Approved Minutes - 2022-02-15 rrA CITY COUNCIL REGULAR MEETING
MINUTES
February 15, 2022
OREGO'r\
1. CALL TO ORDER
Mayor Buck called the regular City Council meeting to order at 3:01 p.m. on February 15,
2022. The meeting was held both virtually via video conferencing and in-person in the
City Council Chamber at City Hall, 380 A Avenue.
2. ROLL CALL
Present: Mayor Buck, Councilors Wendland, Nguyen, Verdick, Rapf, Manz, and
Mboup
Staff Present: Martha Bennett, City Manager; Jason Loos, City Attorney; Erik Olson,
Senior Planner; Scot Siegel, Community Development Director; Anthony
Hooper, Deputy City Manager; Katy Kerklaan, Citizen Information
Specialist; Kari Linder, City Recorder; Ivan Anderholm, Parks and
Recreation Director
Others Present: Lee Ward, Senior Project Manager with EPCOR via video conferencing
3. PLEDGE OF ALLEGIANCE
Mayor Buck led the Council in the Pledge of Allegiance.
4. PUBLIC COMMENT
• Jay Hamachek, Dorothy Atwood, and Lisa Adatto
Ms. Adatto, Ms. Atwood, and Mr. Hamachek, of the Lake Oswego Sustainability Network
(LOSN), briefly reviewed via PowerPoint the LOSN's objectives and updated Council on the
Network's newly adopted focus and the work that lead to LOSN's four recommendations for the
wastewater treatment project, which included: maximizing solar resources at the new treatment
plant and future Foothills development; reserving three acres of the existing City of Portland
wastewater treatment plant for future treatment options; synergize the wastewater treatment
project with the Foothills development; and engage in a third-party sustainability review to address
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issues like water reuse options, future regulatory issues, and incorporating realistic performance
metrics for the new plant and EPCOR.
• Carole Ockert
Ms. Ockert, Chair, Neighborhood Chairs Committee, noted several committees she had
served on, including the Middle Housing Committee created by City Council. In addition to the
Middle Housing regulations discussed in the Staff report, she encouraged Council to consider
three key additions allowed by the State, which were summarized in a handout she provided to
Council:
• Choose to allow triplexes, quadplexes, townhomes, or cottage clusters only on lots that
meet the minimum zone size, which was the right choice for maintaining neighborhood
character and appropriately siting middle housing in the city's neighborhoods.
• Set a minimum floor area for cottage cluster units below 900 sq. ft., Ms. Ockert suggested
500 sq. ft.
• Set 8 units as the maximum number of units in a cottage cluster, which would fit well in
Lake Oswego's predominately built out, infill community.
• Staff had confirmed the State allowed these recommended options for cities, and while
not included in the Staff report, she expected them to be presented in Staff's oral
presentation. Adding that, tonight's work session was the opportunity to provide direction
on the key Middle Housing Code options to be incorporated into draft Code language.
4.1 PRIOR PUBLIC COMMENT FOLLOW-UP
No prior public comment follow-up was provided.
5. STUDY SESSIONS
5. 1 Middle Housing Code Amendments - House Bill 2001 and Senate Bill 458
Eric Olson, Senior Planner, updated on the progress made on the proposed Middle Housing
Code Amendments via PowerPoint since Staff's last meeting with Council in November when
Council directed Planning Commission and Staff to prepare Development code amendments to
meet minimum compliance provisions, as well as amendments in compliance with the expedited
Middle Housing Land Division Requirements of Senate Bill 458 (SB 458). Mr. Olson reported on
the virtual community forum held in early December that included a survey which received about
100 responses that were summarized and attached to the Staff report. Mr. Olson highlighted the
Code elements addressed at each of the four Planning Commission work sessions, noting a draft
of the amendments was expected to be released to the public on March 8th, followed by a second
community forum planned for March 22n 1, and upcoming hearings at Planning Commission and
City Council in April and May, respectively. Mr. Olson summarized the proposed amendments to
the Development Code needed for compliance with House Bill 2001 (HB 2001) and Senate Bill
458 (SB 458), which included changes to the definitions, applicability within use zones and
density.
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Mr. Olson pointed out that the Density PowerPoint slide was a bit inaccurate (page 8 of the
presentation), stating that with townhouses, the City was allowed to limit the density to four times
the minimum lot size of single-family dwellings in the zone.
Councilor Wendland asked for a specific example of what would be permitted on a lot and what
was meant by four times the density. Mr. Olson replied a single-family residence, duplex, triplex,
quadplex, a townhouse with up to four units, or a cottage cluster development with a minimum of
five units as long as the minimum lot size was met. Density referred to units per lot, not floor area.
Any development would retain the same cubic sq. ft. currently permitted but the square footage
would be divided between dwelling units; essentially adding density without expanding the
existing building envelope. Minimum lot size was the term typically used in the Planning
Department versus density. On lots meeting the minimum lot size, a single-family dwelling and
ADU could be built, and under middle housing, four dwelling units were allowed per lot for
townhouses specifically.
Councilor Nguyen asked for additional clarification regarding the number of units permitted per
lot in specific zones. Mr. Olson clarified a lot in an R-5 zone could have one structure with four
attached units; however there were exceptions. Regulations currently permit a single-family
dwelling with an ADU on a 10,000 sq. ft. lot in an R10. Under Middle Housing proposal, up to four
townhouse units would be permitted on the same lot. He clarified density regarded the number of
dwelling units and did not account for garages, which were a floor area standard and a separate
calculation.
Councilor Manz understood HOAs would be excluded from middle housing land use laws. Mr.
Olson replied that was correct, but some important technical details were involved. The City did
not have purview over HOAs or private covenants and agreements that might prevent the
development of Middle Housing and would not specifically exempt such agreements from Middle
Housing since modifications could occur in the future allowing Middle Housing.
Mr. Olson continued the presentation describing the lot sizes on which Middle Housing would be
allowed under the proposal. As Ms. Ockert suggested, applying a larger lot concept to Middle
Housing was recommended, as the State allowed the City to apply a larger minimum lot size for
middle housing types. The large lot option preferred by the Commission and the public according
to the survey. He confirmed 7,000 sq. ft. was the required minimum, larger minimums could not
be required of larger middle housing types.
Mayor Buck understood triplexes and quadplexes were currently permitted in R-3 zones. Mr.
Olson responded no, noting a three-unit multi-family structure could be allowed under a minor
development review process, but not in the same way as a middle housing type today, so a
different process was required. Community Development Director, Scot Siegel explained
separating the use and what was permitted outright might be helpful when discussing procedures.
The State essentially provides a safe harbor, for example, allowing a minimum lot size for Middle
Housing larger than the City's existing minimum lot size in some zones. Both the Planning
Commission and the public wanted to provide more space on lots with Middle Housing. Mr. Olson
noted Staff considered two options: apply the same minimum lot size used for single-family or use
the larger lot size concept. Mayor Buck asked whether larger lot sizes existed in these zones.
Mr. Olson responded yes they do, adding many larger lots would need to be divided to get to the
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minimum lot size target in a given district. If already divided, it would more commonly be in the
3,000 sq. ft. range. Director Siegel added that when making its recommendations, the Planning
Commission considered the minimum standards for compliance under the State rules, which the
Commission interpreted to mean what would afford the greatest preservation of neighborhood
character. However, with fewer lots meeting the minimum lot size there were fewer opportunities
for Middle Housing. The Planning Commission understood the need to balance compliance with
maintaining neighborhood pattern or character. Mr. Olson noted Staffs recommendations were
based on the minimum compliance assumption, which would mandate allowing only single-family
and duplexes on substandard lots. That concept would apply across all zones.
Mr. Olson continued his presentation, addressing proposed amendments related to review
procedures and development processes, noting middle housing development would be classified
as a ministerial decision. He clarified cottage cluster development had to be treated the same as
single-family housing. Theoretically, the City could change its process for single-family housing,
so all housing types would go through a minor development, but Staff had not been given any
such direction.
Director Siegel added that since the State allows the City to apply the same rules for non-
conforming single-family dwellings to Middle Housing, Staff was examining standards for non-
conforming development and the definition of demolition because the issues were interrelated.
There would be a separate study session on that topic in the future.
Mr. Olson continued the presentation reviewing the background on the requirements for minor or
ministerial developments and the impacts on the City's ability to apply conditioning authority. Staff
proposed new, clear and objective mitigation requirements for all ministerial applications, allowing
the City to determine appropriate mitigation for development. An alternative path would be offered
for those wishing to use a discretionary process to determine appropriate mitigation.
Councilor Manz confirmed the City would have some leeway on the proportionality aspects of
the improvements that might be needed. Mr. Olson added that currently, the City had the authority
under State law to apply mitigation to single-family dwellings, but just did not apply it. Director
Siegel explained the City did not apply mitigation to single-family dwellings because it was
presumed that the lots went through a land division process where public improvement standards
were applied. Middle Housing would increase the theoretical density, giving the City the nexus for
having that authority. Very clear and prescribed standards would be needed. On an individual lot
basis, the City might have standards requiring the dedication of additional right-of-way, with the
standards scaling up for a quadplex or cottage cluster. There were a few examples of
development where the City would have benefitted from additional right-of-way, so Staff was
looking to adopt mitigation requirements for all ministerial applications as a process improvement
in the current system and to meet State requirements. Mr. Olson clarified the new standards
would be included in the draft Code amendments for public review and then adopted into the
Code.
Mayor Buck asked why the proposal precluded more dense development, like R-2 and R-3 lots,
from Middle Housing when those areas were designed for density and typically more walkable,
and close to town centers and transportation. Mr. Olson explained the logic was that larger lots
were more appropriate for more units and to limit the applicability. Mayor Buck noted homes on
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smaller lots were huge, so he did not see much difference between a triplex or 5,000 sq. ft. single-
family home on a lot. He would be open to expanding applicability especially in parts of town
designed for dense use; otherwise the City was just precluding the use in areas where best suited
for Middle Housing. Director Siegel agreed that was a good policy question. Staff's proposals
followed the minimum compliance directive, as well as the language in State regulations requiring
Middle Housing in zones that were primarily single-family detached. Additional policy changes
could be explored in the next phase of housing work regarding HB2003. Ms. Bennett clarified
Middle Housing types would be allowed in R-2 and R-3 zones, but they would not be eligible for
ministerial review, so a land use process would be required which would allow for neighborhood
involvement and conversation about conditions of approval. Director Siegel noted Middle
Housing was permitted outright in R-2 and R-3 zones; it was not a conditional use, but at a higher
standard than what the State would allow to be imposed.
Mayor Buck expressed concern about the conditions of approval becoming a barrier to non-
single-family developments. Mr. Olson replied that the requirements would be proportional and
also clear and objective. The City would have to treat things similarly based on intensity of use,
for example. In many ways, the proposal intended to respond to concerns that the City had not
updated its citywide infrastructure planning to accommodate Middle Housing. City Engineer, Erica
Rooney recommended handling the matter on an application by application basis as opposed to
the larger assumption that all lots would develop as quadplexes, which staff perceives to be
unlikely. Staff agreed that the new process could be seen as a disincentive in some way.
Mr. Olson continued his presentation, describing how the dimensional standards discussed with
the Planning Commission would apply to Middle Housing. The recommendation was to apply
existing single-family standards to duplexes, triplexes, and quadplexes. A new term, townhouse
project, would be introduced to Code allowing the City to regulate a townhouse project in the
same way other Middle Housing structures were regulated. The City did not have as much
discretion with cottage cluster dimensional standards, and Staff proposed adopting the minimum
compliance track.
Mayor Buck asked what size lot would be needed to develop a cottage cluster of five with the
maximum floor area of 900 sq. ft. Mr. Olson replied a number of other factors came into play.
The Dimensional Standards for Cottage Clusters slide showed a six-unit cottage cluster on a
12,000 sq. ft. lot, which would be in the R-10 district. The State determined a 7,000 sq. ft. lot size
was the minimum that could fit a cottage cluster, and buildings could be smaller than 900 sq. ft.
Director Siegel added the math for six units on a 12,000 sq. ft. lot would be appropriate
considering a maximum 30 percent lot coverage in that zone based on height, adding that would
be an absolute minimum but parking and other circulation would also have to fit on the lot. He
explained the maximum lot coverage was a sliding scale per zone based on height. Structures
less than a certain height were afforded more lot coverage,which decreased as the building height
increased. The maximum lot coverage and maximum floor area ratio, which was inclusive of
garages, along with height and setbacks would remain applicable to Middle Housing. Mr. Olson
clarified that floor area and lot coverage standards could not be applied to a cottage cluster site.
Councilor Wendland understood cottage clusters could cover 90 percent of the lot and asked if
setbacks were included. He was concerned about the amount of water runoff. Mr. Olson replied
there were 10 ft. setbacks, as well as a minimum courtyard requirement, parking with shared
access and screening, etc. so getting to 90 percent coverage would be difficult. Stormwater would
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still need to be managed onsite. Impervious surface limitations had been discussed with the
Middle Housing Code Advisory Committee and requirements to manage stormwater onsite would
remain in place, but further amendments did not move forward because they were not required
to be adopted by the June deadline. Councilor Wendland asked if the City could use impervious
surface limitations as a tool to limit lot coverage. Mr. Olson replied that generally, the City would
have some flexibility imposing those limitations, however, the specifics of how to apply those
limitations to cottage clusters required a conversation with DLCD. Director Siegel said input
would also be needed from the City's Engineering Department, given the structural requirements
and infrastructure for pervious surfaces, which increased costs.
Councilor Verdick asked about any maximum heights and differing setback planes for cottage
clusters. Mr. Olson replied 25 ft. was the maximum height for a cottage cluster unit, which was
two stories. The City could not impose a lower maximum height and could not change the 10-ft
front or rear setback. The DLCD did clarify the City's existing setback planes would apply to
cottage clusters, preventing a 25 ft. wall right at the setback line. Councilor Verdick noted the
minimum requirement for the courtyard distance was 15 ft., so cottage cluster sites could become
extremely dense. Mr. Olson reminded other requirements would limit work together to limit
building area but agreed cottage clusters did not have lot coverage requirements and could
become quite dense. The City envisioned following the minimum compliance track to set a
maximum of eight for cottage clusters, which Staff proposed. Councilor Verdick said she would
like a maximum number. She was also concerned how the proposals would impact trees, so
ensuring the City had good Tree and Building Codes that worked together would be even more
critical. Preserving mature trees seemed more difficult with a cottage cluster. Mr. Olson agreed
detached structures had a bit more flexibility to avoid impacting trees. Applying the City's
discretionary Chapter 55 Tree Code with its Significant Tree Alternative Criteria could provide
more flexibility for a cottage cluster to avoid trees than other Middle Housing types.
Councilor Verdick asked if the setbacks were the same on corner lots, citing safety
concerns.-Director Siegel noted the setbacks on corner lots would be controlled by sight-distance
requirements at intersections or driveway approaches, so the 10 ft. setback might not be allowed,
especially with parking and screening requirements.
Councilor Wendland noted the 10 ft. front yard setback for cottage clusters versus 25 ft. setback
for surrounding housing types would make cottage clusters out of character in neighborhoods.
Mr. Olson noted while cottage cluster units had to be oriented toward a shared common
courtyard,frontage and access requirements could help prevent a line of the units oriented toward
the street with the 10 ft. setback, but such a design was possible. The flexible setback for cottage
clusters was intended to redistribute the front setback area into a more internal focused courtyard,
to allow more open space in the site. The City was required to allow cottage clusters in
neighborhoods where they might not fit in aesthetically. Director Siegel added the cottages could
have a very high level of finish and detailing, exceeding the appearances of neighboring houses.
Mr. Olson added cottage clusters had received the most support out of Middle Housing types.
Councilor Verdick stated the setback mandates by the State were not ideal. Page 13 of the Staff
report stated the State's maximum building footprint was 900 sq. ft., and she confirmed with Staff
that the City could set a minimum building footprint. Director Siegel noted the footprint and floor
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area were separate definitions and suggested the City explore options about setting a minimum
floor area, which could address concerns about tiny homes.
Councilor Verdick understood building up made sense, but the housing needs of seniors and
those with disabilities were not being addressed. The City should encourage more accessible
housing types that were one level or had main level living with larger bathrooms, hallways and
living space. Mr. Olson noted that Staff had considered ways to encourage 1.5 story options, but
there was not much the City could do given the limited options.
Councilor Rapf stated that he understood the City was being forced to implement Middle Housing
and noted there maybe unintended consequences, including creating the opportunity to cut down
more trees, exacerbating parking issues, and increasing land values. Possibly attracting more
developers to build more expensive homes, which would not serve the intended purpose of HB
2001. The entire HB2001 process prohibited the public, community, and neighborhood
associations from having a voice in decisions, which was the scariest thing. The City had until
June, so he encouraged Staff and Council to take more time to think about worst-case scenarios
and unintended consequences as well as more creative solutions to make Middle Housing right
for Lake Oswego, including seniors.
Councilor Nguyen asked how ownership would be handled for individual middle housing units
placed on one lot originally planned for a single homeowner. Mr. Olson replied that was up to the
developer. If their proposal complied as a parent lot, it would be allowed under a land division.
The City must allow cottage clusters to be divided and sold under SB 458.A variety of agreements
could be used to provide flexibility beyond condominiums. Director Siegel added condominiums
were a current example of how the ownership would work. Cottage cluster unit ownership would
be more straightforward as they could be divided fee simple because the land went with them,
but without the additional costs or overhead of a condominium association. Councilor Nguyen
understood in neighborhoods with HOAs or CC&Rs, only single-family homes could be
developed, so no Middle Housing could be placed on those lots. Having a map of these lots
showing which could not have Middle Housing would be helpful. Director Siegel replied some
HOAs or CC&Rs within the neighborhoods had long been forgotten about and projecting which
areas would be ineligible for Middle Housing given the current CC&Rs would require a legal
analysis, which was not feasible for the City and outside its role. Prospective developers would
have to contend with the many variables involved with the feasibility of development.
Councilor Nguyen noted the map looked alarming because it seemed like every lot within the
green areas could potentially be a duplex, triplex or quadplex, which was not the case; some lots
would automatically be precluded due to HOAs and CC&Rs. Director Siegel agreed, adding a
zoning map may have been more useful. Mr. Olson noted private agreements were subject to
change and were not within the City's purview. He would be uncomfortable saying some areas
would not see Middle Housing when it could be possible. It was good to plan for the worst-case
scenario.
Councilor Mboup asked if SDCs would be required for Middle Housing, if there was a maximum
number of units allowed per cottage cluster, and what setbacks were required for quadplexes and
triplexes. Staff confirmed SDCs were required for all building permits, except for affordable
housing as Council had redefined it. Mr. Olson stated under minimum compliance, the City had
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the option to set a maximum of eight units within a cottage cluster, which Staff proposed.
Quadplexes and triplexes would be subject to the same setback requirements as single-family
housing, which would vary by zone, but generally, it would be greater than 10 ft.
Councilor Mboup said he trusted City Staff's proposals because the City had to comply with
State law. If people could build units that made housing more expensive than expected, the State
mandates for affordable housing would be negated. People should be able to afford clusters, but
knowing they could be deeded, made them no longer affordable, so the law was no help.
Councilor Verdick clarified the law was designed to promote Middle Housing, not affordable
housing. The law regarded density, not affordability. Director Siegel added the law was about
increasing the housing supply. The cost per square foot of cottage clusters would be higher than
a larger volume home. Some townhomes developed in the city were more expensive than
detached single-family homes, while some smaller units, primarily condominiums in certain
neighborhoods, were not more economical.
Councilor Mboup agreed but questioned why the City would not try to find ways to prevent
people from building all these cottage clusters in neighborhoods if it would not allow people to
acquire a home, but just build capacity for others to make more money and to totally change the
neighborhood. He asked if cottage clusters could be located within blocks of one another in a
residential neighborhood or was that determined by the availability of land. Mr. Olson stated
cottage clusters had a minimum of five and maximum of eight units per lot if they met the minimum
lot size of 7,000 sq. ft. under Staff's proposal. The cluster could be built on any site meeting the
minimum square footage requirements. With regard to affordability, Staff received some
recommendations from the Middle Housing Code Advisory Committee to explore incentives to
encourage affordability and accessibility of Middle Housing units, but Staff was asked to postpone
further discussion until all the required amendments were adopted. Staff intended to investigate
incentives later in the year when considering the Housing Needs Analysis and housing capacity
for HB2003 and the City's required Housing Production Strategy, so more recommendations were
coming.
Mr. Olson clarified for Councilor Manz that property owners annexing into the city and requiring
City services would have to adhere to Lake Oswego building standards. Director Siegel noted
the City's urban growth management agreement with the County required a certain level of
development to annex and connect to City services. Mr. Olson added that the annexation process
would not change for Middle Housing development.
Mr. Olson continued the presentation, reviewing the areas of flexibility available with cottage
clusters provided by the State. He explained the intent behind Staff's recommendations which
included prior input from Council. Staff recommended requiring a minimum of five units for all
cottage clusters and a maximum average size for cottage cluster units, generally making the
combined floor area of all the units similar to the floor area standard for a single-family structure.
The maximum average unit size in medium and low-density districts should be 1,000 sq. ft. to
maintain consistency. Lower density districts would have a larger maximum average unit size of
1,200 sq. ft. to account for the larger size of those lots while also keeping the cumulative floor
area as close as possible to single-family maximums.
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Mayor Buck stated the trade-offs between the 4,000 sq. ft. and 5,000 sq. ft. lots have been
explained, so more dense cottage clusters could be developed or there could more flexibility
within the cluster sphere to create units more livable for seniors. The requirements were very
different than those for other Middle Housing types. He confirmed the 1,000 sq. ft. would be the
average size per dwelling unit, which was pretty small.
Councilor Wendland said he liked Staff's reasoning behind the recommendations, as well as the
five unit minimum, adding he would require an eight unit maximum. He verified the total floor area
of the cottage cluster units combined would mirror what was allowed on the lot if a single-family
house were built. Mr. Olson noted the tables included in the Planning Commission Staff report
walked through how the calculations worked in more detail.
Councilor Verdick said she appreciated Staff's thought process, adding she leaned toward the
five unit minimum and eight unit maximum as well. She noted that the square footage would be
an average, so some units could be smaller and some larger, which would allow for variety. Mr.
Olson noted the diversity of housing was a goal of HB2001 and Staff did not want cookie-cutter
looking cottage cluster units.
Councilor Nguyen referenced tiny homes and asked if any restrictions would be proposed on
manufactured or prefabricated structures, and if cottage clusters could potentially be five
manufactured homes. Ms. Bennett stated restricting manufactured or prefabricated structures
was not allowed under State law, though the City did not have to allow them to be on wheels as
many tiny homes were. The State prohibited distinguishing how a house was built. She did not
see a market for manufactured or prefabricated housing, but new manufacturing processes meant
such housing might be indistinguishable from traditional housing. Director Siegel added it would
be difficult for a conventional manufactured home to meet the orientation standards of a cottage
cluster, but many types of modular and prefabricated housing were available now.
Mr. Olson continued his presentation, noting Staff was directed to apply most existing single-
family design standards to new Middle Housing. The biggest concern identified in the survey last
year was the prominence of garages. He highlighted the existing standards and described the
proposed amendments for driveway and garage standards, which would provide flexibility to allow
for garages on townhouse lots and also limit the negative visual impact of garages.
Mr. Olson clarified several questions from Councilor Wendland about garage designs for
quadplexes stating, an accessory garage would be allowed, but it would add to the lot coverage.
Restrictions existed on the size of accessory garages, but the City would not require any
configuration. The proposed standards addressed only front-facing garages; side- or alley-facing
garages would not have to comply with the proposed standards. A quadplex could have four off-
street parking spaces; parking did not necessarily have to be enclosed. The required parking
could not be within the setback, so no parking could be in front of the house.
Councilor Wendland explained he was searching for holes that might create oddities in the
neighborhood. The proposed formulas followed the garage standards for a single-family house,
so even four garages or spaces must conform with the neighborhood. Mr. Olson clarified the
proposed standards would apply to single-family homes as well, which enabled the City to require
them of new Middle Housing. If the garage took up a larger percentage of the front facade, the
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garage design standards were much more stringent, which was better than the existing standards.
Director Siegel clarified "more stringent" meant the standards would be applied to lots less than
50 ft. wide. Currently, the City did not have the same set of standards for narrower lots.
Councilor Verdick confirmed on lots 50-ft wide or less, up to 75 percent of the width could be
driveway. Mr. Olson noted that currently, the Code allowed 100 percent to be driveway because
lots less than 50 ft. were exempted from all garage and driveway standards. Councilor Verdick
liked the proposed standards, stating they seemed to be an improvement.
Mr. Olson continued the presentation, explaining the City's current design standards could be
applied for cottage clusters, but Staff proposed incorporating the model code design standards,
which exceeded the City's standards and were specific to cottage clusters. He concluded by
reviewing the requirements of Senate Bill 458 regarding expedited Middle Housing land divisions
and land division procedures and the differences in the City's existing required processes. He
asked City Council for any additional input for the public hearing.
Mayor Buck thanked Mr. Olson for the presentation. He valued different housing types and was
not concerned about whether homes adjacent or within a neighborhood looked similar. He liked
variety. The Task Force Advisory Committee and Planning Commission did a good job in thinking
how Middle Housing could cohesively integrate into the neighborhoods. A benefit of Middle
Housing was bringing in different types of housing. Embracing different housing types would allow
seniors to age in place, future generations to live more sustainably, and could set Lake Oswego
up as the community of the future. He wanted to be sure the priority was not setting up
unnecessary barriers, as a lot of existing financial inertia would already make building Middle
Housing types challenging. Concerns about every lot in the city having a Middle Housing type
unity was not rational. The City should welcome these housing types, which should look good,
and not place additional barriers to Middle Housing development.
Councilor Wendland agreed with many of the mayor's comments, adding he believed
economically, getting Middle Housing in Lake Oswego would be difficult. He remained concerned
that Middle Housing could disrupt the character and flavor of Lake Oswego's neighborhoods,
which was the balance he was seeking. He concurred with Ms. Ockert's suggestions about the
500 sq. ft. minimum floor area for cottage clusters, as well as the zone standard sizes discussed
by Staff and the five minimum and eight maximum units for cottage clusters. He asked if Middle
Housing could potentially become multi-purpose housing or a boardinghouse-type development.
He recalled Council was not supportive of anything in that direction. Director Siegel replied such
facilities involved a different type of land use and were not part of tonight's consideration. Mr.
Olson added that housing might be a consideration later this year when Staff begins discussion
on HB2003 and different housing production strategies.
Director Siegel thanked Council and the City Manager for their support and appointing the Middle
Housing Advisory Committee, which did a lot of the heavy lifting in developing the concepts and
enabling the Planning Commission to process Middle Housing more efficiently.
Councilor Manz added she appreciated the balanced view the Planning Commission and Middle
Housing Task Force brought to the floor. She complimented Mr. Olson for his clear explanations
of complex topics.
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Mayor Buck called for a brief recess at 5:02 p.m. and reconvened the meeting at 5:14 p.m.
5.2 Wastewater Treatment Project Update.
Anthony Hooper, Deputy City Manager, noted the short video he decided not to show due to
time was available on the City's website as an introduction to the project.
Katy Kerklaan, Citizen Information Specialist, presented via PowerPoint the City's robust
public involvement outreach plan that was conducted to build awareness about the Wastewater
Treatment Project, communicate its benefits, gather feedback, and maintain support for building
a new wastewater treatment facility. She noted the events and communication methods used as
well as the varying levels of information provided based on stakeholder and audience interest
levels. She highlighted the project benefits and messaging for the project, which guided the
development of more detailed FAQs on the project's dedicated website. A key goal was to provide
meaningful opportunities for the community to provide input on the project throughout the design
process. She reviewed the focus and key takeaways from the October community information
session and the required land use neighborhood meeting held earlier in February, both held
virtually. The top project values included producing clean water, increasing resiliency, providing
energy efficiency, as well as affordable wastewater service to customers and being a good
neighbor. Participants at neighborhood meeting wanted to learn more about site development,
environment and sustainability, and stormwater drainage specific to land use and design
elements. A formal development review application would be submitted soon. Upcoming public
involvement opportunities were aligned with key milestones in the design process, such as an
online open house this spring to coincide with the 60 percent design and a public open house this
fall at the final design phase. Staff would also attend the local farmers market to reach others in
the community and share information on the project. Target meetings were also held to discuss
specific sustainability and climate related items. In partnership with Sustainability Program
Manager,Amanda Watson, Staff held four meetings with the Lake Oswego Sustainability Network
(LOSN) and five with Energy Trust of Oregon to explore energy savings and how sustainability
could be incorporated into the treatment plant. Upcoming meetings included those with the
Sustainability Advisory Board and continued meetings with a variety of special interest groups
including the Chamber of Commerce, Historic Resources Advisory Board, and neighborhood
associations.
Councilor Manz asked if Staff had metrics on the different forms of communication the City sent
out and the kind of responses received. Ms. Kerklaan replied yes, noting meeting participants
were asked how they heard about meetings and how they would like to receive communications
in the future.The recent community survey also asked participants how they received information,
all of which could be used for other purposes in the future, especially if the responses trended
together.
Mr. Hooper continued the PowerPoint presentation, displaying the project site's location and
surrounding features in the Foothills area. He noted the proposed design would include LOSN's
recommendation to maximize solar onsite. LOSN's suggestions to reserve three acres of land
and update the Foothills Plan were outside the scope of the current project but would be discussed
in the fall. Only eight acres of the 12-acre City of Portland site were usable as they were outside
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of Sensitive Lands, and 2.3 acres hidden on the slide behind the public storage facility owned by
Portland were also Sensitive Land. He presented the proposed Wastewater Treatment Project
via PowerPoint with the following key additional comments:
• He clarified the site outlined in yellow did not include the three acres LOSN wanted reserved.
Staff had discussed potential uses for the land, including doing biosolids on site. The City had
an agreement with the City of Portland to treat biosolids at Portland's Columbia facility, which
would continue. On-site treatment would require 50-ft silos of lime, which would not fit the
neighborhood, as well as the potential for odor. Further discussion regarding on-site biosolid
treatment and land usage would be addressed in the fall and Staff would provide information
at that time to inform the discussion.
• The project began in 2018 and was being done in partnership with the City of Portland.
Building a new wastewater treatment facility was proposed instead of upgrading the current
plant, and a yes/no decision would be made by City Council on September 20, 2022.
• The projected wastewater rates were the same for upgrading the existing facility or
constructing a new facility. A 3.9 percent increase was projected in the wastewater fee per
year which included all the items for the wastewater system. The increase was determined by
a 2020 FCS study and remained the same at the 30 percent design phase. The annual
affordability cap slide reflected a project agreement on the combined rate Portland and Lake
Oswego pay to EPCOR per year, and those amounts fit under the City's rate structure.
• Additional utility, stormwater, and wastewater work would be required, as well as creating an
access to maintain the pump station for the City of Portland. All processes were programmed
on the site using AquaNereda for the technology, a biological granular mass process using
sequence batch reacting. A hydro works building was also included to remove grit and a filter
UV building like a tertiary treatment.
• The proposed design included odor control units within the building to control smell up to 99
percent at the fence level, which would be in a massive improvement compared to the odors
currently detected. The existing plant was open air making odor control difficult. The proposed
facility was in an enclosed building and mitigating odor to the maximum degree possible was
a high priority.
• Solar panels were proposed on the roof of the administrative building. Staff was working with
Energy Trust to do a feasibility study on solar panels and intended to maximize the space of
the treatment facility roof as well.
• LSON had also suggested engaging in a third-party sustainability review. Staff worked
with Carollo Engineers and two branches of Energy Trust to ensure the project was
constructed in an energy-efficient way. The City received grants for a portion of the project.
The project would go before the Sustainability Advisory Board again on Monday for further
discussion.
• The project's architectural features were described. The administrative building's design was
borrowed from the neighborhood, including William Stafford stone columns, wood elements,
and metal panels as a nod to the foundry building. The design included 22 parking spots for
nine employees. Public improvements included a sidewalk on Foothill Road and stormwater
improvements. The 6,300 sq. ft. floorplan included a conference room, bathrooms, locker
rooms with showers, offices, lunchroom, and a lab for testing.
• The City wanted the site to remain like an open field with no fencing; however, constructing
a driveway around the facility was necessary to accommodate large trucks. While the
landscaping and colors in the presentation were subject to change, the final landscape
design would be presented to Council and include sustainable, native Oregon plants.
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• Stormwater gathered at the plant would be used for processes inside the site as well as
for landscaping. A separate project bringing reclaimed rainwater to Foothills Park or
George Rogers Park is being scoped and would be presented to Council for a decision
over the summer.
• The facility frontage on Foothill Road would feature stone columns in reference to the iron
furnace at George Rogers Park. Staff spoke to the City's historian about ways to
incorporate the history of the area within the project, possibly with an interactive exhibit on
iron and other relevant history of the Foothills.
• The proposed on-site generator was a necessary component of project. The generator
would be sized to supply the full amount of electricity needed to run the plant. Additional
information was included in the submitted reports.
Comments and questions from Council addressed during the presentation were as follows:
Mayor Buck stated Staff's report noted the cap increased by about $11 million, however the
remodel costs would have gone up as well. Mr. Hooper agreed, adding the cost for Portland had
not been adjusted up at all and the $11.3 million could decrease after value engineering. The
rates matched what Portland and Lake Oswego would pay for 17 years, after which there was
some flexibility. The $11.3 million over the affordability cap was about 2.3 percent of the project.
The result of the cost of materials increasing dramatically in the current market. He noted the
Willamette Water Supply Program increased its costs by $315 million, a 24.2 percent increase
due to supply issues, which did not impact Lake Oswego to the same degree because of the
critical thinking and efficacy of the team.
Councilor Rapf noted the proposal included showers and asked if space could be found for an
employee gym considering Council's goal to make Lake Oswego a Blue Zone for healthy living.
Mr. Hooper agreed it was a good suggestion that would be considered, noting there would be
trade-offs.
Councilor Manz recalled earlier discussions with EPCOR and LOSN and understood the new
facility would be able to filter microplastics and pharmaceuticals as technology advanced. Mr.
Hooper replied AquaNereda treated microplastics to 99 percent through the main process, and
up to 97 percent of the residual microplastics in the remaining one percent using a tertiary cloth
process. Councilor Manz asked if the project qualified for the 1.5 percent for art. Mr. Hooper
replied Staff did not believe it qualified, but that would not preclude the project from having art.
Ms. Kerklaan noted Staff would be meeting with the Arts Council next week to discuss potential
options, adding art remained at the forefront of their minds.
Mayor Buck asked Staff to provide details on WIFIA. Mr. Hooper reported the EPA had invited
the City to apply for the Water Infrastructure and Finance Innovation Act (WIFIA) and had
earmarked the funds for the City. Only three other organizations in Oregon were granted that
opportunity. WIFIA would allow the City to finance at a low cost, saving the City $30 million or
more on the project. One of Council's motions tonight was to authorize $100,000 to submit the
WIFIA application. The EPA program was designed for cities and organizations to received loan
financing with favorable terms, including a low interest rate and possible payment deferments.
One downside to a P3 was that the prime financing cost more, and WIFIA would defray a lot of
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that cost because the City would get the best in public financing for half of the total project cost.
The City was very fortunate to be awarded WIFIA financing.
Lee Ward, Senior Project Manager, EPCOR, added the EPA's requirements for the WIFIA loan
included meeting the Prevailing Wage Act provisions and buying U.S. steel. A third provision, Buy
American, had not been fully implemented, and the EPA had advised Staff to expedite the
application before those provisions were in place.
Councilor Wendland moved to approve submitting an application for a Water Infrastructure
Finance and Innovation Act loan for the Tyron Creek Wastewater Treatment Facility project
and pay the $100,000 application fee. Councilor Verdick seconded the motion.
A voice vote was held, and the motion passed,with Mayor Buck and Councilors Wendland,
Nguyen, Verdick Rapf, Manz, and Mboup voting `aye', (7-0).
Mr. Hooper thanked Council for its support and EPCOR for its partnership.
6. COUNCIL BUSINESS
6.1 Intergovernmental Agreements with the Lake Oswego School District for the
Recreation and Aquatics Center Use and Construction.
Ivan Anderholm, Parks and Recreation Director reviewed the history and details of the two
intergovernmental agreements (IGAs) between the City and the Lake Oswego School District for
the construction and use of a recreation and aquatics use center, noting the project's components
remained the same as that described in the 2020 memorandum of understanding between the
parties. The construction agreement was written based on a $30 million total project cost, but on
June 15 2021, Council directed Staff to move forward with a construction option based on
community engagement costing $36,846,000. At that time, those costs reflected portions of the
building beyond the competitive swimming pool and the Staff report reflected the City share
equaled $21,846,000, with the maximum share for the School District being $15 million. The
overall fiscal impact to the City was $21,846,000 for construction and $1 million in capital
maintenance over 20 years. The agreement split the capital maintenance, so the City had $2
million set aside capital maintenance. The City's subsidy for maintenance was an estimated
$500,000 annually after contribution from the School District,which was$10 million over 20 years.
Staff recommended Council authorize the mayor to sign the construction and use IGAs.
Mr. Anderholm and Ms. Bennett addressed questions from Council with these comments:
• The operating costs would be reevaluated after three years. The use IGA was identified the
first three years of contributions from the District which escalated annually from $265,000 to
$279,000 after which both parties would revisit how the facility was operating in real time. The
IGA's numbers were calculated using a formula based on use and an actual portion of the
subsidy, which was the difference between a community-built pool and a competitive athletic
facility for the School District's use.
• The District would contribute an additional $50,000 towards the capital costs, but that was not
defined as being on an annual basis. The contribution would be further defined through the
construction process and the development of a maintenance and repair manual, which the
District's contribution would be based on. The District's contribution was approximately
$50,000 per year, but the IGA included flexibility to allow the District to choose to fund it with
$1 million up front or$250,000 every five years, etc.
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• Staff was comfortable with the $2 million set aside over the next 20 years, though it was not
intended to cover some catastrophic event. The facility would be insured, but the $2 million
was based on the costs of other facilities and the anticipated lifespan of different major
systems.
• Staff had discussed and negotiated the District's share of capital costs and the fact that the
District's share was locked in while the City would be responsible for any additional costs.
Originally, the City and District were going to split the cost of the aquatic portion, but that would
create variability for both entities. The District sought predictability and reliability. The District
had to program the cost for a facility run by the City and wanted a consistent number for
budgeting purposes, expecting the City to operate the facility in the most efficient way
possible. The arrangement and negotiated amount met both the District's and City's needs.
• The $10 million was the estimated annual operation subsidy. Staff estimated all but$500,000
would be recovered through operations and Staff would work to improve upon that loss when
operating the facility.
• The facility would be able to sell alcohol in its role as the clubhouse for the municipal golf
course; however, there would not be a restaurant or bar. Public feedback indicated alcohol
availability was a popular amenity.
• The clubhouse portion of the facility would be integrated into the aquatic facility lobby and the
existing clubhouse would be repurposed into a multi-purpose room that could be divided into
two smaller rooms to accommodate meetings or special events.
• There would be restrictions on alcohol sales during School District events. Alcohol would
be purchased at the clubhouse and consumed in the clubhouse and on the patio and golf
course.
Councilor Wendland commented the $50,000 annual capital cost contribution by both parties
was a new concept for the School District, but the District fully agreed the arrangement worked
well as it ensured money was set aside for potential capital work needed in the future. He
commended the project team, noting it was a fair agreement that created a good relationship
between the City and School District. He added alcohol purchases would be part of the City's
revenue model. The facility could become a wonderful event space and used in many creative
ways to help offset the City's subsidy. It would also provide an outlet for residents not belonging
to a country club.
Mayor Buck commented there was overwhelming access to alcohol throughout the community
and parks were nice spaces to provide an alternative. The proposed facility would help people
physically and mentally, while nurturing the community's culture. The City had not done much to
provide facilities for youth sports, which was done by the School District, and now the City was in
a position to do more with the skate park and this new facility, which would provide a healthy,
welcoming facility open to everyone; however, certain behaviors would not be tolerated to keep
the spaces safe.
Councilor Rapf commented that the agreement displayed a unique, positive and powerful
partnership between the City and District to support health and children.
Councilor Mboup moved to authorize the Mayor to sign, in substantially the form attached,
Intergovernmental Agreements between the City of Lake Oswego and the Lake Oswego
School District for the Construction and Use of the Lake Oswego Recreation and Aquatics
Center. Councilor Wendland seconded the motion.
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February 15, 2022
A voice vote was held, and the motion passed,with Mayor Buck and Councilors Wendland,
Nguyen, Verdick Rapf, Manz, and Mboup voting `aye', (7-0).
7. CONSENT AGENDA
7.1 Approval of Meeting Minutes.
January 4, 2022, Draft Regular Meeting Minutes
January 13, 2022, Draft Special Meeting Minutes
January 18, 2022, Draft Regular Meeting Minutes
7.2 Resolution 22-07, A Resolution of the City Council of the City of Lake Oswego
Amending the Lake Oswego Council Administrative Procedures.
END CONSENT AGENDA
Councilor Rapf 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 Wendland,
Nguyen, Verdick, Rapf, Manz, and Mboup voting `aye', (7-0).
8. ITEMS REMOVED FROM CONSENT AGENDA
No items were removed from the Consent Agenda.
9. INFORMATION FROM COUNCIL
No Information from Council was provided.
10. REPORTS OF OFFICERS
Ms. Bennett reminded that City Police Chief Dale Jorgensen would retire this summer, but had
agreed to stay on until a new Chief was hired. She praised his work as progressive, innovative,
and collaborative. Council would help develop a candidate profile and a recruitment firm would
help the City find a replacement.
11. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of
ORS 192.660(2)(d) Conduct deliberations with persons designated to carry on labor
negotiations and (f) Consider records that are exempt by law from public
inspection.
Jason Loos, City Attorney, read the legal parameters for the Executive Session.
The broadcast portion of the meeting concluded at 6:10 p.m. with Council taking a break till 6:15
p.m.
The City Council met in Executive Session from 6:15 p.m. to 6:27 p.m.
12. ADJOURNMENT
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February 15, 2022
Mayor Buck adjourned the City Council meeting at 6:27 p.m.
Respectfully submitted,
Kari LindKr, City Recorder
Approved by the City Council on April 19, 2022
7-L-ITS•----
Joseph M. Buck, Mayor
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