Agenda Item - 2001-08-07 - Number 4.4.1 - 4.4. 1
08/07/01
MINUTES OF JULY 3, 2001
SPECIAL MORNING MEETING
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` CITY COUNCIL MORNING MEETING MINUTES
11+ July 3, 2001
O.EGON
Mayor Judie Hammerstad called the special City Council meeting to order at 7:35 a.m. on
July 3, 2001, in the City Council Chambers.
Present: Mayor Hammerstad, Councilors Rohde, Schoen, Turchi, Graham, and McPeak.
Councilor Hoffman was excused.
Staff Present: Doug Schmitz, City Manager; David Powell, City Attorney; Robyn Christie, City
Recorder; Chris Jordan, Assistant City Manager; Jane Heisler, Long Range
Planning Manager
3. REVIEW EVENING AGENDA
Mayor Hammerstad noted that Councilor Graham would present the update on Council Goals
and Councilor Rohde would review the consent agenda.
• Item 4.3.3, use of alcohol in Millennium Park
Mayor Hammerstad asked if there was any discussion on Item 4.3.3, use of alcohol in
Millennium Park. Councilor Graham asked if the policy applied solely to Millennium Park or
were they setting a precedent for other parks. Doug Schmitz, City Manager, stated that it
applied only to Millennium Park. He noted that the City already allowed alcohol at Roehr Park
while the three years ago the Council specifically prohibited alcohol at Westlake Park.
Councilor Graham referenced page 80, the statement that beer and wine could not be served at
no charge. She asked if that meant that someone had to charge for wine at a wedding reception.
Mr. Schmitz indicated that the Parks &Rec Department proposed now to allow people to host a
bar at a private reception, as opposed to bringing in a caterer, provided that they met the OLCC
licensing regulations.
Councilor Graham held that that still meant that someone's nephew could not serve wine unless
he went through the OLCC training program. Councilor McPeak referenced the paragraph on
page 83, which relayed the previous discussion on the issue and confirmed Councilor Graham's
point. Mayor Hammerstad recalled objections (including hers) during the previous discussion
to requiring people to take the course in order to be bartenders at weddings.
Mr. Schmitz clarified that the proposed language meant that the alcohol server had to obtain the
necessary approval of the OLCC, which did not necessarily mean taking the OLCC course.
Councilor Rohde explained that a server's permit was not required at special events; only
employees had to have one.
Councilor McPeak indicated that she did not intend to object to the item but she was concerned
about the City's liability in the same way that individuals who allowed someone in their home to
drink to excess, and then that person later had an auto accident, were liable. David Powell, City
Attorney, confirmed that hosts or tenants of a City facility were liable in that situation. He
explained that the City's liability in this situation was low because the people were either serving
their own alcohol or hiring a professional licensed server; unless the City hosted an event and
served alcohol to an intoxicated person, there should not be a problem.
Councilor Graham observed that, with this ordinance applying only to Millennium Park, the
issue of allowing a family member to serve alcohol at a wedding reception at the Adult
Community Center or other City facility was a separate issue. Mayor Hammerstad concurred,
noting that that issue would come to the Council when the Parks Department returned with the
City Council Morning Meeting Minutes Page 1 of 12
July 3, 2001
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updated regulations. Mr. Schmitz agreed that it was a future decision. He mentioned that the
current regulations did allow the exception of consumption of alcohol in the Center dining room,
when offered for sale by an approved contractor.
Mayor Hammerstad confirmed to Councilor Turchi that this ordinance would allow a family
member of age, and with a one-time event temporary permit from the OLCC but no training, to
serve alcoholic beverages at a private event in Millennium Park.
Councilor Turchi asked why allow this at Millennium Park and not at other parks. Mayor
Hammerstad explained that the City was under a time crunch with Millennium Park because the
concert series was starting, whereas they had more time to consider other parks. Councilor
Schoen pointed out that the issue with other parks was that they were surrounded by
neighborhoods whereas the noise and activities at Millennium Park were confined to a specific
area.
Mayor Hammerstad spoke to pulling this item for further discussion tonight in order to allow
the citizens to hear the Council discussion and the decision. Councilor Turchi said that he did
not have a problem with people bringing beer and wine to a concert at Millennium Park but he
saw a difference between a relatively small group of people bringing their own alcoholic
beverages and a large event where they should have trained alcohol servers.
Mr. Schmitz suggested splitting the issue into two parts: one part dealing with the events
Councilor Turchi referred to (for future discussion) and the other part dealing with the concert
provision (for a decision tonight). Mr. Powell indicated that the Council could pass an amended
resolution tonight. The Council agreed by consensus
Item 4.3.2, Financial Policies
Councilor McPeak explained that her question did not relate to the changes themselves, rather
she needed clarification on No. 3 under Revenue Policies (page 37), which spoke of establishing
all user charged fees at a level related to the full costs. She asked if the City's subsidies on utility
bills for low-income people contradicted this policy.
Chris Jordan, Assistant City Manager, indicated that the low-income subsidy was the
exception to the rule. He spoke to continuing the City's current practice for this subsidy. He
concurred that the City's objective for the rest of its fees and charges was full cost recovery.
Mayor Hammerstad observed that they set the fees to recover the full cost of the service, which
included the subsidies.
Councilor McPeak asked for clarification on the `annual balancing' referred to under No. 1
under expenditure policies. Mr. Jordan mentioned that the State required cities to adopt a
budget annually. He explained that the City currently operated under an annual budget, although
in the past it did use a biennial budget with the second year as a planning budget. Mr. Powell
recalled a bill at the legislature to allow bi-annual budgeting. He said he would track that and see
what happened to it. Councilor McPeak indicated that if the Council did have the option of a
biennial budget, there were a couple of things that she would like to discuss.
• Item 4.2.1, Springbrook Creek restoration project
Councilor Graham asked where the 26.87 foot section was located and why the City was
working on that particular section. Mr. Schmitz said that it was the section behind the Spring
Village and the Taste of China restaurant. He indicated that the neighbors asked the City to work
on that section because of the sloughing that occurred during the City's work on Mountain Park
in previous years.
• Item 4.3.1, authorizing the Mayor to sign an intergovernmental agreement with
Clackamas County for mediation services
Councilor Graham referenced date stamp page 19. Mayor Hammerstad confirmed to
Councilor Graham that the city was billed for mediation services.
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July 3, 2001
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There were no corrections to the minutes.
• Citizen Comment
Councilor Turchi advised the Council that Mary Anne Carter called him last night and informed
him that several people would come to the meeting tonight to represent the under high school age
football community, which was concerned about whether or not they would have a place to play
this summer. Mayor Hammerstad and Councilor Graham each indicated that she received
the same call.
Mayor Hammerstad reviewed her intended remarks at the meeting to inform the public of the
upcoming Executive Session discussion of the issue and the Council's efforts to solve the
problem. Mr. Jordan suggested that the Mayor announce that staff would attend the Teams
Sports Advisory Committee's meeting Monday night to report on anything public that came out
of the Executive Session.
Councilor Rohde argued for holding the Executive Session in advance of the meeting tonight in
order to allow the Council to respond to the community's concern. Mayor Hammerstad
concurred.
Mr. Powell noted that staff was meeting with Dick Alexander at 4 p.m. to discuss the Field Turf
situation, which was why staff moved the Executive Session from the morning meeting to 6:30
p.m. or following the evening meeting. Mayor Hammerstad suggested moving the Executive
Session from 6:30 p.m. to 5:00 p.m. Mr. Powell indicated that the Council continuing a
morning Executive Session to this evening addressed the noticing problems.
Mr. Powell advised the Council that John Cox intended to discuss the issue of cars with for sale
signs that were parked in the right-of-way, and to ask the Council to pass an ordinance to prohibit
those. He recalled that the during the early 1990s the Council rescinded an ordinance prohibiting
for sale signs on cars because of an incident in which someone driving around with a for sale
sign on the car, parked, went into the bank, and came back to a citation on the car, which the
individual thought was silly.
Mr. Powell observed that the problem was that the City could not regulate the content of the
signs that it allowed. He indicated that he needed to finish his research into the question. He
noted that the Council typically did not respond during citizen comment. He suggested that the
Council ask staff to bring back a report on the issues involved.
Councilor Schoen asked how the City delineated between the bike lanes and the parking areas.
He mentioned two SUVs parked at McVey and South Shore all day with for sale signs on them
in what he thought should be the bike lane. Mr. Powell explained that it was illegal to park in a
properly marked bike lane but not in an unmarked area.
Councilor McPeak spoke in support of finding a way to regulate this offensive practice.
• Councilor Reports
Councilors McPeak, Rohde and Mayor Hammerstad indicated that each had a report to make.
Councilor Graham said that she had an announcement regarding two Youth Councilors.
Councilor Rohde agreed to that Mayor's request that he report on the concert series.
4. REVIEW FUTURE AGENDA ITEMS
Mayor Hammerstad advised the Council that Representative Richard Develin called her
yesterday to inform her that the transportation package at the legislature (HB 2408) was in
danger of going down at the Senate because the Senate decided to include in it the bill pre-
empting local governments from doing street utility fees.
Mr. Schmitz indicated to Mayor Hammerstad that the invoice from the National League of
Cities conference was part of the budget and did not need specific Council approval for payment.
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July 3, 2001 9
Mayor Hammerstad asked who wanted to do the welcoming at the July 4 summer concert
(6:25 p.m.) Councilor Rohde nominated the Mayor with Councilor Graham seconding the
nomination. The Mayor said that she would do it.
Mayor Hammerstad informed the Council that the organizers of the Timothy Lake Retreat on
July 26 and 27 had limited overnight accommodations available and have asked that each
jurisdiction attending send only two representatives. She asked who wanted to go with her.
Councilor Rohde indicated that he could attend as a JPACT representative, thus freeing up
another spot for a Lake Oswego Councilor. Mayor Hammerstad asked anyone interested to let
her know.
Councilor Graham suggested moving the July 9 meeting with the County from the Main Fire
Station to the Council Chambers, as she understood that a large number of people wished to
attend. Mayor Hammerstad concurred. Robyn Christie, City Recorder, indicated that the
Planning Commission used the Chambers that evening. She said that she would check on the
availability of the courtroom.
Mr. Schmitz confirmed to Mayor Hammerstad that Cathy Schroyer was notified of the
meeting and requested an opportunity to speak. Mayor Hammerstad indicated that, given the
full agenda, it was unlikely that they would have time for public testimony.
Mayor Hammerstad indicated to Councilor Schoen that she did add his concern about home
occupations on Country Club Road to the meeting agenda. She mentioned regulation of the
signage and Councilor Graham mentioned the parking as an issue.
Mayor Hammerstad rephrased Councilor Rohde's question to staff as could the City annex
only the property adjacent to Country Club Road without going into Forest Highlands. Jane
Heisler, Long Range Planning Manager, said no. She described the area as a peninsula, and
not an island.
Mayor Hammerstad advised the Council of a request she received from the World Wildlife
Federation to write a letter to President Bush regarding global warming and his opposition to the
Kyoto treaty. She indicated that, while she could write the letter on her own on City stationary,
she wanted to know how comfortable the Council was with her writing letters about things that
were not directly related to Lake Oswego. She commented that she did see this issue as related
to Lake Oswego.
Councilor Graham said that she did not have a problem with the Mayor writing a letter.
Councilor Rohde suggested holding a study session to discuss the broader ramifications of
global warming to Lake Oswego before sending out a statement on City letterhead stating the
City's views. Councilor McPeak concurred with Councilor Rohde. Mayor Hammerstad
indicated that she was not comfortable with the request, although she did think it was a
significant issue.
Councilor Rohde indicated to the Mayor that he wanted neither the study session nor the letter.
Councilor Graham supported the letter while Councilor McPeak did not.
Mayor Hammerstad noted the Mary's Woods Grand Opening on September 7 at 7:00 p.m.
Mayor Hammerstad indicated to Councilor McPeak that they would discuss the method of
selecting the Boards and Commissions at the mid-year retreat. She said that Joe Hertzberg would
facilitate. She mentioned agenda items of visioning, goal check and items discussed at the goal
setting retreat but not yet accomplished.
Mayor Hammerstad confirmed to Councilor Rohde that the Council still had a tour of Mary's
Woods scheduled for July 23. She mentioned the walking tour on Friday, July 13, with the
Historic Review Advisory Board. She indicated to Councilor Graham that they would have to
reschedule the Eagle Creek tour.
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Mr. Schmitz indicated to the Mayor that staff has taken care of the request from the American
Cancer Society for a speaker or luminary at its Relay for Life on July 28 and 29. He noted that
the Society moved the location from Lake Oswego to Tualatin.
Councilor Schoen asked to schedule a meeting with the Parks & Recreation Advisory Board to
discuss a serious review of the field fees. He mentioned the probability that the City would have
to increase its fees in order to cover maintenance costs.
Mayor Hammerstad mentioned the information recently received by the City regarding the
possibility of the City taking over the collection of fees for some of the sports clubs. She noted
that the amount of money that the sports clubs generated and carried over was into the hundreds
of thousands of dollars, yet they paid the City $7 per participant. She spoke to addressing the
obvious inequity and the accusations that the City was not providing service while increasing its
fees. She characterized this as a source of funds that should be going to maintain the fields. She
agreed that they should meet with the Board but indicated that they also needed a broader study
of the issue of fees and field maintenance.
5. OTHER BUSINESS
5.1 Beautification Projects
Bill Gerber, Chamber of Commerce, recalled his previous request to the Council for
equipment assistance in hanging the baskets for safety reasons. He noted the Council's concern
about the loss of citizen involvement. He said that the Committee has found a way to address
both the citizen involvement and safety concerns.
Mr. Gerber described the distribution of the hanging baskets as occurring in two categories:
those in areas with a high concentration of baskets (mostly near the business districts) and those
in the outlying areas with a sporadic distribution of baskets. He pointed out that the outlying
areas were the more dangerous areas, such as Kruse Way, Marylhurst, and Country Club Road
by the high school.
Mr. Gerber said that the Committee divided the City into sectors and appointed"Sector
Chairmen"to take responsibility for hanging the baskets in their individual sectors. He observed
that this would help them organize the crews with a mixture of experienced basket-hangers and
newcomers (which would increase the safety) who would hang baskets in their assigned sectors.
Mr. Gerber asked the Council for help in the outlying areas, which were the more dangerous
and the more difficult to arrange for but which also represented a small proportion of the total
distribution area for the baskets. He held that this proposal enhanced the volunteerism through
better organization while addressing the safety issues by using a lift truck in the more dangerous
areas. He emphasized that the volunteer groups would do the vast bulk of the basket hanging.
Councilor Graham asked how the City helping in the outlying areas addressed the Chamber's
insurance problem on the interior areas, as described in Chris Hoffman's letter. Mr. Gerber
stated that he had not seen the letter, which he then read. He indicated that he did not find that
the letter discussed his particular concerns of safety and continued volunteerism.
Councilor Rohde characterized Mr. Gerber's proposal as an excellent compromise. He
concurred that the outlying areas were the more difficult areas; eliminating those and allowing
the volunteers to hang the easier baskets maintained the community involvement while
protecting the volunteers from the dangerous intersections.
Councilor Turchi questioned the City's exposure if it stated that the danger in hanging the
baskets was real and universal but some were more dangerous than others, and it only took care
of the 'more dangerous' ones. He held that, if someone was then injured hanging a 'less
dangerous' basket, then the City exposed itself to greater liability issues and problems than if it
did nothing. He recounted an incident in which someone (after an injury at a crossing) sued
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Rivergrove Elementary for its inability to provide a crossing guard at that crossing after it had
tried to hire a crossing guard and failed.
Councilor Turchi argued that the City would have a harder time defending itself in an injury
lawsuit using an argument of gradation of danger in different locations than it would if it did
nothing. He asked the City Attorney if there was a better way legally to address this situation.
Mr. Powell pointed out that the Chamber, not the City, sponsored this volunteer project, which
distanced the City from the liability issues. He noted that Councilor Turchi's question looked at
the question of what was the appropriate level of causing people to be exposed. He discussed the
issue of`reasonable risk.' He indicated that if there was more than the `reasonable risk' of every
day activities involved in a City activity, then the City might have some liability issues, absent
signed waivers. He suggested asking the volunteers to sign waivers.
Councilor Rohde pointed out that the City put up the brackets. He argued that if someone were
going to sue over this type of thing, then he/she would name the City along with whomever
he/she could tie into the incident. He contended that this did not increase the City's risk more
than it already had.
Mr. Powell indicated to Councilor McPeak that, while waivers were not foolproof against a
lawsuit, they were a good idea. He reiterated that this was not a City project but indicated that, if
he were at the Chamber, he would recommend that the Chamber get the waivers; doing so
provided another layer of defense and put people on notice that this was an activity in which
injury could occur.
Mr. Powell indicated to Councilor Rohde that the City required signed waivers from
participants in the Parks & Recreation activities. He said that he did not know if they obtained
waivers for an ivy pull but reiterated that signed waivers were good to get for physical and/or
recreational activities.
Councilor McPeak pointed out that they were discussing two separate problems: Mr. Gerber's
volunteer concerns and the Chamber letter on liability issues. She observed that they did not
know why the Chamber has not addressed its liability concerns through waivers. Mr. Gerber
mentioned his concern with the letter, as he had been unaware of it, and that he did not know
what it was asking; it simply stated the problem. He indicated that he would get the letter
clarified.
Mayor Hammerstad noted the Council discussion heading towards consensus to allow the City
staff to help hang the baskets in the outlying areas. She observed that if Mr. Gerber could get
private partners with similar equipment to help, then they could do the basket hanging in one
day. She asked Mr. Gerber to keep the Council informed of the Chamber discussion on the
letter. She mentioned the Council's preference that the Chamber solve the issue internally.
Councilor McPeak asked if Mr. Gerber's proposal represented a greater expense to the City than
already budgeted for. Mr. Schmitz said yes, but pointed out that it would be less than the
original $1,600 that Mr. Gerber requested for hanging all 230 baskets, as the City would be
hanging fewer baskets. Mr. Gerber said that it would be less than 30 baskets. Mr. Schmitz
indicated to Councilor McPeak that staff did not budget specifically for this request; they would
do it instead of something else.
Councilor Schoen concurred that the expense was nominal. He spoke in support of the proposal
as a means of encouraging volunteerism.
Councilor Graham spoke in support of the City helping but asked for a report from Mr. Gerber
on the details of the Chamber program and how the Chamber intended to deal with its insurance
issues. Mayor Hammerstad observed that the program and the insurance were the Chamber's
business, and not the City's; the City was only offering assistance. Councilor Rohde concurred
with the Council staying out of the Chamber's business. Mr. Gerber assured the Council that
the Chamber would address the issue raised in the letter; he would report back to the Mayor.
City Council Morning Meeting Minutes Page 6 of 12
July 3, 2001
Mayor Hammerstad indicated that she would answer the Chamber letter by reporting the results
of today's decision.
Councilor Rohde moved to assist the Chamber Basket Committee with the hanging of
baskets as designated by the Committee(in the outlying sectors). Councilor Turchi
seconded the motion. A voice vote was taken and the motion passed with Mayor
Hammerstad, Councilors Rohde, Schoen,Turchi, Graham, and McPeak voting in favor.
16-0]
5.2 Topics for Meeting with Clackamas County
Mayor Hammerstad reviewed the attachments to the Council packet on the issues scheduled for
discussion with the County Commissioners.
• Lake Forest Neighborhood Plan, Annexation
Jane Heisler, Long Range Planning Manager, reviewed the four issues listed in her memo.
She suggested that the Council encourage the County Commission to point out which polices it
perceived as `prescriptive,' as opposed to `descriptive;' staff would then work with the
neighborhood to reword them.
Ms. Heisler recommended that the Council explore with the Commission any concerns it had
with the County adopting the tree cutting and home occupation policies, as the City staff has
heard only from the County staff to date. She mentioned that they could look at a phase-out
period for home occupations or continue them as non-conforming uses. Mayor Hammerstad
pointed out that a non-conforming use ran with the land, and not the business; she suggested
phasing them out when the property sold.
Mayor Hammerstad observed that the sign ordinance and annexations issues would inevitably
surface during a discussion on the Lake Forest plan. She discussed her concern with the
confusion that might result from intertwining too many issues at one time.
Mayor Hammerstad indicated to Councilor McPeak that the City was not asking the County
to take on an additional financial burden. Ms. Heisler concurred. She mentioned the confusion
that would arise with these people coming under the City ordinance without living in the City
Councilor Schoen pointed out that Lake Oswego was almost unique in being surrounded by
other cities; Lake Forest was not an agricultural area, such as the areas outside Oregon City or
Estacada. He argued that their situation required a separate rule from the County. Mayor
Hammerstad noted that Lake Oswego did have separate rules under the UGMA.
Mayor Hammerstad confirmed to Councilor McPeak that the financial situation at the County
meant that the Board was predisposed to giving this burden to the City. Councilor Schoen
spoke to getting clarification from the County Commission itself rather than from the Executive
Officer. Mayor Hammerstad commented that it would be helpful to put these provisions in the
UGMA.
Mayor Hammerstad mentioned that the Council wanted the Commission's support for
annexation. She suggested including in the neighborhood plan an additional statement about the
process and timeline for annexation. She explained to Councilor McPeak that the County
support lay in the County telling the area residents that it no longer would provide urban
services, code enforcement or storm water management, etc., and recommending annexation to
the City.
Ms. Heisler referenced the recent situations on Goodall Road and Country Club Road where the
sites on the City's sensitive lands inventory were stripped of all vegetation; on one parcel, the
stream corridor was redirected at a 90-degree angle. She noted that the City did not allow those
activities under its code; the County had some regulation but no enforcement capability.
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Ms. Heisler observed that, as a result of these kinds of activities, the City brought in sites that
caused erosion because of the stream corridor and the lack of vegetation. She indicated that the
City could require some mitigation when the owners requested a partition but they would spend a
lot of time reconstructing the topography and figuring out how to the return the site to its original
state. She said, in the end, the City ended up with a site with diminished functions and values for
habitat and water quality. She commented that she expected to see more of this behavior with
the sewer now installed in Goodall Road up past Hazel.
Ms. Heisler indicated to Mayor Hammerstad that the probable solution was the City doing
something similar to Lake Forest where the City either annexed the area or made changes in the
UGMA, which allowed the City to enforce its regulations. She confirmed that both of those
issues were scheduled for discussion under the "UGMA changes"heading, as well as the signs.
Councilor Graham referenced Ms. Heisler's comment in her memo that the Oregon Division of
State Lands (DSL) cited the property owner. She asked how vigorously did DSL pursue
violations like this. Ms. Heisler said that she was not certain. She explained that the State cited
the property owner because a neighbor brought it to their attention and the owner did not have an
appropriate permit. She indicated that DSL would not have permitted that activity either.
Mayor Hammerstad concurred that DSL would pursue the violation but pointed out that DSL
did not have enough field inspectors to deal adequately with these types of local situations.
Councilor Graham commented that the inability of the County and the State to pursue these
violations added weight to the annexation argument.
Councilor Graham referenced Ms. Heisler's statement in her memo that `condition annexation
upon restoration' was not an ideal option. She asked if the City would educate the property
owners with respect to how the land should be but not enforce it. Ms. Heisler indicated that
there were different gradations of voluntary and regulatory. She commented that education was
nice but it might not achieve the objective.
• Rivergrove Sewer Local Improvement District (LID) or Zone of Benefit
Mayor Hammerstad referenced the information in Mr. Schmitz's memo that 21 of the
properties were in the County, 23 were in the City of Rivergrove and the two big parcels were in
the City of Lake Oswego. She wondered whether the County might support a zone of benefit.
Councilor McPeak asked for a summary of the legal difference between an LID and a zone of
benefit. Mayor Hammerstad explained that all the property owners shared in an LID (it was a
lien against the property) whereas someone paid up front in a zone of benefit and the property
owners paid back their portions upon connection. She observed that normally those who up
fronted the money in a zone of benefit were the underlying jurisdiction or the first property
owners needing the improvement. She noted that the zone of benefit might or might not be paid
back.
Mr. Powell confirmed to Councilor Graham that the City would extend the 10-year time limit
on a zone of benefit.
Councilor Schoen spoke to convincing the County to support an LID because the City had
enough challenges with sewer construction. He expressed concern over what other projects the
City put aside in order to finance the sewer under a zone of benefit.
Mayor Hammerstad asked the City Manager why this sewer was the City's obligation. Mr.
Schmitz mentioned the agreement with the City of Rivergrove in which Lake Oswego agreed to
provide sewer service, the location of the other properties within Lake Oswego's urban services
boundary, and the School District's request for assistance in providing sewer to the school.
Mayor Hammerstad confirmed to Councilor McPeak that the City was responsible for the 23
Rivergrove properties in addition to the school and the park. She suggested the goal for this item
as identifying a financing mechanism that worked. She observed that the City's first choice was
an LID.
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Councilor Rohde asked what provision the City had to override remonstrances against an LID.
Mr. Powell explained that a two-thirds majority could remonstrate and delay the project for six
months but the City could proceed with the project after that period over the remonstrances.
Councilor Rohde recalled the Lakeview LID process in which the City had a majority of signed
non-remonstrance agreements. He observed that, in this situation, the property owners had an
opportunity to engage in the remonstrance process for six months to a year. Mayor
Hammerstad concurred that this was not an ideal situation.
Mr. Schmitz indicated to Councilor McPeak that DEQ gave the District a year to get a project
going that would fix the school's septic problem.
Councilor McPeak described the situation as the City having no choice but to install the sewer
for health reasons and no power to get the financing without up fronting the funds itself, if it
could not persuade the 21 County residents to participate in an LID. She characterized the zone
of benefit as the least desirable solution from the City's point of view and the LID as politically
volatile but with no financial risk to the City. Mayor Hammerstad pointed out that at least the
City could do the project under a zone of benefit; the problem was that the City might not get
paid back in the long run.
Mr. Powell indicated to Councilor Rohde that, while in theory the City could authorize a zone
of benefit in perpetuity, it probably could not bond off it, as it was not a fixed revenue source.
Mr. Jordan concurred. He pointed out that a bond required annual payments but the City did
not know that it would take in sufficient revenue from the zone of benefit annually to make those
payments.
Mr. Powell indicated to Councilor Schoen that the ordinance did allow the City to treat an LID
like a Bancroft bond with payment over five years instead of within one year. Councilor
Schoen commented that that might be a more palatable option.
Councilor McPeak commented that, although she knew there was significant opposition to an
LID, she felt that the health reasons behind the LID formation was sufficiently strong as to make
it the right thing to do.
Councilor Turchi noted that many people in this area recently spent a substantial amount of
money upgrading their septic systems and did not want to hook up immediately. He asked if
DEQ had jurisdiction over the upgrade of septic systems, and could require property owners with
failed septic systems to hook up to sewer if it was within a certain distance from their property.
Mr. Powell said that the DEQ regulations would not permit a new septic system if sewer were
available within 300 feet.
Councilor Turchi suggested creating a zone of benefit for 25 years (which was longer than the
life expectancy of a new septic system)because that increased the City's chances of payback
when the septic systems failed. He pointed out that a certain percentage of the properties would
hook up immediately because the property owners wanted sewer; the City would not end up with
44 unconnected properties.
Councilor McPeak asked for dollar figures on the City's liability in waiting for reimbursement
by individuals. Mr. Schmitz indicated that the City and School District were discussing how to
split up the $650,000 cost of the non-subdivision part. Councilor McPeak commented that the
City might be risking a maximum of$250,000.
Councilor Schoen asked what projects did the City give up in order to finance a zone of benefit.
He spoke to the Council having the courage to go forward with the LID. He held that the people
would be opposed to anything. He indicated that he did not have the confidence in a zone of
benefit to depend on it for the future reimbursement.
Councilor Rohde concurred with Councilor Turchi's comments regarding the City's chances of
quick reimbursement. He held that the septic systems in that area were failing at a rapid rate. He
described Rivergrove as the first in a system wide septic failure, resulting in the requirement that
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July 3, 2001
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the entire area annex to Lake Oswego. He argued that the City was not at risk financially with a
zone of benefit but as a government, it had the capacity to do a zone of benefit and wait the time
it took for reimbursement. He indicated that he did not support forcing an LID on people who
were not ready to hook up to sewer, as that would only stir up unnecessary trouble.
Mayor Hammerstad concurred with Councilor Rohde. She pointed out that the worst thing that
the City could do, with its long-range objective of annexation, was to force an LID opposed by
the property owners; it only exacerbated the problem and set the City up for failure. She argued
that by doing a zone of benefit, the City demonstrated its willingness to work with the neighbors.
Councilor Graham asked how much more could the land take with the septics pouring into it,
speculating that it could be 10 years or less. She spoke to obtaining the factual scientific data
that described the reality of the situation in this area.
Councilor Turchi observed that a 10 year reimbursement period provided an incentive to
property owners to try and wait it out; a 25 year period was long enough that it increased the
chances that people would hook up to sewer sooner.
Mayor Hammerstad noted that the conversation with the County Commission would focus on
its opposition to the LID. She spoke to exploring other options, should the County maintain its
opposition, such as the County contributing funds to the upfront financing of the zone of benefit.
Councilor Schoen asked about support from Rivergrove. Mayor Hammerstad noted that
Rivergrove did not have the wherewithal to contribute. She suggested discussing Rivergrove at
another time.
Mayor Hammerstad suggested removing the Stafford item, as it was less urgent and they
probably would not have sufficient time to discuss it anyway. She noted that the County
financing issue was likely to be a subject at the Timothy Lake retreat, and suggested not
addressing it at this meeting.
Mayor Hammerstad clarified to Councilor Rohde that if the Commission raised the issue of
Stafford, then they would discuss it. She summarized the City's message as it would like the
Commission to support the Stafford area staying outside the urban growth boundary until the
offsite infrastructure problems were solved. She suggested discussing the bridge and the I-205
improvements. She mentioned telling them of the Council's expectation that, if Stafford did
come into the urban growth boundary, it would not develop within the County.
Councilor Rohde mentioned the City receiving communication on the Stafford-Borland Road
intersection, which the County refused to deal with. He suggested stationing traffic cops in the
morning and evening at the intersection in order to control the traffic, a solution that worked well
all over the East Coast.
Councilor McPeak requested a brief Council discussion about the financing issue before
presentation of the Council's point of view at the Timothy Lake retreat. She mentioned her
concern about the County street utility fee. Mayor Hammerstad pointed out that the County fee
only covered the unincorporated areas.
Mayor Hammerstad discussed her concern with the County Commissioners not upholding an
earlier Commission's agreement to honor the vote to extend the library funding from the
permanent rate in the same proportion that the vote had authorized it; this Commission has
agreed to extend it only for the remainder of the unexpired term of the former serial levy(Bob
Kincaid's memo).
5.3 Boards and Commission Wish Lists
Councilor Graham referenced a memo about the Library Advisory Board's wish list, which
Maria Meneghin brought up, for things such as a bike rack or a book cart to transport books from
the book return drop. She spoke to these items as falling within the purview of the Friends of the
City Council Morning Meeting Minutes Page 10 of 12
July 3, 2001 5 6
Library. She mentioned Mr. Schmitz's suggestion that the Council discuss the issue of Board
and Commission wish lists.
Councilor McPeak noted that the Arts Commission had a separate arm for fundraising. Mr.
Schmitz commented that the Library Advisory Board did also. He clarified that the policy
question was whether or not the Boards and Commissions, separate from their fundraising
organizations, could solicit contributions from the community for 'wish list' items.
Mr. Schmitz indicated to Councilor Rohde that this was not a situation where the Council
would ask the Boards and Commissions to use a different name when fundraising because policy
required that Boards and Commissions be separate from their fundraising arms. He explained
that his concern was that allowing the Boards to ask the community for money for things on
'wish lists' might result in inundating the community with these requests. He described it as the
Boards asking the community for money for these things they wanted but could not get because
the Council did not give them money in the budget for those items.
Councilor McPeak spoke against turning Boards and Commissions into fundraising arms.
Councilor Graham concurred. She held that it was not the Board's job to raise the money; the
Board should ask the Friends for help in purchasing items like a bike rack. Councilor Rohde
concurred. He suggested discussing the situation with the Board chairs. Mayor Hammerstad
observed that this issue needed more in-depth discussion than the Council had time for this
morning.
Mayor Hammerstad noted the schedule change for the July 10 meeting; since the consultant on
sustainable development would be here in the morning, they moved the entire meeting to 7:30
a.m. and cancelled the evening meeting.
6. EXECUTIVE SESSION
Mayor Hammerstad recessed the meeting at 9:20 a.m. to Executive Session pursuant to ORS
192.660 (1) (h) to consult with counsel with regard to current litigation or litigation likely to be
filed, (e) to conduct deliberations with persons designated to negotiate real property transactions.
Mr. Powell reviewed the Executive Session parameters.
7. RETURN TO OPEN SESSION
Mayor Hammerstad reconvened the morning meeting at 9:50 a.m.
Councilor Rohde moved to continue the Executive Session to 5:30 p.m. Councilor Schoen
seconded the motion. A voice vote was taken and the motion passed with Mayor
Hammerstad, Councilors Rohde, Schoen, Turchi, Graham, and McPeak voting in favor.
[6-0]
Mayor Hammerstad recessed the meeting at 9:50 a.m.
8. CONTINUATION OF THE SPECIAL MEETING
Mayor Hammerstad reconvened the special meeting at 5:30 p.m.
Present: Mayor Hammerstad, Councilors Rohde, Schoen, Turchi, Graham, and McPeak.
Councilor Hoffman was excused.
Staff Present: Doug Schmitz, City Manager; David Powell, City Attorney; Robyn Christie, City
Recorder;
9. EXECUTIVE SESSION
Mayor Hammerstad recessed the meeting at 5:30 p.m. to Executive Session pursuant to ORS
192.660 (1) (h) to consult with counsel with regard to current litigation or litigation likely to be
City Council Morning Meeting Minutes Page 11 of 12
July 3, 2001
5 7
filed, (e) to conduct deliberations with persons designated to negotiate real property transactions.
Mr. Powell reviewed the Executive Session parameters.
10. RETURN TO OPEN SESSION
Mayor Hammerstad reconvened the special meeting at 6:10 p.m.
S. ADJOURNMENT
Mayor Hammerstad adjourned the special meeting at 6:10 p.m.
Respectfully submitted,
a44z;,i
Robyn istie
City Recorder
APPROVED BY THE CITY COUNCIL:
ON
Judie Hammerstad, Mayor
City Council Morning Meeting Minutes Page 12 of 12
July 3, 2001 5 8