Milwaukie council directs staff to press NCPRD on Milwaukie Bay Park IGAs, requests reply by Dec. 2

Milwaukie city staff on Tuesday walked the council and public through draft amendments to the 2008 cooperative intergovernmental agreement (IGA) with the North Clackamas Parks & Recreation District and the principal terms of a proposed Milwaukie Bay Park IGA, then the council voted to direct staff to respond to the district and request a reply by the council's Dec. 2 meeting.

City staff member Emma told the special session the city's single objective in negotiations is to "get Milwaukie Bay Park back on track and delivered substantially by 2027." She summarized two draft agreements on the table: an amendment to the 2008 cooperative IGA that would clarify which party capitalizes park assets and the rights and responsibilities for maintenance and programming, and a separate Milwaukie Bay Park IGA that sets project funding and management terms.

The proposed IGA language on capitalization would assign capitalization to the party that funds a capital improvement and, in the event of a future withdrawal from the district, would require the city to pay the district the depreciated value of district-capitalized assets in city parks. On approval authority for city-led construction, staff said the district is seeking sign-off on construction drawings; the city's stated position is to retain final approval while coordinating with district staff.

On programming and fees, staff described a draft provision to document that NCPRD is the programmer for Milwaukie parks while adding a preference and fee-waiver provision for city and city-affiliated groups that historically used the parks. Regarding the Milwaukie Community Center, staff said the draft assigns capital improvements and replacements to the city while leaving programming and general maintenance to NCPRD; the city wants clearer definitions distinguishing capital work from routine maintenance.

On funding, staff reported NCPRD's latest offer would route roughly $3.1 million in Zone 1 system development charges (SDCs) to the project; the city cited an existing Zone 1 SDC fund balance of about $3.6 million and proposed retaining Zone 1 SDCs generated up to the start of construction (or Dec. 31) as part of a counteroffer to secure funds for the project. Emma also said the district offered to loan $2.5 million of Metro local share grant dollars to the city, repayable in 10 annual payments of $250,000, and that staff has asked Metro for clarification about whether that use is allowed. The district also proposed reassigning about $658,000 in Metro grant dollars previously allocated for a trolley-trail to Milwaukie Bay Park; staff indicated the council would accept that reassignment.

Staff told the council that under the district's draft terms the city would assume project management (design and construction contracts and drawings, currently about 50% design) upon signing and would take over maintenance responsibilities when construction begins or by July 1, 2027, whichever is sooner. The council's position, staff said, is to accept project management transfer but ask that maintenance responsibility transfer occur when construction begins or no later than Dec. 31, 2027.

During public testimony, Island Station resident Dave Cadwallader asked for a clear, documented accounting of how Zone 1 SDCs have been generated and spent over time to address local concerns that Milwaukie has been subsidized by other parts of the district. "I'm hoping that, through this process of documenting the balances on the SDCs, we can go a step further towards removing some of this ambiguity," Cadwallader said. Gary Klein, a longtime resident and former park task-force participant, testified in full support of moving Phase 3 forward and offered to help.

After the presentation and public testimony, a council member moved that staff respond to the NCPRD board with the items described by staff that evening and ask for a response by the council's Dec. 2 meeting. The motion was seconded and passed by unanimous voice vote; the transcript records a voice vote and the chair noting the motion "passes unanimously," without a roll-call tally.

What happens next: staff will finalize the city's written response to NCPRD, seek Metro's guidance on the proposed use or loan of Metro local share funds, and return any district reply to the council—ideally by the council's Dec. 2 meeting so agreements can be finalized before year-end.

The council closed the meeting with thanks to staff (Emma, Justin and Joseph) for months of work on the negotiations and adjourned.