OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Bend City Council Work Session and Study Session on Development Infrastructure and Utility Rates – June 24, 2026

City CouncilWednesday, June 24, 2026
BodyBend, Oregon
SessionCity Council
DateWednesday, June 24, 2026
StatusFILED
Video Record
0:00 / 2:04:21

Transcript — Verbatim
0:00

Ready to get started with our city council work session.

0:05

I think everyone is here except Councilor Francis is excused today.

0:09

So we'll just go ahead and dive right into our presentation.

0:12

Okay.

0:12

Good evening, Mayor.

0:14

I'm Sarah Hudson, Senior Policy Analyst and City Manager's Office, acting in capacity for Ress Grayson, Chief Operations Officer, and please back on Monday.

0:24

And I'm joined by my colleagues in the community development department.

0:27

So we have Ben Barry, private development city engineer, policy community development department director, and Renee Brook planning manager.

0:35

So I'm here to talk to you about development infrastructure requirements.

0:39

So we we shared very lengthy memo.

0:43

So we will kind of do a light touch at the front end of this presentation with the idea that we'll leave a lot of time for questions and answers and discussion.

0:52

But we do want to provide some grounding and context just to make sure we're all on the same page.

0:56

So in terms of the purpose of this discussion, we really want to dive into how infrastructure requirements affect in fill housing development specifically.

1:07

And we'll talk a little bit more about what that is, and then I'll went into in-depth as well.

1:12

There's just some unique policy considerations because in field is offered very differently than green field development.

1:19

We do want to provide context on recent changes, including at the state level that really influence the conversation that's happening on the ground, including highlighting some key challenges and trade-offs that we're encountering on a daily basis, so where council guidance will be really really helpful.

1:36

And we do have approaches that are currently underway that we're doing this year, some kind of administrative actions.

1:42

So we'll kind of outline that in more detail today, so council gets a sense of the things that we're already moving forward to address some of these challenges.

1:51

But then there's some more, you know, media policy and funding considerations, some concepts that we put forward where we'd really like to get council guidance on, you know, do we want to advance these things and what priority, just so we know how to develop board plans accordingly.

2:08

So what we're really looking for tonight is some of that guidance on some of the trade-offs that we're encountering and direction on kind of those uh longer term policy approaches.

2:21

So here are some key value questions really at the heart of this discussion, and the memo had a lot more at length, but a lot of them really kind of boil down to what's on this slide, and a little later we'll have some more specific questions that drill down a little bit deeper that are a little bit easier to provide guidance on.

2:42

But just for council to be chewing on as we kind of go through the presentation.

2:47

So some things that we're really thinking about at the heart of this discussion should infrastructure requirements be tied to project type or project impact.

2:56

So for example, um three units all on their own separate lots through a middle housing land division or a triplex.

3:05

You're talking about three units, but they have different kind of requirements associated with them.

3:10

But is the impact mostly the same?

3:12

You know, what are the considerations there?

3:14

Um, in general, should every new dwelling be required to contribute to the multimodal network?

3:19

That's more or less how we operate today.

3:22

So that's kind of like a broader question about how we think about this.

3:25

Um, when is existing infrastructure and right way considered sufficient even if it does not meet current standards?

3:32

Um, and kind of just balancing the need for getting housing on the ground right now, but also protecting the opportunity for future development later.

3:42

So that's a kind of a key trade-off that we think about.

3:46

And um, when should infrastructure costs be shared more broadly.

3:49

So we'll have we'll get to kind of dive into that more in a little bit, but kind of that roles and responsibilities, what's the responsibility of private development versus the city?

3:59

So just quickly the agenda that we'll go through today.

4:02

Again, we're gonna try to, you know, we endeavor to move through this pretty quickly just because of the the read-ahead materials, but we will kind of talk about infill development, how infrastructure requirements work today, some of that context.

4:13

Um we won't dive into the case study highlights, but we do have a few options here in case it would be helpful to ground some of the discussion to kind of look at a particular example, and then we'll get into that discussion in just a bit.

4:26

Sure, whose idea was the picture?

4:28

Who's in the picture?

4:29

It's a good one.

4:37

Um in terms of why we're having this conversation now.

4:41

So uh, first and foremost, alignment with council goals.

4:44

So really, we've done a lot of work.

4:47

There's been a lot of success in terms of infill housing, housing in general.

4:51

We've really tackled a lot of that lower hanging fruit.

4:54

Now, a lot of the things that we're dealing with are kind of more structural in nature.

5:00

So really kind of taking that one that next step of looking at how do we continue to move forward council goals?

5:07

Changes in state policy and development patterns.

5:09

So with changes from the state, we're just seeing that more density is allowed in existing neighborhoods that previously only considered lower density development.

5:20

So a lot of times that infrastructure is not adequate to support that density.

5:24

So there's just, you know, again, that that tension exists there.

5:29

Sometimes we're just seeing limited outcomes.

5:32

So I think it's helpful not to think of it as an either or do we want the housing or the infrastructure?

5:36

We want all of the above.

5:38

But in some cases, we're not getting either because requirements just serve to be an obstacle to move that forward.

5:46

And again, kind of clarifying those roles and responsibilities, that ongoing question of what should be funded by development versus the city and maybe some previous to be thinking about.

5:58

So here are the council goals that are really kind of at the heart of what we're talking about.

6:02

We want to accelerate complete neighborhoods, remove barriers to infill and build housing.

6:06

At the same time, we want to enhance safety accessibility and travel options and align our systems with a growing city.

Discussion Breakdown — Share of Meeting
Engineering And Infrastructure█████████████████████████████████████████████54%
Water And Wastewater Management██████████████████████26%
Fiscal Sustainability██████████12%
Affordable Housing███4%
Housing Development██2%
Procedural1%
Environmental Protection1%
Summary of Proceedings

Bend City Council Work Session and Study Session on Development Infrastructure and Utility Rates – June 24, 2026

The Bend City Council convened on June 24, 2026, for a work session on development infrastructure requirements for infill housing, followed by a study session on utility capital improvement plans and rate structure. Councilor Francis was excused. Staff presented detailed analyses of how current infrastructure requirements, designed for greenfield development, create barriers for small-scale infill projects, and later briefed the council on upcoming water, stormwater, and sewer projects and the financial pressures on utility rates.

Discussion Items

Development Infrastructure Requirements for Infill Housing

  • Sarah Hudson, Senior Policy Analyst, led a presentation on how infrastructure requirements affect infill development. She noted that existing codes were written for greenfield development and that infill projects face disproportionate costs due to aging infrastructure and the need to extend utilities through the "two and through" concept.
  • Ben Barry, city engineer, highlighted that infrastructure costs vary dramatically by location, citing examples like rock hardness in different parts of Bend that can increase excavation costs. He presented case studies (e.g., 8th and Quimby, 5th and Franklin) where the same number of units could trigger very different requirements depending on adjacent infrastructure.
  • Renee Brook, planning manager, explained the current regulatory framework: middle housing (duplex, triplex, quadplex) is permitted through building permits with fewer requirements, while land divisions trigger more extensive improvements. The line between types is blurring due to state law changes.
  • Staff outlined five categories of infrastructure challenges: right-of-way dedication, sidewalks, frontage improvements (two and through), utility extensions, and site constraints. They proposed administrative actions (e.g., expanding the "do not widen" list), policy changes (e.g., tying requirements to intensity rather than application type), and funding approaches (e.g., fee-in-lieu programs, city funds).
  • Council guidance was sought on several questions: Should every new dwelling contribute to the multimodal network? Should right-of-way be dedicated now or just reserved? Should sidewalks be modernized through infill? Should two-and-through extensions be required when adjacent infill potential is limited?
  • Council members expressed support for creating a voluntary discretionary path for small-scale infill projects, focusing on intensity of use rather than application type, expanding fee-in-lieu programs beyond sidewalks, and expanding the do-not-widen list. They also emphasized the need to balance near-term housing with long-term system needs.

Utility Capital Improvement Plans and Rate Structure

  • Ryan Oster, Engineering Director, introduced the utility portion as an information session. Brittany Barker presented updates on water and stormwater projects: the Outback facility improvements (NEPA completed, moving to town site act), Franklin water line improvements underway, and stormwater challenges on South Aubrey Butte where core samples showed solid rock to 100 feet, requiring alternative solutions.
  • Jason Sir presented on water reclamation: the collection system master plan and facility plan for the Water Reclamation Facility (WRF) are in progress, with adoption expected in fall 2026. Key projects include Digester 4 (estimated $115-120 million), secondary clarifier, and the East Interceptor in 10-20 years.
  • Dan (staff) explained the rate-setting process: revenue requirement, cost of service study, and rate design. He noted that current rates (adopted increases of 2-3% in recent years) are insufficient to fund the upcoming capital needs, especially for sewer. The council was asked to confirm that the values of affordability, conservation, proportionality, etc., remain appropriate for future rate discussions.
  • Gillian Achner, Water Policy Analyst, detailed the existing rate structure: a base charge and a volume charge, with a larger proportion now recovered through volume charges after a 2014 reform. She noted that the council's 2025-27 goals prioritize conservation-based rate structures, and staff are exploring inclining block rates.
  • Councilor Norris emphasized the importance of conservation in light of potential climate impacts on water supply. Councilor Riley asked about growth assumptions, noting that the city's growth plan is outdated; staff uses PSU projections and historical data.

Key Outcomes

  • Development Infrastructure: Council directed staff to:
    • Explore a voluntary discretionary path for qualifying small-scale infill projects, with clear definitions to ensure pro-housing intent.
    • Prioritize shifting infrastructure triggers from application type (subdivision vs. middle housing) to project intensity (number of units).
    • Expand the do-not-widen list for streets where widening is impractical, and incorporate this into the upcoming Transportation System Plan process.
    • Develop fee-in-lieu programs for other infrastructure types (e.g., water mains, cycle tracks) beyond the existing Wood River Village sidewalk program.
    • Consider allowing exceptions to two-and-through requirements where adjacent infill potential is very limited (e.g., at dead ends).
  • Utility Rates: No formal decisions were made, but council:
    • Acknowledged the need for a more robust rate discussion in fall/winter 2026 as master plans are finalized.
    • Reaffirmed the values of affordability, conservation, proportionality, and stability as guiding principles for rate design.
    • Expressed interest in further analysis of conservation-oriented rate structures, including inclining block rates, and continuation of the low-income assistance program evaluation with the Human Rights and Equity Commission.
  • Next Steps: Staff will bring code amendments (e.g., middle housing land division package) in July 2026, continue internal discussions on stormwater disposal options, and prepare for the formal biennial budget process starting December 2026.

Meeting Transcript

Ready to get started with our city council work session. I think everyone is here except Councilor Francis is excused today. So we'll just go ahead and dive right into our presentation. Okay. Good evening, Mayor. I'm Sarah Hudson, Senior Policy Analyst and City Manager's Office, acting in capacity for Ress Grayson, Chief Operations Officer, and please back on Monday. And I'm joined by my colleagues in the community development department. So we have Ben Barry, private development city engineer, policy community development department director, and Renee Brook planning manager. So I'm here to talk to you about development infrastructure requirements. So we we shared very lengthy memo. So we will kind of do a light touch at the front end of this presentation with the idea that we'll leave a lot of time for questions and answers and discussion. But we do want to provide some grounding and context just to make sure we're all on the same page. So in terms of the purpose of this discussion, we really want to dive into how infrastructure requirements affect in fill housing development specifically. And we'll talk a little bit more about what that is, and then I'll went into in-depth as well. There's just some unique policy considerations because in field is offered very differently than green field development. We do want to provide context on recent changes, including at the state level that really influence the conversation that's happening on the ground, including highlighting some key challenges and trade-offs that we're encountering on a daily basis, so where council guidance will be really really helpful. And we do have approaches that are currently underway that we're doing this year, some kind of administrative actions. So we'll kind of outline that in more detail today, so council gets a sense of the things that we're already moving forward to address some of these challenges. But then there's some more, you know, media policy and funding considerations, some concepts that we put forward where we'd really like to get council guidance on, you know, do we want to advance these things and what priority, just so we know how to develop board plans accordingly. So what we're really looking for tonight is some of that guidance on some of the trade-offs that we're encountering and direction on kind of those uh longer term policy approaches. So here are some key value questions really at the heart of this discussion, and the memo had a lot more at length, but a lot of them really kind of boil down to what's on this slide, and a little later we'll have some more specific questions that drill down a little bit deeper that are a little bit easier to provide guidance on. But just for council to be chewing on as we kind of go through the presentation. So some things that we're really thinking about at the heart of this discussion should infrastructure requirements be tied to project type or project impact. So for example, um three units all on their own separate lots through a middle housing land division or a triplex. You're talking about three units, but they have different kind of requirements associated with them. But is the impact mostly the same? You know, what are the considerations there? Um, in general, should every new dwelling be required to contribute to the multimodal network? That's more or less how we operate today. So that's kind of like a broader question about how we think about this. Um, when is existing infrastructure and right way considered sufficient even if it does not meet current standards? Um, and kind of just balancing the need for getting housing on the ground right now, but also protecting the opportunity for future development later. So that's a kind of a key trade-off that we think about. And um, when should infrastructure costs be shared more broadly. So we'll have we'll get to kind of dive into that more in a little bit, but kind of that roles and responsibilities, what's the responsibility of private development versus the city? So just quickly the agenda that we'll go through today. Again, we're gonna try to, you know, we endeavor to move through this pretty quickly just because of the the read-ahead materials, but we will kind of talk about infill development, how infrastructure requirements work today, some of that context. Um we won't dive into the case study highlights, but we do have a few options here in case it would be helpful to ground some of the discussion to kind of look at a particular example, and then we'll get into that discussion in just a bit. Sure, whose idea was the picture? Who's in the picture? It's a good one. Um in terms of why we're having this conversation now. So uh, first and foremost, alignment with council goals. So really, we've done a lot of work. There's been a lot of success in terms of infill housing, housing in general. We've really tackled a lot of that lower hanging fruit. Now, a lot of the things that we're dealing with are kind of more structural in nature. So really kind of taking that one that next step of looking at how do we continue to move forward council goals? Changes in state policy and development patterns. So with changes from the state, we're just seeing that more density is allowed in existing neighborhoods that previously only considered lower density development.

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