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Agenda Item - 2021-10-05 - Number 8.3 - Approval of Meeting Minutes 8.3 O. COUNCIL REPORT C o OREGO• Subject: Approval of City Council Meeting Minutes Meeting Date: October 5, 2021 Staff Member: Kari Linder, City Recorder Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Approve minutes as written Recommended Language for Motion: Move to approve minutes as written. Project/ Issue Relates To: ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable ATTACHMENTS 1. August 3, 2021, Draft Regular Meeting Minutes 2. September 9, 2021 Draft Regular Meeting Minutes 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeosweao.city ATTACHMENT 1 CITY COUNCIL REGULAR MEETING MINUTES L August 3, 2021 aREGO� 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 2:06 p.m. on August 3, 2021, in the City Council Chambers, 380 A Avenue, with some attendees participating virtually, as noted below. 2. ROLL CALL Present: Mayor Buck and Councilors Manz, Nguyen, Wendland, Verdick, and Rapf Excused: Councilor Mboup Staff Present: Martha Bennett, City Manager; Jason Loos, City Attorney; Kari Linder, City Recorder; Ivan Anderhoim, Parks and Recreation Director; Evan Fransted, Senior Planner; Erik Olson, Senior Planner; Evan Boone, Deputy City Attorney; William Sullivan, Kincaid Intern Others Present: Megan Weyer, Jake Weigler (via phone), and Taylor Jacobs, Praxis Political 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PUBLIC COMMENT • Doug McKean and Sarah Ellison Ms. Ellison introduced herself and Mr. McKean as co-chairs of the Parks, Recreation and Natural Resources Advisory Board (PARKS Board). After two discussions and public comment sessions on Resolution 21-29 regarding the natural areas preservation charter referendum, the PARKS Board is recommending its adoption by City Council. They appreciate the City's related work with community members who have expertise and commitment to preservation of natural areas in Lake Oswego. They also recognize it as a comprehensive update that modernizes Chapter 10 of the City Charter. Mr. McKean described his longtime involvement as a leader and volunteer in restoration of the community's natural parks areas. He highlighted important benefits of the referendum, which (1) includes a comprehensive list of the natural areas that would be protected under Chapter 10 of the Charter; (2) provides a means of using vehicles and mechanical City Council Regular Meeting Minutes Page 1 of 19 August 3, 2021 equipment in these areas for maintenance, preservation, and restoration needs, including mitigation of fire hazards; (3) allows for parking, both to serve the community and to prevent unintended disruptions to traffic and neighborhoods; (4) offers the City flexibility, working with citizens advisory boards and stakeholders in the community as a whole, to revise and add master plans without requiring a vote to amend the Charter; and (5) permits construction of trails that provide equal access to natural areas for individuals with disabilities. In order to ensure that Charter changes related to parks and natural areas would be done purposefully and with consideration of future impacts and unintended consequences, he called on the Council to adopt Resolution 21-29. • Al Calabria Mr. Calabria noted that he was speaking as chair of the Palisades Neighborhood Association (NA) in order to ensure that their voice is heard on the direction for Rassekh Park. He drew Council's attention to the Association Statement provided to them separately. Highlighting his remarks (Public Comment—Al Calabria), he advised that the neighborhood is not opposed to all development within Palisades; there is general support for athletic facilities in the neighborhood, and he understands that the three largest developments in the city, outside of schools and the wastewater treatment plant, are located in Palisades. The Association Statement offers an alternative to the three options presented by the park designers, which the NA find inconsistent with several important considerations: (1) The "Option 4" park design proposed by the Hazelia Agri-Cultural Heritage Trail working group, which is supported by the Palisades and McVey-South Shore NAs and the Stafford Hamlet; (2) the Luscher Area Master Plan; and (3) the City survey indicating strong preference for natural spaces, habitat protection, and family-centered activities. Having sent the Association Statement on July 7, he expressed their concern about the lack of responsiveness, including a delay of over three weeks on the part of the park designer. He emphasized the neighborhood's perception that their voice is not being heard. Finally, he touched on two "cart-before-the-house" points of concern. Funding for improvements at the Rosemont roundabout was unclear, although traffic impacts were certain to be significant; this should be resolved before proceeding with the park development.Additionally, the park property is not within the urban services boundary, and this also should be resolved in advance. Council was urged to reconsider the three design options to date and to consider"Option 4" or a variant. In response to questions from Councilor Manz, Mr. Calabria affirmed that a meeting of staff scheduled for August 17 would offer an opportunity for the neighborhood to add input on this project. Mayor Buck asked if the Palisades NA had representation on the Rassekh Park project advisory committee; Mr. Calabria confirmed that there were two NA representatives, which Mayor Buck commended as a good way to have the neighborhood perspective heard. • Nancy Gronowski Ms. Gronowski described her background as a landscape architect with 40 years of experience developing master and management plans with various parks systems. In addition, she had served on many Lake Oswego citizen advisory boards and with volunteer groups such as the Friends of Springbrook Park. She spoke in support of the natural areas preservation charter referendum, clarifying the need for a competing referendum to the initiative petition. Among important reasons are: (1) The referendum would protect more natural areas. (2) Residents need to be able to park where appropriate, e.g., as at Bryant Woods Nature Park. (3) Paved trails, where appropriate, enable access for everyone to natural areas; pavement can provide the best solution with the least impact. (4) Vehicular access, as provided at Springbrook Park, allows City Council Regular Meeting Minutes Page 2 of 19 August 3, 2021 maintenance staff to prepare trails, bring in supplies, build fire breaks as needed, and enable response to yet-unknown effects of climate change. (5) Residents can participate in the planning process for changes to the natural areas without need for a vote to amend the City Charter; consistent with the existing robust and open planning process, it is important that Charter changes are done as infrequently and intentionally as possible. Beyond simply prohibiting development in certain areas,the referendum promotes wise use, protection, and stewardship of the City's natural areas and promotes collaboration in determining their wisest and best use. • Kathy Sharp Ms. Sharp, citing the death of 10 people in Clackamas County in the recent heat event, called for acknowledgement of the dramatic and immediate impact of climate change on the community. Lake Oswego's mature tree canopy represents a valuable resource that mitigates effects of heat and improves air quality, yet the municipal code related to tree removal and replacement serves only to promote destruction of the canopy, she asserted. Current code for Type II tree removal allows a tree of 15-inch diameter to be replaced with a tree of minimum 11/2-inch diameter or with a 6-foot-tall ornamental cypress tree, which provides no shade. An existing resource is being squandered, in her view. Council is asked to enact an immediate moratorium on tree-cutting in the city until such time as significant restrictions can be developed to substantiate tree removal. For example, replacement of one single-family dwelling with another provides no net benefit to the community. In the rare cases where a tree removal is warranted, mitigation requirements need to be much more substantial than one-for-one replacement of a mature tree with a much smaller one. A more appropriate ratio would be 3:1 or 4:1, with the replacement trees large enough to provide immediate shade. Council is urged to take action now regarding 55.02.084 of the municipal code, i.e., to require developers to mitigate at a higher ratio or to transplant the mature tree to another location on the property. Mature fruit trees should be transplanted to City property, offering community members the opportunity to harvest and donate the fruit to Hunger Fighters Oregon. Mitigation trees should be placed adjacent to sidewalks, driveways or public areas; trees for owners' backyards should be placed there at their own expense. Council was asked to take action soon. • Randall Yamada Mr. Yamada indicated that he was speaking on behalf of the Stafford Hamlet and the Stafford- Tualatin Valley Community Planning Organization (CPO), and that he is a member of the project advisory committee for the Rassekh Park soccer field development. Both the Hamlet and CPO strongly support the Palisades NA approach to the project; they consider it far superior to the Parks and Recreation Department approach. The Palisades NA approach, they believe, will help to maintain the quality and character of the Stafford rural area, a longtime priority for their community. He indicated they had also submitted comments in support of this position from other Hamlet residents. • Chris Durkee Mr. Durkee introduced himself as land use coordinator for the Palisades NA. He commended the City for commissioning a traffic-impact analysis that took into consideration the combined effects of the three parks projects.While he favors all of the projects, he questions the assumed reduction in vehicular traffic attributable to the aquatic center; this, he indicated, was based on the revised golf course format, i.e., nine rather than 18 holes. In contrast, the Parks and Recreation Department website shows that an increase in traffic is anticipated for the golf course, which he City Council Regular Meeting Minutes Page 3 of 19 August 3, 2021 believes is a reasonable expectation of the higher-quality course. The City should ensure that the traffic analysis takes that increase into account, rather than assuming a reduction for golf course traffic. Secondly, he proposes that the City, in conjunction with Clackamas County and Metro, have a rational plan and source of funds in place for improvement of the roundabout at Atherton Drive/Stafford and Rosemont roads before construction on these projects begins. Councilor Manz asked how the Palisades NA might access pertinent data from the traffic-impact analyses. Mr. Anderholm explained that, in accordance with usual practice, the information would be available after the data has been submitted and reviewed by the City's Traffic Engineering and Transportation Department. He noted that the reduced number of trips projected for the new golf course was based on standards applied by the traffic-impact professionals; Parks and Recreation staff supplied the number of holes planned for the course, but had no input on the related calculation. The timeline for availability of the traffic data was not yet determined. The analyses did take into account the golf course reconfiguration, the recreation/aquatic center, and the Rassekh Park projects, he confirmed. 4.1 PRIOR PUBLIC COMMENT FOLLOW-UP No follow-up on prior Public Comment was presented. 5. COUNCIL BUSINESS 5.1 Resolution 21-29, A Resolution of the City Council of the City of Lake Oswego Submitting Initiative Measure 2020IN-1 to City Electors and Refering a Competing Measure to City Electors. Ms. Bennett recapped background of this item related to the Love LO Parks initiative petition, beginning with Council's June 15 meeting. In subsequent discussions of staff and Council, it had been determined that three options were available to Council in this situation of an initiative petition qualifying for the ballot: (1)Allow the initiative to proceed, without making a statement. (2) Endorse the initiative. (3) Within 30 days of certifying the initiative for the ballot (which Council had done on July 6), decide whether or not to refer a competing measure to voters, as well. After considering a draft measure prepared by staff, Council chose to have that option available. Accordingly, the City had conducted significant public outreach during July to determine views of people in Lake Oswego about natural areas in general and specifically about desired levels of protection that should be included in the City Charter for those areas. She introduced representatives of Praxis Political, an organization hired by the City to conduct this outreach, noting their expertise on matters going before the voters. Their report would assist the Council in deciding whether or not to refer a competing measure. Ms. Weyer, a Praxis partner, reported on the results of their community-engagement work during July and their recommendation on the prospective ballot referral. Her partner, Mr. Weigler, and colleague, Mr. Jacobs, were also available. Their report (Presentation — Prospective Parks Referral Community Engagement Results) began with a high-level summary of fundings and their recommendation: They found that there is strong public support for enhanced protections for parks and natural spaces, as well as for this referral; this was found quite consistently across the spectrum of their community engagement. Their recommendation is that the City Council pursue the referral, with a few minor adjustments to best meet the interests of Lake Oswego residents. Discussing a series of slides, Ms. Weyer summarized the engagement activities: two public listening sessions, direct outreach to stakeholders and community leaders, an online survey, and City Council Regular Meeting Minutes Page 4 of 19 August 3, 2021 a statistically-representative poll of Lake Oswego voters. A major finding was that nearly all respondents agreed on the critical value of parks and natural spaces in maintaining the city's high quality of life. Both quantitative and qualitative methods identified the desire for strong protections and preservation of parks, while also supporting the idea that the City must weigh those against the need for updates and maintenance. Common themes across the engagement channels included: protection of water quality and wildlife habitat; accessibility for people of various abilities; and preparedness for climate change, including preventative measures and containment of wildfires, with protection of the ability to respond to events. A final theme was the public's support for more dynamic communications, such as this outreach, from the City. This would give the community confidence that their input is being valued. Next, she highlighted results in the various categories of outreach activity and related topics of importance to respondents (Presentation p 7-10): Statistically-Representative Poll of Residents (405 respondents). There was strong support for the City Council measure under consideration (69% yes, 20% no). Parks/natural spaces topics of greatest interest were protection of wildlife habitat and water quality, accessibility, neighborhood connectivity via future trails, flexibility in neighborhood-livability planning, and adaptability to challenges posed by climate change. Key Community Survey Results (355 respondents). Asked to prioritize aspects of parks and natural spaces according to their importance, respondents identified two top items: protection of water quality and wildlife habitat and protection of the ability to preserve these areas in a changing climate. In a short-answer format, respondents mentioned a wide variety of topics that were distilled into several themes, including: not wanting development; desire to protect natural spaces and, notably, the distinction between parks and natural spaces; preservation of trees and the tree canopy; accessibility in alignment with the Americans with Disabilities Act; methods for fire prevention. Also highlighted was the importance of maintenance by the City and support for trails and trail systems. Key Community Stakeholder Results (26 respondents). Through outreach to nearly 70 community leaders and advocacy organizations, conversations were conducted in the form of 30-minute virtual interviews. All interviewees were asked the same set of questions. Key takeaways were that the public is happy with the City, particularly with the Parks and Recreation Department; and that accessibility is a high priority for nearly all. Several of the respondents specifically expressed support for the City's proposed referral. One area where a consensus was not heard was the matter of parking at parks and natural spaces: whether it was needed versus concerns about people parking in neighborhoods. Some respondents supported making space for development of emergency-response infrastructure; some expressed interest in more active outreach to community partners. Lastly, nearly all respondents considered it the City's job to provide maintenance and updates, while also believing that prospective major changes should be put before the voters. Key Listening Session Results (26 resident-participants). Conducted virtually, these sessions involved participants in an activity to identify values they felt the City should prioritize. With regard to parks and recreation, these were found to be: natural preservation, ecological integrity, wildlife and wildlife corridors, minimizing use of toxins, preserving old trees, and also embracing the historical perspective and knowledge of first peoples of the area. Additionally, participants offered feedback on various topics, including climate change, residential livability, and equitable access. The Praxis Political recommendation, she concluded, was to refer the measure before Council to the voters, with small adjustments to reflect greater emphasis on: (1) long-term accessibility for residents of various abilities; (2) inclusion of wildfire prevention and containment practices; and (3) inclusion in the measure of an expanded list of identified parks and natural spaces covered by the referendum. City Council Regular Meeting Minutes Page 5 of 19 August 3, 2021 Mayor Buck asked if the community survey had included comparison of the City measure and the initiative petition. Ms. Weyer indicated that side-by-side comparison was done with the statistically-representative poll, but not with the survey. The poll results had shown 69% in favor, 20% opposed, and 11% undecided, while the citizens' initiative showed 56% in favor, 27% opposed, and 17% undecided. She confirmed that members of Love LO Parks, sponsor of the initiative, had participated in the listening sessions. Mr. Weigler advised that those representatives had conveyed a number of themes. The decision to present an alternative to the citizens' initiative was questioned, given the 4,000 signatures on the petition and evident strong community support for it. Dialog was heard expressing disparate views of restoration and replacement of existing vegetation in natural spaces, with debate about the value of moving toward native species and loss of tree canopy in a time of increasing climate concerns. Another major point of distinction between some initiative supporters and others more in favor of the City's referral was the idea of paved pathways; the citizens' initiative prohibits the addition of hard- surfaced trails to parks and natural spaces. Contrasting viewpoints had been heard about whether or not a crushed-gravel surface would provide sufficient accessibility for all populations. Councilor Wendland asked if Praxis, based on their various engagement activities, would agree that the City's current parks and recreation practices generally seem to represent respondents' desires. While she was unable to speak to exact practices, Ms. Weyer noted it seemed clear that people are happy with the Parks and Recreation Department and feel their expectations are being met. In terms of comparing the two measures, she perceived concerns about the absence of specific elements in one measure or the other, e.g., accessibility or aspects of fire prevention. Ms. Bennett reviewed several changes made to the draft measure that was seen by the Council in June. (1) The measure now lists an expanded number of parks to ensure that all properties managed currently as natural areas, i.e., for the purpose of protecting habitat and water quality, are included. Added are: Kelly Creek, Pennington Park, Sunny Slope, Waluga Park - East, George Rogers Park, and Freepons Park. In some of the named parks, she noted, only a portion is managed as natural area, but not the entire park. (2) The guidance and language in the draft referendum is clarified with regard to universal access for people of all abilities, making clear that this is a goal of the trail program. Provisions for conducting environmental assessment to determine most appropriate trail use in each natural area were reinforced to state that the City intended to balance universal access with the desires to preserve habitat and water quality. (3) The definition of natural area was revised to clarify the role of natural areas in helping to mitigate and prepare for climate change and to allow for reduction of wildfire risk in the community; this is now identified clearly as a purpose of managing the natural areas. (4) As directed by Council in June, the Charter amendment is now proposed to include a draft map. This will ensure a clear understanding of the areas of extended protections, if indeed the measure is referred to voters. Staff now recommends that Council refer the measure. As the PARKS Board had mentioned, this is an adaptable means of updating Chapter 10 of the City Charter in a way that keeps faith with the community about the reason for owning these lands, while allowing the City to manage them in a responsible way over the long term. Councilor Manz asked about the ability to conduct both firefighting and suppression in the natural areas, if necessary, as the recommended measure was proposed. Ms. Bennett indicated that she perceived it more as a matter of focusing some stewardship activities on reducing fuel load in the natural areas; this could avert spreading of a fire in these areas to neighborhoods or homes. Mayor Buck noted the large volume of email communication received by Council, in addition to the input received through the community-engagement activities led by Praxis. He offered context City Council Regular Meeting Minutes Page 6 of 19 August 3, 2021 for the current situation and the question asked by many people involved with the citizens' initiative: Why, after working hard to prepare the measure and gather signatures, do we now find the City referring a competing measure? Why did people not work together? This was not anyone's first choice, he emphasized. He described years of effort to work with Love LO Parks and to reach a collaborative consensus on a measure for the ballot. Such a measure would amend the Charter; as such, if it lacked the support of City Council, the PARKS Board, and of those leaders involved for years in hands-on park efforts, the measure would not be successful. Collaboration and coming together was imperative. Discussing unsuccessful efforts to collaborate, he noted that this was not for lack of trying by people the Council regarded as their most trusted advisors, i.e., the PARKS Board and many dedicated volunteers. These people believe the goals of the initiative measure are very good, but there are issues with construction; Council must listen to that advice. The years-long commitment of Love LO Parks, including gathering of signatures, and the survey results both underscore the community's overwhelming support for protecting parks. It is Council's responsibility to hear all community members, not only those who formulated the initiative measure. Therefore, the competing measures are proposed for the November ballot, which will enable the community as a whole to decide. This is in accordance with the City's prescribed process. The matter weighs heavily on Council, he noted, but rightfully so because of the potential consequences in terms of the City Charter. People working together is fundamental to the public process. Citing Rassekh Park as a good example, he stated that in coming together to reach solutions, the community moves forward. The Charter amendment now before Council advances that purpose, and he fully supports it. He thanked community members for the dedication they had shown on both sides of the issue, and urged all to be mindful that they are neighbors talking to neighbors, even when communicating from behind computer screens. Councilor Manz echoed Mayor Buck's appreciation for the advocacy of everyone working to preserve the parks, regardless of how they went about it. Describing her own advocacy and enjoyment of parks for many years, she agreed that the issue now at hand is how the community can best protect parks for years to come. A change to the Charter affects many future generations and therefore must furnish solid information for their decision-making. She confirmed her support for the City's measure, while recognizing the strong advocacy of those supporting the citizens' initiative and feeling regretful that a more collaborative way could not be found. Councilor Rapf moved to adopt Resolution 21-29. Councilor Manz seconded the motion. Councilor Wendland endorsed the observations of the Mayor and Councilor Manz, emphasizing the importance of the Charter as a long-range, flexible document. The City's Charter referendum provides this assurance. While considering it slightly more refined and able to serve the City better, he thanked those involved with the initiative petition for codifying what is already being practiced. Community members, with their love for parks and natural spaces, also have a love for process; in his experience, nobody gets exactly what they want, but everyone comes together to get what is best for the city. He reiterated his strong support for the City's referendum as moved and seconded. A roll call vote was held, and the motion passed, with Mayor Buck and Councilors Manz, Nguyen, Wendland, Verdick, and Rapf voting `aye'. (6-0). City Council Regular Meeting Minutes Page 7 of 19 August 3, 2021 6. PUBLIC HEARING 6.1 Appeal of the Development Review Commission's Approval on Application LU 20- 0032 /AP 21-02 of Residential Infill Design (RID) Variances in Order to Construct an Addition onto an Existing Single-Family Dwelling at 17760 Lake Haven Drive. Mr. Loos advised that the matter concerned an appeal of a decision involving LU 20-0032, involving the application of criteria and standards listed in the Council Report (Appeal 21-02 / LU 20-0032 of DRC's Approval of RID Variance) and otherwise available at the meeting. After reviewing requirements and limitations related to testimony and evidence, he reviewed the hearing process and parameters, including time limits for testimony. Next, he called on Council members to identify any ex parte contact, including site visits, bias on this application or any financial conflicts of interest. Mayor Buck and Councilor Wendland stated that they had made site visits. Mr. Fransted advised Council of additional testimony received subsequent to his Council Report submitted on July 23 and now to be entered into the record: Exhibit G-228, which includes comments in opposition from Corinne and Laurence Spiegel; Exhibit G-229, which includes comments in opposition from Gary and Cathy Levine; and Exhibit G-230, which includes comments in opposition from attorney Terry Richards, representing Gary and Cathy Levine. Having reviewed the new testimony, he had found no information not already in the record or that could not have been derived from evidence in the record. With accompanying slides (Presentation - Appeal 21-02 / LU 20-0032 from Staff), Mr. Fransted first described the location and irregular configuration of the subject lot, which has multiple side yards and two front yards. Non-conforming setbacks were pointed out on the Sarah Hill Lane frontage and on the east side-yard setback. The site plan proposed by the applicant illustrated a redesign of the existing two-car garage that is accessed from Lake Haven Drive to add a third vehicle bay, with the driveway access to Sarah Hill Lane. As detailed in the Council Report, the applicant requests approval of the following RID variances in order to construct an addition: (1)to reduce the 25-foot front yard setback from Sarah Hill Lane to 10 feet, and (2) to allow the garage to be located closer to the street, i.e., Sarah Hill Lane, than the dwelling would be. He noted the locations of two existing large Douglas fir trees near the proposed construction. Next, he discussed a series of slides showing proposed main floor and upper floor plans, followed by renderings of the proposed front and side elevations. A final rendering showed the side elevation, including a proposed metal gate and new fence. In staff's March 18 report, the proposal was determined to comply with all applicable criteria and standards or could be made to comply, with the imposition of conditions. The staff decision was subsequently appealed to the Development Review Commission (DRC) by Gary and Cathy Levine, owners of abutting property at 17810 Sarah Hill Lane. A public hearing was held by the DRC on May 3 and continued to May 17 to allow for submission of additional written testimony. A total of 37 exhibits were received by May 17, including a mix of comments in opposition and in support. Some comments noted the need to retain the two Douglas fir trees near the proposed garage as a means of retaining the tree canopy and treed character of the neighborhood. The DRC concluded that the proposal could be made to comply with all applicable criteria and approved the application, with an added condition of approval that required the two trees may not be removed unless shown to be either dead or hazardous, in which case mitigation requirements were specified. On June 21 the DRC approval was appealed to City Council by Hans Kroese, Karl Huber, and Jane Burns and Caleb Burns. The appellants state that City Council Regular Meeting Minutes Page 8 of 19 August 3, 2021 the DRC erred in its decision to approve the application in these ways, as detailed in the Council Report (p 2-3), by: (1) misapplying the applicable variance criteria; (2) failing to find that the applicant did not submit evidence necessary to show the applicable criteria are satisfied; (3)failing to acknowledge the countervailing evidence submitted by the neighbors; (4) failing to "dig in" to understand the unique neighborhood situation and to consider the lack of consensus among neighbors or to evaluate the livability concerns raised. Next Mr. Fransted discussed the DRC's considerations regarding design variance standards. As to general design variance standards, the DRC found that siting a garage addition to meet the required garage location standard is impractical because of the existing garage's proximity to the south lot lines along Sarah Hill Lane and the two large Douglas fir trees. Next, he discussed considerations of the front yard setback as incorporated in the proposed garage design; its proposed height and its distance from the nearest structure, the garage at 17810 Sarah Hill Lane, will allow light and access between the structures. The DRC found that construction of the proposed garage will result in a project of exceptional design that will be compatible with the scale and character of the neighborhood, predominantly zoned R-7.5; it will also be compatible with the existing dwelling's Colonial style. The DRC found that the design better meets the purposes of the R-7.5 base district. Moving to the RID criteria, he described the pattern and character of development of lots abutting the site within 300 feet. The proposed garage would match the dwelling's Colonial style, which is consistent with the existing development pattern and character of the neighborhood. He discussed conditions under which a RID variance might be approved, relating in this instance to dwelling size (a more compatible positive relationship between residential dwelling and neighborhood scale and character is demonstrated) and front yard setback (the proposed exception will not appear out of character because it is consistent with the pattern of setbacks in the neighborhood, particularly on Sarah Hill Lane). This design's low-profile single story, set back 10 feet from the front lot line on Sarah Hill Lane and increasing in height for the portion oriented toward Lake Haven Drive, breaks up the garage massing; the overall low height reduces the visual impact as viewed from the street and surrounding properties. The DRC found that, with regard to the decreased front yard setback, the proposed design results in a development that is better than what could be approved without the exceptions. Considering the development pattern in the immediate vicinity, building massing, and preservation of distinctive trees, the design will create a more positive relationship between size of the structure and the scale and character of neighborhood residences, while diminishing the visibility of a reduced setback from the street. Finally, regarding relationship to the street, the DRC found that the reduction of the front yard setback and location of the garage in front of the dwelling results in a development that is better than what could be approved without the exceptions. The design will make a positive contribution to the scale and character of the streetscape with nearby properties having non-conforming front yard setbacks and front-loading garages. Through preservation of the two large existing trees and design details, such as the stepped second floor and carriage garage doors with dentil molding, the perceived size and scale of the building is diminished as viewed from the street. Questions of Staff Mayor Buck inquired about the difference between a RID variance and a regular variance. Mr. Fransted distinguished the RID variance from the other two categories of variance, i.e., minor and major, with the RID variance being based purely on design. He confirmed the Mayor's understanding of the proposed garage location on the Sarah Hill Lane frontage, one of the two frontages as defined by code. The garage at 17810 Sarah Hill Lane was closest of all those along that street and, among others in the area, was non-conforming. City Council Regular Meeting Minutes Page 9 of 19 August 3, 2021 Testimony of Applicant Joan Hutchinson, participating remotely (by phone), indicated that she wanted Council to understand that only out-of-town work obligations had precluded her attendance. Karen Sedwick would therefore be representing her as applicant. Additionally, Ms. Hutchinson recognized Mr. Fransted for his professionalism and clarity throughout the process. Karen Sedwick, Metke Remodeling & Luxury Homes, affirmed that she would be speaking in support of the application on behalf of Ms. Hutchinson. Beginning with general background on Ms. Hutchinson's ownership of 17760 Lake Haven Drive since 2008, she discussed her desire to update the home. One of Ms. Hutchinson's overarching goals is to establish the house as one that will be preserved over the long term, rather than being demolished and replaced on the lot by one or more"mega-mansions", with maximized lot coverage and height and minimal setbacks. In accordance with Ms. Hutchinson's wants and needs, the design prioritizes (1) maintaining the two mature fir trees on the south side of the lot and (2) making the addition feel in unison with the existing home and its Colonial style. Multiple options and situations were considered. Of those, the proposed design was settled on as the best choice, although they were aware it would be necessary to expend the time and costs of the RID variance process. Displaying accompanying slides (Presentation — Appeal 21-02 / LU 20-0032 from Applicant), she reviewed the unique lot configuration, noting that the proposed design called for a setback twice that of a standard 5' side yard setback required under R-7 zoning. Oddities of the lot, she noted, had been addressed with the two variance requests: one for the 10' setback from the property line, i.e., 18 feet from the curb, and the other to allow the garage to be situated in front of the house on the Sarah Hill Lane frontage. A timeline of meetings and hearings since submission of the minor development application on January 19 was discussed; significant involvement, including delay and expense on the applicant's part, had resulted. Resolution today by the Council is hoped for. With a series of slides, she reviewed features of the proposal that support the City's requirement for extraordinary design. Guided by the strong desire to protect the two trees, while complying with allowed setbacks and restrictions, the applicant found no appealing options. Renderings showing the proposed design from both the Sarah Hill cul-de-sac and Lake Haven Drive frontages were discussed. Next, input from a number of neighbors reflecting positive support for the project was highlighted. During the submission period for testimony, comments had been received from 19 households, including some from people who had initially signed a petition in opposition. These comments expressed neighbors' support as they perceived: (1) improved value for properties along Sarah Hill Lane; (2) improved quality of design and aesthetic personality of the neighborhood; (3) no negative impact to adjacent open space; (4) benefits for neighbors walking in the vicinity; and (5) fairness and reasonableness, as use of the cul-de-sac will not be altered and the garage facing onto it will make Sarah Hill Lane feel more inviting. Other testimony had expressed neighborhood appreciation for saving the trees, maintaining architectural design aesthetics, investment in improvements at the location, and also for objectivity provided by the City as arbiter on the design. Testimony of Appellant Mayor Buck announced that testimony of the co-appellants, Hans Kroese, Karl Huber, and Jane Burns and Caleb Burns would next be heard. Jane Burns indicated that she resides near the applicant's property, and would specifically address the first variance, which requests reduction of the 25-foot setback from Sarah Hill Lane City Council Regular Meeting Minutes Page 10 of 19 August 3, 2021 to 10 feet. The project, she noted, was primarily for the purpose of housing a sizable boat. As illustrated by a slide presentation (Presentation—Appeal 21-02/LU 20-0032 from Appellant), Ms. Burns asserted that basic requirements for a variance had not been met, which she would illustrate with three questions about the project: (1)Would compliance with the existing setbacks cause undue hardship? Answer: No, because approval of a variance requires demonstrating undue hardship. In this case, the sizable lot offers options to build that do not require a major variance. The existing house is standard for the neighborhood. The applicant's stated intention in building garage space is to provide space for her boat; however, she already has a boathouse on the canal and could simply install a boat lift that would allow her to store it under cover. Therefore, undue hardship is not shown. (2) Is this variance needed to build additional garage space? Answer: No, because there are other locations on the property for additional garage space. Among the options discussed earlier was one, rejected by the applicant, that would save two trees; this actually was one conjoined tree, she understood. In rejecting a possible solution that does not require a variance to setback restrictions, the applicant had imposed a self-created hardship, considered a threat to the integrity of a jurisdiction's zoning law. Use of the RID variance process was questionable in light of the hardship requirement. Concluding, she stated that there is no credible case of undue hardship caused by setbacks. If built, the garage would be inconsistent with other homes on Sarah Hill Lane, devaluing neighbors' property and impacting front yard ambiance. The stark two-story garage would abut the much-appreciated nature park. Approval of the project would seemingly use the RID process to house a boat. This would hurt people in the area and, in the appellant's view, is wrong. Hans Kroese stated his opposition to the DRC's June 7 decision, noting that he, too, lives in close proximity to the applicant's property. He reviewed background of his involvement in opposition to the project, including gathering of about 30 neighbors' signatures and written testimony submitted to the DRC. Findings of the DRC and the City staff planner, he opined, were based on the applicant's inadequate and incomplete information analysis. He perceived they "rubber-stamped" the project: Only two DRC members visited the site, virtually none of the neighbors' written testimony voicing opposition was read at the appeal hearing, negative implications of the design were not considered, and alternative designs were not fully explored. The proposed design does not blend into the neighborhood nor does it have the appeal and aesthetic feel that belongs there; it was likely to reduce neighborhood property values, as well. He disagrees with the applicant's claim that the RID variance will enhance the pedestrian experience. The garage with asymmetrical second story would loom over the cul-de-sac near the park. Locating it closer to the street than the dwelling, in his opinion, is inconsistent with front yards of homes within a 300' radius. The setback of 10 feet for the extra-long two-story garage, intended for boat storage, is insufficient. This is exacerbated by comparison to other properties within the 300' radius, where the average front yard setback is 44 feet; approval of the 10' setback would be an anomaly. He expressed his heartfelt objection to the project. Councilor Manz requested confirmation that the project site was adjacent to the public park parcel near the cul-de-sac, indicating that her question was based on accessing of Google Street View. Confirming that was the case, Mr. Kroese emphasized that, while park space was not being removed, the proximity and design of the structure, as proposed, would loom over the park. Having received clarification regarding her viewing of the project site on Google, Councilor Manz declared that she had visited the site. Mayor Buck called for any other testimony on the application, either in support, in opposition or neutral. None was heard. City Council Regular Meeting Minutes Page 11 of 19 August 3, 2021 Applicant's Rebuttal Ms. Sedwick clarified that the addition would not extend out to the existing fence line. The existing fence would be replaced at the same location by the new fence, rather than as stated incorrectly in the previous testimony. She noted also that the current zoning for the property allows 35% lot coverage, and even with the proposed addition, this will still be one of the smallest houses in the neighborhood, at 18.2% lot coverage. The requested change, therefore, was not as dramatic as might be envisioned by another developer. Councilor Manz moved to tentatively affirm the Development Review Commission's June 7, 2021, Order approving LU 20-0032, as detailed in the adopted Commission Findings, Conclusions and Order, and direct staff to return on September 9, 2021, with City Council findings, conclusions and an order. Councilor Nguyen seconded the motion. A roll call vote was held, and the motion passed, with Mayor Buck and Councilors Manz, Nguyen, Wendland, Verdick, and Rapf voting `aye'. (6-0). 7. CONSENT AGENDA— Full Council 7.1 Approval to Purchase New Pierce Fire Engine Motion: Move to authorize the City Manager to execute a purchase agreement with Hughes Fire Equipment for the purchase of a new fire engine. 7.4 LOIS and Near Shore Sewer Inspection and Assessment RFP Award for WO 317 Motion: Move to award a Personal Services contract to MurraySmith in the amount of $3,413,439 for Engineering Services for LOIS and Near Shore Sewer Inspection and Assessment (WO 317). 7.5 Purchase of Property at 1107 Yates Street Motion: Move to approve a purchase agreement for 1107 Yates Street. END CONSENT AGENDA Councilor Wendland moved to approve the Consent Agenda. Councilor Manz seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Manz, Nguyen, Wendland, Verdick, and Rapf voting `aye'. (6-0) 8. ITEMS REMOVED FROM THE CONSENT AGENDA 7.2 Approval to Purchase New Street Sweeper— Postponed to a future Council Meeting Mayor Buck announced that this item had been removed from the Consent Agenda and would be considered at a future Council meeting. City Council Regular Meeting Minutes Page 12 of 19 August 3, 2021 7.3 Neighborhood Enhancement Program Grant Awards Mayor Buck announced that this item had been removed from the Consent Agenda at his request for Council discussion. He expressed gratitude for the work of those serving on the Neighborhood Enhancement Program (NEP) Grant Review Committee, acknowledging their adherence to the grant criteria. However, he was concerned that only half of the grant funding had been designated for award and that a couple of applications appearing to lack only minor components had not been recommended, as detailed in the Council Report (Neighborhood Enhancement Program Grant Awards). He asked about sending two specific requests back to the committee to consider opportunities for curing of the applications and awarding more funds: those from the First Addition Neighbors/Forest Hills Neighborhood Association and the Black Forest Court Homeowners Association (HOA), described in Attachment 1 to the Report. Mr. Olson, who provided staff support to the committee, advised that the decision on the Black Forest Court HOA request was based primarily on the longstanding NEP award criterion that disallows funding of private improvements on HOA property. The First Addition Neighbors/Forest Hills NA proposed the purchase of materials to support neighborhood emergency preparedness. This request was not recommended because it included some materials not specified in previously-authorized lists, hence these could not be evaluated, with assistance of PrepLO, regarding effectiveness for their intended use. This assessment was precluded by the pandemic and shortened grant cycle of the previous year, but he indicated that meeting with PrepLO on the topic would make sense. As to the Black Forest Court HOA request for funding to remove invasive species and for sign improvements, he confirmed Mayor Buck's understanding: that NEP grant awards were not allowed for improvement to private HOA property. Further, longer-term maintenance projects, e.g., ivy removal, cannot typically be accomplished in one year and are considered a matter of ongoing maintenance. Approval of NEP awards for these purposes, therefore, have generally not been approved, particularly on private lands. Noting that invasives growing on various private properties, e.g., those with HOA or railroad ownership, affected the larger community, Mayor Buck suggested Council consider expanding eligibility for the NEP grant program. Benefits of making the funding available could provide a broader community benefit. Councilor Rapf expressed support for expanded use of the available funds, and for the committee's efforts to help improve neighborhoods and surrounding properties. Councilor Nguyen concurred. He emphasized the importance of hearing a broad range of community views through the committee, not only from those who are most vocal. While appreciating the volunteer service of all, he suggested a review of the appointment process for this and other grant-related committees; coordination with other municipal grant sources might also be explored. Lastly, because many of the NEP grant applications are prepared by volunteers, he called for proactive efforts by the committee and staff to assist in curing minor application issues. Failure to adhere precisely to the process should not be a barrier to enhancing neighborhoods. Councilor Manz proposed that Council consider directing staff to explore the need for review and potential revisions regarding some of the issues raised. Ms. Bennett requested that Council first have a policy discussion concerning HOAs. She acknowledged the importance of removing invasives on HOA properties and possible eligibility under the NEP program, as noted by the Mayor. However, she is mindful that public funds must be spent such that clear public benefit is demonstrated; this is more challenging when privately-owned/-controlled properties are involved. City Council Regular Meeting Minutes Page 13 of 19 August 3, 2021 Following up on Councilor Nguyen's concern, Mr. Olson indicated that minor omissions on grant applications had been addressed with conditional approval subject to providing the information. He was not aware of any applications rejected because of such issues. Councilor Wendland moved to approve the 2021-2022 Neighborhood Enhancement Program (NEP) grants as recommended by the NEP Grant Review Committee, with the exception of two applications: Black Forest Court Homeowners Association proposal for maintenance and upgrades to HOA property and the First Addition Neighbors-Forest Hills NA proposal for emergency preparedness program planning and development. These two applications will be reconsidered by the NEP Grant Review Committee. Councilor Manz seconded the motion. After brief clarification of the motion, Ms. Bennett confirmed that staff would reconvene the committee to review the two proposals. Additionally, staff would return with a discussion of modifications to the criteria that Council might contemplate for future years, as well as consideration of how NEP committee appointments are made. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Manz, Nguyen, Wendland, Verdick, and Rapf voting `aye'. (6-0) 9. CONSENT AGENDA— Councilors Only 9.1 Resolution 21-27, A Resolution of the Lake Oswego City Council Replacing David Beckett with the Appointment of Helen Leek as a Member of the Ad Hoc Middle Housing Code Advisory Committee Motion: Move to adopt Resolution 21-27 [Note: Only Councilors vote to concur in Mayor's appointments of Committee members, per Charter, Sec. 19.] Councilor Wendland moved to adopt Resolution 21-27. Councilor Manz seconded the motion. A voice vote was held, and the motion passed, with Councilors Manz, Nguyen, Wendland, Verdick, and Rapf voting `aye'. (5-0) 10. INFORMATION FROM COUNCIL Councilor Manz expressed gratitude to the numerous people who had advocated for Hallinan Woods over a period of many years. 11. REPORTS OF OFFICERS Ms. Bennett reminded City Council of their recess for the balance of August. The next Council meeting is scheduled for Thursday, September 9, because September 7 coincides with the date of Rosh Hashanah. 12. RECESS Mayor Buck announced that the City Council meeting was in recess at 4:07 p.m. City Council Regular Meeting Minutes Page 14 of 19 August 3, 2021 16. RECONVENE Mayor Buck reconvened the City Council meeting at 4:08 p.m. 17. STUDY SESSION 17.1 Certification Office for Business Inclusion and Diversity (COBID) Update Mayor Buck noted that Mr. Sullivan, one of the City's Kincaid Interns, would be updating the Council on progress made in support of the Council Goal to amend the City's Public Contracting Rules and develop approaches for increased opportunity for firms certified by the State's Certification Office for Business Inclusion and Diversity (COBID). Ms. Bennett expressed gratitude for Mr. Sullivan's contributions during the apprenticeship, which would conclude shortly. Mr. Boone, presenting the update along with Mr. Sullivan, opened with an overview. Pursuant to the Council Goal to consider expanding the diversity of vendors with which the City contracts, staff had sought information from other jurisdictions in the area. They had found a range of experience with such programs, and found that Lake Oswego is not on the leading edge, but slightly behind it; this offers an opportunity to learn from other jurisdictions' experience. In addition to challenges of staff training and the like, he noted some concerns that might impede a rollout. Notably, there is a decreased number of COBID-certified firms at a time when more jurisdictions are seeking proposals from them, hence a mismatch. Nonetheless, he indicated it was desirable for the City to proceed with setting up the process. Following that, realistic expectations can be discussed, which can subsequently involve the City's future Equity Program Manager and the contracting communities. He called on Mr. Sullivan to report on research compiled to date. Mr. Sullivan noted the benefits for the City of adopting changes to its Public Contracting Rules to allow expanded contracting with COBID-certified firms: (1) equity of opportunity for businesses not historically represented in bidding for public contracts; (2) more competition amongst firms seeking City contracts; and (3) through supporting of those small businesses, support for a stronger regional economy. Staff participated in conversations with many other local governments and public agencies in recent months, as documented in the Council Report (Certification Office for Business Inclusion and Diversity (COBID) Update), p 3. Among the cities overall, they had found widespread interest in contracting with COBID-certified firms. They had observed a range of experience varying from well-established programs to ones only in early stages. In particular, the City of Beaverton's experience with COBID procurement and purchasing code amendments offered an adaptable model for Lake Oswego; Council was directed to Attachment 2 to the Report, which reflects working draft amendments to the Public Contracting Rules now prepared. The strong focus on staff training at the City of Eugene was also identified as a useful source. These and other cities generously provided advice and shared training materials and other documents. Next, he highlighted some lessons learned: (1) Rather than setting up additional certification programs, cities considering equity-focused procurement are using the COBID program, offered through Business Oregon and established by Oregon state law. (2) The City was encouraged to undertake procurement in smaller dollar amounts through businesses already listed as COBID certified with the State; this could encourage such firms to compete for more significant contracts in the future. (3) The demand for COBID-certified firms far outstrips the supply at this time. This is the result of increased interest in using them, as well as adverse effects of the pandemic on these businesses, some of which have failed. It is hoped that the situation will be resolved in the coming years as new market entries acquire certification and pandemic effects abate. Council's attention was drawn to the wide variance between industries in percentage of firms that are City Council Regular Meeting Minutes Page 15 of 19 August 3, 2021 COBID certified, illustrated in the Report, p 4-5. Additionally, some cities emphasized the importance of outreach to COBID-eligible businesses. If the City wishes to set an aspirational goal for use of COBID-certified firms, some of the cities recommended starting with a modest goal that could be adjusted over time. Given the City's decentralized procurement, staff is currently exploring possibilities for tracking usage of COBID-certified providers and the related percentage of all providers used. Among other information, staff has learned that some cities hold private contractors for construction projects to good-faith-effort requirements; these require prime contractors to document the extent to which they are subcontracting to COBID-certified firms, thus ensuring delivery of COBID-specific promises as submitted in their proposals. In setting its related Goal, Mr. Sullivan noted, the Council had asked staff to examine the feasibility of expanding contracting opportunities to locally-owned businesses. While the widely- accepted legal opinion holds that this is not possible, staff can still conduct outreach to local businesses and encourage their responses to project solicitations. In accordance with Council members' earlier requests for more information about the City's Public Contracting Rules, he described a reference sheet that has been prepared (Attachment 3 to the Report). Referring to the draft amendments to the Rules (i.e., Attachment 2 to the Report), he clarified that these do not represent formal staff recommendations, but rather an idea for a policy Council might set. Staff's policy questions for Council would include: At levels of procurement that require a certain number of proposals, how many should be from COBID-certified firms, and what are related parameters? As in some other cities, should staff be allowed to post an intermediate-level solicitation on OregonBuys, the State's public-contracting marketplace, instead of soliciting directly from COBID-certified firms? Should the City adopt an aspirational goal and, if so, when should that be done, what should it be, and to what contract types would it apply? Concluding, he offered staff's support in providing any additional information to help guide Council. Mayor Buck expressed appreciation for the report. Noting that it seemed desirable to encourage as many proposals as possible, he requested clarification about the impact of policy requirements. Mr. Boone stated that this would depend on the level of the contract. He indicated the current discussion pertained to goods and trade services, as distinguished from personal services and public improvement, as well as from the work of architects and engineers. Many City contracts involve goods and services; for those with contract amounts under $10,000, a minimum of two bids is required, though the project manager can solicit additional quotes. It is a question of balance between getting those quotes and the administrative time required to do so. In continued discussion, pros and cons of current requirements were noted. In the case of small procurements, e.g., under $10,000, Mr. Boone discussed challenges that would be faced if one or more bids from COBID-certified firms were to be mandated. In addition to considerations of administrative workload, Council might regard any adopted rules as part of an evolving process as the program moves forward. In response to a request from Councilor Manz, Mr. Sullivan expanded on staff's efforts to define a suitable tracking methodology for the program. Unlike many other cities, Lake Oswego has a decentralized approach to procurement. Staff is currently discussing how to address tracking needs, and would be providing more information to Council. Councilor Nguyen, noting his perspective as owner of a COBID-certified business, commented on two ways to look at public contracting. On the one side were contracts for goods and services, which tend to be for smaller dollar amounts, typically with a single firm; these are relatively easy to track. On the other side are contracts for much larger amounts, with involvement of multiple trades and auxiliary services, e.g., for road construction. While companies submitting proposals City Council Regular Meeting Minutes Page 16 of 19 August 3, 2021 for these larger projects may tout their diversification of suppliers, the City can help smaller firms by helping them build capacity. The established prime contractors, he observed, were in a position to facilitate that building process and the related knowledge transfer. Through partnering or joint ventures, perhaps through involving them in a portion of a large project, the smaller firms' résumés could be enhanced. In his view, there is opportunity for the City in single-firm procurement, but a much greater impact is offered by creating opportunities for smaller businesses. Revisions to the City's RFP process might be considered, e.g., giving extra weight to firms' demonstrated efforts to use woman-or minority-owned businesses. This would place the onus on the prime contractor, and hence the market's competitive forces, to drive the selection process. It could offer synergy and an alternative to staff's efforts to identify and solicit desirable prime contractors. With any aspirational goals, he suggested starting with small objectives; he described how a larger project might be structured to incorporate opportunity for a small business. Most important was finding a way to create that opportunity and make it part of the RFP and other City processes. In his time on Council, he had observed that prime contractors' presentations generally showed they were prepared to address their small-business inclusion activities. Focusing on public-improvement contracting, Mr. Boone indicated that those firms' longer history with COBID certification had provided them with experience, while decision-makers had means of analysis. As to smaller contracts in the public-improvement arena, he described how the City would analyze and "blend" requirements in order to award direct contracts to COBID-certified firms in addition to prime contractors. He noted that distinct requirements were related to architects' and engineers' contracts, i.e., a qualifications-based selection (QBS) process. In this case, the City would likely reach out to that community to learn who might wish to be added to the QBS list. All of these contract types would have to be analyzed in different ways. In regard to architecture/engineering contracts, Councilor Nguyen asked about possibilities for an expanded list of COBID-certified providers outside of Oregon, perhaps through reciprocity. While understanding that a local provider cannot be required, he cited an example from his own experience, where RFPs from a port authority might encourage partnering with a local firm as a means of building local capacity. Mr. Boone distinguished this from his point: When the City reaches out to determine the firms that wish to be on the QBS list, it will need to ensure that those on the COBID-certified list are encouraged. Similar lists for Oregon,Washington, and other states, might be included; however, a firm must be on the QBS list for any contract to be awarded. In response to Councilor Wendland's questions, Mr. Boone confirmed that the City is required to approve the lowest bid, with the selection based on criteria that the City has established. The decision that will be coming before Council will be about the criteria relative to COBID: Should the City simply choose from a list and submit the quotes? An alternative might be to assign points for COBID-certified firms, meaning the City would be considering criteria beyond only low cost. This would be an issue for the Council, he reiterated. Councilor Wendland asked about COBID certification in relation to some of the cooperative purchasing agreements in which the City participates, particularly as those can involve much lower costs. One possibility, Mr. Boone noted, was that the cooperative purchasing agreements through the State of Oregon were likely to generate a good response from COBID-certified firms as those firms participate in OregonBuys, the State's procurement process. On the other hand, there was much less chance that vendors involved in national permissive cooperative agreements would have participated in that project and then been awarded a contract. So, the City would need to consider how to encourage continued purchasing through the cooperative purchasing agreements; this remains an unanswered question. City Council Regular Meeting Minutes Page 17 of 19 August 3, 2021 Councilor Wendland discussed the need to understand the full extent of annual City purchases of goods and services, including their amounts and categories. In order to ensure that contract awards went to companies that were aligned with the City's philosophy, it would be helpful to know where the greatest impact could be made through purchasing decisions. Ms. Bennett advised that total annual purchasing of goods and services was in the millions of dollars. She noted the importance of staff's work in helping Lake Oswego to align with other cities in the area, e.g., Beaverton, Tualatin, Tigard, thus avoiding confusion in the contracting community; reasonable consistency with those jurisdictions would be beneficial to all involved. Based on her experience, she recognized that the City of Lake Oswego's annual purchasing was relatively small in comparison to the total purchasing by public entities in Oregon. Therefore, it would be important for the City to collaborate with the other public entities seeking the same outcome: creating capacity in this part of the business community. The City of Lake Oswego, acting alone, probably cannot create a lot of capacity, but collaboration with cities of comparable or larger size can help to achieve that ultimate goal. Mr. Boone noted that implementing the program would likely be more efficient in the public-improvement sector,with its larger dollars, than where smaller contract amounts are involved. The latter would require more staff time because of the significant amount of one-on-one outreach to the local contracting community for goods and services. He suggested that different aspirational goals might be set to recognize this longer timeline. Mayor Buck inquired about responsibility for the outreach efforts in other cities staff has contacted. Mr. Sullivan indicated that these efforts are often conducted through a city's procurement office or by project managers. While the City of Lake Oswego does not have a procurement office, Mr. Boone noted, he would assist with training aspects; also, the City's new Equity Program Manager would need to be called upon to ensure awareness by primary project managers in the departments. Mayor Buck indicated that Council might wish to consider this outreach in the context of economic development, perhaps through engagement with the Chamber of Commerce. In response to Councilor Manz's inquiry about any further direction needed, Ms. Bennett indicated that staff wanted to confirm they were on the right track. They would be following up with Council on aspirational goals for the program, and also would respond with some information on the purchasing amounts, as discussed. Mr. Boone affirmed that, as outlined in the Report, staff would return in late September to fine-tune the proposed program. This would provide the necessary direction to move forward to a public hearing, likely to be held in November, in order to amend the Public Contracting Rules. 18. ADJOURNMENT Mayor Buck adjourned the meeting at 4:45 p.m. City Council Regular Meeting Minutes Page 18 of 19 August 3, 2021 Respectfully submitted, Kari Linder, City Recorder Approved by the City Council on Joseph M. Buck, Mayor City Council Regular Meeting Minutes Page 19 of 19 August 3, 2021 ATTACHMENT 2 CITY COUNCIL REGULAR MEETING MINUTES L September 9, 2021 aREGO� 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 5:34 p.m. on September 9, 2021. The meeting was held both virtually via Zoom and in-person. 2. ROLL CALL Present: Mayor Buck and Councilors Nguyen, Wendland, Verdick, Rapf (remote via Zoom), Mboup and Manz Staff Present: Martha Bennett, City Manager; Jason Loos, City Attorney; Madison Thesing, Assistant to the City Manager; Erica Rooney, City Engineer Public Works Director; Shawn Cross, Finance Director; Kari Linder, City Recorder 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PUBLIC COMMENT • Jeff Harris Mr. Harris referred to correspondence and photos he had emailed to the City Council, and described the flooding issues on his street. He lived in the last house on the left on 5' St just before crossing the railroad tracks onto Cabana Ln. City staff informed him that 5' St would not be paved along with other neighborhood streets last summer to avoid having to tear up new pavement to fix a stormwater drainage problem, but staff also said no plan existed to fix the problem. Several long-term neighbors told him the problem has existed for many years, and they were of the opinion that it had been ignored by the City. Fifth St was a thoroughfare used by many people, even in winter. He and his wife enjoyed walking in the neighborhood, but sometimes the water pooled so badly that it was necessary to wade. Its depth sometimes could even be dangerous for pedestrians with children. Mayor Buck noted the City's capital improvement plan (CIP) was available online and showed $8.3 million in stormwater projects was planned. The City was not ignoring the project, but the number of projects necessary exceeded the amount of funding and resources available. He noted City Council Meeting Minutes Page 1 of 7 September 9, 2021 5111 St and Lake Bay drainage improvements were listed as projects on the CIP, but were in the unfunded column. The City would follow up with Mr. Harris on the matter. 5. STUDY SESSIONS 5.1 American Rescue Plan Act (ARPA) Funding Options Process Martha Bennett, City Manager, presented the Council Report for this agenda item, stating she was seeking Council's general guidance and a high-level policy decision about distribution of ARPA funds. She gave the background on the ARPA program and the categories eligible for funding. At the end of August, the City of Lake Oswego had received the first 50 percent of the $8.8 million allocated to it. Staff recommended Council prioritize the following allocations to three of the categories allowed under ARPA: • Revenue Loss - $7 million to transportation projects including the North Shore Bridge, Lakeview Blvd, McVey/Stafford/Hwy 43, and Boones Ferry Rd. • Response to the Public Health Emergency, specifically the negative economic impacts - $600,000 for a grant program to non-profits supporting visitors and tourism, and $240,000 for other non-profits assisting Lake Oswego residents. • Water, Sewer, and Broadband Infrastructure - $1.1 million for water, wastewater, and stormwater projects. Based on Council's recommendations, staff would develop a plan for distribution of the funds and grants. Councilor comments and staffs answers to clarifying questions from Council were as follows: • FY 2018-2019 was used as a base year for the calculation of the $7.1 million figure. Unless the funds were already allocated, the City might be able to use all of the $8.8 million in ARPA funds toward revenue replacement. • A recommendation was made to allocate funds to small shops and restaurants, which drove tourism to Lake Oswego. • Any remaining funds from the North Shore Bridge project should be directed to Safe Routes to Schools. Kids should be encouraged to walk instead of busing. • Ensure sufficient funds were put toward covering the entire cost of a project. • The cost of retrofitting the water plant to accept generators was yet to be determined, but staff was confident that sufficient funds could be obtained through minor adjustments to less important needs to complete that project. • Money should be allocated to education and Safe Routes to Schools. • Determine if ARPA funds could be used toward the flooding concerns described during public testimony tonight. • Inquiries had been received about direct allocation of funds from community groups and others, which was in part why staff recommended a grant process for fairness. Many programs in ARPA provided direct assistance to businesses, including restaurant revitalization. • Two council liaisons should be part of the ad hoc committee for the grant program. • ARPA funds could not be used to match other funds, such as those from Congress intended for infrastructure. Whether using ARPA funds on other infrastructure projects would impact receipt of federal funds would depend upon how Congress chose to allocate those funds. City Council Meeting Minutes Page 2 of 7 September 9, 2021 • Staff could make the grant process as easy as possible and provide technical assistance to non-profits who might not have the ability to administer a federal grant, but those groups would still have to have the internal capacity to account for the dollars. • Maximum indebtedness would likely be reached by the end of the biennium, so urban renewal area funding would not be available for studies and infrastructure for Phase 2 of the Boones Ferry Rd project. Funds might be available from the sale of the staging area. • Members of the ad hoc committee should not be potential applicants for the grant funds. A youth member of the Leadership Council should be added to the committee to provide their perspectives on helping families in the community. • Council liaisons to the ad hoc committee should be non-voting members because Council would ultimately be approving the grants. • Public schools received their own ARPA funding, so staff focused its recommendation on the City's mission to make sure children could get to and from school safely. • A cohesive corridor plan for McVey/South Shore would serve as a guide on how to best spend the money and to identify what could be done to resolve congestion and safety issues, among others matters. Certain less time-consuming improvements could be done sooner as a trade- off without re-doing the entire corridor. • Attention should be given to safe pathways for everyone in Lake Oswego, and a plan should be done to balance priorities for issues in other parts of the city. The McVey/Stafford project was difficult, but a plan would help illustrate that difficulty and perhaps could help leverage information for 1-205 and the Stafford triangle, as well as other projects. Councilor Mboup moved that the City Council: • Allocate $7.1 million in ARPA funds as qualified revenue replacement and direct staff to return to Council this fall with a workplan, timeline, and cost estimate for transportation projects; • Allocate $600,000 in ARPA funds for a grant program and authorize the creation of an ad-hoc committee to create the grant program and to recommend grant awards; and • Allocate $1.1 million in ARPA funds to fund a project to address the need for redundant power at the water treatment plant and river intake. Councilor Wendland seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Nguyen, Wendland, Verdick, Rapf, Mboup, and Manz voting `aye'. (7-0). 5.2 2021 Legislative Update Madison Thesing, Assistant to the City Manager, presented the Council Report providing a final recap of the legislative session.The bills signed into law that directly impacted City operations were highlighted along with the related Council goal as follows: • Safe and secure community. House Bills 3115 and 3124 both addressed homelessness. The City was in compliance and was able to enact regulations staff believed applied to city parks. The League of Oregon Cities (LOC) would provide additional guidance on topics such as noticing for camp removals. HB 2936 pertained to Racism Prevention in Policing and the City City Council Meeting Minutes Page 3 of 7 September 9, 2021 was already doing much of what was required, but staff would be reviewing the standards of conduct in the social networking policies pertaining to managing expression of speech in personal social media. Councilor Wendland suggested that the state laws and the City's ordinances pertaining to homelessness be published for the public's benefit in Hello LO or other means. Many people had questions on what they could do and on how the City was handling homelessness, and the information might be helpful to them. Business investment. Senate Bills 282 and 278, and HB 2966 did not have a direct impact on City operations, but did provide eviction protections and grace periods that would benefit the local economy and property tax base. Councilor Rapf stated the majority of the community was very concerned about the proliferation of homelessness and panhandling. He would like Council to think proactively on how to protect residents from harassment and how to protect properties and property values. Ms. Bennett suggested a study session on the topic of homeless camping. Panhandling was protected free speech and options to deal with it were limited. She recommended people donate to charities that help the homeless instead of giving to panhandlers. Diversity, Equity, Inclusion. HB 3055 increased the contract amount that could be awarded for certified emerging small businesses, and SB 420 allowed the City to adopt a resolution or ordinance that pertained to public benefit contracts. The bills had more of an administrative impact on the City rather than an operational one. Climate impacts. HB 2021 aligned with the City's climate action goals and might provide funding, policy options, and programs in the future. HB 2935 was to change the statewide bag ban, and staff would make sure the City's definition aligned with the State's. SB 582, recycling modernization, would go into effect on January 1st, and staff would work with Republic Services on compliance. Councilor Mboup received confirmation that the timeline for 100 percent clean energy was 80 percent by 2030 and 100 percent by 2050. He asked for more information about the bag ban definition. Ms. Thesing clarified the definition regarded the type and use of recyclable bags statewide. City operations. HB 2560 required an electronic or virtual option for public agency public meeting participation. Staff would formalize the City's current process in a policy and ensure it was followed by all the other boards and commissions. Staff interpreted the bill to mean that, post-COVID, phone and email could be applied to the electronic option. HB 2344 required labeling wipes products that were not flushable which was a financially-positive move for wastewater systems. HB 3103 provided access to critical stored water to which the City had rights without having to buy additional water rights. Parks. HB 5006 would provide funding for the Hillsdale to Lake Oswego Trail promoted by Senator Wagner. City Council Meeting Minutes Page 4 of 7 September 9, 2021 Transportation. HB 2180 increased electric vehicle (EV)capacity through charging stations in new construction and would require a change in the City's Building Code. On a related matter, she noted Ms. Rooney would provide updates and engage Council in the coming months on the work taking place at the State with the 1-205 tolling project. Quality of life. HB 2006 would provide a fast-track administrative process in the City for addressing requests for siting an emergency shelter when an emergency was underway. HB 2008 provided a preemption for local zoning to allow affordable housing in certain locations. Religiously-owned shelter siting would be approved by the City, which could prevent some land use appeals thereby streamlining the process, but the trade-off was that Council would not be hearing those appeals. HB 2918, surplus land reporting, would have just an administrative impact through annual reports to the state, though the City had no surplus land. Mayor Buck noted Senator Wagner would attend an upcoming Council meeting and recommended Councilors save further questions for that meeting. 6. CONSENT AGENDA— Full Council 6.1 Findings, Conclusions and Order for AP 21-02/LU 20-0032, appeal of the Development Review Commission's Approval of Residential Infill Design (RID) variances in order to construct an addition onto an existing single-family dwelling at 17760 Lake Haven Drive. 6.2 Approval of Meeting Minutes June 22, 2021, Draft Special Meeting Minutes July 6, 2021, Draft Regular Meeting Minutes July 20, 2021, Draft Regular Meeting Minutes 6.3 Permanent Right of Way Easement for Road Purposes Councilor Manz moved to adopt the Consent Agenda. Councilor Verdick seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Nguyen, Wendland, Verdick, Rapf, Mboup, and Manz voting `aye'. (7-0) 7. ITEMS REMOVED FROM THE CONSENT AGENDA No items were removed from the Consent Agenda. 8. CONSENT AGENDA— Councilors Only 8.1 Resolution 21-31, Approving the Appointment to the Planning Commission Councilor Wendland moved to adopt Resolution 21-31. Councilor Manz seconded the motion. City Council Meeting Minutes Page 5 of 7 September 9, 2021 A voice vote was held, and the motion passed, with Councilors Nguyen, Wendland, Verdick, Rapf, Mboup, and Manz voting `aye'. (6-0) 9. INFORMATION FROM COUNCIL Mayor Buck reported on the houselessness discussion at the Metro Policy Advisory Committee (MPAC) meeting. The implementation of the Supportive Housing Services Measure continued to be an issue in Clackamas County. Washington and Multnomah Counties had funded the program's implementation. Residents were paying for the program in Clackamas County, but it had not been implemented. Such programs would help houseless individuals get out of the transient lifestyle and into regular life and, until they were funded, the problems would get worse. The County could also see the impacts of a workforce shortage because of the delay in implementation. The Regional Mobility Plan was also discussed, and he had learned that 66 percent of people who live in Clackamas County leave the county every day for work. Tri-Met provided an update on increasing several service routes in Lake Oswego and seemed open to more feedback. Tri-Met was also working on the electrification of its bus fleet and modernization of bus shelters, etc. 10. REPORTS OF OFFICERS City Manager Bennett reported staff was working on a presentation to Council regarding the latest from ODOT on the 1-205 tolling project. Staff had heard repeatedly about only two alternatives: No tolling, or tolling from the east side of Exit 3 across the bridge to Exit 10 or 11. It raised significant for concern about traffic diversion in Lake Oswego and nearby cities. Mayor Buck noted discussion had taken place in multiple meetings with ODOT about the concerns. The same comments were heard during ODOT's public engagement activities. Councilor Wendland expressed consternation that tolling was a consideration as he had heard only one bureaucrat from another city express a need for it. He supported staff in drafting a letter to ODOT and follow-up with additional letters. Ms. Bennett noted the argument in favor was that the legislation that allocated funding to 1-205 required consideration of tolling, and that tolls were required to pay for a portion of the infrastructure. It was frustrating that jurisdictions were consistent and offered alternatives that should be evaluated as part of the study, but were repeatedly rejected. She believed it was time to consider who else to reach out to, because it appeared ODOT staff believed their hands were tied. She would confirm the date of Senator Wagner's attendance at a Council meeting. 11. ADJOURNMENT Mayor Buck adjourned the meeting at 6:55 pm. City Council Meeting Minutes Page 6 of 7 September 9, 2021 Respectfully submitted, Kari Linder, City Recorder Approved by the City Council on Joseph M. Buck, Mayor City Council Meeting Minutes Page 7 of 7 September 9, 2021