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City Council Packet - 09/03/2013
TIGARD City of Tigard CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING September 3, 2013 MEETING WILL NOT BE TELEVISED I:\Design&CommunicationslDonnalCity CounciRccda 13125 SW Hall Blvd. • Tigard, Oregon 97223 • 503.639.4171 TTY Relay: 503.684.2772 • www.tigard-or.gov f IIIII City of Tigard TIGARD Tigard Business Meeting—Agenda ® y- TIGARD CITY COUNCIL, CITY CENTER DEVELOPMENT AGENCY& LOCAL CONTRACT REVIEW BOARD On September 3, 2013 the agenda was revised - CCDA Exec. Session cancelled and items 4, 5, 6 & 7 have been reordered. MEETING DATE AND TIME: September 3,2013 - 6:30 p.m. CCDA Meeting followed by City Council Business Meeting MEETING LOCATION: City of Tigard -Town Hall - 13125 SW Hall Blvd.,Tigard,OR 97223 PUBLIC NOTICE: Anyone wishing to speak on an agenda item should sign on the appropriate sign-up sheet(s). If no sheet is available,ask to be recognized by the Mayor at the beginning of that agenda item. Citizen Communication items are asked to be two minutes or less. Longer matters can be set for a future Agenda by contacting either the Mayor or the City Manager. Times noted are estimated;it is recommended that persons interested in testifying be present by 7:15 p.m. to sign in on the testimony sign-in sheet. Business agenda items can be heard in any order after 7:30 p.m. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 503-639-4171,ext. 2410 (voice) or 503-684-2772 (MD - Telecommunications Devices for the Deaf). Upon request,the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments;and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers,it is important to allow as much lead time as possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling: 503-639-4171, ext. 2410 (voice) or 503-684-2772 (MD -Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA IIICity of'Tigard Tigard Business Meeting—Agenda TIGARD TIGARD CITY COUNCIL, CITY CENTER DEVELOPMENT AGENCY& LOCAL CONTRACT REVIEW BOARD MEETING DATE AND September 3,2013 - 6:30 p.m. CCDA Meeting followed by City Council TIME: Business Meeting MEETING LOCATION: City of Tigard -Town Hall - 13125 SW Hall Blvd.,Tigard,OR 97223 City Center Development Agency 6:30 pm A. Call to Order-Tigard City Council,City Center Development Agency and Local Contract Review Board B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items E. Council Communications & Liaison Reports • -• -- - -- - - - -- -- - - • - - Executive Session cancelled on September 3,2013. . 1. DISCUSS URBAN RENEWAL FINANCIAL MODEL- City Center Development Agency 6:35 pm estimated time City Council Business Meeting: 7:20 pm estimated time 2. CITIZEN COMMUNICATION (Two Minutes or Less,Please) A. Follow-up to Previous Citizen Communication B. Citizen Communication—Sign Up Sheet 3. CONSENT AGENDA: Tigard City Council and Local Contract Review Board: 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: 7:25 pm estimated time A. APPROVE CITY COUNCIL MINUTES FOR: 1.April 30, 2013 Town Hall 2. May 14,2013 3. May 28, 2013 4.June 11,2013 5.June 18,2013 B. APPOINT MEMBERS TO THE PARK AND RECREATION ADVISORY BOARD C. CONSIDER A RESOLUTION TO APPROVE THE CITY OF TIGARD NAMING AND RECOGNITION POLICY Local Contract Review Board: D. AWARD CONTRACT FOR UTILITY BUSINESS PLANNING SERVICES E. AWARD CONTRACT FOR RIGHT-OF-WAY MOWING SERVICES F. AWARD CONTRACT FOR RIGHT-OF-WAY MAINTENANCE AND IMPROVEMENTS •Consent Agenda-Items Removed for Separate Discussion:Aty items requested to be removed from the Consent Agenda for separate discussion will be considered immediately after the Council/Cite Center Development Agency has voted on those items which do not need discussion. 4. CONSIDER A RESOLUTION APPROVING THE PURCHASE OF THE S I'EVE STREET PROPERTY AND AUTHORIZING THE CITY MANAGER TO COMPLETE THE PROPERTY PURCHASE 7:30 pm estimated time 5. TIGARD TRIANGLE STRATEGIC PLAN UPDATE 7:40 pm estimated time 6. DISCUSS FORMATION OF A CITIZEN ADVISORY COMMITTEE FOR TIGARD TRIANGLE STRATEGIC PLAN 8:00 pm estimated time 7. APPOINT MEMBERS TO A TIGARD TRIANGLE CITIZEN ADVISORY COMMITTEE 8:05 pm estimated time 8. COUNCIL LIAISON REPORTS 8:10 pm estimated time 9. NON AGENDA ITEMS 10. 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. 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. 11. ADJOURNMENT 8:15 pm estimated time AIS-1406 1. Business Meeting Meeting Date: 09/03/2013 Length (in minutes):45 Minutes Agenda Title: Urban Renewal Tax Increment Revenue Forecast Submitted By: Sean Farrelly, Community Development Item Type: Update,Discussion,Direct Staff Meeting Type: City Center Development • Agency Public Hearing: No Publication Date: • Information ISSUE The Board of the CCDA will be briefed on the Urban Renewal Tax Increment Revenue Forecast by staff and consultants ECONorthwest. STAFF RECOMMENDATION / ACTION REQUEST No action is requested; the Board of the CCDA is asked to listen to the briefing and provide feedback. KEY FACTS AND INFORMATION SUMMARY The findings of ECONorthwest's August 19th memo include: • Real property accounts for 81% of the assessed value in the district. The balance of the assessed value is utility, personal (machinery and equipment), and manufactured (mobile homes) property. • 97% of total assessed value of real property has assessed value to real market value ratios of 90% or less. In other words, the vast majority of properties have a cushion, so that in the event real market values decline, assessed values should still see 3.0% appreciation in the short-term. • Based on the TIF projections, ECONorthwest estimates that borrowing capacity for the URA would be about $1,975,000 in FYE 2014. • The City Center Urban Renewal Plan states, "No new indebtedness to be repaid with tax increment revenues may be incurred after the twentieth anniversary of the effective date of the Plan." As the Plan was approved by voters in May of 2006, this requires all indebtedness to be incurred no later than FYE 2026. Assuming periodic borrowings over the life of the URA, the projected TIF revenues could support up to $13,200,000 of total indebtedness to be incurred by FYE 2026. • This is less than the $22,000,000 maximum indebtedness allowed by the URA Plan. Thus, to fully implement the Plan, the URA will need to generate more TIF revenue than has been forecasted. OTHER ALTERNATIVES Not applicable COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS City Center Urban Renewal Plan DATES OF PREVIOUS COUNCIL CONSIDERATION June 4, 2013 Attachments TIT Forecast Memo PowerPoint ECONorthwest ECONOMICS • FINANCE • PLANNING DATE: August 19, 2013 ECO Project#: 21466 TO: Sean Farrelly and Kenny Asher, City of Tigard FROM: Nick Popenuk, ECONorthwest SUBJECT: CITY CENTER URBAN RENEWAL AREA - TAX INCREMENT REVENUE FORECAST The City of Tigard ("City")asked ECONorthwest to forecast future tax increment finance ("TIF") revenues that would be generated by the City Center Urban Renewal Area ("URA"). This memorandum summarizes the results of the TIF forecast. How urban renewal works Urban renewal is a program used by over 50 cities and counties in Oregon to help revitalize specified areas within their jurisdiction. TIF is the primary finance tool for urban renewal areas. TIF revenues are generated when a URA is established and the assessed value of all property in the area is'frozen' (called the frozen base).Over time, the total assessed value in the area increases above the frozen base. The assessed value in the area above the frozen base is called the incremental assessed value.The taxing jurisdictions that overlap the urban renewal area continue to collect tax revenue from the frozen base,but tax revenue generated from the incremental assessed value goes to the URA in the form of TIF revenues. About the City Center URA The City Center URA Plan was adopted in December 2005.The frozen base of the URA is $69,207,308. The City Center URA Plan identifies the projects that should be carried out in the URA using TIF revenues, as well as a total limit on the amount of TIF revenues that can be spent on these projects(called the maximum indebtedness).' The maximum indebtedness limit of the City Center URA is$22,000,000. The URA includes 193.71 acres of land. Three maps are included as attachments to this report. Each map shows the boundaries of the URA. Exhibit 1 shows a breakdown of all parcels in the URA by land use. Commercial property is the predominant land use, including 50% of the acreage and 85% of the assessed value of the URA. Publicly-owned (tax-exempt) property is the next largest land use, with 37% of the acreage of the URA. Additionally, the area includes small amounts of single-family, multifamily, vacant, and other land uses. I Note that the expenditure of TIF on interest payments for debt that finances urban renewal projects is not counted toward the maximum indebtedness limit. ECONorthwest I Portland 503.222.6060 I Eugene 541.687.0051 I econw.com 1 Exhibit 1.Tigard City Center URA, acreage and assessed value by land use, FYE 2013 •COMMERCIAL Total ' •VACANT Acreage PUBLIC •Single-Family Total AV Multi-Family Calculated by ECONorthwest with source data from the Washington County Office of Assessment and Taxation. Fiscal Year Ending ("FYE") 2008 was the first year in which the URA was eligible to receive TIF revenues. Exhibit 2 shows the historical growth in assessed value and TIF revenues for FYE 2008 to FYE 2013. Assessed value of the URA grew rapidly from$72,433,669 in FYE 2008 to $95,604,035 in FYE 2011. There was virtually no change in assessed value from FYE 2011 to 2012, and a decline in assessed value from FYE 2012 to 2013. Average annual growth in assessed value in the URA since 2008 has been 5.1% per year. In FYE 2013(the most recent year for which data are available), the URA received $304,379 in TIF revenues. Exhibit 2. City Center URA, historical assessed value and TIF revenues, FYE 2008-2013 FYE Total AV Frozen Base Excess Value Tax Rate TIF 2008 $ 72,433,669 $ 69,207,378 $ 3,226,291 13.3623 $ 43,111 2009 $ 78,530,005 $ 69,207,378 $ 9,322,627 13.3091 $ 124,076 2010 $ 89,594,452 $ 69,207,378 $ 20,387,074 13.2221 $ 269,560 2011 $ 95,604,035 $ 69,207,378 $ 26,396,657 12.9589 $ 342,072 2012 $ 95,335,863 $ 69,207,378 $ 26,128,485 12.8703 $ 336,281 2013 $ 92,888,162 $ 69,207,378 $ 23,680,784 12.8534 $ 304,379 Compiled by ECONorthwest with source data from the Washington County Office of Assessment and Taxation. Tax rates The first step in forecasting TIF revenues is calculating the total consolidated tax rate(the sum total of all applicable permanent, local option levy,and general obligation bond rates for all taxing jurisdictions overlapping the URA). Because permanent rates are,by definition, permanent,2 and Oregon Revised Statutes(ORS)exclude all local option levies and general obligation bonds approved after October of 2001 from the calculation of TIF revenues for URAs like the City Center URA, there is relatively little change in the consolidated tax rate for the City Center URA over time. Generally speaking, change in the City Center URA tax rate is limited to the gradual decrease and eventual termination of tax rates for old (pre-2001)general obligation bonds. As shown 2 Note that there are a few exceptions for jurisdictions that levy a tax rate less than the total amount allowed by their permanent rate limitation. Tigard City Center URA-TIF Forecast ECONorthwest August 19,2013 2 • previously in Exhibit 2, this has resulted in a gradual decrease in tax rate from$13.3623 per $1,000 of assessed value in FYE 2008 to$12.8534 per$1,000 in FYE 2013. Exhibit 3 shows the future forecast tax rates for the City Center URA through FYE 2030. The rate is anticipated to slowly decline until FYE 2019, when all pre-2001 general obligation bonds are retired, and the rate stabilizes at$11.9692 per$1,000 of assessed value(the sum of the permanent rates for all jurisdictions). Exhibit 3.Tigard City Center URA,forecast of future consolidated tax rate, FYE 2013 - 2030 FYE Tax Rate 2013 12.8534 2014 12.6796 2015 12.5433 2016 12.3559 2017 12.1717 2018 12.1717 2019 11.9692 2020 11.9692 2021 11.9692 2022 11.9692 2023 11.9692 2024 11.9692 2025 11.9692 2026 11.9692 2027 11.9692 2028 11.9692 2029 11.9692 2030 11.9692 Calculated by ECONorthwest with source data from the Washington County Office of Assessment and Taxation as well as 2013 Certified Annual Financial Reports(CAFRs)for overlapping taxing districts. Assessed value The forecast of assessed value is at the heart of any TIF forecast. In Oregon, there are four types of assessed value: real, personal, utility, and manufactured.Real property includes land and improvements, which is what most people traditional think of as taxable property and accounts for 80 to 90% of total assessed value in most jurisdictions. In the City Center URA, real property accounts for 81%of the total assessed value of the area, and therefore is the focus of our analysis of assessed value. Real property Change in assessed value of real property comes from two sources: appreciation (or depreciation) and "exception" events. Appreciation Appreciation (or depreciation) is the result of changing market values for an existing property account. Many property accounts experience large changes in their market values over time, Tigard City Center URA-TIF Forecast ECONorthwest August 19,2013 3 generally trending upward,but with cycles of appreciation and depreciation along the way. Oregon's property tax system removes much of this volatility from taxable property values,by severing the connection between real market values and assessed values.Properties in Oregon are assessed at the lower of their real market value or"maximum assessed value." For the vast majority of properties in Oregon,their maximum assessed value is well below their real market value,providing a cushion for any declines in real market value.The volatility of real market values has essentially been replaced by the predictability of maximum assessed values,which are limited by the Oregon constitution to a 3.0%increase each year. In other words,the vast majority of real property in Oregon appreciates at 3.0%each year.A small subset of properties(those with maximum assessed values at or near their real market values)have the potential to experience greater volatility in their assessed value.Thus, an important metric in evaluating the likely future appreciation for an area is the ratio of assessed values to real market values in an area. Attachment A. Map of Tigard City Center URA AV/RMV Ratios shows the relationship between assessed value and real market value for every parcel in the URA.In the City Center URA,97%of total assessed value of real property has assessed value to real market value ratios of 90%or less. In other words the vast majority of properties have a cushion,so that in the event that real market values decline, assessed values should still see 3.0%appreciation in the short- term. Exhibit 4 illustrates the breakdown of assessed value to real market values for properties in the City Center URA. Exhibit 4. Tigard City Center URA, ratio of assessed values to real market values, FYE 2013 $25 $20 $15 - c $10 $5 $- 110 Q� \0 00\0 00\0 00\0 O0\0 0\0 O0\0 O0\0 00\0 �0\0 0\0 F No ti coo 1 of Calculated by ECONorthwest with data from the Washington County Office of Assessment and Taxation. Tigard City Center URA -TIF Forecast ECONorthwest August 19,2013 4 The results shown in Exhibit 4 suggest that 97% of all properties in the URA should be expected to see 3.0% annual appreciation regardless of changes in real market value in the near future. The question remains, what appreciation or depreciation should be expected for the very small subset of properties that have assessed values equal to 100%of real market values? These properties have no cushion and are subject to market forces that determine their annual changes in real market value. Real market values nationally and regionally have been steadily rising for the past year, and it is likely that these trends will translate into increasing real market values in the Tigard City Center URA as well. This means it is likely that these properties will see growth of 3.0% or more in the short-term. However, to be conservative, our analysis assumes that these properties experience no growth in assessed values in the next few years. This results in a weighted average appreciation rate of 2.91% for all real property in the City Center URA. We carry this assumption through FYE 2015, after which point, we assume all real properties experience the maximum-allowed 3.0% annual growth. Exception value Exception value refers to changes in property values resulting from forces other than general appreciation or depreciation. This can include new construction, remodeling of an existing building, the sale of a property, or the appeal of a property's valuation.We investigated all of these potential sources of exception value to forecast future changes in assessed value for the City Center URA. For new development we examined building permit data from January 1, 2012 through June 30, 2013. Due to the lag time between real estate market activity and the release of the tax rolls, any construction that occurred during calendar year 2012 has yet to come on the tax rolls, and will first be seen for FYE 2014. Thus, recent historical building permit data gives us a very good idea of short-term trends in exception value. However, the City Center URA experienced no new development or significant redevelopment during this time period, and therefore we assume zero exception value from new development through FYE 2015. Similarly, the County Assessor confirmed that there were no property accounts within the City Center URA that appealed their valuations in FYE 2013, which removes this as a potential cause for short-term decreases in assessed value. Finally, we looked at recent sales data to determine if some properties may see declines in value due to recent sales prices that are lower than their current assessed values. The County Assessor reported ten properties in the City Center URA have sold since January 1, 2012. Although most of those properties sold for well above their assessed values, two of those properties sold for less than their assessed values, which will likely result in a decrease in assessed value for the URA of$117,400 in FYE 2014. To forecast long-term changes in assessed value from exception events, we evaluate the area's potential for new development. Attachment B. Map of Tigard City Center URA Vacant Land Tigard City Center URA-TIF Forecast ECONorthwest August 19,2013 5 shows all parcels that are officially vacant, according to data provided by Metro and the County Assessor. These maps show that other than a few large public right-of-way parcels, there are very few properties in the URA that are vacant. This limits new development in the area to redevelopment of non-vacant sites. To determine the potential for redevelopment of non-vacant properties, we looked at the ratio of improvement to land value for properties in the URA. Attachment C. Map of Tigard City Center URA Improvement to Land Value Ratio shows each parcel's ratio of improvement to land value. Most properties in the URA have improvement values less than two times their land values, and many of those properties have improvement values less than their land values. In general, this indicates that much of the property in the URA is underutilized, which is conducive for redevelopment. For our long-term forecast, FYE 2016 and beyond, we have assumed new development each year results in new assessed value equal to 1.0% of the prior year's valuation of real property. Combined with our appreciation assumptions discussed previously in this document, this results in a forecast of total growth in assessed value that is reasonable and conservative, given historical trends in Washington County and the City of Tigard. Other property types All of the analysis in the previous section was specific to real property. However, the area also includes assessed value for utility, personal (i.e., machinery and equipment), and manufactured (i.e., mobile homes). Combined, these property types account for 19% of the URA's total assessed value. These property types are less predictable than real property, as they do not have the same cushion between assessed value and real market value that real property does. For the very small amount of manufactured property in the area (less than$50,000 of total value), our forecast conservatively assumes that it depreciates to$0 in FYE 2014, and remains at $0 throughout the duration of the forecast period. For utility and personal property, we have assumed no change in value through FYE 2015, followed by 1.0% annual appreciation for the duration of the forecast period. This is based on our experience with our urban renewal areas, in which annual changes in value for these property types can be volatile,but long-term trends exhibit slow growth. Forecast Exhibit 5 shows our assumed appreciation rates for all property types for all years of the forecast period. Tigard City Center URA-TIF Forecast ECONorthwest August 19,2013 6 Exhibit 5.Tigard City Center URA, property value appreciation assumptions, FYE 2013-2030 Appreciation Assumptions FYE R U P M 2013 2014 2.91% 0.00% 0.00% -100.00% 2015 2.91% 0.00% 0.00% 0.00% 2016 3.00% 1.00% 1.00% 0.00% 2017 3.00% 1.00% 1.00% 0.00% 2018 3.00% 1.00% 1.00% 0.00% 2019 3.00% 1.00% 1.00% 0.00% 2020 3.00% 1.00% 1.00% 0.00% 2021 3.00% 1.00% 1.00% 0.00% 2022 3.00% 1.00% 1.00% 0.00% 2023 3.00% 1.00% 1.00% 0.00% 2024 3.00% 1.00% 1.00% 0.00% 2025 3.00% 1.00% 1.00% 0.00% 2026 3.00% 1.00% 1.00% 0.00% 2027 3.00% 1.00% 1.00% 0.00% 2028 3.00% 1.00% 1.00% 0.00% 2029 3.00% 1.00% 1.00% 0.00% 2030 3.00% 1.00% 1.00% 0.00% Source:ECONorthwest Exhibit 6 shows our assumed changes in assessed value from new development and other exception events for all years of the forecast period. Note that the assumptions for new development are shown in dollars per year,but are based on an underlying assumption of 1.0% of the prior year's real total real property valuation. FYE 2014 and 2015 are highlighted,because those assumptions are based on reported appeals, sales, and new development data from the City of Tigard and the Washington County Assessor. Exhibit 6.Tigard City Center URA, assumed exception value, FYE 2014 - 2030 FYE Appeals Sales New Dev Total 2014 $ - $ (117,400) $ - $ (117,400) 2015 $ - $ - $ - , $ - 2016 $ - $ - $ 799,692 $ 799,692 2017 $ - $ - $ 831,679 $ 831,679 2018 $ - $ - $ 864,946 $ 864,946 2019 $ - $ - $ 899,544 $ 899,544 2020 $ - $ - $ 935,526 $ 935,526 2021 $ - $ - $ 972,947 $ 972,947 2022 $ - $ - $ 1,011,865 $ 1,011,865 2023 $ - $ - $ 1,052,339 $ 1,052,339 2024 $ - $ - $ 1,094,433 $ 1,094,433 2025 $ - $ - $ 1,138,210 $ 1,138,210 2026 $ - $ - $ 1,183,739 $ 1,183,739 2027 $ - $ - $ 1,231,088 $ 1,231,088 2028 $ - $ - $ 1,280,332 $ 1,280,332 2029 $ - $ - $ 1,331,545 $ 1,331,545 2030 $ - $ - $ 1,384,807 $ 1,384,807 Source:ECONorthwest Tigard City Center URA-TIF Forecast ECONorthwest August 19,2013 7 i I Exhibit 7 combines all of our assumptions for future growth in assessed value into our final forecast of assessed value. We forecast annual growth of 2.21% in FYE 2014, which is constrained by the lack of new development and the sale of two parcels for prices below their previous assessed values. Longer-term, the area should recover from the recession to experience steady appreciation and some new development. We assume the area will be able to achieve average annual growth in assessed value of roughly 3.5% per year. It is likely, however, that this growth will not be as consistent as what is shown in Exhibit 7. New development will likely occur sporadically, and in larger increments. Exhibit 7.Tigard City Center URA,forecast of assessed value, FYE 2013 - 2030 Assessed Value Annual % FYE Appreciation Exception Total Growth 2013 92,888,162 2014 2,169,242 (117,400) 94,940,004 2.21% 2015 2,261,528 - 97,201,532 2.38% 2016 2,571,399 799,692 100,572,623 3.47% 2017 2,669,085 831,679 104,073,387 3.48% 2018 2,770,627 864,946 107,708,960 3.49% 2019 2,876,178 899,544 111,484,682 3.51% 2020 2,985,899 935,526 115,406,107 3.52% 2021 3,099,955 972,947 119,479,009 3.53% 2022 3,218,520 1,011,865 123,709,394 3.54% 2023 3,341,772 1,052,339 128,103,505 3.55% 2024 3,469,901 1,094,433 132,667,839 3.56% 2025 3,603,099 1,138,210 137,409,148 3.57% 2026 3,741,569 1,183,739 142,334,456 3.58% 2027 3,885,521 1,231,088 147,451,065 3.59% 2028 4,035,175 1,280,332 152,766,572 3.60% 2029 4,190,755 1,331,545 158,288,872 3.61% 2030 4,352,503 1,384,807 164,026,182 3.62% Calculated by ECONorthwest Exhibit 8 puts this forecast of assessed value into context,by comparing historical and forecast growth in assessed value for the City Center URA. Historical average annual growth in assessed value for the area has been about 5% per year, which is higher than the forecast growth rate of about 3.5% per year, but overall Exhibit 8 shows future growth that is generally compatible with the brief historical data for the area. Tigard City Center URA-TIF Forecast ECONorthwest August 19, 2013 8 Exhibit 8.Tigard City Center URA, historical and forecast growth in assessed value (frozen base and excess value), FYE 2007 - 2030 180 - I 160 I 140 t 120 1 0100 I 80 60 40 20 I 2007 2012 2017 2022 2027 a Frozen Base +Excess Value Calculated by ECONorthwest,with historical data from the Washington County Office of Assessment and Taxation. Exhibit 9 provides additional context for our forecast of assessed value growth for the City Center URA. Exhibit 9 shows the annual growth in assessed value for the City of Tigard and Washington County, each year from FYE 2005 to 2013. Prior to the recession,both jurisdictions routinely experienced annual growth in assessed value ranging from 4%to 6%.During the recession, this growth dropped into the 2% to 3% range. This data suggests that, on average, if the Tigard City Center URA were to receive it's "fair share" of regional growth, then it would likely result in annual growth of about 4%, which is slightly higher than what we have assumed in our forecast. Tigard City Center URA-TIF Forecast ECONorthwest August 19,2013 9 Exhibit 9.Washington County and City of Tigard,annual percentage growth in assessed value, FYE 2005 - 2013 10.0% - 8.0% 6.0% g 'Pl\.\• =: 4.0`Yo 2.0% 0.0% , 2005 2006 2007 2008 2009 2010 2011 2012 2013 mIllmWashington County • •0Tigard Calculated by ECONorthwest with source data from the Washington County Office of Assessment and Taxation. TIF Revenues After calculating the consolidated tax rate and forecasting future assessed value, the calculation of TIF revenues is straightforward. Exhibit 10 shows the forecast growth in TIF revenues from FYE 2013 to 2030.TIF revenues which were$304,379 in FYE 2013 are expected to grow to over $1 million per year by the end of the forecast period. Tigard City Center URA-TIF Forecast ECONorthwest August 19,2013 10 Exhibit 10.Tigard City Center URA,forecast of TIF revenues, FYE 2013 - 2030 Assessed FYE Value Frozen Base Excess Value Tax Rate TIF 2013 92,888,162 69,207,378 23,680,784 12.8534 304,379 2014 94,940,004 69,207,378 25,732,626 12.6796 326,279 2015 97,201,532 69,207,378 27,994,154 12.5433 351,139 2016 100,572,623 69,207,378 31,365,245 12.3559 387,546 2017 104,073,387 69,207,378 34,866,009 12.1717 424,379 2018 107,708,960 69,207,378 38,501,582 12.1717 468,630 2019 111,484,682 69,207,378 42,277,304 11.9692 506,026 2020 115,406,107 69,207,378 46,198,729 11.9692 552,962 2021 119,479,009 69,207,378 50,271,631 11.9692 601,711 2022 123,709,394 69,207,378 54,502,016 11.9692 652,346 2023 128,103,505 69,207,378 58,896,127 11.9692 704,940 2024 132,667,839 69,207,378 63,460,461 11.9692 759,571 2025 137,409,148 69,207,378 68,201,770 11.9692 816,321 2026 142,334,456 69,207,378 73,127,078 11.9692 875,273 2027 147,451,065 69,207,378 78,243,687 11.9692 936,514 2028 152,766,572 69,207,378 83,559,194 11.9692 1,000,137 2029 158,288,872 69,207,378 89,081,494 11.9692 1,066,234 2030 164,026,182 69,207,378 94,818,804 11.9692 1,134,905 Calculated by ECONorthwest Based on these projections, we estimate that borrowing capacity for the URA would be about $1,975,000 in FYE 2014. The URA Plan states, "No new indebtedness to be repaid with tax increment revenues may be incurred after the twentieth anniversary of the effective date of the Plan." As the Plan was approved by voters in May of 2006,this requires all indebtedness to be incurred no later than FYE 2026. Assuming periodic borrowings over the life of the URA, the projected TIF revenues shown in Exhibit 10 could support up to$13,200,000 of total indebtedness to be incurred by FYE 2026. This is less than the$22,000,000 maximum indebtedness allowed by the URA Plan. Thus, to fully implement the Plan, the URA will need to generate more TIF revenue than we have forecast, tap into funding sources other than TIF, or extend the timeframe for incurring/retiring indebtedness. Tigard City Center URA-TIF Forecast ECONorthwest August 19, 2013 11 Attachment A 1 Tigard Urban Renewal Area 4 , l'illk •' � pr- . i ,1 :ri ina � ► 1 ∎. orris Wym. .1; t ►� 'T ■ ■ 14f1.11 .111.1.01 IN 1114 Van 100 Ilik.,\ . -1 1 I 1 19■ZZ fel 0 r•Zir 40,0'.1 i el&, *.ai.: ,,., .k,,, Wyr--- so • Al,fr.,.,z--,.., 111,„4-‘0, --ocg, iik 11 'To:-'---,- • I" ilip 1 rte- III �� 4t N'- 4 44•1 > IN. 0 . ,,-1:1% . _,"'• 4, °3 •f`'•, � . , •• J ls, . > �9A a4L *A4-s ... oc, 0 % /oe jimili,t 4I • *. Vil #.,/ _ 11.•., or 4 „4. k ,. s* , 40 .k, 1,, -,,, -, . ,. o**_,.,. .... 14 ,,, ........,, , - .11,,re,s0T Oirt .. re...," -- seN4)1 * *444* 4 144143'..weril a A OR,galLar -,, ....L. Iry wir. a •. t to,mrial. mink 2 ra t4 iI•I■ i ,- '_ 0 0.1 0.2 mi Assessed Value as a percent of Real Market Value I i I IM Under 60% 60890,° ECONorthwest ECONOMICS • FINANCE • PLANNING 90%+ Exempt E:\ACTIVE PROJECTS\21466_TIGARD_URA\MXDS\21466_Tigard_AVRMV.mxd Attachment B riiMINNIMIN...7...1.1 11111m ' — 1111 IIMIM MI Ir. irl — NM n.... Tigard Urban Renewal Area / ` 0 ♦ I � .� �' - .■ •Y1 ��,a _,�'1,� , NE it gw, ......_ _ , I:. 4 •Irlum111111ntani-roml kt, wro 51 "VP'S* , frANI .' z............ (,. IA iii 4.11 ■ t ill II I lir ,,,, *I - %;:41:4.1 I.0444 r .:4.41r,o`c, 4 siwki]L * k '- r N. ** *‘:• - s _.441. 40,-)4t, .,, eV, qr • %OIL.. 1111 III Ilk _ ., , , • <,,\,,., . ,,,,,, EN lik* 9 #' EviFt. ■ P 4N I 444<73' ' • A■#e" lit 400. .., , e■ V* /ts" '": **w • Re ..7.41/ z.,, „,, , , .4 ..,,,,, _ / . ..,. . , , AIP,,,,-- *00,,..„ ,,, . .) r \14.,_ • 40., 4014 9 #67 . / . 0, „,„ 0 0,3 40,0, 6 11,11‘ / . 4** •Alls. � �, ♦ f♦ �` ii ♦ ;ter ♦��►� 6O I ' eit •�'∎ • s *ii, * 1 r� i� �`- is r.:s ow-,00 , :„,..,,L ..1,no i Ills\ 1 4 v 1A.■it w.sr AIIIII II■■■■I:=am .■m_ 111 0 0.1 0.2 mi I I I Vacant Land in the Tigard URA Metro RLIS Vacant Land dataset (2012) ECONorthwest ECONOMICS • FINANCE • PLANNING Vacant (assessor's PROP_CODE) E:\ACTIVE PROJECTS\21466_TIGARD_URA\MXDS\21466 JigardVacancy.mxd Attachment C rilliSEMMIIIILIIIIErdralliMBINI=M11 11., 41111111i Til Tigard Urban Renewal Area ■II, pvA -Ilk . .. • .....: alai mum —1.••Thwilors".-41 saunligum 110 ,16,- � : Sr m■.. "..�� ; warm!L or g °A • •� m• f ,k _,.,- 0 vole: ---woni 11 raw . r'• • mom sx, 1 Alfr ,,,, ilif,,--%74,174:474: -1.7.047. „ . if sk.,. 4.4 SS 4 ow Ilk A A, 7i*PM I k # VI .4„ ■ * , 4 1 '�� . . mi. ..... , ,.. ' ,� 111 V .. ti ■ i Vii '.4,.., ot 4 • kvo , ._.■■• lir 0 4* . 4, 5 '*■-te'y :44■1i, / &'' „ t...A • 0* ft''l / . 404 11 oilk%•40,- a*, dab 0 . ASM■ 41 ritgli it 04 airAto ‘ it Ng hi 1 ■ yestok, 0 Improvement to Land Value Ratio I oil 0I2 mi ° ECONorthwest ■ 0.01_ 1 ECONOMICS • FINANCE • PLANNING 1.01-2 2.01-4 Greater than 4 E:\ACTIVE PROJECTS\21466 TIGARD_URA\MXDS\21466 TigardltoL.mxd TIGARD CITY CENTER URA For e�«S fTIF N eav 4)7-1 .1-- I 1 4 - N ,� 4 .. iv._ - :0.. ., 1 > . L- do ---/ / ,\ . ..\ \ ,c,e/.,„ ECONorthwest ECONOr'ICS•FINANCE•PLANNING OUTLINE About the City Center URA Forecast Growth in Assessed Value Forecast Tax Increment Finance (TIF) Revenues Borrowing Capacity HISTORICAL TIE 120 100 80 O 60 - 40 20 2008 2009 2010 2011 2012 2013 Frozen Base Excess Value AV BY PROPERTY TYPE Real h. Personal •Utility •Manufactured LAND USE ■COMMERCIAL Total I M VACANT Acreage PUBLIC ■ •Single-Family Total AV Multi-Family ' ' ' '. '-'.1 ‘C '''—"1 I''-i.ri—7 1,--•'-'''-')'471 17 ii.liii -F-1 ' ----"N . ' '' '--1, ', - " ' \ -, -7- a. 0,,, ,! .,. . -A --_i .--`• ' -, IL T , I • r * , , _ • r y( �! : nd Use(Rylg,AU$'ust 2 ��‘ �,> I SCR k t y k �� i � t: \ 1 , `=Vacant \y _____ _ ___ . ,_ SHORT-TERM FORECAST • No new development in area (building permits) • No properties under appeal • Two properties sold at below assessed value Rite Aid parking lot Lexie Ainge Cottle Child and Family Therapy AV TO RMV RATIOS $25 $20 — $15 - 2 $10 $5 f on h 11 Exempt <10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 90-99% 100% o• atI0 :---. • iiii „k- ,.7 I ' . , ,, -...„ 1 , _.4.. 4 ,. 11N111k. 44,1■ �, ii t �, .( ( j iii WNW �,1 _. r IL___•lb * v '/ `_`� ,Vii;' / NV • / \ ,\'�, li lib. / (-/,\ /, --- , ,■t_ \ lib P. .... \ ,,,.. \, . . ,, .7'. 17-. .,...,4„ ,:,. _.„ , ,, . r v•..- , ii., , ,, \ 0:-.. '.404,,, : It t AV as a percent of RMV V. 04". ,,`, •� Under 60% ■ S L. r 60-8 9% 401 /n rift •∎•�it�*,, �'-~: i Exempt -----r i -ter • MARKET TRENDS - VACANCY g 20% 18% 16% 14% 12% 10% 8% 6% ‘.. miNmarammg.i .‘‘°N .."Nliss._ 4% 2% } --- 0% • 20031Q 20041Q 20051Q 20061Q 20071Q 20081Q 20091Q 20101Q 20111Q 20121Q 20131Q Retail Office MARKET TRENDS - RENT $25.00 $20.00 $ .00 $10.00 - $5.00 $0.00 2003 1Q 2004 1Q 200510 200610 2007 1Q 2008 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013 1Q Retail Office I A ! F- Vacant Land ,f iii .`itio ..,621,1- �` �+0• I.._ all gmig :. �'• < is •iii I. ,^ �' .,\.\._..,_ / • lfribla �,\ \\ I 's ,,,,, / / Al :: rill #es'Ptc,--/\ .. ,4 111 • • 07:. ��\ '1. RLIS Vacant Land dataset(�t014j 1- J Vacant(assessor's PROP_ Ol _Il [7:711 li, - ' i 'S ,‘ -- .' ' ---- ilk MN•■• X \ . ila 7---I X N. \ 'l�1y'-�`.-A� Improvement to - Land' Value Ratio } ,.. ...740. ..„, . , /,' , \ '#' „Ili .../ , •1 ri sfrti: Improvement to Land Value Ratio IP 0 ' 0.01 -1 1.01 -2 .e 2.01 -4 or Greater than 4 hISO ' # $ V13(. '' :.., • I ttlitt OA,* 41$4104; ..: KEY ASSUMPTIONS me Appreciation: Real: 3% Personal: 1% Utility: 1% New Development: 1% of prior year Real AV Overall Growth Rate: 3.5% per year 1 ASSESSED VALUE FORECAST 180 - 1 160 - 140 120 1 60 I 40 I I 20 I 2007 2012 2017 2022 2027 Frozen Base Excess Value HISTORICAL TRENDS 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 •Washington County Tigard TIF FORECAST Assessed FYE Value Frozen Base Excess Value Tax Rate TIF 2013 92,888,162 69,207,378 23,680,784 12.8534 304,379 2014 94,940,004 69,207,378 25,732,626 12.6796 326,279 2015 97,201,532 69,207,378 27,994,154 12.5433 351,139 2016 100,572.623 69,207,378 31,365,245 12,3559 387.546 2017 104,073,387 69,207,378 34,866,009 12.1717 424,379 2018 107,708,960 69,207,378 38,501,582 12.1717 468,630 2019 111,484,682 69,207,378 42,277.304 11.9692 506,026 2020 115,406,107 69,207,378 46,198,729 11.9692 552,962 2021 119,479,009 69,207,378 50,271,631 11.9692 601,711 2022 123,709,394 69,207,378 54,502,016 11.9692 652,346 2023 128,103.505 69,207,378 58,896.127 11.9692 704,940 2024 132,667.839 69,207,378 63,460.461 11.9692 759,571 2025 137,409,148 69,207,378 68,201,770 11.9692 816,321 2026 142,334,456 69,207,378 73,127,078 11.9692 875,273 2027 147,451,065 69,207,378 78,243,687 11.9692 936,514 2028 152,766,572 69,207,378 83,559.194 11.9692 1,000,137 2029 158,288,872 69,207,378 89,081,494 11.9692 1,066,234 2030 164,026,182 69,207,378 94,818,804 11.9692 1,134,905 BORROWING CAPACITY Current borrowing capacity: $1,975,000 Borrowing capacity through FYE 2026: $13.2 million Maximum Indebtedness: $22 million To achieve Maximum Indebtedness: Need faster TIF growth Tap into other revenue sources Extend timeline for incurring debt QUESTIONS Nick Popenuk ECONorthwest 503-222-6060 popenuk@econw.com AGENDA ITEM NO. 2-B CITIZEN COMMUNICATION DATE: September 3, 2013 (Please keep remarks to around 2-5 minutes. If a large number of citizens have signed in, the Mayor may ask that testimony be kept to around 2 minutes.) 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: 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. 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 AIS-1424 3.A. Business Meeting Meeting Date: 09/03/2013 Length (in minutes): Consent Item Agenda Title: Approve City Council Meeting Minutes Submitted By: Carol Krager, City Management Motion Requested Meeting Type:Type: q g yp e Consent ent 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 Attached council minutes are submitted for City Council approval. (Dates of meetings are listed under "Attachments" below.) OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Placeholder for April 30,2013 Town Hall Notesr May 14,2013 Minutes May 28,2013 Minutes June 11,2013 Minutes Placeholder for June 18,2013 Minutes AIS-1400 3.B. Business Meeting Meeting Date: 09/03/2013 Length (in minutes): Consent Item Agenda Title: Adopt a Resolution Appointing Members and Alternates to the Park and Recreation Advisory Board Prepared For: Steve Martin Submitted By: Steve Martin, Public Works Item Type: Resolution Meeting Type: Consent Agenda Public Hearing: No Publication Date: Information ISSUE Shall the council adopt a resolution appointing Holly Polivka and Claudia Ciobanu as members and Gary Romans and Paul Drechsler as alternate members to the Park and Recreation Advisory Board (PRAB)? STAFF RECOMMENDATION / ACTION REQUEST Adopt the resolution. KEY FACTS AND INFORMATION SUMMARY There are currently two member vacancies and up to two alternate member vacancies on the PRAB. In July, the Mayor's Appointment Advisory Committee interviewed eight people who submitted applications to serve on the board. The applicants included PRAB member, Holly Polivka, and alternate member, Gary Romans,whose terms expired at the end of June. The committee recommended appointing Holly Polivka and Claudia Ciobanu as members and Gary Romans and Paul Drechsler as alternate members of the PRAB. A resolution appointing these members and alternates is attached for council consideration. A short biography of the recommended members and alternates is attached. OTHER ALTERNATIVES The council could choose not to approve the resolution and provide staff with direction on filling the vacancies. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS Council Priorities for Six-month Focus Other initiatives - Evaluate options and resources to create a pilot recreation program •Use recreation inventory to match with program demands/service gaps •Determine options for future programming (including partnerships) The PRAB continues to explore recreation program options in the City of Tigard. DATES OF PREVIOUS COUNCIL CONSIDERATION This the first time these appointments have come before the council. The council last appointed members to the PRAB in 2011. Attachments Resolution Appointee Biographical Information • • Park and Recreation Advisory Board (PRAB) Recommended Appointees Biographical Information Members Holly Polivka • M.A., Counseling • Master of Library Science • Youth services librarian at Tigard Public Library • Tigard resident for 12 years • Served one term as PRAB member Claudia Ciobanu • B.S., Business Administration and Journalism • Masters, Business Administration • Certificate in Public Management • Senior policy advisor at Oregon Parks and Recreation Department • Tigard Resident for 1.5 years Alternate Members Gary Romans • Retired— former high tech and sales manager • Part time tour guide at Portland Walking Tours • Volunteer DJ — KMHD —host of"What is Jazz" • Tigard resident for 15 years • Served one term as PRAB alternate member Paul Drechsler • B. S., Communications • Vice president branch manager at a Tigard bank • Board member, treasurer at Rockwood Business Coalition • Portland resident, employed in Tigard AIS-1385 3. C. Business Meeting Meeting Date: 09/03/2013 Length (in minutes): Consent Item Agenda Title: Adopt a Resolution Approving the City of Tigard Naming& Recognition Policy Prepared For: Brian Rager Submitted By: Greer Gaston, Public Works Item Type: Resolution Meeting Type: Consent Agenda Public Hearing: No Publication Date: Information ISSUE Shall the council adopt a resolution approving the City of Tigard Naming& Recognition Policy? STAFF RECOMMENDATION / ACTION REQUEST Adopt the resolution. KEY FACTS AND INFORMATION SUMMARY The city does not have an all-encompassing policy to name key features (open-air shelters, sports fields, gardens, rooms, trails, etc.), buildings and property,including parks. Two documents, the memorial policy (adopted via Resolution No. 99-37) and the Property Acquisition Workbook, touch on the naming issue. However, the memorial policy is technically limited to names that honor someone who is deceased. The workbook only discusses naming in the context of a property seller's desire to have naming rights. Neither of these documents address other scenarios (like naming an existing park or feature after a living individual), nor do they outline a request/approval process, or identify who has naming authority. In 2012 the council provided direction on a naming policy and asked staff to create such a policy; staff developed the attached Naming& Recognition Policy. The council was briefed on that policy at its June 18, 2013,workshop meeting. The Naming& Recognition Policy establishes: •The council as the decision-making body to name key city features,buildings and property, including parks. •A procedure to consider city-initiated and non-city-initiated naming requests for key city features, buildings and property. •How naming requests will be handled during the property acquisition process. •A procedure to consider requests to install recognition items such as benches, picnic tables, trees, etc., on city property. If the council adopts the attached resolution: •The Naming& Recognition Policy will go into effect immediately. Staff recently received two non-city-initiated naming requests. Per the new policy, staff will schedule an informal discussion of these requests at an upcoming council meeting. •The resolution establishing the memorial policy will be rescinded; all naming requests,including memorials,will be processed via the new policy. OTHER ALTERNATIVES The council could choose not to approve the policy or could propose changes to the policy. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Not applicable DATES OF PREVIOUS COUNCIL CONSIDERATION The council was briefed on the Naming& Recognition Policy at its June 18, 2013,meeting. Attachments Resolution Naming&Recognition Policy(Attachment to Resolution) AIS-1414 3.D. Business Meeting Meeting Date: 09/03/2013 Length (in minutes): Consent Item Agenda Title: Contract Award - Utility Business Planning Services Prepared For: Joseph Barrett Submitted By: Joseph Barrett, Financial and Information Services Item Type: Motion Requested Meeting Type: Consent Agenda - LCRB Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Local Contract Review Board award a contract for utility business planning services to both HDR, Inc. and CH2M-Hill? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends the Local Contract Review Board award the contract for the city's utility business planning service needs to both HDR,Inc. and CH2M-I-Iill in combined amount of$250,000 and authorize the City Manager to take all necessary steps to execute the contracts. KEY FACTS AND INFORMATION SUMMARY The city's Public Works Department operates and maintains water, sanitary, and storm water systems. The department occasionally requires utility business professional services to help facilitate and solve complex issues or problems relating to the technical, managerial, and financial aspects of operating and maintaining these systems that deliver water, sanitary, and storm water services. The city will utilize consultant(s) to provide the city with utility business professional services and project-specific services related to technical, managerial, and financial continuous improvement, tactical planning, benchmarking and performance measurement, privatization and outsourcing, optimization and staff utilization, and organizational restructuring. This work may include updates to technical and financial planning tools. The city issued a Request for Proposal for the work in late May of this year. Upon closing, the city received proposals from the following firms: •CH2M Hill •HDR Engineering,Inc. •FCS Group A review and selection ream was assembled and scored the received proposal based on the following criteria that were in the Request for Proposal: •Project Approach 20% •Project Experience 20% •Project Team Experience 20% •Rates 20% •References 20% Based on the selection team's recommendation staff recommends both HDR,Inc. and CI12M-hill be awarded contracts as they are both very qualified to perform the work. The contracts will be for a possible five years with a combined estimate $50,000 per year for a total not to exceed of$250,000. Staff requests that council approve the two firms selected to provide utility business professional services for the city as an annual contract, renewable for up to 5 years. However, the qualified firm or consultant(s) providing professional services will be required to negotiate individual scopes of work and budgets reviewed by the staff during the course of the contract. OTHER ALTERNATIVES The Local Contract Review Board may reject all proposals and direct staff to reissue the Request for Proposal. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION This is the first time the Local Contract Review Board has been presented this contract award. Fiscal Impact Cost: $250,000 Budgeted (yes or no): Yes Where budgeted?: \Water/\eater CIP Additional Fiscal Notes: The contract with be for an average of$50,000 per year over five years for a not to exceed total of $250,000. The work may be billed to individual projects in Water or Water CIP funds. If appropriations are not granted in future years the City is able to cancel the contract. • Attachments No fiPP(.r)ail ached AIS-1411 3.E. Business Meeting Meeting Date: 09/03/2013 Length (in minutes): Consent Item Agenda Title: Contract Award - Right-of-Way Mowing Services Prepared For: Joseph Barrett Submitted By: Joseph Barrett, Financial and Information Services Item Type: Motion Requested Meeting Type: Consent Agenda - LCRB Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Local Contract Review Board award a contract for right-of-way mowing services to Chorak Mowing? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends the Local Contract Review Board award the contract for the city's right-of-way mowing service needs to Chorak Mowing in the amount of$225,000 and authorize the City Manager to take all necessary steps to execute the contract. KEY FACTS AND INFORMATION SUMMARY The city has approximately 33,000 linear feet of right-of-way areas along ditch lines, railroad tracks, etc. that require maintenance,including mowing and general weed removal. These areas are typically mowed and weeded five or six times per year via contracted services. The city issued a Request for Proposal for this work in late May. Upon closing, the city received a single proposal, from a firm, Chorak Mowing, that the city has used for nearly the past ten years. A review and selection team was assembled and scored the received proposal based on the following criteria that were in the Request for Proposal: •Firm and Team Qualifications 40% •Project Understanding and Approach 30% •Cost Structure 30% Based on the selection team's recommendation (an average score of 86%), staff recommends Chorak Mowing be awarded the contract as the best and most responsible firm for the work. The contract will be for a possible five years with an estimate $45,000 per year for a total not to exceed of$225,000. OTHER ALTERNATIVES The Local Contract Review Board may reject all proposals and direct staff to reissue the Request for Proposal. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION This is the first time the Local Contract Review Board has been presented this contract award. Fiscal Impact Cost: 225,000 Budgeted (yes or no): Yes Where budgeted?: Streets Additional Fiscal Notes: This contract is for $45,000 annually and will be budget in the Street Division operating budget. If in any year the budget allocation is not approved the City may terminate the contract. Attachments No fle(c)allached. III • AIS-1412 3.F. Business Meeting Meeting Date: 09/03/2013 Length (in minutes): Consent Item Agenda Title: Contract Award - Right-of-Way Maintenance and Improvements Prepared For: Joseph Barrett Submitted By: Joseph Barrett, Financial and Information Services Item Type: Motion Requested Meeting Type: Consent Agenda - LCRB Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Local Contract Review Board award a contract for right-of-way maintenance and improvements to Cascadian Landscapers? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends the Local Contract Review Board award the contract for the city's right-of-way maintenance and improvement needs to Cascadian Landscapers in the amount of$126,787 and authorize the City Manager to take all necessary steps to execute the contract. KEY FACTS AND INFORMATION SUMMARY The city requires on-going maintenance and improvement services for the city's rights-of-way on collector and arterial streets. The contractor provides all personnel, tools, equipment, and materials necessary to perform the work. Maintenance work includes weed patrol and spraying,leaf and trash removal, pruning, fertilization,and turf management as needed. Improvements,which are largely planting and turf improvements, are scheduled for right-of-ways on Walnut and Gaarde Streets. The city issued a Request for Proposal for the work at the end of May of this year. Upon closing, the city received a single proposal, from Cascadian Landscapers. Cascadian has performed the work for the city over the past two years. A review and selection team was assembled and scored the received proposal based on the following criteria that were in the Request for Proposal: •Firm and Team Qualifications 25% •Project Understanding and Approach 25% •Cost Structure 50% Based on the selection team's recommendation (an average score of 85.5%), staff recommends Cascadian Landscapers be awarded the contract as the best and most responsible firm for the work. The contract will be for an amount not to exceed of$125,000 with $90,433 for maintenance and $26,787 for improvements. OTHER ALTERNATIVES The Local Contract Review Board may reject all proposals and direct staff to reissue the Request for Proposal. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION This is the first time the Local Contract Review Board has been presented this contract award. • Fiscal Impact Cost: $125,000 Budgeted (yes or no): Yes Where budgeted?: Street h'Iaintenance/Stormwater Additional Fiscal Notes: This contract is not to exceed $125,000,with $90,433 for maintenance of improved rights-of-way and $26,787 for improving degraded areas. Attachments No 1ile(r)attached. • • AI S-1295 4. Business Meeting Meeting Date: 09/03/2013 Length (in minutes): 5 Minutes Agenda Title: Citizen Advisory Committee - Tigard Triangle Strategic Plan Submitted By: Cheryl Gaines, Community Development Item Type: Resolution Meeting Type: Council Business Meeting - Main Public Hearing: No Publication Date: Information ISSUE A resolution to form a Citizen Advisory Committee for the Tigard Triangle Strategic Plan. STAFF RECOMMENDATION / ACTION REQUEST Staff recommends that Council approve the resolution forming the Tigard Triangle Citizen Advisory Committee. KEY FACTS AND INFORMATION SUMMARY The Tigard Comprehensive Plan outlines goals, policies and recommended action measures for economic development in the city. These goals include developing a strong economy and making Tigard a prosperous and desirable place to live and do business. Some of the policies and action measures to achieve these goals are related to the Tigard Triangle. For example, one policy is to focus a significant portion of future employment growth and high-density housing development in the Tigard Triangle and developing a comprehensive "Area Plan" for the Tigard Triangle to promote its full development. In addition the Comprehensive Plan transportation goals speak to developing mutually supportive land use and transportation plans and enhancing transportation functionality by enhancing multi-modal options. The City has been exploring and planning for potential high capacity transit by participating in SW Corridor and completing the Tigard High Capacity Land Use Plan. Tigard was awarded a Transportation Growth Management Grant to develop a strategic redevelopment plan for the Tigard Triangle. The statement of work for the plan includes a citizen advisory committee that will advise staff during the development of this plan known as the Tigard Triangle Strategic Plan. Resolution 08-47 establishes procedures to form and appoint limited duration citizen advisory committees. Step one of the two-step process includes approval of a purpose and charge statement, a list of stakeholder groups to be represented and a meeting protocol. The proposed purpose, charge and meeting protocol for this advisory group are part of the appended proposed resolution (Attachment 1). Staff proposes a 13 member committee that will include representatives from government agencies, community organizations,Tigard Triangle area businesses and property owners and residents of Tigard. The second resolution to Council will be for the appointment of specific citizens to fill the slots listed above. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS 2012 City Council Goals 1. Determine the economic development opportunities, development plan, city policies and regulation needed to position the Tigard Triangle as an I-ICT station location. 2013 citywide priorities are not finalized but key topics include progress on major projects such as the Tigard Triangle and community engagement. DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Resolution • AIS-1296 5. Business Meeting Meeting Date: 09/03/2013 Length (in minutes): 5 Minutes Agenda Title: Appoint Members of Tigard Triangle Citizen Advisory Committee Submitted By: Cheryl Gaines, Community Development Item Type: Resolution Meeting Type: Council Business Meeting - Main Public Hearing: No Publication Date: Information ISSUE Resolution appointing members to the Tigard Triangle Strategic Plan Citizen Advisory Committee (CAC). STAFF RECOMMENDATION / ACTION REQUEST Staff recommends that Council approve the resolution appointing members to the Tigard Triangle Strategic Plan Citizen Advisory Committee. KEY FACTS AND INFORMATION SUMMARY The Tigard Comprehensive Plan outlines goals, policies and recommended action measures for economic development in the city. These goals include developing a strong economy and making Tigard a prosperous and desirable place to live and do business. Some of the policies and action measures to achieve these goals are related to the Tigard Triangle. For example, one policy is to focus a significant portion of future employment growth and high-density housing development in the Tigard Triangle and developing a comprehensive "Area Plan" for the Tigard Triangle to promote its full development. In addition the Comprehensive Plan transportation goals speak to developing mutually supportive land use and transportation plans and enhancing transportation functionality by enhancing multi-modal options. The City has been exploring and planning for potential high capacity transit by participating in the planning process for SW Corridor and completing the Tigard High Capacity Land Use Plan. Tigard was awarded a Transportation Growth Management Grant to develop a strategic redevelopment plan for the Tigard Triangle. The statement of work for the plan includes a citizen advisory committee that will advise staff during the development of this plan known as the Tigard Triangle Strategic Plan. Resolution 08-47 establishes procedures to form and appoint limited duration citizen advisory committees. Step one of the two-step process includes approval of a purpose and charge statement, a list of stakeholder groups to be represented and a meeting protocol. The proposed purpose, charge and meeting protocol for this advisory group are part of the appended proposed resolution (Attachment 1). Staff proposes a 13 member committee that will include representatives from government agencies, community organizations,Tigard Triangle area businesses and property owners and residents of Tigard. A resolution for Council consideration is for the appointment of specific citizens to fill the 13 committee member slots. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS 2012 City Council Goals 1. Determine the economic development opportunities, development plan, city policies and regulation needed to position the Tigard Triangle as an HCT station location. 2013 citywide priorities are not finalized but key topics include progress on major projects such as the Tigard Triangle and community engagement. DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Appoint Tigard Triangle T_1C AI S-1371 6 Business Meeting Meeting Date: 09/03/2013 Length (in minutes): 10 Minutes Agenda Title: Consider a Resolution Approving the Purchase of the Steve Street Property and Authorizing the City Manager to Complete the Property Purchase Prepared For: Steve Martin Submitted By: Steve . Martin, Public Works Item Type: Resolution Meeting Type: Council Business Meeting- Main Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the council consider a resolution: •Approving the purchase of the Steve Street property from the Japanese International Baptist Church as outlined in the Purchase Agreement and Escrow Instructions? •Authorizing the the city manager to take all necessary action to complete the property purchase on behalf of the city? STAFF RECOMMENDATION / ACTION REQUEST Adopt the resolution. KEY FACTS AND INFORMATION SUMMARY In November 2010 Tigard voters passed a $17 million park bond measure. Eighty percent of bond proceeds were dedicated to acquiring park land and open space. In late 2010 the Park and Recreation Advisory Board (DRAB) was tasked with evaluating more than 60 potential park properties. The Steve Street property ranked near the top of the PRr\B's acquisition list. The 1.37-acre property is located near the end of Steve Street and at the north end of 84th Avenue off Pfaff le Street. The property is south of the existing_Japanese International Baptist Church, the owner of the vacant parcel. The property was appraised at $225,000; only about one-tenth of an acre cannot be developed. The rest of the property is suitable for residential development. In conjunction with the property purchase, the city would also purchase an easement from the church; that easement will enable people to access the park from Steve Street. If purchased, this property would be earmarked as a neighborhood park, in an area that does not have parks. P P P g P P Access would be from 84th Avenue on the south and Steve Street on the north. If the resolution is adopted: •The property will become a publicly-owned park and open space. •The city will purchase the property for$225,000 per the terms of the Purchase Agreement and Escrow Instructions. This document is fairly standard and has been reviewed by the city's real estate attorney. •The city will also purchase a pedestrian easement for$1,250 per the terms of the Purchase Agreement and Escrow Instructions. The easement will allow the public to access the park from Steve Street. OTHER ALTERNATIVES The council could choose not to adopt the resolution; the city would not purchase the property. COUNCIL OR CCDA GOALS, POLICIES, MASTER PLANS Acquisition of this property is consistent with the goals of the 2009 Park System Master Plan. DATES OF PREVIOUS CONSIDERATION The council authorized staff to negotiate the purchase of the Steve Street property at its January 22,2013, executive session. Fiscal Impact Cost: $226,250 Budgeted (yes or no): Yes Where Budgeted (department/program): Park Bond Funds Additional Fiscal Notes: Based on council direction, the city negotiated the purchase of the property and the easement with the seller. The city and seller have agreed to a purchase price of$225,000 for the property and $1,250 for the pedestrian easement—subject to council approval. Park bond dollars will be used to purchase the property and easement; park land acquisition is included in the 2013-2014 Capital Improvement Plan (CIP). Attachments Resolution Purchase Agreement and Escrow Instructions Steve Sr.Vicinty Map Steve St.Aerial Map Steve St.Photos AIS-1410 7. Business Meeting Meeting Date: 09/03/2013 Length (in minutes):20 Minutes Agenda Title: Tigard Triangle Strategic Plan Update Submitted By: Cheryl Gaines,Community Development Item Type: Update,Discussion,Direct Staff Meeting Type: Council Business Meeting - Main Public Hearing: No Publication Date: Information ISSUE Update City Council about the Tigard Triangle Strategic Plan. STAFF RECOMMENDATION / ACTION REQUEST Receive information about the progress of the Tigard Triangle Strategic Plan. KEY FACTS AND INFORMATION SUMMARY Project Update The project team is currently working on Tasks 1 (Public Involvement/Interagencey Coordination) and 2 (Existing Conditions).Attachment 1 provides a brief description of each task from the Tigard Triangle Strategic Plan. David Evans &Associates,Inc. (DEA) was awarded the contract to develop the Tigard Triangle Strategic Plan. Other plans completed by DEA include the Hayden Island Plan: City of Portland,the Fuller Road Station Area and TOD Strategy: Clackamas County,and the Park Avenue Neighborhood and Station Area Plan: Clackamas County. The consultant,Alex Dupey,will prepare an Existing Conditions report that reviews current city plans,policies and regulations along with existing infrastructure,market conditions and physical features that impact development within the Triangle. Interviews will also be conducted with developers of mixed use projects,brokers and those in the finance field in order to understand what regulations,incentives and densities work best for redevelopment in suburban settings. In addition,the City has contracted with Jean Lawson Associates (JLA) to facilitate the Citizen Advisory Committee (CAC) meetings,conduct stakeholder interviews,and assist with public information materials, including videos for the project website (www.tigard-or.gov/triangle). Our JLA project manager,Eryn Kehe,is currently conducting the stakeholder interviews and is getting good feedback from these interviews. After all of the interviews are completed, she will put together a summary report.The first CAC meeting will be held in mid to late September to discuss the project background,meeting guidelines,member roles and review of the Existing Conditions Report.The resolution to establish the CAC and appoint members is on tonight's agenda (September 3rd) for Council consideration. Next City Council Update The next Council update will be in mid October to present the following work products: 1.Existing Conditions Report and Maps 2.Expert Interview Summary 3.Stakeholder Interview Summary OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS 2012 City Council Goals 1. Determine the economic development opportunities, development plan, city policies and regulation needed to position the Tigard Triangle as an HCT station location. 2013 citywide priorities are not finalized but key topics include progress on major projects such as the Tigard Triangle, economic development, and community engagement. DATES OF PREVIOUS COUNCIL CONSIDERATION The last update was March 19, 2013. Attachments Scope of Work Summary AgendaQuick©2005-2013 Destiny Software Inc.,All Rights Reserved Attachment 1 Tigard Triangle Strategic Redevelopment Plan Statement of Work Summary Task 1: Public Involvement and Interagency Coordination Implement a public Involvement plan that includes Citizen and Technical Advisory Committee meetings and public open houses that will happen throughout the process. Task 2: Existing Conditions (October 2013) Consultant will prepare an existing conditions report that looks at physical conditions, market informaiton, previous planning efforts, current city policies such as Transportation System Plan, Comprehensive Plan, and Community Development Code. Task 3: Needs/Opportunities/Constraints and Tools Analysis (November 2013) Analysis of the information gathered in Task 2 to determine opportunities for improved Y g pp p transportation and constraints for redeveloment of the Tigard Triangle. The consultant will identify tools to overcome these constraints (including funding options) and develop criteria to evaluate the land use and transportation options developed in Task 4. Task 4: Options Development (February 2014) The consultant will develop land use and transportation redevelopment options for the study area considering objectives, opportunities, constraints and public input. Task 5: Options Evaluation and Refinement (May 2014) Evaluation of the land use and transportation options developed in Task 4, including costs for needed infrastructure. Task 6: Final Preferred Plan and Report (June/July 2014) The consultant will develop a preferred option, prepare adoptable regulatory implementation measures (zoning designation, development standards, "floating" zoning requirements, site design requirements, street layout and cross sections and development phasing and incentives, etc.) necessary to implement the preferred option, and complete a report that identifies next steps and issues for further refinement.