., Evans, D. A., Krupnick, A., Palmer, K., and Toth, R. (2005). Economics of pollution trading for SO2 and NOx. Annual Review of Erol, U., Yu, E.S.H., 1987. 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Vehicle Miles Traveled and the Economy: The Challenge for Climate Policy, Bi- Partisan Policy Commission, forthcoming. International Monetary Fund (2008). World economic outlook database. April. Puget Sound Regional Council, Traffic Choices StudySummary Report, April 2008. http: / /psrc.org/ projects/ trafficchoices /summaryreport.pdf, Joskow, P. L. (2001). California's electricity crisis. Oxford Review of accessed September 2008. Economic Policy, 17(3):365388. Sawtelle, B. (2007). Analyzing the link between real GDP and employment: Keenlyside, N. S. et al., (2008). Advancing decadal -scale climate prediction An industry sector approach. Business Economics, 42(4):4654. in the North Atlantic sector, Nature 453, 84 -88 (1 May 2008) Schmalensee, R., Joskow, P. L., Ellerman, A. D., Montero, J. P., and Bailey, E. M. (1998). An interim evaluation of sulfur dioxide emissions trading. Kosobud, R. F. (2007). Trading or taxes in the regulatory control of air Journal of Economic Perspectives, 12(3):5368. polluting emissions. Dialogue, 15(1):1215. Sijm, J., Neuhoff, K., and Chen, Y. (2006). CO2 cost pass- through and Kosobud, R. F., Stokes, H. H., Tallarico, C. D., and Scott, B. L. (2004). The windfall profits in the power sector. Climate Policy, 6(1):4972. Chicago VOC trading system: The consequences of market design for performance. Massachusetts Institute of Technology, Center for Energy and Smith, S. and Swierzbinski, J. (2007). Assessing the performance of the U.K. Environmental Policy Research. Emissions Trading Scheme. Environmental and Resource Economics, http: / /tisiphone.mit.edu. proxy .lib.pdx.edu /RePEc /mee /wpaper /2004- 019.pdf, 37(1):131158. retrieved July 16, 2008. Soytas, U. and Sari, R. (2006). Energy consumption and income in G -7 Kraft, J. and Kraft, A. (1978). Relationship between energy and GNP. countries. Journal of Policy Modeling, 28(7):739750. Journal of Energy Development, 3(2):401403. Soytas, U., Sari, R., 2003. Energy consumption and GDP: causality Lee, C. -C. (2006). The causality relationship between energy consumption relationship in G7 countries and emerging markets. Energy Economics 25, and GDP in G -11 countries revisited. Energy Policy, 34(9):10861093. 3337. Lee, C.C., 2006. The causality relationship between energy consumption and Soytas, U., Sari, R., 2006. Energy consumption and income in G7 countries. GDP in G -11 countries revisited. Energy Policy 34, 10861093. Journal of Policy Modeling 28, 739750. Liddle, B. 2007, 'Long -Run Relation among Motor Fuel Use, Vehicle Miles Soytas, U., Sari, R., and Ewing, B. T. (2007). Energy consumption, income, Traveled, Income, and Gas Price for the US', paper presented at the 27th and carbon emissions in the United States. Ecological Economics, USAEE/IAEE North American Conference 'Developing and Delivering 62(34):482489. Affordable Energy in the 21st Century, Houston, Texas, 16 -19 September. Stagnaro, C. (2008). Europe 2020: An alternative proposal. Istituto Bruno Metcalf, G E., Paltsev, S., Reilly, J., Jacoby, H., and Holak, J. F. (2008). Leoni. Analysis of U.S. greenhouse gas tax proposals. National Bureau of http:/ /brunoleonimedia.servingfreedom. net /Papers /IBL_Report_CarbonTax_ Economic Research. Working Paper 13980. eng_print.pdf, retrieved July 16, 2008. Narayan, P. K. and Smyth, R. (2008). Energy consumption and real GDP in State of Oregon (2008). Historical annual and quarterly data tables, other, 19902015. Office of Economic Analysis. G7 countries: New evidence from panel cointegration with structural breaks. Energy Economics, 3 denc3312341. http : / /www.oregon.gov/DAS /OEA/docs/ economic /econdata/other- annual.xls, retrieved August 12, 2008. Newell, Richard G. (2004). "Energy Efficiency Challenges and Policies," Stavins, R. N. (1998). What can we learn from the grand policy experiment? The Pew Center on Global Climate Change and the National Commission on Lessons from SO2 allowance trading. Journal of Economic Perspectives, Energy Policy, The 10 -50 Solution: Technologies and Policies for a Low- 12(3):6988. Carbon Future, Workshop Proceedings, Chapter 17. Stavins, R. N., Jaffe, J., and Schatzki, T. (2007). Too good to be true? An Nordhaus, W. D. (2007). To tax or not to tax: Alternative approaches to examination of three economic assesssments of California climate change slowing global warming. Review of Environmental Economics and Policy, policy. AEI - Brookings Joint Center for Regulatory Studies. http: / /www.reg- 1(1):2644. markets .org /publications /abstract.php? pid =1151, retrieved September 11, 2008. Nuclear Energy Institute (2008). World nuclear power generation and capacity, 2007. http : / /www.nei.org/filefolder/World Nuclear Power Stern, D. I. (1993). Energy and economic growth in the USA: A multivariate Generation and Capacity 2.xls, retrieved August 13, 2008. approach. Energy Economics, 15(2):137150. Oregon Governor's Advisory Group on Global Warming (2004). Oregon Stern, D. I. (2000). A multivariate cointegration analysis of the role of energy strategy for greenhouse gas reductions. State of Oregon. in the US macroeconomy. Energy Economics, 22(2):267283. http://www.oregon.gov/ENERGY/GBLWRM/docs/GWReport-FInal.pdf, retrieved August 26, 2008. Stern, D.I., 1993. Energy and economic growth in the USA. Energy Economics 15, 137150. Stern, D.I., 2000. Multivariate cointegration analysis Orszag, P. R. (2008). Containing the cost of a cap- and -trade program for of the role of energy in the US macroeconomy. Energy Economics 22, carbon dioxide emissions. Testimony before the Committee on Energy and 267283. Natural Resources United States Senate, Congressional Budget Office. http: / /energy. senate.gov /public / files /OrszagCBOTestimony052008.pdf, retrieved August 12, 2008. Cascade Policy Institute r;; („1 l�,i I licies IeFceiailic,1 1 c Ile':,e Thoma, M. (2004). Electrical energy usage over the business cycle. Energy United States Government Accountability Office (2008). Climate change: Economics, 26(3):463485. Expert opinion on the economics of policy options to address climate change. GAO -08 -605. United States Bureau of Economic Analysis (2008). Gross domestic product by state. Western Climate Initiative (2007). Statement of regional goal. http: / /www. westernclimateinitiative.org/ewebeditpro/items/0104F13006.pdf, retrieved United States Census Bureau (2005). State interim population projections by August 12, 2008. age and sex, 20042030; Table 1: Ranking of census 2000 and projected 2030 state population and change. Western Climate Initiative (2008). Draft design of the regional cap- and -trade http: / /www. census. gov/ population /projections/PressTabl.xls, retrieved program. August 26, 2008. http:// www. westernclimateinitiative .org/ewebeditpro /items /OI04FI8808.PD F, retrieved July 23, 2008. United States Census Bureau (2008). Federal, state, and local governments: State and local government finances. Yu, E.S.H., Choi, J.Y., 1985. The causal relationship between energy and GDP: an international comparison. Journal of Energy Development 10, United States Department of Energy (2004). PV FAQs. Office of Energy 249272. Efficiency and Renewable Energy. http: / /www.nrel .gov /docs /fy05osti /37322.pdf, retrieved September 10, 2008. Yu, E,S.H., Hwang, B.K., 1984. The relationship between energy and GDP: further results. Energy Economics 6, 186190. United States Environmental Protection Agency (2002). An evaluation of the South Coast Air Quality Management District's Regional Clean Air Zhang, M., Gourley, S., and Soriano, F. (2006). Analysing the terms of trade Incentives Marketlessons in environmental markets and innovation. effect on GDP and employment in the presence of low real unit labour costs. http: / /www.epa.gov /region09 /air /reclaim /reclaim - report.pdf, retrieved Australian Bureau of Statistics. http: / /www.pc.gov.au/data/assets /pdf September 11, 2008. file /0019 /61066 /zhang2.pdf, retrieved September 10, 2008. About Cascade Policy Institute: Founded in 1991, Cascade Policy Institute is Oregon's premier policy research center. Cascade's mission is to explore and promote public policy alternatives that foster individual liberty, personal responsibility and economic opportunity. To that end, the Institute publishes policy studies, provides public speakers, organizes community forums and sponsors educational programs. Cascade Policy Institute is a tax - exempt educational organization as defined under IRS code 501(c)(3). Cascade neither solicits nor accepts government funding and is supported by individual, foundation and business contributions. Nothing appearing in this document is to be construed as necessarily representing the views of Cascade or its donors. The views expressed herein are the authors own. Copyright 2008 by Cascade Policy Institute. All rights reserved. 18 Cascade Police lncritute 0 e: i i s Fe lt ct`ei I e avid ' is:, I I c H :I1e1 :e AIS -1075 3. A. Business Meeting Meeting Date: 11/13/2012 Length (in minutes): Consent Item Agenda Tide: Approve City Council Meeting Minutes Submitted By: Cathy Wheatley, Administrative Services Item Type: Motion Requested Meeting Type: Consent Agenda Public Hearing: Publication Date: Information ISSUE Approve City Council meeting minutes. STAFF RECOMMENDATION / ACTION REQUEST Approve minutes as submitted. KEY FACTS AND INFORMATION SUMMARY Minutes for the August 21 and 28 council meetings are attached. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N /:\ Attachments August 21, 2012, Council Meeting Minutes August 28, 2012, Council Meeting Minutes AIS -1077 3. B. Business Meeting Meeting Date: 11/13/2012 Length (in minutes): Agenda Title: Receive and File: Council Calendar and the Tentative Agenda Submitted By: Cathy Wheatley, Administrative Services Item Type: Receive and File Meeting Type: Consent Agenda Public Hearing Newspaper Legal Ad Required ?: Public Hearing Publication Date in Newspaper: Information ISSUE Receive and File: Three -Month Council Calendar and the Tentative Agenda STAFF RECOMMENDATION / ACTION REQUEST N/A KEY FACTS AND INFORMATION SUMMARY N/A OTHER ALTERNATIVES N/A COUNCIL OR CCDA GOALS, POLICIES, MASTER PLANS N/A DATES OF PREVIOUS CONSIDERATION N/A Attachments Council Calendar Tentative Agenda Agenda Item No. For Agenda of November 13, 2012 UI mr MEMORANDUM TIGARD TO: Honorable Mayor & City Council /City Center Development Agency Board FROM: Cathy Wheatley, City Recorder RE: Three -Month Council /CCDA Meeting Calendar DATE: November 6, 2012 November 6 Tuesday City Center Development Agency – 6:30 p.m., Red Rock Creek Conference Room 12 Monday Veteran's Day Observed – City Hall offices closed 13* Tuesday Council and City Center Development AgencyBusiness Meeting – 6:30 p.m., Town Hall 20* Tuesday Council Workshop Meeting – 6:30 p.m., Town Hall 22 Thursday Thanksgiving – City Hall offices closed 27* Tuesday Council Business Meeting – 6:30 p.m., Town Hall December 4 Tuesday Council Meeting and City Center Development Agency Meeting – Town Hall – 6:30 p.m. 11* Tuesday Joint Lake Oswego Council Meeting – 5:30 dinner; 6 -7:30 meeting followed by Tigard Council Business Meeting – 7:45 p.m., Town Hall 18* Tuesday Council Meeting – Mayor's Farewell Reception, Remarks and Blue Ribbon Task Force Report – 6:30 p.m., Town Hall 25* Tuesday Christmas – City Hall offices closed January 1 Tuesday New Year's Day – City Hall offices closed 8* Tuesday Council Meeting - Reception, Oath of Office Ceremony, State of the City, Elect Council President – 6:30 p.m., Town Hall 10 Thursday Council Groundrules Review; Goal Setting Meeting – Fanno Creek House, 9 a.m. – 5 p.m. 15* Tuesday Council Workshop Meeting -6:30 p.m., Town Hall 22 Tuesday Council Business Meeting –6:30 p.m., Town Hall Regularly scheduled Council meetings are marked with an asterisk ( *). I: \adm \city council \council calendar \3 -month calendar for e mtg 121113.doc Key: Meeting Banner ❑ Business Meeting O Study Session ❑ Special Meeting CI Consent Agenda ❑ Meeting is Full . Workshop Meeting ❑ City Council Tentative Agenda 11/6/2012 1:55 PM - Updated Form Meeting Submitted Meeting Inbox or Date By ,Type Title Department Finalized 801 11/06/2012 C Wheatley AAA CCDA - November 6, 2012 Meeting Canceled 824 11/20/2012 Carol Krager AAA Meeting Date: November 20, 2012 1068 11/20/2012 Cathy CCWKSHOP 1 30 Minutes - Update from Tualatin Valley Fire & Rescue - Administrative MartyW, City Wheatley Chief Duyck Services Manager 1021 11/20/2012 Greer CCWKSHOP 2 10 Minutes - Briefing on an Amendment to an Public Works Gaston G, Conf Gaston Intergovernmental Agreement to Construct a Turnaround Executive Asst on Metro Property at Woodard Park 1065 11/20/2012 Judith Gray CCWKSHOP 3 45 Minutes - Southwest Corridor Plan Update (cw is Community Gray J, Sr checking with Judith - guests for this item ?) Development Transportation Planner 1062 11/20/2012 Darren CCWKSHOP 4 45 Minutes - River Terrace Community Plan Briefing Community Wyss D, Senior Wyss Development Planner 1055 11/20/2012 Sandy CCWKSHOP 5 40 Minutes - Executive Session: Conduct Annual 10/03/2012 Zodrow Performance Review for City Manager Total Time: 170 of 180 minutes have been scheduled r 'I is \adm \carol \tentatv ag \2012 \tentative agenda for november 13 council packet.docx Key: Meeting Banner ❑ Business Meeting ❑ Study Session 0 Special Meeting 0 Consent Agenda ❑ Meeting is Full . Workshop Meeting a City Council Tentative Agenda 11/6/2012 1:55 PM - Updated 825 11/27/2012 Carol AAA Meeting Date: November 27, 2012 Krager • II 1054 11/27/2012 Greer ACCSTUDY 30 Minutes - Briefing on City and Community Recreation Public Works Martin S, Parks Gaston Inventory Manager 1069 11/27/2012 Loreen ACCSTUDY 15 Minutes - Executive Session - ORS 192.660(2)(f) - Exempt II 10/25/2012 Mills Public Records 1023 11/27/2012 Greer Gaston ACONSEN Conserititem the Mayor to. an Amendment Public Works Gaston G, Conf to an Intergovernmental , Agreeme wit` 1400 Piave` a Executive Asst Portion thi Property neat' Woodard 'k 978 11/27/2012 Todd Prager CCBSNS 40 Minutes - Urban Forestry Code Revisions - Land Use Community Daniels M, Elements Development Assoc. Planner 979 11/27/2012 Todd Prager CCBSNS 40 Minutes - Urban Forestry Code Revisions - Non Land Use Community Daniels M, Elements Development Assoc. Planner 1012 11/27/2012 Gary CCBSNS 30 Minutes - Projections Into Required Yards Code Amendment Community Wheatley C, City I Pagenstecher Development Recorder �J �I is \adm \carol \tentatv ag \2012 \tentative agenda for november 13 council packet.docx Key: Meeting Banner ❑ Business Meeting ❑ Study Session ❑ Special Meeting ❑ Consent Agenda ❑ Meeting is Full Workshop Meeting ❑ City Council Tentative Agenda 11/6/2012 1:55 PM - Updated 802 12/04/2012 Cathy AAA Council and CCDA - December 4, 2012 Wheatley i I 1074 12/04/2012 Cathy CCDA 1 30 Minutes - Presentation from Greater Portland, Inc. Administrative Wheatley Services 849 12/04/2012 Greer CCDA 2 10 Minutes - Capital Improvement Plan Update Public Works Stone Mike, City Gaston Engineer 1071 12/04/2012 Sean CCDA 3 15 Minutes - Discussion of Strategies for Vacant Community Farrelly S, Redev Farrelly Properties and Targeted Improvement Program Development Project Manager 1070 12/04/2012 Sean CCDA4 25 Minutes - Executive Session- Property Acquisition Community 10/25/2012 Farrelly Development Total Time: 80 of 110 minutes have been scheduled II is \adm \carol \tentatv ag \2012 \tentative agenda for november 13 council packet.docx Key: Meeting Banner ❑ Business Meeting ❑ Study Session ❑ Special Meeting ❑ Consent Agenda ❑ Meeting is Full . Workshop Meeting ❑ City Council Tentative Agenda 11/6/2012 1:55 PM - Updated 827 12/11/2012 Carol AAA Meeting Date: December 11, 2012 Krager No study session. Special - Joint meeting with LO 5:30 -6 dinner 6 -7:30 joint meeting 7:45 Tigard City Council meeting I - — -_ —_ ___. II 1001 12/11/2012 Liz Lutz ACONSENT Consent Item - Appoint Budget Committee Financial and Information Lutz L, Conf Exec I Members Services Asst F �_____. -_ _.__ _. _- -- - {I 1067 12/11/20123 BengtsoniCCBSNS ill 5 Minutes - Proclaim Human Rights Week City Management 1110/29/2012 1022 12/11/2012 Sean CCBSNS 2 60 Minutes - Legislative public hearing for Community Development Farrelly S, Redev I Farrelly Downtown Connectivity Plan Code Amendments Project Manager 1063 12/11/2012 Darren CCBSNS 3 40 Minutes - Public Hearing - River Terrace Community Development Wyss D, Senior I1Nyss Comprehensive Plan Amendment Planner Total Time: 105 of 110 minutes have been scheduled 828 112/18/2012 C Krager AAA Meeting Date: December 18, 2012 1031 12/18/2012 Liz CCWKSHOP 60 Minutes - Farewell reception for Mayor Dirksen City Management Newton . 1032 12/18/2012 Liz CCWKSHOP 45 Minutes - Mayor's Blue Ribbon Task Force City Management Newton Report is \adm \carol \tentatv ag \2012 \tentative agenda for november 13 council packet.docx Key: Meeting Banner ❑ Business Meeting ❑ Study Session ❑ Special Meeting ❑ Consent Agenda ❑ Meeting is Full . Workshop Meeting ❑ City Council Tentative Agenda 11/6/2012 1:55 PM - Updated • 1037 01/08/2013 Cathy Wheatley AAA January 8, 2013 - State of the City; Oaths; Photos, Elect Council President II 1066 01/10/2013 Cathy Wheatley CCSPEC City Council Groundrules Discussion and Administrative 2013 Goal Setting Meeting - 9 a.m. to 5 Services p.m. - Fanno Creek House .l 1038 01/15/2013 Cathy Wheatley AAA January 15, 2013 - Council Workshop Meeting i . II 1053 01/15/2013 CCWKSHOP 15 Minutes - Annual Police Department Police MartyW, City Temporary Holding Facility Tour and Manager Inspection Total Time: 15 of 180 minutes have been scheduled 1039 01 /22 /2013ICathy WheatleylAAA January 22, 2013 Council Business Meeting I I 705 01/22/2013 Cheryl Caines CCBSNS 20 Minutes - Annexation Hearing for River Community Caines C, Assoc Terrace Phase II (UGB Area 63 & Roy Development Planner Rogers West) Total Time: 20 of 110 minutes have been scheduled • is \adm \carol \tentatv ag \2012 \tentative agenda for november 13 council packet.docx r AIS -905 3. C. Business Meeting Meeting Date: 11/13/2012 Length (in minutes): Consent Item Agenda Title: Receive and File: Hall Boulevard Condition Assessment Prepared For: Mike Stone Submitted By: Greer Gaston, Public Works Consent - Item Type: Receive and File Meeting Type: Receive and File Public Hearing: No Publication Date: Information ISSUE Receive and file the Hall Boulevard Condition Assessment. STAFF RECOMMENDATION / ACTION REQUEST This report is provided as information to the Council with no recommendation from staff at this time. Given the estimated costs reported here for on -going maintenance and /or improvement to a minimum standard acceptable to the City, Hall Boulevard will remain in ODOT's jurisdiction. No action is requested; this is a receive and file item. KEY FACTS AND INFORMATION SUMMARY A 3 -mile section of Hall Boulevard, from Locust Street to Durham Road, lies within Tigard's city limits. This section of Hall Boulevard is a state highway under the jurisdiction of the Oregon Department of Transportation (ODOT). Although the city has received no formal request, ODOT staff has raised the possibility of Tigard assuming jurisdiction of the section of Hall Boulevard that lies within city limits. The purpose of the attached assessment is to document the existing condition of Hall Boulevard and estimate the cost of immediate and long -term improvements and maintenance. The report serves to inform consideration of the question of whether Tigard should take jurisdiction of Hall Boulevard in the future for such reasons as coordinating Tigard's and ODOT's expectations about the future capacity of the roadway. There is not sufficient transportation modeling to recommend a future roadway width. Tigard staff prepared the attached report based on in -field inspections, roadway condition assessments, as -built drawings and maintenance information from ODOT. The assessment concludes that approximately $31 million in improvements would be required to bring Hall Boulevard up to current city standards. OTHER ALTERNATIVES Not applicable COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS None DATES OF PREVIOUS COUNCIL CONSIDERATION Attachments Hall Boulevard Condition Assessment " I HALL B [ ---- 3 -77 Hall Boulevard Condition Assessment City of Tigard 11/6/2012 Table of Contents Executive Summary 3 Cost Summary 3 Conclusion 3 Evaluation Background and Purpose 4 Evaluation Area 4 Cost and Issues Inherent in Assuming Jurisdiction of Hall Boulevard 4 Functional Classification and Planning Context 4 Traffic Counts 5 Pavement Widths 5 Pavement Condition 6 Fanno Creek Bridge #04969 7 Ash Creek Bridge #05215 8 Traffic Signals 8 Major Project Needs 9 Project needs Identified in Tigard's Transportation System Plan (TSP) 9 Right -of -Way Issues 10 Storm Drainage System 11 Intersection Capacity Issues 12 Streetlights 12 Sidewalks 12 Curb Ramps 13 Signs and Posts 14 Accident History 14 Access Management Issues 16 Utilities in the Right -of -Way 16 Complaints / Ongoing Issues 16 Maintenance Needs 16 Site - Specific Issues 17 Cost Summary 18 Summary 19 2 Executive Summary Hall Boulevard, in the City of Tigard, is currently a state highway under the jurisdiction of the Oregon Department of Transportation (ODOT). ODOT staff frequently raise the possibility of making this corridor a city street. The purpose of this report is to outline the condition of the roadway and potential costs for immediate and long -term improvements /maintenance of the three -mile section of Hall Blvd from Durham Road to the city limits just north of Locust Street. Cost Summary Hall Boulevard has significant immediate needs, and significant issues resulting from years of deferred maintenance. It would cost approximately $12 million to address these needs, including: • Pavement Rehabilitation $3.4 million (cost for complete grind /overlay) • Safety Projects at Intersections $1.1 million (improvements at McDonald and Pfaffle, including curb ramps) • Storm Drainage System Repairs $2.0 million • Fanno Creek Bridge Replacement $5.5 million The approximate annual cost to maintain this section of Hall Boulevard in accordance with our current practices for Arterials is $372,000 per year. This includes the cost to maintain the street, storm, bridge and traffic signal systems, annualized paving costs, and responding to citizen concerns. It would cost an additional $18 million to improve Hall Blvd to provide the facilities generally expected on an urban arterial in Oregon. This would include a three -lane section with sidewalks, bike lanes, and a storm drainage system that would accommodate expected rainfall events. Conclusion There are significant needs and liabilities that have developed along Hall Boulevard in recent years as ODOT maintenance funds and crews have been directed to higher -priority highways. Estimated Immediate Need: $12 Million Estimated Immediate Need Annual Maintenance: $372,000 /year Estimated Facility Improvement Need: $18.3 Million Estimated Facility Improvement Need Annual Maintenance: $20,000 /year Estimated Improvement to Current City Standards: $31 Million 3 Evaluation Background and Purpose Hall Boulevard, in the City of Tigard, is currently a state highway under the jurisdiction of the Oregon Department of Transportation (ODOT). ODOT staff frequently raise the possibility of making this corridor a city street. Citizen complaints have been received about the condition and function of Hall Boulevard. The purpose of this report is to outline the condition of the roadway and potential costs for immediate and long -term improvements /maintenance. Evaluation Area This evaluation focuses on the section of Hall Boulevard that is fully within the City of Tigard. This section extends from the southern terminus at Durham Road to the northern side of Hall Blvd at its intersection with Locust Street. The length of this section is about 15,800 feet, or three miles. Cost and Issues Inherent in Assuming Jurisdiction of Hall Boulevard Hall Boulevard has significant maintenance needs that have not been addressed, such as portions lacking sidewalks, overlays, bridge maintenance and functioning drainage. Other portions of Hall have been built or upgraded to meet city standards for an arterial street and are in relatively good condition. This report evaluates the key elements of this transportation corridor, focusing on four key questions: 1) What is the current condition of Hall Boulevard? 2) What work and costs are necessary to address deferred maintenance, immediate safety needs, and preserve the existing assets of the corridor? What ongoing costs are necessary to maintain this corridor? 3) What work and costs are necessary to provide the basic facilities expected in an urban arterial transportation corridor? 4) What work and costs are necessary to bring Hall Boulevard up to current standards and plans? Functional Classification and Planning Context Hall Boulevard is classified as an Arterial street in Tigard's Transportation System Plan (TSP) and Washington County's Transportation System Plan. ODOT classifies Hall Boulevard as a District level highway, their lowest of four classification levels. 4 ODOT has required that Tigard's TSP show Hall Blvd as a three -lane road north of Pacific Highway 99W and a five -lane road south of 99W. Traffic Counts The most recent (2011) ODOT Transportation Volume Tables list the following traffic volumes: Count Location on Hall Boulevard 9300 0.02 mile north of S.W. Locust Street 11200 0.02 mile north of S.W. Oak Street 11700 0.02 mile north of S.W. Pfaffle Street 9500 0.02 mile north of Pacific Highway West (OR99W) 10000 0.02 mile south of Pacific Highway West (OR99W) 10800 0.02 mile south of Scoffins Street 11700 0.01 mile south of S.W. Commercial Street 13900 0.02 mile south of S.W. Burnham Street 13400 0.02 mile south of S.W. Omara Street 16800 0.02 mile north of S.W. Bonita Road 12900 0.02 mile south of S.W. Bonita Road These estimates are extrapolations based on (2008) traffic volumes on Hall Blvd which were constricted by severe capacity deficiencies at the Hall /99W intersection. A recent construction project has addressed these deficiencies and has likely resulted in higher traffic volumes. Actual traffic volumes have not been fully measured at this time. Pavement Widths The pavement width on this arterial street varies. Some portions are relatively narrow, with two lanes plus bike lanes, while other sections fronting new development have been built with a five -lane half - width, in accordance with ODOT requirements. Pavement widening would be necessary in some areas to meet current standards (either city or state). The table below shows pavement width by length and percentage of Hall Boulevard. Width Length (ft) Percentage Two Lane Total Width 5530 35% Three Lanes Total Width 9320 59% One Side Widened for Five Lanes; Other Side Narrower 950 6% Five Lanes Total Width 0 0 5 Pavement Condition .� a.. w . "� f ., _ 4 Y • 'CI* Yom. ----i ': ,A-1) . ,-- . !A `: : -kf+ '"k A v" S . " .t- r° yf>4 . � # Y .e. j . ' ., :. S , - ,, L y s+ -, r.YA. '7;,';, A 3 4 y i "' 7 SSS q� :i ,�! 3� i- ..,`,7""'"' � C .rs. r The pavement has been deteriorating due to the 10,000 to 18,000 vehicles passing through per day. Most of the street (87 percent) is in fair, poor, or very poor condition. Signs of significant fatigue include: cracking, potholes, pavement distortions, rutting, weathering, and other deterioration throughout the corridor. Pavement Condition Length (ft) Percent Rehabilitation Cost Very Good (81 -100) 1145 7.3% 0 Good (61 -80) 905 5.7% 0 Fair (41 -60) 4935 31.2% $494,000 Poor (21 -40) 3325 21.0% $665,000 Very Poor (<20) 5490 34.8% $2,196,000 Total Rehabilitation Cost $3,355,000 Hall Boulevard, in its current condition, would require approximately $3.4 million worth of pavement rehabilitation to address the deferred maintenance needs of its driving surface and supporting structure. This is roughly equivalent to two years of our citywide PMP budget. If this work were to be completed and paid for over five years, it would necessitate $671,000 per year in additional revenue. If the current PMP fee is adjusted to provide this revenue, the residential rate would need to increase from $5.45 to $7.31 per house per month and the nonresidential rate would need to increase from $1.23 to $1.72 per parking space equivalent per month. If additional funds are not provided, and this work is completed with existing funds, the result would be a decrease of over four points in our citywide pavement condition index. It would no longer be feasible to meet Council's adopted goal to `hold the line' by keeping our citywide pavement condition index from deteriorating below 67, even with all the progress made in recent 6 years, and our citywide pavement condition would be on a declining trajectory for the future unless the fees are increased. Fanno Creek Bridge #04969 The existing bridge over Fanno Creek #04969 will require widening to accommodate the road along with the need to raise it above the 100 -year flood level. The current sufficiency rating of the bridge is 83.5, which indicates good structural condition with no load limit. However, there are some erosion issues adjacent to the approach abutments which need addressing. A preliminary estimate for the cost of widening, raising, and /or replacing this structure is $5.5 million. a �, • tVal 4! 1 4st s' r: p — • ' Y j 7 Maintenance of this bridge is estimated at approximately $20,000 per year. Ash Creek Bridge #05215 The existing bridge over Ash Creek #05215 (north of Oak Street), appears to have adequate structural condition. Hall Boulevard is three lanes wide as it crosses this bridge. The current sufficiency rating of the bridge is 98.1, which is very good with no load limit. Maintenance of this bridge is estimated at $5,000 per year. 1 - '1 • I. 1 ' i ffJ/ Traffic Signals Currently, there are eight traffic signals along Hall within Tigard city limits: Locust, Oak, Hunziker /Scoffins, Burnham, Wall, McDonald, Bonita, and Sattler /Ross. It would be reasonable to figure the signals would have the same maintenance costs as the current county- maintained signals. If so, the additional signal maintenance costs would be approximately $18,000 per year. 8 The condition of the traffic signal heads, poles, mastarms, and other equipment along this roadway is generally adequate for current needs and matches the condition of the traffic signals owned by the city. These would be similar to the needs of traffic signals currently owned by the City of Tigard. - Electricity bills for most of the traffic signals along Hall Boulevard are already paid by the city. This includes: Hunziker /Scoffins ($1,200 per year), Burnham ($600 per year), Wall ($900 per year), McDonald ($500 per year), Bonita ($600 per year), and Sattler /Ross ($500 per year). Power costs for the remaining signals, at Locust and Oak, would total approximately $1,500 per year. , . " r fi r, r '� *, 41, ! ` , • ' ^° - v SW HALL BLVD '.: - ` • .., -4, + ` • Major Project Needs Tigard's 2035 Transportation System Plan (TSP) identifies 13 needed projects along this section of Hall Blvd, shown in the table below: Project needs Identified in Tigard's Transportation System Plan (TSP) Project Estimated Name Description # Timeframe Cost Hall /Hunziker /Scoffins Realign offset intersection to 11 Intersection Realignment cross intersection to alleviate Near -Term $5,000,000 congestion and safety issues Extend south to Tualatin 21 Hall Extension Long -Term $60,000,000 across the Tualatin River Part of Part of a larger project to $1,000,000 of Hall /Bonita Intersection Near -Term 36a widen Bonita to five lanes $20,000,000 Part of Part of a larger project to $1,000,000 of 40 Hall /Durham Intersection widen Durham to five lanes Mid Term $8,000,000 9 Hall Widening — Oleson to Widen to 2-/3 lanes; build 45a 99W sidewalks and bike lanes; Near -Term $3,500,000 safety improvements Hall Widening — 99W to Widen to 4 -/5 lanes, 45b Fanno Creek depending on corridor plan Near Term $2,500,000 45c Hall Widening — Fanno Widen to 4 -/5 lanes, Mid Term $2,500,000 Creek to McDonald depending on corridor plan Hall Widening — Widen to 4 -/5 lanes, 45d McDonald to Bonita depending on corridor plan Near Term $1,500,000 Hall Widening — Bonita to Widen to 4 -/5 lanes, 45e Durham depending on corridor plan Near Term $3,000,000 45f Hall Fanno Creek Bridge Replace bridge Near -Term $5,000,000 Replacement 49 Pfaffie /Hall Intersection Traffic signal or other Near -Term $500,000 intersection treatment 60 Hall/McDonald Intersection improvements Near -Te rm $400,000 Intersection (right turn lane, etc.) P20 Hall Sidewalks Fill sidewalk gaps from Near -Term $1,800,000 Hunziker to Durham Total Capital Project Needs $87,700,000 Near -Term Project Needs $24,200,000 Mid -Term Project Needs $3,500,000 Long -Term Project Needs $60,000,000 From the projects listed above, the Pfaff le /Hall intersection signal and Hall /McDonald intersection right turn lane are considered immediate needs to address safety issues. The TSP lists an additional $23.3 million in near -term projects, $3.5 million in mid -term projects and $60 million in long -term projects along Hall Blvd in Tigard. Right -of -Way Issues The current standards for right -of -way width along Hall Boulevard are a 50 -foot half -width south of Pacific Highway 99W and a 38 -foot half -width north of 99W. The vast majority of the street (91 percent) does not meet current standards for right -of -way width. More than two- thirds of the street (68 percent) has a right -of -way width that is significantly (more than 10 feet) less than the standard. More than half of the roadway does not have enough right -of -way space to provide the basic facilities (such as sidewalks) that would be expected in an urban corridor such as this. 10 Right -of -Way Width Length (ft) Percent Meets or Exceeds Width Standards on Both Sides 1480 9.4% Within 10 Feet of Standards or One Side Not Adequate 3520 22.3% 11 to 20 feet Less Than Standards 4720 29.9% More than 20 Feet Less Than Standards 6080 38.5% Several areas have been identified where the sidewalk, drainage system, or some other important aspect of the street appears to be outside of the public right -of -way. These issues will need to be cleared up, likely by purchasing right -of -way and /or acquiring easements for these facilities. This cleanup is estimated to cost $2 million. Storm Drainage System Ys . 111111lis MES = _ _ -I " � 40" } .r The condition of the drainage network is unknown; pipe functionality is not quantifiable without extensive inspection data and about 65 percent of the pipe sizing is unknown. Approximately 30 percent of the field - identified drainage structures are full of debris and are not functioning within the system. Two water quality manholes were identified in the field and both were full of debris. The majority of catch basins are flow - through basins without sumps to collect oil, heavy metals, etc. Aside from the shallow roadside vegetative ditches, and one water quality compost structure near the intersection of Hall Boulevard and Knoll Drive, there is no water quality treatment provided. In order to assess the existing condition and effects of deferred maintenance, it would be necessary to clean and inspect all pipes and structures. It is likely that there are many failed pipes and structures in the system that would need to be replaced immediately. One flooding hazard has been identified between properties located at 10915 and 10965 SW Hall Blvd. Two 24" concrete culverts discharge into an undersized conveyance channel. Access rights to 11 the channel are unknown, and it has not been cleaned or maintained since 1986. The channel accepts a tributary to Ash Creek. To bring the system up to standards and provide drainage in areas of new curb and sidewalk, it is estimated the necessary improvements would cost $3 million. Intersection Capacity Issues Intersection capacity issues exist at the McDonald, Bonita, and Hunziker /Scoffins intersections. Traffic delays occur at each of these intersections on a daily basis, typically in the afternoon peak hours. Streetlights Much of the corridor lacks street lighting. The estimated cost of installing these lights would be $300,000. Yearly electricity and maintenance costs are estimated at $20,000. Sidewalks rJ 4 olee fire T The current standard for an arterial street is an eight foot sidewalk in good condition on both sides of the street. The standard also includes a five -foot landscape strip between the sidewalk and curb. With 15,800 lineal feet of street, this would mean 31,600 lineal feet of sidewalk. 12 Sidewalk Characteristics Length (ft) Percent Meets Standards — Good Condition, 8+ Feet Wide, 5+ Feet 2200 7.0% Landscape Strip Adequate Condition, 8+ Feet Wide, Lacking Landscape Strip 8080 25.6% Adequate Condition, 5 -7 Feet Wide, with Landscape Strip 410 1.3% Adequate Condition, 5 -7 Feet Wide, No Landscape Strip 11040 34.9% Existing, but Inadequate 420 1.3% No Sidewalk 9450 29.9% Most (69 percent) of the sidewalks along Hall Boulevard are in adequate or better condition, with some sidewalk in very good condition, but 30 percent of the street lacks sidewalks. The cost to build these sidewalks is estimated at $8 million. These costs are included in the TSP- identified projects. Curb Ramps • • tot • <� 4001ti The curb ramps (or lack thereof) along Hall Boulevard were inventoried and evaluated based on current standards. Key aspects of current standards are: acceptable longitudinal slopes, acceptable cross - slopes on the continuing sidewalks, acceptably flat resting spaces, and truncated domes providing a tactile warning to the visually impaired when they are approaching traffic areas. 13 Curb Ramp Current Condition Number Replacement Cost Meets Current Standards 30 $0 Ramp does not meet current standards, but is 35 $105,000 otherwise in generally good condition Ramp is in `Fair Condition' – still usable, but 11 $70,000 requires extra maneuvering Ramp is in poor condition – either not usable 2 $20,000 or very difficult to use Walkway exists, but there is no ramp 21 $210,000 connection No curb or sidewalk to connect to 9 $90,000 Asphalt pathway connection 14 $140,000 Total Retrofit Cost $635,000 Constructing new ramps and repairing those in poor condition would cost approximately $230,000. An additional $300,000 would be necessary to provide ramps at pathway and new sidewalk connections, and replace `fair' ramps. These costs are included in the $8 million to provide adequate sidewalks. Signs and Posts Most of the signs along the roadway are attached to wooden posts; it is the city's standard is to use metal posts. Both types of posts are considered acceptable. Over time, the wooden posts would be replaced with metal as new signs are installed. The condition of the signs — material, color retention, retroreflectivity, corrosion, etc. — generally matches that of existing signs on city streets. Accident History State crash data includes 132 recorded crashes on Hall Boulevard in the three -year period from January 1, 2007, through December 31, 2009. These crash rates are within the normal range for streets of this nature. The location and severity of these crashes is listed below: 14 Property Severe Moderate Minor Damage Location Fatal Injury Injury Injury Only Total Locust 0 0 1 3 3 7 Oak 0 1 1 0 3 5 Joelle 0 0 0 0 1 1 Lucille 0 0 0 0 2 2 Pine 0 0 0 2 1 3 Pfaff le 0 0 3 2 7 12 Pacific Hwy 99W 0 0 4 16 26 46 Garden 0 0 0 0 1 1 Knoll 0 0 0 1 1 2 Hunziker 0 0 0 1 4 5 Scoffins 0 0 0 1 2 3 Commercial 0 0 1 2 1 4 Burnham 0 0 2 1 2 5 O'Mara 0 0 2 0 1 3 Wall 0 0 0 1 2 3 McDonald 0 0 1 2 10 13 Bonita 0 0 0 2 0 2 Murdock 0 0 1 0 1 2 Sattler /Ross 0 0 2 2 3 7 Langtree 0 0 0 1 0 1 Hamlet 0 0 0 0 1 1 Durham 0 0 0 2 2 4 Total Crashes 0 1 18 39 74 132 The intersection project at Hall /Pacific Highway 99W is anticipated to reduce crash rates at this location. Crash data indicate safety issues at Hall / Pfaffle intersection. Potential contributing factors include a high volume of traffic turning at this unsignalized intersection and sight distance issues (due to a bridge railing and vertical curve) for drivers turning from Pfaff le Street. The TSP includes installation of a traffic signal at this intersection, which is considered an immediate need with an estimated cost of $500,000. This crash data also indicates a relatively high frequency of crashes at Hall /McDonald intersection. These lower - severity, often rear -end crashes are likely related to capacity issues at this intersection. The TSP includes a project to add capacity at this intersection, and this project may be considered an immediate need with an estimated cost of $400,000. 15 Access Management Issues There are many driveways along Hall Boulevard that have detrimental effects on the flow and safety of vehicular traffic, cyclists, and pedestrians in the area. These driveways are often close to street intersections or other driveways, and /or have poor configurations that may lead to safety issues. As access is a major issue for homes and businesses, each driveway would become a potentially contentious issue for the road authority during future capital projects and development in the area. Utilities in the Right -of -Way There are many utility lines currently utilizing the Hall Blvd right -of -way. This is evidenced by the number of wires on the poles along Hall Blvd and the number of conduits strapped to the bridge over Fanno Creek. Each of these utilities will bring its own set of issues to bear on any future public or private street or drainage improvement projects in the area. Complaints / Ongoing Issues As part of this evaluation, a request was made to ODOT District 2A for records to track complaints and ongoing issues on this section of roadway. ODOT staff said they do not record site - specific issues and are unable complete this request. The City of Tigard has compiled complaints and issues commonly brought to staff and they include: • Lack of sidewalks (in each section where sidewalks are missing) • Capacity issues at Hall /McDonald intersection, especially in the afternoon rush hour • Requests for traffic signals and /or better sight distance at the Hall /Pfaffle intersection • Requests for additional crosswalks and more enforcement of crosswalk stopping laws • Complaints about the poor pavement condition • Complaints about the lack of sweeping, drainage, and other maintenance • Complaints about catch basins and other obstacles in bike lanes Correction of these issues is estimated to add about $40,000 annually. Maintenance Needs The city's streets crew maintains 148 miles of roads with an annual budget of $1.28 million. Adding three miles of Hall Boulevard to the current maintenance and upkeep program would add 2 percent more total street mileage, but 23 percent more arterial mileage to Tigard's street system. Arterials, such as Hall Blvd, typically cost more to maintain because they have more paved area and traffic wear, as do streets (such as Hall Blvd) that are in relatively poor condition. It is estimated that maintenance of Hall Blvd would add 8 percent, or $102,000 annually to the city's street maintenance needs. It is also estimated that jurisdiction of Hall Boulevard would add 5 percent, or $65,000 annually to the city's stormwater maintenance needs. Asphaltic concrete pavement deteriorates over time. A street with the traffic and other characteristics of Hall Blvd would be expected to need a pavement overlay every 12 to 15 years. 16 Dividing the cost of this overlay by its expected life calculates an annualized paving cost of approximately $120,000 per year. Site-Specific Issues The following maps provide more detail regarding the site-specific issues on Hall Boulevard. Included are aerial photos showing lane configurations, sidewalks, property lines and other issues. Markings indicate pavement condition, stormwater facilities, sidewalks, curb ramps, etc. Notes indicate other site-specific issues such as intersection capacity and flooding. 17 Cost Summary 1) What work and costs are necessary to address deferred maintenance, immediate safety needs, and preserve the existing assets of the corridor? What ongoing cost will be necessary to maintain this corridor? Immediate Need One - Time Cost Pavement Rehabilitation $3.4 Million Intersection Safety Projects $0.9 Million Pedestrian Facilities (curb ramps, etc.) $0.2 Million Storm Drainage Repairs $2.0 Million Fanno Creek Bridge Replacement $5.5 Million Total Immediate Need Costs: $12 Million Annual Costs Annual Cost General Street Maintenance $102,000 /yr Annualized Paving Cost $120,000 /yr Bridge Maintenance $25,000/yr Traffic Signal Maintenance and Electricity $20,000 /yr Administration Costs and Citizen Complaints $40,000 /yr Stormwater Maintenance $65,000 /yr Total Necessary Maintenance Cost: $372,000/yr 2) What work and costs are necessary to provide the basic facilities expected in an urban arterial corridor (adequate vehicular capacity, sidewalks, bike lanes, etc.)? Facility Improvement Need One - Time Cost Sidewalk Construction $8 Million Additional Street Lights $0.3 Million Storm Drainage Improvements $3 Million Right -of -Way for Existing Facilities $2 Million Intersection Improvements $5 Million Total Facility Improvement Cost: $18.3 Million Additional Annual Cost Annual Cost Street Light Electricity and Maintenance $20,000 /yr Total Additional Maintenance Cost: $20,000 /yr 18 3) What work and costs would be necessary to bring Hall Boulevard up to current standards and conformance with current plans (note: this would be a five -lane roadway south of Pacific Hwy 99W)? Improvement to Standards Costs One -Time Cost Street Widening (Includes ROW and Utilities) $23 Million Storm Drainage and Water Quality $5 Million Traffic Signal Equipment Replacement $3 Million Total Improvement to Standards Cost: $31 Million The total cost of improvements necessary to bring Hall Boulevard from its current condition up to city standards is estimated to be $61 million. Maintaining the corridor in its current condition is estimated to cost $372,000 per year. Summary It would cost roughly $12 million for infrastructure repairs to address immediate needs and years of deferred maintenance. Additional annual maintenance costs for the city would be approximately $372,000. It would cost an additional $18 million to provide the facilities expected along an arterial — sidewalks, bike lanes, functioning storm drainage, street lights, right -of -way acquisition, intersections with adequate capacity, and a new bridge above flood levels, etc. It would cost an additional $31 million to bring Hall Boulevard up to current standards. 19 AIS -1073 3• D. Business Meeting Meeting Date: 11/13/2012 Length (in minutes): Consent Item Agenda Title: Approve Waiver of Temporary Sign Permit Fees for Tigard Little League Prepared For: Liz Lutz Submitted By: Liz Lutz, Financial and Information Services Item Type: Resolution Meeting Type: Consent Agenda Public Hearing Newspaper Legal Ad Required ?: No Public Hearing Publication Date in Newspaper: Information ISSUE Does the Tigard City Council find that benefit to the community of waiving the temporary sign permit fees for Tigard Little League to hang two banners outweigh the $108 financial hardship to the city? STAFF RECOMMENDATION / ACTION REQUEST Consider Resolution waiving $108 of permit fees for Tigard Little League. KEY FACTS AND INFORMATION SUMMARY On October 25, 2012, Kim Kelleher from Tigard Little League emailed the city to request a waiver of permit fees charged to hang two banners (text of email attached). According to the Master Fees and Charges Schedule, Temporary Sign Permits are $54 per sign. Kim is requesting the city waive fees for two signs, totaling $108 fee waiver. TMC 3.32.070 authorizes council to waive fees for non - profits. The text of the TMC is as follows: "3.32.070 Exemptions. The City Council is authorized to waive or exempt the fee or charge imposed upon an application or for the use of city facilities and services, if a nonprofit organization requests such a waiver in writing and the Council determines that community benefit from the proposed activity outweighs the financial burden on the city. The waiver or exemption shall not excuse the nonprofit organization from compliance with other requirements of this code." Tigard Little League is a qualifying non - profit. They have made their request to waive fees in writing. If council determines that the benefit to the community outweighs the loss of $108 in permit fees, then council is authorized to waive the fees. OTHER ALTERNATIVES City Council could deny the request. COUNCIL OR CCDA GOALS, POLICIES, MASTER PLANS Tigard citizens are involved in the community and participate effectively. Programs and activities are available in the community to meet the needs of a diverse population. DATES OF PREVIOUS CONSIDERATION None. Fiscal Impact Cost: NA Budgeted (yes or no): NA Where Budgeted (department /program): NA Additional Fiscal Notes: Waiving the fees will reduce City of Tigard General Fund revenues by $108. Attachments Resolution Request Letter 1 1.1711.5 LEAGU October 25, 2012 Dear Ms. Lutz, I am contacting you in hopes of receiving a waiver from the City of Tigard for banner permits. Tigard Little League is a non - profit organization that has served kids in Tigard ageds 5 -14 for over 50 years and we are always looking for ways to keep expenses down so that we may offer the lowest registration fees possible and spend money on fields, coach training and equipment instead. We would like to put up two (2) banners announcing registration: 1. One banner would be placed on the Tigard High School fence at the intersection of Hall Boulevard and Durham Road 2. One banner would be placed on the Fowler Middle School fence at the intersection of Tiedeman Avenue and Walnut Street We would like to display these banners from December 1st through January 19 (our final day of registration). Please let me know if you require any further information and thank you very much for considering our request. Sincerely, Kim Kelleher Tigard Little League President AIS -1056 4 Business Meeting Meeting Date: 11/13/2012 Length (in minutes): 10 Minutes Agenda Title: Request for Public Input - City Manager Performance Review Criteria Submitted By: Sandy Zodrow, City Management Public Hearing - Informational Item Type: Update, Discussion, Direct Staff Meeting Type: Council Business Meeting - Main Public Hearing: Yes Publication Date: Information ISSUE Is there any public input regarding the criteria and /or process that will be used to conduct the annual performance review for the city manager? STAFF RECOMMENDATION / ACTION REQUEST Receive public input regarding the criteria or process to be used for the city manager's performance review. KEY FACTS AND INFORMATION SUMMARY On October 23, 2012, the City Council selected the review criteria and process to be used to evaluate the performance of the city manager. The purpose of this hearing is to provide the public an opportunity to give input on the criteria and process. The city manager's evaluation is scheduled to take place during an executive session on November 20, 2012. A copy of the evaluation form containing the performance criteria is attached. OTHER ALTERNATIVES N /.1 COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/.1 DATES OF PREVIOUS COUNCIL CONSIDERATION October 23, 2012 Attachments Council Appraisal Form of City Manager Council Appraisal of City Manager City of Tigard City Manager: Date: City Councilor: Mayor & Council Appraisal SECTION I: PERFORMANCE MEASUREMENT CRITERIA Please designate a rating in the appropriate box for each item, and include examples and comments which support the rating. Administrative Ability Planning: Ability to anticipate and analyze problems. Maps effective solutions. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Organizing: Ability to arrange work and efficiently apply resources. Recognizes opportunities for management and operational efficiencies. Exceeds ❑ Fully Effective ❑ Developing El Needs Improvement ❑ Comments: Timing - Opportunist: Makes decisions when sufficient information is available. Exceeds ❑ Fully Effective ❑ Developing El Needs Improvement El Comments: Analytical: In making decisions considers the best available facts, projections, and evidence. To the extent that resources permit, insures that these tools are available. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement El Comments: Job Knowledge: Has a solid understanding of all phases and departments of municipal government. Exceeds ❑ Fully Effective ❑ Developing El Needs Improvement ❑ Comments: Personnel Functions Supervision: Builds and motivates a team, provides direction, monitors and adjusts performances as necessary. Exceeds ❑ Fully Effective ❑ Developing El Needs Improvement ❑ Comments: Delegation: Effectively assigns work to others to get City business done efficiently. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Communication with Employees: Listens to employees and openly communicates in order to provide sufficient information to keep the employees motivated and part of the team. Understands their concerns. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Hiring Recognizes the value of excellent employees and hires and maintains available staff. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Labor Relations: Understands contract negotiations and contract administration. Equitably handles problems of grievances among subordinate employees. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Leadership: Motivates, encourages and seeks to develop skills and abilities in staff. Sets the standard for performance accountability by example. . Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Collaboration Skills: Builds collaborative trust with staff. Treats staff with respect. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Risk Management: Implements effective programs to limit liability and loss. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement_❑ Comments: I I Page 2 of 10 Budget and Finance Financial Management: Accurately and concisely reports and projects the financial condition. Management practices and policies are designed to maintain or achieve a sound long -range financial condition. Uses debt cautiously, plans for the long -term replacement and maintenance of equipment and infrastructure. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Operational Efficiency: Obtains the best possible end result for the money spent. Monitors efficiency service improvement and effectiveness for all programs. Most economical utilization of manpower, materials and machinery. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Community Relations Public Service: Commitment to the service of the public. Recognizes and respects the value of public service. Projects a positive image of the City. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Forges Compromises: Has the ability to resolve conflicts with little or no assistance from outside sources. Is a good negotiator. Is credible and builds trust in the community. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Sensitivity: Listens and understands the positions and circumstances of others. Communicates that understanding. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Communication with the Public: Approachable and responsive to the public and takes their concerns and problems seriously, regardless of how insignificant the questions or complaints seem to be. Is able to represent Council at community events and forums. Pursues an outreach style of management as a spokesperson for city issues. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Public Involvement: Involves citizens in city issues and programs. Provides link between the Council and business community. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Media Relations: Develops effective relationships and positive image with public /media. Is able to accurately articulate City Council and community goals. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Page 3 of 10 Relation with Council Communication with Council: Accurately interprets the direction given by the Council. Provides Council with well informed concise oral and written communication. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Accepts Direction: Aggressively responds to the direction of the majority of the Council. Not sidetracked to the minority but recognizes their concerns. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Research: Prepares fully researched materials for Council action including alternatives and recommendations. Analyzes issues and presents policy alternatives to Council with documented justified recommendations. Assures that material is concise and easily understandable. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Intergovernmental Relations Develop Relations: Develops good working relationships with other local, county, regional, state and federal agencies. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Representative: Effectively represents the City on commissions, boards, and committees. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Resource Developer: Exerts appropriate influence on decisions affecting Tigard from other agencies, gaining resources to benefit the City. Has basic understanding of federal and state grants and appropriations. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Interpersonal Skills Creativity: Implements effective and creative solutions to resolve City problems. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Honest, Fair: Consistently demonstrates integrity and honesty, straightforward and impartial. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Page 4 of 10 Adaptable: Responds positively to a changing work environment and changing local conditions. Does not cling to the status quo for its own sake. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Resilient: Energy and motivation maintained in spite of constant demands. Handles stress well. Exceeds ❑ Fully Effective ❑ Developing El Needs Improvement ❑ Comments: Ethical: Conforms to the high standards of the profession. Exceeds ❑ Fully Effective ❑ Developing ❑ Needs Improvement ❑ Comments: Professional Development: Takes action to acquire new knowledge and skills. Encourages employees to do the same. Exceeds ❑ Fully Effective El Developing El Needs Improvement ❑ Comments: Judgment: Thinks logistically and utilizes independent thought to make sound decisions. Exceeds ❑ Fully Effective El Developing ❑ Needs Improvement ❑ Comments: Economic Growth Economic Development: Identifies and helps Council create conditions which foster economic development. Understands importance of, and knowledge of factors and methods for, maintaining existing businesses, as well as recruiting new ones. Recognizes relationship of local economy to region and beyond. Develops policies and guidelines to reasonably allocate costs of public improvements and services related to economic development between the public and private sectors. Exceeds El Fully Effective ❑ Developing ❑ Needs Improvement Comments: CITY WIDE CORE VALUES The City of Tigard is dedicated to setting the standard for service excellence. To that end, the organization is committed to job performance behaviors that demonstrate the City of Tigard's reputational values. Those values are: ❖ Get It Done ❖ Do the Right Thing Respect and Care Please provide a rating and appropriate supportive narrative in each of the Core Values that reflects how the employee incorporates these values into their daily work, or where they need to expend greater effort to demonstrate these values in their job. Page 5 of 10 GET IT DONE: Means that we will go the extra mile to exceed people's expectations; meet or beat deadlines; establish clear expectations and timelines so that there are no misunderstandings; offer to help when we see the need; and keep people informed of progress and steps to completion DEVELOPMENT NEEDED SUCCESSFUL EMPLOYEE EXCEPTIONAL PERFORMANCE COMMENTS: Explain how the employee is meeting or not meeting the specific performance expectations in this area. DO THE RIGHT THING: Means that we will focus on solutions, not excuses; if we see a problem we will own it until we take care of it or until we can find the right person to handle it; find opportunities to say "yes" versus "no "; be proactive, rather than waiting for something to become a problem; and look for options and alternative ways to solve problems. DEVELOPMENT NEEDED SUCCESSFUL EMPLOYEE EXCEPTIONAL PERFORMANCE COMMENTS: Explain how the employee is meeting or not meeting the specific performance expectations in this area. RESPECT AND CARE: Means that we will treat people well; welcome suggestions and diverse points of view; greet each other and the customers with a smile and a friendly tone; build collaborative and cooperative relationships with others; treat them with respect; and say thank you. DEVELOPMENT NEEDED SUCCESSFUL EMPLOYEE EXCEPTIONAL PERFORMANCE COMMENTS: Explain how the employee is meeting or not meeting the specific performance expectations in this area Page 6 of 10 SECTION II: ESTABLISHMENT OF GOALS & OUTCOMES FOR UPCOMING RATING PERIOD Outline the goals for the upcoming period and the desired outcomes. The City Manager's goals should be related to the Community goals. The City Manager goal may include a new project or may include a goal that is an ongoing fundamental portion of the position. Any number of goals may be set. The desired outcome is the standard against which performance will be measured. These should be specific and measurable including timeframes. Individual Goal: ' Desired Outcome :: Dept /City Goal: .' Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Page 7 of 10 Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: Desired Outcome: Dept/City Goal: Individual Goal: Desired Outcome: Dept /City Goal: Individual Goal: nP�;red O creme: -.- SECTION III: COUNCIL'S SUMMARY COMMENTS The following is an overall performance rating for the City Manager, recommended action by the Council, and sign off. The City Manger's signature does not necessarily mean that the City Manager agrees with the rating, only that the evaluation process has taken place. Summary Comments: Page 8 of 10 Overall Rating (check one): Exceeds: Exceeds expectations in all or majority of categories. Fully Effective: Meets expectations in all categories (may exceed in some) Developing: does not meet expectations in one or more category Needs Improvement: Does not meet expectations in majority of categories City Manager's Signature Date Mayor's Signature Date Page 9 of 10 6.-e s6 m o 1 AGENDA ITEM No. 4 Date: November 13, 2012 PUBLIC HEARING TESTIMONY SIGN -UP SHEETS Please sign on the following page(s) if you wish to testify before the City Council on: City Manager Performance Review Criteria Due to Time Constraints there is a 3- minute Time Limit on Testimony AGENDA ITEM No. 4 Date: November 13, 2012 PLEASE PRINT Proponent — (Speaking In Favor) Opponent — (Speaking Against) Neutral Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. NI 0 Y` Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. Name, Address & Phone No. AIS -976 5. Business Meeting Meeting Date: 11/13/2012 Length (in minutes): 60 Minutes Agenda Tide: Continuation of Public Hearing - Urban Forestry Code Revisions Submitted By: Marissa Daniels, Community Development Item Type: Public Hearing - Legislative Meeting Type: Council Business Meeting - Main Public Hearing: Yes Publication Date: Information ISSUE This item is a continuation of Council's discussion of the recommended Urban Forestry Code Revisions from October 23, 2012. The purpose of this hearing is to have Council discussion and get Council direction on the remaining policy issues and potential code changes in advance of the November 27, 2012 meeting. This discussion covers both aspects of the proposal - the land use and non land use elements. STAFF RECOMMENDATION / ACTION REQUEST Receive the staff report and: 1. Confirm policy direction provided to staff on October 23. 2. Provide direction to staff on the remaining policy issues from October 23, 2012. 3. Identify any additional amendments to the proposed code. KEY FACTS AND INFORMATION SUMMARY The purpose of the November 13, 2012 meeting is to continue discussions based on Council direction on October 23 (Attachment A). On September 11, 2012 Council discussed the UFCR proposal and confirmed the list of issues of interest for further study or possible code changes. This information was reformatted into a discussion guide for October 23, 2012 (Attachment B). Any changes Council requests on November 13 will be incorporated into the Planning Commission's recommendation and returned for Council review on November 27. On November 13, staff will present a brief overview of the code topics relevant to Council's issues of interest and discussion on October 23. Council will have the opportunity to discuss the remaining policy items with staff, Todd Prager of Todd Prager and Associates, and consultants from AKS Engineering and Forestry, the firm who completed the peer review of the draft code. Staff is asking council to provide direction on the final policy items and indicate whether it is desirable to: 1. Accept the Planning Commission's recommendation, 2. Choose one of the policy alternatives proposed by staff, or 3. Propose a new alternative Public testimony will not be taken on November 13. The next opportunity for public testimony will be on November 27, 2012. Public Hearing Overview At the November 13 meeting: • Staff will present Council direction on the policy issues of interest. • Council will direct staff on any desired code changes to address the remaining issues. • Council will notify staff of any issues for clarification that should be brought forward as policy issues. • Public testimony will not be accepted. At the November 27, 2012 meeting: • Staff will present a report based on council direction from prior meetings. • Public testimony will be taken on any changes under consideration. • Potential council decision to adopt any changes and the entire UFCR package. Additional meetings may be scheduled if more time is needed to adopt the proposal. OTHER ALTERNATIVES Council has a wide range of options in the legislative adoption process. Council could also decide not to adopt any - changes to the existing codes. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS •Goal 1.b.i. Implement the Comprehensive Plan through code revisions, including tree code. 'Comprehensive Plan Goal 2, Section 2. Tigard's Urban Forest "Urban Forestry Master Plan DATES OF PREVIOUS COUNCIL CONSIDERATION Council previously considered this matter on the following dates: 'February 16, 2010 (council direction to pursue a comprehensive set of code revisions) 'October 19, 2010 "November 9, 2010 •November 23, 2010 'January 25, 2011 •July 19, 2011 (staff presentation and council input on draft code revisions) 'January 24, 2012 "July 10, 2012 "July 24, 2012 (first public hearing on planning commission recommended code revisions) "August 14, 2012 'September 11, 2012 'October 23, 2012 Attachments November 13 Council Memo October 23 Council Memo PowerPoint Slide Presentation ' City of Tigard TIGARD Memorandum To: Tigard City Council From: Marissa Daniels, Associate Planner Re: Urban Forestry Code Revisions Discussion Date: November 13, 2012 On November 13, 2012 Council is scheduled to continue discussion of the Urban Forestry Code Revisions project. The goal of this meeting is to provide direction to staff on any changes Council wishes to make to the Planning Commission's recommendation. To that end, staff has identified three items for discussion on November 13: 1. Confirm policy direction provided to staff on October 23; 2. Discuss remaining policy issues presented on October 23; and 3. Identify any additional amendments to the proposed code. Any changes Council requests on November 13 will be incorporated into the Planning Commission recommendation and returned for Council review on November 27. Confirmation On October 23 Council discussed, with some resolution, seven of the eight policy issues presented by staff. A summary of this discussion is included on page 3. Based on this direction, staff has begun work on amendments to the Planning Commission recommendation to make it consistent with Council Direction provided on October 23, and ready for Council consideration on November 27. If there are any remaining areas in need of clarification or change, staff requests you raise them for discussion on November 13. Discussion The remaining questions for discussion on November 13 stem primarily from Council's deliberations on Policy Issues P1 and P7. In short, staff heard that Council is comfortable with the use of the canopy approach (item P1), but that there are concerns about how the approach is implemented, particularly the implementation of the development code through the administrative rules (item P7). 1 While Council deferred discussion of item P7, "Should the Administrative Rules be eliminated and the elements moved into the Code ?" to November 13, it came up several times during the discussion of other items. Below is a summary of what staff heard in earlier parts of the discussion with respect to Policy Item #7: • The process to complete a tree plan under the new regulations requires a certain amount of analysis and may be too complicated. • Initially concern was expressed that the canopy tiers may be too high. However, during further discussion of this item under Policy Issue #2, Council confirmed Planning Commission's recommendation. In the October 23 memo, staff provided two options to consider based on previous Council discussion. • Council can revise the administrative rules during the administrative rulemaking process. Specific items to address could include: o Should the tree lists be amended? o Should the administrative rules be simplified? • Council could eliminate the administrative rules altogether, although staff recommends against this approach. City Attorney Damien Hall recommended a third option to consider on October 23. • Council can work with staff to clarify the extent to which the administrative rules apply to tree plan submittal. Council could choose to clarify that the administrative rules are guidelines and applicants can provide alternative submittals so long as they show substantial compliance with the development standards. o It appeared Council was okay with the administrative rules so long as they are implemented as guidelines, not mandatory requirements, and applicants can provide simpler or alternative information to show compliance with development standards. Council will be asked to provide direction to staff on Issue P7 at their November 13 meeting. Additional Items In the October 23 council packet memo, staff listed and responded to several Issues for Clarification. If there is an item in this category you'd like to raise for group discussion please do so on November 13. 2 Urban Forestry Code Revisions — Summary of Council Direction from October 23, 2012 P1: Is the canopy approach an appropriate regulatory tool? There was a qualified consensus from Council that they are comfortable with the use of the canopy approach. This consensus was qualified by concerns that the implementation was too complicated /burdensome, a "solution in search of a problem," and that related canopy targets appeared too high (see Policy 7). P2: How will the requirements apply to small infill sites vs. larger subdivisions, planned developments and redevelopment sites? Council did not express a concern with the canopy tiers as proposed, just the process to show compliance (see Policy 7). P3: Should developers be required to maintain trees for two years after planting to ensure establishment? Consensus was that developers should be required to maintain trees; there should be a differentiation between residential and all other development; the developer should be required to maintain residential trees for two years or until sold to a private resident; and for non - residential development there should be a one -year maintenance requirement. P4: Should a permit be required to remove trees that were planted or preserved with development? Consensus was to go with the staff alternative (do not require permits for single - family lots). P5: Should Hazard Trees Remain Prohibited in Tigard? P6: Should hazard tree requirements address personal liability requirements? (These were discussed concurrently.) Consensus was to go with the alternative recommendation for Policy 5 to clarify that removal is required only after a confirmed complaint. Addressed both Policies 5 and 6. P7: Should the administrative rules be eliminated or moved into the code? Deferred to next meeting. During deliberations Council was repeatedly concerned about the cost to produce plans and overly complex requirements contained within administrative rules. This was discussed within the context of "mom and pop" minor land partitions performed by non - professional developers. Appeared Council was okay with administrative rules so long as they are implemented as guidelines, not mandatory requirements, and applicants can provide simpler or alternative information to show compliance with the standard. P8: Does the proposal increase the cost of development? Council is comfortable increasing the cost of installation to ensure trees are able to thrive and provide canopy in areas where this has historically been a problem, but does not want to increase the cost of preparing plans. Concerned that the requirements of the administrative rules would require people to spend too much money on preparing plans, Council wanted to provide flexibility to applicants. Issue of concern on Policy 8 was tied to Policy 7 and the role of the administrative rules. 3 e 111 City of Tigard TIGARD Memorandum To: Tigard City Council From: Marissa Daniels, Associate Planner Re: Urban Forestry Code Revisions 3 Date: October 4, 2012 On October 23, 2012, City Council will continue discussion on the Urban Forestry Code Revisions. At the September 11, 2012, public hearing, staff presented a list of 47 "issues of interest" to capture Council feedback. At that time, Council gave direction to staff to categorize and simplify the list of issues to be discussed. The result of that process is included on page 3 of this memo (Discussion Guide). Issues from the September matrix have been condensed and categorized, then sorted into the following types: Policy Issues are items where Council has indicated a desire to look at potential changes to Planning Commission's recommendation. Discussion on October 23, 2012, will center on these items and staff will be asking Council to provide direction on each issue. Appendix A details each of the policy issues and provides a staff response. Most notable are the few areas where staff has provided options to consider, based on your prior discussions. This includes alternatives to: • Exempt single family residential trees on private property (i.e. backyard trees) from maintenance and permit requirements. • Revise the Administrative Rules during their (separate) adoption process. Specific items to address at that time could include: - Should the tree lists be amended? - Should the administrative rules be simplified? • Revise the proposed code to clarify that hazard trees are required to be removed only after complaints are verified using industry standard methods. Issues for Clarification are informational in nature, and Appendix B includes staff response. While some of these questions may be answered by the staff presentation, we do not plan to run through each item individually. If there is an item in this category you'd like to raise for group discussion, please do so during the October 23, 2012, meeting. Future issues will not be considered in the adoption of the code at this time. For example, if Council wishes to amend certain administrative rules in the Urban Forestry Manual, then that 1 can be addressed during the upcoming administrative rules adoption process. Solar access is another example of an issue Council identified as a future work item. Resolved indicates issues discussed on September 11, 2012 with some resolution. Please note that time for public testimony will be provided. Staff from AKS, the firm that completed the Peer Review, will also be on hand. Background Council took the approach of first studying community values and existing conditions to set the framework for addressing the code. This began with the Comprehensive Plan process which established broad, 20 year goals and policies through the new Urban Forest Section of the Comprehensive Plan. From the Comprehensive Plan, council then directed the Urban Forestry Master Plan which expanded upon the Comprehensive Plan goals and policies and studied the issues in much greater detail. While the long term goal in the Master Plan is to increase citywide tree canopy from the current 25% up to 40 %, the short term action items are to revise the city's urban forestry codes and funding streams in support of that goal. We're now here on the ground implementing the action items in the Urban Forestry Master Plan: • Revising the land use and non land use elements of the code, • Creating the Urban Forestry Manual to administer the code, and • Updating the Master Fees and Charges Schedule to reflect fees associated with the recommended code. The City Attorney advised staff to separate the land use vs. non land use elements of the code on council agendas because they have different process requirements. The Urban Forestry Standards for Development and Tree Grove Preservation Incentives apply during development and so are categorized as land use elements, and the Tree Permit Requirements, Hazard Trees and Urban Forestry Manual represent the non land use elements of the code. The Urban Forestry Manual consists of administrative rules that implement the details of the land use and non land use elements of the code. 2 Policy Issues Standards for Development - Pr Issue of Interest: Is the canopy approach an appropriate regulatory tool? Staff Response: Many cities and counties throughout the country, particularly in the southeastern United States, have adopted tree canopy ordinances. The CAC and Planning Commission felt the approach was right for Tigard for three main reasons: • The canopy approach allows maximum flexibility for the project designer to meet code requirements. • The canopy approach is more consistent with urban forest science and the city's long -term urban forestry goals. It encourages large stature, appropriately spaced trees, which have the highest benefit /cost ratios. • The canopy approach requires the project designer to consider future canopy growth, which helps ensure that trees are properly placed within a site to become long -term amenities. It encourages appropriate tree spacing and setbacks from buildings by highlighting mature canopy growth. The CAC and Planning Commission supported the development of a tiered approach to the canopy requirements, recognizing that, for example, more tree canopy is desirable and achievable in residential zones than in industrial zones. Staff and consultants then extensively tested the tiered tree canopy requirements on a wide range of development projects and made adjustments as needed based on CAC and Planning Commission input. The goal of the CAC and Planning Commission was to ensure the requirements are achievable, result in a reasonable balance between trees and development, and do not force typical development projects to pay a fee in lieu of canopy or utilize the discretionary review option. If the canopy requirements are modified significantly, staff recommends additional testing to determine the implications of the modifications. For example, if the canopy requirements are reduced by half, they may be achieved with small stature street trees only and result in less tree canopy in new development than currently exists in the same zones. For more detailed information about why a tree canopy approach was selected over tree count (i.e. tree density or number of trees) please see Volume V, page 6. Staff Recommendation: Staff recommends adopting the proposed canopy approach and tiered canopy requirements because they have been extensively tested and supported through the Citizen Advisory Committee, public involvement, and Planning Commission processes. If significant modifications are made, staff will need more time to rework the proposal and recommends additional testing of the results. 4 P2 Issue of Interest: How will the requirements apply to small infill sites vs. larger subdivisions, planned developments and redevelopm Staff Response: Taking into consideration future development trends, the Planning Commission recommended continuing to apply the draft code standards to Minor Land Partitions (when lots are divided to create two or three lots). These small infill sites represent a significant portion of potential future development. The draft code standards are also applicable to larger projects such as residential Subdivisions and Planned Developments, and redevelopment projects that require Conditional Use Permits, Downtown Design Reviews and Site Development Reviews. Independent peer review by AKS Engineering and Forestry (See Volume II, pages 187- 217) demonstrated that the proposed effective tree canopy requirements were achievable on the range of sites that were tested, including three residential sites with smaller lots from the following zones: Zoning Tierl Minimum Lot Effective Tree Size Canopy Provided R -4.5 Tier 1 7,500 sq. ft. 45% R -7 Tier 1 5,000 sq. ft. 215% R -25 Tier 2 <3,000 sq. ft. 35% The Planning Commission approved two changes to the proposal, specifically addressing sites with smaller or more constrained lots: • Recognizing that small lots may have limited street frontage for street trees, the commission reduced the per lot minimum from 20% to 15% for Tier 1 sites, and eliminated the per lot minimum for Tier 2 and 3 sites. • The commission voted to move the R -12 district from Tier 1 to Tier 2 to be conservative since an R -12 site was not tested through the peer review. Staff Recommendation: Retain the Planning Commission recommendations. As described in P1, the tiered canopy requirements were carefully tested and adjusted by Planning Commission before forwarding their recommendation to Council. They found that proposed requirements achieve the desired balance between trees and development on small infill sites as well as larger subdivisions, planned developments, and redevelopment sites. Additional testing would be beneficial to determine the implications of significant modifications to the proposed canopy requirements. P3 Issue of Interest: Should developers be required to trees for two years after planting to ensure establishment? Staff Response: In the existing code, the City requires developers to guarantee mitigation tree survival during a two year establishment period. Guarantees are not I Tier 1 (40% effective canopy) - R -1, R -2, R -3.5, R -4.5 and R -7 zones Tier 2 (33% effective canopy) - R -12, R -25, R -40, C -N, C -C, C -G, C -P, MUE, MUE -1, MUE -2, MUC, MUR, and I -P zones Tier 3 (25% effective canopy) - MU -CBD, MUC -1, I -L, I -H, and schools (18.130.0500)) zones 5 currently required for the establishment of street trees, parking lot trees, and other required landscape trees. The UFCR CAC recommended and the Planning Commission concurred that the city should require a guarantee period for all required trees (street trees, parking lot trees, etc.) not just mitigation trees. Often these other required trees have more difficulty becoming established because they are planted in more challenging locations such as along streets and within parking lots. The proposal requires bonding for 2 years after planting for all required trees to ensure early establishment. Note: There is a separate provision in Title 8 of the Municipal Code that allows the removal and replacement of required trees that die within three years after planting (further explained in C3 below). This provision has been reviewed by staff and does not conflict with the provision in Title 18 that requires developers to maintain trees for two years after planting. The reason the provisions do not conflict is that the Title 8 requirement does not apply during development and the Title 18 provision only applies during periods of active development. Staff Recommendation: Maintain the Planning Commission recommended requirement for a two year early establishment period. Options to consider, based on your discussions, include an alternative to remove the maintenance period for single family residential trees on private property (i.e. backyard trees). If planted in desirable locations, these residential trees may have a higher likelihood of survival because of the care they receive from homeowners. At the same time, this alternative would allow owners more flexibility in managing their residential landscapes. However if homes do not sell soon after being built, these trees may not survive if not maintained by the builder /developer. Tree Permit Requirements P4 Issue of Interest: Should a permit be required to remove, tees that were lanted or preserved with development? Staff Response: Trees that were required to be planted or preserved as part of past development projects are part of the approved land use permit for that development. This includes mature trees that were preserved and incorporated into development plans, as well as newly planted trees such as parking lot shade trees. Because there is no permit process in the existing code to address the removal and replacement of healthy trees that were required with development, applicants must amend their prior land use permits to legally remove these trees. This process is overly time consuming and expensive with fees into the thousands of dollars. There are many legitimate reasons as to why owners may want to remove healthy trees that were required with development. These reasons include trees with roots that have 6 begun damaging pavement and trees that have grown tall enough to obscure significant views. In order to provide more flexibility and reduce or eliminate costs, the CAC recommended, and the Planning Commission concurred with establishing a tree removal permit process for trees that were required with development in the proposed Title 8. Staff Recommendation: Retain the Planning Commission recommendation. Requiring tree permits for trees planted or preserved with development has been supported through the Citizens Advisory Committee, public involvement, and Planning Commission process. Options to consider, based on Council discussions, include removing this requirement for private single family residential trees. If planted or preserved in desirable locations, these residential trees may have a low probability of being removed by homeowners. At the same time, this would allow owners more flexibility in managing their residential landscapes. However, particularly with past development projects, neighbors may have an expectation that certain trees will continue to be preserved or maintained if it was required as part of that project. Also, in the proposed code, trees planted or preserved to meet the requirements receive from 100% to 200% canopy credit. Council will need to decide whether planted and /or preserved trees used to meet canopy requirements should continue to be maintained after development is complete. Hazard Trees P5 Issue of Interest: Should hazard gMIIMMN in Staff Response: Hazard trees are prohibited in both the current and the proposed Tigard Municipal Code. This is similar to other code prohibitions against nuisances such as tall weeds and grass. In the proposal the definition of "hazard tree" is now consistent with the standardized rating system developed by the International Society of Arboriculture. This helps to remove subjectivity during the hazard tree evaluation process by using industry standard methods and terminology. The overall risk rating of a tree is determined by three main factors: probability of failure, size of defective part, and the target area (i.e. how often the site is occupied and the value of the target). Using this methodology, a dead tree in a natural area is unlikely to be considered a hazard because the target rating would be very low, whereas the same tree on Durham Road may be considered a hazard because there are many high value targets. The Tree Risk Assessment Form, which has been adapted from the ISA form, can be found in Volume III pages 61 -65. As recommended by the CAC and supported by the Planning Commission, if a tree on an adjacent property is a hazard, Chapter 8.08 would allow people to file a claim with the city. The city would then utilize a third party arborist to evaluate the tree. If the arborist determines there is a hazard, abatement would be required. The city could, after obtaining a warrant, enter a property, abate a hazard tree and recover costs in cases where an owner is uncooperative. The city could abate tree hazards without a warrant when there is an imminent threat to public health or safety as is currently allowed by the existing code. The intent of the proposed code is to establish an objective and efficient process for the abatement of hazard trees only after complaints are verified. The intent is not to cause the wide spread removal of all trees that may or may not be hazards. Consistent with current code enforcement practices, the city would only take action in response to written complaints. Staff Recommendation: Maintain the Planning Commission recommendation. One policy option to consider, based on Council discussions, is to revise the proposed code to clarify that hazard trees are required to be removed only after complaints are verified using industry standard methods. P6 Issue of Interest: Should the hazard tree standards be amended to address personal liability insurance requirements? Staff Response: Staff will work with Council to further clarify the impact of the code on personal liability insurance requirements. Policy Options: Maintain the Planning Commission recommendation. Policy alternative: Council direction to address requirements. Administrative Rules P7 Issue of Interest: Shoe e Rule ` e . • • ents moved into the Code? Staff Response: Administrative rules were developed for the Urban Forestry Code Revisions project to clearly document and communicate most of the city's current administrative practices without making the code excessively long. For example, administrative items such as planting specifications, tree lists and methods for calculating tree canopy are more efficient when placed within an administrative manual rather than in the development code. Also when administrative changes are required such as adding or subtracting trees from the tree lists, the amendment process for administrative rules is more efficient while at the same time providing for adequate public notice and the opportunity for public participation. Staff Recommendation: Maintain the format of the Planning Commission recommendation, separating the Code elements from the administrative procedures. In developing the proposal, public input from the range of viewpoints involved wanted the specificity that the proposed administrative rules provide. � I Due to the lack of specificity in the existing code, there are numerous staff interpretations and conditions of approval required to implement the code when approving development applications. The intent of the proposed administrative rules is to minimize staff discretion when implementing the code thereby increasing certainly for applicants and the public. Options to consider, based on Council discussions, include an opportunity to revise the Administrative Rules during the administrative rulemaking process. According to Municipal Code section 2.04.070 (Administrative Rulemaking Procedure), council shall be notified 14 days prior to public notice of any proposed administrative rules. At any time during that 14 day period, any councilmember may put the administrative rules for discussion on the next available council agenda. For this project, if council authorizes administrative rules when adopting the UFCR on November 27, 2012, staff anticipates formally notifying council of the administrative rules on December 13, 2012 and sending public notice of administrative rules on December 27, 2012. Therefore, any councilmember may decide between December 13 through December 27, 2012 to put the administrative rules for discussion as part of the next available council agenda. Of course, if council informs staff on October 23, 2012 that they anticipate further discussion of administrative rules, staff will begin finding time on council's early 2013 agenda for administrative rules. Specific items to address during the administrative rule adoption could include: • Should the tree lists be amended? • Should the administrative rules be simplified? Another option to consider is whether to eliminate the administrative rules all together. For the reasons stated above, staff does not recommend this option. However, if council does direct staff to eliminate the administrative rules, staff will need time to further amend the code. This is because as drafted, the code includes numerous cross references to administrative rules in the Urban Forestry Manual such as canopy requirements and how to calculate those requirements. If the administrative rules are eliminated, those details will need to be moved into the code. P8 Issue of Interest: Does the proposal increase the cost of develo ment due to the tree canopy plan and soil volume plan requirements? Staff Response: The proposed code places a high value on the role of urban forestry professionals in designing and implementing the conditions for sustainable urban tree canopy, which include providing adequate soil volumes. Staff acknowledges that requiring urban forestry professionals adds costs to projects, but it is consistent with the goals of the Urban Forestry Code Revisions: to distribute development costs more equitably (rather than only requiring arborists for projects with existing trees) and to focus on establishing healthy future canopy (rather than only penalties for removal). 9 As an example, based on interviews with local arborists the current estimated cost to develop and implement a tree plan for a Minor Land Partition is between $4,000 and $5,000 (this includes inventory field work, site plan, arborist report, revisions based on city review, implementation and twice monthly inspections). However, costs associated with the existing code for tree removal mitigation alone can reach $30,000 for a Minor Land Partition (this is in addition to the cost of developing and implementing a tree plan. The Planning Commission approved the following change to the proposal in order to lower the potential costs associated with the tree canopy and soil volume plan requirements: • Landscape architects, in addition to arborists, are allowed to develop urban forestry plans to reduce costs by eliminating the need for hiring two urban forestry professionals. Staff Recommendation: Maintain the Planning Commission recommendation, including the change to allow landscape architects, in addition to arborists, to develop urban forestry plans. Soil volume plans are not a requirement, but instead an option if the applicant wishes to maximize impervious surfaces and minimize open soil areas for trees. We're not expecting to see this type of development in typical single family residential neighborhoods since there is usually so much soil space available for tree growth. This option might be utilized at non - residential sites if for example, an applicant wants to maximize the number of parking stalls in a parking lot and provide trees with necessary soil under paved surfaces. However, applicants would need to evaluate whether it makes economic sense to invest in implementing soil volume plans on a project by project basis. io Issues for Clarification Tree Permit Requirements C1 iisue Interei . `e the proposed permit requirements more restrictive than the existing permit requirements? ,0,.,t1.,10a... Staff Response: The following categories of trees are currently regulated by the city, in the proposed Title 8, these categories of trees will continue to be regulated, with no expansion of regulations to additional categories. The most notable change in this topic area is the creation of a consolidated permit system to make the permitting process dear, consistent and user friendly. • Street and median trees, • Trees in sensitive lands, • Trees that were required with development, • Trees that were planted using the Urban Forestry Fund, and • Heritage trees. In some cases, the proposed permit requirements would be less restrictive than the existing permit requirements. For example, currently if someone wants to remove a healthy tree that was required with development they may only do so by amending the prior land use permit or paying fines. Either option typically costs thousands of dollars. The proposed permit requirements create a low or no fee permit process to remove healthy trees required with development for additional reasons such as if they are causing damage or blocking views. Also, currently permits are required to remove any tree over six inch trunk diameter in sensitive lands and the proposed permit requirements would apply only to native trees over six inch trunk diameter in sensitive lands. C2 gate a ` terest: wow serve ATSTrroard or rommtM regarding removing healtiumwted trees? Staff Response: Section 8.04.030 authorizes the city manager to designate a city board or committee to make decisions regarding removing healthy, protected trees. This could become part of the charge of an existing board or committee or the city manager could designate a new board or committee. If the charge of an existing board or committee is amended, council would need to approve the change. If a new board or committee is formed, council would need to approve the member composition consistent with the current staff appointment process. C3 Issue of Interest: Why does the code allow the removal and replacement of trees that die within three years of planting (e. g. 8.12.030)? Staff Response: It is not uncommon for trees to die within the first three years after planting because their roots have not yet become established. The proposed code recognizes this phenomenon and allows for the removal and replacement of newly planted trees that die without requiring another permit. For example, if a property 11 owner receives a permit to remove and replace a street tree, and the replacement street tree dies the first summer during a heat wave, the owner could remove and replace the tree on their own without yet another city permit. This is intended to save property owners and city staff time and paperwork. Hazard Trees C4 Issue of Interest: Will the hazard tree requirements be effective in requiring removal of hazard trees when there are disputes? Staff Response: The hazard tree requirements were developed in close collaboration with the city's risk division and attorney, and are expected to be effective in requiring hazard tree removal. If a tree on an adjacent property is disputed to be a hazard, Chapter 8.08 would allow people to file a claim with the city. The city would then utilize a third party arborist to evaluate the tree. If the arborist determines there is a hazard, abatement would be required. The city could, after obtaining a warrant, enter a property, abate a hazard tree and recover costs in cases where an owner is uncooperative. The city could abate tree hazards without a warrant when there is an imminent threat to public health or safety as is currently allowed by the existing code. These requirements would create an efficient and effective framework for addressing hazard trees while not unduly exposing the city to liability. C5 Issue of Interest: Are there conflicts between the hazard tree requirements and the recently adopted nuisance code? . Staff Response: Susan Hartnett, former Assistant Community Development Director, and Albert Shields, Program Development Specialist, served on the Technical Advisory Committee (TAC) for the UFCR and confirmed that the hazard tree requirements in Title 8 do not conflict with the recently adopted nuisance code requirements in Title 6. When amending the nuisance code, Code Compliance staff avoided making substantive changes to the hazard tree requirements because they were aware of the upcoming changes that would be made through the UFCR project. When substantive changes were made to the hazard tree requirements in Title 8 (section 8.02.050, Hazard Tree Related Definitions and Chapter 8.06, Hazard Trees) revisions to Title 6 (sections 6.01.020, 6.02.030 and 6.04.040) were made concurrently to ensure consistency. Adoption of Title 8 will not replace the changes that were made to Title 6. Administrative Rules — General C6 Tssue of Interesii` o the administrative rules (Urban Forestry Ma 'pia implement the development code meet state land use law? Staff Response: The administrative rules that implement the development code were drafted in close collaboration with the City Attorney and are consistent with state land use law. The administrative rules include clear and objective standards such as tree 12 planting and preservation requirements which are referenced by the development code. After obtaining land use approval, an applicant must provide plans consistent with these requirements before being issued building permits. This is similar to other administrative requirements such as the pipe diameter for water service lines, and building code requirements, which are referenced by the development code rather than included as part of the code itself. Separating these administrative requirements is intended to prevent the code from becoming excessively long while at the same time providing certainty as to the city's planting and preservation standards. C7 Issue of Interest: Will the use of administrative rules lead to more appeals - of LL develo ment ro ects? Staff Response: Staff believes the use of administrative rules will reduce the likelihood of appeals by making the development code requirements more clear and objective. Due to the lack of clarity in the existing code, there are numerous staff interpretations and conditions of approval required to implement the code when approving development projects. If someone disagrees with staff's interpretations or conditions, then they may appeal staff's decision. Decisions as to compliance with the administrative rules are not intended as land use decisions. The intent of the administrative rules is to minimize staff interpretations and conditions thereby increasing certainly for applicants and the public, and reducing the likelihood of appeals. Soil Volumes CS Issue of Interest: Areo o nze standards n cessary in residential areas, and do they apply only during development '' ai sik Staff Response: Trees need soil to grow and there is a direct relationship between the amount of soil provided and the mature size of trees. Soil volume standards are proposed for street trees and parking lot trees because these tree types are the most likely to not be provided adequate soil volumes. Since street trees are required as part of residential development (i.e. subdivisions, planned developments and partitions), the soil volume standards would apply in these circumstances. The proposed code applies soil volumes standard only during development since there is the opportunity to design the sites to provide sufficient soils for trees. Soil volumes standards would not apply, for example, in situations where an existing homeowner wants to plant a new street tree. The Home Builders Association (HBA) supported applying soil volume standards to residential development during the CAC process because one of the goals of the UFCR was to focus on healthy future tree canopy rather than the punitive mitigation standards for tree removal in the existing code. Another reason for HBA support was the flexibility allowed in meeting soil volume requirements through traditional, low - cost methods such as increasing the size of planter strips for street trees (see code i.3 section 18.790.050.C.3). More expensive methods such as the use of engineered soils under pavement is one option for meeting soil volume standards, but not the preferred option in most situations. C9 Issue of Interest: Should parking lot canopy (and associated soil volume) be required, since it could lead to increased development costs? Staff Response: Soil volume standards are proposed for parking lot trees because, based on a review of past projects, these tree types are often not provided adequate soil volumes to support mature canopy growth. The proposed standards are intended to support Council goals identified through the Urban Forestry Master Plan for increasing tree canopy over parking lots. There is flexibility allowed in meeting soil volume requirements through traditional, low -cost methods such as providing larger landscape islands for parking lot trees. This can be achieved through strategic parking lot design and /or the use of an allowed reduction of up to 20% required parking for planting trees (see code section 18.790.050.C.3). More expensive methods such as the use of engineered soils under pavement is one option for meeting soil volume standards. These engineered methods may be used if the value of parking exceeds the cost of using engineered soil designs. Funding C10 Issue of Interest: How will funding of the Jrban Forestry Program be affected by the proposal? . Staff Response: Funding of the Urban Forestry Program is not expected to be significantly affected by the proposal. Based on past Tree City USA reporting data, the staff costs associated with administering the code ranges from approximately $100,000 to $150,000 annually depending on the level of development. These staff costs are budgeted by the Community Development Department and supported by the city's General Fund. While the proposed code includes a shift from a tree mitigation to a tree canopy approach, the staff costs associated with administering the code are not expected to change significantly. Staff would like to clarify that in the "Policy Roadmap" matrix from Council's September 11, 2012 meeting, the column heading titled "Additional Cost to Implement ?" may have caused some confusion. The column heading more accurately should have read "Ongoing Cost to Implement ?" since the intent was to differentiate between one -time project costs versus ongoing program costs. Again, these ongoing program costs are not expected to change significantly from what is already budgeted by the Community Development Department for staff costs associated with administering the code, and we have adequately budgeted for program costs within existing resources. 14 Proposal Development Process C11 Issue of Interest: Is the 40% canopy goal for all private property or is it citywide? Staff Response: The 40% canopy goal in the Urban Forestry Master Plan is a citywide canopy goal that takes into account parks, natural areas, streets, commercial, and residential areas. The Urban Forestry Master Plan seeks to achieve 40% citywide tree canopy by the year 2047. The current amount of citywide tree canopy is approximately 25% with variable distribution from 46% on City of Tigard property, 30% on private residential property, 9% on streets (public right of way), and 6% in parking lots. The 40% effective canopy goal in the Urban Forestry Code Revisions is for lower density residential property (Tier 1). Due to the various credits and standards for the calculations (e.g. 200% credit for preservation, 125% credit for planting native trees, and full credit for street trees) the actual canopy provided through planting and preservation ranges from 16% to 40% canopy or an of average 28% canopy for lower density residential property. There is also the option of paying a fee in lieu or receiving discretionary approval for green building or development techniques instead of providing trees. The proposed code requirements have been compared with one's effective tax rate versus their actual tax rate. C12 Issue of Interest: Should there be a review period after adoption? Staff Response: Both the CAC and Planning Commission recommended an evaluation of the new regulations within five years of their effective date so that any necessary adjustments can be made in a timely manner. This is intended to avoid the need for a complete overhaul of the regulations which is a challenge for all participants. C13 Issue of Interest: How was the nuismeNtrlist developed? , - . ° Staff Response: Morgan Holen, certified arborist and forest biologist, served on the UFCR CAC. Just prior to the development of the City of Tigard's nuisance tree list, Ms. Holen was contracted by the City of Lake Oswego to develop their nuisance tree list for very similar purposes (to exempt certain species from tree permit requirements). In order to benefit from the up to date work of another expert in an adjacent city, staff utilized the City of Lake Oswego's list for the City of Tigard's purposes. Ms. Holen's process began with compiling nuisance tree lists from other local jurisdictions such as Clean Water Services and the City of Portland. She then researched and verified the list of tree species using additional sources such as the Native Plant Society of Oregon and the Plant Conservation Alliance. Finally, Ms. Holen further refined the list by contacting local ISA certified arborists and receiving additional feedback. She identified twelve local tree species as capable of spreading at such a rate that they cause harm to human health, the environment 15 and /or economy. These twelve species were peer reviewed and approved by Tigard's UFCR CAC and TAC (both included experts on nuisance tree species), and are proposed for inclusion in the City of Tigard's nuisance tree list. It is important to note that the purpose of the nuisance tree list is to automatically allow the removal of nuisance trees when requested as part of the tree removal permit process. There is no requirement to remove nuisance trees if an owner wants to retain them. 16 C I T Y O F T I G A R D Respect and Care 1 Do the Right Thing 1 Get it Done ti TIGARD Urban Forestry Code Revisions Council Direction on Remaining Policy Issues of Interest Community Development I November 2012 (. I I O F T 1 ( \ ;ti Policy Item Direction P1: Canopy Approach Concerns about complexity of plan preparation P2: Canopy Tiers Q P3: Developer Maintenance Q P4: Tree Permits Q P5: Hazard Trees Q P6: Hazard Trees P7: Administrative Rules To be discussed on November 13 P8: Cost of Development Concerns about cost of preparing plans (: 1 '1 () 1 1 1 (; \ R 1) P1: Is the canopy approach an appropriate regulatory tool? .4 Z 0,4 ritAt*, r* *04/ Ct .'- A A % rifte A1114 Atti fk____.11/11 j: r �� v 11 ma �� A � ! � : t � ' Preservation Planting Fee -in -lieu Discretionary Review Standards for Development C I T Y O F T I G A R ID P8: Does the proposal increase the cost of development? Example Costs for 2 Lot Partition Code Design/ Mitigation Total ' 111414 Implementation Cost 1 4 Existing n - $4,000 $30,000 $34,000 Code 2 Lot Partition Proposed ..•�• .,.�. _ $5,000 $0 $5,000 Code Administrative Rules C 1 'I Y O F T 1 G \ R D P7: Should the Administrative Rules be eliminated or moved into the Code? ••••• . , r .t \�-.. to , .. Administrative Rules C 1 T¥ O F T 1 G \. R 1) Discussion ., r ,, < y ap °. * ' * ... .. , y y • 31 o ,. ` # . z C 1 "1 O 1 "1• 1 (; ■ R 1) P1: Is the canopy approach an appropriate regulatory tool? P": " If ftrip- 1 4 rft/If /wit% ya , ante< A A i/ '••• 111111„ fi t ••• 1111111 ALIA u �• ALA arJ.,111= 11.16,.% .11 Preservation Planting Fee -in -lieu Discretionary Review Comment: Planning Commission supported the flexibility of this approach Alternative: Council direction to develop different requirements Standards for Development (1 11 Y 0 I' '1' I G A R I) P2: How will the requirements apply to various sites? Tier Canopy Range Zoning , or ei , A ` ,-- = 1 16 -40% •Lower density residential �� i Orl��t1 •Higher density residential Preservation Planting 2 13 -33% -Commercial ��„ 4 ,�, Mixed used � ; °� `� •Industrial Park 1))110.14% ' A r J ,. P��,,,�� 0 • Downtown � ft 1�V • 3 10 -25% •Industrial Fee - - lieu Discretionary Review -Schools Comment: Planning Commission recommends tiered canopy approach Alternative: Council direction to develop new approach Standards for Development C 1 T �' O F T" I G R D P3: Should developers be required to m a i ntain trees for two years? u µ- 0 _.„ W w i i i Comment: This is consistent st i e establishment requirements Alternative: Do not require m aintenance with exing on tre pr i va te single family residential lots Standards for Development C I T Y O F T I G _.\ RD P4: Should permits be required to remove trees required with development? 'II: :.,,,,,...rork.:,..,: ,:,,,,,,,ci.:41;v:,.4....44:::10,,,,,4c......,,, .7.,;.-Ir:,:v,-,,,i,,,,,4;iltio7.,i',.;.: Idk os igii i , $* ." ' ,1 % , i t: : ' "r A' ... ' , y � .„._,... ,_... 3 _ yy _ , ,, , ..,_ Comment: Planning Commission found permit process increases flexibility Alternative: Do not require permits for private single family residential lots Tree Permit Requirements C 1 'I" Y 0 F T I G _\. R D P5: Should hazard trees be prohibited in Tigard? s , v : - 1 ' i Comment: The existing code prohibits hazard trees Alternative: Clarify that removal is required only after complaints are verified Hazard Trees (: 1 O 1 R 1) P6: Should hazard trees standards address personal liability requirements? �.. <F a1' I i J Q re -' . Hazard Trees C I T Y O F T I G A R 1) P7: Should the Administrative Rules be eliminated or moved into the Code? 1 , , 7 ,-- j , , .......„...---„,"\\ „ •-• ,......----;\ ,, lir , , , --- 1- - it i ;\ .,. , \W 0 ,.. 4 ' ''`. Comment: Admin. Rules provide certainty without making Code too long Alternative: Revise Admin. Rules during their upcoming adoption process Administrative Rules C 1 T Y D IF '1' 1 G A R D P8: Does the proposal increase the cost of development? Example Costs for 2 Lot Partition i '4".....� . Code Design/ Mitigation Total 4 ' Implementation Cost Existing I Code $4,000 $30,000 $34,000 2 Lot Partition Proposed ®... .� _ $5,000 $0 $5,000 Code Comment: Overall costs not expected to increase Alternative: Revise Admin. Rules during their upcoming adoption process Administrative Rules / AGENDA ITEM No. 5 Date: November 13, 2012 There will be no public testimony taken tonight on: URBAN FORESTRY CODE REVISION PROJECT — COMPREHENSIVE PLAN AMENDMENT (CPA) 2011 -00004 DEVELOPMENT CODE AMENDMENT (DCA) 2011 -00002 The next opportunity for public testimony is November 27, 2012, 7:30 p.m. in Tigard Town Hall. 1111 1 • TIGARD City Council City of Tigard, Oregon Affidavit of Posting In the Matter of the Notification of the November 13, 2012 City Council Executive Session STATE OF OREGON) County of Washington) ss. City of Tigard ) t' D /4-- ., r J , being first duly sworn (or affirmed), by oath (or affirmation), depose and say: That I posted a copy of said Notification in ➢ Tigard City Hall, 13125 SW Hall Boulevard, Tigard, Oregon ➢ Tigard Public Library, 13500 SW Hall Boulevard, Tigard, Oregon ➢ Tigard Permit Center, 13125 SW Hall Boulevard, Tigard, Oregon A copy of said Notice being hereto attached and by reference made a part hereof, on the 7 r ay of A.7 � �i► , 2012. ea4 Signature of Person who rfortfrsd Notification Subscribed and sworn (or affirmed) before me thi day of , 2012. • Signature of Notary Public or 0 *en OFFICIAL SEAL CAT D WHEATLEY - OREGON N PUBLIC '`w y COMMISSION NO. 459116 MY COMMISSION EXPIRES AUGUST 04, 2015 .I TIGARD TIGARD CITY COUNCIL EXECUTIVE SESSION 6:30 p.m. on NOVEMBER 13, 2012 Red Rock Creek Conference Room 13125 SW Hall Blvd., Tigard, OR 97223 NOTICE OF TIGARD CITY COUNCIL EXECUTIVE SESSION Held in Red Rock Creek Conference Room-6:30 p.m. • Not Open to the Public An Executive Session is called under ORS 192.660 (2) (h) to consult with counsel concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed. 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. Please forward to: ❑ Findley Merritt, The Oregonian (fmerritt@oregonian.com) ❑ Editor, The Regal Courier (Editor @theregalcourier.com) ❑ Geoff Pursinger, Tigard Times(gpursinger @commnewspapers.com) ❑ Newsroom, The Times (Fax No. 503 -546 -0724) For further information, please contact Deputy City Recorder Carol Krager by calling 503 - 718 -2419. /s/Carol A. Krager Deputy City Recorder Date: November 7, 2012 Post: Tigard City Hall Tigard Permit Center Tigard Public Library V .1„, II E TIGARD City of Tigard, Oregon Affidavit of Notification In the Matter of the Notification of the November 13, 2012 City Council Executive Session STATE OF OREGON) County of Washington) ss. City of Ti rd ) ^^ I, t!��GYc , i'� — `/ —r eft , being first duly sworn (or affirmed), by oath (or affirmation), depose and say: That I notified the following organization by fax : C 1-.." - Newsroom, Tigard Times and the following people /organizations by e -mail: R Findley Merritt, The Oregonian (finerritt(ii oregonian.com) R.- Editor, The Regal Courier (Editoratheregalcourier.com) lk Geoff Pursinger, Tigard Times(gpursinger (a,commnewspapers.com) A copy of said Notice being hereto attached and by reference made a part hereof, on the 7 of / V07/. ,2012. Signature of Person who Performet Notification Subscribed and sworn (or affirmed) before me thday o , 2012. ,,,f4C-..-4-4--- Signature of Notary Public for 0 . • • • ,�� OFFICIAL SEAL :f 5, CATHERINE D WHEATLEY ` NOTARY C PUBLIC OMMISSION NO. OREGON 459116 '� '` ► MY COMMISSION EXPIRES AUGUST 04, 2015 h TIGARD TIGARD CITY COUNCIL EXECUTIVE SESSION 6:30 p.m. on NOVEMBER 13, 2012 Red Rock Creek Conference Room 13125 SW Hall Blvd., Tigard, OR 97223 NOTICE OF TIGARD CITY COUNCIL EXECUTIVE SESSION Held in Red Rock Creek Conference Room -6:30 p.m. • Not Open to the Public An Executive Session is called under ORS 192.660 (2) (h) to consult with counsel concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed. 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. Please forward to: ❑ Findley Merritt, The Oregonian (fmerritt@oregonian.com) ❑ Editor, The Regal Courier (Editor @theregalcourier.com) ❑ Geoff Pursinger, Tigard Times(gpursinger @commnewspapers.com) ❑ Newsroom, The Times (Fax No. 503 - 546 -0724) For further information, please contact Deputy City Recorder Carol Krager by calling 503 - 718 -2419. /s /Carol A. Krager Deputy City Recorder Date: November 7, 2012 Post: Tigard City Hall Tigard Permit Center Tigard Public Library ** Transmit Confirmation Report ** P.1 Nov 7 2012 05:33pm D.S. S Name/Fax No. Mode Start Time Page Result Note 5035460724 Normal 07,05:32pm 0'27" 1 * 0 K TIGARD CITY COUNCIL EXECUTIVE SESSION 6:30 p.m. on NOVEMBER 13, 2012 Red Rock Creek Conference Room 13125 SW Hall Blvd., Tigard, OR 97223 NOTICE OF TIGARD CITY COUNCIL EXECUTIVE SESSION Held in Red Rock Creek Conference Room -6:30 p.m. • Not Open to the Public An Executive Session is called under ORS 192.660 (2) (h) to consult with counsel concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed 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 dosed to the public. Please forward to: ❑ Findley Merritt, The Oregonian (finerritt@oregonian.com) o Editor, The Regal Courier (Editor @theregalcourier.com) o Geoff Pursinger, Tigard Times (gputsinger @commnewspapers.com) o Newsroom, The Times (Fax No. 503 - 54(-0724) For further information, please contact Deputy City Recorder Carol Krager by calling 503 - 718 - 2419. /s /Carol A. Krager Deputy City Recorder Date: November 7. 2012 Post Tigard City Hall Tigard Permit Center Tigard Public Library