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Agenda Packet - 2022-11-15 04LA E(-1AGENDA 7-1 CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING November 15, 2022 oREGo`' 3:00 p.m. Council Chamber- 3rd Floor of City Hall Contact: Kari Linder, City Recorder Email: Klinder@lakeoswego.city or CityRecorder@lakeoswego.city Phone: 503.534.4225 Also published on the internet at: www.lakeoswego.city. The meeting location is accessible to persons with disabilities. To request ADA accommodations, please submit your request online or call 503.635.0282, four business days in advance of the meeting. The meeting will be livestreamed on the City's YouTube Channel and at www.lakeoswego.city as well as broadcast live on Tualatin Valley Community TV; check their website for details. How to testify: If you would like to provide public comment or public testimony at an upcoming City Council meeting, please refer to the City's instructions for in person and electronic (via Zoom or by phone) participation. In order to participate online or by phone, email: CityRecorder(a@lakeoswego.city by Noon the day of the meeting. Pre-registration is not required to testify in person at City Hall, but is encouraged and appreciated for meeting preparation. Simply fill out the request to speak card located on the table to the left as you enter the Chamber. Thank you. 1. CALL TO ORDER, REDEVELOPMENT AGENCY (LORA) 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. BOARD BUSINESS 4.1 Amendment to the North Anchor Disposition and Development Agreement. Motion: Move to authorize the Executive Director to execute the first amendment to the December 7, 2021 Agreement for the Disposition and Development of the North Anchor Properties to allow for a six-month extension to close on the residential/commercial component and other related deadlines. Respect. Excellence. Trust. Service. 503.534.4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 4.2 Approval of LORA Board Meeting Minutes. July, 19, 2022, Draft Regular LORA Meeting Minutes Motion: Move to approve the LORA Meeting Minutes as written. 5. ADJOURNMENT, REDEVELOPMENT AGENCY (LORA) 6. CALL TO ORDER, CITY COUNCIL 7. PUBLIC COMMENT The purpose of Public Comment is to allow the community to present information or raise an issue regarding items not on the agenda or regarding agenda items that do not include a public hearing. A time limit of three minutes per individual shall apply. Public Comment will not exceed thirty minutes in total. 7.1 Prior Public Comment Follow-Up 8. CONSENT AGENDA • The Consent Agenda allows the City Council to consider items that require no discussion. • An item may only be discussed if it is pulled from the Consent Agenda. • The City Council makes one motion covering all items included on the Consent Agenda. Motion: Move to adopt the Consent Agenda. 8.1 Resolution 22-27, A Resolution of the City Council of the City of Lake Oswego Adjusting Solid Waste Collection Service Rates. Motion: Move to adopt Resolution 22-27. 8.2 Approval of Meeting Minutes. September 6, 2022, Draft Regular Meeting Minutes September 27, 2022, Draft Special Meeting Minutes Motion: Move to approve minutes as written. 9. ITEMS REMOVED FROM CONSENT AGENDA Respect. Excellence. Trust. Service. 503.534.4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 3 10. CONSENT AGENDA—Councilors Only [Note: Only Councilors vote to concur in Mayor's appointments of Committee members, per Charter, Sec. 19] Motion: Move to adopt the Consent Agenda. 10.1 Resolution 22-36, A Resolution of the City Councilors of the City of Lake Oswego Approving an Appointment of an Alternate to the 50+ Advisory Board. 11. PUBLIC HEARINGS To speak during a Public Hearing electronically via Zoom or by phone, email: CityRecorder@lakeoswego.city by Noon the day of the meeting to receive login information and instructions. 11.1 Ordinance 2916, An Ordinance of the City Council of the City of Lake Oswego Removing the Sunset on Ordinance 2831 (LOC 24.06 Residential Demolition Tax), Modifying the Affordable Housing and Deconstruction Incentives in LOC Article 24.06, and Amending LOC Article 45.12 (Demolishing or Moving Buildings) to Make Deconstruction Mandatory for Structures Built in the Year 1940 or Earlier. Public Hearing Process: 1. Review of hearing procedure by Evan Boone, City Attorney Pro Tern 2. Staff Report by Scot Siegel, Community Development Director 3. Testimony—the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; and 5 minutes per individual 4. Questions of Staff Motion: Move to enact Ordinance 2916. Respect. Excellence. Trust. Service. 503.534.4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 4 11.2 Ordinance 2903, An Ordinance of the City Council of the City of Lake Oswego Declaring a Prohibition on Psilocybin-Related Businesses Within the City. Public Hearing Process: 1. Review of hearing procedure by Evan Boone, City Attorney Pro Tern 2. Staff Report by Evan Boone, City Attorney Pro Tern 3. Testimony—the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; and 5 minutes per individual 4. Questions of Staff Motion: Move to enact Ordinance 2903, An Ordinance of the City of Lake Oswego Declaring a Prohibition on Psilocybin-Related Businesses Within the City. 12. STUDY SESSIONS 12.1 Proposed Street Maintenance Fee for Additional Pathway Projects. Motion: Move to direct staff to include a proposed increase in the Street Maintenance Fee in the 2023 Master Fees and Charges Resolution, scheduled for a Public Hearing at the City Council meeting on December 6, 2022. 12.2 2023 Master Fees and Charges. 13. INFORMATION FROM COUNCIL 14. REPORTS OF OFFICERS 15. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of ORS 192.660(2)(e) Conduct deliberations with persons designated to negotiate real property transactions; and (f) Consider records that are exempt by law from public inspection. 16. ADJOURNMENT, CITY COUNCIL Respect. Excellence. Trust. Service. 503.534.4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 4.1 o o� REDEVELOPMENT AGENCY REPORT U AUF 0 oRr_Gov' Subject: North Anchor Project— First Amendment to the Disposition and Development Agreement Meeting Date: November 15, 2022 Staff Member: Sidaro Sin, Redevelopment Manager Report Date: October 31, 2022 Department: Redevelopment Agency Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: Approve the first amendment to the December 7, 2021 Disposition and Development Agreement of the North Anchor Properties. Recommended Language for Motion: Move to authorize the Executive Director to execute the first amendment to the December 7, 2021 Agreement for the Disposition and Development of the North Anchor Properties to allow for a six-month extension to close on the residential/commercial component and other related deadlines. Project/ Issue Relates To: NA Issue before Board (Highlight Policy Question): ❑Council Goals/Priorities ❑X Adopted Master Plan(s) ❑Not Applicable ISSUE BEFORE BOARD Should the LORA Board extend the mixed-use (residential and ground floor commercial) closing and other associated deadlines by six months in the North Anchor Disposition and Development Agreement with Urban Development Partner due to the currently challenging economic environment? Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND On December 7, 2021 the Lake Oswego Redevelopment Agency (LORA) entered into a Disposition and Development Agreement (DDA) with Urban Development Partners (UDP) for the redevelopment of the North Anchor properties located at First Street and B Avenue. UDP's redevelopment proposal includes two components; an 83-room boutique hotel with a restaurant and a mixed-use 67-unit apartment with approximately 6,000 square feet of ground floor retail. Both components include on and off-street parking. DISCUSSION Hotel: This request does not change the hotel component's closing date of December 31, 2023 or the beginning of construction date of January 7, 2024. Mixed-Use (Residential, with Ground Floor Commercial): The DDA requires that UDP close by December 31, 2022 and begin construction by January 7, 2023. On October 21, LORA received a request from UDP for a six-month extension on the deadline to close and begin construction on the mixed-use component (Attachment 1). The extension would change the closing date to June 30, 2023 and the construction date to July 7, 2023. Specifically, the sections affected of the DDA include: DDA Original Proposed Section Deadline Deadline Task Date Date 2.2 UDP to provide written notice of election to execute phased 12/11/22 6/11/23 conveyance of properties 2.8.3.3 UDP provides evidence of funding capacity to meet prevailing 12/1/22 6/1/23 wage indemnity obligation to LORA 2.8.3.6 UDP provides evidence of necessary funding commitments to 12/1/22 6/1/23 complete the project, including budgets and pro-formas 2.7 UDP to close on acquisition of the property for the first project 12/31/22 6/30/23 component 2.7 UDP to commence construction on first project component 1/7/23 7/7/23 3.1.1.1 UDP to complete all work set forth in DEQ-approved Hazard 3/31/23 9/30/23 Mitigation Plan and Contaminated Media Management Plan 3.1.1.1 UDP to obtain "No Further Action" letter from DEQ 4/20/23 10/20/23 7.2 UPD to complete construction of the first project component, 6/30/24 12/30/24 including associated public improvements UDP is seeking the extension due to unprecedented economic challenges, including escalation of construction costs and rising interest rates. Despite these challenges, over the last year, UDP has been able to overcome these issues and continue moving forward with the project. To date, their efforts represent a $3.25m investment for a project that is nearly "shovel ready". Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 While the request is for a six-month extension, UDP's highest priority is on closing and beginning construction before the deadlines. ATTACHMENTS 1. UDP request to amend the Disposition and Development Agreement (10/21/22) Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY UD ± P URBAN DEVELOPMENT PARTNERS October 21, 2022 Martha Bennett Executive Director City of Lake Oswego Redevelopment Agency PO Box 369 Lake Oswego, OR 97034 RE: North Anchor Disposition and Development Agreement Request for Extension Dear Martha, I am writing to respectfully request that the Lake Oswego Redevelopment Agency ("LORA") grant Urban Development Partners ("UDP") a six-month extension on its requirement to purchase the land and commence construction on the residential component of the project. Original Closing Date: December 31, 2022 Revised Closing Date: June 30, 2022 Original Construction Start: January 7, 2023 Revised Construction Start: July 7, 2023 This request does not change the dates for the closing or construction start date for the hotel component of the project. UDP has made a lot of excellent progress towards the deadlines set forth in the DDA. The residential project is on track to have a building permit before the end of the year. The hotel project will submit drawings for permit by mid-November, with an anticipated permit issuance before the end of the first quarter of 2023. UDP has invested approximately $3.25M in the two projects to date to bring them to this point. As you are aware, we have been in a challenging economic environment for real estate development. Over the past year, we have dealt with an unpredictable and rapidly escalating cost environment that has rendered many projects infeasible or caused significant delays. The North Anchor projects were not without their challenges, and we spent several months on both projects examining several different strategies and 116 NE 6th Avenue,Suite 400 Portland,OR 97232 /TEL 503-946-3265 / FAX 503-961-169U /www.udplp.com UD ± P URBAN DEVELOPMENT PARTNERS opportunities to reduce costs. At this point we feel that we have addressed cost concerns to the extent possible,but this work did delay our timeline by several months. Secondly, the rising interest rate environment has created new challenges in financing construction projects, and the uncertainty around concerns about additional rate hikes and a potential economic recession are causing lenders and investors alike to revise their outlooks for the coming year. This has led to slower-than-anticipated velocity on identifying and securing both debt and equity for the project. We remain very optimistic about our ability to put together financing for both projects. We are highly focused on this project and the identification of capital for these projects is our top company priority for the next 2 quarters. Now that we are nearly "shovel ready" on both projects, we are able to make a very strong case for the investment thesis on these projects and will be able to talk to many investors and lenders who may have been waiting on the sidelines until the project was further along in the predevelopment cycle. We will be able to cast a wide net of outreach and are confident in our underwriting and that these projects will represent an excellent opportunity for investors. We look forward to a continued strong partnership with the city on the North Anchor projects and to bringing them both across the finish line for UDP and for LORA and the community. Sincerely, ,-,, ,01,-,—C---- Sarah Zahn Chief Operating Officer Urban Development Partners, NW 116 NE 6th Avenue,Suite 400 Portland,OR 97232 /TEL 503-946-3265 / FAX 503-961-169E / www.udplp.com 4.2 of 0,p REDEVELOPMENT AGENCY REPORT rro v -a+ Subject: Approval of Lake Oswego Redevelopment Agency Board Meeting Minutes Meeting Date: November 15, 2022 Staff Member: Kari Linder, Recording Secretary Report Date: November 3, 2022 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation 0 Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Board Direction ❑ Consent Agenda Staff Recommendation: Approve minutes as written. Recommended Language for Motion: Move to approve minutes as written. Project/ Issue Relates To: Issue before Board (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable ATTACHMENTS 1. July 19, 2022, Draft Regular LORA Meeting Minutes Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 LAKE OSWEGO REDEVELOPMENT AGENCY MEETING rrA MINUTES V July 19, 2022 aREGO� 13. CALL TO ORDER, REDEVELOPMENT AGENCY (LORA) Chair Buck called the Lake Oswego Redevelopment Agency (LORA) meeting to order at 5:23 p.m. on July 19, 2022. Present: Chair Buck and Board Members Manz, Wendland, Nguyen, and Rapf. Board Members Verdick and Mboup were excused. Staff Present: Martha Bennett, Executive Director; Jason Loos, LORA Counsel; Sidaro Sin, Redevelopment Manager; Kari Linder, Recording Secretary Others Present: Sarah Zahn, UD+P; Boyce Postma, Hacker Architects 14. BOARD BUSINESS 14.1 North Anchor Project Update Mr. Sin introduced Ms. Zahn, chief operating officer for the project developer, UD+P, and Mr. Postma, architect with Hacker. Recognizing the Board's priority of keeping the project on track, he indicated that much has been accomplished by the team and by staff since December. Despite challenges, notably financial, significant progress would be shared with the Board. Ms. Zahn noted the presentation would provide an overview of the past and upcoming six-month periods. Mr. Postma, lead designer for the hotel and also closely involved with the residential project, would be available to assist. The team regards the community as a desirable place for development and continues to be enthusiastic and committed to the project. Displaying slides (Presentation — North Anchor Project Update), Ms. Zahn reminded the Board that a key aspect is creating a name and identity for the hotel, since it will not be flagged as a national brand. Beginning with design updates, she reviewed a pricing exercise undertaken in recent months to identify cost-saving opportunities. Only one significant design change to the multi-family residential portion would be apparent: relocation of the entrance (Presentation p 4-5/32). The hotel, being managed on a track separate from the multi-family, also reflects design changes (p 7-8/32) and is now entering a final stage of design. She reviewed significant changes to the north and west elevations, including related positive effects; an additional design review process is not anticipated at this point. Next, renderings showing aspects of the hotel were described (p 9- 12/32), including the meeting room, some proposed materials, and functionality of the building as a whole. The branding and restaurant concepts have been advanced with significant help from a local design firm, including outreach to people about current community highlights and needs for Redevelopment Agency Meeting Minutes Page 1 of 4 July 19, 2022 consideration. The hotel's name should be finalized shortly. Foundations for the brand were detailed (p 14-18/32), with attributes including warmth, magnetism, and radiance. Considerable analysis has been done to identify characteristics of likely guests (p 20). The efforts had culminated in a guiding statement: "Light the Way". This recognizes the five months of the year that are dark in the Pacific Northwest, yet where light and warmth are sought in the beauty of outdoors. This has guided the design and will be reflected in the hotel name and other brand components, she indicated. A similar process was followed for the restaurant. Significantly, it was found that the restaurant must be embraced by the community; an 83-room hotel alone cannot support a 100-seat restaurant. An overview and creative concepts were highlighted, including the need to distinguish it as a Lake Oswego, not Portland, restaurant (p 23-24). Photographs of four "comparables" for purposes of inspiration were then shown (p 25-28). Board Member Rapf cited erroneous assumptions made by businesses coming into Lake Oswego from elsewhere. Having found that residents generally seek an unpretentious setting and service, various businesses have either retooled or failed. As presented by Ms. Zahn, concepts for this project reflect a good understanding of the community, he opined. The challenge will be to operate the business in a way that recognizes what Lake Oswego is and what is not. In response to Board Member Wendland's questions, Ms. Zahn indicated that announcement of the hotel's name and concept is probable within the coming two to three months, with possible phasing-in of some aspects. The name, at least, would be unveiled prior to the start of construction. Member Wendland emphasized the community's high level of demand for the hotel, the sooner the better. Ms. Zahn next discussed the environment in the capital markets, with interest rates increasing. Even a greater factor for developers has been escalating construction cost, together with supply- chain unpredictability. A dramatic drop in the volume of real estate transactions has been seen; lenders, underwriters, and investors are in essentially wait-it-out mode. Developers are waiting and watching before moving forward to initiate a construction loan, seeking an equity investor or selling an asset. For many reasons, it is a time of great uncertainty and challenge. Specific to this project, it has been capitalized sufficiently to break ground, and UD+P is currently looking for additional investment capital. They are seeing interest in the project by many of their lenders and investors, but are being asked to provide updated cost numbers from the contractor. Their focus now is on budget revisions that reflect the contractor's changes and the reworked plans from Hacker. These are anticipated within the next four to six weeks, after which the investment search will proceed aggressively. Despite the hesitancy in capital markets, the team remains confident that the project will go forward; it simply has slowed down slightly. Finally, she reviewed the project schedules. While the multi-family is running somewhat ahead of the hotel at this point, the plan continues to call for coordination of staging in terms of construction; concurrent work on the two projects allows for cost savings. However, much depends on how the capital comes together. The multi-family and hotel schedules were discussed (p 31-32), with indications being that the hotel will lag the multi-family project by one to two months. She reiterated the caveat of capital as a major determinant of timeline, and its priority in the next quarter. Chair Buck inquired about the estimated length of the construction period. Ms. Zahn and Mr. Postma concurred that it would be about 18 months, with completion probable in summer 2024. Member Wendland commended the team for recognizing the priority of a low noise level for customers of the restaurant, and Mr. Postma acknowledged its importance. Member Wendland asked about current projections for the multi-family rental pricing as compared to the earlier target. Ms. Zahn advised that the rates are surveyed constantly, particularly as they must demonstrate to lenders and investors that pricing is in the target-market range. Discussing the distinctive market environment in Lake Oswego, she noted that the Mercato Grove and The Windward Redevelopment Agency Meeting Minutes Page 2 of 4 July 19, 2022 projects, regarded as comparable to this one, are tracked very closely. This will help in guiding price points that are reasonably conservative, i.e., in the middle of that comparable-market range. In response to Member Wendland's questions about their approach on capital markets, she explained that a bank would be the debt partner, with differing percentages loaned on the residential and hotel components; the remainder would be private-equity funding. Also being considered is an institutional partner. She clarified that the hotel company would not participate as a capital partner, but would simply be the operator. Their experience and good track record also will provide benefits as potential investors consider the project. At Ms. Bennett's suggestion, Chair Buck and Ms. Zahn agreed that the next Board update would be scheduled, likely for some time in the fall quarter. Member Wendland asked about the possibility of including pads for artwork in the project as art is greatly valued by citizens. Ms. Zahn confirmed that this is already in the plans. 14.2 Approval of LORA Meeting Minutes. April 5, 2022, Draft Regular LORA Meeting Minutes Board Member Rapf moved to approve the LORA meeting minutes as written. Board Member Manz seconded the motion. A voice vote was held, and the motion passed, with Chair Buck and Board Members Manz, Wendland, Nguyen, and Rapf voting `aye' (5-0). 15. CONSENT AGENDA— Board Members Only Motion: Move to adopt the Consent Agenda. 15.1 LORA Resolution 22-02, A Resolution of the Lake Oswego Redevelopment Agency (LORA) Making Appointments to the LORA Budget Committee. END CONSENT AGENDA Board Member Wendland moved to adopt the Consent Agenda. Board Member Manz seconded the motion. A voice vote was held, and the motion passed, with Board Members Manz, Wendland, Nguyen, and Rapf voting `aye' (4-0). 16. ADJOURNMENT, REDEVELOPMENT AGENCY (LORA) Chair Buck adjourned the LORA meeting at 6:04 p.m. Respectfully submitted, Kari Linder, Recording Secretary Redevelopment Agency Meeting Minutes Page 3 of 4 July 19, 2022 Approved by the LORA Board on Joseph M. Buck, Chair Redevelopment Agency Meeting Minutes Page 4 of 4 July 19, 2022 8.1 o�c t COUNCIL REPORT �� o AEG% Subject: Resolution 22-27, Garbage and Recycling Collection Service Rates Meeting Date: November 15, 2022 Staff Member: Amanda Watson, Sustainability Program Manager Report Date: November 4, 2022 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded O Resolution 0 Not Applicable ❑ Information Only Comments: ❑ Council Direction O Consent Agenda Staff Recommendation: Adopt Resolution 22-27. Recommended Language for Motion: Move to adopt Resolution 22-27. Project/ Issue Relates To: Solid Waste Franchise; Sustainability Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ONot Applicable ISSUE BEFORE COUNCIL Adjustment of Republic Services' solid waste collection rates. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND Garbage and recycling collection services in Lake Oswego are provided by Republic Services, operating under a 10-year exclusive franchise within the city (Ordinance No. 2600). The franchise expires on Dec. 12, 2022. A new franchise ordinance, Ordinance No. 2901, was adopted by Council on October 18, 2022 and granted Republic Services a new 10-year franchise, starting December 13, 2022. As part of the City's regulation of solid waste collection, the Council is responsible for ensuring that rates are just and reasonable and adequate to provide necessary public service. The process for establishing service rates outlined in the City's 2012 franchise (Subsection 13(E)), and continuing in the 2022 franchise (Subsection 8(B)(ii)), is as follows: "Rates shall be approved by the City Council from time-to-time by resolution, as provided by LOC 20.10.720. In determining the appropriate rate to be charged by the Franchisee, the City Council shall consider: (1) The cost of performing the service provided by the Franchisee, including any additional costs (or savings) resulting from recycling. (2) Anticipated increases in the cost of providing the services. (3) The need for equipment replacement and the need for additional equipment to meet service needs; compliance with federal, state and local law, ordinances and regulations; or technological change. (4) The investment of the Franchisee and the value of its business and the necessity that the Franchisee have a reasonable rate of return or fair operating margin. (5) Rates in other cities in this metropolitan area. (6) Other factors deemed relevant by the City Council." The services provided by Republic Services for which the Council establishes rates include residential, commercial, and industrial collection of garbage, recycling, and organics (food scraps and yard debris), as well as drop box service and on-call and extra container pick-ups. Rates for each customer type vary based on the level of service—the size of the roll cart or container and the frequency of pickup. Republic Services submitted a rate increase request on August 5, 2022. The City contracted with Chris Bell of Bell &Associates, Inc., a consulting firm with expertise in solid waste collection operations and providing similar services to Clackamas County, to review the submitted request and financial reports and provide recommendations to the City on options for rate adjustment. DISCUSSION At the October 18, 2022 Council Meeting, staff presented the findings of Bell & Associates' rate review (Attachment 2) and options and recommendations for City Council to adjust rates effective January 1, 2023. Council directed staff to return with a resolution approving the following proposed rate adjustment options: Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 • Increase residential rates by 5.27%, maintaining the current rate structure. • Bundle commercial food waste collection into commercial rates, and increase commercial rates by 5.17%. • Set rates for drop box and roll off compactor service at the cost of service. Additionally, the Council directed staff to include in the Resolution continuation of the 50% discount on solid waste collection services for Lake Oswego School District facilities that was included in the 2012 franchise agreement (Ordinance 2600) and include extension of the discount to other schools. There are five private schools that provide education to students in grades 1— 12: Our Lady of the Lake, Mayaan Torah Day School, Park Academy, St Stephen's Academy, and International Leadership Academy. The impact of extending the discount to additional schools on rates is approximately 10 cents per yard for all commercial container customers. Together the subsidy for schools and bundling of organics collection into commercial container rates adds $1.25 per yard to commercial container rates. Monthly commercial container rates will increase by an average of 10%, varying based on container size and collection frequency. Increasing residential rates by 5.27% and commercial rates by 5.17%, and setting rates for drop box and roll off compactor service at the cost of service is necessary for Republic Services to achieve the target 10% operating margin in 2023 in light of rising costs of fuel, disposal, and labor, inflation, and decreasing recycling markets. Maintaining the current structure for residential rates continues to provide a waste reduction incentive by keeping the costs for smaller cart sizes slightly lower than the cost of service. Adopting a bundled commercial container rate that includes organics collection will make it easier for Lake Oswego businesses to comply with the new Metro business food scraps separation requirements. RECOMMENDATION Staff recommends that the City Council approve Resolution 22-27, adopting new rates that will be effective for all customers January 1, 2023. ATTACHMENTS 1. Resolution 22-27 (including rate sheet as Exhibit A) 2. 2022 Solid Waste Rate Review Report by Bell & Associates, Inc. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 RESOLUTION 22-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO ADJUSTING SOLID WASTE COLLECTION SERVICE RATES WHEREAS, Ordinance 2600 grants Rossman Sanitary Services Inc.,doing business as Allied Waste of Lake Oswego("Franchisee"),an exclusive franchise for solid waste collection services within the City limits, and reserves to City Council the right to establish and modify service rates charged by the Franchisee; and WHEREAS, on October 18, 2022, City Council adopted Ordinance 2901 granting Rossman Sanitary Service Inc.,doing business as Allied Waste of Lake Oswego(also doing business as Republic Services of Lake Oswego) ("Franchisee")a new ten-year franchise for solid waste collection services effective December 13, 2022; and WHEREAS, Ordinance 2600 and Ordinance 2901 provide that rates shall be approved by the City Council by resolution,and that, in determining the appropriate rates,the City Council shall consider: 1. The cost of performing the service provided by the Franchisee,including any additional costs (or savings) resulting from recycling; 2. Anticipated increases in the cost of providing the services; 3. The need for equipment replacement and the need for additional equipment to meet service needs; compliance with federal, state and local law, ordinances and regulations, or technological change; 4. The investment of the Franchisee and the value of its business and the necessity that the Franchisee have a reasonable rate of return or fair operating margin; 5. Rates in other cities in this metropolitan area; and 6. Other factors deemed relevant by the City Council. WHEREAS,the Franchisee submitted a rate increase request on August 5, 2022; and WHEREAS, the City contracted with Bell & Associates, Inc. to review the submitted request and Franchisee financial reports and provide recommendations to the Council on rate adjustments; and WHEREAS, the City Council at the October 18, 2022 Council Meeting directed staff to prepare a Resolution for Council consideration with the following rate adjustments: 1. Increase residential collection rates by 5.27%; 2. Bundle commercial food waste collection into commercial rates, and increase commercial collection rates by 5.17%; 3. Set rates for drop box and roll off compactor service at the cost of service; and 4. Continue the 50% discount on collection service rates for Lake Oswego School District facilities, and extend the discount to other schools. Resolution 22-27 Page 1 of 2 WHEREAS, the City Council at the October 18, 2022 Council Meeting directed staff to return with a resolution to include the above and authorize a rate adjustment for the Franchisee; and WHEREAS, the City Council has considered the factors outlined above, and has given careful consideration to the interests of the public and the Franchisee, and concludes that an increase in solid waste collection rates should be granted. NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. Effective January 1, 2023 the rate schedule attached as Exhibit A is approved and adopted for the solid waste collection franchise pursuant to Ordinance 2600 and Ordinance 2901. Section 2. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 15th day of November, 2022. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Evan Boone, City Attorney Pro Tern Resolution 22-27 Page 2 of 2 EXHIBIT A REGa2 City of Lake Oswego Republic Services Rate Schedule for Solid Waste, Recycling, Yard Debris, and Organic Materials Collection Effective January 1, 2023 RESIDENTIAL SERVICE RATES Residential Roll Cart Rate 20 gallon $26.84 35 gallon $36.17 60 gallon $53.76 90 gallon $56.33 Up the Drive Rate-20 gallon &35 gallon cart add'I $1.14 for every 50 feet $4.56 Up the Drive Rate-60 gallon &90 gallon carts add'I $1.14 for every 50 feet $6.10 Mountain Park Roll Cart—Trash and Recycling Only, Home Owners Association (HOA) manages Yard Debris in the area. 20 gallon $23.95 35 gallon $33.28 60 gallon $50.88 90 gallon $53.44 Misc. Charges and Limited Services 35 gallon cart—monthly service $21.45 Recycling Only(weekly with 60 gal. cart and bin) $5.79 On Call (Trash Only) 35 gallon cart *Must service at least once every 2 months $13.71 Extra Can/Bag/Box (CBB) $7.97 Yard Debris Only Service (96 gallon cart) $16.18 Yard Debris Extra Can/Bag/Box (CBB YD) $5.90 Contaminated Cart (Recycling) $14.95 Return Trip Fee (RTN) same day $20.07 Return Trip Fee (CAL) off service day $31.89 Gate Opening/Roll Out Container(monthly), per enclosure $18.09 Lost or Damaged Cart (Garbage, Yard Debris, Recycling) $73.49 Lost or Damaged Recycling Bin $12.43 Cart Redelivery Fee $33.68 (I‘Vi‘ E°s City of Lake Oswego r- c) , Republic Services Rate Schedule v °ReG°� Switch/Wash Out Cart (second) *1 free per year $33.91 Reinstatement Fee $33.68 Bulky Waste Pick Up (Furniture, Appliances, Tires, Mattresses, etc.) Fee based on yardage and special handling needs. Minimum Fee: $31.48 + per yard rate Additional charge for appliances with freon (applies to refrigerators, freezers, air conditioners): $39.71 COMMERCIAL SERVICE RATES Commercial Roll Cart Rate 35 gallon $31.67 60 gallon $45.90 90 gallon $48.65 Commercial Front Load Container' Weekly Collection Frequency(#Collections Per Week) Container Size 1 2 3 4 5 6 1 yardZ $157.30 $277.08 $409.12 $541.28 $673.42 $805.58 multiple $125.84 $221.66 $327.30 $433.02 $538.74 $644.46 1.33 yard2 $175.45 $336.34 $494.48 $661.15 $797.64 $934.92 multiple $140.36 $269.07 F $395.59 I $528.92 $638.11 $747.94I 1.5 yard $197.05 $380.74 $564.41 $748.12 $931.82 $1,115.57 multiple $157.64 $304.59 $451.53 $598.50 $745.46 $892.45 2 yard $247.83 $482.27 $716.71 $951.18 $1,185.65 $1,420.09 multiple $198.26 $385.81 $573.37 $760.94 $948.52 $1,136.07 3 yard $331.94 $642.40 $952.86 $1,263.32 $1,573.80 $1,884.25 multiple $282.15 $546.04 $809.93 $1,073.82 $1,337.73 $1,601.61 4 yard $419.84 $818.19 $1,216.53 $1,614.19 $2,013.26 $2,411.60 multiple $356.86 $695.46 $1,034.05 $1,372.06 $1,711.27 $2,049.86 6 yard $575.32 $1,055.77 $1,678.68 $2,089.69 $2,781.66 $3,123.66 multiple $517.78 I $950.191 $1,510.82I $1,880.72 $2,503.50I $2,811.29 8 yard $698.24 $1,372.91 $2,047.62 $2,722.32 $3,397.04 $4,071.74 11 multiple $628.42 1 $1,235.62 $1,842.86 I $2,450.09 $3,057.33 I $3,664.57 1 Compacted containers charged at 2.2x the loose rate. 2 As of September 1, 2015, 1-yard and 1.33-yard front load containers have not been available for new customers. Current customers with these containers will be allowed to continue service with them at the approved rates. 2 p� °s City of Lake Oswego r- c) , Republic Services Rate Schedule v REGa Misc. Charges and Limited Services Rate Return Trip Fee same day/cart only (RTN) 33% of monthly rate Return Trip Fee off service day/cart only(CAL) $31.83 Extra Yardage (EXY) per yard $33.11 Lock $28.23 INDUSTRIAL SERVICE RATES Drop Box/ Roll Off Compactor Rate 10 yard drop box $174.00 20 yard drop box $174.00 30 yard drop box $174.00 40 yard drop box $174.00 Drop Box Delivery $72.00 Relocate Drop Box $96.00 Dry Run $115.00 Compactor Rate $239.00 Misc. Charges and Limited Services Fee for less than 4 hauls per month $25.00 Round tripped custom/lidded box (per haul) $35.00 Custom/lidded box rental (per month) $12.00 Multifamily Recycling Services for Drop Box or Compactor Customers Number of Units Rate per Unit 5-199 $3.02 200-299 $2.55 300-299 $2.31 399+ $2.23 3 OeDifi Solid Waste and Recycling o y g ATTACHMENT2 wasp OREGO\-' Collection Rate Report • • • • • -54 T. Ilk LL • -ram - _ d _ "` .� ma` - ' Bell & Associates, Inc. &IONAl.S.. October 2022 2022 SW Rate Review Report City of Lake Oswego Solid Waste Rate Review Table of Contents Project Background 1 Annual Cost Report 1 Adjusted Report 2 Table 1: 2021 Lake Oswego Franchise Results 2 Projected Results for 2022-23 2 Table 2: Assumed Expense Factors 2 Year to Year Comparison of Expenses 3 Table 3: Revenue and Expense Comparison from 2021 to 2022-23 3 Table 4: Projected 2022-23 Lake Oswego Results 3 Solid Waste Disposal 4 Table 5: Metro Disposal Fee Four-Year Estimated Cost 4 Commercial Collection Rates 4 Table 6: Proposed Commercial Collection Rates Effective January 1, 2023 4 Residential Collection Rate Consideration 5 Table 7: Residential Cost of Service Rates 5 Table 8: Current Residential Rates Increased by 5.27% 5 Drop Box/ Roll Off Compactor Service Rate Calculation 6 Table 9: Drop Box/ Roll Off Compactor Cost of Service Rate Calculation 6 Commercial Food Waste Service Rate Consideration 7 Table 10: Commercial Food Waste Collection Rate Alternatives 7 2022 SW Rate Review Report Project Background Collection of waste and recycling within the City of Lake Oswego (City) is accomplished under an exclusive franchise agreement between Rossman Sanitary Service, doing business as Republic Services, and the City. As the regulator of waste and recycling, City Council is responsible for ensuring rates are just and reasonable, and adequate to provide necessary public service. Section 13, paragraph E, states the following: Rates shall be approved by the City Council from time-to-time by resolution, as provided by LOC 20.10.720. In determining the appropriate rate to be charged by the Franchisee, the City Council shall consider: (1) The cost of performing the service provided by the Franchisee, including any additional costs (or savings) resulting from recycling. (2) Anticipated increases in the cost of providing services. (3) The need for equipment replacement and the need for additional equipment to meet service needs; compliance with federal, state, and local law, ordinances and regulations; or technological change. (4) The investment of the Franchisee and the value of its business and the necessity that the Franchisee have a reasonable rate of return of fair operating margin. (5) Rates in other cities in this metropolitan area. (6) Other factors deemed relevant by the City Council. Republic Services submitted a rate increase request to the City Council on August 5, 2022. To review the reported results and calculate the rates, the City contracted with Bell &Associates, a consulting firm with expertise in solid waste collection operations, to provide the City with solid waste and recycling consulting services. Annual Cost Report The annual cost report provides line-item costs and revenues associated with providing service within the City and combined line-item totals for their operations outside of Lake Oswego. The report format provides the capacity to calculate the cost of service for each line of business (cart, container, and drop box). Cart collection is primarily for residential customers, whereas business customers are serviced with a container. Reported results were analyzed, and the following tasks were completed: a. Analyze reported route collection hours to the reported customer counts for each line of business. b. Using a predictive test of revenue for each line of business, ensure the reported revenues are reasonable for the number of reported customers. c. By thoroughly reviewing the reported direct cost line items, determine if the expense is reasonable in relation to the customer and operational data entered from the detailed cost report. d. Utilize a predictive test of disposal to determine if the reported disposal expense is reasonable. e. Using the reported administrative line items, determine if the expense is reasonable in relation to the operational data entered from the detailed cost report. f. Review the costs between the City and Republic's other franchised collection operations to determine if the allocations are reasonable. Bell &Associates, Inc. Page 11 2022 SW Rate Review Report Adjusted Report Financial data was consolidated by service, showing the collection system's total revenues and expenses. This consolidated report allows the calculation of the system's return-on-revenue and provides a measure of the adequacy of rates. Table 1 details the return for each collection service provided within the Lake Oswego franchise collection system. Table 1: 2021 Lake Oswego Franchise Results Cost Component Roll Cart Container Drop Box Total Revenues $5,597,211 $2,398,241 $1,264,306 $9,259,758 Allowable Costs for Rates $5,077,058 $2,153,446 $1,192,162 $8,422,666 Franchise Income $520,153 $244,795 $72,144 $837,092 Return on Revenues 9.3% 10.2% 5.7% 9.0% Projected Results for 2022-23 Projecting the financial performance for 2022-23 was completed by applying the following assumptions to the Table 2: Assumed Expense Factors 2021 adjusted expenses. Expense Increase • The driver wage increase is calculated on the hourly Driver Wages 2.20% wage increase from the Teamster's contract, which is Inflation 6.58% $0.63 per hour on July 1, 2022 —an increase of 2.2%. Fuel 10.0% Health insurance for union employees will remain Recycling Processing 52% unchanged from the previous year. Solid Waste Disposal 6.0% • Inflation increased by 6.58% YTD in 2022 compared Organic Waste Disposal 3.5% to 2021, according to the US Bureau of Labor Statistics. (All items in West-Size Class A, urban wage earners and clerical workers, not seasonally adjusted) • Fuel is expected to increase by only 10% from the increased cost of natural gas. While the price of natural gas has increased, it is still significantly lower than diesel. • Decreasing markets for recycling in 2022 have increased processing costs by 52% compared to the previous year. • Disposal costs are estimated to increase by 6% in the calendar year 2023 for solid waste and 3.5% for organic waste compared to the 2021 expense. � ` Bell &Associates, Inc. Page 12 2022 SW Rate Review Report Year to Year Comparison of Expenses Projected increases in expenses from 2021 to 2022-23 are summarized in Table 3. Table 3: Revenue and Expense Comparison from 2021 to 2022-23 Description 2021 Actual Increase Projected % • Service Revenue $9,259,758 $55,506 $9,315,264 0.6% Solid Waste Disposal 2,456,773 154,829 2,611,602 6.3% Recycling /Yard Debris 812,741 133,981 946,722 16.5% Disposal Labor 2,475,141 44,943 2,520,084 1.8% Truck 1,069,842 47,505 1,117,347 4.4% Equipment 158,148 3,274 161,422 2.1 Franchise Fees 1 480,333 (14,569) 465,764 -3.0% Other Direct/ Oregon CAT 137,280 1,799 139,079 1.3% G &A 835,073 19,865 854,938 2.4% Total Expenses 8,425,331 391,627 8,816,958 4.6% Table Note 1: Franchise fees are calculated at 5% of projected revenue; however, payments are reported by the City based on cash receipts and will fluctuate due to the invoice cycles and the submission of customer payments. Combining the increased revenue and expenses allows for the projection of the expected results of collection operations for the calendar years 2022 and 2023. Projected results by line of business for 2022-23 are summarized in Table 4. Table 4: Projected 2022-23 Lake Oswego Results Cost Component Roll Cart Container Drop Box Composite Revenues $5,597,211 $2,398,241 $1,319,812 $9,315,264 Allowable Cost $5,288,364 $2,263,883 $1,262,046 $8,814,293 Franchise Income $308,847 $134,358 $57,766 $500,971 Return on Revenues 5.52% 5.60% 4.38% 5.38% Target Rate of Return 10.00% 10.00% 10.00% 10.00% 011 ` Bell &Associates, Inc. Page 13 2022 SW Rate Review Report Solid Waste Disposal Metro is the regional wasteshed manager for all waste disposed within its boundaries. As the regulator, Metro assesses a Regional System Fee (RSF) and excise tax on every ton of waste generated and delivered to a licensed disposal facility within the Metro region. The current RSF is $29.43 per ton, and the excise tax is $12.80 per ton. Earlier this year, Metro staff presented Metro Council with a plan to increase the disposal fees by approximately 7% annually over the next four years. Table 5 summarizes Metro's proposed increases. Table 5: Metro Disposal Fee Four-Year Estimated Cost Rate Component FY23 FY24 FY25 FY26 Mixed Waste Fee $78.17 $85.87 $94.46 $102.15 Regional System Fee $29.43 $31.37 $33.31 $35.76 Metro Excise Tax $12.80 $12.80 $12.80 $12.80 Metro Host Fee $1.50 $1.50 $1.50 $1.50 Oregon DEQ Fee $1.89 $1.89 $1.89 $1.89 Total Tip Fee at Metro stations $123.79 $133.43 $143.96 $154.10 % Increase from the prior year 7.10% 7.80% 7.90% 7.10% Metro is also a competitor for regional waste and controls the amount of wet garbage each facility can accept. Metro's current allocation of tonnages to private transfer stations is approximately 40% of all waste tons generated within the region. Willamette Resources Incorporated (WRI) is the transfer station that takes Lake Oswego's waste. Over the last three years, Metro has reduced WRI tonnage allocation to 74,606 in FY20, 70,782 tons in FY21, and 70,108 tons in FY22. Therefore, the estimated disposal rate charged to Lake Oswego depends on WRI receiving at least 70,100 tons of waste in FY23. If WRI's tonnage allocation is lowered by Metro, the disposal fee charged by WRI will increase. Commercial Collection Rates The overall increase necessary to return a 10% margin for commercial collection is $124,078, which is a revenue increase of 5.17%. Table 6 details the proposed rates for the most popular container sizes effective January 1, 2023. Table 6: Proposed Commercial Collection Rates Effective January 1, 2023 Level of Service Current $ ♦ Proposed 2 Yard Weekly $224.79 $11.62 $236.41 3 Yard Weekly $299.34 $15.48 $314.82 4 Yard Weekly $377.49 $19.52 $397.01 6 Yard Weekly $514.47 $26.60 $541.07 8 Yard Weekly $620.50 $32.08 $652.58 Bell &Associates, Inc. Page 14 2022 SW Rate Review Report Residential Collection Rate Consideration There are two methods to increase the rates to achieve a 10% return on revenue; the cost of service or applying a flat percentage increase. The current rates for residential roll cart collection service were not set at the cost of service. Customers with smaller carts (20 and 35 gallons) receive a discount, whereas those with 65 or 95 gallon garbage cart pay more to subsidize the customers with the lower volume carts. Table 7 details the cost of service by component for residential service. Table 7: Residential Cost of Service Rates Level of Service 20 gal 35 gal 65 gal 95 gal Collection Cost $17.01 $17.01 $17.01 $17.01 Administration Cost $3.76 $3.76 $3.76 $3.76 Garbage Disposal $3.59 $6.08 $10.49 $15.19 Recycling Processing $1.29 $1.29 $1.29 $1.29 Yard Debris Disposal $4.83 $4.83 $4.83 $4.83 Margin & Franchise Fee $5.38 $5.82 $6.60 $7.43 Total Cost of Service Rates $35.86 $38.79 $43.98 $49.51 Current Rate $25.50 $34.36 $51.07 $53.51 Rate Difference (Cost of $10.36 $4.43 $(7.09) $(4.00) Service- Current) Residential Customer Count 1,458 6,892 2,461 958 The increase for residential cart collection to achieve a 10% return is to raise rates by 5.27%. Therefore, table 8 multiplies the current rates by 5.27%. Table 8: Current Residential Rates Increased by 5.27% Level of Service Current $ ♦ Proposed 20 Gal. Can $25.50 $1.34 $26.84 35 Gal Cart $34.36 $1.81 $36.17 60 Gal. Cart $51.07 $2.69 $53.76 90 Gal Cart $53.51 $2.82 $56.33 Monthly $20.38 $1.07 $21.45 The question for City Council is what method should be applied to set the residential collection rates. ea- 140 Bell &Associates, Inc. Page 15 2022 SW Rate Review Report Drop Box / Roll Off Compactor Service Rate Calculation Drop box hauling fees are calculated on the operational costs per hour multiplied by the average time to provide the service, plus the administrative cost, margin, and franchise fees. Disposal fees for drop box and roll off compactor service are a separate charge not included in the rates calculation. Disposal fees are passed through on the invoice without any margin or franchise fee markup. Therefore, customers should be able to compare the disposal charge on their invoice to the posted fee schedules for the various disposal sites. Table 9 details the rate calculation for both drop box and compactor service. Table 9: Drop Box/ Roll Off Compactor Cost of Service Rate Calculation Description Note Drop Box Compactor Drop Box Delivery Average Haul Time in Minutes A 60 90 30 Operational Cost per Hour B $123.29 $123.29 123 Haul Cost C $123.29 $184.94 $61.50 Admin Cost per Haul D $25.00 $18.00 $- Operation Margin & Franchise Fee @ 15% E $26.17 $35.81 $10.85 Proposed Rate (rounded to the nearest$1) F $174.00 $239.00 $72.00 Current Drop Box/ Roll Off Compactor $158 (20-30 yd.) Rates $168 (30 yd.) $210 $36.96 Table 5 Notes A: Estimated average time in minutes to pick up the drop box or container. Compactor service takes additional minutes to unhook and hook the container to the compaction system. B: Projected drop box cost per hour C: Haul Cost is calculated as a percentage of time multiplied by the Operational Cost per Hour D: Admin Costs are slightly higher on an occasional customer or a one-time haul, whereas compactor hauls are typically on a regular schedule. E: Margin (10%) and Franchise Fees (5%) are calculated as (Haul Cost + Admin Cost)/ (1 — 15%) F: Proposed Rate is the sum of Haul Cost + Admin Cost + Margin & Franchise Fee rounded to the nearest$1. Bell &Associates, Inc. Page 16 2022 SW Rate Review Report Commercial Food Waste Service Rate Consideration Metro's commercial food waste program goes into effect on March 31, 2023, for customers that generate over 1,000 pounds of food waste per week. The program aims to divert food from the waste stream to higher uses such as compost. The requirement designates businesses into different groups based on the amount of food waste they generate and has phased compliance deadlines, starting with the largest generators. There are three tiers of food waste generators ranging from 1,000 pounds of food scraps per week (Group 1), followed by customers that generate 500 pounds of food scraps (Group 2), and customers that generate 250 pounds of food scraps per week (Group 3). Low food waste generators not required to participate but choose to are classified as Group 4 under the program requirements. Clackamas County has identified 17 businesses as Group 1, 45 businesses in Group 2, and 64 businesses in Group 3. According to Clackamas County records, eight Group 1 businesses are participating in the program. While the larger food waste generators are required to participate in the program, any business that generates food waste can participate. Republic Services is currently providing food waste collection services to 45 customers within the City. Service levels vary from as little as one 64 gallon cart collected once a week to a three yard container collected four times a week. The rates charged to the food waste generators are subsidized by approximately 30% below the service cost. Implementing the collection rates to support the program can be accomplished by three methods: 1. Cost of Service, 2. Subsidized, which is the amount current food waste participants are paying, or 3. Bundled, which is spreading the cost of the food collection program to all commercial customers. Table 10 summarizes the rate impacts for all three rate methods for full participation for the current participants plus the remaining nine food waste generators that are not participating in the program. Table 10: Commercial Food Waste Collection Rate Alternatives Level of Service Current Cost Current Rate Bundled Rate of Service (30% subsidy) 64 gallon cart weekly $56.37 $39.46 $0 90 gallon cart weekly $59.94 $41.96 $0 2 yard container weekly $290.46 $203.32 $0 3 yard container weekly $383.79 $268.65 $0 Subsidy Cost per Yard of SW $- $0.31 $1.15 Rate Impact (3 yard weekly) $0 $4.03 $14.94 The Cost of Service method is the additional amount charged to the food waste generator to divert food waste from their garbage. The rate impact would be to businesses identified by Clackamas County as large food waste generators. Bell &Associates, Inc. Page 17 2022 SW Rate Review Report The Current Rate is a 30% subsidized rate for targeted businesses, impacting all commercial customers by $0.31 per collected yard of waste. For example, a business that has three yards of garbage collected once a week, the rate impact is $4.03 per month (3 yards x 4.33 pickups per month x $0.31 per yard) to maintain the program. The current program was implemented to "buy down" the large commercial subsidy identified during the previous rate review. Implementing the Bundled Rate would eliminate the additional food waste charge and allocate the program's cost to all business customers that use a commercial container for service. The rate impact to the business customer with a 3 yard container collected once a week would be $14.94 (3 yards x 4.33 pickups per month x $1.15 per yard) The question for City Council consideration is what rate method should be implemented for the food waste program. en- 140 Bell &Associates, Inc. Page 18 8.2 o�c t COUNCIL REPORT �� o AEG% Subject: Approval of City Council Meeting Minutes Meeting Date: November 15, 2022 Staff Member: Kari Linder, City Recorder Report Date: November 2, 2022 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation 0 Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: ❑ Council Direction 0 Consent Agenda Staff Recommendation: Approve minutes as written. Recommended Language for Motion: Move to approve minutes as written. Project/ Issue Relates To: NA Issue before Council (Highlight Policy Question): NA ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑Not Applicable ATTACHMENTS 1. September 6, 2022, Draft Regular Meeting Minutes 2. September 27, 2022, Draft Special Meeting Minutes Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 CITY COUNCIL REGULAR MEETING rrA MINUTES L September 6, 2022 aREGO� 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 5:32 p.m. on September 6, 2022. The meeting was held both virtually via video conferencing and in person in the Council Chamber at City Hall, 380 A Avenue. 2. ROLL CALL Present: Mayor Buck and Councilors Mboup, Nguyen, Verdick, Rapf, and Manz. Councilor Wendland was excused. Staff Present: Megan Phelan, Assistant City Manager; Evan Boone, City Attorney Pro Tem; Kari Linder, City Recorder; George Burke, Police Chief; Daphne Cissell, Associate Planner; Jessica Numanoglu, Deputy Community Development Director 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PRESENTATIONS 4.1 Proclamation — Lakewood Theater Anniversary Mayor Buck recognized the significant contributions of the Lakewood Theater Company to the quality of life in Lake Oswego (Proclamation — Lakewood Center for the Arts 70th Anniversary). Since staging its first performance in 1952, the Company today is the oldest continuously- operating theater in the Portland metropolitan area. The Lakewood Center for the Arts is the largest arts provider in Clackamas County, and he hailed the Center leadership for their exceptional commitment to the arts and enrichment of the community. Along with opening of their fall show, Blithe Spirit, running September 9 through October 16, the Lakewood Center will celebrate its 70th-anniversary party this coming weekend. 4.2 Proclamation — Hispanic Heritage Month Mayor Buck announced that the City is honored to celebrate Hispanic Heritage Month, from September 15 to October 15 (Proclamation — National Hispanic Heritage Month). As detailed in the Proclamation, this year's theme is "Unidos: Inclusivity for a Stronger Nation", a message that City Council Regular Meeting Minutes Page 1 of 21 September 6, 2022 encourages all to reflect and celebrate the many contributions of Hispanic community members to the vitality of Lake Oswego. A cultural exchange event will kick off the celebrations on Sunday, September 18, from noon to 8:00 p.m. at Millennium Plaza Park. It will include musicians and other artists, traditional dance performances, along with food and various other vendors. Additional information is available on the City website about this and other events celebrating Hispanic Heritage Month in the community. 4.3 Introduction of New Lake Oswego Police Chief George Burke Mayor Buck provided background on the community's high expectations of the City's police department. Over the course of years, the department has worked hard to gain the community's trust through actionable progress and transparent collaboration. Last year's community survey showed 88% of respondents to be very satisfied with the quality of police protection, considered extraordinarily high for communities in the Northwest. Upon Chief Dale Jorgensen's announced retirement earlier in the year, the City had initiated a national search for a leader with the desire and skills to foster the high level of trust between the people of Lake Oswego and their police department. Specifically, the ideal candidate would be capable of continuing the City's traditions of excellence and innovation, someone who could connect with people and share the commitment to a welcoming and inclusive community. Police Chief George Burke, now completing his first day on the job, was introduced by Mayor Buck as the consummate law enforcement professional. He understands that a police department's success depends on building healthy, trusting relationships with the community and he is deeply committed to inclusive, community-oriented policing. His skills in mentoring staff and solving problems will be a great asset. Called on for comments, Chief Burke was welcomed with applause. He expressed his honor at being selected and acknowledged the high bar that has been set for the City's policing. He commended the department's professionalism, noting the importance of their community dialog in recent years. Going forward, he anticipates continued engagement and deepening relationships throughout the community. Development of the strong current staff for the future is a high priority, one that he is excited about. 5. PUBLIC COMMENT • Greg Hayden Mr. Hayden noted that he has lived for 46 years at his home near the North Shore Road bridge. Over the months of the bridge's closure to vehicular traffic, he and many other neighbors have come to appreciate the vast reduction of cut-through traffic and the related safety issues for people and pets. The necessary detour for motorists, he indicated, is not a significant inconvenience. The bridge now conveys large numbers of pedestrians and bicyclists, and he asks that the City explore making the closure permanent. This would allow for only non-vehicular traffic, similar to Portland's Tilikum Crossing. Mayor Buck indicated that the City would consider his comment and follow up. 6. CONSENT AGENDA 6.1 Resolution 22-25, A Resolution of the City Council of the City of Lake Oswego Appointing Evan Boone as the City Attorney Pro Tern Motion: Move to adopt Resolution 22-25. 6.2 Approval of Meeting Minutes City Council Regular Meeting Minutes Page 2 of 21 September 6, 2022 May 24, 2022, Draft Special Meeting Minutes June 7, 2022, Draft Regular Meeting Minutes June 21, 2022, Draft Regular Meeting Minutes July 19, 2022, Draft Regular Meeting Minutes Motion: Move to approve the meeting minutes as written. 6.3 Approval of the Water Treatment Plant Facility Use Agreement with the United States Geological Survey Motion: Move to authorize the City Manager to sign the Facility Use Agreement with the United States Geological Survey for their use of the portion of the Water Treatment Plant's lab space. END CONSENT AGENDA Councilor Rapf moved to adopt the Consent Agenda. Councilor Manz seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Mboup, Nguyen, Verdick, Rapf, and Manz voting `aye'. (6-0) 7. ITEMS REMOVED FROM THE CONSENT AGENDA No items were removed from the Consent Agenda. 8. PUBLIC HEARING 8.1 Appeals of the Development Review Commission's Approval of Type II Tree Removal Applications at 529 8th Street 499-22-000160—TREE (AP 22-03) and at 541 8th Street 499-22-000158-TREE (AP 22-04) In opening the hearing, Mayor Buck first highlighted the consolidated hearing format, which was proposed in place of two separate public hearings. He asked for confirmation that all members present found the format acceptable, and all indicated their endorsement. Mr. Boone reviewed the subject and parameters, both as to inclusion and exclusion, for the quasi- judicial hearing, citing pertinent Lake Oswego Code (LOC) sections. As the hearing will be on the record established before the Development Review Commission (DRC), no new evidence may be presented in the hearing. No issue may be raised on appeal to Council that was not raised with sufficient specificity to enable the Commission and the parties to respond to the Commission. Only persons who appeared before the DRC orally or in writing may testify. Testimony and evidence must be directed toward the applicable criteria, and persons testifying are asked to identify the criteria or standards being addressed so that Council may consider the testimony in relation to the applicable criteria or standards. Time limits for testimony were reviewed as shown in the agenda; however, any person in attendance who qualifies to testify may cede his or her time for testimony to another person who qualifies to testify. Next, he outlined the format for testimony and then noted that, if after deliberation, a motion is made to approve the application with conditions stated in the motion and before the vote, the Applicant may raise constitutional or other issues relating to the motion's proposed conditions of approval with sufficient specificity to allow Council to respond to City Council Regular Meeting Minutes Page 3 of 21 September 6, 2022 the issue. Failure to do so precludes an action for damages in the circuit court. Next, he asked Council members to declare any ex parte contacts, bias on the application or any conflicts of interest. Councilor Manz stated that she had walked by the site and viewed it on two occasions. Mayor Buck noted he also had made a site visit. Mr. Boone asked if there was any objection or challenge to a City Council member's right to consider the appeal. None was heard. Staff Report Ms. Cissell, staff coordinator for the two tree-removal applications, advised that Ms. Numanoglu would be available to address questions after her presentation, as necessary. She next introduced Exhibit F-008 for both records, submitted on behalf of the Applicant. Exhibits G-346 through G- 354 for AP 22-03 (Application 499-22-000160-TREE) and Exhibits G-349 through G-357 for AP- 22-04 (Application 499-22-000158-TREE) were introduced, these being received in opposition to the tree removals; they reiterated previous concerns that have been addressed in the record. The Council Report (Appeals AP 22-03 and AP 22-04) was supplemented with related slides (Presentation — Appeals AP 22-03 and AP 22-04). Ms. Cissell noted that the two tree-removal applications relate to the same property owner on abutting lots within the R-6 zone, a residential medium-density zone. The two properties have historically been developed with a small single- family home. They constitute two legal lots of record that are now proposed by the owner for separate development of two single-family homes. As detailed in the Council Report (p 2), following a public hearing on June 20, the DRC tentatively approved the removal of five trees. The First Addition Neighbors— Forest Hills Neighborhood Association (FAN) subsequently filed a Notice of Intent to Appeal the DRC's decision. At this appeal hearing, staff will focus on Criterion 3, which addresses tree-removal impacts on the character or aesthetics of the neighborhood (Report, p 2-6). The DRC had found that both applications meet the Type II removal criteria. They agreed with staff that the removals would have a significant negative impact on the neighborhood in relation to Criterion 3: specifically, loss of continuity of the neighborhood skyline and removal of 50%or more of a stand of trees. Notwithstanding, the DRC agreed that an exception to Criterion 3 was applicable because there were no reasonable alternatives that allowed the property to be used as permitted in the zone. The DRC and Council have previously found that requiring the Applicant to shrink the size of the dwelling to less than what is allowed by the zone, limiting development to one dwelling or requiring a different dwelling type are not reasonable alternatives. When considering alternative designs, staff considers shifting the building footprint within the buildable envelope, flipping the footprint or reconfiguring it if doing so will maintain the functionality and constructability of the dwelling. The Appellant contends in their appeal that reasonable alternatives to removal do exist and that the DRC erred in finding that an exception to Criterion 3 applied in approving the applications. Displaying related slides, she reviewed background from submission of the original applications through building plan approval. For the south lot, at 529 8" St. (Presentation, p 6-9/18), four Type II removals were approved by the DRC. For the north lot, at 541 8' St. (Presentation, p 10-13/18), five Type II removals were approved; two alternative site plans shown at the DRC hearing (Presentation, p14/18) were not deemed reasonable because any alternatives must comply with code, and neither complies with setbacks. She reiterated that both the DRC and Council have previously found that it is not a reasonable alternative to require the applicant to obtain a variance or reduce the size of the dwelling below what is permitted by the zone. Further, DRC and Council found that it is not a reasonable alternative to require the applicant to construct a different dwelling type, such as a zero-lot-line dwelling, as suggested by one of these site plans. Per the DRC, staff City Council Regular Meeting Minutes Page 4 of 21 September 6, 2022 recommends approval of Tree Removal Application 499-22-000158-TREE and 499-22-000160- TREE. Testimony Testimony of the Appellant Jill Cabral-Schinn (via video conferencing) Ms. Cabral-Schinn noted that she spoke as representative of the First Addition Neighbors and Forest Hills Neighborhood Association. Thanking Council for their consideration of the matter, she emphasized its importance to FAN neighbors, as reflected in their unprecedented number of comments submitted, i.e., over 130, and their Association's unanimous vote to appeal. With accompanying slides (Presentation - Appellant on AP 22-03 and AP 22-04), she provided an overview of her presentation at the DRC hearing, substantiating that the majority of criteria for removal were not met and hence the exception and approval of the applications was in error. The DRC's finding shows obvious disregard of the Tree Code and clear lack of effort to preserve significant trees and integrity of rights of neighboring properties, she asserted. Neighbors are not opposed to development; they simply ask that it be responsible and reasonable, without such a glaring negative impact on their neighborhood. The Appellant contends that the majority of criteria have not been met to allow the exception, resulting in the DRC's erroneous approval of the tree-removal applications. Citing references from Chapter 55, she noted that weather events of the past three years were a factor in determinations of "Fair" condition of some trees on the property. Nonetheless, trees in either "Fair" or "Good" condition are deemed healthy by the City, so five of the nine trees approved for removal meet that standard. The majority of those also meet criteria defining "significant tree", notably that they constitute part of a stand of trees. Significant trees have dwindled greatly, with noticeable effects on the neighborhood that will be catastrophic if allowed to continue (Presentation, p 2-3). She disputed the Applicant's claim that both lots are flat (Presentation, p 4-5); in rainstorms, water rushes down the slope. By leaving more of the trees in place, this water and any erosion effects on this property and downslope neighbors would be easily controlled. With removal of so many trees, stormwater mitigation is necessary, resulting in even more removals. Successive images were displayed to illustrate additional concerns: (1) Change in permeable surface, from one small cottage to two large homes with basements and driveways (Presentation, p 6/16); (2) Increased susceptibility to windthrow for John Dunn's redwood (p 7/16); (3) A major gap in the skyline for surrounding neighbors with removal of 15 trees total, including Type I trees, leaving only three, a massive change in character and aesthetics. The Applicant had stated that no gap in the skyline would result and that, in fact, these were individual trees, not a stand (p 8-13/16). The Appellant called for the Applicant to bear the burden of proving that all options have been explored to preserve more than 50% of this stand, which has not been done. By the time of the DRC hearing, the Applicant had not provided a mitigation plan; assuming one has not yet been provided, this omission should render the applications incomplete and therefore not approvable. If instead the Applicant chooses to pay a fine totaling only $1,215 for removal of nine significant trees, it will require 150-plus years for replacements to reach the current trees' stature. This is deeply disheartening to the Appellant. She asserted that the Applicant simply states there are no alternatives, without describing what, if anything, was explored by way of alternative designs or evidence to support their claim. The Appellant insists on reasonable exploration of alternatives to save more trees on each lot, as seen elsewhere in the neighborhood (p 14/16), e.g., angling the houses, modifying one or both to have a single-car garage, exploring a variance, relocating City Council Regular Meeting Minutes Page 5 of 21 September 6, 2022 driveways and/or surfacing them with permeable material, building closer to significant trees, retaining the property as one lot and building one home sited to preserve more trees. Most obvious is omission of basements, which are included only to increase square footage and the sale price. Basements will be prone to flooding and will increase flooding risks for neighbors. The Applicant's arborist stated before the DRC that omitting or reducing size of basements would allow more trees to be preserved. The Applicant was aware of the tree distribution on the property before buying it, and it is utterly shocking that staff and DRC have deemed this plan acceptable; essentially, it is a clearcutting to build two identical homes with basements. Although the Applicant claims that their development is intended to address the housing crisis and repeatedly mentions HB 2001, Ms. Cabral-Shinn challenges this. As a person employed in affordable-housing advocacy, she attested that multi-million-dollar single-family homes do not address that crisis. Council was asked to put themselves in the place of adjoining neighbors and to consider adverse effects on them. These would include costs of remediating runoff and possible flooding and replacement of shade- loving plants. Particularly on the B Street side, neighboring properties will now be less desirable: bordered by roads and the side of a house, rather than by a stand of trees. Property values and enjoyment of their homes will be affected. Mr. Dunn's redwood tree can be expected to suffer damage, with additional expense to him and perhaps eventual loss of the tree. The Appellant asks that Council hold the Applicant to providing alternative plans to preserve a minimal number of trees as detailed in the displayed image (p 15/16). After detailing how various alternatives might be made feasible, she concluded that two perfectly sizable homes could be built on the property while preserving at least three, if not more, trees. Council was asked to think about the cumulative impact on the neighborhood's tree canopy as a result of the many permits that have been issued for removals (p 16/16). Since 2016, the total Type II Trees removed in the city will soon be 223 if the proposed nine are approved here; in contrast, eight trees have been saved by denied permits over that timeframe. Council should represent all neighbors and what is best for the community as a whole: responsible preservation of trees in symbiosis with development. All community members must be stewards of the land while preserving it for future generations. The Applicant, she concluded, did not adhere to the code and did not provide any viable, legal alternative designs. Therefore, the permits should be declined. Testimony of Individuals in Favor of the Appeal Mayor Buck noted that testimony by Ann Mikulka would include time ceded to her by Pierre Zubrinsky. • Ann Mikulka A resident of the Bryant Neighborhood, Ms. Mikulka requested Council's support for the appeal. She highlighted the massive community response regarding this matter: over 160 comments prior to the DRC hearing, including signatures, per application in opposition to removal of the trees. Secondly, the Applicant has not met certain Tree Code criteria. Citing various code sections, she stated that removal of the nine Type II trees is very likely to have a significant impact on the flow of surface water, existing windbreaks, and the protection of a neighbor's coast redwood. All nine trees are significant, in her opinion, in terms of both size and character. All are very large and clearly visible from nearby streets. Each is part of a grove of trees, which contributes to the forested character of the neighborhood, its tree canopy, and its skyline. Removal would have a significant negative impact on the character and aesthetics of the neighborhood, as shown in photos she displayed. As these trees make up a stand as defined by code, removal of more than 50% of the stand is not allowed. The Applicant's plan to remove much more than that is not City Council Regular Meeting Minutes Page 6 of 21 September 6, 2022 allowed and they have not met exception criteria by demonstrating that there are no viable alternatives. Her belief is that Renaissance Homes is an experienced builder with the expertise to devise a more suitable footprint; she emphasized the City's authority to "consider alternative site plans or the placement of structures that lessen the impact on trees" from exception criteria in the Tree Code. Council is urged to require the Applicant to submit alternative building designs that are reasonable for residents, in contrast to the current unreasonable plan. The Tree Code's purpose is to preserve the city's wooded character and protect trees as a natural resource. Therefore, the City's duty is to interpret and enforce code in the best interest of the entire community, rather than the commercial interests of one developer. The Applicant should be required to submit an alternative design that is viable and reasonable for FAN/Forest Hills residents. Mayor Buck noted that testimony by Betsy Wosko would include time ceded to her by Ann Savage. • Betsy Wosko Ms.Wosko heralded Governor McCall's 1973 foresight in supporting Senate Bill (SB) 100, known as Oregon's Comprehensive Plan, and touched on three important components: (1) It created 19 statewide goals. (2) It required local governments to establish their own comprehensive plans. (3) It established an agency to oversee compliance with the State's comprehensive plan. She recognized Goal 1 as the result of Governor McCall's awareness that development interests would or might have an outsized influence on land use policy and practice and that citizens would provide a necessary check-and-balance against development and commercial interests. In the matter now before Council, this is borne out by the 200 or more comments in opposition between the two applications, as well as the opposition of the home NA. Goal 1 requires strong consideration of these comments and denial of these applications. The applicable portion of Lake Oswego's comprehensive plan supports denial, as well, as found at Healthy Ecosystems, Ordinance 2687, from January of 2016. She enumerated positive benefits of old trees cited there, including prevention of surface runoff and erosion, habitat provided for urban wildlife, and promotion of economic vitality, noise buffering, decreased crime, and increased property values. The State and local comprehensive plans are a land use constitution, she posited. The overriding purpose of SB 100 was to delegate to local governments a fundamental framework in which to consider creation and application of local ordinances, policies and practices. To the extent there is any question, ORS 197.175 (2)(b) explicitly requires cities to enact land use regulations to implement their comprehensive plan provisions. Accordingly, land use in Lake Oswego should be guided by LOC Chapters 50 and 55 (the building and tree codes, respectively). To the degree the City does not regard its comprehensive plan as a constitution, Article 1, Section 20 of the State constitution requires individuals to have equality of treatment with developers in terms of due process and equal protection, she asserted; therefore, saying and applying in policy and practice that the development code trumps the tree code is a myth and is pro-development propaganda. The Chapter 55 exception (i.e., "no reasonable alternatives exist to allow the property to be used as permitted in the zone" at LOC 55.02.080 (3)(b) violates Article 1, Section 20 of the Oregon constitution, as it places the development code ahead of the tree code; rather, they should be given equal footing. As to Chapter 55, Tree Code considerations weigh in favor of preserving these trees. Per LOC 55.02.08, their removal would have a significant impact on the character and aesthetics of the neighborhood and would reduce property values. Among other impacts, the skyline would be affected drastically, wildlife habitat decreased, and less rainwater absorption, carbon sequestration, and shade would be available. Chapter 55 considerations alone and as interpreted through the City's comprehensive plan weigh strongly in favor of denying the City Council Regular Meeting Minutes Page 7 of 21 September 6, 2022 applications. The smaller mitigation trees would not come close to matching the benefits of the existing ones, and the City's application of the tree and development codes has been skewed too favorably to private property and commercial interests, in both policy and practice. As noted earlier, in First Addition the vast majority of Type II applications since 2016 have been approved. These two applications should now be considered within the context of hundreds of similar applications. The City must and should consider the cumulative impact of tree removal, especially in light of the climate crisis and loss of biodiversity. Developers prefer tree removal because it is easier and more profitable to clearcut than to preserve. That is neither a good nor justifiable reason for removal and would violate the City's comprehensive plan; Tree Code considerations and public policy also weigh strongly in favor of denial of the applications. Council is therefore asked to require the Applicant to spare all of these trees and instead build a single-story or two- story home on the existing footprint where a home has been on the property for decades. Overturning of the DRC decision and denial of these applications is requested. • Mark Puhlman Mr. Puhlman introduced himself as a 10-year resident of the Forest Highlands Neighborhood and current member of the Sustainability Advisory Board (SAB). He joins in requesting approval of the appeal and denial of the Type II tree removal applications. The trees in question satisfy all criteria of LOC 55.02.080 for being saved, he stated. They have not outgrown the setting; their removal would impact drainage adversely, while lost benefits of the trees would include their significant contribution to the skyline and screening of nearby homes, all mentioned in the applicable code. Additionally, the Applicant is asking to remove more than 50% of a stand of trees, which is disallowed. The key issue, he believes, is a misinterpretation of LOC Chapter 55 (Tree Code). This misinterpretation allows developers to remove any tree that interferes with construction of any structure that is allowed by Chapter 50 (the building code). The Applicant states, and the DRC concurs, that there is "...no reasonable alternative to allow the property to be used within the zone". This code language allows anyone to twist the original meaning, allowing the removal of any tree that is in the way of construction, and that is not the meaning of the code, in his view. Though the word reasonable is often seen in U.S. common law, it does not mean that proposed alternatives to the plan cannot cost the developer money or time. He likened this situation to financial and other responsibilities of employers under the Americans with Disabilities Act: The Applicant here, if necessary, should be required to change the building plans to accommodate mature trees in the area. Changes should include omitting the basement and not subdividing the property. Only one home should be built on the property, or perhaps two smaller ones or a duplex to accommodate middle-income residents. He posed other questions of reasonableness, including (1) requiring a duplex that could provide two middle-income homes, in the spirit of HB 2001, rather than pricing such residents out of Lake Oswego in favor of two multi-million-dollar homes; and (2) denying basements for the houses, so as to decrease the amount of excavation and protect these mature trees. Though he considers them reasonable, the Applicant has not presented them as viable alternatives. If that is based on cost concerns for the builder, it is not reasonable. In approving these applications, the DRC had explained that they felt compelled by City interpretation of the Tree Code to approve these applications. Despite SAB and DRC memos to Council in 2019 and 2020 encouraging changes to that code, changes have not been made. Concluding, he noted that supporters of this appeal are aware that the development should and will happen, but the land and aesthetics of the neighborhood must not be neglected. They implore Council to deny the applications and uphold the appeal as the only reasonable course of action. • Terri Kraemer City Council Regular Meeting Minutes Page 8 of 21 September 6, 2022 Ms. Kraemer explained that her home is next door, downhill from the Applicant's property on 8th St., and she is concerned about surface-water damage if the trees are removed. The City's topographical map shows an eight- to 10-foot elevation drop from the Applicant's property to her and an adjacent neighbor's properties, yet the Applicant states that with proposed mitigation measures, the tree removals will have no negative impact on surface water. However, the Applicant did not provide any mitigation measures and claims that the surface water currently absorbed by all of the trees on his property will not have a negative impact on the downhill property. This makes no sense to her. City staff reported that, after completion of stormwater management required with development, there will not be a significant impact on the flow of surface water; however, staff failed to address the fact that removal of the trees will cause surface- water disruption that must be mitigated, regardless of what Renaissance Homes decides to do with the property or how long it takes to develop it. Because trees store and intercept water, significant disruption to the flow of water is foreseeable, as is damage to her property from diverted water. She believes the DRC erred in upholding the Type II tree-removal applications and that the Applicant must do surface-water mitigation to prevent damage to her property. Having lived there for over 12 years, she affirmed the accuracy of information on the City website about chronic localized flooding in First Addition, and often on her property where it abuts the Applicant's. Council is asked to reverse the DRC's decision and deny both of the Type II removal applications, as surface-water mitigation is required regardless of development and has not been addressed at all by the Applicant. She referenced pertinent code in LOC 55.02.080 (2). Additionally, all privacy she has enjoyed will be lost when trees along the lot line are removed; although she expected this property to be developed one day, she had never anticipated a builder being allowed to remove all of these trees. Finally, she emphasized the importance of truth: In its application, Renaissance Homes had stated that the proposed tree removals would not alter the neighborhood skyline, that they are not removing more than 50% of the stand of trees, that the lots are flat or nearly flat, and that, considering proposed mitigation measures, there will not be a negative impact on surface water. None of these being true, she asked, why would the City believe that the Applicant has considered all alternatives and found no alternative but to shift the footprint slightly to save one tree? Her belief is that reasonable alternatives exist and should be considered. Based on the purpose of the Tree Code, the City has an opportunity and an obligation to save trees on these lots. Council should interpret the Tree Code in a legally-sound manner that allows for development in order to save some of the trees. She asked that the DRC's decision be reversed, with these Type II removal applications denied and the appeal approved. • Stuart Eckmann Mr. Eckmann noted that he and his wife live next door to Ms. Kraemer and adjacent to the properties in question. They share her concerns with regard to privacy, runoff, and surface-water damage, particularly when the application initially stated that the lots were flat. They also share the concerns of John Dunn, the neighbor with the redwood directly across the alley from the trees to be removed, and its probable exposure to wind shear. This developer, he opined, is proposing what works for him, without reference to how it impacts the neighborhood. He joins in asking that Council reverse the DRC's decision to approve the plans for building of the two houses at 529 and 541 8th St. It was the wrong decision, and they disagree with staffs statement, citing "The alternatives to the tree removal have been considered, and no reasonable alternatives exist to allow the properties to be used as permitted in the zone". Specifically, when staff asked the Appellant to provide reasonable alternative designs, only the same design was submitted, flipped or slightly repositioned on the lot, and it definitely does not provide an alternative design. • Lois Eckmann City Council Regular Meeting Minutes Page 9 of 21 September 6, 2022 Ms. Eckmann observed that the Renaissance Homes website shows various standard plans that are based on criteria or limitations of the particular lot, including a section on narrow lots. Although more creative aspects of this could have been employed on these lots, that was not presented as an alternative. Council is asked to consider other houses in the neighborhood constructed in recent years, where some significant trees were retained without clearcutting everything. Two such houses on B Avenue were described; one at the 8th St. intersection directly across from the subject property had been able to accommodate an old-growth tree surprisingly close to the new structure. This was achieved simply by building a partial basement with space left near the tree to maintain its root structure, demonstrating that tree preservation with new development can be done. For the lots in question, staff did ask for reasonable alternatives; however, what they accepted from the Applicant was only the repositioning of the plans, not a design alternative. Therefore, Council is requested to overrule the DRC decision, with staff and the Applicant to explore design alternatives as they should have done. To expect this from some developers and not from others creates, at the very least, a perception of differential treatment. Providing alternative plans to save more trees, she concluded, is a reasonable request of Renaissance Homes, given the description on its website as both a "customer builder" and a "green builder". • Written Public Testimony is found in the meeting materials for Agenda Item 8.1. Testimony of the Applicant Kelly McCall, Renaissance Homes, introducing herself as the permit coordinator from Renaissance Homes, provided an overview of the timeline, beginning February 11, 2022, with submission of the application and posting of signs for the removal of 10 trees on two separate legal lots. At the end of the public comment period on February 16 and due to the overwhelming number of comments and attention received, the City questioned the removal of six of these trees. The application was placed on hold to enable to the Applicant to provide more evidence in support of the removals. The Applicant then (1) explored the root structures, under the supervision of TRAQ-certified arborist Mary Giersch, (2) submitted a site plan clearly lining out the excavation for foundations and shoring methods required for new code-compliant homes, and (3) retested infiltration rates at different locations and depths; this enabled them to reduce the size of the stormwater facilities and consequently to preserve one tree on 8th St. The City responded on March 24, convinced that three additional trees could still be saved. In response, the Applicant explored further with hydro excavation, and discovered root systems even more extensive than detected previously. At this point, they submitted more alternative site plans to show that both sites cannot be developed without the removal of nine proposed trees. These entailed increasing the front setbacks of both homes to retain two additional trees along 8th, i.e., one Type I and one Type II. Additionally, the City was furnished with more information, specific to each tree, from the Applicant's arborist,justifying the removals in relation to both projects. A 33-inch Douglas fir was included, based on the recommendations of both Ms. Giersch and the City's arborist. After further consultation with City staff, the Applicant was able to submit final evidence and supporting materials on April 15, which initiated the new comment period on April 22. Three months after the original application had been submitted, City staff tentatively approved this application. On the May 20 deadline, a formal appeal was received. This extended the project timeline to meeting with the DRC on June 20. At that meeting, the DRC decided in favor of the application, but on July 15 it was appealed to the City Council. As the Council does not meet in August, the timeline was extended another month to this appeal hearing. Neither construction nor demolition of the existing house can begin until the tree-removal situation has been determined. In the meantime, the Applicant has worked very closely with staff to ensure compliance with the City's application City Council Regular Meeting Minutes Page 10 of 21 September 6, 2022 procedures. The Applicant has provided clear evidence that is certainly above the standards expected from a typical homeowner, she noted. They have fully justified the removal of all trees for which applications are submitted, and Council is encouraged to deny this appeal and allow the Applicant to move forward with their project today. For Council's awareness, Ms. McCall spoke briefly about unpleasant public attacks from neighbors near the project site and from other community members. This included a neighbor who approached the Applicant in a very hostile manner following the announcement of the DRC's decision, as well as police responses on two occasions for trespassers posting extremely rude and distasteful propaganda on the Applicant's property. Threatening people who are constructing housing is utterly inappropriate; their company has built hundreds of homes, and she intends to stand behind their project. She also wants everyone, including her family, to be safe, and asks for an end to the hostility now to enable their project to move forward. There is no merit in drawing the process out any further, she concluded. In response to a question from Councilor Rapf, Ms. McCall described the nature of various encounters that she regarded as threatening to her company and/or their employees, e.g., instructing nearby schoolchildren to write certain verbiage on the sidewalk in chalk. Mayor Buck indicated that this exchange did not address the criteria. In relation to comments heard in earlier testimony, people wanted to know what other alternative designs the Applicant had considered beyond shifting the design back on the property to preserve trees along 8' St. Mayor Buck asked what other alternative designs they considered throughout the process, based on the record. Ms. McCall explained that moving the basement had been considered at one point. However, after consultation with their arborist and doing more of the exploratory trenching and hydro excavation, they realized that even with a traditional foundation or no basement, the tree-removal situation would be the same. Councilor Mboup asked Ms. McCall to address a report from ArborPro, and she stated that she had not seen that report and could not speak to it. The Applicant's arborist had agreed with the City's arborist, and that provided them the necessary verification. Jamie Howslev, Jordan Ramis PC, continued the Applicant's Presentation. As attorney for the Renaissance project, he referenced his letter to the City dated September 6 (Written Public Testimony) outlining the Applicant's legal response to the appeal. They agree with the DRC and City staff that all of the applicable criteria have been met and therefore the appeal should be denied. The crux of this appeal is that Renaissance failed to consider reasonable alternatives, but it fails for these reasons: (1) Renaissance is not required to look at every possible permutation on the lots. In concluding that the criteria had been met, staff and the DRC averted a subjective search without end, as well as violations of the clear and objective criteria and the State law. (2) As correctly explained in the staff report, under Exception (3)(b), the City of Lake Oswego has already established in other cases that a builder is essentially enabled to use the full buildable area of a lot and is not required to do things such as variances in order to be allowed tree removal. The Applicant has met their burden of proof, supported by substantial evidence in the record, not only from their arborist, but confirmed by the City's arborist. (3)The Appellant's desire for smaller houses and designs that provide additional tree preservation is not supported by LOC 55.02.080 essentially because the designs submitted by the Applicant are permitted outright in the zone. Conversely, the code does not require or provide any authority for the City to mandate that they reduce the house size, as the appeal assumes. As detailed in his letter and related attachments (Written Public Testimony, p 1-2/46), changes implemented with ORS 197.303(1) apply to nearly all housing types. The Applicant believes that Lake Oswego's tree ordinance fails to meet the City Council Regular Meeting Minutes Page 11 of 21 September 6, 2022 requirements of this "needed-housing" statute because it lacks clear and objective criteria. He highlighted two significant reversals achieved by his firm in front of the Land Use Board of Appeals (LUBA), along with another in the Lane County area, among other examples related to jurisdictions applying criteria that are not clear and objective. The Applicant is concerned that now, five years after enactment of the statute and two years after local governments were informed by the Land Conservation and Development Commission (LCDC) that their codes may no longer be compliant with state law, the City continues to resolve conflicts between tree preservation and housing development using discretionary criteria. Specific code issues are discussed in the letter (p 2-6/46). The Appellant's assertions failed to demonstrate an error, and therefore Council should deny the appeal. With regard to "needed housing", the City is long overdue in aligning itself with the legislature's clear requirements and in ceasing to impose subjective criteria. He offered his firm's experience in doing so. On a personal note, he stated that, while recognizing that this is not a popularity contest, he had witnessed some comments after the DRC hearing which he viewed as a threat. Having done this work for over two decades, in two states and probably more than 100 jurisdictions, this is the first time he has felt threatened in an urban setting. Councilor Mboup raised questions about the legality and objectivity of the City's ordinances and whether or not Oregon legislators had multi-million-dollar housing in mind when they worked on housing needs. After offering background on the "needed-housing" statute, Mr. Howsley opined that it encompasses housing from lowest-income to the most expensive house in the state, excluding Portland. He referenced the Applicant's letter for citations of where they believe the City's Tree Code departs from clear and objective criteria, as noted earlier. Mr. Boone suggested that if Council wished to discuss these questions, it should be during deliberations. Randy Sebastian, Renaissance Homes, final speaker for the Applicant, introduced himself as president of the organization developing this property. Most of his friends in construction no longer build in Lake Oswego because of the community enmity they have experienced, he indicated. As the prior U.S. president had normalized bullying, civility had been lost. The result was reflected in the jeering of the Appellant, including their staff, at the DRC hearing. Some of the people attending that meeting were present at the current appeal hearing; he singled out one threat that had been directed at him at the DRC meeting. After taking the issue to the Lake Oswego Police and being referred to the county sheriff's office, he dropped it. He vowed to continue Renaissance building work in the community, recognizing this as the environment that exists and one that his friends have chosen to avoid. Regarding discussion heard earlier on the urban growth boundary, which he supports, he asked Council members if they were aware that only 2% of the land mass in Oregon is allowed for residential housing, a result of Governor McCall's great foresight with SB 100 in 1973. Though this is not a lot of land, the Applicant does all they can to build within it. Next, he provided background on his family's strong connection to the city, starting with his great-grandparents' home and farm property within present-day First Addition. He dismissed claims he has heard that the trees are 150 years old; they are no more than 80 or perhaps 100. Despite concerns heard about these high-end homes that are not covered under"needed housing", people need to understand that all housing helps. Someone buying one of these homes will sell another house, he explained, with someone then buying their first home; the domino effect is ongoing. Renaissance Homes is Lake Oswego's largest builder in terms of permits, but they regard it as a contentious place to work. He credited their staff, along with the City's, for working effectively in a very good relationship. As the community is his home and his office has been here since 2004, he does not plan to leave. His 32 employees and subcontractors enjoy building here. He asks that Council stand by City staff and the DRC and do not allow the bullying, mistruths, and other effects on his company. The threats, postings, trespassing, and City Council Regular Meeting Minutes Page 12 of 21 September 6, 2022 need for police intervention should stop. If they do not, civility in Lake Oswego loses, along with needed housing and codes to which the Applicant is adhering. Appellant's Rebuttal Jill Cabral-Schinn (via video conferencing) Ms. Cabral-Schinn first addressed the Applicant's references to incivilities by persons in support of the appeal: Students at the nearby school were not instructed to write messages in chalk on the sidewalk nor were any children forced to do anything. She acknowledged that one neighbor had written in chalk simply "Save more trees" prior to the 4th of July parade. The same message had also been posted on signs in some residents' yards, and a sandwich board displayed some of the documents submitted to the DRC and a few Lorax pictures. As to the verbal attack, that was one person who made an emotional comment. Ms. Cabral-Schinn stated she did not condone that and affirmed it had occurred, but that the person had recognized immediately that she was in the wrong. Mr. Sebastian, however, had failed to mention a photo of this woman he had posted on social media and other things he has said about her and others supporting this appeal. She suggested that Council members review the DRC hearings, the comments of appeal supporters, and consider their own experience at this hearing; in her view, none of the supporters have been anything other than civil and respectful. Mr. Sebastian's categorization of their supporters as violent, etc., is not appreciated. One person made an emotional mistake and a couple of passionate people displayed signs in their own yards. She then summarized the ways this application fails to meet the code: (1) These are significant, healthy trees in the only stand within many blocks. (2) They are important features and assets of the neighborhood, especially to neighbors in close proximity. (3) The property is not flat, and surface water and erosion will be issues for these and neighboring lots. (4) The neighbor's redwood is at great risk if the current plan is carried out. (5) Removal of these trees will drastically change the skyline, leave a large gap, and most certainly change neighborhood aesthetics. (6) The plan calls for removal of much more than 50% of the stand: nine Type II plus six other trees, for a total of 15 trees, leaving three in place. Removals will represent 83% of the stand. (7)Alternatives exist and should be explored, and the Applicant must bear that burden. Exploring alternative designs should mean exploring alternative design plans, not just moving around the same design and proving that it doesn't work. (8) None of the alternatives mentioned at this hearing had been mentioned in either application, and in most respects, this is the first she has heard of them. At the DRC hearing, the Applicant's arborist had stated that at least one tree could be saved if basements were omitted; however, earlier in this appeal hearing they had reported they explored that possibility, but that was a moot point. The Appellant asks for the meaning of that, along with the supporting data and explanation. She echoed Ms. Kraemer's testimony in questioning the truth of the Applicant's statement that alternatives had been explored, since they had made continuous false statements throughout the application. Council has the power to clarify verbiage related to exceptions and not allow another applicant to slip through the loophole; it has become such an expectation of developers that Mr. Sebastian came to this hearing prepared with an argument about the Tree Code's lack of enforceability. Concluding, she reiterated that the Appellant is all for development that is responsible, reasonable, and in compliance with the code, while taking the rights and interests of all citizens into account. Council is asked to represent the neighbors who will be affected by these tree removals and also the community and its best interests. All of their property rights should matter, too. Questions of Staff City Council Regular Meeting Minutes Page 13 of 21 September 6, 2022 Councilor Manz requested confirmation that pre-existing stormwater conditions had been taken into consideration. Ms. Numanoglu advised that the plans have been reviewed by staff and found to comply, but the permit will not be issued until the tree permit is resolved. She and Mr. Boone responded to related questions of stormwater removal and mitigation as relevant to the Tree Code. Councilor Manz inquired about the arborist's report that had been discussed earlier. Ms. Cissell clarified that the Applicant's arborist, Ms. Giersch, had prepared the only arborist's report, submitted as part of the application. Additionally, the City's contract arborist visited the site and prepared staff findings that are in the record. The ArborPro report referenced earlier should not be considered in Council's deliberations as it was discussed at the DRC hearing but not submitted. Councilor Mboup asked whether staff's work on this matter takes into account the current climate crisis and loss of diversity. Ms. Cissell explained that these are not part of the Type II criteria for tree removal, which are the criteria considered by staff. Councilor Mboup next asked: Since neighbors and NAs say that alternatives do exist, does staff believe that there are alternatives other than cutting nine trees to mitigate? Ms. Numanoglu noted that staff had presented the alternatives in their report that they will typically consider as reasonable alternatives. Displaying the site plan (Presentation — Appeals AP 22-03 and AP 22-04, p 3/18), she emphasized that alternatives can be required to save additional trees, but only if it meets code, e.g., shifting the footprint in such a way that it meets code setback standards without removing even more trees. In this case, the building design plan is maximized, but as allowed in the R-6 zone, and other shifts in placement will not save additional trees. Additionally, constructability and functionality of the structure must be considered; she cited examples of alternatives that are not considered reasonable or functional. Regarding two specific trees, Ms. Cissell indicated that staff also had questioned removal, but learned that both were in poor condition and not candidates for retention. At the DRC hearing she came to understand that only the arborists for the Applicant and the City had looked at the trees closely; Mr. Boone confirmed this was shown in the record. Councilor Mboup asked if it could be considered a reasonable alternative if building of these two houses as proposed would impact an existing neighbor's house, i.e., Ms. Kraemer's, as heard in testimony; given that, should removal of the nine trees be allowed? Ms. Numanoglu noted that, had the Applicant not proposed any sort of mitigation measures and simply removed the trees, there would be a negative impact and the removals therefore disallowed. She discussed the City's permits process and the need to issue the removal and building permits together. The City will not allow the Applicant to remove the trees and then not build anything. This is an improbable scenario after an applicant has completed both permit processes. In this case, the plans show stormwater chambers and lines, and they have been reviewed by staff and found to comply with the stormwater-management regulations. Mayor Buck inquired about reasons for the greater side yard setback here in the R-6 zone, i.e., 7%feet, as compared to certain other zones. Ms. Numanoglu advised that the 7%feet pertains to all new development in the zone, as with these dwellings. In responding to related questions, she noted that the 6,000-square-foot lot in this zone is not large, compared to lots where more space would allow greater flexibility with placements. Having heard in some testimony that no mitigation plan has been submitted and therefore no mitigation will be done, Mayor Buck requested clarification. Ms. Numanoglu explained that mitigation is not a criterion for approval; rather, it is a requirement. If an applicant is approved for removal of any Type II trees, they are required to mitigate at a 1:1 ratio; it is not a criterion for approval, so it is not a basis for rejecting an application. Many times, as in this instance, the City may even require mitigation beyond the 1:1 ratio. The Applicant has not submitted a mitigation plan, but it is a condition of approval. She affirmed that if these applications are approved, staff would then require the Applicant to submit a mitigation plan. Responding to additional questions, Ms. Numanoglu advised that staff would City Council Regular Meeting Minutes Page 14 of 21 September 6, 2022 make the approval decision on that plan. She reviewed the conditional approval as written by staff, which required the Applicant to replant 10 mitigation trees between the two lots, with specific size requirements for deciduous and evergreen trees. In the event all 10 trees cannot be fit onto the lots, the code affords flexibility by allowing the Applicant to pay into the Tree Fund; however, staff must first review and agree that the space is insufficient. If Council is seeking opportunities for enhanced mitigation, the conditioning authority in the Tree Code allows Council to call for that; for example, larger-stature evergreens might be required for mitigation of some trees, though realistically not all 10. In terms of adding more trees, she emphasized the need to consider site constraints: building footprint, underground utilities, existing trees that must remain, and narrow side-yard setbacks. In addition, there is a Community Development Code requirement that for new dwellings in the R-6 zone, two new street trees must be planted. Given certain limitations of this property, she explained how staff believes at least two large-scale evergreens could be required as street trees, along with three others on the lots, for a total of about five large-scale evergreens. Together with the three trees that must be planted on the site, this would leave seven for the Applicant to mitigate. Of those, staff suggests that they be allowed flexibility, either to plant other appropriate-sized trees, all native, or pay into the Tree Fund if space is not sufficient. While acknowledging that the ultimate goal is to plant all of the mitigation trees on site, realism must also be applied. Where a site is overcrowded, staff has seen the new owner begin to remove trees, which is not desirable. Therefore, the plan should be realistic and reasonable, allowing adequate growing space, rather than creating conflicts for the future. Addressing questions from Councilor Nguyen about the nine trees slated for removal, Ms. Cissell advised that four of the nine are deemed in "Poor" condition; those rated "Fair" or"Good" are considered healthy by the City's arborist. Of the latter five trees, all of which are rated `fair', three are within the building footprints and one (Tree 10302) is near the location of basement excavation and sewer lines (Presentation —Appeals AP 22-03 and AP 22-04, p 3/18); another is requested for removal because it is part of the stand of trees and therefore not a good candidate for retention if the other trees are removed. Mayor Buck requested any feedback staff might have on the Applicant's comment regarding Tree 10302 to the effect that its removal is necessary to meet shoring requirements for the basement excavation. However, a subsequent comment was made that even without the basement, that tree would need to be removed. Ms. Numanoglu pointed out the stormwater line along the lot's south property line; if placed on the north side, the stormwater facility would necessitate removal of that tree. She affirmed that there is no alternative location for that utility because if it was moved to the north side, the large tree could not be retained. At Councilor Manz's request, Ms. Numanoglu clarified the suggested location for the new street trees in the large right-of-way north of the property line. As such, the street trees would be the responsibility of the property owner. With regard to neighborhood character and sightlines, she confirmed that Councilor Manz is correct in believing the City has determined the trees requested for removal to be significant. The trees may not be removed without approval of the exception under Subsection 3 (b), Mr. Boone added, i.e., related to the reasonable alternatives, among other grounds found by both staff and the DRC. Councilor Verdick asked who would bear responsibility for care and maintenance of the street trees mentioned by Councilor Manz. Ms. Numanoglu stated that the property owner will be responsible for both the street and onsite trees. For all Type II permits associated with building permits, the City inspects 100% of the mitigation; this ensures that all of the trees are planted before the final inspection is done. Staffing capacity does not allow the City to follow up on all City Council Regular Meeting Minutes Page 15 of 21 September 6, 2022 mitigation in the city. However, in an instance of unauthorized removal or a maintenance issue with a tree, the City typically receives a complaint and follows up for compliance. Mr. Boone cited other pertinent code references on which Council might consider basing a condition of approval. Councilor Mboup expressed his need for clarification of the code references to "clear and objective" with regard to saving some of the nine trees. He asked what could be done to communicate to the Applicant that certain healthy trees should not be removed. Mr. Boone advised that the question about the "clear and objective" standards raised by the Applicant's attorney pertains to the State statute that requires the criteria be clear and objective. However, there are circumstances in which, under the City code, removal of healthy trees is allowed; the question before Council now is: Have each of the criteria been met? In essence, the answer must be based on (1)whether or not alternatives have been considered; (2)a finding that no reasonable alternatives exist to allow the property to be used as permitted in the zone, and if so, then (3) there is an exception found under Criterion 3. Due to that exception, and if Criteria 1, 2, 4, and 5 have been met, the removal can proceed. Ms. Numanoglu responded to Mayor Buck's request for clarification of the mitigation plan. Councilor Nguyen followed up with questions about condition of specific trees on the two lots. In responding, Mr. Boone pointed out that health of the tree is only one of several sub-criteria for establishing whether or not it is a "significant tree"; that determination is one of the elements of the code's Criterion 3. In the context of a Type II removal request, a tree's health relative to its condition is only important as one of those criteria. Agreeing, Councilor Nguyen noted that with Council's full faith in the ability of staff to interpret code, this degree of detailed exploration should not be required of the policymakers. When Council identifies code that is not in accord with the spirit and intent of the community, that needs to be addressed. Staff, however, is charged with interpretation and enforcement of code, and ensuring that permit applications meet the approved code. The need for policy change can be considered during deliberations, when Council takes a broader view: What is the intent or spirit of this ordinance? Mr. Boone concurred, adding that legislating is for a time other than at this hearing. The question now before the Council is: What does the existing code require, as we interpret it based upon the legislative history since it was adopted, as heard by this Council, and as decided by the DRC? Councilor Nguyen acknowledged this, stating that Council is required to make the decision based on the code that is currently in effect. In response to inquiry from Councilor Mboup about his right to interpret this code by the spirit rather than the letter of the law, Mr. Boone emphasized that code is interpreted on the basis of determining what the legislative body intended at the time of its adoption. That is done by looking at the code's (1) text, (2) context, (3) legislative history, particularly staff commentary accompanying the annual code amendments, and (4) rules of construction. After verifying that the pertinent property address is 529 8th St., Mayor Buck called for deliberation on AP 22-03. Mayor Buck moved to tentatively affirm the Commission's decision to approve the tree removal application 499-22-000160-TREE with the following conditions of approval: that, of the street trees required, we require one large evergreen tree; and of the onsite mitigation trees required, we require two large evergreen trees to be planted; and in addition, we require the City to ensure the owner maintains the health of all the mitigation trees for a period of twelve months. Councilor Rapf seconded the motion. Responding to requests for clarification from Council members, Mr. Boone explained that the hearing format requires Council to ultimately make two separate decisions because a party may City Council Regular Meeting Minutes Page 16 of 21 September 6, 2022 decide to appeal one and not the other. Also prior to deliberations, he apologized to the Council for not addressing earlier in this hearing the issues people brought forth, that in fact, none of these are in the record because they obviously occurred after the DRC hearing. Council therefore should disregard that, to the extent it may be weighed as a factor. Secondly, he suggested that Council first consider the analysis based on the Tree Code. Mayor Buck asked about comments in this hearing by Mr. Howsley, the Applicant's counsel, discussing court cases decided as recently as the previous week: Are these comments in the record? Mr. Boone advised that they are not in the record, but more a sort of general legal argument by Mr. Howsley. Mayor Buck, having read through the hundreds of comments submitted regarding these appeals, thanked community members for their efforts. He described the extensive research he had done to explore the historical context of the Tree Code provision that is central to the appeals, and specifically the question of alternative designs. Specifically, he sought to identify what the City Council had in mind at the time they adopted the pertinent Tree Code provisions. He learned that efforts to determine the best balance of development and conservation of natural resources has been ongoing for decades. Despite today's concerns, some of which have been heard for over 20 years, he also recognizes positive movement by the City with regard to the tree canopy and to investment in publicly-owned natural areas. Along with considerable development around the city over the past two decades, he has seen treed character maintained. As painful as individual tree removals continue to be, he believes it also draws attention to the bigger picture: how carefully applications for removal are considered and how attention has been drawn to the many trees that are not cared for properly. The latter is demonstrated by the decayed condition of trees on the property in question, which he finds appalling. As noted earlier, more trees are being lost because of lack of care and stewardship than through these Type II permit approvals. The monitoring offered by the permit process, including the strong public engagement explicitly required, is important. Yet the entire urban forest cannot be preserved only through that process. Regarding compliance with criteria in this appeal, he joined others in wishing the Applicant had proposed a home that would work around some of the existing trees or at least those deemed healthy. He recognizes that the initial plans had been changed modestly to preserve the three healthy trees along A Avenue. However, the code is clear that restrictions cannot conflict with the requirements of the zone or the use; while it would seem the Applicant should be required to build a smaller home on this lot or to build one house on the combined property, these are not legal options that are before the Council. Some of the Council members' arguments might be considered in a different scenario, e.g., where the property owner sought to build affordable multi-family housing or middle housing and the number of units might be restricted. However, Mayor Buck is in favor of ensuring that the approved plan, with its enhanced mitigation, really addresses the need to replace much of what is lost. He is concerned that if Council denies the permits here and the matter is taken to court and the City loses, all of that enhanced mitigation also will be lost. In that situation, not only will the property be developed, but the City will have no say in what is planted there in return; this is a risk he is unwilling to take. At this time the mitigation is within the City's control, and Council should now ensure that these conditions of approval will return some of the large-growth trees and ultimately the ecological value so many have mentioned. Councilor Rapf commended the Mayor's remarks. He indicated he would vote to affirm the DRC's decision, largely based on the property rights issue. In a society where people own property of value and neighbors encroach on that value or tell neighbors what they can or cannot do, it exacerbates a situation that now is being seen: people looking over the fence, whispering and yelling at one another, rather than having civil conversations. He likened this matter to the right to have children without asking the neighbor's approval. A neighbor should not have the right to tell him what he can do on his property, and therefore he supports this motion. City Council Regular Meeting Minutes Page 17 of 21 September 6, 2022 Councilor Mboup indicated he takes an opposing view: Property owners do not have the right to do anything they want on their property, e.g., making excessive noise at midnight, just as they cannot destroy the environment on their property. The many benefits of trees and the air around us belong to everyone. The decision for him is simple: There are laws, including city code, but people are people; while he respects Mr. Sebastian, Councilor Mboup stated that he will never forfeit or negotiate on children, education, and nature. As an educator himself, he asserts that removal of these trees will impact the children at his school. City code is written by people, i.e., Council. If Council denies permits in this case, the Applicant's attorney may take the City to court on the "clear and objective" issue of ORS 197.3, but will not win. This is the people's city, and there is no objectivity to removing these trees, he stated; therefore, he will vote against the motion. Councilor Nguyen noted that, in considering the two appeals separately, he had learned that the northerly lot (AP 22-04) has four trees in "Poor" condition and one rated "Fair", hence the request calls for removal of only one tree that is not likely to remain viable for the longer term. The appeal now being considered, for the southerly lot, presents a more difficult decision for him. This entails removal of four trees considered healthy, all in "Fair" condition. He will not necessarily oppose it, but wants to see another good-faith effort from the Applicant to provide an alternative that would save one or two more of these -Fair" trees for the sake of the community; all possible permutations are not expected. He called on the Applicant, as a fellow Lake Oswego business owner and resident, to consider the importance of good relationships with the community. As compared to more formidable sites where houses have been built, e.g., lakeside lots that are very steep and/or narrow, he sees the site here to be less challenging. He would support the DRC's decision to approve the application for the northerly lot, but wishes to see this additional step taken on the southerly lot. Councilor Manz expressed gratitude to all who have participated in this process, including all who have testified, the volunteer DRC, staff, and neighbors. She emphasized that her role as a Council member in this hearing is to determine if the DRC decisions on these appeals meet code and if code was applied objectively; in this quasi-judicial hearing, the rules cannot be changed without new legislation. As the Mayor had noted, the issue has been ongoing for decades. She, too, had looked back for more context, and believes it may be time to review the development and/or tree codes. That remains to be determined. She urged those who are working on either side of the issue to continue providing feedback to Council; that is the basis for the best decision- making. Given the community's high level of involvement in this application process, together with concerns voiced about the rapid pace of development in numerous neighborhoods, she asked that the community convey to Council their ideas for legislative solutions. As to the task at hand, she will vote in favor of the Mayor's motion and its included conditions of approval. Mayor Buck pointed out an earlier concern he had, like Councilor Nguyen, about the adequacy of alternative design solutions for this lot. Specifically citing obstacles to a reduced basement, he reiterated that if this appeal is denied, his concern is that if the Applicant proceeds with a court action and the City loses, they will lose the ability to mitigate. In response, Councilor Nguyen opined that neither he nor any of the parties are seeking a court action; for the benefit of everyone involved, it is unfair that people feel their voices are not being heard. Regarding this lot, while it is not required by law, offering an additional design alternative(s) would be the right thing for the Applicant to do. Differentiating the law from what is good for the community, he suggested it would demonstrate the Applicant's good faith and also help the Council in its decision-making. He clarified that, while he would currently endorse approving the tree removal requested in AP 22- 04, on the matter now before Council he suggests remand back to the DRC. City Council Regular Meeting Minutes Page 18 of 21 September 6, 2022 Mr. Boone reviewed the options available to Council: to approve, to approve with conditions or to deny. It would be up to the Applicant whether or not to remand, but a Council motion including that would essentially constitute a denial because Council found that the criteria were not met. Following additional comments from Councilors Mboup, Nguyen, and Mayor Buck about the Council's role at this hearing, Councilor Rapf echoed concerns heard earlier from Council colleagues: Significant risk of losing options may follow if this matter goes to a court above. At this time, Council should secure that which is within their control. After clarifying that it pertains only to the lot at 529 8th St., Mayor Buck reviewed the motion before the Council. He called for any comments from the Appellant. Mr. Howsley responded that there are no objections for the record. Mayor Buck finalized language for the motion, with input from Ms. Linder and Ms. Numanoglu. At Councilor Manz's request, Mayor Buck verified accuracy of the revised language regarding mitigation trees. Councilor Nguyen suggested the possibility of certain modification to the mitigation that might be at the Applicant's option, rather than required. After related remarks from Councilors Rapf and Nguyen, Mayor Buck called for the vote on his motion to tentatively affirm the Commission's decision to approve the tree removal application 499-22-000160-TREE,with the following conditions of approval: Of the street trees required, require one large Evergreen to be planted, and of the on-site mitigation trees, require one large Evergreen to be planted; and also require the City to ensure the owner maintains the health of all mitigation trees for a period of 12 months. A roll call vote was held, and the motion failed, with Mayor Buck and Councilors Rapf and Manz voting 'aye' and Councilors Mboup, Nguyen, and Verdick voting 'no'. (3-3) In response to Council members' questions, Mr. Boone suggested that another motion be put forward. Mayor Buck asked those Councilors who voted 'no' what changes might result in a passing vote. Councilor Mboup reiterated his objection to any motion that allows for removal of all nine trees. Any motion he could support should consider the voices of the neighbors and of nature. Such a motion would preserve the trees he had identified specifically earlier, i.e., those in healthy enough condition to be saved. Necessary workarounds can be found, as seen with many other neighborhood properties. Councilor Nguyen acknowledged that he would vote against the motion as it is currently presented. In order for him to vote in favor, he indicated he would need to see a good-faith effort from the Applicant to find an alternative design that would save more trees. To him, the crux is that, although the motion includes mitigation, it does not replace sufficiently the trees to be lost; he needs to see additional effort to preserve more trees. Councilor Verdick endorsed Councilor Nguyen's remarks about the need for additional design alternatives: To offer only a flipped floor plan does not demonstrate good faith by the Applicant. While not expecting to save all the trees or to see a comprehensive array of alternative designs, she believes it is reasonable that the Applicant present one or two more options. Mayor Buck reiterated his concerns that if Council denies the application and it goes to circuit court or LUBA and is overturned, this will end with no conditions of mitigation imposed. Councilor Nguyen discussed his view that both the City and the Applicant face risks in such a case. Mayor Buck reiterated his belief that those opposing the motion do not have a legally valid, code-based reason for denial at this time. Requesting several clarifications from staff, Councilor Nguyen reiterated his doubt about the Applicant's good-faith effort. Questioning again the reasonableness of the DRC's decision, he discussed issues of objectivity versus subjectivity that may have precluded some potential alternatives. Ultimately, the Applicant took the easiest and most City Council Regular Meeting Minutes Page 19 of 21 September 6, 2022 economical approach. Mayor Buck concurred. However, he opined that the Applicant had not done a good job of showing that many alternatives were pursued. Nonetheless, the Mayor remains unconvinced that requiring additional designs will result in saving more trees, given the constraints in this zone. Councilor Rapf pointed out that this decision must consider the need for equitable treatment of both Applicant and Appellant: Had it been a single family applying to build a home on this property instead of a prolific Lake Oswego developer, it likely would not have generated so much opposition or reached this point, he opined. Councilor Nguyen conveyed his belief that the City would be able to defend its position in court because it could be demonstrated that there were no alternatives considered except for flipping the same floor plan. Mayor Buck identified as a key sticking point the City's reliance on the precedent of considering "reasonable alternatives"; applicants must be allowed to build what is permissible in the zone. Councilor Nguyen countered with benefits of denying this application, e.g., requiring applicants to submit creative designs that work within the lot constraints to achieve harmony with nature. Mayor Buck emphasized the uncertainty generated by this approach, which in turn, contributes to the housing shortage; this is why the State is looking for clear and objective standards. Councilor Nguyen concurred that predictability is needed, but asking the simple questions about alternatives is part of the City's necessary due diligence. Both acknowledged that disagreement on the point could not be resolved in this hearing. Recognizing the deadlock, Mayor Buck advised that their excused colleague, Councilor Wendland, will be asked to review the record. Council will then take another vote. Mayor Buck moved to table AP 22-03 and reconsider it when all seven members of the Council are present at the September 20, 2022, meeting. Councilor Rapf seconded the motion. In discussion of the motion, Mayor Buck affirmed that it is to consider only AP 22-03. Councilor Manz differentiated current code from prospective legislative changes that had been discussed, reiterating that the question now before Council is constrained by the code. After a further brief exchange, a voice vote was held, and the motion passed, with Mayor Buck and Councilors Mboup, Nguyen, Verdick, Rapf, and Manz voting `aye'. (6-0) With regard to AP 22-04, Mayor Buck moved to tentatively affirm the Commission's decision to approve the tree removal application 499-22-000158-TREE, with the following conditions of approval: Of the street trees required, require one large Evergreen, and of the onsite mitigation trees required, require one large Evergreen. Also require the City to ensure the owner monitor the health of all mitigation trees for a period of 12 months, and direct staff to present findings, conclusions, and an order finalizing the Council's tentative decision on September 20th, 2022. Councilor Nguyen seconded the motion. Mayor Buck called for any comments from the Appellant concerning the additions heard in the motion. Mr. Howsley stated there are no objections to those proposed. At Mr. Boone's request, Ms. Numanoglu clarified that the conditions of approval on both applications stipulate that approval of each is dependent on the approval of the other. This is because the trees are in a tight group , and the removal of some trees will leave others vulnerable. Mr. Boone reviewed the language for the Council, confirming that if this motion passes, it is contingent upon the other appeal, now tabled, also being approved. After additional clarifying discussion, a roll call vote was held, and the motion passed, with Mayor Buck and Councilors Nguyen, Verdick, Rapf, and Manz voting `aye'. Councilor Mboup voted 'no'. (5- 1) City Council Regular Meeting Minutes Page 20 of 21 September 6, 2022 Mr. Boone advised that this is a tentative decision of the Council, with findings to be brought back at the next meeting on September 20. Mayor Buck thanked all present for their participation and affirmed the discussion would be carried over until the next meeting. 9. INFORMATION FROM COUNCIL Mayor Buck congratulated Mr. Boone for being named City Attorney Pro Tem. Thanking him for stepping into this role, he highlighted Mr. Boone's many years of dedicated community service. No further requests to share information was heard from Council members. 10. REPORTS OF OFFICERS No reports were made. 11. ADJOURNMENT Mayor Buck adjourned the meeting at 9:16 p.m. Respectfully submitted, Kari Linder, City Recorder Approved by the City Council on Joseph M. Buck, Mayor City Council Regular Meeting Minutes Page 21 of 21 September 6, 2022 ATTACHMENT 2 CITY COUNCIL SPECIAL MEETING rrA 1217 C1I MINUTES c:}0 September 27, 2022 1. CALL TO ORDER Mayor Buck called the City Council special meeting to order at 3:02 p.m. on September 27, 2022. The meeting was held both virtually via video conferencing and in-person in the Council Chamber at City Hall, 380 A Avenue. 2. ROLL CALL Present: Mayor Buck, Councilors Wendland, Nguyen, Verdick, Manz and Mboup. Councilor Rapf was excused. Staff Present: Martha Bennett, City Manager; Evan Boone, City Attorney Pro Tern; Kari Linder, City Recorder; Anthony Hooper, Deputy City Manager Others Present: Jill Jamieson, President of Illuminati Infrastructure Advisors; Lee Ward, Project Manager for EPCOR; Farshad Allandadi, Business Services Group Manager for the Portland Bureau of Environmental Services 3. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of ORS 192.660(2)(e) Conduct deliberations with persons designated to negotiate real property transactions; and (f) Consider records that are exempt by law from public inspection. The City Council met in Executive Session from 3:05 p.m. to 4:11 p.m. 4. STUDY SESSION 4.1 Wastewater Treatment Plant Project Update. Deputy City Manager, Anthony Hooper introduced the project team and noted there were many individuals present and able to answer questions Councilors may have. Farshad Allandadi, Business Services Group Manager for the Portland Bureau of Environmental Services, appreciated the opportunity to make a few comments in support of the City Council Special Meeting Minutes Page 1 of 7 September 27, 2022 program, which had been a very long road for both jurisdictions. Replacing the Tryon Creek Wastewater Treatment plant was in the shared interests of both municipalities and there had been a lot of good work done evaluating some viable alternatives. The Bureau believed very strongly the Public Private Partnership (P3) negotiated thus far was a very viable solution to the shared municipal needs. Work had been done before he began at the City of Portland, and Lake Oswego's Staff had been excellent partners. He looked forward to the conclusion of the process and concluding the negotiations of the updated Intergovernmental Agreement (IGA) between the jurisdictions following the P3. Mr. Hooper presented the Staff report, via PowerPoint, with a review of the history of the project, the progress to date, the benefits of the P3 option, project goals, and an overview of the physical site. The City Council would be presented with the definitive pricing from EPCOR on November 15, 2022. Additional comments were noted as follows: • The Tryon Creek Plant was built in 1964 and needed to be upgraded. The plant served both Lake Oswego and Portland but was owned by the City of Portland. Under the P3 arrangement, the plant and the land would be owned by the City of Lake Oswego but operated and maintained by EPCOR. • EPCOR would design, build, and finance the plant during the construction period and operate and maintain the plant for the following 30 years. • There would be a new aerial rendering of the design to reflect the shift of the administrative building and main facility to the west side of the site for cost savings. • The new rendering and design work would be unveiled as part of an online open house in November of 2022. The online open house would include curated pages on various topics, including sustainability, as well as an interactive chart for users to see how the wastewater treatment process worked. The public would be invited to give feedback on the project as part of the online open house, which would be open for an extended period of time starting in early November. • The process leading up to the current day was progressive. The City had hired EPCOR to do preliminary services. Some P3s were not hired until the design was finished and built, but the City was working collaboratively with EPCOR. The process was growing close stage in between the 60 percent design phase and the last task force step. • Many things were happening in tandem, including cost development, permitting with the Department of Environmental Quality (DEQ), and advancing through the Water Infrastructure Finance and Innovation Act (WIFIA). • EPCOR had taken the lead on navigating the WIFIA process, which had been successfully advancing. • The City was currently in negotiations with EPCOR on a Project Agreement(PA). Financial close would happen after the go/no-go decision in an after-project agreement. • Property acquisition was being worked on. • The Council had the opportunity to do an off ramp at this meeting, the November meeting or the December 6th meeting. If the relationship with EPCOR was severed, whether for convenience or cause, the City would own the design rights up to that point as well as all the different materials provided by EPCOR. The Council would then have to look at other options. • Staff recommended the City move forward with EPCOR and continue to develop costs. There was more to be done and things looked promising, but they had yet to finalize numbers. • Construction would begin in the summer of 2023 and would take about three years total. City Council Special Meeting Minutes Page 2 of 7 September 27, 2022 • EPCOR was working hard and fast to refine cost numbers by November. Currently, the design build was estimated at $182.3 million. Operations and Maintenance (O&M)were estimated at $2.9 million annually, an increase from the previously estimated $2.5 million. • Costs had increased due to commodities, inflation, and interest rate increases, as well as supply chain complications, among other issues. • Ratepayers could expect an increase of 3.9 percent to make the project work. Upgrading the existing plant and building a new plant both had targeted 3.9 percent increase. • The project had a robust website with an extensive Frequently Asked Questions section and users could sign up to get updates. • Staff would like the Council to give feedback on a project which would irrigate Foothills Park using reclaimed water from the new plant. The project would involve running purple irrigation pipe along Foothills Road and connecting to the existing system. • The total cost was $750,000, or$2.1 million when financed. • The City could forego the project completely or complete the upgrades necessary at the plant to complete the project at a later date. Upgrades at the plant would cost an estimated $500,000, or$1.4 million when financed. Lee Ward, EPCOR Senior Manager, resumed the presentation with a history of EPCOR and additional comments as follows: • EPCOR was a utility operator in the United States and Canada which ran about 40 wastewater treatment plants. • Operations was a large part of EPCOR. The company was not a contractor and did not design or build but brought in partners who designed and built. • EPCOR had partnered with a great team for the Lake Oswego Project, including infrastructure builder AECON, local contractor, Filanc, and the design firm Wood. • P3s were complicated and included many different aspects from design and construction to finance and O&M. EPCOR had put together a good team. • The proposed treatment process was based on a lot of existing technologies which were not quite cutting edge because EPCOR wanted to be sure the technology brought to the project was tried and true. • There were some nuances that enabled EPCOR to build on a smaller site and add a tertiary level of treatment versus the current two-level treatment process. • The first step of the process would screen out plastics and other items from the influent collected from Portland and Lake Oswego, and then remove grit from the screen influent to protect the main treatment system. • The second treatment was the AquaNereda, `secret sauce' treatment. The difference with AquaNereda was the sludge type: how the sludge grew and matured, and the level of treatment the sludge was able to do inside the basin. • Once through AquaNereda process, waste would go through a tertiary filtration to ensure the plant suspended solids and phosphorus levels, which helped in storm flow situations. The tertiary filtration system would filter out any deleterious materials. • After the tertiary filtration, liquids would be treated with a UV system, a change from the current chemical process using chlorine, before being discharged to the Willamette River. • Solid wastes would be separated out through the AquaNereda process to ancillary basins, thickened, and then pumped into trucks for transport to the Columbia Wastewater treatment plant and eventual dispersion onto farmers' fields. • The process was exciting. To place the plant on six acres was a challenge and only a few options would work. City Council Special Meeting Minutes Page 3 of 7 September 27, 2022 • EPCOR had gone on a field trip to get a first-hand look at the results and operations of an AquaNereda plant and were impressed by what they saw. • Resiliency and reliability were an important part of the project; contract and insurance talks had included discussions about the seismically active area. The project would be built to a Category 4. • The project had to comply with certain conditions associated with its location on a flood plain. The plant was designed to comply with the RFP stipulations that the main treatment units be built to withstand a 1 in 100-year flood and the main electrical systems be built to withstand a 1 in 500-year flood. • EPCOR had met with the Assisted Sustainability Network, Oregon Energy Trust, among others, to work sustainability and environmental benefits into the project. Solar panels were included in the current design and budget, and there was the possibility of reusing the facility water on site and recirculating water back into the plant, saving on potable water. • The plant was designed to treat very high wet weather flows of up to 53 million gallons per day. Redundancy and backup systems were being built into the plant to ensure it could withstand failures without interruption in service. The team was looking at standby power and building a Genset into the design. An emergency bankside outfall for long period wet weather flows was also included. Jill Jamieson, President of Illuminati Infrastructure Advisors, continued the presentation with a review of the process, with comments noted as follows: • The process was now in the Preliminary Services period and there was an opportunity to off- ramp at any time. Preliminary Services was designed to give the Council an objective moment at the end of the phase to make an informed decision at the end of the about whether to proceed or not to proceed. • EPCOR had done a great job advancing the project through design stages, as well as through the permitting front with cost information, financial structuring, WIFIA applications, O&M plans, and commissioning and decommissioning plants. • There was a lot of information developed in the preliminary services phase, but they were not yet at the end of the phase because there was no full visibility into pricing, therefore there was no recommendation in terms of a go/no-go decision. • The preliminary service period was financed by EPCOR, so the City was not out of pocket to them, though it was out of pocket for advisors to the project including Carollo, Illuminati, and others. • If the City proceeded with the process, costs that EPCOR had incurred would be rolled into the availability payments which would start in the future once the system was up and running. • If the City proceeded with the project after the go/no-go decision, the project would advance to the Project Agreement (PA) phase which covered the next 30-year period. • In the PA phase, EPCOR would finalize designs, finish construction, and then begin operations. The City would begin payments upon operational readiness of the facility, so there were many years left before payments would being. • The Council was approaching the point where it would be able to make an informed decision about whether or not to proceed and the process had worked as originally designed. • The study session on November 15' would include information about pricing. Even though full visibility was not yet available, there had been some inflationary adjustments and prices and interest rates had increased. • Illuminati wanted to be sure the City was getting a competitive price for the project, which was what the company would be looking at going forward. City Council Special Meeting Minutes Page 4 of 7 September 27, 2022 • Should the City decide the project was not in the best interest of the people of Lake Oswego or Portland, that was its right. The project could be terminated for a number of reasons, including exceedance of affordability thresholds or convenience. The reason for termination would determine how high EPCOR's compensation would be. The compensation would then be split between Portland and Lake Oswego, so both parties would need to have discussions. • Terminating the project would leave the City with many options. The process could be rebooted, the City could move forward with design/build, design/build/operate, or the existing Tyron Creek facility could be refurbished. Options would be presented to the Council after the off-ramp decision was made. • The go/no-go decision should be based upon the merits of the project presented, not the myriad of options available if the City decided to offramp. • There would be a comparative assessment to determine whether the project was a good deal for the City and rate payers, but it would be impossible, for practical purposes, to go through 500 different contracting options. The company would provide the City with expert judgement and opinion on whether or not it was a good deal, but next steps would have to be separate. • The process was designed from day one to minimize risk and allow the opportunity to make a fully informed decision. The process had been painstaking, and a lot of detailed information was coming to the Council fairly regularly to allow the Council to make the best decision for the people of Lake Oswego. • The Council could opt out of the project at any point. Even after moving forward with the P3 contract, the City would have the right to terminate for convenience or other reasons. Opting out of the project would cost money, but the Council should make an informed and sober decision about the next 30 years. • Significant transfer of pricing risks was with EPCOR both during the Preliminary Services phase and the PA. EPCOR owned the cost right now in terms of cost overrun. The company had given the City a firm cost and firm price for services. From Illuminati's perspective, EPCOR had been a very reasonable partner in that regard. • The City was not transferring all risk to EPCOR in order to optimize risk allocation and assign risk to the party best positioned to manage it. EPCOR was not in a good position to manage all the risk and would not be able to handle macroeconomic shifts or currency and interest rate issues any better than the City could, so some of the risk was shared. • The Project Agreement (PA) ran through many different issues, which was why it was so thick. Illuminati was responsible with getting the Council up to speed on the provisions of the PA and what sort of liabilities or contingent liabilities belonged to the city. • As an observer to the process as well as a participant, what she had seen thus far had given her great hope and confidence in the ability to move the project forward. • EPCOR was a world-class firm and it had worked collaboratively with its partners AECON and Filanc for the best outcome. There were elements, including some of the pricing, outside everyone's control. Mayor Buck thanked the team and recognized the work of Mr. Hooper and the City Staff as well as the other partners for the work they had been doing over a long period of time. The City of Portland had been a great partner in the current facility and throughout the process, and he appreciated the work going into the next phase. Council supported the ratepayers in Lake Oswego and Portland who would be paying for the new facility. In that regard, the partnership and the effort only took the project so far because at the end of the day there were real rates being paid by real people who expected the City Council to seek the best deal possible on their City Council Special Meeting Minutes Page 5 of 7 September 27, 2022 behalf. The Council was very positive about many aspects of the project, such as the technology, sustainability, energy efficiency, and its potential as a beneficial alternative to refurbishing the current plant. However, the Council was absolutely concerned about the price increase, which was unacceptable. The Council was growing weary of the continual blaming of the untoward price increases on the pandemic bogeyman or other externalities that it was expected to rollover and accept as the truth, because it knew better. Conditions were changing but the environment was not as dire as EPCOR would like the Council to think. The Council was coming in with eyes wide open and hoping for the best, but the deck was in EPCOR's hand. The continued good partnership the project was built on should be manifested in transparent numbers so the Council would feel good about it as it came to the go/no-go decision. Mayor Buck shared the positive sentiments expressed by Jill Jamieson, but the Council was really there for the ratepayers and wanted to ensure the project was a great deal for the people of Lake Oswego and their neighbors in Portland. Councilor Manz commented that the Mayor had expressed most of her thoughts. Councilors often heard from ratepayers about what they were paying for various services and asked when the lowest bond drop-off would be. City Manager Bennett replied the finance director was not present and wanted to be sure to get the Councilor an accurate response so would follow up with numbers later. Councilor Manz stated the City had a fiduciary responsibility to the ratepayers and people were weary. EPCOR would make an excellent partner, and the product was very exciting. She hoped to get to the point of transparency where the Council would feel good about going to the ratepayers with the product as a positive benefit for future generations and residents of the City. Mr. Hooper stated he was 95 percent sure the estimated drop off for the lowest bond was 13 years from now in Fiscal year 2034/35. Councilor Wendland thanked the team for the update and agreed with the Mayor's comments about pricing and rates. The decision also had to do with functionality and dependability because the sewer system should not fail and performance should not be compromised. When the system went in, the City should ensure it worked without any pause and was fully operational all the time. When was pricing expected from EPCOR? The Council and their partners in Portland should have more than 24 hours to make a decision and needed realistic expectations on timeframes since the final decision was expected in December. If a decision could not be made with good information, a decision would have to be made later. Councilor Wendland asked if there was an expectation of when the Council would have finite numbers. Lee Ward replied that EPCOR's target date for submitting numbers to the Council was October 27th, 2022. A decision had been made at the 11th hour to shift the site in order to save a substantial sum of money, however the shift impacted influent and effluent piping, and stormwater drainage, among other things. A design meeting had been held the previous week to finalize some of those issues and EPCOR had come back to the City this week to clarify stormwater drainage. The shift was now in hand and being worked through quickly. EPCOR was getting quotes back now for various parts of the plant not impacted by the design change. The company promised the Council it would have updated numbers on capital, operations, and the 30-year repair/replacement plan to the Council by October 27th Councilor Wendland noted economic conditions had changed in the last 60 to 90 days and the local community was savvy and tied to the financial markets and building, development, construction. Councilor Wendland inquired whether or not the company was starting to get City Council Special Meeting Minutes Page 6 of 7 September 27, 2022 more favorable and realistic numbers from the marketplace. Lee Ward agreed prices had calmed down, though some items were offering more favorable prices while other prices were not budging. Lumber prices had come down but stainless-steel prices had increased. Plastic prices had risen meteorically but were starting to come back down to earth a little bit. There were still outstanding supply chain issues which delayed some items. An AECON rep had noted earlier today there were still some contractors or vendors who would not give more than a one- day quote. The company hoped the news of easing prices would translate to lower costs, but it could not promise that was true across the board. Councilor Wendland, who had attended early, pre-pandemic meetings on the project, appreciated the team's hard work. He also thanked the City of Portland for its partnership and noted the process had been very positive and encouraging. Lee Ward noted EPCOR was heavily invested and was trying to do everything it could to make the project a go. The project was important to their entire team as well. Councilor Wendland replied the City knew EPCOR would have the very best pricing possible and the City was counting on that. Mayor Buck thanked everyone for their time and said the Council looked forward to hearing back from the team shortly. 5. ADJOURNMENT Mayor Buck adjourned the City Council special meeting at 5:06 p.m. Respectfully submitted, Kari Linder, City Recorder Approved by the City Council on Joseph M. Buck, Mayor City Council Special Meeting Minutes Page 7 of 7 September 27, 2022 10.1 COUNCIL REPORT o ORE00� Subject: Resolution 22-36, Approving the Appointment of an Alternate to the 50+ Advisory Board Meeting Date: November 15, 2022 Staff Member: Kari Linder, City Recorder Report Date: November 2, 2022 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Adopt Resolution 22-36. Recommended Language for Motion: Move to adopt Resolution 22-36. Project/ Issue Relates To: Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable BACKGROUND On Wednesday, October 26, 2022, Maxine Parrick a member of the 50+Advisory Board, submitted her letter of resignation from the 50+Advisory Board. DISCUSSION It was the consensus of Mayor Buck and the interview panel to recommend that Susan Speer be appointed as an Alternate to the 50+Advisory through June 30, 2023. With the vacancy on the board due to Maxine Parrick's resignation, Mayor Buck appoints Susan Speer to fill the Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 remainder of Maxine Parrick's term through June 30, 2025, subject to the approval of the City Councilors. RECOMMENDATION Adopt Resolution 22-36. ATTACHMENTS 1. Resolution 22-36. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 RESOLUTION 22-36 A RESOLUTION OF THE CITY COUNCILORS OF THE CITY OF LAKE OSWEGO APPROVING AN APPOINTMENT TO THE 50+ADVISORY BOARD. WHEREAS, it was the consensus of the Interview Panel to recommend that Susan Speer be appointed as an alternate to the 50+Advisory Board in the case of a vacancy through June 30, 2023; and WHEREAS, 50+Advisory Board member, Maxine Parrick submitted her letter of resignation on October 26, 2022; and WHEREAS, the Mayor appointed Susan Speer to fill the remainder of Maxine Parrick's term, subject to Council approval, pursuant to Section 19 of the City Charter; NOW THEREFORE, BE IT RESOLVED, that the City Councilors of the City of Lake Oswego approve the Mayor's appointment of Susan Speer to fill the remainder of Maxine Parrick's term on the 50+Advisory Board through June 30, 2025. This resolution shall take effect upon passage. Considered and adopted by the City Councilors of the City of Lake Oswego at a regular meeting held on the 15th day of November 2022. AYES: NOES: ABSTAIN: EXCUSED: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Evan Boone, City Attorney Pro Tern 11 .1 COUNCIL REPORT 0 ORE00� Subject: Residential Structure Demolition Tax Update (Ordinance 2916 I PP 22-0006) Meeting Date: November 15, 2022 Staff Member: Scot Siegel, Community Development Director Report Date: November 7, 2022 Department: Community Development Action Required Advisory Board/Commission Recommendation ❑ Motion ❑X Approval ❑X Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑ ❑ Information Only Comments: Sustainability Advisory Board and Historic ❑ Council Direction Resources Advisory Board recommend approval ❑ Consent Agenda Staff Recommendation: Conduct a public hearing and enact Ordinance 2916. Recommended Language for Motion: Move to enact Ordinance 2916. Project/ Issue Relates To: ▪Council Goals/Priorities Conserve the community's quality of life by planning for growth and change. ISSUES BEFORE COUNCIL Issues include whether to: • Remove the sunset on Ordinance 2831 (LOC 24.06 Residential Demolition Tax), • Modify the incentives for affordable housing and deconstruction in LOC 24.06, • Amend LOC chapter 45 (Building Code) to make deconstruction mandatory for structures built in 1940 or earlier, and • Exempt from the demolition tax all types of deed-restricted affordable housing, including those exempt from system development charges. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 EXECUTIVE SUMMARY The primary purpose of Ordinance 2831, Residential Demolition Tax was to raise revenue for parks maintenance. It is a general tax—not a system development charge under ORS 223.297— .314 or a construction excise tax under ORS 320.195. Section 3 of Ordinance 2831 is a three- year sunset requirement (expires January 2, 2023). The $15,000 tax applies to demolitions of residential structures, including single-family homes and duplexes. Demolitions of dangerous/condemned buildings and demolitions for the purpose of developing multifamily affordable housing are exempt. The rate was designed to meet the Parks Department goal of raising $400,000 annually. As of September 2022, the tax, effective Jan. 2, 2020, had raised $1,230,000. Thus, the average annual amount raised is on-track with the original estimate. The tax is reduced by $5,000 for projects that utilize a certified deconstruction contractor (manual deconstruction) as an alternative to mechanical demolition. Two builders in the past three years have taken advantage of the credit. Recently, the definition of demolition was amended to include major remodels where more than 50% of a dwelling's exterior walls or foundation are removed (Ordinance 2894). This change has the potential to increase the number of demolition permits. At the City Council's October 18, 2022 study session, the Council provided the following direction for staff to prepare an ordinance: 1. Remove the sunset on Ordinance 2831. (There was not a consensus for establishing a new sunset.) 2. Replace the existing tax reduction for manual deconstruction (deconstruction) projects with a full tax exemption, to encourage resource conservation. 3. Research the effect of requiring deconstruction for older houses (1940s or earlier), to encourage reuse of valuable building materials that are no longer produced. When the tax ordinance was adopted in 2019, the Council received testimony in opposition from the Home Builders Association of Metro Portland (HBA). Staff has reached out to the HBA and understands that they are tracking this policy and are concerned about its effects on housing costs. The HBA recommended demolitions for development of middle housing be exempt. They also suggested the City exempt moderate-income housing from the tax, defined as housing that is affordable to those earning 120 percent or less of area median income, in place of the existing criteria (80 percent or less of area median income). During the October 18 study session, Council did not reach consensus on whether to exempt demolitions for middle housing. Council noted that middle housing is not necessarily affordable to people with low incomes, though it provides other public benefits compared to single-family detached housing, including reduced carbon footprint and more efficient delivery of urban Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 services such as utilities and transit. While it is unclear how much the tax might be a barrier to middle housing development, it was noted that the cost of a tax can be spread out over more dwelling units in a middle housing development as compared to single-family development. The City Manager also noted that an exemption dependent upon later construction of middle housing would add complexity to the permit process, requiring staff time for administration and enforcement. Council has not previously discussed changing the affordability criteria as suggested by the HBA. If Council were interested in considering that policy change, staff recommends taking it up as part of the City's work toward implementing House Bill 2003 (Housing Production Strategy). Included as part of Ordinance 2916 (Attachment 1), staff is proposing an amendment to the demolition tax that would exempt all types of housing that meet the City's established affordability criteria, as defined in the SDC exemption (LOC 39.06.105(5)(a)(ii)). The proposed ordinance exempts any type of housing that meets these criteria, instead of limiting the exemption to developments of multifamily rental housing as is currently the case. The change would make the demolition tax exemption consistent with the system development charge fee exemption in Ordinance 2885. The Sustainability Advisory Board (SAB) and Historic Resources Advisory Board (HRAB) reviewed the demolition tax and provided their recommendation in Attachment 2. Among other recommendations, SAB and HRAB suggested deconstruction of older houses (built in 1940 or earlier) become mandatory, to reduce the environmental impact of demolitions and to encourage reuse of valuable building materials that are no longer produced. Accordingly, and pursuant to City Council's direction during the October 18 study session on the tax, staff researched the number of demolitions approved for structures that were built in 1940 or earlier. See Discussion, below. BACKGROUND In 2016, the City Council amended the City's local Building Code (LOC 45.12.100) to require a 14-day waiting period for all residential demolitions, with notice of the demolition mailed to adjacent property owners and posted on the site (Ordinance 2727). The City also requires certification and abatement of asbestos and lead-based paint as part of the demolition process. In 2018, the City Council adopted System Development Charge (SDC) financial incentives for the development of affordable housing and measures to encourage the retention of existing housing. These measures included fee waivers for accessory dwelling units and affordable housing (Ordinance 2810), and a streamlined land use permit process for ADUs (Ordinance 2784). In 2019, the City Council adopted the residential demolition tax with a 3-year sunset provision.' Unless the sunset is removed or modified, Ordinance 2831 expires on January 2, 2023. 1 Lake Oswego is the only Oregon local government with a demolition tax.The City of Portland considered but abandoned a similar tax proposal in 2018. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 In 2022, the City Council amended the SDC financial incentives for affordable housing to include more types of income-targeted housing (not limited to multifamily rental housing), including for-sale homes (Ordinance 2885). On October 18, 2022, the City Council held a study session on the demolition tax and provided direction for preparing proposed Ordinance 2916. DISCUSSION The existing demolition tax enacted with Ordinance 2831 (Lake Oswego Code Article 24.06) applies to demolitions of residential structures, as follows: 1. A tax of$15,000 per demolition is levied at the time of permit issuance. 2. A $5,000 tax reduction or credit is provided for projects that use a City of Portland Certified Deconstruction Contractor as an alternative to mechanical demolition. 3. Demolitions of structures that are removed for development of affordable housing, or where the City declares the structure unsafe/condemns it, are exempt from the tax. 4. The tax revenue is dedicated to parks maintenance. It is general tax, not an SDC or a construction excise tax. When the existing tax was approved in late 2019, revenue was projected based on permitting activity over the previous five years, which had averaged approximately 30 demolitions per year. This assumed the economy remained strong. By setting the rate at $15,000, the tax was to meet the Parks Department's annual goal of$400,000 in revenue, or approximately 10%-15% of the Department's maintenance budget2. To date, the tax has exceeded this goal, as follows: Table 1. 2019-2022 Demolition & Revenue By Demo Type, as of September 2022 Demolition Permits Demolition Permit Deconstruction- Deconstruction- Issued Revenue Demolition Demolition Revenue Permits Issued 2019 37 $0 0 2020 16 $240,000 0 2021 36 $540,000 2 $20,000 _ 2022 29 $405,000 0 _ 2022(applied but not 9 0 issued) Total issued 118 $ 1,185,000 2 $20,000 Total issued+applied 127 2 According to the Parks and Recreation Department,the total Parks, Natural Areas and Athletic Fields Maintenance budget is$3.6M annually;the demolition tax equals 13.9%of the budget. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 5 Deconstruction Incentive The City Council adopted the deconstruction tax incentive because of the environmental benefits of reusing building materials instead of disposing of them in the landfill or recycling, consistent with the City's sustainability goals. When the City was first considering the demolition tax and deconstruction incentive, staff had researched Portland's deconstruction program, which at the time provided a good model for the proposed incentive3, even though Portland requires deconstruction for older houses. In 2016, Portland was the first city in the country to require deconstruction, as opposed to mechanical demolition. At first, they required deconstruction for removal of any designated historic landmark and homes built in 1916 or earlier, but in 2019, Portland amended its policy and changed the cutoff date to 1940 or earlier. Staff asked SAB and HRAB to make recommendations for City Council consideration, which are provided in Attachment 2. The advisory boards jointly recommend making deconstruction mandatory for older houses undergoing demolition. Staff researched Portland's program in July 2022. At that time, Sustainability Manager Amanda Watson contacted program manager Shawn Wood who reported that certified deconstruction contractors have additional capacity to take on more projects. Mr. Wood also indicated the market for salvaged materials was good. Staff can confirm that with deconstruction contractors and salvage companies. Based on Council's direction at the October 18 study session on the tax, staff researched the number of demolition applications for structures that were built in 1940 or earlier using Metro's Regional Land Information System and the City's GIS. Although the data are incomplete, we were able to identify "year built" for 90 out of 91 demolition permits applied for during 2020 through September 2022. A total of 30 out of 90 of those houses were built in or before 1940. Previously, it was reported there were no deconstruction projects that utilized the deconstruction incentive; in fact, there were two, both in 2021. One house was originally built in 1960, and the other in 1935. See Attachment 3. IMPACTS AND ALTERNATIVES The demolition tax adds to the cost of housing production and disproportionately impacts lower-value properties because the tax is a flat amount (not tied to the value of the demolished structure). The tax also targets neighborhoods that are redeveloping rather than the city as a whole, which some residents may view as unfair because the tax is used for parks maintenance citywide. Alternatives to removing the sunset on the demolition tax include allocating additional general funds to Parks, adopting a park utility fee, or asking voters to approve a tax levy to help pay for maintenance of new parkland that may be acquired and facilities constructed under the 2019 Parks and Open Spaces Bond. 3 The stated purpose of Portland's deconstruction ordinance is to"maximize salvage of building materials for reuse, reduce carbon emissions and landfill waste,and to minimize the adverse impacts associated with building removal." Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 6 FISCAL IMPACT Removing the sunset on the residential demolition tax would have a positive impact on revenue for parks maintenance. Currently, the tax raises approximately $400,000 per year. By exempting houses built in 1940 or earlier, Council should plan for a reduction in tax revenue by as much as 30%; though the effect of the exemption may decrease over time as fewer older houses are demolished. RECOMMENDATION Conduct a public hearing and adopt Ordinance 2916. ATTACHMENTS 1. Ordinance 2916, with Exhibit A 2. SAB and HRAB Joint Recommendation, August 31, 2022 3. Demolition Data by Year Built for Demolitions Approved 2019-2022 (September) 4. Article 24.06 and 45.12 code amendments, with full section text for context Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 ORDINANCE 2916 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO REMOVING THE SUNSET ON ORDINANCE 2831 (LOC 24.06 RESIDENTIAL DEMOLITION TAX), MODIFYING THE AFFORDABLE HOUSING AND DECONSTRUCTION INCENTIVES IN LOC ARTICLE 24.06, AND AMENDING LOC ARTICLE 45.12 (DEMOLISHING OR MOVING BUILDINGS) TO MAKE DECONSTRUCTION MANDATORY FOR STRUCTURES BUILT IN THE YEAR 1940 OR EARLIER. WHEREAS, the City of Lake Oswego demolition tax, as established by Ordinance 2831 and codified in Lake Oswego Code Article 24.06, provides needed revenue for maintaining City park properties and facilities; and WHEREAS, manual deconstruction can be a more sustainable method of demolition than mechanical demolition by providing opportunities for reuse of valuable building materials, as opposed to recycling or landfill disposal; WHEREAS, the demolition tax reduction for manual deconstruction performed by a certified deconstruction contractor (LOC 24.06.050), could be more effective at encouraging deconstruction as an alternative to mechanical demolition; WHEREAS, it is in the public interest to require deconstruction by a certified deconstruction contractor where the demolition permit is issued for removal of a residential structure originally built in or prior to 1940, to encourage reuse of valuable building materials; WHEREAS, it is in the public interest to exempt from the demolition tax any demolition that is for the purpose of developing housing that meets the City's adopted affordable housing criteria; and WHEREAS,the demolition tax is for revenue purposes and is not a fee for recovering administrative costs, nor is it regulatory in any manner; The City of Lake Oswego ordains as follows: Section 1. Sunset Provision. Section 3, the Sunset Provision, of Ordinance 2831 is hereby repealed. Section 2. The Lake Oswego Code, Article 24.06 (Demolition Tax) and Lake Oswego Code, Article 45.12 (Demolishing or Moving of Buildings), are hereby amended by adding new text shown in double underlined type and by deleting text shown with strikeouts, in Exhibit A. (Sections or subsections within LOC Article 24.06 and LOC Article 45.12 that are omitted in Exhibit A, and not marked for deletion or addition, are neither amended nor deleted by this Ordinance.) Ordinance 2916 Page 1of2 Section 3. Effective Date. As provided under Section 35.C. of the Lake Oswego Charter, this ordinance shall take effect on the 30th day following enactment. Section 4. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. Enacted at the regular meeting of the City Council of the City of Lake Oswego held on the 15th day of November 2022. AYES: NOES: ABSTAIN: EXCUSED: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Evan Boone, City Attorney Pro Tem Ordinance 2916 Page 2 of 2 Exhibit A —Ord. 2916 24.06.010 Purpose. The demolition of residential structures in the City of Lake Oswego has contributed to the waste stream through disposal of building materials. Demolition has also reduced the diversity of housing stock and decreased the availability of affordable housing within the City. Subsequent redevelopment has contributed to increases in housing prices that make it more difficult to provide affordable housing. The permit fees relating to building demolitions cover the administrative costs of the regulatory program, but do not address other impacts of demolition of residential structures. The tax imposed under this article is not for the purpose of recovering administrative costs and is not regulatory in any manner. The tax is strictly for revenue purposes, to provide funding to maintain City park properties and facilities. The tax shall be in addition to any regulatory demolition permit fees established from time to time by the City Council and all other applicable regulatory fees and charges. 24.06.040 Exemptions. *** 2. The demolition tax imposed in LOC 24.06.030 shall not apply to: a. Any residential structure being demolished due to a catastrophic loss such as fire, landslide, flood, earthquake or other disaster; b. Any residential structure that is subject to a vacation or demolition order by the City Building Official by reason of being an unsafe building or structure under LOC 45.09.060, or a dangerous building under LOC 45.09.065; c. Any residential structure located on publicly owned property; Of d. Any residential structure being demolished to clear a site for development of multi family affordable housing described in LOC 39.06.105(5)(a)(ii); provided, that: i. The owner of the property including the residential structure has received a development permit for development on the property that qualifies for the system development charge exemption under LOC 39.06.105(5); ii. The covenant required by LOC 39.06.105(5) based upon the approved development is recorded; and iii. All of the terms of the covenant are complied with. e. Any residential structure where the demolition permit is issued for removal of a residential structure through deconstruction by a certified deconstruction contractor under LOC 24.06.050. Page 1 of 3 Exhibit A —Ord. 2916 3. Any demolition tax paid under LOC 24.06.030 shall be refunded to the property owner if, within one year following issuance of the demolition permit: a. The property owner obtains a building permit for development of multi family affordable housing described in LOC 39.06.105(5)(a)(ii) on the property from which the residential structure was removed; b. The development has qualified for the system development charge exemption under LOC 39.06.105(5); and c. The covenant required by LOC 39.06.105(5) is recorded. 24.06.050 Tax Reduction Exemption for Deconstruction of Residential Structures. 1. The demolition tax imposed in LOC 24.06.030 shall be waived reduced by$5,000 where the demolition permit is issued for removal of a residential structure through deconstruction by a certified deconstruction contractor. 2. To be eligible for the demolition tax exemption for deconstruction reduction, a pre-deconstruction form, in a form approved by the City Manager, must be completed and submitted as part of the application for the demolition permit. The form must be completed by the certified deconstruction contractor assigned to the project. Information required on the form must include, but is not limited to: 3. *** 24.06.070 Failure to Comply with Requirements of Exemption for Affordable Housing or Exemption Reduction—for Deconstruction. 1. This section shall apply when: a. An exemption from the demolition tax has been granted under LOC 24.06.040(2)(d), or a demolition tax has been refunded under LOC 24.06.040(3), but the covenant is violated, or is terminated according to its terms before the expiration date; or b. An exemption from reduction of the demolition tax has been granted under LOC 24.06.050, but the residential structure is not removed through deconstruction that complies with all requirements of that section and all applicable rules and procedures adopted by the City Manager. *** 3. The exemption, reduction or refund will be terminated and the entire exempted, reduced or refunded amount of the demolition tax, plus the processing fee, together with interest from the date the exemption, refund, or permit with tax reduction was granted at a rate established by the City Council, shall become immediately due and payable by the current owner of the property. *** Page 2 of 3 Exhibit A —Ord. 2916 Article 45.12 Demolishing or Moving Buildings. // 45.12.100 Demolition of Dwellings. 1. Definitions. a. "Building Official" means the person appointed by the City Manager to enforce the provisions of the Building Code, or designee. b. "Certified Deconstruction Contractor" means as defined in LOC 24.06.020. c. "Deconstruction" means as defined in LOC 24.06.020. d . "Demolition" or"demolish" means removal of 50% or more of the total surface area of exterior walls or perimeter foundation of a residential structure as it existed on June 2, 2022, either as a single project or cumulatively over five years or less. ec. "Exterior wall"for the purpose of this section means a wall enclosing a dwelling that has a surface exposed to the outside, including all framing and sheathing, from top plate to bottom plate on all stories. *** 45.12.110 Deconstruction of Dwellings Required. Demolition of residential structures built in the year 1940 or earlier shall be by deconstruction only and follow the procedures for deconstruction under LOC 24.06.050, LOC 24.06.070 and LOC 24.06.080,. *** Page 3 of 3 ATTACHMENT 2 E�.r MEMORANDUM TO: Members of the City Council FROM: Historic Resources Advisory Board Sustainability Advisory Board SUBJECT: Demolition Tax Renewal DATE: August 31, 2022 On August 10, 2022, members of the Historic Resources Advisory Board and Sustainability Advisory Board met jointly to discuss the renewal of the City of Lake Oswego's Demolition Tax and corresponding deconstruction incentive. City staff solicited Board members' input on potential updates that might be needed to the tax, including changes that would encourage more demolition projects to use deconstruction. Incentivizing deconstruction aligns with the City's sustainability and climate action goals because deconstruction enables the reuse of building materials that would otherwise be placed in landfills and reduce the overall carbon footprint of new construction. The Sustainability Advisory Board and HRAB members have encouraged City staff to evaluate policy options to require deconstruction of older homes, following City of Portland's model. The group also discussed whether the City should consider additional incentives connected to the demolition tax that would allow volunteers permission from the property owner to access older properties to document older homes and add to the existing database before they are demolished. In response to the increasing number of older homes being demolished throughout the City, the Historic Resources Advisory Board worked with Planning, Building, and Library staff to develop an administrative procedure for documenting homes built more than 45 years ago. Documenting these older homes can contribute to the City's architectural history. In light of the City's sustainability and historic preservation goals, we recommend that Council consider the following actions in relation to the Demolition Tax: • Follow Portland's model to require deconstruction of any homes built prior to 1940. • Raise the demolition tax to $25,000 and allocate some of the revenue to the Historic Preservation Grant Program. Respect. Excellence. Trust. Service. 503-675-3984 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 of 2 • Raise the incentive for a deconstruction permit from $5,000 to $10,000. Information on the differences in cost between demolition and deconstruction could be used to determine the appropriate amount of the incentive relative to the tax. • Direct staff to investigate why the deconstruction incentive has not been utilized, and what strategies could help overcome barriers that might exist. For example: a. If the permit process is a barrier, streamline the permit application process for deconstruction permits. Possibly, create an expedited process for deconstruction permit applications. b. If the incentive is not being used because residents are not aware of it, educate the public and discuss the deconstruction option in greater detail when homeowners apply for a permit. Perhaps develop a brochure that describes the process. Conduct additional education outreach to contractors, deconstruction contractors and property owners with homes that are 40 years old or older. • Integrate more sustainable construction incentives to support Sustainability and Climate Action Plan goals. Allow for more demolition permit cost reduction (or other incentives, potentially funded by demolition tax revenue) if the property owner integrates more sustainable practices at the building phase that lower the carbon footprint of buildings. • Extend waiting period for demolition permits issued for homes that are greater than 40 years old from 14 days to 30 days. This would allow more time for city volunteers to document the property and provide more opportunities to consider deconstruction. Thank you for your consideration. Respectfully, Members of the Historic Resources Advisory Board and Sustainability Advisory Board Respect. Excellence. Trust. Service. ATTACHMENT 3 DEMOLITION APPLICATIONS (2020-2022 SEPT) BY YEAR BUILT page 1 of 2 NUMBER STREET TYPE City PARCEL YEARBUIL_2019 1455•CHANDLER RD LAKE OSWEGO '21E03CCO2500 0 540.E AVE LAKE OSWEGO '21E03DC06600 1900 769'4TH ST LAKE OSWEGO '21E03DA06100 1910 718'5TH ST LAKE OSWEGO '21E03DB08000 1910 523LAUREL ST LAKE OSWEGO '21E10DA04100 1915 53'D AVE LAKE OSWEGO '21E03DA02200 1920 330'6TH ST LAKE OSWEGO '21E03DC13200 1920 3525•LAKE GROVE AVE LAKE OSWEGO '21E08CA00100 1922 15655•TWIN FIR RD LAKE OSWEGO '21E08ACO2700 1924 718'3RD ST LAKE OSWEGO '21E03DA05000 1925 16140'REESE RD LAKE OSWEGO '21E08CA04200 1928 743'6TH ST LAKE OSWEGO '21E03DB07600 1928 4330•LAKEVIEW BLVD LAKE OSWEGO '21E08CC05300 1933 2945•UPPER DR LAKE OSWEGO '21E08AD00700 1934 1625'CLOVERLEAF RD LAKE OSWEGO '21E16BD01800 1935 608•CABANA LN LAKE OSWEGO '21E10AB09500 1935 *604 CABANA LN LAKE OSWEGO '21E10AB09300 1935 13741KNAUS RD LAKE OSWEGO '21E04BD01300 1936 16720•ALDER CIR LAKE OSWEGO '21E17AB04700 1937 13962•KNAUS RD LAKE OSWEGO '21E04DB00900 1938 13561:GOODALL RD LAKE OSWEGO '21E04BC00900 1938 1037•LAKE FRONT RD LAKE OSWEGO '21E10DB02000 1939 17437•CANAL CIR LAKE OSWEGO '21E17BA06900 1939 920•EVERGREEN RD LAKE OSWEGO '21E03CD09800 1939 527'NORTH SHORE RD LAKE OSWEGO '21E10AC00600 1939 534'D AVE LAKE OSWEGO '21E03DB13400 1940 853E AVE LAKE OSWEGO '21E03BD07100 1940 937'9TH ST LAKE OSWEGO '21E03BD06300 1940 1334•MAPLE ST LAKE OSWEGO '21E10CA09400 1940 1425•MAPLE ST LAKE OSWEGO '21E10CA04000 1940 13800 GOODALL RD LAKE OSWEGO '21E04BD01800 1940 755 ELLIS AVE LAKE OSWEGO '21E03CD10900 1946 17561 LAKE HAVEN DR LAKE OSWEGO '21E17BCO2500 1947 2305 GLEN HAVEN RD LAKE OSWEGO '21E16BB02500 1947 4257 LORDS LN LAKE OSWEGO 21E17BCO2400 1947 2301:HAZEL RD LAKE OSWEGO '21E04BC01500 1947 825'ELLIS AVE LAKE OSWEGO '21E03CD10700 1948 1012•LAKE FRONT RD LAKE OSWEGO '21E10DB02500 1948 1111:BAYBERRY RD LAKE OSWEGO '21E03CA04000 1948 370'9TH ST LAKE OSWEGO '21E03CD07600 1948 17495'KELOK RD LAKE OSWEGO '21E17BD08700 1949 2275•GLEN HAVEN RD LAKE OSWEGO '21E16BB02400 1949 807'ELLIS AVE LAKE OSWEGO '21E03CD10800 1950 732'ELLIS AVE LAKE OSWEGO '21E10BA00600 1950 18024'EASTRIDGE LN LAKE OSWEGO '21E14CB02200 1950 1107•YATES ST LAKE OSWEGO '21E10DD01300 1950 230LAUREL ST LAKE OSWEGO '21E10DA07200 1952 16885•FERNWOOD DR LAKE OSWEGO '21E16BB04500 1952 2320•GLEN HAVEN RD LAKE OSWEGO '21E16BB03900 1952 915.OAK TER LAKE OSWEGO '21E09DA02200 1953 15780•TWIN FIR RD LAKE OSWEGO '21E08AC05300 1954 2485'GREENTREE RD LAKE OSWEGO '21E16BB05500 1954 2679•GLEN EAGLES RD LAKE OSWEGO '21E08AA03500 1954 2101'WEMBLEY PARK RD LAKE OSWEGO '21E04CCO2800 1955 2245•GLEN HAVEN RD LAKE OSWEGO '21E16BB02200 1955 16873•CANYON DR LAKE OSWEGO '21E17AA06800 1955 1132•TROON RD LAKE OSWEGO '21E10BB03300 1955 1250 SUNNINGDALE RD LAKE OSWEGO 21E03CB00100 1956 DEMOLITION APPLICATIONS (2020-2022 SEPT) BY YEAR BUILT - page 2 of 2 628 5TH ST LAKE OSWEGO 21E03DB12600 1956 17337'WESTVIEW DR LAKE OSWEGO '21E17AC03200 1956 2740•GLEN HAVEN RD LAKE OSWEGO '21E17AA05800 1957 2090•CREST DR LAKE OSWEGO '21E04CC06600 1958 13041 THOMA RD LAKE OSWEGO '21E04BB02600 1958 259•PINE VALLEY RD LAKE OSWEGO '21E10BB01100 1959 517LAUREL ST LAKE OSWEGO '21E10DA04300 1959 17104•CANAL CIR LAKE OSWEGO '21E17BA04400 1959 *726 •MCVEY AVE LAKE OSWEGO '21E10DB00700 1960 17950'KELOK RD LAKE OSWEGO '21E17CA00300 1961 19175•PILKINGTON RD LAKE OSWEGO '21E19BA02900 1962 3610'EENA RD LAKE OSWEGO '21E17AB07000 1964 18707'BRYANT RD LAKE OSWEGO '21E17CC01301 1964 668'MCVEY AVE LAKE OSWEGO '21E10AD99020 1964 1108'SPRUCE ST LAKE OSWEGO '21E10DC08900 1965 15530•DIAMOND HEAD RD LAKE OSWEGO '21E09AC01000 1965 4680•UPPER DR '21E07DD05200 1966 17663'HILL WAY LAKE OSWEGO '21E18AD07200 1966 4595•WILDWOOD ST LAKE OSWEGO '21E18AD00400 1967 4241:C0BB WAY LAKE OSWEGO '21E17BB11500 1969 17952•CARDINAL DR LAKE OSWEGO '21E17CA01200 1969 18975.OLSON CT LAKE OSWEGO '21E20BA00800 1970 4200•OLD GATE RD LAKE OSWEGO '21E20BB02204 1972 4141:C0BB WAY LAKE OSWEGO 21E17BB12000 1972 18015•CARDINAL DR LAKE OSWEGO '21E17CA03400 1972 17570'HILL WAY LAKE OSWEGO '21E18AD08600 1976 63•AQUINAS LAKE OSWEGO '21E06AA00106 1976 820•TIMBERLINE DR LAKE OSWEGO '21E04AA03404 1976 3331:FIR RIDGE RD LAKE OSWEGO '21E08AB00800 1977 2111:SUMMIT DR LAKE OSWEGO '21E09BCO2400 1977 2442•PALISADES CREST DR LAKE OSWEGO '21E17DA02826 1980 13041:KNAUS RD LAKE OSWEGO '21E04BB00700 1984 1445.OAK TER LAKE OSWEGO '21E09CA00305 1984 4357•SOUTH SHORE BLVD LAKE OSWEGO '21E08CC09200 1986 15012•TWIN FIR RD LAKE OSWEGO '21E08AB03202 1989 3759•LANEWOOD ST LAKE OSWEGO '21E08BD02602 1993 *Demoltion by deconstruction .. a ...- -,� o:' 7,..:►`o," -,-;,di::■l� n�_-- =�ir�vtA - - 4.. . 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G� - _, i ■ii Flu g/. �� re 2 ' 1,1...■■• .• -11.1u --- :� ��'... =-� li7��� and Year Built .11�,1. 1..:--mENI It al�. r" r „I,,,ii .IL1 ' ,.. ■ «-. i e Mile ATTACHMENT 4 Article 24.06 Demolition Tax Sections: 24.06.010 Purpose. 24.06.020 Definitions. 24.06.030 Demolition Tax Imposed; Use of Revenue. 24.06.040 Exemptions. 24.06.050 Tax Exemption Reduction for Deconstruction of Residential Structures. 24.06.060 Authority of City Manager. 24.06.070 Failure to Comply with Requirements of Exemption for Affordable Housing or Reduction Exemption for Deconstruction. 24.06.080 Violations. Editor's Note: Section 3 of Ordinance 2831 provides, "The provisions of this ordinance shall be null, be repealed, on and after January 2, 2023." 24.06.010 Purpose. The demolition of residential structures in the City of Lake Oswego has contributed to the waste stream through disposal of building materials. Demolition has also reduced the diversity of housing stock and decreased the availability of affordable housing within the City. Subsequent redevelopment has contributed to increases in housing prices that make it more difficult to provide affordable housing. The permit fees relating to building demolitions cover the administrative costs of the regulatory program, but do not address other impacts of demolition of residential structures. The tax imposed under this article is not for the purpose of recovering administrative costs and is not regulatory in any manner. The tax is strictly for revenue purposes, to provide funding to maintain City park properties and facilities. The tax shall be in addition to any regulatory demolition permit fees established from time to time by the City Council and all other applicable regulatory fees and charges. 24.06.020 Definitions. As used in this article, unless the context requires otherwise: Certified Deconstruction Contractor means a contractor licensed with the Oregon Construction Contractors Board (CCB)that has successfully completed the deconstruction training and certification program offered by the Building Material Reuse Association, or other program recognized by the City Manager, and that has been approved as a credentialed Certified Deconstruction Contractor by the Director of the City of Portland Bureau of Planning and Sustainability, or the Director's designee. A firm will be considered certified if at least one person currently employed by the firm is certified. City Manager means the person holding the position of City Manager of the City of Lake Oswego, or that person's designee. Attachment 4 Page 1 of 8 Deconstruction means the systematic dismantling of a structure, typically in the opposite order from which it was constructed, in order to maximize the salvage of materials for reuse, in preference over salvaging materials for recycling, energy recovery or disposal in a landfill. Demolition or Demolish means as defined in LOC 45.12.100(1)(b). Demolition Permit means the permit required under LOC 45.02.200. Residential Structure means a single-family dwelling or a duplex, as defined in LOC 50.10.003.2. Reuse means the utilization of a product or material that was previously installed for the same or similar function to extend its life cycle. Materials salvageable for reuse include but are not limited to cabinets, doors, hardware, fixtures, flooring, siding, and framing lumber. (Ord. 2831, Added, 12/03/2019) 24.06.030 Demolition Tax Imposed; Use of Revenue. 1. On or after January 2, 2020, the owner of property that includes a residential structure for which a demolition permit is issued shall pay a tax to the City in the sum of$15,000. The tax shall be paid at the time the demolition permit is issued. 2. Revenue received from the tax imposed in subsection (1) of this section shall be used solely to maintain City park properties and facilities, including, without limitation, repair, renovation and replacement of existing improvements. 24.06.040 Exemptions. 1. The demolition tax imposed in LOC 24.06.030 shall not apply if: a. A complete and unexpired application for a demolition permit for the residential structure was on file with the City before January 2, 2020; b. A complete and unexpired application for a development permit under LOC Chapter 50 was on file with the City before January 2, 2020, for development that, as proposed in the application, necessitates demolition of the residential structure; or c. An unexpired development permit under LOC Chapter 50 issued before January 2, 2020, for the property containing the residential structure approves development that necessitates demolition of the residential structure, or includes a condition of approval that requires demolition of the residential structure. 2. The demolition tax imposed in LOC 24.06.030 shall not apply to: a. Any residential structure being demolished due to a catastrophic loss such as fire, landslide, flood, earthquake or other disaster; Attachment 4 Page 2 of 8 b. Any residential structure that is subject to a vacation or demolition order by the City Building Official by reason of being an unsafe building or structure under LOC 45.09.060, or a dangerous building under LOC 45.09.065; c. Any residential structure located on publicly owned property; or d. Any residential structure being demolished to clear a site for development of multi family affordable housing described in LOC 39.06.105(5)(a)(ii); provided, that: i. The owner of the property including the residential structure has received a development permit for development on the property that qualifies for the system development charge exemption under LOC 39.06.105(5); ii. The covenant required by LOC 39.06.105(5) based upon the approved development is recorded; and iii. All of the terms of the covenant are complied with. e. Any residential structure where the demolition permit is issued for removal of a residential structure through deconstruction by a certified deconstruction contractor under LOC 24.06.050, 3. Any demolition tax paid under LOC 24.06.030 shall be refunded to the property owner if, within one year following issuance of the demolition permit: a. The property owner obtains a building permit for development of multi family affordable housing described in LOC 39.06.105(5)(a)(ii) on the property from which the residential structure was removed; b. The development has qualified for the system development charge exemption under LOC 39.06.105(5); and c. The covenant required by LOC 39.06.105(5) is recorded. 24.06.050 TaxReel-Li-GU-en Exemption for Deconstruction of Residential Structures. 1. The demolition tax imposed in LOC 24.06.030 shall be waived reduced by$5,000 where the demolition permit is issued for removal of a residential structure through deconstruction by a certified deconstruction contractor. 2. To be eligible for the demolition tax exemption for deconstruction reduction, a pre-deconstruction form, in a form approved by the City Manager, must be completed and submitted as part of the Attachment 4 Page 3 of 8 application for the demolition permit. The form must be completed by the certified deconstruction contractor assigned to the project. Information required on the form must include, but is not limited to: a. Name of the certified deconstruction contractor; b. Whether heavy machinery will be used on the deconstruction project (exclusive of foundation removal); c. List of materials that are intended to be salvaged for reuse; d. List of materials that are not salvageable and the reason why the materials cannot be salvaged; and e. Expected dates for deconstruction activity. 3. A post-deconstruction form, in a form approved by the City Manager, must be completed by the certified deconstruction contractor assigned to the project and submitted to the City Manager no more than 30 days after completion of the deconstruction work. The City Manager must review and approve the post-deconstruction form before the demolition permit can be finaled. The form must include responses to all of the following in order to be considered complete: a. Name of the certified deconstruction contractor. b. List of materials salvaged for reuse. c. List of materials not salvaged for reuse, as indicated on the pre-deconstruction form, and the reasons materials were not salvaged. d. Copies of the following: i. Itemized receipt of materials and quantities donated to a nonprofit. ii. Itemized receipts for materials and quantities sold. iii. Photos of salvaged material that will be reused on site or at another site. iv. Transaction receipts of weight tickets for the disposal of hazardous material abated during the course of deconstruction. v. List and photos of materials given or sold to members of the public. 24.06.060 Authority of City Manager. The City Manager is authorized to adopt rules, procedures, and forms to implement the provisions of this article. Attachment 4 Page 4 of 8 24.06.070 Failure to Comply with Requirements of Exemption for Affordable Housing or Exemption Reduction-for Deconstruction. 1. This section shall apply when: a. An exemption from the demolition tax has been granted under LOC 24.06.040(2)(d), or a demolition tax has been refunded under LOC 24.06.040(3), but the covenant is violated, or is terminated according to its terms before the expiration date; or b. An exemption from reduction of the demolition tax has been granted under LOC 24.06.050, but the residential structure is not removed through deconstruction that complies with all requirements of that section and all applicable rules and procedures adopted by the City Manager. 2. The current owner of the property on which the residential structure was located shall pay the City a processing fee in an amount established by resolution of the City Council. 3. The exemption, reduction or refund will be terminated and the entire exempted, reduced or refunded amount of the demolition tax, plus the processing fee, together with interest from the date the exemption, refund, or permit with tax reduction was granted at a rate established by the City Council, shall become immediately due and payable by the current owner of the property. 4. The City Manager shall furnish a notice of the noncompliance under subsection (1)(a) or(1)(b) of this section, together with a statement of the charges and fees under this section and a description of the objection and hearing process, to the current owner of the property in person or by certified mail, return receipt requested, addressed to the current owner at the last known address as shown in the county property tax assessment records. If no objection is filed with the City Recorder within 15 days of the date the notice is mailed, the reinstated demolition tax amount, processing fee, and interest shall be a lien against the property. 5. If the current owner files an objection within the 15-day period, the City Council shall hold a public hearing, upon notice sent to the current owner by first class mail not less than 15 days in advance, to consider the oral and written testimony and materials provided by the City Manager, the current owner, or other interested persons. Following the hearing, the City Council shall determine whether the events described in subsection (1)(a)or(1)(b)of this section have occurred and, if so, the amounts that are due and payable under this section. The amounts determined by the City Council shall be a lien against the property on which the residential structure was located. The City Council's decision shall be final. 6. The City Manager shall docket the lien in the City lien docket. The lien shall be enforceable in the manner provided in ORS Chapter 223. Attachment 4 Page 5 of 8 24.06.080 Violations. 1. Violation of any provision of this article shall constitute a civil violation that shall be processed according to the procedures established in LOC Article 34.04. Each violation of a separate provision of this article shall constitute a separate offense and each day that a violation is committed or permitted to continue shall constitute a separate offense. Without waiving the generality of the foregoing, it shall be a violation for any person to: a. Fail or refuse to pay the tax established in this article; b. Provide any false or fraudulent information, or fail to provide any required information or documentation, with relation to the tax imposed or the exemptions, reductions or refunds allowed under this article; c. Demolish a residential structure other than by the required deconstruction after being granted a tax reduction for deconstruction under LOC 24.06.050; d. Construct development on property on which a residential structure has been demolished other than by the required deconstruction after a demolition tax reduction has been granted under LOC 24.06.050, unless the entire amount of the reduction together with the processing fee and interest, have been paid to the City under LOC 24.06.070; or e. Fail to comply with the requirements of a covenant under LOC 24.06.040(2)(d) or(3)(c). 2. The remedies provided in this section are not exclusive and shall not prevent the City from exercising any other remedy available under the law. *** Attachment 4 Page 6 of 8 Article 45.12 Demolishing or Moving Buildings. // 45.12.100 Demolition of Dwellings. 1. Definitions. a. "Building Official" means the person appointed by the City Manager to enforce the provisions of the Building Code, or designee. b. "Certified Deconstruction Contractor" means as defined in LOC 24.06.020. c. "Deconstruction" means as defined in LOC 24.06.020. db. "Demolition" or"demolish" means removal of 50% or more of the total surface area of exterior walls or perimeter foundation of a residential structure as it existed on June 2, 2022, either as a single project or cumulatively over five years or less. ec. "Exterior wall"for the purpose of this section means a wall enclosing a dwelling that has a surface exposed to the outside, including all framing and sheathing, from top plate to bottom plate on all stories. 2. The owner of real property upon which a dwelling exists that the owner intends to demolish shall: a. Not less than 15 consecutive days before commencing work to demolish the dwelling, complete a written certification that the property will be posted and abutting property owners notified pursuant to subsection (2)(b) of this section, and submit the certification to the Building Official; b. Not less than 14 consecutive days before commencing work to demolish a dwelling: i. Post a public sign displaying a notice of demolition (form of sign available from the Building Official)on the subject property or access easement abutting the property, in a location that is clearly visible and readable from vehicles traveling on a public street and to persons walking by the property; and ii. Mail a notice of demolition (form of notice available from the Building Official)to the street address of each abutting residential property informing residents of the demolition; and c. Maintain the posting for 14 consecutive days following the posting of the property and until the demolition commences. Attachment 4 Page 7 of 8 3. Notice of Demolition. The posted and mailed notices of demolition shall state that the owner intends to commence demolition for the dwelling(s)on the property, and include the date of posting or mailing, planned date or dates of demolition, and contact information for the owner. 4. If demolition activities cease on the property for more than 60 days, a new notice of demolition is required pursuant to subsection (2) of this section. 45.12.110 Deconstruction of Dwellings Required, Demolition of residential structures built in the year 1940 or earlier shall be by deconstruction only and follow the procedures for deconstruction under LOC 24.06.050, LOC 24.06.070 and LOC 24.06.080, *** Attachment 4 Page 8 of 8 11 .2 Ar, ,AtCOUNCIL REPORT �� o AEG% Subject: Ordinance 2903, An Ordinance Prohibiting Psilocybin-Related Businesses Meeting Date: November 15, 2022 Staff Member: Evan Boone, City Attorney Pro Tern Report Date: November 2, 2022 Department: City Attorney's Office Action Required Advisory Board/Commission Recommendation O Motion ❑ Approval O Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution 0 Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: Per direction of the Council at the November 1, 2022 study session, and to provide time to consider preparation of an ordinance for time, manner and place restrictions for psilocybin manufacturing and service centers, enact Ordinance 2903. Recommended Language for Motion: Move to enact Ordinance 2903, An Ordinance of the City of Lake Oswego Declaring a Prohibition on Psilocybin-Related Businesses Within the City. Project/ Issue Relates To: Psilocybin-Related Businesses with City Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) Not Applicable ISSUE BEFORE COUNCIL Whether or not to enact Ordinance 2903, which would declare a prohibition on psilocybin- related businesses within the City. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND A Study Session was held before the Council on November 1, 2022. Measure 109 legalized and regulated the manufacture, sale, and administration of psilocybin. The Oregon Health Authority will begin taking license applications on January 2, 2023 unless the City adopts an ordinance banning psilocybin-related businesses. See November 1, 2022 Study Session Council Report on Psilocybin. DISCUSSION Banning Ordinance Adopting a banning ordinance, prohibiting psilocybin manufacturing and service centers, would prohibit the Oregon Health Authority (OHA) from issuing licenses for such businesses until after January 2 after the next statewide general election, to wit: Jan. 2, 2025. If the voters repealed the banning ordinance, then OHA would issue licenses. At the November 1, 2022 Council meeting, the Council directed staff to: • Submit a banning ordinance for Council consideration at its November 15 meeting. • Not submit at this time a Resolution to refer the banning ordinance to the voters at the November 5, 2024 election. Staff will bring the Resolution back before the Council when it is the appropriate time to file the measure with the county clerks (late-Spring 2024). Time, Place and Manner Restrictions An ordinance establishing greater (but reasonable) time, place and manner restrictions than provided by statute [service centers must be not be closer than 500 ft. from schools, not in exclusively residential zones (ORS 475A.305, -310] could be developed during the period of the banning ordinance, to be effective if either the voters repealed the banning ordinance at the next statewide election or the Council elected to repeal the banning ordinance once a time, place and manner ordinance was enacted. OHA License Requirements Some councilors asked questions relating to the OHA eligibility requirements for psilocybin manufacturing and service centers. OHA has existing rules and has released proposed rules (Attachment 3), with adoption of proposed rules in some form on or prior to December 30, 2022. As a thumbnail of the eligibility rules: General License Requirements • Two-year residency requirements are key until January of 2025. (OAR 333-333-4050) • GED/high school equivalent required. (ORS 475A.325) • Fingerprints and criminal background check. (OAR 333-333-4100) • Successful completion of the course and online exam (75% correct); can re-take as many times as needed to pass. (OAR 333-333-3200) Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 • License fee (depends on the license applied for: Facilitator is $2,000; Service, Manufacturer and Laboratory are all $10,000 each. Reduced fees 50%for non-profits, military, SSI recipients, Oregon Health Plan enrollees, and those on food stamps. (OAR 333-333-4060) Services Center Facilitators • Supportive touch allowed at client's request (limited to hugging or placing hand on client's hand or shoulder); no romantic relationships, sexual contact or intimacy with clients or during sessions or for 1 year after last treated. (OAR 333-333-5120) • Mandatory reporter. (OAR 333-333-5120) • Specifically calls out that the facilitator cannot engage in any conduct that requires additional professional licensure to include not diagnosing or treating physical or mental health conditions. Also, if facilitator holds a professional license in a different field, facilitator shall not exercise the privileges of that license while providing psilocybin services to clients. (OAR 333-333-5130) Facilities Proposed: • Onsite restrictions/requirements, nothing in terms of odor or anything else obnoxious or noxious. Sounds more like a lab which OHA tests and monitors. • Proximity requirements to schools, liquor stores, medical marijuana establishments and licensed health care facilities. (OAR 333-333-4300) • Submit a detailed, scaled floor plan of the building. (OAR 333-333-4000) • Time limit on operations, i.e., 6am — 11:59pm. (OAR 333-333-4480) • Requirements for extensive alarm and monitoring systems, daily log requirements. (OAR 333-333-4600/4620/4630/4650/4600 for alarm and monitoring; OAR 333-333- 4400 for log) • Storing product in locked safe. (OAR 333-333-4510) • Store, manage and dispose of waste according to solid, hazardous waste and wastewater requirements as required by ORS (OAR 333-333-8000) RECOMMENDATION Per direction of the Council at the November 1, 2022 study session, and to provide time to consider preparation of an ordinance for time, manner and place restrictions for psilocybin manufacturing and service centers, enact Ordinance 2903. ATTACHMENTS 1. Ordinance 2903 2. November 1, 2022 Study Session Council Report on Psilocybin 3. OHA Rules (Existing and Proposed) for Psilocybin Facilities and Service Center persons Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 ORDINANCE 2903 AN ORDINANCE OF THE CITY OF LAKE OSWEGO DECLARING A PROHIBITION ON PSILOCYBIN-RELATED BUSINESSES WITHIN THE CITY WHEREAS,the City Council of the City of Lake Oswego finds that: A. The Oregon Psilocybin Services Act,through Measure 109, was submitted to the voters of the State of Oregon at the November 2020; B. The voters adopted Measure 109, which directs the Oregon Health Authority("OHA")to license the manufacture, delivery, administration of psilocybin (psychoactive mushroom) at supervised, licensed facilities; C. Measure 109 provides that OHA shall begin accepting applications for licenses to manufacture, deliver and administer psilocybin on January 2, 2023; D. Section 128 of Measure 109, now codified as ORS 475A.718, provides that a city council may adopt an ordinance prohibiting psilocybin-related businesses (Psilocybin service centers and Psilocybin product manufacturers) in the area subject to the jurisdiction of the city, and that the city council "shall submit the measure of the ordinance"to the electors of the city at the next statewide general election for approval following adoption of the ordinance; E. Upon receiving notice of adoption of an ordinance prohibiting psilocybin-related businesses in the area subject to the jurisdiction of the city, ORS 475A.718(4) provides that OHA shall discontinue licensing those premises to which the prohibition applies until the next statewide general election; F. The City Council desires to prohibit psilocybin-related businesses within Lake Oswego until such time as the voters of Lake Oswego are able to vote to either continue or discontinue the prohibition of psilocybin-related business to the voters of Lake Oswego; and G. The City Council desires to refer the question of whether to prohibit psilocybin-related businesses to the voters of Lake Oswego at the next statewide general election. The City of Lake Oswego ordains as follows: Section 1. DEFINITIONS: The definitions of ORS 475A.220 are hereby adopted and incorporated herein. BAN DECLARED. As described in ORS 476A.718(1),the City of Lake Oswego hereby prohibits the establishment and operation of the following in the area subject to the jurisdiction of the City: (a) Psilocybin product manufacturers that hold a license issued under ORS 475A.290; (b) Psilocybin service center operators that hold a license issued under ORS 475A.305; or (c)Any combination of the entities described above. ORDINANCE 2903 Page 1 of 2 Section 2. Severability. The provisions of this Ordinance are severable. If any portion of this Ordinance is held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. Section 3. Referral. This Ordinance shall be referred to the electors of the City of Lake Oswego at the next statewide general election on Tuesday, November 5, 2024. Section 4. Notice to Oregon Health Authority. Pursuant to ORS 475A.718(3),the City Recorder shall provide notice of adoption of this Ordinance to the Oregon Health Authority promptly following adoption and no later than December 31, 2022. ADOPTED AND ENACTED at the meeting of the Lake Oswego City Council held on the 15th day of November, 2022. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Evan Boone, City Attorney Pro Tem ORDINANCE 2903 Page 2 of 2 ATTACHMENT 2 "-AA 4� COUNCIL REPORT o ORE00� Subject: Study Session - Psilocybin Meeting Date: November 1, 2022 Staff Member: Evan Boone, City Attorney Pro Tern Report Date: October 25, 2022 Department: City Attorney's Office Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑X Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: N/A Recommended Language for Motion: N/A Project/ Issue Relates To: Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable ISSUES BEFORE COUNCIL Study session regarding psilocybin manufacturers or service centers: • Nov. 15, 2022 Council decisions: o Whether to enact an ordinance banning psilocybin manufacturers or service centers through December 31, 2024, and o If a banning ordinance is enacted, when a Resolution referring the ordinance to the November 5, 2024 election should be considered. • Timeline for possible time, place and manner restriction ordinance. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 EXECUTIVE SUMMARY Measure 1091 legalized and regulated the manufacture, sale, and administration of psilocybin. The OHA will begin taking license applications on January 2, 2023; the OHA has not published on its website how long they expect review of applications to take and thus when licenses will first be issued. Cities may opt-out of licenses being issued for manufacturers and services centers within the City. The optimum time for enacting a banning ordinance, if the Council so elects, is November, 15, 2022. If enacted, the ordinance banning psilocybin facilities must be referred to the City's voters at the next statewide general election (November 5, 2024).2 The Council may consider enacting local time, place and manner restrictions beyond the statutory prohibition of prohibiting service centers in zones that are exclusively for residential use and within 500 ft. / 1000 ft. from public and private schools. BACKGROUND Psilocybin is a naturally occurring psychedelic compound occurring in over 200 species of fungi. Psilocybin is also listed as a Schedule I drug3 on the Controlled Substances Act. Psilocybin is commonly referred to as "magic mushrooms" and is ingested orally alone or added to food or beverage. Common side effects can range from nausea, vomiting and lack of coordination to hallucinations, inability to discern fantasy from reality, and panic attacks. It has also been said to bring about a general feeling of spiritual well-being. Due to its antidepressant properties, psilocybin has recently been designated as a breakthrough therapy by the US Food and Drug Administration (FDA) to be a viable treatment option for managing drug-resistant depression. Clinical trials are still underway and FDA approval is not expected for many years.4 Measure 1095, passed in November 2020, legalizes, regulates and taxes the manufacture, sale, and administration of psilocybin for mental health purposes and directs the Oregon Health Authority (OHA) to license and regulate psilocybin products and the provision of psilocybin services. It was an initiative measure, led by the Oregon Psilocybin Society, and passed by the voters by a state-wide margin of 55.7% in favor and 44.3% opposing. Clackamas County passed the Measure with 52.4%of voters in favor and 47.6% opposed.' 1 Now codified in ORS 475A. 2 ORS 254.056 defines"general election" as the election held on the first Tuesday after the first Monday in November of each even-numbered year. 3 A Schedule I drug is one which has no currently accepted medical use and a high potential for abuse. 4 A thorough discussion of the medical uses and trials underway is available from the Scientific American Journal authored by Mason Marks, assistant professor of law and member of the Oregon Psilocybin Advisory Board. S Now codified in ORS 475A. 'Clackamas County Elections does not have a total for lust Lake Oswego. The County did provide the official results for the individual precincts covering Lake Oswego which shows of the ballots returned, 13,436 votes were Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 DISCUSSION Licensing and Manufacturing The explanatory statement for Measure 109 reads in part: Ballot Measure 109 directs the Oregon Health Authority to regulate the manufacture, delivery, purchase, and consumption of psilocybin [. . .] at licensed psilocybin service centers. A person would be allowed to purchase, possess, consume, and experience the effects of psilocybin only at a licensed psilocybin service center during a psilocybin administration session with a licensed psilocybin service facilitator. The measure also directs the OHA to issue, renew, and revoke licenses in compliance with the measure. To be clear, persons are not able to purchase psilocybin to consume at home or at locations other than at an OHA-licensed service center. A person seeking treatment with psilocybin products would have to visit a an OHA-licensed service center (which cannot be a primary residence) and be evaluated by a licensed service facilitator.' The session at the service center would consist of several phases: • a preparatory phase, • an administration phase, where the psilocybin is administered, • an observation phase, where the client is observed and experiences the effect of psilocybin, and • an integration session. The service center can only offer products that were cultivated or produced by a licensed psilocybin manufacturer. The Oregon Health Authority regulates the licensing and manufacturing' of psilocybin. Generally, a manufacturer's license requires an individual to: • Be a resident of the state for two years prior to submitting an application; cast in favor and 9,674 votes were cast in opposition to Measure 109. Lake Oswego is covered by precincts 151, 153, 155, 156, 158, 159 and 160. 'A licensed service facilitator would not necessarily be a medical professional as no prescription is needed for psilocybin. However,a licensed service facilitator would have to be,among other things, at least 21 years of age, a resident of Oregon for at least two years, have a high school diploma or equivalent,and complete and successfully pass the appropriate training,education and exams required by OHA for licensing. ORS 475A.325. s"Manufacture" means the manufacture, planting,cultivation,growing, harvesting, production, preparation, propagation,compounding,conversion or processing of a psilocybin product,either directly or indirectly by extraction from substances of natural origin,or independently by means of chemical synthesis,or by a combination of extraction and chemical synthesis,and includes any packaging or repackaging of the psilocybin product or labeling or relabeling of its container. ORS 475A.220(7). Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 • Be at least 21 years of age; • Either own the facility being used for manufacturing or provide the owner's informed consent; • Renew its license on a yearly basis; and • Test its psilocybin products manufactured.9 The OHA will begin taking license applications on January 2, 2023, and issuing licenses after that date. Local Opt-Out: Banning Ordinance and Voter Referral The Council may adopt an ordinance10 banning: • Licensed psilocybin product manufacturers; • Licensed psilocybin service center operators; or • Any combination of those entities. In order to stay OHA issuance of licenses within cities, cities may adopt a banning ordinance. The banning ordinance must be referred to the voters at the next statewide general election. A number of other Oregon cities have already adopted banning ordinances and they are on this November's ballot for voter approval or repeal. If the Council elects to enact a banning ordinance, the optimum time is at its November 15 meeting: that is after the statewide general election on November 8, 2022, but the banning 9 ORS 475A.290 io ORS 475A.718 Adoption of ordinances; referral to electors for approval. (1)The governing body of a city... may adopt ordinances to be referred to the electors of the city or county as described in subsection (2)of this section that prohibit or allow the establishment of any one or more of the following in the area subject to the jurisdiction of the city or in the unincorporated area subject to the jurisdiction of the county: (a) Psilocybin product manufacturers that hold a license issued under ORS 475A.290; (b) Psilocybin service center operators that hold a license issued under ORS 475A.305; or (c)Any combination of the entities described in this subsection. (2) If the governing body of a city or county adopts an ordinance under this section,the governing body shall submit the measure of the ordinance to the electors of the city or county for approval at the next statewide general election. (3) If the governing body of a city or county adopts an ordinance under this section,the governing body must provide the text of the ordinance to the Oregon Health Authority. (4) Upon receiving notice of a prohibition under subsection (3)of this section,the authority shall discontinue licensing those premises to which the prohibition applies until the date of the next statewide general election. (5) If an allowance is approved at the next statewide general election under subsection (2)of this section,the authority shall begin licensing the premises to which the allowance applies on the first business day of the January immediately following the date of the next statewide general election. (6) Notwithstanding any other provisions of law,a city or county that adopts an ordinance under this section that prohibits the establishment of an entity described in subsection (1)of this section may not impose a tax or fee on the manufacturing or sale of psilocybin products. ORS 475A.718. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 5 ordinance's effective date would be before when OHA would begin taking license applications on January 2, 202311. The Lake Oswego voters would then consider affirming or repealing the banning ordinance on November 4, 2024. OHA may not issue a license until Jan. 2 following the next statewide general election, to wit: January 2, 2025, assuming the ban is repealed by the voters. A resolution referring the banning ordinance to the voters could be adopted at the same time as the ordinance, but it cannot be filed with the County Clerk until late-Spring 2024 closer to the November 5, 2024 election. If Council elects to not pursue a banning ordinance at this time, it can do so at a later time. However, any facilities, operators, or manufacturers licensed prior to the effective date of the banning ordinance would be allowed to continue doing business in the City. No new licenses would be issued during the period of the effective date of the ordinance until January 2 following the next statewide general election (and voter repeal) after the banning ordinance is adopted. Taxes A sales tax of 15% of the retail sales price for the product or service is imposed, with the money deposited into an Oregon Psilocybin Account for the Psilocybin Control and Regulation Fund. (Sec. 114, 126, 127). The money is used to enforce the provisions of ORS 475A, including regulating psilocybin services and compensating the Oregon Psilocybin Advisory Board. Local governments are prohibited from enacting their own taxes on the manufacture or sale of psilocybin products. (Sec. 82). Time, Place and Manner Restriction Ordinance The Measure includes a minimum location restriction for service centers: they cannot be located in areas zoned exclusively for residential use. (ORS 475A.305(1)(c)(B)). It must also be located more than 1,000 feet of an existing (at the time of license) public elementary or secondary school, or a private or parochial elementary or secondary school, except it may be located no closer than 500 ft. if OHA determines that there is a physical or geographic barrier capable of preventing children from traversing to the premises of the psilocybin service center. [ORS 475A.305, .310, .315]. Cities may enact additional time, manner and place restrictions, which would be applicable to new licensees. Lake Oswego does not currently have any specific time, place and manner regulations adopted for psilocybin facilities. If the City wished to adopt additional time, manner 11 A copy of the banning ordinance would need to be provided to OHA prior to December 31, 2022. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 6 and place restrictions, it should ban psilocybin facilities until the additional time, manner and place restrictions are effective.12 ORS 475A.530 Local time, place and manner regulations. (1) For purposes of this section, "reasonable regulations" includes: (a) Reasonable conditions on the manner in which a psilocybin product manufacturer that holds a license issued under ORS 475A.290 may manufacture psilocybin products; (b) Reasonable conditions on the manner in which a psilocybin service center operator that holds a license issued under ORS 475A.305 may provide psilocybin services; (c) Reasonable limitations on the hours during which a premises for which a license has been issued under ORS 475A.210 to 475A.722 may operate; (d) Reasonable requirements related to the public's access to a premises for which a license has been issued under ORS 475A.210 to 475A.722; and (e) Reasonable limitations on where a premises for which a license may be issued under ORS 475A.210 to 475A.722 may be located. (2) Notwithstanding ORS 30.935, 215.253 (1) or 633.738, the governing body of a city or county may adopt ordinances that impose reasonable regulations on the operation of businesses located at premises for which a license has been issued under ORS 475A.210 to 475A.722 if the premises are located in the area subject to the jurisdiction of the city or county, except that the governing body of a city or county may not adopt an ordinance that prohibits a premises for which a license has been issued under ORS 475A.305 from being located within a distance that is greater than 1,000 feet of another premises for which a license has been issued under ORS 475A.305. If the Council elects to enact a banning ordinance, the Council may also consider initiating the time, place and manner ordinance, so that it would be ready for adoption and effective before licenses would be issued (if the 2024 voters repealed the banning ordinance.) Thus, as the Planning Department did for marijuana facilities, during the period of the ban, the development of a time, place and manner ordinance— including public hearings by the Planning Commission and City Council -- would occur prior to the November 5, 2024 election date but adoption of the time, place and manner ordinance could be delayed until the Council's November 19, 2024 meeting, to ascertain whether the voters repealed the banning ordinance. If a time, place, and manner ordinance is enacted on November 19, 2024, it would be effective for any licenses issued starting January 2, 2025. ATTACHMENTS 1. Draft Banning Ordinance 2. Draft Resolution Referring Banning Ordinance to Voters (for Nov. 5, 2024 election) 12 The Measure specifically allows repeal of a banning ordinance prior to the next statewide general election. (Sec. 83). Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. OREGON ADMINISTRATIVE RULES OREGON HEALTH AUTHORITY, PUBLIC HEALTH DIVISION CHAPTER 333 DIVISION 333 PSILOCYBIN 333-333-1010 Definitions (1) "Adulterant"means chemicals, drugs, plants or substances that alter the potency, intoxicating effect, duration of effect, toxicity or potential for excessive use when added to psilocybin products. Adulterant does not include naturally occurring substances contained in food items such as, but not limited to chocolate. (2) "Adverse behavioral reaction"means client behavior that a facilitator reasonably believes may endanger the safety of the client, facilitator, or others. (3) "Adverse medical reaction"means a client's physiological reaction occurring during an administration session that a facilitator reasonably believes may lead to medical harm. For example, a cardiac event or other health emergency. (4) "Advertising"means publicizing the trade name of a licensee together with words or symbols referring to psilocybin or publicizing the brand name of a psilocybin product. (5) "Applicant" means an individual who applies for a facilitator license and an individual or legal entity who: (a) Holds or controls an interest of more than 20 percent in the entity proposed to be licensed; (b) Is entitled to receive 20 percent or more of revenue,profits or proceeds from the entity proposed to be licensed; or (c) Is entitled to exercise control over the entity proposed to be licensed. (6) "Attractive to minors"means: (a) Cartoons; (b) A design, brand or name that resembles a non-psilocybin consumer product of the type that is typically marketed to minors; (c) Symbols or celebrities that are commonly used to market products to minors; (d) Images of minors; or (e) Words that refer to products that are commonly associated with minors or marketed by minors. (72) "Authority"means the Oregon Health Authority. (8) "Authorized Authority representative"means an employee of the Authority who is authorized to conduct inspections or investigations and otherwise enforce ORS chapter 475A and any rules adopted thereunder. (93) "Batch"means a quantity of whole fungi from a harvest lot, or a quantity of psilocybin product from a process lot. Page 1 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (10) "Billboard"means a large outdoor advertising structure. (114) "Capsule"means a small soluble pill, tablet or container that contains liquid or powdered psilocybin product and is intended for human consumption. (12) "Cartoon"means any drawing or other depiction of an object,person, animal, creature or any similar caricature which may exhibit any of the following: (a) The use of comically exaggerated features; (b) The attribution of human characteristics to animals, plants or other objects, or the similar use of anthropomorphic technique; or (c) The attribution of unnatural or extra-human abilities, such as imperviousness to pain or injury, X-ray vision, tunneling at very high speeds or transformation. (136) "Chemical synthesis"means the production of psilocybin using precursor ingredients rather than cultivation of fruiting bodies and mycelium. (14) "Client administration area" means any area within the licensed premises of a service center where: (a) Psilocybin products may be transferred to a client; (b) Psilocybin products may be consumed by a client; and (c) Administration sessions may take place. (15) "Client information form"means the form required by ORS 475A.350. (16) "Client packaging" means packaging containing psilocybin products intended to be sold to clients. (17) "Client support person" means a person who will be present during a client's administration session for any purposes described in OAR 333-333-5050(5)(d), (f), (g) or(j). (18) "Control over the entity" includes but is not limited to the authority to bind the entity to contracts, obligations or debt and does not include a license representative acting under the direction of a licensee. (19) "Cultivation batch"means a quantity of unharvested fruiting body or mycelium that is grown together under the same conditions. (20)"Cultural equity"means values,policies, and practices that ensure all people, especially those who have been historically marginalized based on race, ethnicity,language, disability,age,gender, gender identity, sexual orientation, social class, intersections among these communities or identities, or other socially determined circumstances are considered in the development of social pathways to health equity. (21) "Curriculum" means the topics, subjects, and activities that make up courses taught by a training program. (22) "De-identified data" means client information from which the Authority or other entity has deleted, redacted, or blocked identifiers so the remaining information cannot reasonably be used to identify an individual. (236) "Edible psilocybinpsylocibin product" means psilocybin extract or homogenized fungi that has been incorporated into a food item or potable beverage. (24) "Elementary school": (a) Means a learning institution containing any combination of grades kindergarten through 8. Page 2 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (b) Does not mean a learning institution that includes only pre-kindergarten, kindergarten, or a combination of pre-kindergarten and kindergarten. (257) "Extraction"means: (a) The process of separating psilocybin from fungi by using a solvent; and (b) Manufacturing psilocybin extracts. (26) "Facilitation"means the provision of services to a client by a licensed facilitator during a preparation, administration, or integration session. (27) "Financial interest": (a) Means entitlement to receive a portion of revenue,proceeds or profits from a licensed entity or an entity proposed to be licensed; or (b)A membership interest, partnership interest or other ownership interest in a licensed entity or an entity proposed to be licensed. (c) Includes any individual person or legal entity that qualifies as an applicant under OAR 333- 333-1010(5) or 333-333-4030. (d) Does not include an investment interest that the investor does not control in nature, amount or timing. (288) "Fruiting bodies"means the spore producing organs of the fungi Psilocybe cubensis. (299) "Fungi"means the fruiting bodies or mycelium of the fungi Psilocybe cubensis. (30) "Harvest" means the act of removing mycelium or fruiting bodies from a production environment for drying or processing. (314-0) "Harvest lot"means a specifically identified quantity of fungi that is cultivated and dried under the same conditions and harvested within a 24-hour period at the same location within the licensed premises. (32) "Health equity"means the opportunity for all people to reach their full health potential and well-being without being disadvantaged by their race, ethnicity, language, disability, age, gender, gender identity, sexual orientation, social class, intersections among these communities or identities or other socially determined circumstances. (3344) "Homogenized fungi"means dried fruiting bodies or mycelium that have been mixed by powdering or other techniques which uniformly distribute psilocybin throughout the product. Homogenized products may contain inactive ingredients such as binders, dilutants and carrying agents. (34) "Intervention"means taking proactive steps to respond to the client's behavior, experience, or condition during an administration session. (35) "Intoxicant" means any substance that has intoxicating effects, and includes alcohol, prescription drugs, non-prescription drugs and any other controlled substances. (364-2) "Laboratory"means a laboratory licensed under ORS 475A.594. (37) "Lead educator"means a person affiliated with a training program who is responsible for tracking the progress of students throughout the program. (38) "License representative": (a) Means an owner, director, officer, manager, employee, agent or other representative of a manufacturer, service center, or laboratory licensee. Page 3 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (b) Does not mean a facilitator who provides services at a service center unless that facilitator is also an owner, director, officer, manager, employee, agent or other representative of the service center. (39) "Licensed premises": (a) Means the area of a location that is licensed under ORS chapter 475A, including: (A) All public and private enclosed areas at the location that are used in the licensee's operations at the location; (B) All areas outside a building that are used in the licensee's operations at a location for which the Authority has issued a license for a manufacturer or service center; and (C) For a location that the Authority has specifically issued a license for the operation of a psilocybin service center, any outdoor area of the location used to operate the psilocybin service center and provide psilocybin services to clients. (b) Cannot include a residence. (c) Cannot contain unlicensed areas within the boundaries of the licensed premises. (40) "Licensee"means any person who holds a license issued under ORS chapter 475A and includes each individual and legal entity identified as an applicant on an application that the Authority has approved and each individual or legal entity who is added to the license as described in OAR 333-333-4200. (41) "Limited access area"means any area of a licensed premises where psilocybin products or waste are stored or produced. (424-3) "Manufacturer"means a manufacturer licensed under ORS 475A.290. (434-4) "Manure"means animal excreta, alone or in combinations with litter, such as straw and feathers used for animal bedding, for use as a soil amendment or substrate. Manure does not include stabilized compost produced through a controlled composting process. (44) "Marijuana"has the meaning given that term in ORS 475C.009. (454-5) "Mycelium"means the fungal threads or hyphae of Psilocybe cubensis. (46) "Nondirective facilitation"means a client-directed approach to facilitation in which the facilitator maintains a consistent disposition with a client, while avoiding giving the client direct advice or directly interpreting a client's statements, behaviors or needs unless appropriate for health and safety reasons. (47) "Non-profit entity" means a nonprofit corporation organized under ORS chapter 65, registered with the Secretary of State as a nonprofit organization, and registered with the Oregon Department of Justice as a charitable organization, if applicable. (48) "Oregon Psilocybin Services Act"means ORS 475A.210 to ORS 475A.722. (494-6) "Pesticide"means any substance or mixture of substances included in ORS 634.006(8). (50) "Permittee"means a person who holds a permit issued under ORS 475A.480. (51) "Practicum site"means a designated service center that provides practicum training. (52) "Practicum site supervisor"means an onsite practicum supervisor of assigned trainees, affiliated with a practicum site. (53) "Pre-production process" means cultivation environments that are used to facilitate growth of mycelial tissue prior to that tissue being transferred to production growth medium. Examples include but are not limited to agar dishes and grain spawn. Page 4 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (544-7) "Process lot"means homogenized fungi,psylocibin extract or edible psilocybin product of the same type that was processed at the same time using the same processing method, ingredients, and standard operating procedures. (55) "Production process"means cultivation environments from which fruiting bodies or usable mycelium are harvested, including but not limited to substrates used in the production of fruiting bodies. (564-8) "Psilocybin"has the meaning described in ORS 475A.220means psilocybin or psilocin. (57) "Psilocybin analyte"has the meaning described in OAR 333-064-0025. As used in these rules psilocybin analyte refers to content of a psilocybin analyte as measured by potency tests required by OAR 333-333-7040. (584-9) "Psilocybin extract"means: (a)A substance consisting entirely of solid or liquid psilocybin and may include other compounds which were simultaneously extracted from fruiting bodies or mycelium of Psilocybe cubensis; and (b)A substance consisting of solid or liquid psilocybin and may include other compounds which were simultaneously extracted from fruiting bodies or mycelium of Psilocybe cubensis and inactive ingredients that are used to form capsules, tinctures and other oral preparations. I (592-A) "Psilocybin Tracking System" or "PTS" means the system for tracking psilocybin products required by ORS 475A.400. I (6021) "Psilocybin product"means psilocybin-producing fungi, mycelium and mixtures or substances containing a detectable amount of psilocybin, including whole fungi, homogenized fungi, psilocybin extract and edible psilocybin products. (61) "Radio"means a system for transmitting sound without visual images, and includes broadcast, cable, on-demand, satellite, or internet programming. Radio includes any audio programming downloaded or streamed via the internet. (62) "Residence"means real property inhabited by an owner, renter or tenant, including manufactured homes and vehicles used as domiciles. (63) "Responsible referral and support"means supporting the personal needs, growth, and wellbeing of others, particularly those going through temporal crises such as houselessness, illness or marginalization. (64) "Safe"means a fireproof metal cabinet with a mechanical or electronic combination lock that is capable of storing psilocybin products and weighs at least 375 pounds. (65) "Scope of practice" means practice boundaries related to psilocybin facilitation and avoiding the unlicensed practice of other disciplines including but not limited to medicine or psychotherapy. (66) "Secondary school"means a learning institution containing any combination of grades 9 through 12 and includes junior high schools that have 9th grade. (67) "Service center"means a premises licensed under ORS 475A.305. (68) "Sublet"means to sublease or otherwise allow a person who is not a license representative to exercise privileges that require a manufacturer, service center, facilitator or laboratory license on the licensed premises. Sublet does not include a facilitator providing psilocybin services at a service center. Page 5 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (69) "Synchronous learning"means that students learn from their instructor at the same time as their fellow students. (70) "Television"means a system for transmitting visual images and sound that are reproduced on screens, and includes broadcast, cable, on-demand, satellite, or internet programming. Television includes any video programming downloaded or streamed via the internet. (7122) "These rules" means Oregon Administrative Rules (OAR) 333-333-1010 through 333- 333-8260, chapter 333, division 333. (7223) "Tincture"means a liquid containing psilocybin that consists of either: (a)A non-potable solution of at least 25 percent non-denatured alcohol, that is exempt from the Liquor Control Act under ORS 471.035; or (b)A non-potable solution comprised of glycerin, plant-based oil, syrup and other ingredients. (73) "Training, Licensing and Compliance System (TLC)"means the online training, license and compliance portal maintained by the Authority to receive applications, communicate with applicants, licensees,permittees and training programs, and track compliance actions. (74) "Training program" means a program that has been approved to offer training to psilocybin facilitators as described in ORS 475A.380. (75) "Training program applicant" means a program that has applied to offer training to psilocybin facilitators as described in ORS 475A.380. (76) "Unique identification number"means a unique number generated by the Authority's designated vendor for the psilocybin tracking system for the purpose of tracking psilocybin products within the psilocybin tracking system. (77) "Unique identification tag"means a tag that contains a unique identification number that was ordered and received from the Authority's designated vendor for the psilocybin tracking system for the purpose of tracking psilocybin products in the psilocybin tracking system. (7824) "Whole fungi"means dried fruiting bodies of Psilocybe cubensis, or portions thereof, that have not been homogenized. (7925) "Wood chips"mean substrates consisting primarily of wood products that have not been composted. I (80) "Worker permit"means a permit required by ORS 475A.480. Statutory Authority: ORS 475A.235 Statutes Implemented: ORS 475A.235 333-333-2015 Allowable Species A manufacturer may only cultivate, manufacture or possess fruiting bodies of the fungi species Psilocybe cubensis and psilocybin products derived from Psilocybe Cubesis on the licensed premises. Statutory Authority: ORS 475A.235 Statutes Implemented: ORS 475A.235 333-333-2200 Psilocybin Product Quantity Limits Page 6 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (1) Quantities of psilocybin products shall be measured in total grams of psilocybin analyte contained in a product that has been tested for potency as required by OAR 333-333-3070. (2)A manufacturer must ensure that potency tests required by OAR 333-333-3070 are completed within 180 days of recording a harvest lot or production lot in the psilocybin tracking system. (3)A manufacturer may possess a total of no more than 200 grams of psilocybin analyte, as described in section(1) of this rule, at any given time. (4)A service center may possess a total of no more than 100 grams of psilocybin analyte, as described in section(1) of this rule, at any given time. (5)A manufacturer or service center may request authorization in writing to exceed the limits described in sections (3) and(4) of this rule in a form and manner prescribed by the Authority. (6) Psilocybin products that have been designated as waste will not be considered when calculating the limits described in sections (3) and (4) of this rule. Statutory Authority: ORS 475A.235, ORS 475A.300 Statutes Implemented: ORS 475A.300 333-333-2300 Packaging for Sale to Client (1) Client packaging must protect the packaged psilocybin product from contamination and excessive moisture and must not impart any toxic or harmful substance to the packaged item. (2)All psilocybin products must be transferred to a service center in sealed client packaging for ultimate sale to a client. (3) Psilocybin products for ultimate sale to a client must: (a)Not be packaged or labeled in a manner that is attractive to minors. (b) Comply with serving size requirements identified in OAR 333-333-2310. (c) Be labeled in accordance with OAR 333-333-2400. (4) Client packaging may not display any untruthful or misleading content. Statutory Authority: ORS 475A.235, ORS 475A.634 Statutes Implemented: ORS 475A.634 333-333-2310 Packaging and Serving Size (1)A serving of a psilocybin product may not contain more than 25 mg of psilocybin analyte. (2) Client packaging may not contain more than one serving of a psilocybin product. Statutory Authority: ORS 475A.235, ORS 475A.642 Statutes Implemented: ORS 475A.642 333-333-2400 Labeling for Sale to Client (1)A label required by these rules must: (a) Be printed or attached to client packaging containing psilocybin products. (b) Contain all required information in a legible font at least eight points large. (c) Be in English, though it may also be in other languages. Page 7 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (d) Be unobstructed and clearly visible. (2)A label may not: (a) Display any untruthful or misleading statements including,but not limited to, a health claim that is not supported by the totality of publicly available scientific evidence (including evidence from well-designed studies conducted in a manner that is consistent with generally recognized scientific procedures and principles), and for which there is significant scientific agreement, among experts qualified by scientific training and experience to evaluate such claims; or (b) Be attractive to minors, as that is defined in OAR 333-333-1010. (3) Required Information. Client packaging must display: (a) The manufacturer's business or trade name and license number. (b) One of the following product type names: whole fungi, homogenized fungi,psilocybin extract, or edible psilocybin product. (c) The net quantity of contents using the metric system of measurement and expressed in terms of fluid measure if the item is liquid, or in terms of weight if the item is solid, semi-solid, or viscous. (d) The quantity of psilocybin analyte contained in the product, expressed in milligrams, and calculated using laboratory test results required by OAR 333-333-7040. (e)A unique identification number as defined in OAR 333-333-1010. (f) The "best by" date indicating the time that the manufacturer has determined that their product will retain its original quality. Statutory Authority: ORS 475A.235, ORS 475A.626 Statutes Implemented: ORS 475A.626 333-333-2410 Product Information Document (1) Manufacturers must provide a product information document with all products transferred to a service center that lists the following information in English on a printed or electronic document in 12-point font or larger. (a) The manufacturer's business or trade name and license number. (b) The business or trade name of the manufacturer that packaged the product, if different from the original manufacturer. (c) One of the following product type names: whole fungi, homogenized fungi,psilocybin extract, or edible psilocybin product. (d)Net quantity of contents using the metric system of measurement and expressed in terms of fluid measure if the item is liquid, or in terms of weight if the item is solid, semi-solid, or viscous. (e) Results of all laboratory tests required by OAR 333-333-7040. (f) Species of fungi. (g) Harvest date for whole fungi. (h) Date of manufacture for all products other than whole fungi. (i)Unique identification number as defined in OAR 333-333-1010. (j) List of all ingredients in descending order of predominance by weight or volume. Page 8 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (k) List of potential major food allergens by: (A) Listing the name of the food source of any major food allergen at the end of or immediately adjacent to the ingredient list; or (B)Placing the term for the appropriate major food allergen in parenthesis within the ingredient list after the common or usual name of the ingredient derived from that major food allergen. (1) Estimated activation time, expressed in minutes. (m) "Best by" date indicating the time that the manufacturer has determined that their product will retain its original quality. (n) If the psilocybin product is perishable, a statement that the product must be refrigerated or kept frozen. (2)A facilitator must provide a product information document for all psilocybin products that may be consumed during an administration session during a client's preparation session and provide the client an opportunity to discuss the document. (3)A service center must make reasonable efforts to translate the product information document to languages other than English and otherwise provide the product information document in an accessible format upon the client's request. Statutory Authority: ORS 475A.235 Statutes Implemented: ORS 475A.235 zzz 222 2005 (1) "Adverse Behavioral Reaction" means client behavior that a facilitator reasonably believes may endanger the safety of the client, facilitator, or others. (2) "Adverse Medical Reaction" means a client's physiological reaction occurring during an administration session that a facilitator reasonably believes may lead to medical harm. For example, a cardiac event or other health emergency. (3) "Client Information Form"means the form required by ORS 475A.350. ('I) "Cultural Equity"means values,policies, and practices that ensure all people, especially those who have been historically marginalized based on race, ethnicity,language,disability,age,gender, gender identity, sexual orientation, social class, intersections among these communities or identities, or other socially determined circumstances are considered in the development of social pathways to health equity. (5) "Curriculum" means the topics, subjects, and activities that make up courses taught by a training program. (6) "Facilitation" means the provision of services to clients by a licensed facilitator during (7) "Health Equity" means opportunity for all people to reach their full health potential and well being without being disadvantaged by their race, ethnicity, language, disability, age, gender, gender identity, sexual orientation, social class, intersections among these communities or identities or other socially determined circumstances. (8) "Intervention" means taking proactive steps to respond to the client's behavior, experience, or condition during an administration session. Page 9 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (9) "Lead Educator" means a person affiliated with a training program who is responsible for tracking the progress of students throughout the program. (10) "Nondirective Facilitation" means an approach to facilitation in which the facilitator maintains a consistent disposition with a client, while avoiding giving the client direct advice or directly interpreting a client's statements or behaviors. (11) "Oregon Psilocybin Services Act" means ORS 475A.210 to ORS 475A.722 (12) "Practicum Site"means a designated service center that provides practicum training. (13) "Practicum Site Supervisor" means an onsite practicum supervisor of assigned trainees, affiliated with a practicum site. (14) "Responsible Referral and Support" means supporting the personal needs, growth, and or marginalization. (15) "Service Center"means a premises licensed under ORS 475A.305 (16) "Scope of Practice"means practice boundaries related to psilocybin facilitation and avoiding the unlicensed practice of other disciplines including but not limited to medicine or psychotherapy. (17) "Synchronous Learning" means that students learn from their instructor at the same time as their fellow students. (18)"Training Program Applicant"means a program that has applied to offer training to psilocybin facilitators as described in ORS 475A.380. (19) "Training Program" means a program that has been approved to offer training to psilocybin facilitators as described in ORS 475A.380. Statutory Authority: ORS 475A.235(2)(c) Statutes Implemented: ORS 475A.235(2)(c) and ORS 475A.380 333-333-3200 Facilitator Exam (1) Every applicant for a facilitator license must take the exam required by ORS 475A.330 and receive a passing score prior to being issued a facilitator license. (2)A passing score on the exam is 75 percent correct. After the applicant takes the exam, the Authority will provide the applicant with the exam results. (3)An applicant who does not pass the exam may retake the exam. (4) The Authority will offer the exam at no cost via online interface. Applicants may take the exam at any location of their choosing. An applicant may retake the exam as many times as they chose to do so. (5)Applicants may request to take the exam in alternative format or in a language other than English. The Authority will make reasonable efforts to accommodate requests for accommodation. Requests for accommodation must be made in advance of taking the exam. Statutory Authority: ORS 475A.235, ORS 475A.330 Statutes Implemented: ORS 475A.330 333-333-4000 Application Process Page 10 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (1)Applications must be submitted to the Authority in the form and manner prescribed by the Authority. (2) The application fee specified in OAR 333-333-4060(1)must be submitted at the time of application in the form and manner prescribed by the Authority. (3)An application must include the following: (a) The names and required information for all individuals and legal entities who are applicants as required by OAR 333-333-4030. (b)Any forms and information required by the Authority to evaluate the license application. (c) A social equity plan as required by OAR 333-333-4020. (d)Until January 1, 2025,proof of residency if required by OAR 333-333-4050. (e) For manufacturer, service center and laboratory license applicants, a map or sketch of the proposed license premises, including the boundaries of the licensed premises relative to its location, identification of any unlicensed areas within the building where the licensed premises is located including suite numbers if applicable, identification of any residence or other unlicensed structures located on the same tax lot as the premises proposed to be licensed, a scaled floor plan identifying all points of ingress and egress, camera locations, limited access areas, client administration areas and areas where psilocybin products will be stored within the licensed premises. (f) If the applicant for a manufacturer license is not the owner of the real property proposed to be licensed, a written statement signed by the property owner that shows that the owner consents to manufacturing of psilocybin products on the property. This requirement may be satisfied by lease documents or in a form and manner specified by the Authority. (g) For service center applicants, a service center emergency plan as described in OAR 845-025- 4460. (h) For service center applicants whose proposed licensed premises includes outdoor administration areas, a detailed description of the outdoor administration areas including their location and verification that the area is free from hazards as required by OAR 333-333-5210. (i) For service center and manufacturer applicants, a statement that every individual person and legal entity who holds a financial interest in the entity proposed to be licensed complies with the requirements of ORS 475A.280. (j) For facilitator applicants, documentation that the applicant has completed the training and passed the exam required by ORS 475A.325. (4) In addition to submitting an application form and the items described in section (3) of this rule, the Authority may require: (a) Information or fingerprints required to perform a criminal background check in accordance with OAR 333-333-4100. (b) Any additional information that is reasonably required to determine the merits of the license application. (5) The Authority must review an application to determine if it is complete. An application may be considered incomplete if the form is not complete, the application fee has not been paid, or additional information required under this rule has not been submitted. Page 11 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (6) An applicant may submit a written request for reconsideration of an application that is deactivated as incomplete. Such a request must be received by the Authority within 10 days of the date the deactivation notice was mailed to the applicant. The Authority shall give an applicant the opportunity to be heard if an application is deactivated. A hearing under this subsection is not subject to the requirements for contested case proceedings under ORS 183.310 to 183.550. Statutory/Other Authority: ORS 475A.235, ORS 475A.245, ORS 475A.255 Statutes/Other Implemented: ORS 475A.235, ORS 475A.245, ORS 475A.255 333-333-4010 Communication with the Authority (1) If an applicant or licensee is required to or elects to submit anything in writing to the Authority, unless otherwise prescribed by the Authority, the applicant or licensee may submit the writing to the Authority via: (a) Mail; or (b) Electronic mail. (2) If a written notification must be submitted by a particular deadline it must be received, regardless of the method used to submit the writing, by 5:00 p.m. Pacific Time. (3)Applicants must designate an applicant who will serve as the primary point of contact for communication with the Authority. (4) The primary point of contact required by section(3) of this rule is responsible for ensuring all persons identified as licensees or applicants are aware of relevant communications from the Authority, including but not limited to notices issued under ORS chapter 183. Statutory/Other Authority: ORS 475A.235, ORS 475A.245 Statutes/Other Implemented: ORS 475A.235, ORS 475A.245 333-333-4020 Social Equity Plans (1) In addition to the requirements of OAR 333-333-4000 applicants for a manufacturer, service center, facilitator or laboratory license must submit a social equity plan for their initial application to be considered complete. (2) Social equity plans required by section (1) of this rule must include a description of the following: (a)Application of diversity, equity,justice and inclusion principles to the licensee's internal practices and policies. (b) Objective performance measures that the licensee will use to evaluate their social equity plan. (3) In addition to the requirements of OAR 333-333-4250 an applicant for renewal of manufacturer or service center license must provide documentation of the evaluation of implementation of their social equity plan based on the objective performance measures required in social equity plans. (4) Licensees must provide written notice, in a form and manner prescribed by the Authority, of any material changes to their social equity plan within 60 days of making the change. Page 12 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. Statutory/Other Authority: ORS 475A.235, ORS 475A.245 Statutes/Other Implemented: ORS 475A.235, ORS 475A.245 333-333-4030 True Name on Application (1)An application for a service center, manufacturing or laboratory license must specify the legal names of all individuals and legal entities who qualify as applicants. (2)An application for a facilitator license must identify the legal name of the individual who will hold the license. (3) License privileges are only available to licensees and license representatives. For service centers, manufacturers and laboratories, license privileges are only available for the licensed premises. (4) If a legal entity is an applicant, the following individuals within the legal entity are also applicants: (a) If an applicant is a limited partnership, each general partner in the limited partnership. (b) If an applicant is a limited liability company, each manager and managing member of the limited liability company. (c) If the applicant is a for-profit corporation, each principal officer of the corporation. (d) If the applicant is a non-profit entity, each principal officer of the entity. (e) Any individual within the legal entity who meets the definition of applicant in OAR 333-333- 1010. (5) The Authority may deny an application if a person: (a) Identified as an applicant for the entity proposed to be licensed does not meet the definition of applicant in OAR 333-333-1010; or (b) Who meets the definition of applicant in OAR 333-333-1010 has not been disclosed on the application. Statutory/Other Authority: ORS 475A.235, ORS 475A.245 Statutes/Other Implemented: ORS 475A.235, ORS 475A.245 333-333-4040 Financial Interests (1)Applicants and licensees must create and maintain complete lists of all individuals and legal entities that hold a financial interest in the entity, including contact information for each individual or entity and a description of their financial interest. Applicants and licensees must provide the information required by this section to the Authority within 15 calendar days of the Authority's written request for such information. (2) If a legal entity holds a financial interest, the following individuals within the legal entity also hold a financial interest: (a) For limited partnerships, each general partner in the limited partnership. (b) For limited liability companies, each manager and managing member of the limited liability company. (c) For for-profit corporations, each principal officer of the corporation. Page 13 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (d) For non-profit entities, each principal officer of the entity. (3) The Authority may refuse to issue a license if an applicant does not satisfy the requirements of section(1) of this rule. (4) The Authority shall deny an application for a manufacturer license if an individual or legal entity that holds a financial interest in the entity proposed to be licensed holds a financial interest in another manufacturer license. (5) The Authority shall deny an application for a service center license if an individual or legal entity that holds a financial interest in the entity proposed to be licensed holds a financial interest in five or more service center licenses. Statutory/Other Authority: ORS 475A.235, ORS 475A.245 Statutes/Other Implemented: ORS 475A.235, ORS 475A.245, ORS 475A.280 333-333-4050 Residency (1)Until January 1, 2025, in order to qualify for a manufacturing or service center license: (a) If the entity proposed to be operated under the license is a legal entity, an applicant must provide proof that more than 50 percent of the shares, membership interests,partnership interests, or other ownership interests of the legal entity are held, directly or indirectly, by one or more individuals who have been residents of this state for two or more years. (b) If the entity proposed to be operated under the license is a partnership that is not a legal entity, an applicant must provide proof that more than 50 percent of the partnership interests of the partnership are held, directly or indirectly,by one or more individuals who have been residents of this state for two or more years. (c) If the entity proposed to be operated under the license is operated and owned by an individual, an applicant must provide proof that the individual has been a resident of this state for two or more years. (2)Until January 1, 2025, in order to qualify for a facilitator license, an applicant must provide proof that they have been a resident of this state for two or more years. (3) Proof of residency required by subsections (1)(a) and (b) of this rule, may be demonstrated by providing a statement in a form and manner prescribed by the Authority which verifies that more than 50 percent of the interests in the entity are held by individuals who have been residents of this state for two or more years. (4) Proof of residency as required under subsection(1)(c) and section (2) of this rule may be demonstrated by providing any of the following: (a) A valid Oregon driver license or Oregon identification card issued at least two years prior to the date of application. (b) Oregon full-year resident tax returns for the last two years. (c) Proof of Oregon voter registration issued at least two years prior to the date of application. (d)Utility bills, lease agreements, rental receipts, mortgage statements or similar documents that contain the name and address of the applicant dated at least two years prior to the date of application and from the most recent month. Page 14 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (e) Letter from a homeless shelter, nonprofit entity, employer or government agency attesting that applicant has been an Oregon resident for at least two years. (f)Any other documentation that the Authority determines to reliably demonstrate proof of Oregon residency for the last two years (5) If an applicant demonstrates proof of residency under section (3) of this rule, the applicant must request and retain documentation described in section (4) of this rule for all individuals within the applicant legal entity that qualify as Oregon residents. Documentation required by this section must be provided to the Authority upon request. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.290, ORS 475A.305, ORS 475A.325 333-333-4060 License Fees (1)At the time of initial license application: (a)An applicant for a service center, manufacturer or laboratory license must pay a $500 non- refundable application fee: (b)An applicant for a facilitator license must pay a $150 non-refundable application fee. (2) If the Authority approves an initial license application or renewal and grants an annual license, the following fees must be paid: (a) Manufacturer$10,000. (b) Service Center$10,000. (c) Facilitator$2,000. (d) Laboratory $10,000. (3)Notwithstanding section(2) of this rule, if the applicant is a non-profit entity the following fees must be paid: (a) Manufacturer$5,000. (b) Service Center$5,000. (4)Notwithstanding section(2) of this rule, if the applicant is an individual person the following fees must be paid, if they satisfy any of the requirements of section(5) of this rule: (a) Manufacturer$5,000. (b) Service Center$5,000. (c) Facilitator$1,000. (5) In order to qualify for the reduced fees described in section (4) of this rule, an individual applicant must qualify under one of the following circumstances: (a) Be receiving Social Security Income benefits. To qualify for the reduced fee, the applicant must submit at the time of application a copy of a current monthly Social Security Income benefit statement showing dates of coverage. (b) Be enrolled in Oregon Health Plan. To qualify for the reduced fee the applicant must submit a copy of the applicant's current eligibility statement or card. (c) Be receiving food stamp benefits through the Oregon Supplemental Nutrition Assistance Program. To qualify for the reduced fee the applicant must submit at the time of application current proof of their food stamp benefits. Page 15 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (d) Has served in the Armed Forces of the United States. To qualify for the reduced fee, the applicant must provide proof of having served in the Armed Forces, such as but not limited to, submitting a Veteran's Administration form DD-214. (6) The Authority will charge a change fee of$250 per applicant for any change to a previously approved license that results in addition of an applicant. This change fee applies regardless of whether the licensee requests the change at renewal or during the term of their license. (7) The Authority will charge a change fee of$250 per inspection for any change to a previously approved license that requires an inspection of the licensed premises. This change fee applies regardless of whether the licensee requests the change at renewal or during the term of their license. Statutory/Other Authority: ORS 475A.235, ORS 475A.290, ORS 475A.305, ORS 475A.325, ORS 475A.594 Statutes/Other Implemented: ORS 475A.235, ORS 475A.290, ORS 475A.305, ORS 475A.325, ORS 475A.594 333-333-4070 Worker Permit Term and Fees (1)An individual who is a license representative must have a valid worker permit if the individual participates in: (a) The provision of psilocybin services at a licensed premises. (b) The possession, manufacturing, securing or selling of psilocybin products at a licensed premises. (c) The recording of the possession, manufacturing, securing or selling of psilocybin products at a licensed premises. (d) The verification of any document described in ORS 475A.445. (2) An individual person who holds a manufacturer, service center or laboratory license due to their ownership or control of a licensed legal entity, must have a valid service permit if they perform any of the activities listed in subsections (1)(a)through (d) of this rule. (3) If the Authority approves an initial or renewal application and grants a worker permit, the permit shall have a term of five years. (4) Once the Authority has made a determination to grant an application as described in section (3) of this rule, the individual must pay a$25 fee to receive the permit. Statutory/Other Authority: ORS 475A.235, ORS 475A.483 Statutes/Other Implemented: ORS 475A.235, ORS 475A.483 333-333-4100 Background Checks (1)Any person identified as an applicant on a worker permit or license application may be required to undergo a criminal background check and fitness determination as required by this rule. Page 16 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (2) The Authority will require a licensee or worker permit holder to undergo a criminal background check if the Authority learns that the individual has been convicted of a crime after their license or permit has been issued. (3) When the Authority requires an individual to undergo a criminal background check, background checks must be submitted to the Authority for a fitness determination in accordance with OAR 407-007-0200 to 407-007-0250, 407-007-0281, 407-007-0300 and 943-007-0001 to 943-007-0501. Individuals are not subject to a check for potentially disqualifying abuse, as described by OAR 407-007-0250(5). (4) When the Authority requires an individual to undergo a criminal background check, the individual must provide: (a) A criminal background check request form, prescribed by the Authority that includes but is not limited to: (A) First, middle and last name; (B)Any aliases; (C)Date of birth; (D) Driver license information; and (E)Address and recent residency information. (b) Fingerprints in accordance with the instructions on the Authority's webpage. (5) The Authority may request an applicant to disclose their Social Security Number if notice is provided that: (a) Indicates the disclosure of the Social Security Number is voluntary. (b) The Authority requests the Social Security Number for the purpose of positively identifying the applicant during the criminal records check process. (6) Pursuant to ORS 475A.250, the Authority may not consider the prior conviction of a subject individual for: (a) The manufacture of psilocybin or the manufacture of a marijuana item, as defined in ORS 475C.009, if: (A) The date of the conviction is two or more years before the date of the application; and (B) The person has not been convicted more than once for the manufacture of psilocybin or a marijuana item; or (b) The possession of a controlled substance, as defined in ORS 475.005, or a marijuana item, as defined in ORS 475C.009, if: (A) The date of the conviction is two or more years before the date of the application; or (B) The person has not been convicted more than once for the possession of a controlled substance or a marijuana item. (7) The fitness determination described in section(3) of this rule will determine whether the applicant is ineligible to be licensed. (8) Refusal to participate in a background check required by this rule is a violation. (9) If an applicant is denied due to the fitness determination, the applicant has hearings rights to challenge the fitness determination under OAR 943-007-0501. Page 17 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. Statutory/Other Authority: ORS 475A.235, ORS 475A.255, ORS 475A.486, ORS 475A.598 Statutes/Other Implemented: ORS 475A.235, ORS 475A.255, ORS 475A.486, ORS 475A.598 333-333-4110 Application Review (1) Once the Authority has determined that an application is complete, it must review the application to determine compliance with ORS chapter 475A and these rules. (2) The Authority must receive a land use compatibility statement from the city or county that authorizes land use in the city or county where the premises proposed to be licensed is located prior to acting on an application for a new manufacturer or service center license. (3) The Authority may verify any information submitted by the applicant, including but not limited to contacting any individual or legal entity identified in the application to request additional documents or information. (4) The Authority may require an inspection of the premises proposed to be licensed prior to issuing a license. There is no fee for inspections performed under this section. (5) If the Authority determines that the applicant is not in compliance with these rules following an inspection described in section (4) of this rule, the Authority will provide a notice of the failed inspection identifying the requirements that have not been met. (6)An applicant that fails an inspection described in section (4) of this rule will have 30 calendar days from the date the notice was sent to submit a written response that demonstrates the noted deficiencies have been corrected. (7) If the applicant's response under section (6) of this rule appears to correct the noted deficiencies, the Authority may schedule another inspection. (8) If the applicant fails a second inspection, the Authority will deny the application unless the applicant shows good cause for the Authority to perform additional inspections. Statutory/Other Authority: ORS 475A.235, ORS 475A.250, ORS 475A.290 Statutes/Other Implemented: ORS 475A.235, ORS 475A.250, ORS 475A.290 333-333-4120 Approval and Issuance (1) If the Authority approves an application, the Authority will notify the applicant in writing that the application has been approved, pending payment. The approval is effective upon receipt of the license fee. After payment of the license fee, the Authority will provide the applicant proof of licensure, that includes a unique license number, the effective date of the license, date of application and description of the licensed premises. If the applicant has paid the license fee by check, the Authority will not issue a license until it has confirmed that the check has cleared. (2)A licensee may not operate until the effective date of licensure. (3) Manufacturer, service center and laboratory licensees must display a proof of licensure in a prominent place on the licensed premises. (4) Facilitator licensees must be able to provide proof of licensure when performing preparation, administration or integration sessions. Page 18 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (5) Manufacturer, service center and laboratory licenses are only valid for the licensed premises and are only issued to the individuals or entities listed on the application or subsequently approved by the Authority. (6) Facilitator licenses are only issued to the individual listed on the application. (7)A license may not be transferred except as provided in OAR 333-333-4270. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4130 Application Denial (1) The Authority shall deny an application if: (a)An applicant is under the age of 21. (b) The applicant for a facilitator license is not an individual person. (c) The applicant for a facilitator license has not completed training required by ORS 475A.325. (d) The applicant for a facilitator license has not passed the exam required by ORS 475A.325. (e) The applicant's land use compatibility statement shows that the proposed land use is prohibited if a land use compatibility statement is required by these rules. (f) The proposed licensed premises is located on public land. (h) If required, the applicant does not have an approved fitness determination in accordance with OAR 333-333-4100. (i) The applicant is an entity that is required to be registered with the Oregon Secretary of State and has failed to register. (j) The application identifies more than one licensed premises. (2)Until January 1, 2025, the Authority shall deny an application for a service center or manufacturer license if: (a) An individual applicant who does not qualify as an Oregon resident owns or controls greater than 50 percent of the entity proposed to be licensed; or (b)At least 50 percent of individuals who hold shares, membership interests, partnership interests, or other ownership interests in the entity proposed to be licensed do not qualify as Oregon residents. (3)Until January 1, 2025, the Authority shall deny an application for a facilitator license if the applicant is not an Oregon resident. (4)An applicant for a service center is ineligible for a license and the Authority shall deny an application if any portion of the proposed licensed premises for a service center applicant is located: (a) Except as provided in ORS 475A.310 within 1,000 feet of: (A) A public elementary or secondary school for which attendance is compulsory under ORS 339.020; or (B)A private or parochial elementary or secondary school, teaching children as described in ORS 339.030(1)(a). (b) For purposes of determining the distance between a service center and a school, "within 1,000 feet"means a straight-line measurement in a radius extending for 1,000 feet or less in any Page 19 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. direction from the closest point anywhere on the boundary line of the real property comprising a school to the closest point of the licensed premises of a service center. (5) The Authority may deny an application when a person with a financial interest meets any license denial criteria that apply to applicants. (6) The Authority may revoke a license for any reason it may deny an application. Statutory/Other Authority: ORS 475A.235, ORS 475A.250 Statutes/Other Implemented: ORS 475A.235, ORS 475A.250, ORS 475A.290, ORS 475A.305, ORS 475A.325 333-333-4140 Application Withdrawal An applicant for a license or worker permit may withdraw an initial or renewal application at any time prior to the Authority acting on the application unless the Authority reasonably believes that the applicant submitted false or misleading information in which case the Authority may refuse to accept the withdrawal and may issue a proposed denial in accordance with OAR 333-333- 4130. Statutory/Other Authority: ORS 475A.235, ORS 475A.250 Statutes/Other Implemented: ORS 475A.235, ORS 475A.250 333-333-4200 Notification of Changes (1)An applicant or licensee must notify the Authority in writing within 10 business days of any of the following: (a)Adding or removing an individual or legal entity who qualifies as an applicant under OAR 333-333-1010 or OAR 333-333-4030. (b) A change in contact information for any person listed as an applicant or licensee. (c) Any closure of the licensed premises lasting more than 30 days. (d) Any conviction for any misdemeanor or felony committed by an individual listed as an applicant or licensee. (e) Any arrest for conduct that occurred on the licensed premises. (f)Any theft of psilocybin products or cash from the licensed premises. (2) If after receipt of information required under subsection (1)(a) of this rule the Authority determines that the addition of an individual or legal entity applicant could result in an initial or renewal application denial under OAR 333-333-4130 or serve as the basis of a license suspension or revocation, the Authority: (a) Will notify the licensee of its determination. (b) Will give the licensee 30 calendar days to take actions to ensure the individual or entity does not qualify as an applicant and provide documentation to the Authority that demonstrates such actions have been taken. (c) May propose license suspension or revocation under OAR 333-333-4130 if the licensee does not comply with subsection(b) of this section. (3) If applicable, the licensee must pay the change fee specified in OAR 333-333-4060 Page 20 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. prior to making changes to their licensed premises or approved licensees that require inspections or additional applicants. (4) A licensee who wishes to change the location of the licensed premises must submit a change of location request including required forms and documents and the license application fee specified in OAR 333-333-4060(1). (a)A licensee that submits a change of location request is not required to pay an additional annual license fee. (b)A change of location request submitted under this rule must include: (A) For changes to manufacturer or service center license location, a land use compatibility statement from the city or county that authorizes land use in the city or county where the new licensed premises will be located. (B)For manufacturer, service center and laboratory license applicants, a map or sketch of the new location's licensed premises including the boundaries of the licensed premises relative to its location, identification of any residence or other structures located on the same tax lot as the premises proposed to be licensed that will not be included in the licensed premises, and a scaled floor plan identifying all limited access areas and client administration areas. (C)For a manufacturer license, if the licensee is not the owner of the real property where the new location will be located, a written statement signed by the property owner that shows that the owner consents to manufacturing of psilocybin products on the property. This requirement may be satisfied by lease documents or in a form and manner specified by the Authority. (5) The Authority may require a licensee to submit a new application including all required forms and documents and the fee specified in OAR 333-333-4060 for a change in ownership structure that is 51 percent or greater. For the purposes of this rule, a change is considered to be 51 percent or greater if natural persons who did not hold a direct or indirect interest in the entity at the start of the license year will collectively hold a direct or indirect interest of 51 percent or greater. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4210 Modifying Licensed Premises (1)A licensee may not make any changes that materially or substantially alter the licensed premises or the usage of the licensed premises without the Authority's prior written approval. (2)A licensee who wishes to make any material or substantial changes to the licensed premises must submit a form prescribed by the Authority, and submit any information identified in the form. (3) For the purposes of this rule a material or substantial change includes, but is not limited to: (a) Any change to the footprint of the licensed premises. (b)Any change to ingress and egress of the licensed premises. (c) Any change that would require installation of additional video surveillance cameras or a change to the security system. (d)Any changes to limited access areas or client administration areas on the licensed premises; Page 21 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (e) Any addition or change to a residence or other unlicensed structure located on the same tax lot as the licensed premises in areas that the licensee controls or has the right to access. (4) Emergency repairs to the licensed premises made to ensure safety and security do not require prior approval under section (1) of this rule. Licensee must provide notice of emergency repairs in a form and manner prescribed by the Authority within five business days of making repairs. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4250 License Renewal (1) Renewal Applications: (a) A renewal application must include the licensee fee, documents, and information required by the Authority to be complete. (b)A renewal application will be considered timely if a complete renewal application is received by the Authority at least 60 calendar days before the date the license expires. Applications received less than 60 days before the date the license expires will be considered untimely. (c) A licensee who submits a complete timely renewal application may continue to operate after the stated license expiration date, pending a decision by the Authority on the renewal application. (d)A licensee who submits an untimely or incomplete renewal application or who does not submit a renewal application must cease engaging in the licensed activity when the license expires. (e) A person who, while not actively licensed, engages in any activity that would require a license may be subject to administrative and criminal sanctions regardless of their prior licensure status. (2) The Authority may require a licensee with a pending renewal application to submit forms, documents and information described in OAR 333-333-4000 in order to complete an investigation of a renewal application. Failure to submit fees, forms, documents or information requested by the Authority under this section within a time period prescribed by the Authority may result in denial of the renewal application. Statutory/Other Authority: ORS 475A.235, ORS 475A.483 Statutes/Other Implemented: ORS 475A.235, ORS 475A.483 333-333-4260 Standards for Authority to Operate a Licensed Business as a Trustee, a Receiver, a Personal Representative, or a Secured Party (1) The Authority may issue a temporary certificate of authority to operate a licensed entity to a trustee, the receiver of an insolvent or bankrupt licensee, the personal representative of a deceased licensee, or a person holding a security interest in the licensed entity for a reasonable period of time to allow orderly disposition of the licensed entity. (a) The trustee, receiver or personal representative must provide the Authority with the following information: Page 22 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (A) Proof that the person is the legal trustee, receiver or personal representative for the legal entity; and (B)A written request for a certificate of authority to operate as a trustee, receiver or personal representative of the licensee, listing the address and telephone number of the trustee, receiver or personal representative. (b) The secured party must provide the Authority with the following information: (A) Proof of a security interest in the licensed entity; (B)Proof of the licensee's default on the secured debt; (C)Proof of legal access to the real property; and (D)A written request for authority to operate as a secured party listing the secured party's address and telephone number. (2) The Authority may revoke or refuse to issue or extend a certificate of authority for the trustee, receiver,personal representative, or secured party to operate: (a) If the trustee, receiver, personal representative or secured party does not propose to exercise licensed privileges immediately or does not begin exercising licensed privileges immediately upon receiving the temporary certificate of authority; (b) For any of the reasons that the Authority may revoke or refuse to issue or renew a license; (c) If the trustee, receiver, personal representative or secured party operates in violation of ORS 475A, or these rules; or (d) If a reasonable time for disposition of the legal entity has elapsed. (3)No person or entity described in section (1) of this rule may operate the licensed entity until a certificate of authority has been issued under this rule, except that the personal representative of a deceased licensee may operate the licensed entity for up to 10 days after the death provided that the personal representative submits the information required in subsection(1)(a) of this rule and obtains a certificate of authority within that time period. (4)A certificate of authority under this rule is initially issued for a 60-day period and may be extended as reasonably necessary to allow for the disposition of the licensed entity. Statutory/Other Authority: ORS 475A.235 Statutes/Other Implemented: ORS 475A.235, ORS 475A.243 333-333-4270 Closure of Licensed Entity (1) License privileges cease upon death of a licensee unless the Authority issues an order as described in section(2) of this rule. (2) The Authority may issue an order providing for the manner and condition under which: (a) Psilocybin products left by a deceased, insolvent or bankrupt licensee, or subject to a security interest, may be transferred or destroyed pursuant to an order issued by the Authority. (b) The licensed entity of a deceased, insolvent or bankrupt licensee may be operated for a reasonable period, as specified in the order issued under this rule or OAR 333-333-4260, following the death, insolvency or bankruptcy. Page 23 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (3) If a license is revoked, the Authority may address in its order the manner and condition under which psilocybin products held by the licensee may be transferred or sold to other licensees or must be otherwise disposed. (4) If a license is surrendered or expires the Authority may address by order the manner and condition under which psilocybin products held by the licensee may be transferred or sold to other licensees or must be otherwise disposed of. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.243 333-333-4280 License Surrender A licensee may request the Authority accept the surrender of a license. The license remains in effect until the Authority accepts the surrender. If the Authority accepts the surrender, the Authority will notify the licensee in writing of the date of acceptance. The licensee must cease all license privileges on this date through the remainder of the licensing period. The licensee must receive a new license before engaging in any licensed activities. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4300 Licensed Premises Location Requirements (1)A licensed premises may not be located on publicly owned land. (2) The interior and exterior areas of a licensed premises may not overlap with: (a)An area that has been issued an adult-use cannabis license issued under ORS 475C.065, ORS 475C.085, ORS 475C.093 or ORS 475C.097. (b) A medical marijuana grow site registered under ORS 475C.792. (c) A medical marijuana processing site registered under ORS 475C.815. (d) A medical marijuana dispensary registered under ORS 475C.833. (e) An area that has been issued a liquor license issued under ORS chapter 471 or a retail liquor agent appointed by the Oregon Liquor and Cannabis Commission. (f)A health care facility licensed under ORS chapter 441. (g)A location that is operating as a restaurant, seasonal temporary restaurant, intermittent temporary restaurant, limited-service restaurant, single event temporary restaurant, commissary, mobile unit, bed and breakfast, or warehouse licensed under ORS chapter 624. (h) A residence. (3) The licensed premises of a service center may not be located: (a) Except as provided in ORS 475A.310, within 1,000 feet of: (A) A public elementary or secondary school for which attendance is compulsory under ORS 339.020; or (B)A private or parochial elementary or secondary school, teaching children as described in ORS 339.030. (b) In an area that is zoned exclusively for residential use within city limits. Page 24 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (4)A manufacturer with an edible psilocybin production endorsement may not: (a) Engage in processing at a location that is operating as a restaurant, seasonal temporary restaurant, intermittent temporary restaurant, limited-service restaurant, single event temporary restaurant, commissary, mobile unit, bed and breakfast, or warehouse licensed under ORS chapter 624; (b) Share a food establishment where psilocybin will be produced, with another person or entity; (c) Process food intended for commercial sale that does not contain psilocybin; or (d)Use a psilocybin product to produce edible psilocybin products unless that psilocybin product was processed or cultivated in a food establishment licensed by the Oregon Department of Agriculture in compliance with the applicable provisions of OAR chapter 603, division 21, division 24, division 25 and division 28. (5)A manufacturer, service center or laboratory license is prohibited from subletting any portion of the licensed premises. A licensee may authorize the temporary use of the licensed premises for activities that are unrelated to the exercise of license privileges. The requirements of these rules and ORS 475A.210 to 475A.722 remain in effect when such activities take place. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.305, ORS 475A.310 333-333-4400 Licensed Premises Operating Requirements (1)A licensee or permittee may not permit: (a) A person under 21 years of age to work or be on a licensed premises except as described in this rule. (b) On-site sale or transfer of a psilocybin product except for sales and transfers to other licensed premises and retail sales by a service center in connection with an administration session. (c) On-site consumption of a psilocybin product except for clients consuming psilocybin products at a service center in connection with an administration session. (d) On-site consumption of any intoxicants by any individual, except for clients consuming psilocybin products during an administration session. (2) A licensee must clearly identify all limited access areas in accordance with OAR 333-333- 4000(3)(e). (3) Log. A licensee must keep a daily log of all employees and permitted visitors who perform work on the licensed premises, except for Authority employees and other state or local government officials acting in an official capacity who have jurisdiction over some aspect of the licensed premises or operation. (a)A licensee must record the following information for each current employee and license representative in the training, licensing and compliance system: (A) For an employee or license representative required to have a worker permit, the permit number and name of the individual as they appear on the worker permit. (B)For an employee or license representative not required to have a worker permit, the legal name and date of birth of the individual. Page 25 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (b)All employees and permitted visitors present on the licensed premises must wear clothing or a badge issued by the licensee that easily identifies the individual as an employee or permitted visitor. (c) All permitted visitors must be accompanied by a license representative at all times. (d) On the daily log, a licensee must record the name and date of birth as this information is displayed on valid government-issued ID for every contractor who performs work on the licensed premises. (e) A licensee must maintain a copy of the daily log required by this rule for a period of at least two years. (4) Permitted Visitors. The general public is not permitted in limited access areas on a licensed premises. In addition to license representatives, the following visitors are permitted to be present in limited access areas on a licensed premises, subject to the requirements of this rule and other pertinent rules: (a) Laboratory personnel if the laboratory is licensed by the Authority. (b)A contractor, vendor or service provider authorized by a license representative to be on the licensed premises. (c)Another licensee or that licensee's representative. (5)Nothing in this rule is intended to prevent or prohibit Authority employees or contractors, or other state or local government officials that have jurisdiction over some aspect of the licensed premises or licensee from being on the licensed premises. (6) A licensee may not sublet any portion of a licensed premises. A licensee may authorize the temporary use of a licensed premises, excluding limited access areas, for activities that are unrelated to the exercise of license privileges. The requirements of these rules and ORS 475A.210 to 475A.722 remain in effect when such activities take place. (7) A licensed premises may receive psilocybin products only from other licensed premises as allowed by these rules. (8) A licensee who sells or handles food, as that term is defined in ORS 616.695, or edible psilocybin products must also be licensed by the Oregon Depattiuent of Agriculture under ORS 616.706. (9) A licensee may not allow animals to be present on the licensed premises, except for assistance animals as allowed under ORS 659A.143. (10) If the licensed premises contains outdoor areas, the boundaries of the licensed outdoor areas must be clearly marked with visible signage or barriers. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4450 Client Administration Areas (1) Client administration areas must be designed to create an appropriate and comfortable setting for experiencing the effects of consuming psilocybin products. Client administration areas must offer clients comfortable options for sitting or reclining during administration session. Indoor Page 26 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. administration areas must be temperature controlled and adequately lit to allow for safe exit if necessary. (2) Client administration areas must be free of conditions that could pose a risk to clients experiencing the effects of consuming psilocybin products. (3) During an administration session, only clients and facilitators may access a client administration area unless each client receiving services in that area has given prior written consent for other individuals to be present during their administration session. Licensees must take reasonable steps to prevent access to client administration areas by unauthorized individuals while administration sessions are taking place. The requirements of this section do not apply to service center representatives who are present to deliver psilocybin products to clients to be consumed during an administration session. (4)A client may leave an administration area briefly during an administration session for reasons including accessing a restroom, moving to a separate administration area or retrieving personal belongings. A client who leaves an administration area under this section, must be accompanied by a facilitator. Service centers and facilitators must make reasonable efforts to ensure that clients do not travel through areas that could present safety hazards for clients experiencing the effects of consuming psilocybin products. Service centers must make reasonable efforts to ensure that clients who leave administration areas do not interact with vendors, contractors, other clients, or any persons who may be present at the service center. A client who leaves an administration area under this section is not required to be accompanied inside a restroom. (5) Service centers must ensure that clients and facilitators are able to exit the client administration areas as needed. Service centers may not lock client administration areas from the outside, nor take any other actions that prevent individuals within the client administration areas from exiting. (6) Psilocybin products may only be consumed in a client administration area. Statutory/Other Authority: ORS 475A.235, ORS 475A.305 Statutes/Other Implemented: ORS 475A.235, ORS 475A.305 333-333-4460 Service Center Emergency Plan (1) Every service center shall create and maintain a service center emergency plan that documents procedures for evacuating and relocating clients to a safe location. when the client administration areas become unsafe due to unforeseen circumstances such as fire or a power outage. (2) The emergency plan described in section(1) of this rule must be: (a) Included with an initial application. (b) Provided to every facilitator who will offer psilocybin services at the service center prior to the facilitator providing psilocybin services at that location. (3)A licensee must provide written notice of any changes to an emergency plan to the Authority in a form and manner prescribed by the Authority. Statutory/Other Authority: ORS 475A.235, ORS 475A.305 Statutes/Other Implemented: ORS 475A.235, ORS 475A.305 Page 27 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. 333-333-4465 Client Restrooms (1) Service centers must make at least one accessible single occupancy restroom located within the licensed premises available for clients' use during an administration session. The rest room required by this rule is not required to be located within an administration area. (2) In addition to a restroom described in section(1) of this rule, a service center may identify alternate restrooms that are located in unlicensed areas of the same structure where the licensed premises is located. Service center applicants and licensees must identify alternate restrooms on the floor plan required by OAR 333-333-4000(3)(e). (3) Clients may use alternate restrooms described in section(2) of this rule when restrooms within the licensed premises are occupied, subject to the following conditions: (a)A facilitator must escort a client to and from the alternate restroom location. (b)A facilitator must remain at the restroom door to ensure that no other people are present in the alternate restroom during the time the client is using the restroom. Statutory/Other Authority: ORS 475A.235, ORS 475A.305 Statutes/Other Implemented: ORS 475A.235, ORS 475A.305 333-333-4470 Practicum Site (1)Any service center may function as a practicum site under OAR 333-333-3070. (2)A service center that functions as practicum site must notify the Authority that practicum will be offered at their location and identify any training program affiliated with the practicum prior to practicum taking place at their location. (3)A service center that functions as a practicum site must comply with all applicable requirements of these rules, including but not limited to OAR 333-333-5200. Statutory/Other Authority: ORS 475A.235, ORS 475A.305 Statutes/Other Implemented: ORS 475A.235, ORS 475A.305 333-333-4480 Service Center Privileges and Prohibitions (1)A service center may: (a) Between the hours of 6:00 AM and 11:59 PM local time, sell psilocybin products and provide psilocybin services to clients 21 years of age or older. (b) Purchase,possess or receive psilocybin products from a manufacturer or service center. (c) Transfer psilocybin products to a manufacturer or service center, subject to product quantity limits in OAR 333-333-2200. (d)Allow a laboratory licensee to obtain samples for purposes of performing testing as provided in OAR 333-333-7100. (2)A service center must begin every administration session at a time that allows the minimum duration of that session described in OAR 333-333-5250 to elapse prior to 11:59 PM local time. Page 28 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (3)A service center must collect tax on all psilocybin products sold to clients and document the sale of all products and services in the manner required by OAR 333-333-5180. (4)A service center must create and maintain policies and procedures for possession and storage of weapons on the licensed premises if possession is permitted. (5) A service center may not: (a) Discount a psilocybin product or offer a psilocybin product for free if the retail sale of the psilocybin product is made in conjunction with the retail sale of any other item or service. (b) Permit a client to bring psilocybin products onto the licensed premises or take any psilocybin product from the licensed premises. (c) Sell or offer for sale any psilocybin product that does not comply with the requirements of ORS chapter 475A or these rules. (6) A license representative of a service center may not assist a client with any of the activities required to be performed by a client support person pursuant to OAR 333-333-5070. (7) Service centers may permit clients to bring any food item and non-alcoholic beverage onto the licensed premises for consumption subject to the requirements of OAR 333-333-5170(7) and 333-333-4400(1)(c). Service centers must store food items that require refrigeration at a temperature of 41 degrees Fahrenheit or less. Statutory/Other Authority: ORS 475A.235, ORS 475A.305 Statutes/Other Implemented: ORS 475A.235, ORS 475A.305 333-333-4490 Verification of Age Prior to completing the sale of a psilocybin product or providing psilocybin services to a client, a service center license representative and a facilitator must verify that the client has a valid, unexpired government-issued photo identification and must verify that the client is 21 years of age or older by viewing the client's: (1) Passport; (2) Driver license, whether issued by the State of Oregon or by another state of the United States; (3) Identification card issued under ORS 807.400; (4)United States military identification card; (5) An identification card issued by a federally recognized Indian tribe with photo, name and date of birth; or (6) Any other identification card issued by a state or territory that bears a picture of the person, the name of the person, the person's date of birth and a physical description of the person. Statutory/Other Authority: ORS 475A.235, ORS 475A.445 Statutes/Other Implemented: ORS 475A.235, ORS 475A.445 333-333-4500 Licensee Prohibitions (1)A licensee or permittee may not: (a) Import into this state or export from this state any psilocybin products. (b) Give psilocybin products as a prize, premium or consideration for a lottery, contest, game of chance or game of skill, or competition of any kind. Page 29 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (c) Sell, give, or otherwise make available any psilocybin products to any person who is visibly intoxicated except for service center license representatives who provide additional psilocybin products to clients who are under the influence of psilocybin consumed during an administration session and have provided written consent pursuant to OAR 333-333-5000(7)(h). (d) Make false representations or statements to the Authority in order to induce or prevent action by the Authority. (e) Misrepresent any psilocybin product to a client or to the public. (f)Deliver or transfer psilocybin products to any person off the licensed premises or to any unlicensed location. (g)Allow any client to leave the licensed premises with psilocybin products. (h) Sell or offer to sell a psilocybin product that does not comply with the minimum standards prescribed by the statutory laws of this state. (2)No licensee or license representative may be under the influence of intoxicants while present on a licensed premises. The requirements of this section to do not apply to licensees and license representatives who are off duty and consume psilocybin products while receiving psilocybin services as a client. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4510 Storage (1)All psilocybin products must be stored within a limited access area on a licensed premises. (2)All psilocybin products stored on a licensed premises must be kept within: (a)A locked, enclosed area within a limited access area of the licensed premises that is secured with at a minimum, a properly installed steel door with a steel frame, and a commercial grade, non-residential lock; or (b)A locked safe located within a limited access area of the licensed premises. (3) The requirements of section(2) of this rule do not apply to fungi and mycelium stored at manufacturer that has not been harvested or is undergoing a drying process. (4) Psilocybin products that require refrigeration must be stored in appropriate, temperature- controlled environments. (5) Psilocybin products offered for sale by a service center must be stored in such a manner that the items are only accessible to license representatives until such time as the sale to the client is completed. Clients who wish to examine psilocybin products prior to purchase may do so only under the direct supervision of a license representative. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4520 Client Bill of Rights Page 30 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (1)A service center must post the following"Client Bill of Rights" in a prominent location within the licensed premises and must provide every client with a copy during their preparation session: "Clients receiving psilocybin services in Oregon have the following rights: To be treated with dignity and respect while receiving psilocybin services. To receive culturally competent care. To be free from physical, sexual,psychological, and financial abuse before, during, and after receiving psilocybin services. To receive the most current and complete information regarding the risks associated with psilocybin services. To make decisions without coercion or undue influence. To be fully informed of the known benefits and risks associated with psilocybin services. To refuse psilocybin services prior to beginning an administration session. To privacy and confidentiality while receiving psilocybin services. To refuse to release any personal information to third parties, except as required by law. Information may be required to be released by law when a client initiates a complaint, when communications reveal an intent to cause harm to others or disclose that a minor may have been a victim of abuse, or when responding to an investigation by Oregon Health Authority. To full disclosure of any facilitator conflicts of interest. To a full accounting and explanation of the costs associated with receiving psilocybin services before receiving those services. To store personal belongings securely while receiving psilocybin services. To access their client records after providing reasonable notice to a facilitator or service center and to correct information that is inaccurate. To request a private space in which to receive psilocybin services. To be monitored and supported by a licensed facilitator for the duration of psilocybin services until it is safe for the client to leave the service center To receive psilocybin services from a licensed facilitator for the duration of those services, except in cases of emergency. To access service centers, therapy rooms, and psilocybin services that are welcoming and accessible to people with disabilities. To have access to a clean, single occupancy restroom for the duration of psilocybin services. To discuss this Bill of Rights with licensed facilitators and service center operators without facing discrimination or retaliation. To report violations of this Bill of Rights to the Oregon Health Authority, or other appropriate governing body, without facing discrimination or retaliation. To withdraw or alter my consent to receive psilocybin services or release information. To receive services in a manner that considers my individual conditions, sensitivities and health concerns To make complaints to the Oregon Health Authority regarding psilocybin products and services" Page 31 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (2) The text of the Client Bill of Rights may not be altered and must be printed in an easily legible font. (3)A facilitator or service center must provide the Client Bill of Rights in other languages or accessible formats upon a client's request. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4550 Security Requirements (1)A service center, manufacturer or laboratory licensee is responsible for the security of all psilocybin products on the licensed premises or in transit, including providing adequate safeguards against theft or diversion of psilocybin products. (2) During hours when the licensee is not operating, the licensee must ensure that all points of ingress and egress to and from indoor areas of the licensed premises are securely locked. (3) Licensees must ensure that all limited access areas of a licensed premises are accessible only to license representatives and other personnel authorized to be present under these rules. (4) The requirements of these rules apply to all licensed premises regardless of whether the licensed premises is located within a building that contains separate unlicensed areas or located at an address that contains separate unlicensed structures. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4600 Alarm System (1)A service center, manufacturer or laboratory must have a fully operational security alarm system on the licensed premises, activated at all times when the licensed premises is closed for business. (2) The security alarm system for the licensed premises must: (a) Be able to detect unauthorized entry onto the licensed premises and unauthorized activity within the licensed premises. (b)Notify the licensee, license representative or authorized personnel in the event of an unauthorized entry. (c) Have at least two operational"panic buttons" located inside the licensed premises linked with the alarm system that immediately notifies a security company or law enforcement. (3)Upon request, licensees shall make all information related to security alarm systems, monitoring and alarm activity available to the Authority. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4620 Video Surveillance Equipment (1)A licensed premises must have a fully operational video surveillance recording system. Page 32 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (2)Video surveillance equipment must, at a minimum: (a) Consist of: (A) Digital or network video recorders. (B) Cameras capable of meeting the requirements of OAR 333-333-4630 and this rule. (C)Video monitors. (D) Digital archiving devices. (E)A minimum of one monitor on premises capable of viewing video. (F) Interface devices, if required to adequately operate system or machinery such as a mouse and keyboard. (b) Have the capability of producing and printing a still photograph from any camera image. (c) Have sufficient battery backup to support a minimum of one hour of recording time in the event of a power outage. (3) Except for mounted cameras and monitors, all video surveillance equipment and recordings must be stored in a locked secure area that is accessible only to authorized personnel, Authority employees and contractors, and other state or local government officials that have jurisdiction over some aspect of the licensed premises or licensee. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4630 Required Camera Coverage and Camera Placement (1)A licensed premises must have camera coverage, if applicable, for: (a) All points of ingress and egress to and from indoor areas of the licensed premises,unless those points are located within a client administration area. (b)All areas where psilocybin products are stored or produced. (c) All areas where psilocybin waste is required to be stored, destroyed or rendered unusable as required by OAR 333-333-8000. (2)A licensee must ensure that cameras are placed so that they capture clear and certain images of any individual and activity occurring: (a)All points of ingress and egress to and from indoor areas of the licensed premises. (b) In all locations on the licensed premises where psilocybin products are produced or stored. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4640 Video Recordings of Administration Sessions (1)A service center licensee may not install video surveillance equipment in client administration areas. Service centers may make video and audio recordings of administration sessions using portable equipment with the prior written consent of every client and facilitator who will be recorded. Page 33 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (2) Service centers must make recordings made under this rule available to view for recorded clients and facilitators upon request. Service centers are prohibited from charging a fee to view recordings. (3) Service centers must securely store recordings made under this rule and may not publish, share or otherwise distribute without the obtaining the prior written consent of every person recorded using the form described in OAR 333-333-4810(3). (4) Service centers must retain recordings made under this rule for a period of five years. (5) Clients and facilitators may withdraw their written consent described in sections (1) and (3) of this rule at any time. (6) Recordings made under this rule are not subject to OAR 333-333-4620 and OAR 333-333- 4630, except that any video recordings of administration sessions in the licensee's possession must be provided to the Authority upon request. Statutory/Other Authority: ORS 475A.235, ORS 475A.305 Statutes/Other Implemented: ORS 475A.235, ORS 475A.305 333-333-4650 Video Recording Requirements for Licensed Facilities (1)A service center, manufacturer or laboratory licensee must have cameras that continuously record, 24 hours a day: (a) In all areas where psilocybin products are produced or stored on the licensed premises. (b) In all areas where psilocybin waste may be present on the licensed premises. (c) All points of ingress and egress to and from: (A) Indoor areas of the licensed premises. (B)Areas where psilocybin products are produced or stored. (C)Areas where psilocybin waste may be present. (2)A service center, manufacturer or laboratory licensee must: (a) In all areas where camera coverage is required, use cameras that record at a minimum resolution of 1280 x 720 px and record at 10 fps (frames per second). (b)Use cameras that are capable of recording in all lighting conditions. (c) Retain surveillance recordings for a minimum of 30 calendar days. (d) Maintain surveillance recordings in a format approved by the Authority that can be easily accessed for viewing and easily reproduced. (e)Upon request of the Authority, keep surveillance recordings for periods exceeding the retention period specified in subsection(2)(c) of this rule. (f)Have the date and time embedded on all surveillance recordings without significantly obscuring the picture. (g)Archive video recordings in a format that ensures authentication of the recording and guarantees that no alteration of the recorded image has taken place. (h) Make video surveillance records and recordings available immediately upon request to the Authority in a format specified by the Authority for the purpose of ensuring compliance with ORS chapter 475A and these rules. Page 34 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (3)Notwithstanding the requirements in section(1) of this rule a service center, manufacturer or laboratory licensee may stop recording in areas where psilocybin products are not present due to seasonal closures or prolonged periods of inactivity. (a) At least 24 hours before stopping recording, a licensee must submit written notice to the Authority by electronic mail using a designated form as published by the Authority on its website and the notice must include: (A) A description of the total number and location of cameras that will be deactivated. (B) The date and time recording will stop. (C)An explanation for why recording will be stopped. (D) The date and time recording will resume. (b)A licensee must resume all required recording no later than the date and time specified in the notice submitted under subsection(a) of this section. (c) A licensee may not engage in any licensed privileges in any areas where recording was stopped under this section. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4660 Location and Maintenance of Surveillance Equipment (1)A service center, manufacturer or laboratory licensee must house the surveillance recording equipment in a designated, locked, and secured room or other enclosure with access limited to: (a) The licensee, license representatives, and authorized personnel. (b) Employees of the Authority. (c) Service personnel or contractors. (2)A service center, manufacturer or laboratory licensee must keep a current list of all authorized employees and service personnel who have access to the surveillance system and room on the licensed premises. (3) Service center, manufacturer or laboratory licensees must keep a surveillance equipment maintenance activity log on the licensed premises to record all service activity including the identity of any individual performing the service, the service date and time and the reason for service to the surveillance system. (4) Service center, manufacturer or laboratory licensees must keep a surveillance equipment outage log on the licensed premises to record all camera outages lasting more than 30 minutes. The log must identify the cameras affected and record time and duration of the outage. (5) Off-site monitoring of the licensed premises by a licensee or an independent third-party is authorized if standards exercised at the remote location meet or exceed all standards for on-site monitoring. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4700 Duty to Contact Emergency Services Page 35 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (1) Facilitators and service center license representatives must immediately contact appropriate emergency services when activity or conditions on the licensed premises endanger the safety of any person present on the premises. If licensee is unable to contact emergency services while the activity is taking place, they must contact emergency services as soon as it is possible to do so. (2) Facilitators and service center license representatives must contact emergency services when any person on the licensed premises requires immediate medical attention. (3) In addition to the requirements of sections (1) and(2) of this rule, licensees must notify the Authority in writing in a form and manner prescribed by the authority within 48 hours of contacting emergency services. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.23 5 333-333-4810 Client Confidentiality (1)A service center or facilitator may not disclose any information that may be used to identify a client, or any communication made by a client during the course of providing psilocybin services or selling psilocybin products to the client, except with client's consent or otherwise as allowed by ORS 475A.450. (2)A service center or facilitator must have a completed client consent form to disclose identifiable client information that contains the following: (a) A specific description of the client's identifiable information to be used or disclosed. (b) The name or specific identification of the person(s) or class of person(s)the client's information will be disclosed to. (c) The specific purpose for which the information will be used or disclosed. (d) The date and signature of the patient. (e) An expiration date when the consent to use or disclose is withdrawn. (3)A service center or facilitator must use the client written consent form provided by Oregon Psilocybin Services to meet the requirements of section(2) of this rule. The consent form is available at on the Oregon Psilocybin Services website. (4) The client consent form described in section(2) of this rule must be completed at least 24 hours prior to the client's administration session or at least 24 hours after the conclusion of the client's administration session. (5)A service center or facilitator must provide a client with a disclosure form during a preparation session if the facilitator or service center intends to share the client's de-identified data. (6)A service center or facilitator must use the disclosure form provided by Oregon Psilocybin Services to meet the requirements of section(5) of this rule. The disclosure form is available on the Oregon Psilocybin Services website. (7)A service center or facilitator may not condition the provision of psilocybin services on whether a client consents to the use or disclosure of their identifiable information. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.450 Page 36 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. 333-333-4820 Record Retention (1) Licensees shall store, maintain and destroy records in a manner that prevents unauthorized access and protects client confidentiality. (2)Unless otherwise specified in these rules, licensees must retain required records for a period of five years. (3) Licensed facilitators and service centers must allow current and former clients to access and examine client records and request corrections to those records. Following the retention period described in section (2) of this rule a facilitator or service center must destroy client records upon the client's request. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-4830 Financial and Business Records In addition to any other recordkeeping requirements in these rules, a licensee must have and maintain records that clearly reflect all financial transactions and the financial condition of the licensed entity. The following records may be kept in either paper or electronic form in a manner that prevents unauthorized access and protects confidential employment records. Records required by this rule must be maintained for a five-year period and must be made available for inspection if requested by the Authority: (1) Purchase invoices and supporting documents for items and services purchased for use in the production, processing, research, testing and sale of psilocybin products that include from whom the items were purchased and the date of purchase. (2) Bank statements for any accounts associated with the licensed entity. (3)Accounting and tax records associated with the licensed entity. (4) Documentation of all financial transactions related to the licensed entity, including contracts and agreements for services performed or received that relate to the licensed entity. (5)All employee records, including training. (6) Information relating to the structure and ownership of the entity, including: (a)A list of all individuals and legal entities identified as applicants. (b) For each legal entity identified as an applicant, complete information about the ownership structure of that legal entity. (c) A list of all individuals and legal entities who are entitled to receive a portion of revenue, proceeds, or profits from the licensed entity. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-5000 Preparation Session Requirements Page 37 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (1)A facilitator must complete a preparation session with every client who will participate in an administration session at least twenty-four hours but no more than 90 days prior to the commencement of the client's first administration session with the facilitator. If different facilitators will conduct a client's preparation, administration sessions or integration session, the client must provide written consent as described in subsection(7)(g) of this rule. A client must have an opportunity to approve and meet any facilitator who will provide psilocybin services prior to receiving services from that facilitator. (2) Preparation sessions required under this rule must be conducted privately with each individual client to allow clients to share personal information. (3) For every client who will participate in an administration session, a facilitator must receive a completed client information form as described in OAR 333-333-5050. (4) For every client who will participate in an administration session, a facilitator must complete a transportation plan as described in OAR 333-333-5150 in coordination with the client. The transportation plan may not approve a client to operate a motor vehicle, bicycle, or other form of self-operated transportation immediately following the administration session. (5) For every client who will participate in an administration session, a facilitator must coordinate with the client to complete a client safety plan as described in OAR 333-333-5080. (6) A facilitator must provide a client with the following during or prior to a preparation session and review each document with the client during a preparation session: (a) Informed consent document as described in OAR 333-333-5040. (b) Client Bill of Rights as described in OAR 333-333-4520. (c) Product information document as described in OAR 333-333-2410 for any products that may be consumed during an administration session. (d) Documentation of the fees charged for provision of psilocybin services prepared in coordination with the service center. This documentation must indicate whether fees for services will be paid to the service center or directly to the facilitator. This documentation must describe applicable refund policies for psilocybin services and any additional fees, including but not limited to cancellation fees, that could be charged to the client. (e) Documentation of the price charged for sale of psilocybin products prepared in coordination with the service center. This documentation must list product prices separately from taxes as required by OAR 333-333-5180. (f)Applicable sections of the service center emergency plan required by OAR 845-025-4460. (g) Disclosure form for de-identified client data required by OAR 845-025-4810(5). (7) In addition to the documents required by sections (3)(4)(5) and(6) of this rule, a facilitator must obtain prior written consent from a client during a preparation session for the following activities and circumstances: (a) Participation in a group administration session, including the opportunity to meet other clients and facilitators participating in the group session as described in OAR 333-333-5020. (b)Use of supportive touch during an administration session, if any, as described in OAR 333- 333-5120(6). (c) Participation in a training practicum, including information regarding training program students and instructors who will be present during the client's administration session. The client Page 38 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. must have an opportunity to meet any students or instructors who will be present during their administration session prior to the commencement of an administration session. (d)Video or audio recording of an administration session pursuant to requirements of OAR 333- 333-4640. (e) Presence of an interpreter or client support person allowed by OAR 333-333-5070, in the administration area during an administration session. (f) Sharing of identifiable client data as described in OAR 333-333-4810(2). (g) The use of different facilitators to conduct a client's preparation, administration sessions or integration session. (h) Consuming secondary doses of psilocybin products after the administration session has begun, including the total amount of psilocybin analyte that a client agrees to consume, not to exceed 50 mg of psilocybin analyte. (i) Participating in an administration session where licensed representatives of a service center will be present pursuant to OAR 333-333-5200(9). (8) During a preparation session, facilitators must provide clients an opportunity to discuss internal and external factors that could impact a psilocybin experience including but not limited to the client's intention and expectations. If the client will participate in an outdoor administration session, the facilitator must provide an opportunity to discuss the client's specific concerns that may be relevant to participating in an outdoor administration session, including but not limited to allergies and sensitivity to sun exposure. (9) Preparation sessions may be completed in person or virtually using video conferencing technology. (10) The requirements of this rule may be satisfied by conducting multiple preparation sessions. (11) A facilitator must complete an initial preparation session with every client before conducting an administration session with that client for the first time. After completing the initial preparation session, a facilitator is not required to complete additional preparation sessions prior to conducting an administration session with that client for a period of 12 months. (12) If a facilitator does not complete additional preparation sessions as allowed by section(11) of this rule, the facilitator must confirm that the information contained in the client's previously completed client information form remains accurate prior to conducting additional administration sessions. (13)A facilitator must discuss the process for verification of license status and process for making complaints to the Authority during a preparation session. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5020 Group Preparation Sessions (1) In addition to the requirements of OAR 333-333-5000 clients who will participate in a group session must be informed of additional considerations for participating in group administration sessions. Page 39 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (2) Clients who will participate in a group administration session must have the opportunity to meet and interact with other clients and any interpreters or client support persons who will participate in the group administration session prior to the session commencing. (3) Clients who will participate in a group administration session must have an opportunity to meet every facilitator who will participate in the group administration session prior to the session commencing. (4) The requirements of sections (2) and (3) of this rule may be satisfied at any time prior to commencement of the group administration session, including the day of the administration session. Clients must have the opportunity to reschedule their administration session with alternate groups or facilitators after the meetings described in sections (2) and(3) of this rule. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5040 Informed Consent (1)A facilitator must provide every client a copy of the following informed consent document during the client's preparation session: Introduction: In the State of Oregon,psilocybin services include a preparation session, administration session, and integration session. You should receive this informed consent form prior to or during your preparation session. During the preparation session,your facilitator will review and discuss this form with you. Please make sure you read and understand every section because you must sign the form before the administration session begins. If you do not understand any part of this document,please ask your facilitator for clarification before signing. I have been informed of and understand the following: (Please initial each item below) 1. I have reviewed the Psilocybin Services Client Bill of Rights, my facilitator has explained it to me, and I understand my rights as a client. 2. I understand that psilocybin services do not require medical diagnosis or referral and that psilocybin services are not a medical or clinical treatment. 3. I understand that psilocybin has not been approved by the Food and Drug Administration and the federal government currently classifies psilocybin as a Schedule I controlled substance under the Controlled Substances Act. Page 40 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. a. Federal law prohibits the manufacture, distribution, and possession of psilocybin even in cities and states that have adopted laws to allow its possession or use. b. Despite its federal Schedule I status, research suggests that psilocybin is very unlikely to be addictive. Additionally, research and other information suggests that psilocybin may improve symptoms of depression, anxiety, end of life distress, various forms of trauma, and problematic substance use. 4. I understand that while existing research has shown promising results, the risks, benefits, and drug interactions of psilocybin are not fully understood, and individual results may vary. 5. I understand that some people have found psilocybin administration sessions to be challenging or uncomfortable. Common potential side effects include nausea, mild headache,fatigue, anxiety, confusion, increased blood pressure, elevated heart rate,paranoia,perceptual changes, altered thought patterns, reduced inhibitions, recovery of repressed memories and past traumas, and altered perception of time and one's surroundings. If they occur, these side effects are usually mild and temporary. Because the potential risks and benefits of psilocybin administration are not fully understood, there may be unanticipated side effects. 6. I understand that if I am taking prescription medications or have a medical condition or mental health condition, I should consider consulting with a medical or clinical provider before participating in an administration session. 7. I understand that psilocybin is derived from fungi. If I have a known mushroom allergy, I should consult with a medical professional before participating in an administration session. 8. I understand that the risks of psilocybin during pregnancy and breastfeeding are unknown. 9. I understand that facilitators may not use touch while providing psilocybin services without my prior written consent. My facilitator and I have discussed Page 41 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. acceptable types of supportive touch and the requirement to provide prior written consent prior to the start of my administration session. 10. I understand that facilitators may be mandatory reporters of abuse. If my facilitator is a mandatory reporter, they have shared this information with me and explained their legal obligations to report abuse. 11. I understand that facilitators have a duty to report misconduct that harms or endangers a client to the Oregon Health Authority. If the misconduct presents an immediate risk to health and safety,facilitators have a duty to contact emergency services. 12. I agree to follow my agreed upon transportation plan. I understand that a facilitator may contact emergency services if failure to follow my transportation plan presents a risk to my safety or the safety of others. 13. I understand that being administered psilocybin is completely voluntary and I may decide not to receive psilocybin at any time. 14. I understand that I have the right to update my client information form prior to beginning an administration session and I have the right to receive a copy of my client information form upon request. 15. I understand that de-identified data collected by my facilitator or service center may be shared with people and institutions outside of the facilitator or psilocybin service center for research and other purposes. 16. I understand data that may be used to identify me as a client will only be shared to the extent permitted or required by law. Specifically, ORS 475A.450 allows disclosure in the following circumstances: (1) When the client or a person authorized to act on behalf of the client gives consent to the disclosure; (2) When the client initiates legal action or makes a complaint against the psilocybin service center operator, the psilocybin service facilitator, or the employee; (3) When the communication reveals the intent to commit a crime harmful to the client or others; Page 42 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (4) When the communication reveals that a minor may have been a victim of a crime or physical, sexual or emotional abuse or neglect; or (5) When responding to an inquiry by the Oregon Health Authority made during the course of an investigation into the conduct of the psilocybin service center operator, the psilocybin service facilitator, or the employee under ORS 475A.210 to 475A.722. 17. I understand that my facilitator may take short restroom breaks, up to approximately 5 minutes, during my administration session. 18. I understand that for my own safety, leaving a psilocybin service center during an administration session once it has begun is strongly discouraged. Doing so could lead to safety and legal risks. 19. I understand and have been informed of the potential benefits, risks, and complications of psilocybin services with my facilitator to the extent that they are known. 20. My facilitator has shared locations of client restrooms and protocols for use of restrooms during an administration session. 21. My facilitator has shared information regarding verification of license status and process for making complaints to the Oregon Health Authority. 22. I have had the opportunity to ask questions regarding anything I may not understand or that I believe should be made clear. 23. If participating in a group administration session, I understand that I will be experiencing the effects of psilocybin in the presence of other clients who are also experiencing the effects of psilocybin and may be reacting to the experience in a different manner. 24. If consuming greater than 35 mg of psilocybin analyte during an administration session, I acknowledge that clinical trials have not typically administered doses of greater than 35 mg of psilocybin analyte. The risks and benefits of consuming doses greater than 35 mg of psilocybin analyte are unknown. 25. If consuming whole fungi during an administration session, I understand that psilocybin content can vary between individual fruiting bodies. Page 43 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. 26. I understand that a facilitator has a duty to call emergency services if required and a client assumes responsibility for costs of emergency services. 27. I understand that I may be charged a cancellation fee if I cancel a scheduled preparation, administration or integration session with less than 24 hours'notice. Name (Print) Signature Date (2)A facilitator must review the contents of the informed consent form with each client and receive a signed copy of each client's informed consent document prior to beginning an administration session. (3)A facilitator or service center must provide the informed consent document in other languages or accessible formats upon a client's request. If a facilitator or service center is unable to provide a translated or accessible document upon a client's request, they may not conduct an administration session with the client. (4) Informed consent documents may be delivered electronically as long as the facilitator receives a signed informed consent document, in either paper or electronic format, prior to beginning an administration session. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5050 Client Information Form (1)A client must review and complete a client information form in coordination with a facilitator prior to participating in an administration session. (2)A facilitator must provide a client information form in other languages or accessible formats upon a client's request. If a facilitator is unable to provide a translated or accessible client information form upon a client's request, they may not conduct an administration session with the client. (3) The client information form must include the following questions, and a client must answer each question by indicating "yes" or"no": (a) Have you taken the prescription drug Lithium in the last 30 days? (b)Are you currently being treated by a medical, clinical or other healthcare provider for a medical, mental health, or behavioral health condition? (c) Have you ever had an allergic reaction to consuming mushrooms or other fungi? (d)Are you currently taking any medications that might need to be consumed during an administration session? (e) Will you require assistance from an interpreter during an administration session? Page 44 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (f) Will you require assistance from a client support person for catheter, ostomy, or toileting assistance, ambulation or transfer mobility support, or medical device assistance during the administration session? (g) Will you require assistance from a client support person for augmentative and alternative communication(AAC) device support or assistive listening device support during the administration session? (h) Do you have a recent history of causing harm, or wanting to cause harm, to self or others? (i) Do you require any assistive mobility devices? (j) Will you require assistance to consume psilocybin products? (k) Would you like to share any other conditions, sensitivities or health concerns with your facilitator? (4) The client information form must include the following questions, and a client may provide a narrative answer to these questions or may choose not to answer. (a) Would you like to share anything about your medical history, including current medications, that you feel would be helpful for an administration session? (b) Would you like to share anything about your mental health history, including traumatic experiences or past history of causing harm, or wanting to cause harm, to self or others, that you feel would be helpful for an administration session? (c) Would you like to share anything about your history of substance use, including current substance use, that you feel would be helpful for an administration session? (d) Would you like to share any past experiences with psychedelics or altered states of consciousness? (e) Would you like to share any information about your relationships,your living situation, or your educational or work environment that may be affected by your administration session or may require additional safety or support planning? (5)A facilitator must evaluate the answers to questions listed in section(3) of this rule to determine whether the client should participate in an administration session. (a) If a client answers yes to question (3)(a), the client may not participate in an administration session. (b) If a client answers yes to question(3)(b), a facilitator shall encourage the client to consult a medical, clinical or other healthcare provider regarding the risk of consuming psilocybin. (c) If a client answers yes to question (3)(c), the client should be encouraged to consume an alternative psilocybin product rather than whole fungi or homogenized fungi during the administration session. (d) If a client answers yes to question(3)(d), a facilitator should encourage the client to schedule their administration session at a time that allows them to participate without taking medication. A facilitator should also encourage the client to consult with a pharmacist or medical, clinical or other healthcare provider regarding contraindications. If the client will take medication during an administration session, the client and facilitator must work together to identify whether the client will be able to administer the medication themselves. If the client is unable to administer the medication themselves, the client must identify a client support person who will be available to administer the medication when required. Page 45 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (e) If a client answers yes to question (3)(e), the client and facilitator must work together to identify an appropriate interpreter who will be present in person or virtually during the client's administration session. (f) If a client answers yes to question (3)(f), the client and facilitator must work together to create a written assistance or medical device plan. (A) If the client requires a medical device, the medical device plan must describe the required medical device and indicate whether the client will be able to use the medical device without assistance. If the client is unable to use the medical device without assistance, the written medical device plan must identify a client support person who will be available to assist the client with their medical device when required. (B) If the client requires assistance with catheter, ostomy, or toileting assistance, ambulation or transfer mobility support, the assistance plan must identify the type of assistance required and a client support person who will be available to assist the client. (g) If a client answers yes to question(3)(g), the client and facilitator must work together to identify an appropriate client support person who will be present during the client's administration session to assist with the client's alternative communication device support or assistive listening device support during the administration session. (h) If a client answers yes to question(3)(h), a facilitator shall encourage the client to consult with a qualified mental health care provider regarding the risk of consuming psilocybin. (i) If a client answers yes to question(3)(i), the client and facilitator must work together to create a written plan that describes how the client will safely exit the service center in the event that an emergency occurs during their administration session. (j) If a client answers yes to question(3)(j), the client and facilitator must work together to identify an appropriate client support person who will be present to assist the client with consuming psilocybin products during their administration session. (k) If a client answers yes to question(3)(k), the client and facilitator must work with the client to create a written plan that describes how the facilitator will take reasonable steps to accommodate the conditions, sensitivities or health concerns identified by the client. For example, if a client has a compromised immune system, the written plan will describe efforts to prevent the transmission of viruses and bacteria. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5070 Interpreters and Client Support Persons (1) If an interpreter or client support person will be present during receipt of psilocybin services, a client and facilitator must meet with the interpreter or client support person prior to beginning the administration session. (2) During the meeting required by section(1) of this rule a client and facilitator must work together with the interpreter or client support person to complete a written support person plan using the form published by the Authority that contains the following information: (a) The name of the interpreter or client support person who will attend the session. Page 46 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (b) The specific purpose for which the interpreter or client support person will be present, including but not limited to identifying any medications or medical devices that the client will utilize during administration session. (c) Whether the interpreter or client support person will be present for the duration of an administration session or whether they will be available as needed. (d)A signed statement that the interpreter or client support person agrees to the following conditions: (A) Interpreters and client support persons will be present for the specific purposes described in their support person plan and shall not interfere or otherwise participate in the administration session. (B) Interpreters and client support persons, facilitators and service centers shall not share or disclose any information regarding clients' participation in psilocybin services. (3) Client support persons shall perform only those activities identified in the written support person plan described in section(2) of this rule. (4) Client support persons are prohibited from touching clients except as required to perform activities identified in the written support person plan described in section(2) of this rule. (5) During the meeting required by section(1) of this rule a facilitator must provide a copy of the Client Bill of Rights and allow the interpreter or client support person an opportunity to ask questions. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5080 Safety and Support Plans (1)A facilitator must work with every client who will participate in an administration session to draft a safety and support plan that identifies risks and challenges specific to the client's circumstances and resources available to mitigate those risks and challenges, including the client's existing support network and appropriate external resources. (2) Safety and support plans may not be changed during an administration session. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5090 Client Acknowledgement (1) Prior to beginning an administration session, a client must sign and complete a client acknowledgement document that attests to the following: (a) The client has received a copy of the Client Bill of Rights and has had an opportunity to discuss that document with their facilitator. (b) The client has reviewed and signed an informed consent document and has had an opportunity to discuss that document with their facilitator. (c) The client has completed a client information form in coordination with a facilitator and the information contained in the document is true and accurate. Page 47 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (d) The client has completed a transportation plan in coordination with a facilitator and agrees to follow the transportation plan. (2) If applicable, a client must acknowledge that they have completed the following documents prior to beginning an administration session. (a) If an interpreter or client support person will be present during the administration session as described in OAR 333-333-5070, consent for that person to be present during an administration session. (b) Consent for any applicable circumstances in OAR 333-333-5000(5). (c) Consent to receive additional psilocybin products after the administration session has begun as described in OAR 333-333-5240(3). (d) Consent to disclose identifiable client information as described in OAR 333-333-4810(3). (e) Disclosure form for sharing de-identified client data as described in OAR 333-333-4810(5). Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5100 Facilitator and Service Center Record Keeping and Confidentiality (1)A facilitator shall create and retain the following records for every client to whom they provide psilocybin services. A copy of these records must be also stored at the service center where the client received services: (a) Completed information form described in OAR 333-333-5050. (b) Completed informed consent document described in OAR 333-333-5040. (c) Transportation plan described in OAR 333-333-5150. (d) Client acknowledgement form described in OAR 333-333-5090. (e) The date, start time and end time, for every preparation, administration and integration session. (f) The psilocybin products, including unique identification number, consumed by each client, including the amount of product consumed and whether it was consumed in a single dose or multiple doses. (g)Any deviation from the client's transportation plan. (h)Any adverse reactions that required medical attention or emergency services. (2) If applicable and as required by these rules, a facilitator shall create the following records, and these records must be stored at the service center where the client received services: (a) Consent for any applicable circumstances described in OAR 333-333-5000(7. (b) Support person plans as required by OAR 333-333-5070. (c) Safety and support plans as described in OAR 333-333-5080. (3) Records required by this rule must be provided to the client upon request pursuant to OAR 333-333-4820(3). (4) Records required by this rule must identify the client receiving services. (5) Facilitators and service centers shall not share or disclose any records required by this rule unless permitted or required to do so by ORS 475A.450 or these rules. Page 48 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340, ORS 475A.450 333-333-5120 Facilitator Conduct (1) Facilitators have a duty to put clients' interest above their own and to use a standard of care that other reasonable facilitators would use under similar circumstances. (2)A facilitator shall not make any misrepresentations to clients regarding psilocybin products or services, the requirements of ORS 475A.210 to 475A.722 and these rules, or the facilitator's qualifications and experience. (3)A facilitator shall utilize their training to distinguish between typical side effects of consuming psilocybin and medical emergencies. In the event of a medical emergency, a facilitator must contact emergency responders or other appropriate medical professionals immediately. (4)A facilitator shall only provide psilocybin services within the limits of their professional competence. When a client demonstrates circumstances or conditions that exceed the limits of a facilitator's professional competence, a facilitator has a duty to make reasonable efforts to refer that client to another facilitator. (5) Except when acting as a practicum site supervisor under OAR 333-333-3070, a facilitator shall not provide psilocybin services to clients over whom they have supervisory, evaluative, or other authority. (6) Facilitators may provide supportive touch during administration sessions when requested by the client and with the client's prior written consent. Supportive touch is limited to hugs or the facilitator placing their hands on a client's hand or shoulder. A facilitator shall not use any other forms of touch, nor permit another person to use any other form of touch during an administration session. (7)A facilitator shall not assist a client with any of the activities required to be performed by a client support person pursuant to OAR 333-333-5070. (8) A facilitator shall not engage in any romantic relationship, sexual contact, or sexual intimacy with a client during the provision of psilocybin services including preparatory, administration, and integration sessions. (9)A facilitator shall not engage in any romantic relationships, sexual contact, or sexual intimacy with clients, or clients' partners or immediate family members, for a period of one year following the last date that the facilitator provided psilocybin services to the client. (10)A facilitator may not engage in any financial transactions with clients or the client's partners or immediate family members that violate a facilitator's duty to place client's interests above their own as required by section (1) of this rule. (11) If a facilitator is a mandatory reporter of abuse under Oregon law, the facilitator must disclose their status and obligations to a client at the beginning of the client's first preparation session. (12) The requirements of this rule apply to all facilitators, regardless of whether facilitator is also a license representative of a service center. Page 49 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5130 Facilitator Scope of Practice (1)A facilitator shall not engage in any conduct that requires additional professional licensure while providing psilocybin services to clients, including but not limited to diagnosing and treating physical or mental health conditions. (2)A facilitator is prohibited from transferring, selling or otherwise handling any psilocybin product while they are facilitating a preparation, administration or integration session, regardless of whether the facilitator is also a license representative of a service center. (3) If a facilitator holds a professional license in another field, the facilitator shall not exercise the privileges of that license while providing psilocybin services to clients. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5140 Duty to Report Misconduct (1)Any licensee, license representative or permittee who witnesses or becomes aware of conduct involving a client that violates ORS chapter 475A or these rules must report that conduct to the Authority within 24 hours. (2)Any licensee, license representative or permittee who witnesses or becomes aware of conduct that harms or potentially endangers a client must report that conduct to the Authority within 24 hours in a form and manner prescribed by the Authority. (3) Failure to report as required by sections (1) and(2) of this rule is violation, separate from any violations that may have occurred as a result of the underlying conduct. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5150 Transportation Plans (1)A facilitator must create and record a transportation plan for every client that receives psilocybin services. (2) Transportation plans must be signed by the client and describe how the client will access safe transportation away from the service center at the conclusion of an administration session. (3) Transportation plans shall advise a client not to operate a motor vehicle directly following an administration session. Facilitators shall make reasonable efforts to prevent clients from operating a motor vehicle at the conclusion of an administration session. If a client's failure to follow their transportation plan creates a danger to the client's safety or the safety of others, a facilitator must contact appropriate emergency services. (4) If a client is unable to follow their transportation plan, a facilitator must make reasonable efforts to arrange for alternative transportation. Page 50 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (5) A facilitator must document in writing all instances in which a client does not follow their transportation plan. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5160 Sale of Psilocybin Services A facilitator must list fees for psilocybin products separately from fees for preparation, administration and integration sessions and must specify whether those fees will be paid directly to the facilitator or to the service center where the client receives psilocybin services. Statutory/Other Authority: ORS 475A.235, ORS 475A.340 Statutes/Other Implemented: ORS 475A.340 333-333-5170 Sale and Transfer of Psilocybin Products to Clients (1) Psilocybin products may only be sold and transferred to clients by license representatives of a service center. (2)Payment for psilocybin products must be received prior to beginning an administration session. If purchased psilocybin products are not transferred to a client, a service center must provide a refund for the purchase price. (3)A license representative of a service center must transfer psilocybin products to clients within a designated administration area and clients must consume psilocybin products promptly following transfer. (4)A license representative of a service center must transfer psilocybin products to clients in sealed client packaging. (5)A license representative of a service center must ensure that a client consumes psilocybin products promptly after psilocybin products are transferred to the client. (6)A license representative of a service center must observe a client consume any psilocybin products transferred to that client and dispose of packaging waste appropriately. Any portion of a product that is not consumed must be returned to a license representative and must be destroyed at the conclusion of the client's administration session. If a client is unable to open or consume a psilocybin product without assistance, they may identify a client support person to assist them subject to the requirements of OAR 333-333-5050(5)(j) and OAR 333-333-5070. (7) Facilitators are prohibited from transferring,preparing or otherwise handling psilocybin products, unless the facilitator is also a license representative of a service center. (8) Facilitators are prohibited from transferring, selling or otherwise handling any psilocybin product while they are facilitating a preparation, administration or integration session, regardless of whether the facilitator is also a license representative of a service center. (9) Clients may mix psilocybin products with packaged food or beverages prior to consuming, as long as the packaged food or beverage was unopened prior to mixing. (10) Licensees shall not permit clients to mix psilocybin products with any items other than packaged food and beverages, including but not limited to: Page 51 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (a) Homemade food and beverage items. (b) Dietary and nutritional supplements, including herbal supplements and products derived from cannabis. (c) Prescription and non-prescription drugs. (d)Any intoxicant. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.468 333-333-5180 Collection of Taxes (1)A service center must collect from clients, at the point of sale, the tax imposed on psilocybin products under ORS 475A.662 and ORS 475A.666. (2)A service center must hold the tax described in section(1) of this rule in trust for the State of Oregon and remit the tax to the Oregon Department of Revenue in accordance with Department of Revenue rules. (3)A service center must separately state the cost of psilocybin products and the tax owed on any invoice or receipt provided to clients. (4)A service center may not collect a tax on any goods other than psilocybin products, nor on the cost for psilocybin services. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.666 333-333-5200 Administration Session Requirements (1)Administration sessions must be conducted by a facilitator and may only take place within a service center's designated administration area. (2) The requirements of OAR 333-333-5000 and OAR 333-333-5020, if applicable, must be satisfied prior to any client participating in an administration session in an administration area. (3)A facilitator must always be present during administration sessions and shall continuously monitor any client participating in the administration session. Continuous monitoring means that a facilitator must maintain visual and audio contact with clients and monitor clients for signs of physical or emotional distress. Video monitoring or other equipment may not be used to satisfy the requirement to continuously monitor clients. (4) The requirements of section(3) of this rule do not apply to client restroom breaks. (5)A facilitator may take restroom breaks of approximately five minutes or less during an administration session if the facilitator remains on the licensed premises and a service center license representative is available to monitor clients. (6) In addition to a facilitator conducting the administration session, at least one license representative of a service center license must be present on the licensed premises at all times when an administration session is taking place at a service center. If the additional license representative required by this rule holds a facilitator licensee, they are prohibited from Page 52 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. transferring, selling or otherwise handling any psilocybin product while they are facilitating a preparation, administration or integration session. (7) Facilitators must ensure that a back-up facilitator is available to assist in case of unforeseen circumstances that prevent the primary facilitator from completing the session. Back up facilitators must be able to reach the licensed premises within a reasonable period of time. (8) Except for individuals described in OAR 333-333-5070 and service centers acting as practicum sites, only clients, facilitators and license representatives of a service center may be present during an administration session. (9) License representatives of a service center who are present during an administration session: (a) May not provide psilocybin services. (b) May only be present to assist with operations and shall not interfere or otherwise participate in the administration session. (c) Shall not share or disclose any information regarding clients' participation in psilocybin services. (10) A service center may not host administrative sessions for more than 100 clients at any given time regardless of whether the clients are participating in separate individual or group administration sessions. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.340 333-333-5210 Outdoor Administration Sessions (1) Facilitators may conduct outdoor administration sessions within designated outdoor administration areas at a service center. (2) Outdoor administration areas must be free of falling hazards, drowning hazards and any other conditions that could pose a safety risk to clients. (3) The boundaries of an outdoor administration area must be clearly marked with visible signage or barriers. (4) Facilitators may not conduct outdoor administration sessions in adverse weather conditions, including,but not limited to extreme heat or cold, heavy precipitation, thunder and lightning storms, high winds or wildfire smoke. (5) Service centers with designated outdoor administration areas must also provide an indoor administration area for clients who request to move indoors after their administration session has begun. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.340 333-333-5230 Group Administration Sessions (1) Group administration sessions may be conducted pursuant to the requirements of OAR 333- 333-5020 and this rule. Page 53 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (2) Client to Facilitator Ratio. The minimum facilitator to client ratio depends on the amount of psilocybin product clients participating in the group administration session will individually consume, including any secondary doses. If the clients consume different amounts of psilocybin, the largest amount consumed will dictate the required facilitator to client ratio. (a) For clients consuming up to 5 mg of psilocybin analyte, the minimum facilitator to client ratio is 1 to 25. (b) For clients consuming equal or greater than 5 mg and less than 10 mg of psilocybin analyte, the minimum facilitator to client ratio is 1 to 15. (c) For clients consuming equal or greater than 10 mg and less than 15 mg of psilocybin analyte, the minimum facilitator to client ratio is 1 to 8 (d) For clients consuming equal or greater than 15 mg and less than 25 mg of psilocybin analyte, the minimum facilitator to client ratio is 1 to 6. (e) For clients consuming equal or greater than 25 mg and up to 35 mg of psilocybin analyte, the minimum facilitator to client ratio is 1 to 4 (f) For clients consuming equal or greater than 35 mg and up to 50 mg of psilocybin analyte, the minimum facilitator to client ratio is 1 to 2. (3) Group administration sessions may not exceed a total of 25 clients, or the service center's maximum occupancy for the administration area where the session takes place whichever is smaller, regardless of the number of facilitators present. (4) Client administration areas where group sessions take place, must provide an appropriate setting for the group sessions that: (a) Provide sufficient space for clients and facilitators to participate in the session without touching or coming into close physical contact with other clients. Client administration areas where group administration sessions will take place must contain at least twenty-five square feet of area for every person who will be present during the session. (b)Allows a facilitator to monitor clients as required by OAR 333-333-5200(3). (5) Clients participating in a group administration session are prohibited from touching one another except for supportive touch as described in OAR 333-333-5120(6). If supportive touch will be used during an administrative session, each participating client must provide prior written consent as described in OAR 333-333-5000(5)(b). (6) Every client participating in a group session must be provided with an opportunity to request individual support from a facilitator. (7) If a client becomes disruptive during a group administration session, a facilitator must make reasonable efforts to move that client to a separate area within the administration area that mitigates disruption to the other clients in the group. . (8) Every client participating in a group administration session must be present at the beginning of the session. (9)Unless explicitly stated in this rule, all requirements of OAR 333-333-5200 apply to group administration sessions. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.340 Page 54 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. 333-333-5240 Consumption Limits (1)A service center licensee or license representative may not allow a client to consume more than a total of 50 mg of psilocybin analyte during an administration session. (2)A service center licensee or license representative may permit a client to consume a secondary dose of psilocybin product during an administration session as long as the total amount of psilocybin analyte contained in the products is 50 mg or less. (3) Clients who want the option to consume a secondary dose during their administration sessions,up to a total of 50 mg of psilocybin analyte, must provide written consent prior to the beginning of their administration session. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.340 333-333-5250 Duration of Administration Session (1) The minimum duration of an administration session shall be dependent on the total amount of psilocybin a client consumes during that session, including any secondary dose consumed. (a) For clients consuming up to 5 mg of psilocybin analyte, the minimum duration of the administration session shall be one hour. (b) For clients consuming equal or greater than 5 mg and less than 10 mg of psilocybin analyte, the minimum duration of the administration session shall be two hours. (c) For clients consuming equal or greater than 10 mg and less than 25 mg of psilocybin analyte, the minimum duration of the administration session shall be four hours. (d) For clients consuming equal or greater than 25 mg and up to 35 mg of psilocybin analyte, the minimum duration of the administration session shall be five hours. (e) For clients consuming equal or greater than 35 mg and up to 50 mg of psilocybin analyte, the minimum duration of the administration session shall be six hours. (2) Following the conclusion of the minimum duration period described in section (1) of this rule, a facilitator, in consultation with the client, shall determine whether to continue an administration session. If the facilitator and client determine that continuing the administration session is not required to ensure the safety of the client and the public, the administration session may be concluded. (3) If following the consultation described in section(2) of this rule, a facilitator determines that it is appropriate to continue the administration session beyond 11:59 PM local time, the facilitator and service center where the client received services shall notify the Authority in a form and manner prescribed by the Authority no later than 11:00 AM the next calendar day. (4) A facilitator shall record and retain the time and date that each administration session began and concluded. (5)A facilitator shall require every client to sign a release document at the conclusion of the administration session which states that the client agrees to end their administration session and follow the terms of their transportation agreement. Page 55 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (6) A facilitator shall attempt to contact every client within 72 hours of the conclusion of the administration session to offer the client information on integration sessions and other services, including but not limited to peer support groups and community resources, in support of a client's ongoing integration needs. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.340 333-333-5260 Integration Session (1)A facilitator shall offer clients the opportunity to participate in one or more integration sessions following participation in an administration session. (2)A facilitator must use a non-directive approach to an integration session and comply with OAR 333-333-5130 during an integration session. (3)A facilitator may provide a client information regarding other services, including but not limited to peer support groups and community resources, in support of a client's ongoing integration needs. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.340 333-333-6000 Prohibited Conduct (1) Sale to a person under 21 years of age. A licensee or permittee may not sell, deliver, transfer or make available any psilocybin product to a person under 21 years of age. (2) Services to a person under 21 years of age. A facilitator may not provide psilocybin services to a person under 21 years of age. (3) Identification for Products. A licensee or license representative must require a person to produce identification as required by ORS 475A.445 before selling or providing a psilocybin product to that person. (4) Identification for Services. A facilitator must require a person to produce identification before providing psilocybin services to that person. (5)Access to Licensed Premises. (a)A licensee, license representative or permittee may not: (A) During regular business hours for the licensed premises, refuse to admit or fail to promptly admit an authorized Authority representative who identifies themselves and who enters or wants to enter a licensed premises to conduct an inspection to ensure compliance with ORS 475A.210 to 475A.722 or these rules; (B) Outside of regular business hours or when the licensed premises appear closed, refuse to admit or fail to promptly admit an authorized Authority representative who identifies themselves and requests entry on the basis that there is a reason to believe a violation of ORS 475A.210 to 475A.722 or these rules is occurring; or Page 56 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (C)Ask the authorized Authority representative to leave until the authorized Authority representative has had an opportunity to conduct an inspection to ensure compliance with ORS chapter 475A or these rules. (b) A licensee must retain control of, or the right of access to, all or any part of the licensed premises. (6)Use or Consumption of Intoxicants on Duty and Under the Influence on Duty. (a)No licensee, license representative, or permittee may consume any intoxicants while on duty. (b)No licensee, license representative, or permittee may be under the influence of intoxicants while present on a licensed premises. The requirements of this subsection do not apply to licensees, license representatives and permittees who are off duty and consume psilocybin products while receiving psilocybin services as a client. (c) As used in this section"intoxicants"means any substance that has intoxicating effects, and includes alcohol,prescription drugs, non-prescription drugs and any other controlled substances. (7) Import and Export. A licensee or permittee may not import psilocybin products into this state or export psilocybin out of this state. (8) Permitting, Disorderly or Unlawful Conduct. A licensee or permittee may not permit disorderly activity or activity that is unlawful under Oregon state law on the licensed premises or in areas adjacent to or outside the licensed premises under the control of the licensee. (a) If the prohibited activity under this section results in death or serious physical injury, or results in a sexual offense the violation is a Category I violation and could result in license or permit cancellation. (b)As used in this section: (A) "Disorderly activities"means activities that harass, threaten or physically harm oneself or another person. (B) "Disorderly activities"include offensive conduct towards another person based on race, ethnicity, language, disability, age, gender, gender identity, sexual orientation, or social class. (C) "Unlawful activity"means activities that violate the laws of this state, including but not limited to any activity that violates a state criminal statute. (c) The Authority does not require a conviction to establish a violation of this section. (9) Psilocybin as a Prize, Premium or Consideration. No licensee or permittee may give or permit the giving of any psilocybin product as a prize, premium, or consideration for any lottery, contest, game of chance or skill, exhibition, or any competition of any kind on the licensed premises. (10) Visibly Intoxicated Persons. No licensee or permittee may sell, give, or otherwise make available any psilocybin products or provide psilocybin services to any person who is visibly intoxicated. The requirements of this subsection(10) do not apply to clients who have provided prior written consent to consume additional psilocybin products during an administration session. (11) Additional Prohibitions. A licensee or permittee may not: (a) Deliver psilocybin products to a person or location off the licensed premises. (b) Permit psilocybin products to be present on the licensed premises, except as allowed by these rules. Page 57 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235, ORS 475A.340 333-333-6030 Laboratory Licensee Prohibited Conduct (1) In addition to the prohibitions set forth in OAR 333-333-6000, a laboratory licensee may not: (a) Perform any required psilocybin sampling or testing using any sampling or testing methods or equipment not permitted under the laboratory's accreditation through the Oregon Environmental Laboratory Accreditation Program. (b) Perform any required psilocybin sampling or testing for any licensed psilocybin manufacturer in which the laboratory licensee has a financial interest. (c) Engage in any activity that violates any provision of ORS chapter 475A, OAR chapter 333, division 64 as applicable, or these rules. (2) The Authority may suspend or revoke a laboratory license for any violation of ORS chapter 475A, OAR chapter 333, division 64, or these rules. The licensee has a right to a hearing under the procedures of ORS chapter 183. Statutory/Other Authority: ORS 475A.235, ORS 475A.594 Statutes/Other Implemented: ORS 475A.235, ORS 475A.594 333-333-6040 Dishonest Conduct (1) False Statements. A licensee or permittee may not make a false statement or representation to the Authority in order to induce or prevent action or investigation by the Authority. (2) Psilocybin Product Misrepresentations. A licensee or permittee may not misrepresent any psilocybin item to a consumer, licensee, or the public, including: (a) Misrepresenting the contents of a psilocybin product. (b) Misrepresenting the testing results of a psilocybin product. (c) Making representations or claims that the psilocybin product has curative or therapeutic effects. (3)A licensee may not produce, possess or supply adulterated psilocybin items. (4) Evidence. A licensee or permittee may not: (a) Destroy, damage, alter, remove or conceal potential evidence, or attempt to do so, or ask or encourage another person to do so. (b) Refuse to provide, or fail to promptly provide, an authorized Authority representative evidence when requested to do so. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-6100 Advertising Restrictions (1)Advertising for psilocybin products and services may not: (a) Contain statements that are deceptive, false, or misleading. Page 58 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (b) Contain any content that can reasonably be considered to target individuals under the age of 21, including but not limited to images of minors, cartoons, toys, or similar images and items typically marketed towards minors, or references to products that are commonly associated with minors or marketed by minors. (c) Encourage activity that is illegal under state law. (d)Assert that psilocybin products are safe because they are regulated by the Authority or have been tested by a certified laboratory or otherwise make claims that any government agency endorses or supports psilocybin. (e) Make claims that psilocybin products and services have curative or therapeutic effects or make other health claims that are not supported by the totality of publicly available scientific evidence (including evidence from studies conducted in a manner that is consistent with generally recognized scientific procedures and principles), and for which there is significant scientific agreement, among experts qualified by scientific training and experience to evaluate such claims. (2)A licensee may not make any deceptive, false, or misleading assertions or statements on any informational material, any sign, or any document provided to a consumer. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-6110 Advertising Media, Coupons, and Promotions (1)A licensee may not utilize television, radio, billboards,print media or internet advertising unless the licensee has reliable evidence that no more than 30 percent of the audience for the program,publication or Internet website in or on which the advertising is to air or appear is reasonably expected to be under the age of 21. (2)A licensee who advertises via webpage must make reasonable efforts to prevent individuals under 21 years of age from visiting the webpage. Statutory/Other Authority: ORS 475A.235 Statutes/Other Implemented: ORS 475A.23 5 333-333-6120 Removal of Objectionable and Non-Conforming Advertising (1)A licensee must remove any sign, display, or advertisement if the Authority determines it violates these rules. (2) The Authority will notify the licensee to identify any non-conforming advertising and provide a reasonable period for the licensee to remove any sign, display or advertisement that does not comply with these rules. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 333-333-6150 Inspections Page 59 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (1) The Authority may conduct: (a) An inspection of a licensed premises at any time to ensure that a licensee or permittee is in compliance with ORS 475A.210 to 475A.722. and these rules. (b) Compliance transactions in order to determine whether a licensee or permittee is complying with ORS 475A.210 to 475A.722.and these rules. (2) The Authority will provide reasonable notice when inspecting a licensed premises except when unannounced inspections are necessary to ensure compliance with ORS 475A.210 to 475A.722 or these rules. (3) A licensee, license representative, or permittee must cooperate with authorized Authority representative's reasonable requests during an inspection. (4)Authorized Authority representatives will not inspect client administration areas when administration sessions are taking place unless necessary to prevent a serious danger to public health or safety. (5) If a licensee, license representative or permittee fails to permit the Authority to conduct an inspection the Authority may issue an investigative subpoena to inspect the licensed premises and gather books,payrolls, accounts,papers, documents or records. Statutory/Other Authority: ORS 475A.235, ORS 475A.385 Statutes/Other Implemented: ORS 475A.235, ORS 475A.385 333-333-6200 Suspension, Cancellation, Civil Penalties, Sanction Schedule (1) The Authority may suspend or revoke: (a) A license issued under ORS chapter 475A for violation of a provision of ORS chapter 475A or these rules, in accordance with section (4) of this rule. (b)A permit issued under ORS 475A.480 for violation of a provision of ORS chapter 475A or these rules, in accordance with section (4) of this rule. (2) Civil Penalties. (a) The Authority may impose a civil penalty under ORS 475A.513, ORS 475A.618, or ORS 475A.654 for violation of a provision of ORS chapter 475A or these rules, in accordance with section(4) of this rule. (b) Failure to pay a civil penalty imposed by final order of the Authority is a violation. (3) The Authority uses the following violation categories for licensees licensed under ORS chapter 475A: (a) Category I Violations that pose the highest risk to public health and safety or make a licensee ineligible for a license. (b) Category II Violations that create a threat or substantial likelihood of a threat to public health or safety. (c) Category III Violations that create an increased risk to public health or safety. (d) Category IV Violations that are technical in nature and are inconsistent with the orderly regulation of the testing, sale or manufacture of psilocybin products and the provision of psilocybin services. (4)Violation sanctions. Page 60 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (a) The Authority may sanction a licensee or permittee in accordance with the guidelines set forth in Exhibit 1, incorporated by reference. (b) Exhibit 1 lists the proposed sanctions for single or repeat violations that occur within a two- year period for each category described in section (3) of this rule. The Authority may allege multiple violations in a single notice and may count violations alleged in notices issued within the previous two-year period toward the total number of violations. In calculating the total number of violations, the Authority may consider a proposed violation for which the Authority has not yet issued a final order. (c) The proposed sanctions in Exhibit 1 are guidelines. If the Authority finds one or more mitigating or aggravating circumstances, it may assess a lesser or greater sanction,up to and including revocation. Mitigating circumstances may decrease the sanction but will not result in dismissal of the violation. The Authority may decrease or increase a sanction to prevent inequity or to take account of particular circumstances in the case. (d) Mitigating circumstances include,but are not limited to: (A) Making a good faith effort to prevent a violation. (B) Extraordinary cooperation in the violation investigation demonstrating the licensee or permittee accepts responsibility. (e) Aggravating circumstances include, but are not limited to: (A) Receiving a prior warning about one or more compliance problems. (B)Repeated failure to comply with laws. (C) Efforts to conceal a violation. (D) Intentionally committing a violation. (E)A violation involving more than one client or employee. (F)A violation involving unwanted or inappropriate touching of a client. (G) A violation involving injury or death. (H) A violation involving the transfer of psilocybin products to anyone other than a client during an administration session. (I)A violation that resulted in a monetary benefit for the licensee or conduct that intended to create a monetary benefit for the licensee. (J) Three or more violations within a two-year-period,regardless of the category, where the number of violations indicate a disregard for the law or failure to control the licensed premises. (5)A licensee may not avoid the sanction for a violation or the application of the provision for successive violations by changing their corporate structure for example,by adding or dropping a partner or converting to another form of legal entity when the individuals who own, operate, or control the licensed entity are substantially similar. Statutory/Other Authority: ORS 475A.235, ORS 475A.420, ORS 475A.425 Statutes/Other Implemented: ORS 475A.235, ORS 475A.420, ORS 475A.425 333-333-6210 Licensee Responsibility (1)A licensee is responsible for: (a) The violation of any of these rules and any provision of ORS 475A.210 to 475A.722. Page 61 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (b)Any act or omission of a license representative in violation of these rules or of ORS 475A.210 to 475A.722. (2) If a facilitator is a license representative of a service center, a service center shall be responsible for any violation of these rules or ORS 475A.210 to 475A.722 that occurs on the service center's licensed premises. (3) If a facilitator is not a license representative of a service center, a service center shall be responsible for any violations of these rules or ORS 475A.210 to 475A.722 if: (a) The violation occurs on the licensed premises; and (b) The service center fails to take reasonable steps to prevent the violation. (4) Sections (1), (2) and(3) of this rule apply to every individual and legal entity identified as a licensee on a license issued by the Authority. (5)Violation of any of these rules or any provision of ORS 475A.210 to 475A.722 shall be attributed to every individual and legal entity identified as a licensee on a license issued by the Authority for the purpose of considering the individual or legal entities record of compliance under 475A.250(2)(h). Statutory/Other Authority: ORS 475A.235, ORS 475A.420 Statutes/Other Implemented: ORS 475A.235, ORS 475A.420 333-333-6220 Suspended Licenses: Posting of Suspension Notice Sign, Activities Allowed During Suspension (1) Before 6:00 AM on the date a license suspension goes into effect, and until the suspension is completed, Authority staff must ensure that a suspension notice sign is posted on each outside entrance or door to the licensed premises of a service center, manufacturer or laboratory. (2) The suspension notice sign must be posted in a way that allows any person entering the licensed premises to read it. Licensees must use the suspension notice sign provided by the Authority. The sign will state that the license has been suspended by order of the Authority. If there are multiple licenses at the location, the sign will specify which license privileges have been suspended. (3) During the period of license suspension, the licensee is responsible for ensuring: (a) Compliance with all applicable laws and rules. (b) That the suspension notice sign is not removed, altered, or covered. (4)A service center licensee or license representative may not allow sale, delivery to or from, or receipt of psilocybin products at the licensed premises, or provision of psilocybin services at licensed premises, during the period that the license is under suspension, except as otherwise permitted by the Authority in the order of suspension. During the period that the license is under suspension, a licensee may operate the licensed entity only in compliance with this rule. (5)A manufacturer licensee or license representative may not allow sale, delivery to or from, or receipt of psilocybin products at the licensed premises, harvesting or drying of fungi,processing of psilocybin product during the period that the license is under suspension, except as otherwise permitted by the Authority in the order of suspension. During the period that a license is suspended, a licensee may operate the licensed entity only in compliance with this rule. Page 62 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (6)A facilitator licensee may not provide psilocybin services during the period that the license is under suspension, except as otherwise permitted by the Authority in the order of suspension. (7)A laboratory licensee or license representative may not allow delivery to or from, or receipt of psilocybin products at the licensed premises or testing of psilocybin products during the period that the license is under suspension, except as otherwise permitted by the Authority in the order of suspension. During the period that the license is under suspension, a licensee may operate the licensed entity only in compliance with this rule. (8)A permittee may not perform any of the activities described in OAR 333-333-4700 during the period that their worker permit is under suspension, except as otherwise permitted by the Authority in the order of suspension. Statutory/Other Authority: ORS 475A.235, ORS 475A.420 Statutes/Other Implemented: ORS 475A.235, ORS 475A.420 333-333-8000 Waste Management (1)A manufacturer, service center or laboratory licensee must: (a) Store, manage and dispose of solid and liquid wastes generated during production and processing of psilocybin products in accordance with applicable state and local laws and regulations which may include but are not limited to: (A) Solid waste requirements in ORS chapter 459 and OAR chapter 340, divisions 93 to 96. (B)Hazardous waste requirements in ORS chapter 466 and OAR chapter 340, divisions 100 to 106. (C)Wastewater requirements in ORS chapter 468B and OAR chapter 340, divisions 41 to 42, 44 to 45, 53, 55 and 73. (b) Store psilocybin waste in a locked waste receptacle or limited access area in the possession of and under the control of the licensee. (2) If a licensee generates the waste after a harvest or process lot has been recorded, or if the waste was previously designated as a finished psilocybin product, the licensee must document: (a)A reason for the waste in the psilocybin tracking system. (b) The exact time and method of destruction in the psilocybin tracking system. (3) In addition to the requirements of sections (1) and(2) of this rule, waste items consisting of psilocybin products must be rendered unfit for consumption and disposed of on the licensed premises or transferred to another licensee for disposal. Psilocybin products may be rendered unusable by composting, mixing with inactive ingredients, or any other method which renders the product unfit for consumption but does not pose a safety risk for accidental consumption. (4) All psilocybin waste must be disposed of in a manner that effectively prevents spontaneous growth of fruiting bodies or mycelium containing psilocybin. (5) Material that has been designated as waste must be disposed of pursuant to this rule and may not be used in the production of psilocybin products. Statutory/Other Authority: ORS 475A.23 5 Statutes/Other Implemented: ORS 475A.235 Page 63 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. 333-333-8100 Product Transportation (1) Psilocybin products transferred by licensees. (a) Psilocybin products transferred between licensed premises may only be transported by a licensee or license representative of the originating or receiving licensee. (b) Samples of psilocybin products obtained by a laboratory licensee pursuant to OAR 333-333- 7100 may only be transported by the laboratory licensee or a laboratory license representative of the receiving laboratory. (c) Every manufacturer, service center and laboratory licensee must maintain a list of license representatives authorized to transport product or travel in vehicles transporting product. (d) Psilocybin products transferred between licensed premises must not exceed possession quantities described in OAR 333-333-2200. (2) Physical transport requirements for licensees. (a) A license representative of a manufacturer, service center or laboratory license who transports psilocybin products on behalf of a licensee must have a valid driver license. (b)A manufacturer, service center or laboratory licensee must: (A) Store psilocybin products in the delivery vehicle within a locked, secured area, shielded from view from the exterior of the vehicle. (B)When transporting perishable psilocybin products,provide appropriate temperature control within the delivery vehicle. (C)Use a delivery vehicle that is equipped with an alarm system and is insured at or above the legal requirements in Oregon. (D) Deliver psilocybin products to all destinations and return any remaining psilocybin products to the licensed premises of origin within 60 hours of initial departure and notify the Authority immediately in the manner prescribed by the Authority if they are unable to satisfy this requirement due to inclement weather, mechanical failure, or other unforeseen circumstances. (E)Document all overnight stops in the planned route of the manifest and include the address, estimated arrival time at, and estimated departure time from the location of each overnight stop. (F)Package all psilocybin products for transport in shipping receptacles and assign and affix a unique identification number to all receptacles containing psilocybin products as required by these rules. (G) Provide a copy of the manifest to each location receiving the inventory described on the manifest but may prepare a separate psilocybin tracking system manifest for each receiving location in order to maintain transaction confidentiality. (H) Contact the Authority as soon as possible under the circumstances and in the form and manner prescribed by the Authority, if a vehicle transporting psilocybin products is involved in any accident or other situation involving product loss. (I) Travel directly from the originating location to the destination location described in the manifest route. (J)Notify the Authority in advance of every stop at an unlicensed location that exceeds two hours in duration and is not already listed in the manifest route. Page 64 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (K)Upon the Authority's request, make the vehicle and its contents available for inspection if the delivery vehicle is stopped at an unlicensed location. (c) A licensee may not: (A) Make any unnecessary stops in between the originating and destination locations except to other licensed premises receiving inventory as described on the manifest; (B)Remove psilocybin products from the vehicle until they arrive at the destination recorded in the manifest. Licensees or laboratory licensees may not transfer psilocybin products to, nor store psilocybin products in or at any unlicensed premises; (C)Void or change a manifest after departing the originating licensed premises; or (D) Travel with any persons not listed on the manifest. (d)Any vehicle that meets the requirements of this rule may be used as a delivery vehicle. (3) Psilocybin tracking system manifest requirements. (a) Prior to removing a psilocybin product from the originating licensed premises for the purposes of transport or delivery, the originating licensee must use the psilocybin tracking system to generate a printed transport manifest containing the following information: (A) The originating location's license number and address as it appears in the psilocybin tracking system. (B) The destination location's license number and address as it appears in the psilocybin tracking system. (C) The unique identification number, product name, and quantity of each psilocybin product. (D) The actual date and estimated time of departure. (E) Location and duration of time for any overnight stop. (F) The arrival date and estimated time of arrival or completion of delivery. (G) The delivery vehicle make, model, and license plate number. (H) The name, contact information,worker permit number and signature of any license representatives accompanying the transport. (b)A physical, printed copy of the generated manifest must accompany every transport of psilocybin products. (4) Psilocybin tracking system requirements when receiving psilocybin products. Upon receipt of a delivery of psylocibin products, the receiving licensee must: (a) Record each applicable unique identification number as accepted and received or rejected in the psilocybin tracking system as applicable. (b)Verify the psilocybin products received are as described on the manifest and record receipt of the psilocybin products in the psilocybin tracking system if accepted. (c) Separately and for each unique identification number document any differences between the quantities specified on the manifest and the quantities received in the psilocybin tracking system. Statutory/Other Authority: ORS 475A.235, ORS 475A.400 Statutes/Other Implemented: ORS 475A.235, ORS 475A.400 333-333-8200 Product Tracking—General Requirements (1)A service center, manufacturer or laboratory licensee must: Page 65 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (a)Use the psilocybin tracking system as an inventory and recording keeping system. (b) Have a psilocybin tracking system account activated and functional within five business days of being licensed. (c) Maintain an active psilocybin tracking system account while licensed. (2) Each service center, manufacturer and laboratory licensee must have at least one licensee who is a psilocybin tracking system administrator. A licensee may authorize additional licensees or license representatives to obtain psilocybin tracking system administrator accounts. (3) In order to obtain a psilocybin tracking system administrator account, a license holder must attend and successfully complete all required psilocybin tracking system training, except as provided in section(4) of this rule. The Authority may also require additional ongoing, continuing education for individual administrators to retain his or her psilocybin tracking system administrator account. (4) A service center, manufacturer or laboratory licensee may designate license representatives as psilocybin tracking system users. A designated user must be trained by a psilocybin tracking system administrator in the proper use of the psilocybin tracking system. Notwithstanding section(3) of this rule, a licensee may designate a license representative to attend and successfully complete required psilocybin tracking system training so long as both the licensee and the designated representative obtain psilocybin tracking system administrator accounts. (5) Each service center, manufacturer and laboratory licensee must: (a) Maintain an accurate and complete list of all psilocybin tracking system administrators and psilocybin tracking system users for each licensed premises and must update the list when a new psilocybin tracking system user is trained. (b) Train and authorize any new psilocybin tracking system users before those users are permitted to access the psilocybin tracking system or input, modify, or delete any information in the psilocybin tracking system. (c) Cancel any psilocybin tracking system administrator or user from an associated psilocybin tracking system account if that individual is no longer a license representative. (d) Correct any data that is entered into the psilocybin tracking system in error. (6) Each service center, manufacturer and laboratory licensee is accountable for all actions license representatives take while logged into the psilocybin tracking system or while otherwise conducting inventory tracking activities. (7)Nothing in this rule prohibits a service center, manufacturer or laboratory licensee from using secondary separate software applications to collect information to be used in its operation including secondary inventory tracking or point of sale systems. If a licensee uses a separate software application that links to the psilocybin tracking system, it must get approval from the psilocybin tracking system vendor contracting with the Authority and the software application must: (a) Accurately transfer all relevant psilocybin tracking system data to and from the psilocybin tracking system for the purposes of reconciliation with any secondary systems. (b) Preserve original psilocybin tracking system data when it is transferred to and from a secondary application. Page 66 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (8) If at any point a service center, manufacturer or laboratory licensee loses access to the psilocybin tracking system for any reason, the licensee must keep and maintain comprehensive records detailing all tracking inventory activities that were conducted during the loss of access. (a) Once access is restored, all inventory tracking activities that occurred during the loss of access must be entered into the psilocybin tracking system. (b)A licensee must document when access to the system was lost and when it was restored. (c) A licensee may not transport any psilocybin product to another licensed premises until such time as access is restored and all information is recorded into the psilocybin tracking system unless the Authority has provided written authorization to do so. Statutory/Other Authority: ORS 475A.235, ORS 475A.400 Statutes/Other Implemented: ORS 475A.235, ORS 475A.400 333-333-8210 Product Tracking-Reconciliation of Inventory (1) Each service center, manufacturer and laboratory licensee must: (a)Use the psilocybin tracking system for all inventory tracking activities, as required by these rules. (b) By 11:59 AM local time of the next calendar day, reconcile all psilocybin product inventory in the psilocybin tracking system to reflect the prior day's activity. (c) For psilocybin products that have completed potency testing, use the psilocybin tracking system to record the total amount of psilocybin analyte contained in psilocybin products by weight, measured in milligrams. (2) The requirements of subsection(1)(b) of this rule do not apply to psilocybin spores or mycelium that are in a preproduction process at a manufacturer's licensed premises. (3) The requirements of subsection(1)(b) of this rule do not apply, during the first 15 days following the harvest of fruiting bodies or mycelium, daily reconciliation by a manufacturer of the weight of moisture lost to evaporation is not required. The weight of moisture loss must be reconciled by a manufacturer prior to transferring, processing, selling, or packaging the fungi and no later than 15 days after the harvest,whichever comes first. (4) The requirements in subsection (1)(b) of this rule do not apply during the first fourteen calendar days of licensure for a service center, manufacturer or laboratory licensee so long as the licensee, has ordered unique identification tags and unique identification tags are in transit to the receiving party. (5) The requirements in subsection(1)(b) of this rule do not apply to psilocybin products held by a laboratory licensee that are undergoing analytical testing required by these rules so long as the psilocybin products do not leave the laboratory's licensed premises and are reconciled on the same day that the analytical testing concludes. (6) In addition to the requirements in section(1) of this rule, service centers must record each sale or transfer of a psilocybin product to a client as a sales transaction and record the price before tax and amount of each item sold and the date of each transaction in the psilocybin tracking system for each individual transaction. Page 67 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (7) Information that is not required to be recorded and reconciled daily pursuant to section(4) of this rule must be recorded and reconciled within three calendar days of the service center, manufacturer or laboratory licensee's receipt of unique identification tags. Statutory/Other Authority: ORS 475A.235, ORS 475A.400 Statutes/Other Implemented: ORS 475A.235, ORS 475A.400 333-333-8220 Product Tracking-Unique Identification Numbers (1)A service center, manufacturer or laboratory license must: (a)Use unique identification tags issued by an Authority-approved vendor that is authorized to provide unique identification tags for the psilocybin tracking system. Each licensee is responsible for the cost of all unique identification tags and any associated vendor fees. (b) Have an adequate supply of unique identification tags at all times, except during the first 14 calendar days of licensure so long as unique identification tags have been ordered and are in transit to the licensed premises. (c)Assign and affix a unique identification tag to each separated area containing a cultivation batch of mycelium or fruiting bodies as described in OAR 333-333-8230. (d)After harvest, assign and affix a unique identification tag to all psilocybin products or receptacles containing psilocybin products. (e)Assign and affix unique identification tags in a manner that: (A) Establishes an accurate record of cultivation, harvest and drying of fungi, including documentation of harvest lots and batches as described in OAR 333-333-2020 and OAR 333- 333-7090. (B) Establishes an accurate record when one psilocybin product is converted to another product type. (C)Uses a new unique identification tag each time a psilocybin product is added to a quantity of psilocybin products grouped together under a pre-existing unique identification tag. (f)Place tags in a position that can be clearly read by an individual standing next to the item. (g) Keep tags free from dirt and debris. (2) To allow for a drying period, the requirements of subsection (1)(e) of this rule do not apply to harvested mycelium or fruiting bodies in the first 15 days after harvest. (3) The requirements of section(1) of this rule do not apply to psilocybin spores or mycelium that are in a preproduction process at a manufacturer's licensed premises. (4)A manufacturer licensee may not combine psilocybin products of different size,potency, or type under a single unique identification tag, except for: (a) Mixed lots of homogenized fungi. (b) Psilocybin extracts that will undergo further processing. Statutory/Other Authority: ORS 475A.235, ORS 475A.400 Statutes/Other Implemented: ORS 475A.235, ORS 475A.400 333-333-8230 Product Tracking—Cultivation Batches Page 68 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. (1) Within 72 hours of beginning a production process, a manufacturer must create a cultivation batch that will contain all fruiting bodies and mycelium produced by that production process. (2)A manufacturer must assign each cultivation batch a unique user-generated sequential batch name and record the batch name and location in the psilocybin tracking system (3) Batch names and unique identification tags must be physically affixed to the cultivation batch or the separated area where the cultivation batch is physically located as required by OAR 333- 333-8220. (4)A manufacturer may have an unlimited number of cultivation batches at any one time. Statutory/Other Authority: ORS 475A.235, ORS 475A.400 Statutes/Other Implemented: ORS 475A.235, ORS 475A.400 333-333-8240 Product Tracking—Inventory Audits (1) The Authority may perform a physical audit of the inventory of any service center, manufacturer or laboratory licensee at the agency's discretion and with reasonable notice to the licensee. (2)A variance between the physical audit and the inventory reflected in the psilocybin tracking system at the time of the audit, which cannot be attributed to normal moisture variation in psilocybin products, is a violation. Statutory/Other Authority: ORS 475A.235, ORS 475A.400 Statutes/Other Implemented: ORS 475A.235, ORS 475A.400 333-333-8250 Product Tracking-User Requirements (1)A service center, manufacturer or laboratory licensee and any designated psilocybin tracking system administrator or user shall enter data into the psilocybin tracking system that fully and transparently accounts for all inventory tracking activities. (2)A service center, manufacturer or laboratory licensee is responsible for the accuracy of all information entered into the psilocybin tracking system. (3)An individual entering data into the psilocybin tracking system may only use their own individual psilocybin tracking system account. (4) Each psilocybin tracking system administrator and psilocybin tracking system user must have a unique log-on and password, which may not be used by any other person. (5) Every psilocybin tracking system user and administrator must hold a valid worker permit as required by ORS 475A.480. Statutory/Other Authority: ORS 475A.235, ORS 475A.400 Statutes/Other Implemented: ORS 475A.235, ORS 475A.400 333-333-8260 Product Tracking- System Notifications A service center, manufacturer or laboratory licensee must monitor all compliance notifications from the psilocybin tracking system and resolve the issues detailed in the compliance notification Page 69 of 70 NOTE:The text in OAR 333-333-1010 tracks changes made to the Definitions rule adopted in May 2022. The new text in this rule is underlined. Changes are not tracked for the remaining rules because all of the text is new. in a timely fashion. A licensee may not dismiss a compliance notification in the psilocybin tracking system until the licensee resolves the compliance issues detailed in the notification. Statutory/Other Authority: ORS 475A.235, ORS 475A.400 Statutes/Other Implemented: ORS 475A.235, ORS 475A.400 Page 70 of 70 12.1 O., COUNCIL REPORT o ORE00� Subject: Street Maintenance Fee for Additional Pathway Projects Meeting Date: November 15, 2022 Staff Member: Madison Thesing, Asst. to the City Manager, Report Date: November 4, 2022 Erica Rooney, Public Works Director Shawn Cross, Finance Director Department: Public Works Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑X Council Direction ❑ Consent Agenda Staff Recommendation: Direct staff to incorporate the proposed increase of the Street Maintenance Fee, to raise approximately $1.5 million annually, into the 2023 Master Fees and Charges Resolution for consideration and adoption at the December 6, 2022 City Council meeting. Recommended Language for Motion: Move to direct staff to include a proposed increase in the Street Maintenance Fee in the 2023 Master Fees and Charges Resolution, scheduled for a Public Hearing at the City Council Meeting on December 6, 2022. Project/ Issue Relates To: 2022 City Council Goal to increase funding options for pathway improvements Issue before Council (Highlight Policy Question): ❑X Council Goals/Priorities ❑Adopted Master Plan(s) ❑Not Applicable Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 ISSUE BEFORE COUNCIL Following this report on public outreach conducted, whether to direct staff to include an increase in the Street Maintenance Fee by approximately 50% in order to increase the income to the Street Fund, allowing for additional funding towards projects that improve pedestrian safety, such as pathways and sidewalks. EXECUTIVE SUMMARY The Council goals over the past several years have continued to focus on funding more pathway projects. After several study sessions on the matter, staff was directed to pursue an approximately 50% increase in the Street Maintenance Fee as a way to improve the overall Street Fund by nearly$1.5 million each year, allowing for additional funding to be available for pathway projects. Since the last study session in May 2022, staff conducted a thorough outreach effort to inform the public of this pending proposal. The public education and outreach campaign included general information of the proposed changes in the HelloLO, LO Down e-newsletter, utility bills, and more. There was also targeted outreach to the largest business utility accounts and business groups. This resulted in less than 25 calls and emails from the public. Of the 25 follow- up calls and emails, roughly half were related to concerns about inflation and the timing of raising rates. The other half were clarification questions, support for the projects that would be as a result of the additional funding, and general questions about street maintenance. Given the wide reach of the campaign and the limited response of concern, the proposed rate appears acceptable to the public. BACKGROUND For the past two years, the Council has clearly indicated that providing more pathways or sidewalks is a priority for the City. Particularly, the focus is on routes related or adjacent to school areas. 2020 City Council Goal: Continue focus on pavement quality and pathways... 2021 City Council Goal: Increase funding for pedestrian facilities, beginning with safe routes to school 2022 City Council Goal: Adopt a funding strategy for pedestrian safety capital projects The Council held study session in September 2021 and May 2022, evaluating several options to consider for increase funding. During the May 2022 meeting, Council by consensus indicated that staff should continue with steps that would lead toward Council consideration of increasing the Street Maintenance Fee (SMF) as the best option for creating an increased source of funding for pathway infrastructure improvements as a sustainable, ongoing revenue source. This funding alternative was instead of pursuing a General Obligation Bond, which would have increased property taxes. At that meeting, staff advised that a public outreach effort to educate the community of the proposed changes would be undertaken. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 DISCUSSION The proposed approximate 50% increase in monthly rates would create an additional $1.5 million per year for the Street Fund to be used for projects like pathways, sidewalks, and pedestrian safety improvements. The rates would be as noted in the following table: Proposed Street Maintenance Fee Increases Proposed Rate based on Proposed Rate Proposed Construction Increase per July 1,2021 July 1,2022 Rates during Cost Index Month over Category Rate Rate Outreach Actuals 2022 Rate Single Family 9.95 10.65 16.30 16.07 5.42 Multi-Family 7.11 7.61 11.60 11.48 3.87 Non-Residential Group I Group II 6.08 6.51 10.00 9.82 3.31 Group III 13.69 14.65 22.30 22.11 7.46 *per 1,000 sq.ft 51.12 54.70 83.30 82.55 27.85 The proposed rates during outreach were based on estimates of how to achieve the additional $1.5 million. For the final proposed rates, staff has calculated rates based on the Engineering News Record Construction Cost Index (CCI) for 20-City Average. The Council's consideration of proposing an increase to the Street Maintenance Fee has been shared with the public through a variety of outreach efforts, which has run from September through November. The objectives and goals of the SMF public outreach were: • Inform and educate Lake Oswego residents and business owners of the proposed SMF increase • Explain the need for the proposed SMF rate increase (more than $94,000,000 in unfunded Pathways Projects) • Clearly outline the benefits for the proposed rate increase and the types of projects that could be funded through the SMF increase • Highlight the benefits of pedestrian safety improvements for accessible and safe roadways for all • Monitor community response Staff created a project website communicating these changes, proposed project types that the SMF could be directed to, and frequently asked questions. The project page was treated as the landing page for all messages, highlight videos of information, and who to contact for more information. This webpage and its subpages have been viewed 1,807 times. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 Additionally, information has been shared through: • HelloLO—September (two-page insert, Council Corner- Rapf) & October (half-page article), mailed monthly to roughly 23,000 households and businesses • LO Down —featured in three e-newsletters, roughly 14,000 subscribers • Social Media — posting throughout the last two months, boosted for additional views (greatest Facebook post reach was 4,957) • NextDoor— posting throughout the last two months • YouTube videos—four informational videos (also shared on social media, NextDoor, and website) • Utility Billing—October e-bill, reaching roughly 13,000 accounts • Lake Oswego Review Article (9/26/22) • Lake Oswego School District e-newsletter (The Current)— included on 11/4/22 & 11/11/22 editions Business outreach specifically: • Chamber Board Presentation • Lake Grove Business Association Presentation • Direct letter mailed to top 200 business utility accounts o These business bills range from $31 to $18,000 per month, representing a wide range of large and small businesses in the community • Direct phone calls to the top 10 business utility accounts • Chamber e-newsletter—included 11/8/22, & 11/15/22 Through these outreach efforts and the follow up 25 calls and emails that were received, the overall response was neutral. The concerns raised were related to inflation and the timing of raising rates. For next steps of the public education, if Council votes to approve the rate increase in the 2023 Master Fees and Charges Resolution, staff recommends continuing the messaging of the change in the spring in advance for the rate change going into effect July 1. Additionally, as projects funded by the Street Maintenance Fee are underway, project sites will have signage highlighting that the project is funded by the Street Maintenance Fee. This will increase transparency on how dollars are being spent, as well as draw awareness to the projects completed by these funds. FISCAL IMPACT An increase in the Street Maintenance Fee as proposed will increase the overall Street Fund by approximately$1.5 million per year. Proposed rates would go into effect beginning July 1, 2023. RECOMMENDATION Direct staff to include an increase of the Street Maintenance Fee by approximately 50%within the 2023 Master Fees and Charges Resolution for consideration and adoption at the December 6, 2022 City Council meeting. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY 12.2 O. COUNCIL REPORT 0 OREOO� Subject: 2023 Master Fees and Charges Meeting Date: November 15, 2022 Staff Member: Shawn Cross, Director Report Date: November 1, 2022 Department: Finance Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑X Council Direction ❑ Consent Agenda Staff Recommendation: No changes to the draft 2023 Master Fees and Charges booklet Recommended Language for Motion: N/A Project/ Issue Relates To: 2023 Master Fees and Charges Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable ISSUE BEFORE COUNCIL 2023 Master Fees and Charges Study Session EXECUTIVE SUMMARY Provide direction to staff in preparing material for a public hearing and adoption of fees and charges at the December 6, 2022 council meeting. BACKGROUND For the benefit of the public as well as efficiency in administration, Lake Oswego maintains a compilation of all fees charged by the city for a variety of services, such as utility services, usage Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 of fields and recreational classes, and building permits and plan inspections, to name a few. It is published in a user-friendly booklet (available online), and the fees themselves are reviewed by the city council and adopted by council resolution each fall for the following calendar year. All fees go into effect on January 1, 2023 with the new calendar year, except for the utilities. Those new fees for services go into effect as of July 1, 2023, the first day of the new fiscal year. This provides staff sufficient time for public education and customer notification. Increases in utility service fees often generate the most interest and discussion. Table 1: Fee Increase Average% The Master Fees & Charges booklet (see for a Typical Month hangs Increase Attachment 1) begins, therefore, with Water $1.25 2.0 utility fees. Pages 5 and 6 in the Master Sewer 3.22 3.9 Fees & Charges booklet present key Stormwater 1.41 7.0 information for all utilities in one snapshot, Street Maintenance 5.59 50.9 including the monthly total fee increase a typical customer is likely to experience. Total $11.47 _ 6.5 The city uses ten CCF of water and eight CCF for sewer when calculating a typical customer. 1 CCF is 100 cubic feet or 748 gallons. The actual consumption can vary greatly from customer to customer. Many fees charged by the city are set to recover either all or part of the costs to provide the service, to remain affordable, and to be competitive with similar services in the city or neighboring jurisdictions. Every year departments review their fees and modify them where deemed necessary, and often modify them by a cost index. Staff researched several cost indices on the Bureau of Labor Statistics (BLS) website. Portland falls under the West Region B/C index (The Western Region CPI is broken down between group A and B/C: cities with populations of greater than 2.5 million (A) or those with less (B/C). The indices are shown below as a rolling one-year index from June 2021 to June 2022. For construction cost index (CCI), the private Engineering News-Record indices are from October 2021 to October 2022: Table 2: Indices 12-month Change West Region CPI (all items) 8.8% West Region—A CPI (all items) 8.9% West Region—B/C CPI (all items) 8.5% West Region CPI (all items less energy and food increases) 6.2% Energy prices 36.6% Engineering News-Record Construction Cost Index—20 city average (CCI) 5.7% Engineering News-Record Construction Cost Index for Seattle (CCI-Seattle) 12.0% Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 Staff reported the indices last year, and they were comparable in the same order at 5.1%, 4.4%, 6.0%, 4.1%, 25.1%, 8.0%, and 6.2%, respectively. The Energy Prices Index is the largest change and has increased largely due to the higher prices for gasoline. When reviewing fees, several departments take guidance from the above indices or some variation thereof. Water and sewer connection charges are proposed to change with the CCI, as is the street maintenance fee, and all system development charges. Prior councils established this policy and the attached Master Fees & Charges booklet reflects those changes. The following discussion will highlight the major changes in each section of the booklet, but is not intended to be a complete list. Instead, the Master Fees & Charges booklet is presented in a 'track-changes' format so that all changes can easily be identified by the reader. DISCUSSION Utilities In the utilities, capital projects' are usually the main cost driver and the reason for needed fee increases. These fees can be used to pay for smaller capital projects and to pay the debt service payments on the larger capital projects over time. Water: The LO-Tigard Water Partnership project construction phase has been complete for a few years and Tigard's portion of the assets were transferred at the end of the 2018 fiscal year. Funding for the project was provided primarily through a bond issue for$77 million completed in September 2013. The annual debt service payments on these bonds are roughly$5.8 million. The water utility is scheduled to increase fees by two percent this coming fiscal year, similar to the previous five years, to build its ability to pay for operations and for this ongoing debt service. For an average water usage month, this will add a little over$1 to a typical monthly bill for water (see Table 1 above). Sewer: The City updated its sewer rate model to incorporate the latest cost estimates from Portland for the Tryon Creek Wastewater Treatment Plant upgrades. These projections were presented to council in July 2020 by FCS group. The model called for annual increases to the sewer rates of 3.9%for the next 15 years. This will add a little over$3 per month to a typical Lake Oswego homeowner bill. Stormwater: With continued needs for the stormwater utility, it is recommended to have the same seven percent increase similar to the past years as outlined with the 2009 Clean Streams Plan due to the amount of unfunded capital projects.2 Street Maintenance:The Pavement Condition Index is lower than desired. Existing policy calls for an annual fee increase in the amount of the CCI (see Table 2 above), which is currently 5.7%. 1 Street maintenance projects are considered to be capital projects because they are designed to extend the life of pavement. 2 Clean Streams Plan,Option 5 Full Clean Streams Program,pg. 128;Resolution 09-68. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 Council also gave direction to increase the Street Maintenance Fee to incorporate an additional $1.5 million for annual pathway funding. This increase equates to an additional 45.2%. The total proposed fee increase is 50.9% or an additional $5.59 per month for a typical home owner in Lake Oswego. All proposed increases have been evenly applied to fixed and to variable portions of each fee. It is the goal to structure the fixed and variable portion of a customer fee to align with the utility's fixed and variable cost structure. The one caveat to this is adding a conservation element to the rates. The cost and fee structure are lining up closely enough to provide a stable revenue stream to cover fixed costs. Building Community Development Code enforcement charges are usually increased by the most recent West Region CPI (B/C size class). This year the CPI is 8.5%. Staff is suggesting we cap the rate increase to 6%. This keeps the 10-year average to less than 3% per year Planning The Planning Department similarly adjusts the majority of its fees by the most recent West Region CPI (B/C size class). Similar to the code enforcement charges, staff is suggesting we increase rates by 6%, not the CPI of 8.5%. System Development Charges Per established policy, system development charges (SDCs) are increased annually by the percentage growth in the CCI. These fees are used for various capacity building parks and utility capital projects. CONCLUSION A public hearing is scheduled for December 6, 2022, as part of the City Council's review and adoption of fee changes. Major changes in assumptions in any of the utilities as a result of the study session may lead to a modification of rate models and would have to be revisited at a later time. ATTACHMENTS 1. Master Fees & Charges draft booklet with track changes 2. Clean draft version of Master Fees & Charges without markups Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 Preface City of Lake Oswego, Oregon The City provides a full range of municipal services to the community which includes police and fire protection, emergency medical services,traffic control, street maintenance and improvements,water,sewer, and stormwater management services, planning and zoning regulation, building inspection and regulation, parks and recreational activities, and community library service. This Master Fees and Charges booklet consolidates all City fees and charges, adopted by City Council resolution,for the various services that the City provides. Typically, it is updated annually and reflects all fee resolutions passed by Council during the year. For easy reference,the current Master Fees and Charges booklet, as well as versions from prior years, are available online at: www.lakeoswego.citv/fees. Fee Variance and Waiver Statement Based upon an unusual circumstance or event, past practices, demonstrated hardship, or public benefit,the City Manager is authorized to waive or decrease a fee(s) or charge(s), barring requirements by State or local codes, in a particular matter or establish a fee not yet authorized in this resolution. When a new fee is established by the City Manager it may be incorporated into this resolution. It shall be communicated to Council in writing to allow opportunity for comment. The request for a waiver or reduction must be in writing. If the City Manager or his designee agrees to said waiver or reduction, he/she may inform the City Council, in writing, of the request and his/her decision, except in minor matters such as non-profit signed fee waivers and City tree removal applications. Effective Dates and Resolution The 2023 Master Fees and Charges effective dates: • Utility Fees are effective July 1, 2023. • All other Fees are effective January 1, 2023 (unless otherwise noted) Resolution#22-26 29 — Adopting the 2023 Master Fees&Charges Cover photo of Sunset at Luscher Farm is courtesy of Coring Laws—the first place winner of the 2020 Lake Oswego photo contest in the category Places in Lake Oswego 2023 Master Fees and Charges Page 1 Table of Contents Section 1: General 5 Utility Rates: Water, Sewer, Stormwater, and Street 5 Business License and Liquor License 16 Dog License 17 Rights of Way Usage Fee 18 Franchise Fees 18 Public Records Fees 19 Miscellaneous Fees 20 Section 2: City Attorney's Office 21 Discovery Fees and City Code 21 Section 3: Fire Department 22 General Fees 24 Medical Services and Transport Fees 22 Emergency Services Rates 23 Fire and Life Safety Plan Reviews 23 Fire and Life Safety Inspections 23 Section 4: Library 24 General Fees 24 Section 5: Municipal Court 25 General Fees 25 Section 6: Parks& Recreation 26 Recreation Services and Activities 26 Indoor Tennis Center 26 Athletic Field User Charges 27 Adult Community Center Fees 29 Swim Park 30 Water Sports Center 30 Park Shelter Fees 31 Miscellaneous Fees 31 Commercial Filming in City Parks 32 Page 2 2023 Master Fees and Charges Table of Contents, continued Section 7: Police Department 33 Security Alarm Permit and Fees 33 Security Alarm Code Violation Fines 33 Police Reports 33 Miscellaneous Police Fees 33 Section 8: Public Works Support Services 34 General Fees 34 Section 9: Building Division 35 Building Permits 35 Electrical Permits 36 Mechanical Permits Residential 38 Mechanical Permits Commercial 39 Plumbing Permits 40 Grading and Fill Permits 41 Demo and Deconstruction Permits 41 Manufactured Home Permits 42 Manufactured Dwelling/RV Parks 42 Community Development Code Enforcement Charges 42 Record Retention and Archiving Fees 42 Research and Consultation Fees 42 Other Inspections and Fees 43 Additional Miscellaneous Fees 43 Refunds 43 Section 10: Engineering Division 44 Minor Utility Facilities, Installed or Constructed by Public or Private Entities 44 General Engineering Fees 44 Other Engineering Fees 45 Section 11: Planning Division 47 Ministerial Developments 47 Minor Developments 47 Sign Code Fees 48 2023 Master Fees and Charges Page 3 Table of Contents, continued Comprehensive Plan and Community Development Code Amendments 48 Major Developments 49 Sensitive Lands Overlay Districts 49 Fees Relating to Historical Preservation 49 Appeals 49 Pre-Application Conference/Consultations 49 Research Fees 50 Tree Code Fees 50 Fee Exemptions for Affordable Housing 51 Other Planning Fees 51 Section 12: Systems Development Charges 53 Systems Development Charges 53 APPENDIX Systems Development Charges Methodologies 59 2023 Master Fees and Charges Resolution 69 Page 4 2023 Master Fees and Charges Section 1: General General Utility Rates: Water, Sewer, Stormwater, and Street (LOC 37 and 38) Water and sewer charges for customers outside of the City may be set by specific agreement. For customers outside the City(including Forest Highlands Water District), but not covered by a special agreement,the charge is 150%of standard "in-City" rates. For bulk water users,the City Manager may set"peak"season rates. (LOC 38.04.015) The utility user charge shall be due and payable on the date specified on the bill,and shall be delinquent thereafter.A late charge shall be imposed on delinquent utility user charges in addition to the amount billed. (LOC 38.06.030) A late charge of$5 may be assessed for utility bills not paid within 30 days after billing. If the utility bill is$200 or more,the late charge is 2.5%of the total amount due.The late charge is divided proportionately among the amounts due for water,sewer,stormwater,and street fee and becomes part of the total user charge amount due for each utility. Lake Oswego's Typical Monthly Utility Bill $220 - $200 $188.38 $180 $176.91 $170.52 $164.83 $160 $155.41 $160.15 $146.38 $150.78 $135.61 $140.85 $140 $100 $100 $80 111111111 $60 111111111 $40 $20 $0 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 ■Water 51.16 53.46 55.88 56.96 58.14 59.32 60.51 61.73 62.97 64.22 ■Sewer 64.42 66.37 68.39 70.45 72.56 74.72 76.93 79.97 83.10 86.32 ■Stormwater 11.76 12.58 13.46 14.40 15.41 16.49 17.64 18.87 20.19 21.60 •Street Maintenance 8.27 8.44 8.65 8.97 9.30 9.62 9.75 9.95 10.65 16.24 Based on typical use for a single-family home-10 ccf for water and 8 ccf for sewer Past and projected average utility rate increases 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/2 * 2023 Master Fees and Charges Page 5 Section 1: General Water 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Sewer 3.0% 3.0% 3.0% 3.9% 3.9% 3.9% 3.9% Stormwater 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Street maintenance 3.7% 3.4% 1.3% 2.0% 7.0% 50.9743% 3.0% Average increase of 3.1% 3.0% 2.9% 3.5% 3.7% 346.55% 3.96% total utility bill *Adopted rates will be implemented the first full billing cycle following the effective date. Components of the Typical Monthly Lake Oswego Utility Bill $100 $90 $80 $70 $60 $50 $40 $30 $20 - . $10 ---- -��i $0 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 •Water Sewer E Stormwater --- Street Maintenance Comparison of Neighboring Cities'Typical Monthly Utility Bills Based on a September 2022 survey of typical single-family homes in other Portland metropolitan area cities. Page 6 2023 Master Fees and Charges Section 1: General $300 - $250 $248 $200 A $188 $167 $154 $158 $150 $146 $135 $137 5 141 $121 $127 $128 $100 $50 11111111111 $_ .. _ LAKE Tualatin Gresham Hillsboro West Linn Beaverton Sherwood Oregon Milwaukie Wilsonville Tigard OSWEGO Portland Y •Water 44.62 58.74 51.86 38.69 67.40 66.83 49.28 44.31 60.43 79.34 64.22 117.01 •Sewer 54.44 38.84 54.13 51.88 57.24 50.63 63.51 67.90 72.94 55.47 86.32 98.80 •Stormwater 11.11 14.86 13.00 8.65 12.46 17.49 11.72 30.20 11.90 15.64 21.60 31.20 •Street 6.22 - 9.11 16.01 - 4.75 15.07 5.25 9.64 7.96 16.24 - •Other 5.00 15.00 - 20.22 - 1.31 6.50 5.84 2.89 8.28 - 0.97 Water Rates 1. Water connection charge'-this charge is in addition to the Water SDC fee, if applicable (LOC 38.10.113). Meter size larger than 2" are charged at cost and materials plus 20%overhead ($2,740 minimum). NOTE: If the water connection needs to be made on a moratorium street(one that has been paved within the past five years),the cost for the pavement restoration is charged at cost and materials plus 20%overhead. Meter Size Charge 5/8"-3/4„ $ 917 1" $ 1,236 1,306 1 1/2" $3,113 3,290 2" $3,483 3,682 2. Monthly water standard minimum and volume charges. a. Standard minimum monthly water rates for customers within the City. LOC 38.06.020(2a). For all meter sizes: 7/1/21 7/1/22 7/1/2 1 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average. 2023 Master Fees and Charges Page 7 Section 1: General $ 29.37 Single family residential customers $28.79 $29.37 29.96 $32.06 Multi-family customers-First unit $31.43 $32.06 32.70 $ 29.51 Multi-family customers-Each additional dwelling unit $28.36 $28.93 28.93 Meter Non-residential Services Irrigation customers Size 7/1/21 7/1/22 7/1/2 7/1/2021 7/1/2022 7/1/2 $ 32.06 5/8"-3/4" $31.43 $32.06 32.70 $28.79 $29.37 29.96 $ 29.37 $ '10.6'1 1" $39.84 $40.64 41.45 $36.49 $37.22 37.96 $ 37.22 $ 418.35 1 1/2" $47.40 $ 48.35 49.32 $43.44 $44.31 45.20 $ 14.31 $ 73.17 2" $71.74 $73.17 74.63 $65.71 $67.02 68.36 $ 67.02 $ 82.15 3" $80.54 $82.15 83.79 $73.83 $75.31 76.82 $ 74.85 $ 106.98 4" $ 104.88 $ 106.98 109.12 $96.12 $98.04 100.00 $ 98.0i1 $ 131.57 6" $ 128.99 $ 131.57 134.20 $ 118.19 $ 120.55 122.96 $ 120.55 $ 198.07 8" $ 194.19 $ 198.07 202.03 $ 177.93 $ 181.49 185.12 $ 181.49 10" $224.15 $228.63 $228.63 $ 205.41 $209.52 213.71 233.20 $ 209.52 $ 323.53 12" $317.19 $323.53 330.00 $290.64 $296.45 302.38 $ 296.45 b. Volume charges in addition to charges in 2a. USAGE: Per 100 cubic feet(ccf)2 7/1/2021 7/1/2022 7/1/2 Single family residential customers: Tier 1: 0- 8 ccf monthly $3.03/ccf $3.09/ccf $3.15/ccf$ 3.09/ccf Tier 2: 9-16 ccf monthly $4.35/ccf $4.44/ccf $4.53/ccf$ /1.l'I/ccf 2 Based on water delivered during the period between meter read dates. Page 8 2023 Master Fees and Charges Section 1: General Tier 3: over 17 ccf monthly $8.15/ccf $8.31/ccf $8.48/ccf$ 8.31/ccf Multi-family customers $3.49/ccf $3.56/ccf $3.63/ccf$ 3.56/ccf Non-residential customers $3.94/ccf $4.02/ccf $4.10/ccf$ .l.02/ccf Irrigation customers $6.24/ccf $6.36/ccf $6.49/ccf$ 6.36/ccf 3. If a customer's water is turned off because of noncompliance with the proper use of water or for non- payment of utility bills,a charge of$60 will be assessed:$30 for turning the water off and another$30 for a water turn-on. (LOC 38.16.170). The City shall turn off and turn on the customer's water supply at the customer's request.The City shall provide this service for free during working hours one time each calendar year.The City shall charge for additional requests and service during non-working hours except in cases of emergency.(LOC 38.16.175) For customer turn off and turn on requests,after the first turn off then on request in a calendar year,a charge of$60 will be assessed:$30 for turning the water off and another$30 for a water turn-on. There is a charge for reading meters or making service turn-ons or turn-offs at other than regular working hours. In order to suit the convenience of water purchasers,whenever a City employee is required to read a meter or make a water service turn-on or turn-off during hours other than the regular work hours established for City employees, a flat charge of$80 shall be required for such service, in addition to all other charges provided for in this resolution,to be payable as other charges for water services. 4. Rates for the temporary use of a fire hydrant include a$50 installation fee, a$10 per day charge for meter rentals with a maximum charge of$50 per month, plus the usage fee for water based on non-residential water rates. In addition,a $475 refundable deposit will be collected. The deposit is refundable if the meter is returned in good condition and fees have been paid in full. 5. Failure to test backflow prevention assemblies between January 1 to July 15 and submit the test results by July 25 shall be cause for the City to arrange for and conduct the required test.The cost of such a test shall be added to the customer's monthly utility bill at the actual incurred cost plus overhead utilizing a billing multiplier of 2.4 times direct costs. (LOC 38.12.126). 6. If the City is requested to conduct a fire flow test,a flat fee will be charged for each test. (See Section 3). 2023 Master Fees and Charges Page 9 Section 1: General Water Rate History- Monthly Typical Typical water Effective Fixed Usage usage in portion Date Rate Rate ccf of bill change 7/1/2014 $23.88 $2.51/$3.60 10 $51.16 6% 7/1/2015 $24.96 $2.62/$3.77 10 $53.46 4.5% 7/1/2016 $26.08 $2.74/$3.94 10 $55.88 4.5% 7/1/2017 $26.61 $2.79/$4.02 10 $56.96 2% 7/1/2018 $27.14 $2.85/$4.10 10 $58.14 2% 7/1/2019 $27.68 $2.91/$4.18 10 $59.32 2% 7/1/2020 $28.23 $2.97/$4.26 10 $60.51 2% 7/1/2021 $28.79 $3.03/$4.35 10 $61.73 2% 7/1/2022 $29.37 $3.09/$4.44 10 $62.97 2% $29.37 $3.09/$1.14 1 $62.97 7/1/2023 10 2% J........29.96 $3.15/$4.53 64.22 Fixed portion of Monthly Water Bill $35 - $30 $25 $20 $15 $10 $5 $- 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Water Usage Rate per ccf Page 10 2023 Master Fees and Charges Section 1: General $9 $8 - $7 $6 $5 •1 • • $4 $3 $2 T 1 I $1 I I I I I $- I 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 •Tier 1: 0-8 ccf/month Tier 2: 9-16 ccf/month •Tier 3:over 16 ccf/month Sewer Rates 1. Sewer monthly rates for customers within the City,served by the City,and outside Clean Water Services (CWS)shall be charged the following rates for sewer service LOC 38.06.020(2b): Residential for all meter sizes: 7/1/2021 7/1/2022 7/1/2 First dwelling unit $61.73 $64.14 $66.64 $ 611.11 Each additional dwelling unit $55.69 $57.86 $60.12 $57.86 Meter Non-residential services Size 7/1/21 7/1/22 I 7/1/23 5/8" 3/4" $ 55.07 $ 57.22 $ 59.45$ 57.22 1" $ 69.71 $ 72.43 $ 75.25$ 72.43 1 1/2" $ 82.88 $ 86.11 $ 89.47$ 86.11 2„ $ 125.40 $ 130.29 $ 135.37$ 130.29 3„ $ 140.82 $ 146.31 $ 152.02$ 146.31 2023 Master Fees and Charges Page 11 Section 1: General 4„ $ 183.30 $ 190.45 $ 197.88$ 190.45 6„ $ 225.49 $ 234.28 $ 243.42 $234.28 8" $ 268.06 $ 278.51 $ 289.37 $278.51 10" $ 310.60 $ 322.71 $ 335.30 $322.71 12" $ 437.77 $ 454.84 $ 472.58 $151.81 USAGE: Per 100 cubic feet(ccf)of average winter water usage 7/1/21 7/1/22 7/1/23 Residential customers $2.37/ccf $2.28/ccf $2.37/ccf 2.46/ccf Non-residential customers $3.56/ccf $3.43/ccf $3.56/ccf 3.70/ccf a. The above Sewer Usage Rate per 100 cubic feet of average monthly water consumption is based on a customer's average water use during three applicable winter billing cycles. If the full three winter billing cycles are not available,whatever billing record is available shall be used for the computation. b. Where no average winter water usage is available or where it is deemed inappropriate to use in some unusual circumstance for residential, use the standard City-wide average of 8ccf per month multiplied by the standard sewer rates listed above. c. The monthly sewer utility user charge for property within the City and served by Clean Water Services (CWS)of Washington County shall be equal to the monthly service charge established by the agency for similar uses served by the Agency system.The City Manager shall keep on file for public inspection a copy of the current rate structure. Clean Water Services Charge 7/1/20 7/1/21 7/1/22 7/1/233 CWS Sewer-fixed base charge $30.03 $31.38 $32.64 n/a CWS Sewer-usage charge $ 1.99 $ 2.08 $ 2.16 n/a 2. If the City is requested to conduct a sewer connection verification test,a fee of$60 will be charged for each test. Homeowners requesting the test and residing at the residence are exempt from this fee. 3. A line charge shall be assessed upon connection to portions of the sewer system. The City Engineer is authorized to establish additional benefited project areas upon completion of new projects that are constructed under the City's Sewer Extension Program. Customers within the project area shall be assessed the line charge as a condition of receiving a connection permit. The line charge will be reviewed annually and adjusted to reflect actual construction costs of eligible projects or the change in the Engineering News Record Construction Cost Index(20-City Average)as published in October of the preceding year. The charges shown below are for eligible projects already completed through the date of this resolution: 3 Not known at this time,usually becomes available on June 15c Page 12 2023 Master Fees and Charges Section 1: General a. For the following project areas,the cost per single family connection $ 25,87327,347 4 Sundeleaf Drive Deemar Way Country Club Road Mardee Avenue Bryant Road/Old Gate Road Stonebridge Way Jean Road Upper Drive west of Bryant Carman Drive b. A multiple of the above fee in 3a with the multiplier equal to the number of single family connections that could be developed on the subject property under R-5 zoning,as determined by the City Engineer.4 4. Special Sewer Connection Charges: a. Fairway Road Project (pursuant to Ordinance#2262) $ /11,737 46,745 s b. Rivergrove Sewer Connection Charges(pursuant to Zone-of-Benefit [ZOB] Ordinance#2352) Refer to final ZOB ordinance for fees by lot. Various 5 4 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average. Amount is rounded to the nearest dollar. 5 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for Seattle. Amount is rounded to the nearest dollar. Note: For items 3 through 4,SDC charges may apply and are in addition to the line charges shown. 2023 Master Fees and Charges Page 13 Section 1: General Stormwater Rates 1. The stormwater management utility user charge shall be as follows{LOC 38.06.020 2(c)}: a. Each customer using a location for a single-family home or a duplex shall be charged the fee as shown in the table below. b. All other parcels shall be charged per the table below per Equivalent Service Unit(ESU).Total ESUs charged is determined by dividing the total impervious area by 3,030 and rounding to the nearest whole number. 7/1/21 7/1/22 7/1/23 $ 18.87 $ 20.19 $20.19 Fixed monthly rate 21.60 2. Tampering Fine.The fine for tampering with the City utility system shall be equal to the total of the cost of correcting the tampering, plus any utility fee revenue estimated by the City to have been lost or affected by the tampering,and a $100 fine. (LOC 38.26.915). Page 14 2023 Master Fees and Charges Section 1: General Street Maintenance Fee (LOC 37) LOC 37.02.015 A Street Maintenance Fee was established by Ordinance No. 2373 in an amount to be adjusted from time to time, by resolution of the City Council. The fee is based upon the relative direct and indirect use of,or benefit from,the City street system that results from activities within the City, and shall be imposed upon the persons responsible for each developed property upon which such activities occur. LOC 37.02.020 All funds collected pursuant to this Chapter shall be used to pay costs of operation, maintenance, repair, engineering, improvement, renewal, replacement and reconstruction of the City street system. LOC 37.04.010 The Street Maintenance Fee shall be billed and collected with and as part of the combined utility user charge billing pursuant to LOC 38.06.020 and LOC 38.06.030. In the event funds received from the City's utility billings are inadequate to satisfy in full all of the water,sewer,stormwater,and street maintenance fees,credit shall be first given in this order: street maintenance fee,stormwater,sewer,and then water. Rates'and Effective Dates(Per Resolution 10-19 and 10-20): a. Residential groups will be billed 100%of the following per resident fees monthly: Effective Effective Effective July 1,2021 July 1,2022 July 1,2023 $ 10.65 Single family $ 9.95 $ 10.65 16.07 $ 7.61 Multi-family(per unit) $ 7.11 $ 7.61 11.48 b. Non-Residential groups will be billed the following fees monthly, multiplied by their square footage: Effective Effective Effective MF- July 1,2021 July 1,2022 July 1,2023 $ 6.51 Group I $ 6.08 $ 6.51 $9.82 $ 14.65 Group ll $ 13.69 $ 14.65 $ 22.11 $ 54.70 Group Ill $51.12 $54.70 $82.55 General"Group"classification defined as: Group I: less than 29 vehicle trip miles per day, per 1,000 sq ft Group II: from 29 to 90 vehicle trip miles per day, per 1,000 sq ft Group Ill: greater than 90 vehicle trip miles per day, per 1,000 sq ft 6 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average. Per Resolution 10-20,index adjustment shall not be less than a two percent increase or more than a seven percent increase. The increase this year of 50.9%includes both an increase of 5.7%for CCI as well as for an increase of 45.2%or$1.5M for annual pathway funding. 2023 Master Fees and Charges Page 15 Section 1: General Business License and Liquor License Business License A business with anticipated or established gross revenue during a calendar year of no more than$1,000 and at least 50%owned by a person under 19 years of age,are exempt from the following annual business license fees (LOC 20.02.025): 3 or fewer 4—10 11 or more Business License Fees employees employees employees Initial issue fee $80 $ 110 $ 150 Renewal fee received on or before renewal date $64 $ 84 $ 110 Renewal fee received after renewal date $80 $ 110 $ 150 Additional review fee' $20 $ 30 $ 45 1. Renewal Period: Applications for new business licenses should be submitted at least 30 days before the business opens. New business licenses are in effect for the full twelve months after the month of initial issuance. They are renewed annually thereafter. 2. Appeal Fees: Appeal of issue,denial,suspension,or revocation of license $200 3. Temporary Business License: License shall be valid for no more than two successive weeks during a calendar year.They are non- renewable with a minimum fee of$25 per week(or portion thereof)and a maximum fee of$50 per two-week period. Applicants are restricted to two temporary licenses per year. 4. Business License Violation Fee $550 Liquor License The Oregon Liquor Control Commission (OLCC)solicits the City's recommendation on applications for new, renewed,or changed liquor licenses.The City will no longer charge a fee for this service. 'Additional review fee applies to any application(initial or renewal)that requires additional review. Page 16 2023 Master Fees and Charges Section 1: General Dog License (LOC 31.02.115) Every person keeping a dog that has a set of permanent canine teeth or is 6 months old,whichever comes first, shall procure a license for the dog. The license must be procured by paying the following fee to the City, not later than 30 days after the person becomes keeper of the dog. A dog license shall be valid for up to 1,2,or 3 years, and shall expire on the appropriate month end of the respective year.To stay within State Law, no license may be issued with an expiration date that is beyond the end of the month of the applicable rabies vaccination expiration date. Licenses are not prorated for partial years. Expires on the appropriate month end Dog license fees One year Two years Three years Rabies $21 $18 8 vaccination Infertile $30 $60 $90 required $419 Fertile $50 $100 $150 Delinquent license charge (after 2mo. past due) $20 plus license fee Replacement dog tag $ 5 Dog impounded without license License fee plus impoundment fee Impoundment fee(first pickup) $30 Impoundment fee(additional within 90 days) $60 Shelter fee Set by Clackamas County Dog Control Shelter Dog license exceptions 1. Seeing-eye or other assistance dog: No fee is charged for certified seeing-eye or other assistance dogs as defined in ORS 346.659A,such as"in-training", hearing-ear, or other assistance types recognized by a qualified organization. 2. Rabies vaccination due to medical reasons: No rabies vaccination certificate is required as long as(1)the examining veterinarian certifies that the dog should be exempted from the rabies vaccination due to medical reasons and (2)states whether the reason is permanent or the date when exemption ends. 3. Kenneled for commercial sale(and not at large): The fee for a dog that is kept primarily in kennels for commercial sale(and not permitted to run at large)as part of a dog breeder's inventory is$0; a dog that is kept primarily in kennels(and not permitted to run at large), but is removed from the dog breeder's inventory is$5. The keeper must provide evidence that the keeper is a dog breeder and that the dog is a part of the breeder's inventory and/or is kept primarily in kennels for commercial sale and not permitted to run at large. 4. New resident or new dog: New dogs are required to be licensed within 30 days of the owner becoming a resident,of acquisition,or of first rabies shot,and for a one,two or three year license,depending on the expiration of the rabies shot.After an additional 60 days,the delinquent license charge is added to the regular license fee. 5—New dog licensed elsewhere: No fee is charged to owners of new dogs currently licensed elsewhere, but are required to register the dog and obtain a City of Lake Oswego dog tag. 2023 Master Fees and Charges Page 17 Section 1: General Rights of Way Usage Fee On January 2,2019,the Lake Oswego City Council adopted Ordinance 2804,adding Lake Oswego Code Chapter 51 ("Utilities Facilities in Public Rights of Way").Chapter 51 established uniform regulations for utility operations in the City's right of way,as well as a licensing and registration process that replaced individually negotiated franchise agreements. Fees associated with Ordinance 2804 and Chapter 51 of Lake Oswego City Code were established via Resolution 19-03, also adopted January 2, 2019. Utility Service Annual Rights of Way Usage Fee* Electric 5%of gross revenue Natural Gas 5%of gross revenue Cable 5%of gross revenue,or maximum amount permitted by applicable law Communications 5%of gross revenue, 8$3.38 per linear foot of utilities in the rights-of-way,or a minimum annual fee of$5,'16'E$5,628,whichever is greater;or the maximum amount permitted by applicable law. The per-linear-foot fee and the minimum fee shall increase 3% annually on January 1st of each year, beginning January 1, 20208 Any utility operator that does not Based on Total Linear Feet of Utility Facilities in the Rights-of-Way: earn gross revenue within the City. Up to 5,000: $6,556$6,753 5,001-10,000: $8,712$9,004 10,001-20,000: $13,112$13,505 More than 20,000: $21,855$22,511 The minimum fee shall increase 3%annually on January 1st of each year, beginning January 1, 2020. "Gross Revenue" means any and all revenue,of any kind, nature or form without deduction for expense, less net uncollectibles,derived from the operation of utility facilities in the City,subject to all applicable limitations in federal or state law. Rights of Way License Application fee $250 for a five:-year license Rights of Way Annual Registration fee $150 * Government provided water,sewer,and stormwater utilities are not charged this fee. 8 Fees listed incorporate 3%escalator as of January 1,2021 Page 18 2023 Master Fees and Charges Section 1: General Attachment Fees As per City of Lake Oswego Ordinance 2820 and established in Resolution 19-03,wireless providers that deploy infrastructure within the city right of way are subject to the following fees: Wireless Facility permit fee, charged for each wireless facility $967.17$996.19 per application submitted to the City application Additional attachment fee, if placed on City owned pole $843.57$868.88 annually Additional fee for optional permit pre-application meeting $518.09$533.63 per occurrence Additional fee for knockdown of any pole with wireless facility $427.45$440.27 per attachment occurrence All fees shall increase 3%annually on January 15t of each year, beginning January 1, 2020 9 9 Fees listed incorporate 3%escalator as of January 1,2022 2023 Master Fees and Charges Page 19 Section 1: General Franchise Fees (as set by franchise agreements) Electricity and Natural Gas Portland General Electric Northwest Natural° Franchise fee: 3.5%of defined gross revenue Franchise fee: 3%of gross revenue collected Expires January 17, 2023 (Ordinance 2610) Expired January 13, 2021 (Ordinance 2565} Garbage/Solid Waste Republic Services Franchise fee: 5%of gross cash receipts Expires December 13,2022 (Ordinance 2600) Franchise fee: 4.3%of gross revenue Expires April 17, 2022 (Ordinance 2'l8'1} Cable Comcast(MACC) Ziply Fiber(MACC) Franchise fee: 5%of gross revenue Franchise fee: 5%of gross revenue Expires June 30,2025 (Ordinance 2681) Expires May 25,2022 (Ordinance 2486) Telecommunication Services Clackamas County Astound Broadband No franchise fee(City receives use of 4 strands of Franchise Fee:A minimum of$1,500 per quarter fiber) Expires August 4, 2025 (Ordinance 2691) or 5%of gross revenue—whichever is greater Expires December 17,2025 (Ordinance 2693) Northwest Natural now falls under Rights of Way Usage Fee. Page 20 2023 Master Fees and Charges Section 1: General Public Records Feesii 1. Copies of finance documents: Biennial Budget $25 per copy Available online Annual Audit(Comprehensive Annual Financial $25 per copy Available online Report) Biennial LORA Budget $ 5 per copy Available online Annual LORA Audit(Year-end Financial Report) $ 5 per copy Available online 2. Copies of planning and engineering documents: Capital Improvement Plan (CIP) $56 per copy Available online Community Development Code(City Code Ch 50) $64 per copy Available online Comprehensive Plan $56 per copy Available online Public Facilities Plan $29 per copy Available online Public Facilities Plan Appendix $56 per copy Available online Neighborhood Plans $ 19 per copy Available online 3. Copies of maps: Zoning map $20 per copy Available online Comprehensive Plan map $20 per copy Available online City Limits map $20 per copy Available online City Atlas with binder $50 per copy City Atlas(update w/o binder) $0.25 per page 4. Copies of Lake Oswego City Code: Copies of Lake Oswego City Code— $55 Available online excludes Ch 50(no binder) Copies of City Code in PDF format(CD) $20 Available online Copies of Community Development Code $20 Available online in PDF format(CD) 5. Copies of community surveys $ 10 per copy Available online 6. General service copies $0.25 per page 7. Flash Drives $ 8 8 MB $ 9 16 MB $ 13 32MB 8. Records research $25 per 15 minutes/request(minimum$25) plus copies and materials charges 9. Blueprints $ 1 to$7 depending on map size plus $0.50 to$3.50 for overlays 11 Unless otherwise specified under individual department section. 2023 Master Fees and Charges Page 21 Section 1: General Miscellaneous Fees 1. Employment application fee(including assessment tools&testing): Time&materials, not to exceed $25. 2. Administration Fee of 20%for insurance claims related to damage to City property. 3. Use fees(as shown in the Administrative Procedures Manual, Procedure No.2): First use of City facilities shall be by City or other governmental entities.These use fees will be applicable to private parties using City facilities. Fee will include, but is not limited to,a facility supervisor fee, a janitorial fee, and a building use fee.A security and/or cleaning deposit may also be required. Fee may be waived at the discretion of the City Manager, barring requirements by State or local codes. a. Facility supervisor fee: Based upon employee's hourly rate plus benefits and applicable overhead charges. If overtime is involved,the overtime rate will be charged. b. Janitorial fee: Hourly rate plus benefits of the custodial staff and applicable overhead charges will be charged to the user. c. Building use fee: Community Room (Council Chambers and Courtroom)$1002-5 per for the first hour and $50 per additional hour, Conference Room $50 for the first hour and$25 per additional hour except for certain parkPark facilities have separate fees,seer,Section 67. 4. Request for construction contract bidding documents: As established in the Invitation to Bid. 5. Filming permit processing fee(LOC 20.06.400) $ 1,000 Filming permit processing fee appeal $ 100 See Commercial Filming in City Parks in Section 6 for additional fees(page 33) 6. Lien search fee Initial search per tax lot $58 for initial search Subsequent search of same tax lot $ 15 for next 90 days 7. NSF check charges $20 for first offense $35 for repeat offenses 8. Parking stall fee $ 1 per hour per stall (Stalls could be located in public right-a-way or public parking lots) 9. Passport Fees made payable to U.S. Department of State a. For"minor"applications(under 16 years old) $ 80 b. For"adult" applications(16 years or older) $ 110 All passport fees are c. To EXPEDITE any passport application ... add $ 60 set by the U.S. d. For"minor" Passport Card only(under 16 years old) $ 15 Department of State e. For"adult" Passport Card only(16 years or older) $ 30 10. Passport Fees made payable to "City of Lake Oswego" a. For regular passport applications $ 35 per passport application b. For Passport Card applications $ 35 per PASS Card only Only one fee charged if applying for both 11. Passport photo fee $ 15 per set of two Page 22 2023 Master Fees and Charges Section 2: City Attorney's Office City Attorney's Office The following fees shall be charged for the services of the City Attorney's Office: Discovery Fees 1. Copies up to 10 pages $ 15 Each additional page $0.25 2. Audio and video copies $20 50 first tape/DVD/CD/USB $ 156 each additional copy 3. Review and Redaction of Audio and $60/hour,after first 30 minutes(billed at 15-minute increments) Video 43. Copies of photographs $ 1 per letter-size page(4 color print to a page) $520 burned to CD(for up to 30) 54. Flash Drives $ 8 8 MB $ 9 16 MB $ 13 32MB City Code 1. See Section 1:General, Public Record Fees,on page 19. 2023 Master Fees and Charges Page 23 Section 3: Fire Department Fire Department The following fees shall be charged for the Fire Department activities of the City.Any non-listed expenses to provide services in Section 3 will be charged at cost. General Fees 1. Fire and Inspection Reports a. Reports up to 10 pages $25 Each additional page over 10 $0.25 b. Additional research time past first 15 minutes $25 per 15 minutes charged to nearest quarter hour. 2. Fire Investigation Information and Other a. Narrative report up to 10 pages $25 Each additional page over 10 $0.25 b. Digital disk copies $25 Each additional copy same disk $ 16 Plus charge for each picture $0.25 c. Photo log $25 each d. Staff time past first 15 minutes charged to the $25 per 15 minutes nearest quarter hour 3. Non-listed expenses to provide services in Section 3 Charged at cost Medical Services and Transport Fees 1. Advanced Life Support Treatment and Transport $1,399.131,448.09 (+mileage) 2. Basic Life Support Tr atmcnt and TransportNon- $1,399.13991.52 Emergent Transport ALS(+mileage) 3. Non-Emergent Transport BLS(+mileage) $667.684 4. Treatment without Transport(per hour, rounded to $316.35 the quarter hour; 1 hour minimum,) plus supplies used at cost 5. Mil age Emergent Patient-Loaded Milage $29.3130.33 per mile (Mileage charges begin at the location of the emergency/incident scene and end at the destination facility, and are rounded up to the next tenth of a mile.) 6. Non-Emergent Patient-Loaded Mileage $23.28 per mile (Mileage charges begin at the location of the emergency/incident scene and end at the destination facility,and are rounded up to the next tenth of a mile.) 76. Ambulance/Medical Standby Fees (Standby fees are assessed on an hourly bases from the time personnel arrive at the event until the conclusion of onsite functions in%hour increments.) a. Paramedics(2 paramedic minimum,3 hour $63.2767.11 per paramedic per hour minimum Page 24 2023 Master Fees and Charges Section 3: Fire Department b. Ambulance $55 per hour c. Billing/Administration $ 100 Emergency Services Rates 1. Apparatus costs: Per current Oregon Fire Service Mobilization Plan fee schedule. 2. Personnel costs: Fire employee's actual hourly rate plus benefits or the actual personnel costs to replace on-shift firefighters in their assigned capacity. 3. Dive team and boat team operations:Apparatus and personnel costs apply; plus$60 per hour for specialty equipment maintenance and miscellaneous costs associated with the use of specialty equipment. 4. Emergency standby for hazardous utility incidents where Fire needs to protect life and property: $289.81 per hour after the first half hour. 5. Non-emergency standby for special events: $289.81 per hour for Fire Apparatus 6. Calls for emergency services for accidents on highways, public right-of-ways, railways,or resulting from other transportation incidents exceeding 0.5 hours may be billed according to the current payment schedule in the Oregon State Mobilization Plan adopted by the Oregon State Fire Marshal's Office. Fire and Life Safety Plan Reviews 1. Preliminary water and emergency access evaluation for all pre-applications $ 70 2. Detailed water and emergency access evaluation for all development and building permit applications: a. Minor partitions(up to 3 lots) $ 140 b. Subdivisions $ 250 c. Commercial $250 d. All other applications requiring fire review $ 140 3. All fire code construction permits requiring fire review $ 250 4. All Fire Code Operational Permits $ 200 5. Mobile Emergency Responder Radio Coverage(MERRC) a. 0 to 50,000 sq.ft. $0.50 per sq.ft. b. Additional sq.ft.from 50,001 to 100,000 $0.30 per sq.ft. c. Additional sq.ft. exceeding 100,000 $0.10 per sq.ft. Fire and Life Safety Inspections 1. Initial inspection and 1st follow-up No fee 2. Each additional inspection, required for compliance $ 107 per hour 3. After-hours inspections $ 150 per hour(1 hour minimum) 4. Re-inspection fee for new construction after the second violation $ 107 per hour 2023 Master Fees and Charges Page 25 Section 4: Library Library The following fees shall be charged for the Library Department activities of the City: General Fees (LOC 16.08.310) 1. Uniform Library Network Fees Non-resident card $95 per family per year 2. Library Penalty Fees Lost and damaged library items Replacement cost,as determined by staff 3. Sale of withdrawn/surplus items Varies;typically$0.10-$3 4. Overdue fine $0.25 10 per item per day,with a$15 maximum fine per item for adult material and a$3 maximum fine for children's material $ 1.00 per item per day,with a maximum fine equal to the replacement cost of the item,for Library of Things material $5.00 per item per day,with a maximum fine equal to the replacement cost of the item,for equipment 5. Photocopy charges General photocopy charges $0.10 per page Reference collection photocopies $0.10 per page (first 5 pages are free) Black and white internet printing charges $0.10 per page(first dollar used in any combination of color and/or black&white is waived) Color internet printing charges $0.25 per page(first dollar used in any combination of color and/or black&white is waived) Page 26 2023 Master Fees and Charges Section 5: Municipal Court Municipal Court The following fees shall be charged for the Municipal Court activities of the City: General Fees 1. Delayed Payment Fee This fee is assessed in order to help defray the costs of deferred payment of fines. Duration of Payments Amount added to fine 0 to 60 days $ 0 Over 60 days $ 15 2. Vacate Fee $20 This is a fee charged when someone requests the Municipal Court Judge to review a file, change the status,and/or vacate a charge from the DMV record. Expungcment Fee $ 5 This fee is required by anyone filing an application for expungemcnt. 4. Fix-it-ticket Administrative Fee $35 This fee is charged when the citing officer has designated the citation as one that will be dismissed if proof of correction is provided before the initial appearance date. 5. Good Driver Deferred Sentencing Program Administrative Fee Fee shall be the equivalent of the reduced presumptive fine for the charged offense. 6. Seatbelt and Child Restraint Violation Deferred Sentencing Program Administrative Fee $ 100 7. Civil Compromise Administrative Fee $ 150 8. Court Appearance Audio Recording $25 each 9. Certified Copies of Court Documents $5 each 10. Copies up to 10 pages $ 15 Each additional page $0.25 2023 Master Fees and Charges Page 27 Section 6: Parks & Recreation Parks & Recreation The following fees shall be charged for the Parks& Recreation activities of the City: Recreation Services and Activities The services and activity programs within Parks&Recreation are designed to meet the expectations of the Lake Oswego community.A wide range of recreational activities are offered to all ages and ability levels.Services and activity programs are offered to families and individuals at an affordable price and well within market value. Fees Each division shall determine fees based upon marketability and associated expenses for the specific program or service. 1. Lake Oswego residents are given priority in registration and pricing for recreation services and activities. Non-residents are charged additional fees of up to 1.5 times the base activity rate. 2. Fees are designed to cover 100%of the expenses associated with activities. Factors included in rates are: Instructor wages and benefits,supplies/materials,entrance/admission fees,advertising,and transportation. 3. Contract service provision of activities include fees to cover total expense plus a program administrative percentage. Service providers are paid a negotiated sum per participant. 4. Lake Oswego Parks&Recreation (LOPR) Refund Policy • 100%refund to each registered and paid participant if LOPR cancels an activity,class or event. • 100%refund for an activity fee if refund is requested seven calendar days prior to start date of activity. • Refunds requested within seven calendar days prior to the start date of the activity are subject to$10 processing fee (fee applies to each activity withdrawal). • In lieu of a refund,the$10 processing fee is waived with an option for activity fee credit on customer account.All credits are non-refundable and applicable for LOPR activity registration or user fees. • After an activity start date(day of or after),only a prorated refund credit on customer account is issued. fee. In lieu of a refund, a voucher may be requested toward a future activity and the$5 fee is waived.All issued vouchers arc nonrefundable and must be used prior to the end of the following fiscal year. Exceptions to the refund policy may be made at staff's discretion depending upon extenuating circumstances. Indoor Tennis Center 1. Court Fees $242-$328/hour Seasonal $228-$264/hour 2. Activity Rates a. Staff Instructed Activities—Fees established by determining the instruction hourly rate charged plus an additional administrative program percentage determined by market. b. Private Lessons—Instructors who are employees of the City may teach private lessons. Instructors must pay the City for the use of the courts at the seasonal rate. Page 28 2023 Master Fees and Charges Section 6: Parks & Recreation c. Lake Oswego residents are given priority in registration and pricing for recreation classes and activities. Non-residents are charged additional fees of up to 1.5 times the base class or activity rate. 3. Card Key Fee—A non-refundable fee of$240 resident,$320 non-resident annually. An additional fcc of$10 resident,$20 non resident is charged for replacement of the card. 4. Additional Fees—The Tennis Center shall be able to add new activities or programs during the year in order to promote marketability of the facility.As with other activities,fees will be based on instruction hourly rate charged plus an additional program administrative percentage determined by market. 5. Room Rental Fees Dibbins Room Non-Profit up to 3 hours all Others Non-Refundable Cleaning Fee $10 $10 Non-Refundable Cleaning Fee (with Food) $25 $25 Refundable Deposit $25 $100 Hourly Usage Fee $25/Hour $50/Hour Exceptions to the rental policy may be made at staff's discretion depending upon extenuating circumstances. Athletic Field User Charges 1. L ague CI aning&trash disposal fee $200 per s ason {Covers cost of trash pick up on athletic fields over and above regular trash disposal). 2, Turf Field fees Natural Turf Artificial Turf Category Daytime With lights Daytime With lights Category 1(P&R and LOSDLOPR Programs) No Charge No Charge No Charge No Charge Category 2 (Recognized local youth $ 130/hr $ 182/hr $ 150/hr $2044/hr organizations, LOSD) Category 3 (locally sponsored}) $30/hr $40/hr $30/hr $40/hr Category 4(non-local &for-profit) $80/hr $ 100/hr $80/hr $ 100/hr Category 1 Applies to all City affiliated activities, Community School activities,School District sport activitiesLORP&City of Lake Oswego affiliated activities. Category 2 their memberships/participants must be Lake Oswego residents.Additionally,these Organizations must maintain a category Groups that hav^ alified nd ^ rrently"recognized local youth I agues/organizations" include L.O. tittle League, L.O.Junior Baseball, L.O. Girls'Softball, Pacer Junior Baseball, Lakeridge& L.O.Youth Football, L.O. Youth Lacrosse and Lake Oswego Soccer Club. Currently no additional local youth I agues/organizations may be added to this category or become recognized due to lack of field space availability.Applies to recognized local youth organizations and Lake Oswego School District. 2023 Master Fees and Charges Page 29 Section 6: Parks & Recreation • 70%of participants are local residents. Participants considered local residents have a local home address and/or attend a public school in the Lake Oswego School District. • Additionally,these Organizations must maintain a "good standing"with LOPR in order to remain in this category. • Organizations must be based in Lake Oswego. Local youth organizations under the Community Schools Program are included. Category 3 This category aApplies to tournaments, events,camps,clinics, and activities that are hosted by local youth leagues/organizations,including athletic/sport I agues,civic groups,churches, business organizations, neighborhood associations,and individual residents for non profit purposes. "Local" is defined as those organizations based in Lake Oswego or where a majority of the organization's participants or members arc Lake Oswego residents. (Examples include the Oswego Nike Cup hosted by the Lake Oswego Soccer Club, neighborhood association events, and Chamber of Commerce activities.} • This includes other School Districts,athletics/sport leagues,civic groups, churches, business organizations, neighborhood associations,and individual residents for non-profit purposes. Category 4 This category aApplies to all clinics,camps,tournaments,and activities hosted by non-local organizations. "Non local" is defined as those organizations not based in Lake Oswego, or where a majority of the organization's participants or members arc not Lake Oswego residents. (Examples include i9 Sports.)This category also applies to all for profit entities, regardless of whether or not they arc based in Lake Oswego or have a majority of Lake Oswego residents participating in programs. (Examples include a baseball camp offered by Northwest Diamond Sports. and p a+e ort s ) .-This category also applies to all for-profit entities, regardless of location address or local participation percentage. Additional Fees. City may charge additional fees for category 3 and 1 users, over and above the hourly rates listed,to cover costs such as concession stand use,cl aning,garbage, etc. 1. League Cleaning&trash disposal fee $200 per session (Covers cost of trash pick-up on athletics fields over and above regular trash disposal) 2 Field light turn off fee: $50 per occurrence 3. A field light turn off fee will be applied to billing when lights are not turned off by field users and must be turned off by City Staff.This fee applies in the following circumstances: a. Cancelled field use,without notification for the purpose of turning off field lights or to cancel requested field lights programming. b. Leaving field earlier than the scheduled reserved time without turning off lights. 3. Additional Fees: Page 30 2023 Master Fees and Charges Section 6: Parks & Recreation City may charge field use,without notification for the purpose of turning of turning off field lights or to cancel requested field lights programming 4. Tournament and Camp Refund • Tournaments and Camps will not be issued a refund or credit due to unused fields or hours • Cancellations made at least 7 days in advance will receive a full refund minus a $25 cancellation fee. 5 Field Preparation Fees Local Organizations: 4. Baseball/Softball Fields No charge for initial set-up Additional lining$75* Soccer League Fields No charge for initial set-up Additional lining(large field) $200150* Additional lining(small field) $200120* Football Fields No charge for initial set-up Additional lining $200* *Subject to written approval by the Parks and Recreation Director or designee 5. Admission/Event Fees: Organizations which charge admission or event fees at any City athletic field must notify the Parks and Recreation Department ten days before the scheduled event and will be charged 10%of the gross income received.The group will be required to provide Parks and Recreation with financial records of their event within five working days after the completion of the event.Spectators who do not wish to pay admission or make a donation are to be ADMITTED FREE. 6. Drop-in gym programs $4 Resident $86 Non-resident Adult Community Center Fees 1. Human Services Programs a. A per participant donation may be suggested for specified human service programs. b. Fees are designed to cover up to 100%of the expenses associated with the Social Services trips and Respite Program. c. A$30-$50 per session (per participant) resident,$35-$55 per session (pre participant) non-resident fee is designed to cover direct expenses associated with the respite program. d. Classes and other programs generating revenue for another entity, but held at LOACC may be charged a per person fee. 2. Shuttle Bus Transportation to and from the Center. Suggested donation is$1 per one-way ride. 3. Refund Policy • 100%refund to each registered and paid participant if LOPR cancels an activity, class or event. • 100%refund for an activity fee if refund is requested seven calendar days prior to start date of activity. • Refunds requested within seven calendar days prior to the start date of the activity are subject to$10 processing fee(fee applies to each activity withdrawal). 2023 Master Fees and Charges Page 31 Section 6: Parks & Recreation • In lieu of a refund,the$10 processing fee is waived with an option for activity fee credit on customer account.All credits are non-refundable and applicable for LOPR activity registration or user fees. • After an activity start date (day of or after),only a prorated refund credit on customer account is issued. Notification is required and is indicated by the "cancel by" date for trips and activities. A refund will be given less a $5 processing fee. If notified after the class has begun, a prorated refund may be given less a$5 processing fee.All refunds under$25, unless paid with a credit card,arc granted as vouchers toward future use. Exceptions to the refund policy may be made at staff's discretion depending upon extenuating circumstances. 4. Trip Refund Policy gay-Trip Refund Policy:There are no refunds for strips that include expenses prepaid by the ACC unless a replacement participant can be found.All other day trips may be canceled with a refund tiia to five working days prior to departure.A$5 cancellation fee will be deducted from the refund. Full refund is given if the ACC cancels a trip.per the L.O. Park& Recreation refund policy. 5. Room Rental Fees12 Adult Community Center Non-Profit Organization All Others Up to 3 hours Oak/Acorn Rooms: Non-Refundable Cleaning Fee $25 $25 Non-Refundable Cleaning Fee(with food) $50 $50 Refundable Deposit $75 $200 Hourly Usage Fee $503-5/hr $ 100/hr Trillium/Hazel/Dogwood/Birch/Cedar/Madrone Rooms: Non-Refundable Cleaning Fee $ 10 $ 10 Non-Refundable Cleaning Fee(with food) $25 $25 Refundable Deposit $25 $ 100 Hourly Usage Fee $25/hr $50/hr TV/DVD $20 per use $ 20 per use Projector/In Focus $ 25 per use $ 25 per use Screen $ 10 per use $ 10 per use Microphone $ 10 per use $ 10 per use Hybrid Equipment $ 20 per use $ 20 per use Podium $ 20 per use $ 20 per use After hour staff $ 25 per hour Exceptions to the rental policy may be made at staff's discretion depending upon extenuating circumstances. 6. Additional Fees The Adult Community Center shall be able to add new activities or programs during the year in order to promote marketability of the facility.As with other activities,the fee will be based on a base rate plus overhead. 12 Non-residents are charged fees 1.5 times the resident fees for all rental fees. Page 32 2023 Master Fees and Charges Section 6: Parks & Recreation Swim Park Daily usage is free to local residents in compliance with an agreement between the Lake Corporation and the City of Lake Oswego Water Sports Center The City contracts with the Lake Oswego Community Rowing Club Foundation has an agreement with the City to for program delivery and operation operate of the Water Sports Center. User activity fees are set by the Lake Oswego Community Rowing Club Foundation. Park ReservationSheltef Fees13 1. Facility Rental—Exceptions to Section 1, Miscellaneous Fees, page 20. Facility Rate I Rate II Rate III $875/3 $ 1090/3 $ 1980/3 Park Picnic Shelters hrs hrs hrs Millennium Park pergola area $ 1100/hr $ 160/hr $460/hr Millennium Stage/grassy knoll $ 650/hr $ 1100/hr $3100/hr Foothills Park Pavilion $ 1100/hr $ 16&0/hr $36&0/hr Foothills Aamphitheater $ 1100/hr $ 165.0/hr $3100/hr Foothills Pavilion Grass Area $ 60/hr $ 110/hr $ 310/hr Foothills Vviewing Deolphins" $ 650/hr $ 870/hr $2240/hr Roehr Park Amphitheater&Vviewing $ 1650/hr $2320/hr $5240/hr Ddolphin" Excursion boat dock—commercial docking $ 65.0/hr $ 87.0/hr $2240/hr Non-shelter Parks Areas14 $ 650/hr $ 870/hr $2240/hr Non refundable cl aning fee Refundable damage deposit Park Shelters $0 $ 100/use er $400/use special events Premier Parks: Millennium Plaza Park, Foothills Park and Roehr Park; and Rochr Park $ 150/use $500/use Special Events $ 500/use Rate I: Open or closed to the public;events with no sales, no admission fees, no concession sales, no entry fees,and no pledges of future revenues; no sponsor signage allowed. Rate II: Open to the public; events which generate sales,admission fees,concessions,entry fees and/or pledges of future revenues;sponsor signage allowed. Rate III: Closed to the public;events which generate sales, admission fees,concessions,entry fees, and/or pledges of future revenues;sponsor signage allowed. 13 Non-residents are charged fees 1.5 times the resident fees for all rental fees. 14 Includes lawn areas,gardens,historical sites,or use of ball fields or parking lots for special events. 2023 Master Fees and Charges Page 33 Section 6: Parks & Recreation 2. Food trucks with facility reservation' $6&0/hr 3. Special Event Application Fees and Special Event Park Reservations • Special Event Application Fee-other than for City Sponsored Events Application must be received 60 days prior to the event. Fee is$150. • For reservations that are tied to a Special Event Permit that use park areas,standard Park/Premier Park fees apply and are in addition to the Special Event Fee. • Additional City Staff maybe needed to support an event. In such case there is an additional $150/hr per person for the need time at the event. inflatables with facility reservation"- $50/reservation 4. Refund Policy • 100% refund of reservation fee if LOPR cancels the reservation. Shelter Reservation Refund: • If a reservation is canceled 14 days prior to reservation date, a full refund is given, less the$10 processing fee. • If a reservation is canceled less than 14 day prior to the reservation date only the refundable deposit will be refunded. Premier Park and Special Event Park Refund: • If a reservation is canceled 30 days prior to reservation date a full refund is given, less the$10 processing fee. • If a reservation is canceled less than 30 days prior to the reservation date 50%of the full payment will be refunded. The Special Event Permit Application fee is not refundable. Miscellaneous Fees 1. All Parks Plans $30 per copy 2. Research fee $25 per 15 minutes($25 minimum) plus copy and material charges 13 Non-residents are charged fees 1.5 times the resident fees for all rental fees 15 Food trucks and inflatables must be closed to the public. Page 34 2023 Master Fees and Charges Section 6: Parks & Recreation Commercial Photography and Filming in City Parks and Special Events See also Filming Permit in Section 1 for the additional processing fees, page 20. 1. Film/Video rate per venue a. One day fee-no park closure required $ 250 b. One day fee-park closure required $ 1,000 Damage deposit may be required,depending on scope of filming. 2. Still Photography rate per venue a. 1 to 5 hours $ 55 b. 6 to 24 hours $ 110 3. Annual Photo Pass(All Parks) $ 150 4. Long-term shoot:Any shoot over 24 hours will be considered a long shoot. Fees will be assessed for each 24 hour period. 5: Special Events Application Fees other than for City Sponsored events a: Permit Fee when application received at I ast 45 calendar days prior to event date. $400 Permit Expedite Fcc when application received less than 45 calendar days prior to event date(at I ast 10 business days advance notice needed,or event will be denied). $-200 56. Personnel Fees: City employees needed to assist with Special Events and/or Film Permits $105/hour/person,subject to availability. 2023 Master Fees and Charges Page 35 Section 7: Police Department Police Department The following fees shall be charged for the Police Department activities of the City: Security Alarm Permit and Fees (LOC 20.08.606) Voluntary Annual Alarm Permit Fee $25 Security Alarm Code Violation Fines (LOC 20.08.612) Fines for excessive false alarms in a permit year shall be as follows: Second false alarm in any year $ 100 Third false alarm in any year $ 125 Fourth false alarm in any year $ 175 Fifth false alarm in any year $275 Sixth and any additional false alarms $425 Fines for excessive false alarms WITH a voluntary alarm permit shall be as follows: Third and succeeding false alarm in any year $ 100 Police Reports (LOC 14.06.220) 1. Copies up to 10 pages $ 15 Each additional page $0.25 2. 911 audio recording $50 per recording Other audio and video recording.Audio and $50 first recording(DVD/CD/USB) &$ 15 each additional recordingcopy Video Copies CAD Incident Report $10 3. Review and Redaction of Audio and Video $60/hour, after first 30 minutes (billed at 15-minute increments) Miscellaneous Police Fees{LOC 14.06.020) 1. Records research (LOC 14.06.220) $25 per 15 minutes($25 minimum) plus copy and material charges 2. Copies of photographs (LOC 14.06.220) $ 1 per color print $50(for up to 30) burned to CD, plus$ 1 each thereafter 3. Storage fee at P.I.T.for vehicles&equipment $50 per day 4. Hazmat quarantine/investigation $250 per day 5. Police impounded vehicle fee $350 per vehicle 6. Overtime charge*for special events requiring police services are determined based upon which of the following positions are utilized for a minimum of 4 hours: Community Services Officer(CSO), Police Officer,Sergeant, Lieutenant,and/or Captain. *Contact the Police Department for this charge. Page 36 2023 Master Fees and Charges Section 8: Public Works Support Services Public Works Support Services The following fees shall be charged for the Public Works Support maintenance activities of the City: General Fees 1. Public facilities damage (street signs,water lines, etc.) Billed at cost plus 20%for overhead plus lost revenue 2. Sign installation for new subdivisions Billed at cost plus 20%for overhead Second inspection at cost plus 20%for overhead 3. Citizen-requested items(hydrant relocation,water service relocation, etc.) Billed at cost plus 20%for overhead 2023 Master Fees and Charges Page 37 Section 9: Building Building Division A 12%surcharge fee as mandated by the State Building Codes Division is applied to all permit fees. The following fees16 shall be charged for the Building Division activities of the City(LOC 45.01.040): Building Permits Valuation is based on the tables referenced in Oregon Administrative Rule 918-050-0100 and 0110. 1. Total Valuation $ 1 to$2,000 $102.82 up to and including$2,000 $2,001 to$25,000 $102.82 for the first$2,000 plus$9.40 for each additional $1,000 or fraction thereof, up to and including$25,000 $25,001 to$50,000 $319.02 for the first$25,000 plus$6.75 for each additional$1,000 or fraction thereof, up to and including$50,000 $50,001 to$ 100,000 $487.77 for the first$50,000 plus$4.70 for each additional$1,000 or fraction thereof, up to and including$100,000 $ 100,001 to$500,000 $722.77 for the first$100,000 plus$3.00 for each additional $1,000 or fraction thereof, up to and including$500,000 $500,001 to$ 1,000,000 $1,922.77 for first$500,000 plus$2.55 for each additional$1,000 or fraction thereof, up to and including$1,000,000 $ 1,000,001 and up $3,197.77 for first$1,000,000 plus$1.65 for each additional $1,000 or fraction thereof 2. Minimum Structural Permit $102.82 Fee 3. Plan review fees 65%of structural permit fee 4. Fire& life safety review fee 40%of structural permit fee(on commercial only) 5. Other inspections — see also Other Inspection and Fees(pg.44) a. Inspections for which no fee is specifically indicated $ 102.82 per hour b. Additional plan review required by changes,additions,or revisions to plans $ 102.82 per hour 6. Phased Plan Review Phased Plan Review fees shall be$250 plus 10%of the total project building permit fee and shall not exceed$1,500 pursuant to the authority of OAR 918-050-0160.This is in addition to standard plan review fees. 16 The Building Division Permit Fees and Plan Review Fees were modified and increased in response to implementation of the State of Oregon Permitting System,per Resolution 20-27. Page 38 2023 Master Fees and Charges Section 9: Building 7. Deferred submittals Plan Review The fee for processing and Plan Review of deferred submittals shall be 10%of the building permit fee, using the value of the particular deferred portion or portions of the project but not less than$275.This fee is in addition to standard Plan Review fees. Architects and Engineer's exemption for plan review of"conventional light frame construction" (allows architects and engineers to perform plan reviews in lieu of the jurisdiction) pursuant to the authority of ORS 455.628 8. Administration fee for processing and facilitating issuance $250 9. Commercial Fire Systems — based on valuation,see Structural Permit Fee Table 10. Residential Fire System —Standalone System, includes plan review Square footage Permit fee 0 to 2,000 $231.00 2,001 to 3,600 $313.50 3,601 to 7,200 $372.25 7,200 and above $437.25 11. Prescriptive Solar Panel Installation Permit— includes plan review(does not $ 125 include Electrical Permit)* 12. Non-Prescriptive Solar Panel Installation — See Building Permit Fee Valuation Schedule 13. Change of Occupancy $250 14. Temporary Certificate of Occupancy $ 125 per month *Fee is required by Oregon Administrative Rule#918-050-0180 Electrical Permits 1. New residential,one-and two-family dwelling unit 1,000 square feet or less $293.60 Each additional 500 square feet or portion thereof $ 59.80 Each manufactured home, modular dwelling service,or feeder $ 118.50 Limited energy $ 100.00 New multi-family largest unit is calculated as per square footage rates above and each additional unit calculated at 50%of the fee for the largest unit 2. Service or feeders: installations,alterations,or relocation 200 amps or less $ 175.05 201 amps to 400 amps $231.60 401 amps to 599 amps $349.05 600 amps $349.05 601 amps to 1,000 amps $524.10 Over 1,000 amps or volts $958.45 Reconnect only $ 110.00 2023 Master Fees and Charges Page 39 Section 9: Building 3. Temporary services or feeders: installations,alterations,or relocation 200 amps or less $ 102.20 201 amps to 400 amps $ 217.45 401 amps to 599 amps $ 293.60 600 amps $ 293.60 601 amps to 1,000 amps $ 430.00 Over 1,000 amps or volts $ 814.65 4. Branch circuits: new,alteration,or extension per panel With purchase of service or feeder, each $ 13.45 Without purchase of service or feeder First circuit $ 97.85 Each additional circuit $ 13.45 5. Miscellaneous(service or feeder not included) Each pump or irrigation circle $ 118.50 Each sign or outside lighting $ 118.50 Signal circuit(s)or a limited energy panel,alteration,or extension $ 118.50 Renewable energy for electrical systems-5kva or less $ 151.15 Renewable energy for electrical systems-5.01kva through 15kva $ 180.45 Renewable energy for electrical systems-15.01kva through 25kva $ 293.85 Renewable energy-solar generation over 25kva $ 293.85 +$ 11.74 (permit charge will not increase beyond the calculation for 100kva) per added kva Renewable energy for wind system-25.01kva through 50kva $ 587.75 Renewable energy for wind system-50.01kva through 100kva $ 1,175.55 Renewable energy for wind system-misc.fee, hourly rate $ 110.00 6. Each additional inspection over the allowable in any of the above, per $ 110.00 inspection -see also Other Inspections and Fees(pg.44) 7. Special inspections per hour $ 110.00 8. Master Electrical Permit-on time applications fee $ 100.00 9. Master Electrical Inspections-per hour $ 110.00 10. Initial Electrical permit plan review fee is 25%of the electrical permit fee. 11. Addition plan review-electrical-per hour $ 110.00 Page 40 2023 Master Fees and Charges Section 9: Building Mechanical Permits (Residential) Unit Fee Schedule 1. Furnace Less than 100,000 BTU input $36 Greater than 100,000 BTU input $36 2. For the installation or relocation of each floor furnace,including vent $36 3. Furnace/burner including duct work/vent/liner $20 4. For the installation or relocation of each suspended heater, recessed wall heater,or floor mounted unit heater $29 5. For the installation, relocation, or replacement of each appliance vent or chimney installed and not included in an appliance permit $20 6. For the repair,alteration,or addition of an Air Handler or Heat Exchanger up to 10,000 cfm $36 10,001 cfm and over $36 7. Wood or Pellet stove, including hearth and wall shield $36 8. Gas or wood fireplace insert $36 9. Pool or spa heaters/kilns $20 10. Flue vent for water heater or gas fireplace $20 11. Decorative gas fireplace $36 12. Oil tank/gas/diesel generators $21 13. Installation or relocation of domestic type incinerator $20 14. Hydronic hot water system $50 15. Ventilation fan connected to a single duct $ 14 16. Installation of hood served by mechanical exhaust, including ducts for hood $22 17. Range hood/other kitchen equipment $22 18. Heat pumps $50 19. Air conditioners $50 20. Mini split system $50 21. Evaporative cooler other than portable $50 22. Water heater includes vent/flue only $21 23. Repair,alteration,or addition to mechanical appliance including installation of $21 controls 24. Ventilation system not a portion of heating or air conditioning authorized by permit $21 25. Attic/crawl space fans $ 14 26. Radon mitigation $ 14 27. Clothes dryer exhaust $ 13 28. Ductwork-no appliance/fixture $20 29. Barbecue $21 30. Chimney/line/flue/vent $20 31. Other heating/cooling $21 2023 Master Fees and Charges Page 41 Section 9: Building 32. Other fuel appliance $21 33. Other environment exhaust/ventilation $21 34. Permit fees for fuel gas-piping shall be For each gas-piping system of one to four outlets $ 14 For each gas-piping system of more than four outlets, per outlet $2.20 35. Appliance or equipment regulated by code, but not classified in other appliance $21 categories 36. A minimum charge for mechanical permits $ 102.82 37. Each additional inspection over the allowable, per inspection —see also Other $ 102.82 Inspections and Fees(pg.44) 38. Residential Plan Review 25%of total permit fee Mechanical Permits (Commercial) Use this section for commercial installation, replacement,or relocation of non-portable mechanical equipment or mechanical work not covered previously. Indicate the value of all mechanical labor, materials, and equipment. Value Permit Fee Amount $ Less than$5,000 $ 102.82 $5,001 to$ 10,000 $ 102.82 plus$ 1.50 for each additional $ 100 over$5,000 $ 10,001 to$ 100,000 $ 177.82 plus$ 10.20 for each additional$ 1,000 over$ 10,000 $ 100,001 and above $ 1,095.82 plus$7.00 for each additional$ 1,000 over$ 100,000 Plan review Fees A mechanical plan review shall be paid.The fee is equal to 25% of the total permit fee. Page 42 2023 Master Fees and Charges Section 9: Building Plumbing Permits (LOC 46.02) These fees do not apply when solely replacing fixtures without re-plumbing and/or relocating 1. Fixture fees are as follows—note,there is a minimum them (except for water heaters, item ee.). Residential Plumbing permit fee of$97 a. Roof Drains(commercial) $24 b. Absorption valve $24 c. Hose bibb $24 d. Backwater valve $ 24 e. Catch basin or area drain $24 f. Drinking fountain $24 g. Trench drain, per 100'or any portion thereof $ 102.82 h. Expansion tank $24 i. Fixture cap off $24 j. Storm water retention/detention tank/facility $ 24 k. Manufactured home utilities, per 100'or any portion thereof $ 102.82 I. Ice maker $24 m. Rainwater harvesting $ 24 n. Alternate potable water heating system $24 o. Other—plumbing $ 24 p. Septic abandonment $ 24 q. Interceptor/grease trap $24 r. Manhole $24 u. Sink/basin/lavatory $24 v. Swimming pool piping to backflow only per 100'or any portion thereof $ 102.82 w. Tub/shower/shower pan $24 x. Urinal $ 24 y. Water closet $24 z. Dishwasher $ 24 aa. Garbage disposal $24 bb. Clothes Washer $ 24 cc. Floor drain/floor sink/hub drain $24 dd. Sewer, per 100' or any portion thereof $ 102.82 ee. Water heater $ 24 ff. Water service, per 100' or any portion thereof $ 102.82 gg. Storm drain, per 100'or any portion thereof $ 102.82 hh. Sewage ejector pump and sump pump $24 ii. Primer $ 24 jj. Backflow prevention device or anti-pollution device $24 kk. Any trap or waste not connected to a fixture $24 II. Any other plumbing installation, not otherwise listed in this schedule, having a sanitary waste or potable water supply $24 mm. Re-piping of existing fixtures First fixture $ 17 Each additional fixture $ 10 2023 Master Fees and Charges Page 43 Section 9: Building nn. Minimum fee for plumbing permits—Commercial/Residential $ 102.82 2. For NEW one-and two-family dwellings only,the fees are per bathroom as follows (this fee includes 100 feet for each utility connection, hose bibbs, icemakers, underfloor low-point drains,and rain drain packages that include piping,gutters, downspouts,and perimeter system): a. One bath $333.50 b. Two baths $362.25 c. Three baths $402.50 d. Each additional bath/kitchen $ 130.80 3. Each additional inspection over the allowable, per inspection—see also Other $ 102.82 Inspections and Fees(pg.44) 4. Plumbing Plan Review-Add 30%of fees as calculated above for plan review, if required. 5. Commercial Plumbing-Medical gas fees: a. Medical gas permit fees shall be based on the value of installation costs and the system equipment, including but not limited to inlets,outlets,fixtures,and appliances, Med Gas permits are subject to the Commercial Plumbing minimum permit fee. Medical gas plan review —see Commercial Plumbing plan review. 6. Residential Fire System—Multipurpose/Continuous Loop system, includes plan review Square footage Permit Fee Amount 0 to 2,000 $231.00 2,001 to 3,600 $313.50 3,601 to 7,200 $372.25 7,200 and above $437.25 Grading and Fill Permits Plan Review $ 125 50 to 1,000 cubic yards $ 150 1,001 to 10,0000 cubic yards $250 10,001 to 100,0000 cubic yards $350 100,001 cubic yards or more $450 Demo and Deconstruction Permits Residential one-and two-family structures $300 Commercial buildings $400 Page 44 2023 Master Fees and Charges Section 9: Building Manufactured Home Permits Installation permit fee includes the concrete slab, runners or foundations when prescriptive,electric feeder and plumbing connections and all cross-over connections. Installation Permit Fee $445 State Fee $ 30 ORS 446.176(1)and OAR 918-5000105 require all local governments providing construction permits or inspections for manufactured dwelling and cabana installations to collect and remit to the Department of Consumer and Business Services a$30 fee for each installation permit issued.This fee is to be added to manufactured dwelling and cabana installation permits only and should not be added to accessory structures or building,electrical, plumbing, mechanical permits or plan reviews. Manufactured Dwelling/RV Parks The Area Development Permit fee to be calculated based on the valuations shown in Table 2 of OAR 918-600-0030 for Manufactured Dwelling/Mobile Home Parks and Table 2 of OAR 918-650-0030 for Recreational Park&Organizational Camp—and applying the valuation amount to Table 1 as referenced for each. Community Development Code Enforcement Charges Single family $ 15/1 163 Multi-family $ 154 163 plus$151 163 per each 12 units Office/Retail 0—5,000 square feet $ 154 163 5,001-10,000 square feet $308 326 10,001-25,000 square feet $/60 487 25,001-50,000 square feet $612 648 50,001+square feet $766 811 Industrial/Public/Institutional 0—20,000 square feet $ 154 163 20,001-30,000 square feet $308 326 30,001+square feet $/160 487 Enforcement Stop Work $550 Building Violation (LOC Chapter 45) $550 Record Retention and Archiving Fees For purposes of archiving records per State mandate $3031.00 Flat fee on all permits 2023 Master Fees and Charges Page 45 Section 9: Building Research and Consultation Fees Records Research $25 per 15 minutes/request, minimum 15 minutes Fee Estimates - new residential and commercial projects $ 100 per hour per request, minimum one-hour Consultation for code review, hypothetical projects $ 100 per hour, minimum 1/2 hour Supplemental Plan Review $ 100 per hour, minimum 1/2 hour Other Inspections and Fees 1. Inspections outside of normal business hours(minimum charge= 1 hour) $ 120 per hour 2. Re-inspection fee assessed under provisions Section 305(f) $ 102.82 per inspection 3. Inspections for which no fee is specifically indicated $ 102.82 per hour 4. Additional plan review required by changes,additions,or revisions to $ 102.82 per hour approved plans (minimum charge= 1 hour) 5. Work commencing before permit issuance Any person who commences any work on a building or structure before obtaining the necessary permits shall be subject to an investigation fee of$125 per hour,which is equal to the average cost of an inspection. Exception: A one-time exemption shall apply to homeowners applying for their own permits. Seismic Surcharge—Structural/Mechanical—review 1%of building permit fee required on all essential structures Additional Miscellaneous Fees 1. The fee to a governmental agency shall be determined by the provisions set forth under ORS 190.003 to 190.110 for the purpose of carrying out the $ 102.82 per hour respective responsibilities of each agency. or portion thereof 2. Re-inspection fee for structural,electrical, mechanical,and plumbing permits shall be charged for inspection of violations found by the Building Official after the second violation. $ 102.82 per hour 3. The fee to any governmental agency or person for specifically requested $ 102.82 per hour inspections or surveys. or portion thereof 4. Housing moving permit (LOC 45.12.510): Relocating within Lake Oswego $452 Moving out of Lake Oswego $224 Refunds 1. Permit Refunds a. Where a permit has been issued and no inspections have been completed,80%of the permit fee will be refunded. b. There are no refunds when a permit has been issued and inspections performed or permit has expired. 2. Plan Review Refund a. Where a permit has not been issued,80%of the plan review fee will be refunded. b. There are no refunds when a plan review has been started by any department. Page 46 2023 Master Fees and Charges Section 10: Engineering Engineering Division The following fees shall be charged for the Engineering Division activities of the City: Minor Utility Facilities, Installed or Constructed by Public17 or Private Entities Street Opening Permit Fee* Improved Unimproved surfaces surfaces 1. Minor utility structures, except substations, but including poles, lines, pipes or other such facilities $300 $ 150 2. Sewer,storm drainage, or water system structures,excluding treatment plants, reservoirs or pump stations; but including reconstruction of manholes,valves, hydrants,or other portions of the collection,treatment, and distribution systems located within public property, right-of-way,or easements. This includes sewer,storm and water lateral installations or taps $300 $300 3. Street improvements within existing development, including sidewalks, curbs,gutter,catch basins, paving,signs, and traffic control devices and street lights $300 $ 150 4. Permit and inspection of new driveway approach or relocation of an existing approach $50 General Engineering Fees 1. Engineering plan review and — 9% of the final estimated construction costs, as approved by inspection of public or private the City Engineer or$1,000 whichever is greater. A deposit of infrastructure,grading,or other $1,000 must be submitted with the initial plan submittal prior incidental work that is not to review beginning. Fee will include the cost for City to install reviewed and inspected under any sign or pavement marking installations within the right-of- State Building Specialty Codes and way,as delineated in Section 8: Public Works Support Services, delegated to Engineering. unless extenuating circumstances require the City Engineer to recover the cost of such items for large public improvement projects. Final payment of the balance of the 9%fee will be based on final estimated construction costs, and must be received by the City prior to issuance of the permit for construction. *Performance bonds may be required for large projects. 2. Appeal of a staff decision or hearing body to the next higher authority. $ 100 3. Street vacation $ 1,500 4. Quitclaim $ 175200 5. Blasting Permit $250 application fee plus engineering costs to administer and observe blasting operations billed at labor and materials plus overhead billed at 2.4 times direct costs. 6. Document recording to comply with conditions of development approval (i.e.,easements,agreements,etc.) Actual County recording costs 17 Quasi-public agencies other than the City and Franchise Utilities. 2023 Master Fees and Charges Page 47 Section 10: Engineering Other Engineering Fees 1. Drinking water analysis $60 2. Encroachment Permit Type 1—Minor $300 Easily removable structures,such as fences,driveway, entrances, monument walls,or timbers, less than 3'tall,or other non-loadbearing structures. Type 2—Major $750 Relatively large structures that may need engineering, such as driveway decking, reinforced concrete structures, boathouses, decks and hatches over in-lake manholes,or other structures that are not typically found in rights-of- way or public easements. 3. Encroachment Appeal $500 per appeal 4. Zone of Benefit Formation, exclusive of LID Boundaries $2,000 5. Rivergrove Sewer Connection Fee 18 $200 6. Lien segregation One parcel into two $200 Each additional parcel $ 100 7. Street widening $300 8. Street name change $250 9. Change of address request for reasons other than fire and life $500 safety,or as a result of land use procedures. 10. Erosion control permit, plan review and inspection fee19 Dwelling Type: Single family residential $350 Multi-family/Commercial 500 sf up to 1 acre $700 1 acre20 or greater $ 1,500 11. Single-family residential landscaping erosion control permit, plan review and inspection fee $ 1009-7 12. Site re-inspection fee (after two inspection site visits) $ 100 13. Investigation fees: Work without a permit Investigation - Whenever any work for which an erosion control permit is required has commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for the work. Fee-An investigation fee equal in amount and in addition to the permit fee shall be collected whether or not a permit is issued. 18 Check with engineering department for additional connection fee related to new zone of benefits established for certain properties. 19 Check with engineering department for additional connection fee related to new zone of benefits established for certain properties. 20 Effective 1/1/03,impact areas 1 acre and greater will require a 1200-C permit per the Oregon Department of Environmental Quality(ODEQ). Page 48 2023 Master Fees and Charges Section 10: Engineering 14. Erosion control enforcement fees: For violations of LOC Chapter 52 and in addition to penalties prescribed under LOC 52.06,enforcement fees may also be assessed on a time and materials basis plus overhead billed at 2.4 times direct costs. 15. Illicit Discharge Enforcement Fees: For violations of LOC Chapter 38(Utility Code) and in addition to penalties prescribed under LOC 38.26.930 and LOC 38.26.935,enforcement fees may also be assessed on a time and materials basis plus overhead billed at 2.4 times direct costs. 2023 Master Fees and Charges Page 49 Section 11: Planning Planning Division The following fees shall be charged for the Planning Division activities of the City(LOC 50.07.003.2): Ministerial Developments (LOC 50.07.003.13)21,22 1. Accessory building which requires a building permit(e.g.,garage, No Fee carport) 2. Accessory structure or use(e.g.,driveway,fence) No Fee 3. Duplex No Fee 4. Exterior remodeling of duplex or single-family dwelling requiring a No Fee building permit 5. Home Occupations Business License 6. Lot Line Adjustment $ 1,9862,105 Process to correct an illegal Lot Line Adjustment $ 1,9862,105 7. Temporary Structures, Use Business License&Sign Permit, if applicable 8. Sidewalk Display $ 364 9. Accessory dwelling unit No Fee Minor Developments (LOC 50.07.003.14)22,23 1. Change of use $4,215 467 2. Development in DD Zone: Duplex in R-DD zone(hearing body action) $5,92G6,281 Exterior remodeling of duplex or single-family dwelling requiring a building permit in R-DD Zone(hearing body action) $ 281479-26 Single-Family Dwelling in R-DD Zone(hearing body action) $6,2816 Zero lot line dwelling in R-DD Zone(hearing body action) $6,281 b 3. Development within the Greenway Management Overlay District Boundary24 $4/173 741 4. Development Review: Multi-family,Commercial, Industrial, Institutional,Townhouses $ 66,281+37%of building permit fee. Substantial revisions to a complete application requiring 33%of the original application fee new public notice 5. Alterations with minimal impacts such as exterior exit stairs;exterior remodeling that does not expand building footprint or increase height; and accessory structures 300 square feet or less $ 1,96112,081 6. Exterior painting of any structure that was the subject of a Major or Minor Development Permit including all structures in the R-DD zone, with the exception of detached single-family dwellings,duplexes,zero lot line dwellings,or structures accessory to those dwelling types. Exception: Exterior painting that is the same color palette as the existing color(s). $ 959 1,016 7. Lot Line Adjustment $ 862,105 21 See page 52 for Affordable Housing. 22 Site review and inspection fees may apply at building permit review.See page 52 under Other Planning Fees. 23 See page 50 Historical Preservation. 24 No fee applies for the Greenway Management Overlay review associated with dead,hazardous,emergency,or invasive tree removal. Page 50 2023 Master Fees and Charges Section 11: Planning 8. Minor Partition $/1,8805,172 Expedited Minor Partition $7,7148,176 Process to correct creation of an illegal lot $3,5113,756 9. Major Partition (includes the creation of a street) $ 5,5925,927+$2-7--8294/lot Expedited Major Partition $8,5469,058+$2-7-8294/lot Process to correct creation of an illegal lot $ 3,5143,756 10. Modification of approved minor development permits Without public hearing $ 1,9862,105 With public hearing $3,51'13,756 11. Request for formal Code interpretation under LOC 50.01.005 and Authorization for Similar Use Application under LOC 50.03.002 $ 675 715 12. Residential Infill Design (RID)Variance $/1,1724,740 for 1st plus$575 609 for each additional variance 13. Subdivision (with or without P.D.) $ 6,3906,773+$278294/lot Expedited Subdivisions $ 11,93012,645+$2-7-8294/lot 14. Middle Housing Land Divisions $5,172 15 Minor Variances $ 3,8804,112 for 1st+$1126 451 for 4. each additional variance Fence and Wall Variance $ 1,6371,735 for 1st+$179 189 for each additional variance 16 Major Variance $ '1,1724,740 for 1st+$575 609 for S. each additional variance 17 Seasonal Restaurant Enclosure $ 1,9612,081 6. Seasonal Restaurant Enclosure (During State of Oregon Emergency $0 Covid-19 Restrictions) Sign Code Fees (LOC 47) Signs $ 499 528 Signs(awning,window, blade) $ 137 145 Special event sign $ 224 Variance to Sign Code $ 1,637 735 Sign Retrieval Fee(violations} $ 31 Sign Removal H wring Fcc(refundable if sign was removed improperly) $ 34 Refundable deposit for Public Notice Signs $ 1098 Comprehensive Plan and Community Development Code Amendments 1. Legislative amendments to a map Comprehensive Plan amendments only $ 12,98613,765 Comprehensive Plan amendments and Zone Change $ 12,98613,765 Zone Change only $ 12,98613,765 2. Legislative amendments to a text Comprehensive Plan text amendment $ 6,1966,885 Community Development Code text amendment $ 6,1966,885 3. Quasi-judicial amendments to a map Comprehensive Plan amendments only $ 12,98613,765 Zone change only25 $ 12,98613,765 Comprehensive Plan amendments and Zone Change $ 12,98613,765 Minor modifications to approved amendment $ 1,7391,843 25 Not required for zone changes that conform to the Comprehensive Plan following annexations. 2023 Master Fees and Charges Page 51 Section 11: Planning I Substantial modifications to approved amendments $ 2,2362,370 Page 52 2023 Master Fees and Charges Section 11: Planning Major Developments (LOC 50.07.003.15)26 1. Conditional Uses $6,3746,756 2. Overall Development Plan and Schedule $5,9266,281 3. Modification of approved major development permits Without public hearing $ 1,9862,105 With public hearing $3,5143,756 Sensitive Lands Overlay Districts (LOC 50.05.010 and LOC 50.07.004.8) There are no fees for actions relating to Sensitive Lands Overlay Districts(Council action 10/21/14). Fees Relating to Historical Preservation (LOC 50.06.009 and LOC 50.07.004.4) 1. Designation of Landmark No fee 2. Exterior alteration of Landmark, including building paint color change No fee 3. Historic District Designation No fee 4. New construction (not attached to historic structure; e.g.,detached No fee garage,secondary dwelling,garden shed) 5. Removal or deconstruction of Landmark $71,9415,237 6. Withdrawal of historic landmark designation $71,9415,237 Appeals27 1. Appeals of a formal Code Interpretation to a Hearing Body $ 704 746 2. Appeals of a staff decision to a Hearing Body $ 704 746 3. Appeals of a Hearing Body decision to City Council %original Application Fee not to exceed$6,491 883 Pre-Application Conference/Consultations28 1. Pre-application Conference:29 Residential Infill Design Review: Pre-application with Planning Staff $ 7126 451 Pre-application with the Infill Advisors Team $2,279 415 All other applications $ 426 451 2. Pre-application Consultation: One follow-up meeting with staff to discuss issues addressed at the No fee pre-application conference. For any meetings after the follow-up(3rd meeting on) 50%of pre-application fee 3. Consultation Fee A private meeting to discuss a project outside the context of a pre-application conference or at-the-counter services by a planner $ 1130. /hour 26 Site review and inspection fees may apply at building permit review.See page 52 under Other Planning Fees. 27 Appeal fee shall not apply to appeals filed by DLCD or to appeals filed by recognized Neighborhood Association entitled to receive notice of a pre-application neighborhood meeting pursuant to LOC 50.07.003.1.f.iii(1)(a)and(b). 28 In addition to planning fees noted in this sub-section,the Fire Department also levies a pre-application fee.Please refer to Fire Department,Section 3 for the correct amount. 29 There is no pre-application conference fee for a permit for an ADU,actions relating to Sensitive Lands,Greenway Management Overlay review associated with dead,hazardous,emergency,or invasive tree removal,or designation of Historic Landmark. 2023 Master Fees and Charges Page 53 Section 11: Planning Research Fees 1. Letter of zoning verification $ 1130-7/hour 2. Letter of verification of compliance with Community Development Code of an existing development $ 17463/hour 3. Deed research to determine the legality of a lot of record $ 17466/hour 4. Research/Interpretation of old planning files and informal Code Interpretation(often requested by the applicants before filing of a development application) $ 11307/hour Tree Code Fees (Resolution 00-07) 1. Tree Cutting Permit Fees Type I Permit $ 232 Dead or Hazard Tree Permit $ 232 Type II Permit $ 1877+$232 per tree Emergency Tree Permit $0 Type II Permit in conjunction with major or minor development application $0 Minor Forest Management $ 232 Major Forest Management $ 1877+$232 per tree, not to exceed$602 638 Verification Permit $ 376+$ 10 per tree Topping Permit $ 232 per request 2. Mitigation [as provided in LOC 55.02.084(3)] $ 1625-3 3, Enforcement Fees For violations under LOC 55.02.130(3), enforcement fees will be assessed as follows: Type I Permits violations, d ad or hazard tree violations $ 110 All other Permit Type violations $ 672+$15 per tree Tree Protection Enforcement fee for violations under LOC 55.08.050(3} Standard tree protection enforcement fee $ 652 Enhanced tree protection enforcement fee $ 1,301 4. Restoration Standard City Tree Fund Fee [as provided in LOC 55.02.130(4)(a)} $ 94 per caliper inch Incr ased City Tree Fund Fee [as provided in LOC 55.02.130(1)(b)} $ 191 per caliper inch 35.. Public Hearing Review' Request for DRC Hearing on Tree Cutting Permit $ 232413 Appeal of DRC's decision to City Council 1/2 of original application fee 46. Heritage Tree Program The City may charge for providing the plaque marking a heritage tree. The fee will be the actual cost of providing the plaque. 57. Tree Protection Inspection Fee $ 11307 per inspection 68. County Tree Removal Certification Type 2 Permits $ 1193+$ 11 for each additional tree Over-the-Counter Permits —Type 1 $ 232 Over-the-Counter Permits —Dead $ 232 3°Fee shall not apply to requests/appeals filed by City of Lake Oswego recognized Neighborhood Associations. Page 54 2023 Master Fees and Charges Section 11: Planning Over-the-Counter Permits —Hazard $ 232 Invasive and/or Emergency tree removal permits No Fee Fee Exemptions for Affordable Housing No Ministerial Development, Minor Development, Major Development,Sign Code, Historic Preservation,Tree Code(for tree removal and mitigation for development of the structure) or Pre-application Conference fees will be charged under this Section 11 for developments where the proposed dwelling units are affordable to those earning 80%or less of Area Median Income and spending not more than 30%of household income on housing,consistent with Clackamas County Housing Authority's"Income Limits"for Affordable Housing, provided that all of the requirements of the covenant required by LOC 39.06.105(5)are met. Other Planning Fees (Resolution 04-12) 1. Annexation Application Fee31 Parcel less than 3 times minimum lot area for the zone designation that will apply upon annexation. $0+Applicable Metro Fees Parcel 3 times or greater than the minimum lot area for the $97520 per no. of lots into which zone designation that will apply upon annexation. the parcel could be divided under the zone designation that will apply upon annexation+Metro fees Parcel for which there is no minimum lot area for the zone designation that will apply upon annexation. $ 1,844-951+Applicable Metro Fees Expenses related to additional noticing caused by delays brought on by the applicant(s). $ 28166 2. Copies of Planning Documents See Section 1, Public Records Fees, page 19. 3. Site review and inspection fees a. Single family dwelling or middle housing on infill lots(i.e., lots or parcels not approved as part of a land partition/subdivision) $ 26046 b. Single family dwelling or townhomcs middle housing approved as a part of a land partition/subdivision/planned development $ 6544-7 application c. Non-single family residential development, including apartmcntsmulti-family,commercial, industrial, and $ 1,306233 institutional uses d. Re-inspection fee $ 1370 e. Residential remodels Interior remodels and accessory structures $ 14436 Exterior addition of no more than 500 sq ft $ 19283 Exterior addition exceeding 500 sq ft(same fee as if new construction) See a.—c.above 31 See Annexation Application Form. 2023 Master Fees and Charges Page 55 Section 11: Planning 4. Plat Review Fee a. Final Plat Review Fee $ 5454-5 b. Lot Line Adjustment Plat Review Fee $ 564 5. Ballot Measure 49 Claims Fees for claims under LOC Article 12.55(Resolution 05-31) Pre-filing conference fee $ 4188-9 Filing fee $ 1,432351 6. Application Mailing List Fee $ 8076 7. Records Retention Fees- For purposes of archiving records per State mandate a. Ministerial land use applications $ 442 b. Minor land use applications(without public hearing) $ 7369 c. Minor land use applications(with public hearing)and major $ 15345 land use applications d. Type II and verification tree removal permits $ 287 e. Sign permits $ 287 8. Demolition (Notice of Demolition Approval) $ 6158 9. Additional Plan Review Fee for Issued Building $ 1139-7/hour Permits(minimum 1 hour) Code Enforcement Violation Fees 1. Nuisance violation LOC 34.08&34.10 $ 550 2. Community Development violation LOC Chapter 50 $ 550 3. Sign violation LOC Chapter 47 $ 550 4. Sign Retrieval violation-Moving from Sign Code Fees(LOC 47) $ 36 5. Sign Removal Hearing Fee(refundable if sign was removed improperly) $ 36 6. Tree Enforcement Fees-For violations under LOC 55.02.130(3), enforcement fees will be assessed as follows: Type I Permits violations, dead or hazard tree violations $ 148 All other Permit Type violations $ 712+$47 per tree Tree Protection Enforcement fee for violations under LOC 55.08.050(3) Standard tree protection enforcement fee $ 691 Enhanced tree protection enforcement fee $ 1,382 7. Tree Restoration Fees[as provided in LOC 55.02.130(4)(a)&(b)1 Standard City Tree Fund Fee $ 99 per caliper inch Increased City Tree Fund Fee $ 202 per caliper inch Page 56 2023 Master Fees and Charges Section 12: Systems Development Charges Systems Development Charges Fees shall be assessed for Systems Development Charges(SDC) and will reflect the following: • For each type of SDC,the fees assessed to each unit of a duplex shall be the same as those assessed to a single-family residence. • For an Accessory Dwelling Unit(ADU)each type of SDC will be waived, even if a larger meter is required to accommodate an ADU, provided that the ADU complies with all the requirements of the covenant required by LOC 39.06.105(5) as amended by Ordinance 2810. If within 10 years from the first use of the ADU as a dwelling unit,the requirements of this covenant are not maintained,the City may declare the ADU exemption from payment of all System Development Charges(SDCs) revoked and the Owner shall immediately pay to the City the monies due under LOC 39.06.105(5),to wit: Processing fee per Council Resolution;and ■ SDC amounts for ADU per Lake Oswego Master Fees and Charges at time of payment (previously exempted system development charges, with interest based upon inflation rate using the Engineering News—Record Construction Cost Index 20-City Average, are reflected in the SDC amounts then due). ■ Processing fee$500 • Pursuant to and following the procedure set forth in LOC 39.06.105(5)(f)(iii), (iv), (v),the processing fee and SDC amounts shall be a lien upon the Real Property,entered in the municipal lien docket,and are enforceable in the manner provided by ORS Ch. 223. Exempt from SDCs are developments where the proposed dwelling units are affordable to those earning 80%or less of Area Median Income and spending not more than 30%of household income on housing,consistent with Clackamas County Housing Authority's"Income Limits"for Affordable Housing, provided that the development complies with all of the requirements of the covenant required by LOC 39.06.105(5). • The rate for Hotel/Transient Lodging includes Short-Term Rentals(Transient Lodging in residential zones). These SDC's shall be indexed for inflation annually using the Engineering News—Record Construction Cost Index (20-city average). Accordingly,as of January 1, 20243,the SDC fees have been increased by 8-:05_7%which is equal to the last recorded change in this index as based on October 20221 to October 20232 data. Calculated amount is rounded to the nearest dollar. 2023 Master Fees and Charges Page 57 Section 12: Systems Development Charges Systems Development Charges (LOC 39.04) Water SDC 411. Reimbursement Improvement Administrative Total Water Meter Size Fee 14.79% Fee 78.72% Fee 6.49% 100% 5/8 3/4 inch $ 1,339 $ 7,128 $ 588 $ 9,055 $ 1,416 $ 7,534 $ 621 $ 9,571 3/4 inch $ 1,339 $ 7,128 $ 588 $ 9,055 $ 1,416 $ 7,534 $ 621 $ 9,571 1 inch $ 2,232 $ 11,879 $ 979 $ 15,090 $ 2,359 $ 12,556 $ 1,035 $ 15,950 1 1/2 inch $ 4,164 $ 23,760 $ 1,959- $ 30,183 $ 4,718 $ 25,114 $ 2,071 $ 31,903 2 inch $ 7,150 $ 38,056 $ 3,137 $ 18,31-3 $ 7,558 $ 40,225 $ 3,316 $ 51,099 3 inch $ 11,317 $ 76,202 $ 6,282 $ 96,801 $ 15,133 $ 80,546 $ 6,640 $ 102,319 4 inch $ 22,390 $ 119,171 $ 9,825 $ 151,386 $ 23,666 $ 125,964 $ 10,385 $ 160,015 6 inch S--44,815 $238,529 $ 19,665 $303,009 $ 47,370 $252,125 $ 20,786 $320,281 8 inch $ 71,750 $381,888 $ 31,184 $485,122 $ 75,839 $403,656 $ 33,279 $512,774 10 inch $ 103,237 $519,178 $ 15,301 $698,016 $ 109,122 $580,798 $ 47,883 $737,803 Sewer SDC Reimbursement Improvement Total Water Meter Size Fee 22.16% Fee 77.84% 100% 5/8 3/4 inch $ 730 $ 2,566 $ 3,296 $ 772 $ 2,712 $ 3,484 3/4 inch $ 730 $ 2,566 $ 3,296 $ 772 $ 2,712 $ 3,484 1 inch $ 1,218 $ 1,278 $ 5,196 $ 1,287 $ 4,522 $ 5,809 1 1/2 inch $ 2,436 $ 8,555 $ 10,991 $ 2,574 $ 9,043 $ 11,617 2 inch $ 4,871 $ 17,109 $ 21,980 $ 5,149 $ 18,084 $ 23,233 3 inch $ 11,691 $ 41,068 $ 52,759 $ 12,357 $ 43,409 $ 55,766 4 inch $ 20,161 $ 71,870 $ 92,331 $ 21,627 $ 75,967 $ 97,594 6 inch $ n� $ 157,428 $202,246 $ 47,373 $ 166,401 $213,774 8 inch $ 77,914 $273,789 $351,733 $ 82,387 $289,395 $371,782 Page 58 2023 Master Fees and Charges Section 12: Systems Development Charges 10 inch $ 121,786 $427,791 $549,577 $ 128,728 $452,175 $580,903 Stormwater Management SDC Reimbursement Improvement Total Fee 0% Fee 100% 100% Single family $0 $480 0 $ 190 $ 190 Multi-family,commercial/industrial, institutional, and other land use fees are determined as follows: Improvement Fee equals the total impervious area of the property in units of 3,030 square feet or portion thereof multiplied by the fee. Transportation SDC Refer to methodology and rate schedule in the Appendix Parks&Recreation SDC Reimbursement Improvement Total Fee 0% Fee 100% 100% Residential Single family $0 $ 15,672 $ 15,672 $ 16,565 $ 16,565 Multi-family/secondary dwellings $0 $ 8,717 $ 8,717 $ 9,214 $ 9,214 "Congregate Housing" units are charged at 50%of the Multi-family rate*. Non-residential $0 $ 1,008 $ 1,008 $ 1,065 $ 1,065 per employee "Residential Care Housing" units are charged at 100%of the Non-residential rate*. *See Appendix for definitions of Congregate Housing and Residential Care Housing. 2023 Master Fees and Charges Page 59 Section 12: Systems Development Charges Comparison of Neighboring Cities' New Single-Family Systems Development Charges Based on a 2,000 sq.ft. house with 500 sq.ft.garage,and$200,000 value. 60,000 $50,934 50,000 $46,518 $45,057 $41,414 $41,547 $42,952 $38,166 $40,376 40,000 $36,258 $34,258 30,000 $26,127 20,000 $13,788 10,000 1111-1111111 Lake Milwaukie Gresham Tualatin OC'ty n Tigard Hillsboro Portland Sherwood Beaverton Wilsonville West Linn Oswego ■Water SDC 2,197 5,305 5,306 9,989 10,853 13,395 4,563 8,836 9,354 11,283 13,230 9,571 •Sewer SDC 1,065 7,055 6,625 2,681 6,625 6,625 _9,274 7,523 6,625 6,289 12,843 3,484 •Stormwater SDC 1,039 1,344 641 1,070 641 641 1,507 641 1,252 2,112 1,479 190 ■Street SDC 2,362 4,589 9,998 12,569 8,208 9,998 5,882 11,965 9,998 15,264 3,783 17,984 I •Park SDC 3,985 4,694 8,548 6,905 8,699 6,577 17,048 9,443 12,583 6,969 12,943 \16,565 •METRO Excise Tax 240 240 240 240 240 240 240 240 240 240 240 240 •School Excise Tax 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,000 2,900 Page 60 2023 Master Fees and Charges Section 12: Systems Development Charges Comparison of Neighboring Cities' New Commercial Systems Development Charges Based on a 30,000 sq.ft.commercial office building, a total 50,000 sq.ft impervious area,and$3,200,000 value. $623,399 600,000 - - $522,055 $541,454 $508,139 500,000 $457,072 $457,648 $472,033 400,000 $375,903 $344,486 $301,028 300,000 $224,581 $239,412 200,000 100,000 Milwaukie Gresham Lake West Linn Portland Tualatin Beaverton Sherwood Wilsonville Tigard Hillsboro Oregon Oswego City ■Water SDC 7,329 21,214 30,905 95,600 22,814 26,527 46,765 44,179 55,527 86,804 61,527 50,856 ■Sewer SDC 74,807 28,208 11,617 84,579 49,461 26,500 26,500 30,091 17,612 26,500 26,500 21,839 ■StormwaterSDC 11,519 26,880 3,135 25,377 16,222 12,140 23,712 12,140 36,000 12,140 12,140 10,642 ■Street SDC 100,621 137,670 143,580 113,490 182,400 314,820 288,690 352,226 352,830 314,820 314,820 492,163 •Park SDC 4,865 - 86,351 - 79,566 51,600 46,541 7,957 20,730 56,351 101,027 22,460 •METRO Excise Tax 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 •School Excise Tax 21,600 21,600 21,60 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 2023 Master Fees and Charges Page 61 Appendix This page intentionally left blank Page 62 2023 Master Fees and Charges Systems Development Charges Methodologies (LOC 39.04.041) Water Systems Development Charge Methodology 60 Sewer Systems Development Charge Methodology 62 Stormwater Systems Development Charge Methodology 63 Transportation Systems Development Charge Methodology 64 Parks and Recreation Systems Development Charge Fee Methodology 66 Resolution Resolution—Updating the Master Fees and Charges Schedule 69 2023 Master Fees and Charges Page 63 Appendix Water Systems Development Charge Methodology Reimbursement Fee [A] Eligible cost of unused capacity in the existing water system. [B] Current(2009)customer base expressed as 3/4" meter equivalents. [C] Future customer base expressed as 3/4" meter equivalents. [C][A][B] = [D] Water SDC Reimbursement Fee Reimbursement Fee Calculation [A] = $6,148,588 [B] = 15,204 MEs [C] = 21,695 MEs [A] = [D] $947 [C]—[B] 20232 Master Fees and Charges-Attachments Page 61 Appendix Improvement Fee [E] Cost in current(2009)dollars of water system capital improvements that will increase system capacity to meet the needs of future users. [B] Current(2009)customer base expressed as 3/4" meter equivalents. [C] Future customer base expressed as 3/4" meter equivalents. [E] _ [F] Water SDC Improvement Fee [C]—[B] Improvement Fee Calculation [E] _ $32,714,947 [B] = 15,204 MEs [C] = 21,695 MEs [E] _ [F] $5,041 [C]—[B] Water System Development Charge [D] Water SDC Reimbursement Fee [F] Water SDC Improvement Fee [G] Water SDC Administrative Fee [H] Water System Development Charge [D]+ [F] +[G] = [H] 2023 Master Fees and Charges—Attachments Page 65 Appendix Sewer Systems Development Charge Methodology Sewer SDC Fee [M] Value of the sewer collection system capital improvement program to provide capacity to serve new customers. [N] Value of the sewer wastewater treatment plant capital improvement program to provide capacity to serve new customers. [0] Current dry weather demand. [P] Future dry weather demand. [Q] Future WWTP capacity dedicated to Lake Oswego. [R] Average single family home dry weather demand. [P]-[0]x [M]x[R]=[s] Portion of fee for collection system capital improvements to provide [P] [P] capacity to serve new customers. [P]x [N] x[R]_ [T] Portion of fee for wastewater treatment plant capital improvements to [Q] [P] [°] provide capacity to serve new customers. [S]+[T]_[U] Sewer Fee. Sewer SDC Fee Calculation [M] = $ 19,351,000 [P]—[o]x [M]x[R]=[S] $244 [P] [P] [N] _ $ 11,499,000 [P]x [N] x[R]_[T] $ 1,186 [Q] [P]—[°] [0] = 3.9 mgd [P] = 5.69 mgd [Q] = 7.025 mgd [R] = 0.000228 mgd [S]+[T]_[U] $ 1,430 Sewer System Development Charge [U] * 22.16%= [V] Sewer SDC Reimbursement Fee [U] * 77.84%= [W] Sewer SDC Improvement Fee [X] Sewer System Development Charge [V] +[W] = [X] 20232 Master Fees and Charges-Attachments Page 63 Appendix Stormwater Systems Development Charge Methodology Improvement Fee—Water Quantity Portion [A] Portion of the Stormwater quantity management capital improvement program attributable to future development. Determined on a project-by-project basis and equal to the percentage increase in the design flow of each project in the Stormwater quantity management capital improvement multiplied by project cost. [B] Projected increase in Equivalent Service Units(ESUs).One ESU is equal to 3,030 square feet of impervious area.Total projected increase in ESUs is determined by dividing the total projected increase in impervious area of the City of Lake Oswego by 3,030. [A]/[B] = [C] Improvement Fee—quantity portion, per ESU. Improvement Fee—Quality Portion [D] Portion of the stormwater quality management capital improvement program attributable to future development. Equal to the percentage increase in total runoff multiplied by the total cost of the stormwater quality management capital improvement program. [D]/[B] = [E] Improvement Fee—quality portion, per ESU. Improvement Fee Calculation [C]+ [E] = [F] Stormwater improvement fee. Stormwater Management System Development Charge Only includes an Improvement Fee-No Reimbursement Fee. 2023 Master Fees and Charges—Attachments Page 67 Appendix Transportation Systems Development Charges Rate Tables Transportation SDC Maximum Allowable Approved SDC Rate SDC Rate ITE per Unit32 per Unit Code Land Use Unit[A] [B] [C=B x.30]33 $10,022 $3,007 110 General Light Industrial 1,000 SFGFA $9,482 $2,815 10,163 3 049 130 Industrial Park 1,000SFGFA 9,6155 730 55 768 1 140 Manufacturing 1,000SFGFA 5,157 1,637 355 44 518 1 172-8 151 Mini-Warehouse 1,000SFGFA 4,2742 1886 566 5-35 160 Data Center 1,000 SFGFA 1,784 395 Single-Family Detached 17,984 5 210 Housing/Duplex Dwelling unit 17,0144 12,374 3712 220 Apartment Dwelling unit 11,707 3,512 228 Residential 10,759 3- 230 Condominium/Townhouse Dwelling unit 10,179T9"`" 799 9 830 22 240 Mobile Home Park ODU 8,827 24948 464 4 879 1 254 Assisted Living Bed 4,616 1,385 14,954 4�86 4,244 310 Hotel/Transient Lodging Room/Unit 11,118 215 10,717 3 320 Motel Room 10,139 3i042 11,676 3 803 411 City Park Acre 11,0464 9802 2851 27694 417 Regional Park Acre 8,990 10,035 3 O11 430 Golf Course Acre 9,49'1 2,848 5 17,317 7,723 492 Health/Fitness Club 1,000 SFGFA 5'1,610 16,383 Recreational Community 52,161 15648 495 Center 1,000 SFG FA 19;3.48 ,n nn 32 Indexed annually by the Engineering News Record Construction Cost Index(CC!)for 20-City Average,per Resolution 17-08. 33 The 30%factor for the approved SDC Rate per Unit applies to all codes except ITE Code 210.Maximum Allowable was phased-in for ITE Code 210(Single-Family Detached Housing/Duplex),per Resolution 17-65. Page 68 2023 Master Fees and Charges-Attachments Appendix 13,562 4 069 520 Elementary School 1,000 SFGFA 12,8319 3 634 Middle School/Junior High 12,113 3,938 522 School 1,000SFGFA 11,160 399 11,330 3 530 High School 1,000 SFG FA 10,719 3246 40,765 12,230 540 Junior/Community College 1,000 SFGFA 38,5670 551 25,169 7 7714 560 Church 1,000 SFGFA 23,8124 34,314 10,294 565 Day Care Center 1,000 SFGFA4 9,739 96,0652446 28,820 590 Library 1,000SFGFA 90,8856 23,167 6950 647 610 Hospital 1,000 SFGFA 21,9185 13,728 4418 620 Nursing Home 1,000 SFGFA 12,9886 15,953 4486 710 General Office Building 1,000 SFGFA 15,093 4,528 Medical-Dental Office 51,987 15596 720 Building 1,000 SFGFA /9 184 19,755 State Motor Vehicles 230,155 69047 65738 731 Department 1,000SFGFA 217,7'I4 3 168,192 50458 732 United States Post Office 1,000 SFGFA 159,122 47,737 16,182 4 855 750 Office Park 1,000 SFGFA 15,309 4,593 760 Research and 11,848 3 554 Development Center 1,000 SFGFA 11,209 3,363 389 17,962 5 57013 770 Business Park 1,000 SFGFA 16,9938 812 Building Materials and 82,104 24631 Lumber Store 1,000 SFGFA 77,676 23,303 Transportation SDC Approved Maximum SDC Rate ITE Allowable per Unit Code Land Use Unit[A] SDC Rate [C=B x.30] 2023 Master Fees and Charges-Attachments Page 69 Appendix per Unit34 [B] Free-Standing Discount 73,221 21966 813 Superstore 1,0005FGFA 69,272 22 58,2041-648 17,461 814 Variety Store 1,000 SFGFA 55,065e Free-Standing Discount 53,714 16114 815 Store 1,000SFGFA 50,817 15,245 49,3311-4700 14,799 816 Hardware/Paint Store 1,000 SFGFA 16,671 } 157,737 47321 7 817 Nursery(Garden Center) 1,000 SFGFA 119,231 449 39,3681447 11,810 820 Shopping Center 1,000 SFGLA 37,215 4 g 7 23,177 7,255 826 Specialty Retail Center 1,000 SFGLA 73,089 21,927 5 16,714 5,713 841 Automobile Sales 1,000 SFGFA 99 15,813 � 5 15,557 1,857 843 Automobile Parts Sales 1,000 SFGFA 49,061 11,718 32,510 9,753 848 Tire Store 1,000 SFGFA 30,757 9,227 9 27,038 0,126 2-57580 850 Supermarket 1,000SFGFA 85,266 Convenience Market 469,841 140,952 13345 851 (Open 24 Hours) 1,000 SFGFA 411,504 1 8 24,184 0,612 2.2788 857 Discount Club 1,000 SFGFA 76,2650 Home Improvement 31,855 9 557 9704 862 Superstore 1,0005FGFA 30,1371 21,773 Pharmacy/Drugstore 72.578 20,599 880 without Drive-Through 1,000 SFGFA 687664 21,031 Pharmacy/Drugstore with 70,104 19,897 881 Drive-Through 1,000 SFG FA 667324 33 4_79 1L044 890 Furniture Store 1,000 SFGFA 3,291 9 87 6 19,155 3,851 912 Drive-in Bank 1,000 SFGFA 60,108 18,122 71,230 21,369 931 Quality Restaurant 1,000 SFGFA y7gs3 20,217 932 High-Turnover(Sit-Down) 100,098 30029 Restaurant 1,000SFGFA Q47789e 34 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average,per Resolution 17-08. Page 70 2023 Master Fees and Charges-Attachments Appendix 934 Fast-Food Restaurant with Drive-Through 1,000 SFGFA 417,049 125,115 394,559 118,368 937 Coffee/Donut Shop with Drive-Through 1,000 SFGFA 638,047 191,414 603,61.0 181,092 938 Coffee/Donut Kiosk 1,000 SFGFA 174,759 582,530 165,335 551,116 944 Gasoline/Service Station VFP 33,693 112,310 ;1474 106,251 945 Gasoline/Service Station with Convenience Market VFP 39,597 11,879 37,462 11,239 946 Gasoline/Service Station with Car Wash VFP 69,507 20,852 65,759 19,728 Source:ITE Trip Generation Manual,9th Edition,compiled by FCS GROUP Abbreviations: SFGFA-square feet of gross floor area ODU-occupied dwelling unit VFP-vehicle fueling position Parks and Recreation Systems Development Charge Fee Methodology Residential Development a. An applicant for a building permit should complete a Lake Oswego Parks System Development Charges Application and SDC Calculation Worksheet indicating the type and number of new Dwelling Units to be included in the project. b. The Building Department enters the SDC rates per dwelling on the application form and calculates the SDCs to be paid by the Applicant. SDC Improvement Fee* Type of Dwelling Unit per Dwelling Unit $ 15,672 Single Family Dwelling Unit $ 16,565 Multi-Family Dwelling Unit $ 8,717 $ 9,214 II. Non-Residential Development a. An applicant for a building permit should complete a Lake Oswego Parks System Development Charges Application and SDC Calculation Worksheet indicating the type and number of square feet of building space for each non-residential use to be included in the project. Guidelines for the number of square feet required for each employee are included in the table on the following page for major Standard Industry Classifications. Where a proposed use does not specifically match one of the 2023 Master Fees and Charges—Attachments Page 71 Appendix classifications listed in the table,the listed classification which most closely matches the proposed use,as determined by the City Manager, may be substituted. b. The Building Department calculates the non-residential SDC Improvement Fee by: i. Dividing the building space(square feet)for each non-residential use in the development by the number of square feet per employee(from the guidelines in the Square Feet Per Employee table),and ii. Multiplying the result(from step 1) by the SDC rate Per New Employee($ 1,008 as of January 1, 2022).Any proposed use which constitutes 10%or less of the total building space should be considered an ancillary use and does not require a separate calculation; however, the building space for such uses must be included in the total for other non-residential uses. *Rates are based on Improvement Fee only(no Reimbursement Fee). III. Senior and Affordable Housing Definitions(Per Resolution 08-42): a. "Congregate Housing" is defined as"multi-unit housing with self-contained apartments that contain cooking facilities which support independent lifestyles for those that have life-function disabilities due to age, medical, or mental condition,which do not require residential care or skilled nursing services. Congregate housing provides varying levels of support services,such as meals, laundry, housekeeping,transportation, and social, recreation,cultural and education activities. The full range of services normally associated with residential care facility,are not provided in association with congregate housing." (Section 50.02.005 Definitions, City Code) Rate Provision: Charged at 50%of the Multi-Family residential rate. b. "Residential Care Housing" is considered to be non-residential in nature and is defined as a facility that houses and provides services for 6 or more persons who may have a range of physical and mental health problems, including chronic and debilitating conditions requiring assistance with daily activities. This term is synonymous with other terms such as"assisted living facilities"and "adult care housing" used to describe housing which provides the range of services described below. Living units within residential care housing do not have cooking facilities. A range of services is provided including staff supervised meals, housekeeping and personal care medication supervision, recreation, cultural,social activities and transportation. Residential care housing facilities may include housing for persons needing intermediate care. These are persons who do not require around-the-clock nursing, but who do need preventative care,therapies at levels less than continuous licensed nursing care or observation. Intermediate care emphasizes personal,social and emotional/mental health Page 72 2023 Master Fees and Charges-Attachments Appendix care, but involves the availability of 24 hour service with physicians and nurses in supervisory roles. Skilled nursing services, including convalescent care, may be provided as an accessory and subordinate use in conjunction with residential care facilities. (Section 50.02.005 Definitions,City Code). Rate Provision: Charged at 50%of the Non-Residential rate. SQUARE FEET PER EMPLOYEE (Recommended guidelines from Metro Employment Density Study) Standard Industry Square Feet Standard Industry Square Feet Classification(SIC)* Per Employee Classification(SIC)* Per Employee 1-19 590 37 700 Agriculture., Fish &Forest Services; Transportation Equipment Construction; Mining 20 630 40-42,44,45,47 3,290 Food & Kindred Products Transportation and Warehousing 22, 23 930 43,46,48,49 460 Textile&Apparel Communications and Public Utilities _ 24 640 50,51 1,390 Lumber&Wood Wholesale Trade 25,32,39 760 52-59 470 Furniture; Clay,Stone,&Glass; Misc. Retail Trade 26 1,600 60—68 370 Paper and Allied Finance, Insurance& Real Estate 27 450 70—79 770 Printing, Publishing&Allied Non-Health Services 28—31 720 80 350 Chemicals, Petroleum, Rubber, Leather Health Services 33,34 420 81-89 740 Primary&Fabricated Metals Educational,Social, Membership Services _ 35 300 90—99 540 Machinery Equipment Government 36,38 400 Electrical Machinery, Equipment * Source: U.S. Department of Commerce Standard Industrial Classification Manual IV. Modification, Expansion,or Redevelopment 2023 Master Fees and Charges—Attachments Page 73 Appendix If the development is a modification or expansion of an existing structure,or redevelopment of a property from a previous use,the SDC amount is based on the net increase in the number of Dwelling Units and/or employees,calculated as follows: a. Calculate an SDC on the development as though the entire development was subject to the SDC; b. Calculate an SDC on the existing development, before modification, expansion, or redevelopment,as though the existing development was subject to the SDC; c. Calculate the net SDC amount by subtracting the result of Step b from the result of Step a; if the result is zero or less than zero, no SDC is due. Page 74 2023 Master Fees and Charges-Attachments Appendix Master Fees and Charges Resolution RESOLUTION 224- 296 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO REVISING FEES AND CHARGES AND UPDATING THE LAKE OSWEGO MASTER FEES AND CHARGES SCHEDULE WHEREAS, the City has adopted from time to time various fees and charges for services; and WHEREAS,the City has found it necessary to add, revise, or delete various fees. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The revisions to fees and charges shown in Exhibit A are hereby adopted effective January 1, 2023, except where noted otherwise. Section 2. The revision to fees and charges shall be incorporated into the City's Master Fees and Charges schedule. Section 3. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 6th day of December, 2022. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Jason Loo5Evan Boone, City Attorney Pro Tern 2023 Master Fees and Charges—Attachments Page 75 ATTACHMENT 2 Preface City of Lake Oswego, Oregon The City provides a full range of municipal services to the community which includes police and fire protection, emergency medical services,traffic control, street maintenance and improvements,water,sewer, and stormwater management services, planning and zoning regulation, building inspection and regulation, parks and recreational activities, and community library service. This Master Fees and Charges booklet consolidates all City fees and charges, adopted by City Council resolution,for the various services that the City provides. Typically, it is updated annually and reflects all fee resolutions passed by Council during the year. For easy reference,the current Master Fees and Charges booklet, as well as versions from prior years, are available online at: www.lakeoswego.citv/fees. Fee Variance and Waiver Statement Based upon an unusual circumstance or event, past practices, demonstrated hardship, or public benefit,the City Manager is authorized to waive or decrease a fee(s) or charge(s), barring requirements by State or local codes, in a particular matter or establish a fee not yet authorized in this resolution. When a new fee is established by the City Manager it may be incorporated into this resolution. It shall be communicated to Council in writing to allow opportunity for comment. The request for a waiver or reduction must be in writing. If the City Manager or his designee agrees to said waiver or reduction, he/she may inform the City Council, in writing, of the request and his/her decision, except in minor matters such as non-profit signed fee waivers and City tree removal applications. Effective Dates and Resolution The 2023 Master Fees and Charges effective dates: • Utility Fees are effective July 1, 2023. • All other Fees are effective January 1, 2023 (unless otherwise noted) Resolution#22-29 —Adopting the 2023 Master Fees&Charges Cover photo of Sunset at Luscher Farm is courtesy of Coring Laws—the first place winner of the 2020 Lake Oswego photo contest in the category Places in Lake Oswego 2023 Master Fees and Charges Page 1 Table of Contents Section 1: General 5 Utility Rates: Water, Sewer, Stormwater, and Street 5 Business License and Liquor License 14 Dog License 15 Rights of Way Usage Fee 16 Franchise Fees 18 Public Records Fees 19 Miscellaneous Fees 20 Section 2: City Attorney's Office 21 Discovery Fees and City Code 21 Section 3: Fire Department 22 General Fees 22 Medical Services and Transport Fees 22 Emergency Services Rates 23 Fire and Life Safety Plan Reviews 23 Fire and Life Safety Inspections 23 Section 4: Library 24 General Fees 24 Section 5: Municipal Court 25 General Fees 25 Section 6: Parks& Recreation 26 Recreation Services and Activities 26 Indoor Tennis Center 26 Athletic Field User Charges 27 Adult Community Center Fees 29 Swim Park 30 Water Sports Center 30 Park Reservation Fees 31 Miscellaneous Fees 32 Commercial Photography and Filming in City Parks 32 Page 2 2023 Master Fees and Charges Table of Contents, continued Section 7: Police Department 33 Security Alarm Permit and Fees 33 Security Alarm Code Violation Fines 33 Police Reports 33 Miscellaneous Police Fees 33 Section 8: Public Works Support Services 34 General Fees 34 Section 9: Building Division 35 Building Permits 35 Electrical Permits 36 Mechanical Permits Residential 38 Mechanical Permits Commercial 39 Plumbing Permits 40 Grading and Fill Permits 41 Demo and Deconstruction Permits 41 Manufactured Home Permits 42 Manufactured Dwelling/RV Parks 42 Community Development Code Enforcement Charges 42 Record Retention and Archiving Fees 42 Research and Consultation Fees 43 Other Inspections and Fees 43 Additional Miscellaneous Fees 43 Refunds 43 Section 10: Engineering Division 44 Minor Utility Facilities, Installed or Constructed by Public or Private Entities 44 General Engineering Fees 44 Other Engineering Fees 45 Section 11: Planning Division 47 Ministerial Developments 47 Minor Developments 47 Sign Code Fees 48 2023 Master Fees and Charges Page 3 Table of Contents, continued Comprehensive Plan and Community Development Code Amendments 48 Major Developments 49 Sensitive Lands Overlay Districts 49 Fees Relating to Historical Preservation 49 Appeals 49 Pre-Application Conference/Consultations 79 Research Fees 50 Tree Code Fees 50 Fee Exemptions for Affordable Housing 51 Other Planning Fees 51 Section 12: Systems Development Charges 53 Systems Development Charges 53 APPENDIX Systems Development Charges Methodologies 59 2023 Master Fees and Charges Resolution 69 Page 4 2023 Master Fees and Charges Section 1: General General Utility Rates: Water, Sewer, Stormwater, and Street (LOC 37 and 38) Water and sewer charges for customers outside of the City may be set by specific agreement. For customers outside the City(including Forest Highlands Water District), but not covered by a special agreement,the charge is 150%of standard "in-City" rates. For bulk water users,the City Manager may set"peak"season rates. (LOC 38.04.015) The utility user charge shall be due and payable on the date specified on the bill,and shall be delinquent thereafter.A late charge shall be imposed on delinquent utility user charges in addition to the amount billed. (LOC 38.06.030) A late charge of$5 may be assessed for utility bills not paid within 30 days after billing. If the utility bill is$200 or more,the late charge is 2.5%of the total amount due.The late charge is divided proportionately among the amounts due for water,sewer,stormwater,and street fee and becomes part of the total user charge amount due for each utility. Lake Oswego's Typical Monthly Utility Bill $220 $200 $188.38 $180 $176.91 $160 $155.41 $160.15 $164.83 5170.52 $146.38 $150.78 $140 135.61 $140.85 $120 • • • • • • • • $100 $80 . . . . . . . . . $40 $40 . . . . . . . . . $20 . . . . . . . . . $0 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 ■Water 51.16 53.46 55.88 56.96 58.14 59.32 60.51 61.73 62.97 64.22 ■Sewer 64.42 66.37 68.39 70.45 72.56 74.72 76.93 79.97 83.10 86.32 ■Stormwater 11.76 12.58 13.46 14.40 15.41 16.49 17.64 18.87 20.19 21.60 ■Street Maintenance 8.27 8.44 8.65 8.97 9.30 9.62 9.75 9.95 10.65 16.24 Based on typical use for a single-family home-10 ccf for water and 8 ccf for sewer Past and projected average utility rate increases 7/1/18 7/1/19 7/1/20 7/1/21 7/1/22 7/1/23 7/1/24* Water 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Sewer 3.0% 3.0% 3.0% 3.9% 3.9% 3.9% 3.9% Stormwater 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Street maintenance 3.7% 3.4% 1.3% 2.0% 7.0% 50.9% 3.0% Average increase of 3.1% 3.0% 2.9% 3.5% 3.7% 6.5% 3.9% total utility bill *Adopted rates will be implemented the first full billing cycle following the effective date. 2023 Master Fees and Charges Page 5 Section 1: General Components of the Typical Monthly Lake Oswego Utility Bill $100 $90 $80 $70 $60 - - ��- 41111111111 - $50 $40 $30 $20 . . a • • - • - • • -I $10 �i $0 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 •Water ii Sewer - - -Stormwater --- Street Maintenance Comparison of Neighboring Cities'Typical Monthly Utility Bills Based on a September 2022 survey of typical single-family homes in other Portland metropolitan area cities. $300 $250 - - $248 $200 n $188 $167 $154 $158 $150 <1 df. <iqc $137 $141 $128 $121 $100 $50 5- LAKE Tualatin Gresham Hillsboro West Linn Beaverton Sherwood Oregon City Milwaukie Wilsonville Tigard OSWEGO Portland •Water 44.62 58.74 51.86 38.69 67.40 66.83 49.28 44.31 60.43 79.34 64.22 117.01 `•Sewer 54.44 38.84 54.13 51.88 57.24 50.63 63.51 67.90 72.94 55.47 86.32 98.80 •Stormwater 11.11 14.86 13.00 8.65 12.46 17.49 11.72 30.20 11.90 15.64 21.60 31.20 •Street 6.22 - 9.11 16.01 - 4.75 15.07 5.25 9.64 7.96 16.24 - ■Other 5.00 15.00 - 20.22 - 1.31 6.50 5.84 2.89 8.28 - 0.97 Page 6 2023 Master Fees and Charges Section 1: General Water Rates 1. Water connection charger-this charge is in addition to the Water SDC fee, if applicable (LOC 38.10.113). Meter size larger than 2"are charged at cost and materials plus 20%overhead ($2,740 minimum). NOTE: If the water connection needs to be made on a moratorium street(one that has been paved within the past five years),the cost for the pavement restoration is charged at cost and materials plus 20%overhead. Meter Size Charge 5/8"-3/4" $ 917 1" $ 1,306 1 1/2" $ 3,290 2" $ 3,682 2. Monthly water standard minimum and volume charges. a. Standard minimum monthly water rates for customers within the City. LOC 38.06.020(2a). For all meter sizes: 7/1/21 7/1/22 7/1/23 Single family residential customers $28.79 $29.37 $ 29.96 Multi-family customers-First unit $31.43 $32.06 $ 32.70 Multi-family customers-Each additional dwelling unit $28.36 $28.93 $29.51 Meter Non-residential Services Irrigation customers Size 7/1/21 7/1/22 7/1/23 7/1/2021 7/1/2022 7/1/2023 5/8"-3/4" $31.43 $32.06 $ 32.70 $28.79 $29.37 $29.96 1" $39.84 $40.64 $ 41.45 $36.49 $37.22 $37.96 1 1/2" $47.40 $ 48.35 $ 49.32 $43.44 $44.31 $45.20 2" $71.74 $73.17 $ 74.63 $65.71 $67.02 $68.36 3" $80.54 $82.15 $ 83.79 $73.83 $75.31 $76.82 4" $ 104.88 $ 106.98 $ 109.12 $96.12 $98.04 $ 100.00 6" $ 128.99 $ 131.57 $ 134.20 $ 118.19 $ 120.55 $ 122.96 8" $ 194.19 $ 198.07 $ 202.03 $ 177.93 $ 181.49 $ 185.12 10" $224.15 $228.63 $ 233.20 $ 205.41 $209.52 $213.71 12" $317.19 $323.53 $330.00 $ 290.64 $296.45 $302.38 b. Volume charges in addition to charges in 2a. USAGE:Per 100 cubic feet(ccf)2 7/1/2021 7/1/2022 7/1/23 Single family residential customers: Tier 1: 0- 8 ccf monthly $3.03/ccf $3.09/ccf $3.15/ccf Tier 2: 9-16 ccf monthly $4.35/ccf $4.44/ccf $4.53/ccf Tier 3: over 17 ccf monthly $8.15/ccf $8.31/ccf $8.48/ccf Multi-family customers $3.49/ccf $3.56/ccf $3.63/ccf Non-residential customers $3.94/ccf $4.02/ccf $4.10/ccf Irrigation customers $6.24/ccf $6.36/ccf $6.49/ccf 1 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average. 2 Based on water delivered during the period between meter read dates. 2023 Master Fees and Charges Page 7 Section 1: General 3. If a customer's water is turned off because of noncompliance with the proper use of water or for non- payment of utility bills,a charge of$60 will be assessed:$30 for turning the water off and another$30 for a water turn-on. (LOC 38.16.170). The City shall turn off and turn on the customer's water supply at the customer's request.The City shall provide this service for free during working hours one time each calendar year.The City shall charge for additional requests and service during non-working hours except in cases of emergency. (LOC 38.16.175) For customer turn off and turn on requests,after the first turn off then on request in a calendar year,a charge of$60 will be assessed:$30 for turning the water off and another$30 for a water turn-on. There is a charge for reading meters or making service turn-ons or turn-offs at other than regular working hours. In order to suit the convenience of water purchasers,whenever a City employee is required to read a meter or make a water service turn-on or turn-off during hours other than the regular work hours established for City employees, a flat charge of$80 shall be required for such service, in addition to all other charges provided for in this resolution,to be payable as other charges for water services. 4. Rates for the temporary use of a fire hydrant include a$50 installation fee, a$10 per day charge for meter rentals with a maximum charge of$50 per month, plus the usage fee for water based on non-residential water rates. In addition,a$475 refundable deposit will be collected. The deposit is refundable if the meter is returned in good condition and fees have been paid in full. 5. Failure to test backflow prevention assemblies between January 1 to July 15 and submit the test results by July 25 shall be cause for the City to arrange for and conduct the required test.The cost of such a test shall be added to the customer's monthly utility bill at the actual incurred cost plus overhead utilizing a billing multiplier of 2.4 times direct costs. (LOC 38.12.126). 6. If the City is requested to conduct a fire flow test,a flat fee will be charged for each test. (See Section 3). Page 8 2023 Master Fees and Charges Section 1: General Water Rate History- Monthly Typical Typical water Effective Fixed Usage usage in portion % Date Rate Rate ccf of bill change 7/1/2014 $23.88 $2.51/$3.60 10 $51.16 6% 7/1/2015 $24.96 $2.62/$3.77 10 $53.46 4.5% 7/1/2016 $26.08 $2.74/$3.94 10 $55.88 4.5% 7/1/2017 $26.61 $2.79/$4.02 10 $56.96 2% 7/1/2018 $27.14 $2.85/$4.10 10 $58.14 2% 7/1/2019 $27.68 $2.91/$4.18 10 $59.32 2% 7/1/2020 $28.23 $2.97/$4.26 10 $60.51 2% 7/1/2021 $28.79 $3.03/$4.35 10 $61.73 2% 7/1/2022 $29.37 $3.09/$4.44 10 $62.97 2% 7/1/2023 $29.96 $3.15/$4.53 10 $64.22 2% Fixed portion of Monthly Water Bill $35 $30 $25 $105 $10 • - $5 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Water Usage Rate per ccf $9 $8 $7 $6 $5 $4 I. $3 $2 I I $1 I III 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 •Tier 1: 0-8 ccf/month Tier 2:9-16 ccf/month •Tier 3:over 16 ccf/month 2023 Master Fees and Charges Page 9 Section 1: General Sewer Rates 1. Sewer monthly rates for customers within the City,served by the City,and outside Clean Water Services (CWS)shall be charged the following rates for sewer service LOC 38.06.020(2b): Residential for all meter sizes: 7/1/2021 7/1/2022 7/1/23 First dwelling unit $61.73 $64.14 $66.64 Each additional dwelling unit $55.69 $57.86 $60.12 Meter Non-residential services Size 7/1/21 7/1/22 7/1/23 5/8"-3/4" $ 55.07 $ 57.22 $ 59.45 1" $ 69.71 $ 72.43 $ 75.25 1 1/2" $ 82.88 $ 86.11 $ 89.47 2" $ 125.40 $ 130.29 $ 135.37 3" $ 140.82 $ 146.31 $ 152.02 4" $ 183.30 $ 190.45 $ 197.88 6" $ 225.49 $ 234.28 $ 243.42 8" $ 268.06 $ 278.51 $ 289.37 10" $ 310.60 $ 322.71 $ 335.30 12" $ 437.77 $ 454.84 $ 472.58 USAGE: Per 100 cubic feet(ccf)of average winter water usage 7/1/21 7/1/22 7/1/23 Residential customers $2.28/ccf $2.37/ccf $ 2.46/ccf Non-residential customers $3.43/ccf $3.56/ccf $3.70/ccf a. The above Sewer Usage Rate per 100 cubic feet of average monthly water consumption is based on a customer's average water use during three applicable winter billing cycles. If the full three winter billing cycles are not available,whatever billing record is available shall be used for the computation. b. Where no average winter water usage is available or where it is deemed inappropriate to use in some unusual circumstance for residential, use the standard City-wide average of 8ccf per month multiplied by the standard sewer rates listed above. c. The monthly sewer utility user charge for property within the City and served by Clean Water Services (CWS)of Washington County shall be equal to the monthly service charge established by the agency for similar uses served by the Agency system.The City Manager shall keep on file for public inspection a copy of the current rate structure. Clean Water Services Charge 7/1/20 7/1/21 7/1/22 7/1/233 CWS Sewer-fixed base charge $30.03 $31.38 $32.64 n/a CWS Sewer-usage charge $ 1.99 $ 2.08 $ 2.16 n/a 3 Not known at this time,usually becomes available on June 1st. Page 10 2023 Master Fees and Charges Section 1: General 2. If the City is requested to conduct a sewer connection verification test,a fee of$60 will be charged for each test. Homeowners requesting the test and residing at the residence are exempt from this fee. 3. A line charge shall be assessed upon connection to portions of the sewer system. The City Engineer is authorized to establish additional benefited project areas upon completion of new projects that are constructed under the City's Sewer Extension Program. Customers within the project area shall be assessed the line charge as a condition of receiving a connection permit. The line charge will be reviewed annually and adjusted to reflect actual construction costs of eligible projects or the change in the Engineering News Record Construction Cost Index(20-City Average)as published in October of the preceding year. The charges shown below are for eligible projects already completed through the date of this resolution: a. For the following project areas,the cost per single family connection $ 27,347 4 Sundeleaf Drive Deemar Way Country Club Road Mardee Avenue Bryant Road/Old Gate Road Stonebridge Way Jean Road Upper Drive west of Bryant Carman Drive b. A multiple of the above fee in 3a with the multiplier equal to the number of single family connections that could be developed on the subject property under R-5 zoning,as determined by the City Engineer.4 4. Special Sewer Connection Charges: a. Fairway Road Project (pursuant to Ordinance#2262) $ 46,745 5 b. Rivergrove Sewer Connection Charges(pursuant to Zone-of-Benefit [ZOB] Ordinance#2352) Refer to final ZOB ordinance for fees by lot. Various 5 4 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average. Amount is rounded to the nearest dollar. 5 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for Seattle. Amount is rounded to the nearest dollar. Note: For items 3 through 4,SDC charges may apply and are in addition to the line charges shown. 2023 Master Fees and Charges Page 11 Section 1: General Stormwater Rates 1. The stormwater management utility user charge shall be as follows{LOC 38.06.020 2(c)}: a. Each customer using a location for a single-family home or a duplex shall be charged the fee as shown in the table below. b. All other parcels shall be charged per the table below per Equivalent Service Unit(ESU).Total ESUs charged is determined by dividing the total impervious area by 3,030 and rounding to the nearest whole number. 7/1/21 7/1/22 7/1/23 Fixed monthly rate $ 18.87 $ 20.19 $ 21.60 2. Tampering Fine.The fine for tampering with the City utility system shall be equal to the total of the cost of correcting the tampering, plus any utility fee revenue estimated by the City to have been lost or affected by the tampering,and a$100 fine. (LOC 38.26.915). Page 12 2023 Master Fees and Charges Section 1: General Street Maintenance Fee (LOC 37) LOC 37.02.015 A Street Maintenance Fee was established by Ordinance No. 2373 in an amount to be adjusted from time to time, by resolution of the City Council. The fee is based upon the relative direct and indirect use of,or benefit from,the City street system that results from activities within the City, and shall be imposed upon the persons responsible for each developed property upon which such activities occur. LOC 37.02.020 All funds collected pursuant to this Chapter shall be used to pay costs of operation, maintenance, repair, engineering,improvement, renewal, replacement and reconstruction of the City street system. LOC 37.04.010 The Street Maintenance Fee shall be billed and collected with and as part of the combined utility user charge billing pursuant to LOC 38.06.020 and LOC 38.06.030. In the event funds received from the City's utility billings are inadequate to satisfy in full all of the water,sewer,stormwater, and street maintenance fees,credit shall be first given in this order: street maintenance fee,stormwater,sewer, and then water. Rates6 and Effective Dates(Per Resolution 10-19 and 10-20): a. Residential groups will be billed 100%of the following per resident fees monthly: Effective Effective Effective July 1,2021 July 1,2022 July 1,2023 Single family $ 9.95 $ 10.65 $ 16.07 Multi-family(per unit) $ 7.11 $ 7.61 $ 11.48 b. Non-Residential groups will be billed the following fees monthly, multiplied by their square footage: Effective Effective Effective July 1,2021 July 1,2022 July 1,2023 Group I $ 6.08 $ 6.51 $ 9.82 Group II $ 13.69 $ 14.65 $ 22.11 Group III $51.12 $54.70 $ 82.55 General"Group"classification defined as: Group I: less than 29 vehicle trip miles per day, per 1,000 sq ft Group II: from 29 to 90 vehicle trip miles per day, per 1,000 sq ft Group III: greater than 90 vehicle trip miles per day, per 1,000 sq ft 6 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average. Per Resolution 10-20,index adjustment shall not be less than a two percent increase or more than a seven percent increase. The increase this year of 50.9%includes both an increase of 5.7%for CCI as well as for an increase of 45.2%or$1.5M for annual pathway funding. 2023 Master Fees and Charges Page 13 Section 1: General Business License and Liquor License Business License A business with anticipated or established gross revenue during a calendar year of no more than $1,000 and at least 50%owned by a person under 19 years of age, are exempt from the following annual business license fees (LOC 20.02.025): 3 or fewer 4—10 11 or more Business License Fees employees employees employees Initial issue fee $80 $ 110 $ 150 Renewal fee received on or before renewal date $64 $ 84 $ 110 Renewal fee received after renewal date $80 $ 110 $ 150 Additional review fee' $20 $ 30 $ 45 1. Renewal Period: Applications for new business licenses should be submitted at least 30 days before the business opens. New business licenses are in effect for the full twelve months after the month of initial issuance. They are renewed annually thereafter. 2. Appeal Fees: Appeal of issue, denial,suspension, or revocation of license $200 3. Temporary Business License: License shall be valid for no more than two successive weeks during a calendar year.They are non- renewable with a minimum fee of$25 per week(or portion thereof)and a maximum fee of$50 per two-week period. Applicants are restricted to two temporary licenses per year. 4. Business License Violation Fee $ 550 Liquor License The Oregon Liquor Control Commission (OLCC)solicits the City's recommendation on applications for new, renewed,or changed liquor licenses.The City will no longer charge a fee for this service. 'Additional review fee applies to any application(initial or renewal)that requires additional review. Page 14 2023 Master Fees and Charges Section 1: General Dog License (LOC 31.02.115) Every person keeping a dog that has a set of permanent canine teeth or is 6 months old,whichever comes first, shall procure a license for the dog. The license must be procured by paying the following fee to the City, not later than 30 days after the person becomes keeper of the dog. A dog license shall be valid for up to 1,2,or 3 years, and shall expire on the appropriate month end of the respective year.To stay within State Law, no license may be issued with an expiration date that is beyond the end of the month of the applicable rabies vaccination expiration date. Licenses are not prorated for partial years. Expires on the appropriate month end Dog license fees One year Two years Three years Rabies Infertile $30 $60 $90 vaccination Fertile $50 $100 $150 required Delinquent license charge(after 2mo. past due) $20 plus license fee Replacement dog tag $ 5 Dog impounded without license License fee plus impoundment fee Impoundment fee(first pickup) $30 Impoundment fee(additional within 90 days) $60 Shelter fee Set by Clackamas County Dog Control Shelter Dog license exceptions 1. Seeing-eye or other assistance dog: No fee is charged for certified seeing-eye or other assistance dogs as defined in ORS 346.659A,such as"in-training", hearing-ear,or other assistance types recognized by a qualified organization. 2. Rabies vaccination due to medical reasons: No rabies vaccination certificate is required as long as(1)the examining veterinarian certifies that the dog should be exempted from the rabies vaccination due to medical reasons and (2)states whether the reason is permanent or the date when exemption ends. 3. Kenneled for commercial sale(and not at large): The fee for a dog that is kept primarily in kennels for commercial sale(and not permitted to run at large)as part of a dog breeder's inventory is$0; a dog that is kept primarily in kennels(and not permitted to run at large), but is removed from the dog breeder's inventory is$5. The keeper must provide evidence that the keeper is a dog breeder and that the dog is a part of the breeder's inventory and/or is kept primarily in kennels for commercial sale and not permitted to run at large. 4. New resident or new dog: New dogs are required to be licensed within 30 days of the owner becoming a resident,of acquisition,or of first rabies shot,and for a one,two or three year license,depending on the expiration of the rabies shot.After an additional 60 days,the delinquent license charge is added to the regular license fee. 5. New dog licensed elsewhere: No fee is charged to owners of new dogs currently licensed elsewhere, but are required to register the dog and obtain a City of Lake Oswego dog tag. 2023 Master Fees and Charges Page 15 Section 1: General Rights of Way Usage Fee On January 2,2019,the Lake Oswego City Council adopted Ordinance 2804,adding Lake Oswego Code Chapter 51 ("Utilities Facilities in Public Rights of Way").Chapter 51 established uniform regulations for utility operations in the City's right of way, as well as a licensing and registration process that replaced individually negotiated franchise agreements. Fees associated with Ordinance 2804 and Chapter 51 of Lake Oswego City Code were established via Resolution 19-03,also adopted January 2, 2019. Utility Service Annual Rights of Way Usage Fee* Electric 5%of gross revenue Natural Gas 5%of gross revenue Cable 5%of gross revenue,or maximum amount permitted by applicable law Communications 5%of gross revenue, $3.38 per linear foot of utilities in the rights-of- way,or a minimum annual fee of $5,628,whichever is greater; or the maximum amount permitted by applicable law. The per-linear-foot fee and the minimum fee shall increase 3% annually on January 1st of each year, beginning January 1, 20208 Any utility operator that does not Based on Total Linear Feet of Utility Facilities in the Rights-of-Way: earn gross revenue within the City. Up to 5,000: $6,753 5,001-10,000: $9,004 10,001-20,000: $13,505 More than 20,000: $22,511 The minimum fee shall increase 3%annually on January 1st of each year, beginning January 1,2020. "Gross Revenue" means any and all revenue,of any kind, nature or form without deduction for expense, less net uncollectibles,derived from the operation of utility facilities in the City,subject to all applicable limitations in federal or state law. Rights of Way License Application fee $250 for a five-year license Rights of Way Annual Registration fee $150 * Government provided water,sewer,and stormwater utilities are not charged this fee. 8 Fees listed incorporate 3%escalator as of January 1,2021 Page 16 2023 Master Fees and Charges Section 1: General Attachment Fees As per City of Lake Oswego Ordinance 2820 and established in Resolution 19-03,wireless providers that deploy infrastructure within the city right of way are subject to the following fees: Wireless Facility permit fee, charged for each wireless facility $996.19 per application application submitted to the City Additional attachment fee, if placed on City owned pole $868.88 annually Additional fee for optional permit pre-application meeting $533.63 per occurrence Additional fee for knockdown of any pole with wireless facility $440.27 per occurrence attachment All fees shall increase 3%annually on January 1st of each year, beginning January 1, 2020 9 9 Fees listed incorporate 3%escalator as of January 1,2022 2023 Master Fees and Charges Page 17 Section 1: General Franchise Fees (as set by franchise agreements) Electricity and Natural Gas Portland General Electric Franchise fee: 3.5%of defined gross revenue Expires January 17, 2023 (Ordinance 2610) Garbage/Solid Waste Republic Services Franchise fee: 5%of gross cash receipts Expires December 13, 2022 (Ordinance 2600) Cable Comcast(MACC) Ziply Fiber(MACC) Franchise fee: 5%of gross revenue Franchise fee: 5%of gross revenue Expires June 30,2025 (Ordinance 2681) Expires May 25, 2022 (Ordinance 2486) Telecommunication Services Clackamas County Astound Broadband No franchise fee(City receives use of 4 strands of Franchise Fee:A minimum of$1,500 per quarter fiber) Expires August 4,2025 (Ordinance 2691) or 5%of gross revenue—whichever is greater Expires December 17, 2025 (Ordinance 2693) Page 18 2023 Master Fees and Charges Section 1: General Public Records Fees" 1. Copies of finance documents: Biennial Budget $25 per copy Available online Annual Audit(Comprehensive Annual Financial $25 per copy Available online Report) Biennial LORA Budget $ 5 per copy Available online Annual LORA Audit(Year-end Financial Report) $ 5 per copy Available online 2. Copies of planning and engineering documents: Capital Improvement Plan (CIP) $56 per copy Available online Community Development Code(City Code Ch 50) $64 per copy Available online Comprehensive Plan $56 per copy Available online Public Facilities Plan $29 per copy Available online Public Facilities Plan Appendix $56 per copy Available online Neighborhood Plans $ 19 per copy Available online 3. Copies of maps: Zoning map $20 per copy Available online Comprehensive Plan map $20 per copy Available online City Limits map $20 per copy Available online City Atlas with binder $50 per copy City Atlas(update w/o binder) $0.25 per page 4. Copies of Lake Oswego City Code: Copies of Lake Oswego City Code— $55 Available online excludes Ch 50(no binder) Copies of City Code in PDF format(CD) $20 Available online Copies of Community Development Code $20 Available online in PDF format(CD) 5. Copies of community surveys $ 10 per copy Available online 6. General service copies $0.25 per page 7. Flash Drives $ 8 8 MB $ 9 16 MB $ 13 32MB 8. Records research $25 per 15 minutes/request(minimum $25) plus copies and materials charges 9. Blueprints $ 1 to$7 depending on map size plus $0.50 to$3.50 for overlays 10 Unless otherwise specified under individual department section. 2023 Master Fees and Charges Page 19 Section 1: General Miscellaneous Fees 1. Employment application fee(including assessment tools&testing): Time&materials, not to exceed$25. 2. Administration Fee of 20%for insurance claims related to damage to City property. 3. Use fees(as shown in the Administrative Procedures Manual, Procedure No.2): First use of City facilities shall be by City or other governmental entities.These use fees will be applicable to private parties using City facilities. Fee will include, but is not limited to,a facility supervisor fee,a janitorial fee, and a building use fee.A security and/or cleaning deposit may also be required. Fee may be waived at the discretion of the City Manager, barring requirements by State or local codes. a. Facility supervisor fee: Based upon employee's hourly rate plus benefits and applicable overhead charges. If overtime is involved,the overtime rate will be charged. b. Janitorial fee: Hourly rate plus benefits of the custodial staff and applicable overhead charges will be charged to the user. c. Building use fee: Community Room (Council Chambers and Courtroom)$100 for the first hour and$50 per additional hour Conference Room $50 for the first hour and$25 per additional hour Park facilities have separate fees,see Section 6. 4. Request for construction contract bidding documents: As established in the Invitation to Bid. 5. Filming permit processing fee(LOC 20.06.400) $ 1,000 Filming permit processing fee appeal $ 100 See Commercial Filming in City Parks in Section 6 for additional fees(page 33) 6. Lien search fee Initial search per tax lot $58 for initial search Subsequent search of same tax lot $ 15 for next 90 days 7. NSF check charges $20 for first offense $35 for repeat offenses 8. Parking stall fee $ 1 per hour per stall (Stalls could be located in public right-a-way or public parking lots) 9. Passport Fees made payable to U.S. Department of State a. For"minor"applications(under 16 years old) $ 80 b. For"adult"applications(16 years or older) $ 110 All passport fees are c. To EXPEDITE any passport application ... add $ 60 set by the U.S. d. For"minor" Passport Card only(under 16 years old) $ 15 Department of State e. For"adult" Passport Card only(16 years or older) $ 30 10. Passport Fees made payable to"City of Lake Oswego" a. For regular passport applications $ 35 per passport application b. For Passport Card applications $ 35 per PASS Card only Only one fee charged if applying for both 11. Passport photo fee $ 15 per set of two Page 20 2023 Master Fees and Charges Section 2: City Attorney's Office City Attorney's Office The following fees shall be charged for the services of the City Attorney's Office: Discovery Fees 1. Copies up to 10 pages $ 15 Each additional page $0.25 2. Audio and video copies $50 first DVD/CD/USB $ 15 each additional copy 3. Review and Redaction of Audio and $60/hour,after first 30 minutes(billed at 15-minute increments) Video 4. Copies of photographs $ 1 per letter-size page(4 color print to a page) $50 burned to CD(for up to 30) 5. Flash Drives $ 8 8 MB $ 9 16 MB $ 13 32MB City Code 1. See Section 1:General, Public Record Fees,on page 19. 2023 Master Fees and Charges Page 21 Section 3: Fire Department Fire Department The following fees shall be charged for the Fire Department activities of the City.Any non-listed expenses to provide services in Section 3 will be charged at cost. General Fees 1. Fire and Inspection Reports a. Reports up to 10 pages $25 Each additional page over 10 $0.25 b. Additional research time past first 15 minutes $25 per 15 minutes charged to nearest quarter hour. 2. Fire Investigation Information and Other a. Narrative report up to 10 pages $25 Each additional page over 10 $0.25 b. Digital disk copies $25 Each additional copy same disk $ 16 Plus charge for each picture $0.25 c. Photo log $ 25 each d. Staff time past first 15 minutes charged to the $25 per 15 minutes nearest quarter hour 3. Non-listed expenses to provide services in Section 3 Charged at cost Medical Services and Transport Fees 1. Advanced Life Support Treatment and Transport $1,448.09 (+mileage) 2. Non-Emergent Transport ALS(+mileage) $991.52 3. Non-Emergent Transport BLS(+mileage) $667.68 4. Treatment without Transport(per hour, rounded to $316.35 the quarter hour; 1 hour minimum,) plus supplies used at cost 5. Emergent Patient-Loaded Milage $30.33 per mile 6. Non-Emergent Patient-Loaded Mileage $23.28 per mile (Mileage charges begin at the location of the emergency/incident scene and end at the destination facility,and are rounded up to the next tenth of a mile.) 7. Ambulance/Medical Standby Fees (Standby fees are assessed on an hourly bases from the time personnel arrive at the event until the conclusion of onsite functions in%hour increments.) a. Paramedics(2 paramedic minimum, 3 hour $67.11 per paramedic per hour minimum b. Ambulance $55 per hour c. Billing/Administration $ 100 Page 22 2023 Master Fees and Charges Section 3: Fire Department Emergency Services Rates 1. Apparatus costs: Per current Oregon Fire Service Mobilization Plan fee schedule. 2. Personnel costs: Fire employee's actual hourly rate plus benefits or the actual personnel costs to replace on-shift firefighters in their assigned capacity. 3. Dive team and boat team operations:Apparatus and personnel costs apply; plus$60 per hour for specialty equipment maintenance and miscellaneous costs associated with the use of specialty equipment. 4. Emergency standby for hazardous utility incidents where Fire needs to protect life and property: $289.81 per hour after the first half hour. 5. Non-emergency standby for special events:$289.81 per hour for Fire Apparatus 6. Calls for emergency services for accidents on highways, public right-of-ways, railways,or resulting from other transportation incidents exceeding 0.5 hours may be billed according to the current payment schedule in the Oregon State Mobilization Plan adopted by the Oregon State Fire Marshal's Office. Fire and Life Safety Plan Reviews 1. Preliminary water and emergency access evaluation for all pre-applications $ 70 2. Detailed water and emergency access evaluation for all development and building permit applications: a. Minor partitions(up to 3 lots) $ 140 b. Subdivisions $250 c. Commercial $250 d. All other applications requiring fire review $ 140 3. All fire code construction permits requiring fire review $250 4. All Fire Code Operational Permits $200 5. Mobile Emergency Responder Radio Coverage(MERRC) a. 0 to 50,000 sq.ft. $0.50 per sq.ft. b. Additional sq.ft.from 50,001 to 100,000 $0.30 per sq.ft. c. Additional sq.ft. exceeding 100,000 $0.10 per sq.ft. Fire and Life Safety Inspections 1. Initial inspection and 1st follow-up No fee 2. Each additional inspection, required for compliance $ 107 per hour 3. After-hours inspections $ 150 per hour(1 hour minimum) 4. Re-inspection fee for new construction after the second violation $ 107 per hour 2023 Master Fees and Charges Page 23 Section 4: Library Library The following fees shall be charged for the Library Department activities of the City: General Fees (LOC 16.08.310) 1. Uniform Library Network Fees Non-resident card $95 per family per year 2. Library Penalty Fees Lost and damaged library items Replacement cost, as determined by staff 3. Sale of withdrawn/surplus items Varies;typically$0.10-$3 4. Overdue fine $0.10 per item per day,with a$1 maximum fine per item $ 1.00 per item per day,with a maximum fine equal to the replacement cost of the item,for Library of Things material 5. Photocopy charges General photocopy charges $0.10 per page Reference collection photocopies $0.10 per page (first 5 pages are free) Black and white internet printing charges $0.10 per page(first dollar used in any combination of color and/or black&white is waived) Color internet printing charges $0.25 per page(first dollar used in any combination of color and/or black&white is waived) Page 24 2023 Master Fees and Charges Section 5: Municipal Court Municipal Court The following fees shall be charged for the Municipal Court activities of the City: General Fees 1. Delayed Payment Fee This fee is assessed in order to help defray the costs of deferred payment of fines. Duration of Payments Amount added to fine 0 to 60 days $ 0 Over 60 days $ 15 2. Vacate Fee $20 This is a fee charged when someone requests the Municipal Court Judge to review a file, change the status, and/or vacate a charge from the DMV record. 4. Fix-it-ticket Administrative Fee $35 This fee is charged when the citing officer has designated the citation as one that will be dismissed if proof of correction is provided before the initial appearance date. 5. Good Driver Deferred Sentencing Program Administrative Fee Fee shall be the equivalent of the reduced presumptive fine for the charged offense. 6. Seatbelt and Child Restraint Violation Deferred Sentencing Program Administrative Fee $ 100 7. Civil Compromise Administrative Fee $ 150 8. Court Appearance Audio Recording $25 each 9. Certified Copies of Court Documents $5 each 10. Copies up to 10 pages $ 15 Each additional page $0.25 2023 Master Fees and Charges Page 25 Section 6: Parks & Recreation Parks & Recreation The following fees shall be charged for the Parks&Recreation activities of the City: Recreation Services and Activities The services and activity programs within Parks&Recreation are designed to meet the expectations of the Lake Oswego community.A wide range of recreational activities are offered to all ages and ability levels.Services and activity programs are offered to families and individuals at an affordable price and well within market value. Fees Each division shall determine fees based upon marketability and associated expenses for the specific program or service. 1. Lake Oswego residents are given priority in registration and pricing for recreation services and activities. Non-residents are charged additional fees of up to 1.5 times the base activity rate. 2. Fees are designed to cover 100%of the expenses associated with activities. Factors included in rates are: Instructor wages and benefits,supplies/materials,entrance/admission fees, advertising,and transportation. 3. Contract service provision of activities include fees to cover total expense plus a program administrative percentage. Service providers are paid a negotiated sum per participant. 4. Lake Oswego Parks&Recreation (LOPR) Refund Policy • 100%refund to each registered and paid participant if LOPR cancels an activity,class or event. • 100%refund for an activity fee if refund is requested seven calendar days prior to start date of activity. • Refunds requested within seven calendar days prior to the start date of the activity are subject to$10 processing fee(fee applies to each activity withdrawal). • In lieu of a refund,the$10 processing fee is waived with an option for activity fee credit on customer account.All credits are non-refundable and applicable for LOPR activity registration or user fees. • After an activity start date(day of or after),only a prorated refund credit on customer account is issued. Exceptions to the refund policy may be made at staffs discretion depending upon extenuating circumstances. Indoor Tennis Center 1. Court Fees $24-$32/hour Seasonal $22-$26/hour 2. Activity Rates a. Staff Instructed Activities—Fees established by determining the instruction hourly rate charged plus an additional administrative program percentage determined by market. b. Private Lessons—Instructors who are employees of the City may teach private lessons. Instructors must pay the City for the use of the courts at the seasonal rate. c. Lake Oswego residents are given priority in registration and pricing for recreation classes and activities. Non-residents are charged additional fees of up to 1.5 times the base class or activity rate. Page 26 2023 Master Fees and Charges Section 6: Parks & Recreation 3. Card Key Fee—A non-refundable fee of$20 resident,$30 non-resident annually. 4. Additional Fees—The Tennis Center shall be able to add new activities or programs during the year in order to promote marketability of the facility.As with other activities,fees will be based on instruction hourly rate charged plus an additional program administrative percentage determined by market. 5. Room Rental Fees Dibbins Room Non-Profit up to 3 hours all Others Non-Refundable Cleaning Fee $10 $10 Non-Refundable Cleaning Fee (with Food) $25 $25 Refundable Deposit $25 $100 Hourly Usage Fee $25/Hour $50/Hour Exceptions to the rental policy may be made at staffs discretion depending upon extenuating circumstances. Athletic Field User Charges 1. Turf Field fees Natural Turf Artificial Turf Category Daytime With lights Daytime With lights Category 1 (LOPR Programs) No Charge No Charge No Charge No Charge Category 2(Recognized local youth $ 13/hr $ 18/hr $ 15/hr $ 20/hr organizations, LOSD) Category 3(locally sponsored) $30/hr $40/hr $30/hr $40/hr Category 4(non-local&for-profit) $80/hr $ 100/hr $80/hr $ 100/hr Category 1 Applies to all LORP&City of Lake Oswego affiliated activities. Category 2 Applies to recognized local youth organizations and Lake Oswego School District. • 70%of participants are local residents. Participants considered local residents have a local home address and/or attend a public school in the Lake Oswego School District. • Additionally,these Organizations must maintain a "good standing"with LOPR in order to remain in this category. • Organizations must be based in Lake Oswego. Local youth organizations under the Community Schools Program are included. Category 3 Applies to tournaments,events,camps,clinics, and activities that are hosted by local youth leagues/organizations. • This includes other School Districts, athletics/sport leagues,civic groups,churches, business organizations, neighborhood associations,and individual residents for non-profit purposes. 2023 Master Fees and Charges Page 27 Section 6: Parks & Recreation Category 4 Applies to all clinics,camps,tournaments,and activities hosted by non-local organizations. This category also applies to all for-profit entities, regardless of location address or local participation percentage. 1. League Cleaning&trash disposal fee $200 per session (Covers cost of trash pick-up on athletics fields over and above regular trash disposal) 2. Field light turn off fee: $50 per occurrence A field light turn off fee will be applied to billing when lights are not turned off by field users and must be turned off by City Staff.This fee applies in the following circumstances: a. Cancelled field use,without notification for the purpose of turning off field lights or to cancel requested field lights programming. b. Leaving field earlier than the scheduled reserved time without turning off lights. 3. Additional Fees: City may charge field use,without notification for the purpose of turning of turning off field lights or to cancel requested field lights programming 4. Tournament and Camp Refund • Tournaments and Camps will not be issued a refund or credit due to unused fields or hours • Cancellations made at least 7 days in advance will receive a full refund minus a $25 cancellation fee. 5. Field Preparation Fees Local Organizations: Baseball/Softball Fields No charge for initial set-up Additional lining$75* Soccer League Fields No charge for initial set-up Additional lining(large field) $200* Additional lining(small field) $200* Football Fields No charge for initial set-up Additional lining $200* *Subject to written approval by the Parks and Recreation Director or designee 5. Admission/Event Fees: Organizations which charge admission or event fees at any City athletic field must notify the Parks and Recreation Department ten days before the scheduled event and will be charged 10%of the gross income received.The group will be required to provide Parks and Recreation with financial records of their event within five working days after the completion of the event.Spectators who do not wish to pay admission or make a donation are to be ADMITTED FREE. 6. Drop-in gym programs $4 Resident $8 Non-resident Page 28 2023 Master Fees and Charges Section 6: Parks & Recreation Adult Community Center Fees 1. Human Services Programs a. A per participant donation may be suggested for specified human service programs. b. Fees are designed to cover up to 100%of the expenses associated with the Social Services trips and Respite Program. c. A$30-$50 per session (per participant) resident,$35-$55 per session (pre participant) non-resident fee is designed to cover direct expenses associated with the respite program. d. Classes and other programs generating revenue for another entity, but held at LOACC may be charged a per person fee. 2. Shuttle Bus Transportation to and from the Center. Suggested donation is$1 per one-way ride. 3. Refund Policy • 100%refund to each registered and paid participant if LOPR cancels an activity,class or event. • 100%refund for an activity fee if refund is requested seven calendar days prior to start date of activity. • Refunds requested within seven calendar days prior to the start date of the activity are subject to$10 processing fee(fee applies to each activity withdrawal). • In lieu of a refund,the$10 processing fee is waived with an option for activity fee credit on customer account.All credits are non-refundable and applicable for LOPR activity registration or user fees. • After an activity start date(day of or after),only a prorated refund credit on customer account is issued. 4. Trip Refund Policy Trip Refund Policy:There are no refunds for trips that include expenses prepaid by the ACC unless a replacement participant can be found.All other trips may be canceled with a refund per the L.O. Park&Recreation refund policy. 2023 Master Fees and Charges Page 29 Section 6: Parks & Recreation 5. Room Rental Fees11 Adult Community Center Non-Profit Organization All Others Up to 3 hours Oak/Acorn Rooms: Non-Refundable Cleaning Fee $25 $ 25 Non-Refundable Cleaning Fee(with food) $50 $50 Refundable Deposit $75 $200 Hourly Usage Fee $50/hr $ 100/hr Trillium/Hazel/Dogwood/Birch/Cedar/Madrone Rooms: Non-Refundable Cleaning Fee $ 10 $ 10 Non-Refundable Cleaning Fee(with food) $25 $ 25 Refundable Deposit $25 $ 100 Hourly Usage Fee $25/hr $50/hr TV $20 per use $20 per use Microphone $ 10 per use $ 10 per use Hybrid Equipment $20 per use $20 per use Podium $20 per use $ 20 per use After hour staff $25 per hour Exceptions to the rental policy may be made at staff's discretion depending upon extenuating circumstances. 6. Additional Fees The Adult Community Center shall be able to add new activities or programs during the year in order to promote marketability of the facility.As with other activities,the fee will be based on a base rate plus overhead. Swim Park Daily usage is free to local residents in compliance with an agreement between the Lake Corporation and the City of Lake Oswego Water Sports Center Lake Oswego Rowing Club Foundation has an agreement with the City to operate the Water Sports Center. User activity fees are set by the Lake Oswego Rowing Club Foundation. 11 Non-residents are charged fees 1.5 times the resident fees for all rental fees. Page 30 2023 Master Fees and Charges Section 6: Parks & Recreation Park Reservation Fees12 1. Facility Rental—Exceptions to Section 1, Miscellaneous Fees, page 20. Facility Rate I Rate II Rate III $ 100/3 Park Picnic Shelters $85/3 hrs hrs $ 190/3 hrs Millennium Park pergola area $ 110/hr $ 160/hr $460/hr Millennium Stage/grassy knoll $ 60/hr $ 110/hr $310/hr Foothills Park Pavilion $ 110/hr $ 160/hr $360/hr Foothills Amphitheater $ 110/hr $ 160/hr $310/hr Foothills Pavilion Grass Area $ 60/hr $ 110/hr $310/hr Foothills Viewing Dolphins $ 60/hr $ 80/hr $220/hr Roehr Park Amphitheater&Viewing $ 160/hr $230/hr $520/hr Dolphin Excursion boat dock—commercial docking $ 60/hr $ 80/hr $220/hr Non-shelter Parks Areas13 $ 60/hr $ 80/hr $ 220/hr Refundable damage deposit Park Shelters $ 100/use Premier Parks: Millennium Plaza Park, Foothills Park and Roehr Park $500/use Special Events $500/use Rate I: Open or closed to the public;events with no sales, no admission fees, no concession sales, no entry fees,and no pledges of future revenues; no sponsor signage allowed. Rate II: Open to the public;events which generate sales,admission fees,concessions, entry fees and/or pledges of future revenues;sponsor signage allowed. Rate Ill: Closed to the public; events which generate sales,admission fees,concessions, entry fees, and/or pledges of future revenues;sponsor signage allowed. 2. Food trucks with facility reservation $60/hr 3. Special Event Application Fees and Special Event Park Reservations • Special Event Application Fee-other than for City Sponsored Events Application must be received 60 days prior to the event. Fee is$150. • For reservations that are tied to a Special Event Permit that use park areas,standard Park/Premier Park fees apply and are in addition to the Special Event Fee. • Additional City Staff maybe needed to support an event. In such case there is an additional $150/hr per person for the need time at the event. 12 Non-residents are charged fees 1.5 times the resident fees for all rental fees. 13 Includes lawn areas,gardens,historical sites,or use of ball fields or parking lots for special events. 2023 Master Fees and Charges Page 31 Section 6: Parks & Recreation 4. Refund Policy • 100%refund of reservation fee if LOPR cancels the reservation. Shelter Reservation Refund: • If a reservation is canceled 14 days prior to reservation date,a full refund is given, less the$10 processing fee. • If a reservation is canceled less than 14 day prior to the reservation date only the refundable deposit will be refunded. Premier Park and Special Event Park Refund: • If a reservation is canceled 30 days prior to reservation date a full refund is given, less the$10 processing fee. • If a reservation is canceled less than 30 days prior to the reservation date 50%of the full payment will be refunded. The Special Event Permit Application fee is not refundable. Miscellaneous Fees 1. All Parks Plans $30 per copy 2. Research fee $25 per 15 minutes($25 minimum) plus copy and material charges Commercial Photography and Filming in City Parks See also Filming Permit in Section 1 for the additional processing fees, page 20. 1. Film/Video rate per venue a. One day fee-no park closure required $ 250 b. One day fee-park closure required $ 1,000 Damage deposit may be required,depending on scope of filming. 2. Still Photography rate per venue a. 1 to 5 hours $ 55 b. 6 to 24 hours $ 110 3. Annual Photo Pass(All Parks) $ 150 4. Long-term shoot:Any shoot over 24 hours will be considered a long shoot. Fees will be assessed for each 24 hour period. 5. Personnel Fees: City employees needed to assist with Special Events and/or Film Permits $105/hour/person,subject to availability. Page 32 2023 Master Fees and Charges Section 7: Police Department Police Department The following fees shall be charged for the Police Department activities of the City: Security Alarm Permit and Fees (LOC 20.08.606) Voluntary Annual Alarm Permit Fee $ 25 Security Alarm Code Violation Fines (LOC 20.08.612) Fines for excessive false alarms in a permit year shall be as follows: Second false alarm in any year $ 100 Third false alarm in any year $ 125 Fourth false alarm in any year $ 175 Fifth false alarm in any year $275 Sixth and any additional false alarms $425 Fines for excessive false alarms WITH a voluntary alarm permit shall be as follows: Third and succeeding false alarm in any year $ 100 Police Reports (LOC 14.06.220) 1. Copies up to 10 pages $ 15 Each additional page $0.25 2. 911 audio recording $50 per recording Audio and Video Copies $50 first recording(DVD/CD/USB)&$ 15 each additional copy CAD Incident Report $10 3. Review and Redaction of Audio and Video $60/hour, after first 30 minutes(billed at 15-minute increments) Miscellaneous Police Fees 1. Records research (LOC 14.06.220) $ 25 per 15 minutes($25 minimum) plus copy and material charges 2. Copies of photographs (LOC 14.06.220) $ 1 per color print $50(for up to 30) burned to CD, plus$ 1 each thereafter 3. Storage fee at P.I.T.for vehicles&equipment $50 per day 4. Hazmat quarantine/investigation $250 per day 5. Police impounded vehicle fee $350 per vehicle 6. Overtime charge*for special events requiring police services are determined based upon which of the following positions are utilized for a minimum of 4 hours: Community Services Officer(CSO), Police Officer,Sergeant, Lieutenant,and/or Captain. *Contact the Police Department for this charge. 2023 Master Fees and Charges Page 33 Section 8: Public Works Support Services Public Works Support Services The following fees shall be charged for the Public Works Support maintenance activities of the City: General Fees 1. Public facilities damage (street signs,water lines, etc.) Billed at cost plus 20%for overhead plus lost revenue 2. Sign installation for new subdivisions Billed at cost plus 20%for overhead Second inspection at cost plus 20%for overhead 3. Citizen-requested items(hydrant relocation,water service relocation, etc.) Billed at cost plus 20%for overhead Page 34 2023 Master Fees and Charges Section 9: Building Building Division A 12%surcharge fee as mandated by the State Building Codes Division is applied to all permit fees. The following fees14 shall be charged for the Building Division activities of the City(LOC 45.01.040): Building Permits Valuation is based on the tables referenced in Oregon Administrative Rule 918-050-0100 and 0110. 1. Total Valuation $ 1 to$2,000 $102.82 up to and including$2,000 $2,001 to$25,000 $102.82 for the first$2,000 plus$9.40 for each additional$1,000 or fraction thereof, up to and including$25,000 $25,001 to$50,000 $319.02 for the first$25,000 plus$6.75 for each additional $1,000 or fraction thereof, up to and including$50,000 $50,001 to$ 100,000 $487.77 for the first$50,000 plus$4.70 for each additional$1,000 or fraction thereof, up to and including$100,000 $ 100,001 to$500,000 $722.77 for the first$100,000 plus$3.00 for each additional$1,000 or fraction thereof, up to and including$500,000 $500,001 to$ 1,000,000 $1,922.77 for first$500,000 plus$2.55 for each additional$1,000 or fraction thereof, up to and including$1,000,000 $ 1,000,001 and up $3,197.77 for first$1,000,000 plus$1.65 for each additional$1,000 or fraction thereof 2. Minimum Structural Permit $102.82 Fee 3. Plan review fees 65%of structural permit fee 4. Fire&life safety review fee 40%of structural permit fee(on commercial only) 5. Other inspections — see also Other Inspection and Fees(pg.44) a. Inspections for which no fee is specifically indicated $ 102.82 per hour b. Additional plan review required by changes, additions,or revisions to plans $ 102.82 per hour 6. Phased Plan Review Phased Plan Review fees shall be$250 plus 10%of the total project building permit fee and shall not exceed$1,500 pursuant to the authority of OAR 918-050-0160.This is in addition to standard plan review fees. 14 The Building Division Permit Fees and Plan Review Fees were modified and increased in response to implementation of the State of Oregon Permitting System,per Resolution 20-27. 2023 Master Fees and Charges Page 35 Section 9: Building 7. Deferred submittals Plan Review The fee for processing and Plan Review of deferred submittals shall be 10%of the building permit fee, using the value of the particular deferred portion or portions of the project but not less than $275.This fee is in addition to standard Plan Review fees. Architects and Engineer's exemption for plan review of"conventional light frame construction" (allows architects and engineers to perform plan reviews in lieu of the jurisdiction) pursuant to the authority of ORS 455.628 8. Administration fee for processing and facilitating issuance $250 9. Commercial Fire Systems— based on valuation,see Structural Permit Fee Table 10. Residential Fire System —Standalone System, includes plan review Square footage Permit fee 0 to 2,000 $231.00 2,001 to 3,600 $313.50 3,601 to 7,200 $372.25 7,200 and above $437.25 11. Prescriptive Solar Panel Installation Permit— includes plan review(does not $ 125 include Electrical Permit)* 12. Non-Prescriptive Solar Panel Installation — See Building Permit Fee Valuation Schedule 13. Change of Occupancy $250 14. Temporary Certificate of Occupancy $ 125 per month *Fee is required by Oregon Administrative Rule#918-050-0180 Electrical Permits 1. New residential,one-and two-family dwelling unit 1,000 square feet or less $293.60 Each additional 500 square feet or portion thereof $ 59.80 Each manufactured home, modular dwelling service,or feeder $ 118.50 Limited energy $ 100.00 New multi-family largest unit is calculated as per square footage rates above and each additional unit calculated at 50%of the fee for the largest unit 2. Service or feeders: installations,alterations,or relocation 200 amps or less $ 175.05 201 amps to 400 amps $ 231.60 401 amps to 599 amps $349.05 600 amps $349.05 601 amps to 1,000 amps $524.10 Over 1,000 amps or volts $958.45 Reconnect only $ 110.00 Page 36 2023 Master Fees and Charges Section 9: Building 3. Temporary services or feeders: installations, alterations,or relocation 200 amps or less $ 102.20 201 amps to 400 amps $ 217.45 401 amps to 599 amps $ 293.60 600 amps $ 293.60 601 amps to 1,000 amps $ 430.00 Over 1,000 amps or volts $ 814.65 4. Branch circuits: new, alteration,or extension per panel With purchase of service or feeder, each $ 13.45 Without purchase of service or feeder First circuit $ 97.85 Each additional circuit $ 13.45 5. Miscellaneous(service or feeder not included) Each pump or irrigation circle $ 118.50 Each sign or outside lighting $ 118.50 Signal circuit(s)or a limited energy panel, alteration,or extension $ 118.50 Renewable energy for electrical systems-5kva or less $ 151.15 Renewable energy for electrical systems-5.01kva through 15kva $ 180.45 Renewable energy for electrical systems-15.01kva through 25kva $ 293.85 Renewable energy-solar generation over 25kva $ 293.85 +$ 11.74 (permit charge will not increase beyond the calculation for 100kva) per added kva Renewable energy for wind system-25.01kva through 50kva $ 587.75 Renewable energy for wind system-50.01kva through 100kva $ 1,175.55 Renewable energy for wind system-misc.fee, hourly rate $ 110.00 6. Each additional inspection over the allowable in any of the above, per $ 110.00 inspection -see also Other Inspections and Fees(pg.44) 7. Special inspections per hour $ 110.00 8. Master Electrical Permit-on time applications fee $ 100.00 9. Master Electrical Inspections-per hour $ 110.00 10. Initial Electrical permit plan review fee is 25%of the electrical permit fee. 11. Addition plan review-electrical-per hour $ 110.00 2023 Master Fees and Charges Page 37 Section 9: Building Mechanical Permits (Residential) Unit Fee Schedule 1. Furnace Less than 100,000 BTU input $36 Greater than 100,000 BTU input $36 2. For the installation or relocation of each floor furnace, including vent $36 3. Furnace/burner including duct work/vent/liner $20 4. For the installation or relocation of each suspended heater, recessed wall heater,or floor mounted unit heater $29 5. For the installation, relocation, or replacement of each appliance vent or chimney installed and not included in an appliance permit $20 6. For the repair,alteration,or addition of an Air Handler or Heat Exchanger up to 10,000 cfm $36 10,001 cfm and over $36 7. Wood or Pellet stove, including hearth and wall shield $36 8. Gas or wood fireplace insert $36 9. Pool or spa heaters/kilns $20 10. Flue vent for water heater or gas fireplace $20 11. Decorative gas fireplace $36 12. Oil tank/gas/diesel generators $21 13. Installation or relocation of domestic type incinerator $20 14. Hydronic hot water system $50 15. Ventilation fan connected to a single duct $ 14 16. Installation of hood served by mechanical exhaust, including ducts for hood $ 22 17. Range hood/other kitchen equipment $22 18. Heat pumps $50 19. Air conditioners $50 20. Mini split system $50 21. Evaporative cooler other than portable $50 22. Water heater includes vent/flue only $21 23. Repair, alteration,or addition to mechanical appliance including installation of $21 controls 24. Ventilation system not a portion of heating or air conditioning authorized by permit $21 25. Attic/crawl space fans $ 14 26. Radon mitigation $ 14 27. Clothes dryer exhaust $ 13 28. Ductwork-no appliance/fixture $20 29. Barbecue $21 30. Chimney/line/flue/vent $20 31. Other heating/cooling $21 Page 38 2023 Master Fees and Charges Section 9: Building 32. Other fuel appliance $21 33. Other environment exhaust/ventilation $21 34. Permit fees for fuel gas-piping shall be For each gas-piping system of one to four outlets $ 14 For each gas-piping system of more than four outlets, per outlet $ 2.20 35. Appliance or equipment regulated by code, but not classified in other appliance $21 categories 36. A minimum charge for mechanical permits $ 102.82 37. Each additional inspection over the allowable, per inspection —see also Other $ 102.82 Inspections and Fees(pg.44) 38. Residential Plan Review 25%of total permit fee Mechanical Permits (Commercial) Use this section for commercial installation, replacement,or relocation of non-portable mechanical equipment or mechanical work not covered previously. Indicate the value of all mechanical labor, materials, and equipment. Value Permit Fee Amount $ Less than$5,000 $ 102.82 $5,001 to$ 10,000 $ 102.82 plus$ 1.50 for each additional $ 100 over$5,000 $ 10,001 to$ 100,000 $ 177.82 plus$ 10.20 for each additional $ 1,000 over$ 10,000 $ 100,001 and above $ 1,095.82 plus$7.00 for each additional$ 1,000 over$ 100,000 Plan review Fees A mechanical plan review shall be paid.The fee is equal to 25% of the total permit fee. 2023 Master Fees and Charges Page 39 Section 9: Building Plumbing Permits (LOC 46.02) These fees do not apply when solely replacing fixtures without re-plumbing and/or relocating 1. Fixture fees are as follows—note,there is a minimum them (except for water heaters, item ee.). Residential Plumbing permit fee of$97 a. Roof Drains(commercial) $24 b. Absorption valve $24 c. Hose bibb $24 d. Backwater valve $24 e. Catch basin or area drain $24 f. Drinking fountain $24 g. Trench drain, per 100'or any portion thereof $ 102.82 h. Expansion tank $24 i. Fixture cap off $24 j. Storm water retention/detention tank/facility $24 k. Manufactured home utilities, per 100'or any portion thereof $ 102.82 I. Ice maker $24 m. Rainwater harvesting $24 n. Alternate potable water heating system $24 o. Other—plumbing $24 p. Septic abandonment $24 q. Interceptor/grease trap $24 r. Manhole $24 u. Sink/basin/lavatory $24 v. Swimming pool piping to backflow only per 100'or any portion thereof $ 102.82 w. Tub/shower/shower pan $24 x. Urinal $24 y. Water closet $24 z. Dishwasher $24 aa. Garbage disposal $24 bb. Clothes Washer $24 cc. Floor drain/floor sink/hub drain $24 dd. Sewer, per 100'or any portion thereof $ 102.82 ee. Water heater $24 ff. Water service, per 100'or any portion thereof $ 102.82 gg. Storm drain, per 100'or any portion thereof $ 102.82 hh. Sewage ejector pump and sump pump $24 ii. Primer $24 jj. Backflow prevention device or anti-pollution device $24 kk. Any trap or waste not connected to a fixture $24 II. Any other plumbing installation, not otherwise listed in this schedule, having a sanitary waste or potable water supply $24 mm. Re-piping of existing fixtures First fixture $ 17 Each additional fixture $ 10 Page 40 2023 Master Fees and Charges Section 9: Building nn. Minimum fee for plumbing permits—Commercial/Residential $ 102.82 2. For NEW one-and two-family dwellings only,the fees are per bathroom as follows (this fee includes 100 feet for each utility connection, hose bibbs, icemakers, underfloor low-point drains,and rain drain packages that include piping,gutters, downspouts,and perimeter system): a. One bath $333.50 b. Two baths $362.25 c. Three baths $402.50 d. Each additional bath/kitchen $ 130.80 3. Each additional inspection over the allowable, per inspection—see also Other $ 102.82 Inspections and Fees(pg.44) 4. Plumbing Plan Review-Add 30%of fees as calculated above for plan review, if required. 5. Commercial Plumbing-Medical gas fees: a. Medical gas permit fees shall be based on the value of installation costs and the system equipment, including but not limited to inlets,outlets,fixtures,and appliances, Med Gas permits are subject to the Commercial Plumbing minimum permit fee. Medical gas plan review —see Commercial Plumbing plan review. 6. Residential Fire System—Multipurpose/Continuous Loop system, includes plan review Square footage Permit Fee Amount 0 to 2,000 $231.00 2,001 to 3,600 $313.50 3,601 to 7,200 $372.25 7,200 and above $437.25 Grading and Fill Permits Plan Review $ 125 50 to 1,000 cubic yards $ 150 1,001 to 10,0000 cubic yards $250 10,001 to 100,0000 cubic yards $350 100,001 cubic yards or more $450 Demo and Deconstruction Permits Residential one-and two-family structures $300 Commercial buildings $400 2023 Master Fees and Charges Page 41 Section 9: Building Manufactured Home Permits Installation permit fee includes the concrete slab, runners or foundations when prescriptive,electric feeder and plumbing connections and all cross-over connections. Installation Permit Fee $445 State Fee $ 30 ORS 446.176(1)and OAR 918-5000105 require all local governments providing construction permits or inspections for manufactured dwelling and cabana installations to collect and remit to the Department of Consumer and Business Services a$30 fee for each installation permit issued.This fee is to be added to manufactured dwelling and cabana installation permits only and should not be added to accessory structures or building,electrical, plumbing, mechanical permits or plan reviews. Manufactured Dwelling/RV Parks The Area Development Permit fee to be calculated based on the valuations shown in Table 2 of OAR 918-600-0030 for Manufactured Dwelling/Mobile Home Parks and Table 2 of OAR 918-650-0030 for Recreational Park&Organizational Camp—and applying the valuation amount to Table 1 as referenced for each. Community Development Code Enforcement Charges Single family $ 163 Multi-family $ 163 plus$163 per each 12 units Office/Retail 0—5,000 square feet $ 163 5,001-10,000 square feet $326 10,001-25,000 square feet $487 25,001-50,000 square feet $648 50,001+square feet $811 Industrial/Public/Institutional 0—20,000 square feet $ 163 20,001-30,000 square feet $326 30,001+square feet $487 Enforcement Stop Work $550 Building Violation (LOC Chapter 45) $550 Record Retention and Archiving Fees For purposes of archiving records per State mandate $31.00 Flat fee on all permits Page 42 2023 Master Fees and Charges Section 9: Building Research and Consultation Fees Records Research $25 per 15 minutes/request, minimum 15 minutes Fee Estimates - new residential and commercial projects $ 100 per hour per request, minimum one-hour Consultation for code review, hypothetical projects $ 100 per hour, minimum 1/2 hour Supplemental Plan Review $ 100 per hour, minimum 1/2 hour Other Inspections and Fees 1. Inspections outside of normal business hours(minimum charge= 1 hour) $ 120 per hour 2. Re-inspection fee assessed under provisions Section 305 (f) $ 102.82 per inspection 3. Inspections for which no fee is specifically indicated $ 102.82 per hour 4. Additional plan review required by changes,additions,or revisions to $ 102.82 per hour approved plans (minimum charge= 1 hour) 5. Work commencing before permit issuance Any person who commences any work on a building or structure before obtaining the necessary permits shall be subject to an investigation fee of$125 per hour,which is equal to the average cost of an inspection. Exception: A one-time exemption shall apply to homeowners applying for their own permits. Seismic Surcharge—Structural/Mechanical—review 1%of building permit fee required on all essential structures Additional Miscellaneous Fees 1. The fee to a governmental agency shall be determined by the provisions set forth under ORS 190.003 to 190.110 for the purpose of carrying out the $ 102.82 per hour respective responsibilities of each agency. or portion thereof 2. Re-inspection fee for structural,electrical, mechanical,and plumbing permits shall be charged for inspection of violations found by the Building Official after the second violation. $ 102.82 per hour 3. The fee to any governmental agency or person for specifically requested $ 102.82 per hour inspections or surveys. or portion thereof 4. Housing moving permit (LOC 45.12.510): Relocating within Lake Oswego $452 Moving out of Lake Oswego $224 Refunds 1. Permit Refunds a. Where a permit has been issued and no inspections have been completed,80%of the permit fee will be refunded. b. There are no refunds when a permit has been issued and inspections performed or permit has expired. 2. Plan Review Refund a. Where a permit has not been issued,80%of the plan review fee will be refunded. b. There are no refunds when a plan review has been started by any department. 2023 Master Fees and Charges Page 43 Section 10: Engineering Engineering Division The following fees shall be charged for the Engineering Division activities of the City: Minor Utility Facilities, Installed or Constructed by Public15 or Private Entities Street Opening Permit Fee* Improved Unimproved surfaces surfaces 1. Minor utility structures, except substations, but including poles, lines, pipes or other such facilities $300 $ 150 2. Sewer,storm drainage,or water system structures,excluding treatment plants, reservoirs or pump stations; but including reconstruction of manholes,valves, hydrants,or other portions of the collection,treatment, and distribution systems located within public property, right-of-way,or easements. This includes sewer,storm and water lateral installations or taps $300 $300 3. Street improvements within existing development, including sidewalks, curbs,gutter,catch basins, paving,signs,and traffic control devices and street lights $300 $ 150 4. Permit and inspection of new driveway approach or relocation of an existing approach $50 General Engineering Fees 1. Engineering plan review and — 9% of the final estimated construction costs, as approved by inspection of public or private the City Engineer or $1,000 whichever is greater. A deposit of infrastructure,grading,or other $1,000 must be submitted with the initial plan submittal prior incidental work that is not to review beginning. Fee will include the cost for City to install reviewed and inspected under any sign or pavement marking installations within the right-of- State Building Specialty Codes and way,as delineated in Section 8: Public Works Support Services, delegated to Engineering. unless extenuating circumstances require the City Engineer to recover the cost of such items for large public improvement projects. Final payment of the balance of the 9%fee will be based on final estimated construction costs, and must be received by the City prior to issuance of the permit for construction. *Performance bonds may be required for large projects. 2. Appeal of a staff decision or hearing body to the next higher authority. $ 100 3. Street vacation $ 1,500 4. Quitclaim $ 200 5. Blasting Permit $ 250 application fee plus engineering costs to administer and observe blasting operations billed at labor and materials plus overhead billed at 2.4 times direct costs. 6. Document recording to comply with conditions of development approval (i.e., easements,agreements,etc.) Actual County recording costs is Quasi-public agencies other than the City and Franchise Utilities. Page 44 2023 Master Fees and Charges Section 10: Engineering Other Engineering Fees 1. Drinking water analysis $ 60 2. Encroachment Permit Type 1—Minor $300 Easily removable structures,such as fences,driveway, entrances, monument walls, or timbers, less than 3'tall,or other non-loadbearing structures. Type 2—Major $750 Relatively large structures that may need engineering, such as driveway decking, reinforced concrete structures, boathouses,decks and hatches over in-lake manholes,or other structures that are not typically found in rights-of- way or public easements. 3. Encroachment Appeal $500 per appeal 4. Zone of Benefit Formation, exclusive of LID Boundaries $2,000 5. Rivergrove Sewer Connection Fee 16 $200 6. Lien segregation One parcel into two $ 200 Each additional parcel $ 100 7. Street widening $300 8. Street name change $250 9. Change of address request for reasons other than fire and life $500 safety,or as a result of land use procedures. 10. Erosion control permit, plan review and inspection fee17 Dwelling Type: Single family residential $350 Multi-family/Commercial 500 sf up to 1 acre $ 700 1 acre18 or greater $ 1,500 11. Single-family residential landscaping erosion control permit, plan review and inspection fee $ 100 12. Site re-inspection fee (after two inspection site visits) $ 100 13. Investigation fees: Work without a permit Investigation - Whenever any work for which an erosion control permit is required has commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for the work. Fee-An investigation fee equal in amount and in addition to the permit fee shall be collected whether or not a permit is issued. 16 Check with engineering department for additional connection fee related to new zone of benefits established for certain properties. 17 Check with engineering department for additional connection fee related to new zone of benefits established for certain properties. 18 Effective 1/1/03,impact areas 1 acre and greater will require a 1200-C permit per the Oregon Department of Environmental Quality(ODEQ). 2023 Master Fees and Charges Page 45 Section 10: Engineering 14. Erosion control enforcement fees: For violations of LOC Chapter 52 and in addition to penalties prescribed under LOC 52.06,enforcement fees may also be assessed on a time and materials basis plus overhead billed at 2.4 times direct costs. 15. Illicit Discharge Enforcement Fees: For violations of LOC Chapter 38(Utility Code) and in addition to penalties prescribed under LOC 38.26.930 and LOC 38.26.935,enforcement fees may also be assessed on a time and materials basis plus overhead billed at 2.4 times direct costs. Page 46 2023 Master Fees and Charges Section 11: Planning Planning Division The following fees shall be charged for the Planning Division activities of the City(LOC 50.07.003.2): Ministerial Developments (LOC 50.07.003.13)19,20 1. Accessory building which requires a building permit(e.g.,garage, No Fee carport) 2. Accessory structure or use(e.g.,driveway,fence) No Fee 3. Duplex No Fee 4. Exterior remodeling of duplex or single-family dwelling requiring a No Fee building permit 5. Home Occupations Business License 6. Lot Line Adjustment $2,105 Process to correct an illegal Lot Line Adjustment $2,105 7. Temporary Structures, Use Business License&Sign Permit, if applicable 8. Sidewalk Display $ 36 9. Accessory dwelling unit No Fee Minor Developments (LOC 50.07.003.14)20,21 1. Change of use $4,467 2. Development in DD Zone: Duplex in R-DD zone(hearing body action) $6,281 Exterior remodeling of duplex or single-family dwelling requiring a building permit in R-DD Zone(hearing body action) $6,281 Single-Family Dwelling in R-DD Zone(hearing body action) $6,281 Zero lot line dwelling in R-DD Zone(hearing body action) $6,281 3. Development within the Greenway Management Overlay District Boundary22 $4,741 4. Development Review: Multi-family,Commercial, Industrial, Institutional,Townhouses $6,281+37%of building permit fee. Substantial revisions to a complete application requiring 33%of the original application fee new public notice 5. Alterations with minimal impacts such as exterior exit stairs; exterior remodeling that does not expand building footprint or increase height; and accessory structures 300 square feet or less $2,081 6. Exterior painting of any structure that was the subject of a Major or Minor Development Permit including all structures in the R-DD zone, with the exception of detached single-family dwellings, duplexes,zero lot line dwellings, or structures accessory to those dwelling types. Exception: Exterior painting that is the same color palette as the existing color(s). $ 1,016 7. Lot Line Adjustment $2,105 8. Minor Partition $5,172 19 See page 52 for Affordable Housing. 20 Site review and inspection fees may apply at building permit review.See page 52 under Other Planning Fees. 21 See page 50 Historical Preservation. 22 No fee applies for the Greenway Management Overlay review associated with dead,hazardous,emergency,or invasive tree removal. 2023 Master Fees and Charges Page 47 Section 11: Planning Expedited Minor Partition $8,176 Process to correct creation of an illegal lot $3,756 9. Major Partition (includes the creation of a street) $5,927+$294/lot Expedited Major Partition $9,058+$294/lot Process to correct creation of an illegal lot $3,756 10. Modification of approved minor development permits Without public hearing $2,105 With public hearing $3,756 11. Request for formal Code interpretation under LOC 50.01.005 and Authorization for Similar Use Application under LOC 50.03.002 $ 715 12. Residential Infill Design (RID)Variance $4,740 for 15t plus$609 for each additional variance 13. Subdivision (with or without P.D.) $ 6,773+$294/lot Expedited Subdivisions $ 12,645+$294/lot 14. Middle Housing Land Divisions $ 5,172 15. Minor Variances $ 4,112 for 1st+$451 for each additional variance Fence and Wall Variance $ 1,735 for 15t+$189 for each additional variance 16. Major Variance $ 4,740 for 1st+$609 for each additional variance 17. Seasonal Restaurant Enclosure $ 2,081 Seasonal Restaurant Enclosure (During State of Oregon Emergency $0 Covid-19 Restrictions) Sign Code Fees (LOC 47) Signs $ 528 Signs(awning,window, blade) $ 145 Special event sign $ 22 Variance to Sign Code $ 1,735 Refundable deposit for Public Notice Signs $ 109 Comprehensive Plan and Community Development Code Amendments 1. Legislative amendments to a map Comprehensive Plan amendments only $ 13,765 Comprehensive Plan amendments and Zone Change $ 13,765 Zone Change only $ 13,765 2. Legislative amendments to a text Comprehensive Plan text amendment $ 6,885 Community Development Code text amendment $ 6,885 3. Quasi-judicial amendments to a map Comprehensive Plan amendments only $ 13,765 Zone change only23 $ 13,765 Comprehensive Plan amendments and Zone Change $ 13,765 Minor modifications to approved amendment $ 1,843 Substantial modifications to approved amendments $ 2,370 23 Not required for zone changes that conform to the Comprehensive Plan following annexations. Page 48 2023 Master Fees and Charges Section 11: Planning Major Developments (LOC 50.07.003.15)24 1. Conditional Uses $6,756 2. Overall Development Plan and Schedule $6,281 3. Modification of approved major development permits Without public hearing $2,105 With public hearing $3,756 Sensitive Lands Overlay Districts (LOC 50.05.010 and LOC 50.07.004.8) There are no fees for actions relating to Sensitive Lands Overlay Districts(Council action 10/21/14). Fees Relating to Historical Preservation (LOC 50.06.009 and LOC 50.07.004.4) 1. Designation of Landmark No fee 2. Exterior alteration of Landmark, including building paint color change No fee 3. Historic District Designation No fee 4. New construction (not attached to historic structure; e.g.,detached No fee garage,secondary dwelling,garden shed) 5. Removal or deconstruction of Landmark $5,237 6. Withdrawal of historic landmark designation $5,237 Appeals25 1. Appeals of a formal Code Interpretation to a Hearing Body $ 746 2. Appeals of a staff decision to a Hearing Body $ 746 3. Appeals of a Hearing Body decision to City Council 1/2 original Application Fee not to exceed $6,883 Pre-Application Conference/Consultations26 1. Pre-application Conference:27 Residential Infill Design Review: Pre-application with Planning Staff $ 451 Pre-application with the Infill Advisors Team $2,415 All other applications $ 451 2. Pre-application Consultation: One follow-up meeting with staff to discuss issues addressed at the No fee pre-application conference. For any meetings after the follow-up(3rd meeting on) 50%of pre-application fee 3. Consultation Fee A private meeting to discuss a project outside the context of a pre-application conference or at-the-counter services by a planner $ 113/hour 24 Site review and inspection fees may apply at building permit review.See page 52 under Other Planning Fees. 25 Appeal fee shall not apply to appeals filed by DLCD or to appeals filed by recognized Neighborhood Association entitled to receive notice of a pre-application neighborhood meeting pursuant to LOC 50.07.003.1.f.iii(1)(a)and(b). 26 In addition to planning fees noted in this sub-section,the Fire Department also levies a pre-application fee.Please refer to Fire Department,Section 3 for the correct amount. 27 There is no pre-application conference fee for a permit for an ADU,actions relating to Sensitive Lands,Greenway Management Overlay review associated with dead,hazardous,emergency,or invasive tree removal,or designation of Historic Landmark. 2023 Master Fees and Charges Page 49 Section 11: Planning Research Fees 1. Letter of zoning verification $ 113/hour 2. Letter of verification of compliance with Community Development Code of an existing development $ 174/hour 3. Deed research to determine the legality of a lot of record $ 174/hour 4. Research/Interpretation of old planning files and informal Code Interpretation (often requested by the applicants before filing of a development application) $ 113/hour Tree Code Fees (Resolution 00-07) 1. Tree Cutting Permit Fees Type I Permit $ 23 Dead or Hazard Tree Permit $ 23 Type II Permit $ 187+$23 per tree Emergency Tree Permit $ 0 Type II Permit in conjunction with major or minor development application $ 0 Minor Forest Management $ 23 Major Forest Management $ 187+$23 per tree, not to exceed$638 Verification Permit $ 37+$ 10 per tree Topping Permit $ 23 per request 2. Mitigation [as provided in LOC 55.02.084(3)] $ 162 3. Public Hearing Review28 Request for DRC Hearing on Tree Cutting Permit $ 232 Appeal of DRC's decision to City Council 1/2 of original application fee 4. Heritage Tree Program The City may charge for providing the plaque marking a heritage tree. The fee will be the actual cost of providing the plaque. 5. Tree Protection Inspection Fee $ 113 per inspection 6. County Tree Removal Certification Type 2 Permits $ 119+$ 11 for each additional tree Over-the-Counter Permits —Type 1 $ 23 Over-the-Counter Permits —Dead $ 23 Over-the-Counter Permits —Hazard $ 23 Invasive and/or Emergency tree removal permits No Fee 28 Fee shall not apply to requests/appeals filed by City of Lake Oswego recognized Neighborhood Associations. Page 50 2023 Master Fees and Charges Section 11: Planning Fee Exemptions for Affordable Housing No Ministerial Development, Minor Development, Major Development,Sign Code, Historic Preservation,Tree Code(for tree removal and mitigation for development of the structure)or Pre-application Conference fees will be charged under this Section 11 for developments where the proposed dwelling units are affordable to those earning 80%or less of Area Median Income and spending not more than 30%of household income on housing,consistent with Clackamas County Housing Authority's"Income Limits"for Affordable Housing, provided that all of the requirements of the covenant required by LOC 39.06.105(5)are met. Other Planning Fees (Resolution 04-12) 1. Annexation Application Fee29 Parcel less than 3 times minimum lot area for the zone designation that will apply upon annexation. $0+Applicable Metro Fees Parcel 3 times or greater than the minimum lot area for the $975 per no.of lots into which the zone designation that will apply upon annexation. parcel could be divided under the zone designation that will apply upon annexation+Metro fees Parcel for which there is no minimum lot area for the zone designation that will apply upon annexation. $ 1,951+Applicable Metro Fees Expenses related to additional noticing caused by delays brought on by the applicant(s). $ 281 2. Copies of Planning Documents See Section 1, Public Records Fees, page 19. 3. Site review and inspection fees a. Single family dwelling or middle housing on infill lots(i.e., lots or parcels not approved as part of a land partition/subdivision) $ 260 b. Single family dwelling or middle housing approved as a part of a land partition/subdivision/planned development application $ 654 c. Non-single family residential development, including multi- family,commercial, industrial,and institutional uses $ 1,306 d. Re-inspection fee $ 137 e. Residential remodels Interior remodels and accessory structures $ 144 Exterior addition of no more than 500 sq ft $ 192 Exterior addition exceeding 500 sq ft(same fee as if new construction) See a.—c.above 29 See Annexation Application Form. 2023 Master Fees and Charges Page 51 Section 11: Planning 4. Plat Review Fee a. Final Plat Review Fee $ 545 b. Lot Line Adjustment Plat Review Fee $ 56 5. Ballot Measure 49 Claims Fees for claims under LOC Article 12.55(Resolution 05-31) Pre-filing conference fee $ 418 Filing fee $ 1,432 6. Application Mailing List Fee $ 80 7. Records Retention Fees- For purposes of archiving records per State mandate a. Ministerial land use applications $ 44 b. Minor land use applications(without public hearing) $ 73 c. Minor land use applications(with public hearing)and major $ 153 land use applications d. Type II and verification tree removal permits $ 28 e. Sign permits $ 28 8. Demolition (Notice of Demolition Approval) $ 61 9. Additional Plan Review Fee for Issued Building $ 113/hour Permits(minimum 1 hour) Code Enforcement Violation Fees 1. Nuisance violation LOC 34.08&34.10 $ 550 2. Community Development violation LOC Chapter 50 $ 550 3. Sign violation LOC Chapter 47 $ 550 4. Sign Retrieval violation-Moving from Sign Code Fees(LOC47) $ 36 5. Sign Removal Hearing Fee(refundable if sign was removed improperly) $ 36 6. Tree Enforcement Fees- For violations under LOC 55.02.130(3), enforcement fees will be assessed as follows: Type I Permits violations, dead or hazard tree violations $ 148 All other Permit Type violations $ 712+$47 per tree Tree Protection Enforcement fee for violations under LOC 55.08.050(3) Standard tree protection enforcement fee $ 691 Enhanced tree protection enforcement fee $ 1,382 7. Tree Restoration Fees[as provided in LOC 55.02.130(4)(a)&(b)] Standard City Tree Fund Fee $ 99 per caliper inch Increased City Tree Fund Fee $ 202 per caliper inch Page 52 2023 Master Fees and Charges Section 12: Systems Development Charges Systems Development Charges Fees shall be assessed for Systems Development Charges(SDC) and will reflect the following: • For each type of SDC,the fees assessed to each unit of a duplex shall be the same as those assessed to a single-family residence. • For an Accessory Dwelling Unit(ADU)each type of SDC will be waived, even if a larger meter is required to accommodate an ADU, provided that the ADU complies with all the requirements of the covenant required by LOC 39.06.105(5)as amended by Ordinance 2810. If within 10 years from the first use of the ADU as a dwelling unit,the requirements of this covenant are not maintained,the City may declare the ADU exemption from payment of all System Development Charges(SDCs) revoked and the Owner shall immediately pay to the City the monies due under LOC 39.06.105(5),to wit: Processing fee per Council Resolution; and ■ SDC amounts for ADU per Lake Oswego Master Fees and Charges at time of payment (previously exempted system development charges, with interest based upon inflation rate using the Engineering News—Record Construction Cost Index 20-City Average, are reflected in the SDC amounts then due). ■ Processing fee$500 • Pursuant to and following the procedure set forth in LOC 39.06.105(5)(f)(iii), (iv), (v),the processing fee and SDC amounts shall be a lien upon the Real Property, entered in the municipal lien docket,and are enforceable in the manner provided by ORS Ch.223. Exempt from SDCs are developments where the proposed dwelling units are affordable to those earning 80%or less of Area Median Income and spending not more than 30%of household income on housing,consistent with Clackamas County Housing Authority's"Income Limits"for Affordable Housing, provided that the development complies with all of the requirements of the covenant required by LOC 39.06.105(5). • The rate for Hotel/Transient Lodging includes Short-Term Rentals(Transient Lodging in residential zones). These SDC's shall be indexed for inflation annually using the Engineering News—Record Construction Cost Index (20-city average). Accordingly,as of January 1, 2024,the SDC fees have been increased by 5.7%which is equal to the last recorded change in this index as based on October 2022 to October 2023 data. Calculated amount is rounded to the nearest dollar. 2023 Master Fees and Charges Page 53 Section 12: Systems Development Charges Systems Development Charges (LOC 39.04) Water SDC Reimbursement Improvement Administrative Total Water Meter Size Fee 14.79% Fee 78.72% Fee 6.49% 100% 5/8-3/4 inch $ 1,416 $ 7,534 $ 621 $ 9,571 3/4 inch $ 1,416 $ 7,534 $ 621 $ 9,571 1 inch $ 2,359 $ 12,556 $ 1,035 $ 15,950 1 1/2 inch $ 4,718 $ 25,114 $ 2,071 $ 31,903 2 inch $ 7,558 $ 40,225 $ 3,316 $ 51,099 3 inch $ 15,133 $ 80,546 $ 6,640 $ 102,319 4 inch $ 23,666 $ 125,964 $ 10,385 $ 160,015 6 inch $ 47,370 $252,125 $ 20,786 $320,281 8 inch $ 75,839 $403,656 $ 33,279 $512,774 10 inch $ 109,122 $580,798 $ 47,883 $737,803 Sewer SDC Reimbursement Improvement Total Water Meter Size Fee 22.16% Fee 77.84% 100% 5/8-3/4 inch $ 772 $ 2,712 $ 3,484 3/4 inch $ 772 $ 2,712 $ 3,484 1 inch $ 1,287 $ 4,522 $ 5,809 1 1/2 inch $ 2,574 $ 9,043 $ 11,617 2 inch $ 5,149 $ 18,084 $ 23,233 3 inch $ 12,357 $ 43,409 $ 55,766 4 inch $ 21,627 $ 75,967 $ 97,594 6 inch $ 47,373 $ 166,401 $213,774 8 inch $ 82,387 $289,395 $371,782 10 inch $ 128,728 $452,175 $580,903 Page 54 2023 Master Fees and Charges Section 12: Systems Development Charges Stormwater Management SDC Reimbursement Improvement Total Fee 0% Fee 100% 100% Single family $0 $ 190 $ 190 Multi-family,commercial/industrial, institutional, and other land use fees are determined as follows: Improvement Fee equals the total impervious area of the property in units of 3,030 square feet or portion thereof multiplied by the fee. Transportation SDC Refer to methodology and rate schedule in the Appendix Parks&Recreation SDC Reimbursement Improvement Total Fee 0% Fee 100% 100% Residential Single family $0 $ 16,565 $ 16,565 Multi-family/secondary dwellings $0 $ 9,214 $ 9,214 "Congregate Housing" units are charged at 50%of the Multi-family rate*. Non-residential $0 $ 1,065 $ 1,065 per employee "Residential Care Housing" units are charged at 100%of the Non-residential rate*. *See Appendix for definitions of Congregate Housing and Residential Care Housing. 2023 Master Fees and Charges Page 55 Section 12: Systems Development Charges Comparison of Neighboring Cities' New Single-Family Systems Development Charges Based on a 2,000 sq.ft. house with 500 sq.ft.garage,and$200,000 value. 60,000 - $50,934 50,000 $46,518 $45,057 $41,414 $41,547 $42,952 $38,166 $40,376 40,000 $36,258 $34,258 30,000 $26,127 20,000 $13,788 10,000 1111-1111111 Lake Milwaukie Gresham Tualatin OC'ty n Tigard Hillsboro Portland Sherwood Beaverton Wilsonville West Linn Oswego •Water SDC 2,197 5,305 5,306 9,989 10,853 13,395 4,563 8,836 9,354 11,283 13,230 9,571 •Sewer SDC 1,065 7,055 6,625 2,681 6,625 6,625 9,274 7,523 6,625 6,289 12,843 3,484 ■Stormwater SDC 1,039 1,344 641 1,070 641 641 1,507 641 1,252 2,112 1,479 190 ■Street SDC 2,362 4,589 9,998 12,569 8,208 9,998 5,882 11,965 9,998 15,264 3,783 17,984 •Park SDC 3,985 4,694 8,548 6,905 8,699 6,577 17,048 9,443 12,583 6,969 12,943 \16,565 •METRO Excise Tax 240 240 240 240 240 240 240 240 240 240 240 240 •School Excise Tax 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,000 2,900 Page 56 2023 Master Fees and Charges Section 12: Systems Development Charges Comparison of Neighboring Cities' New Commercial Systems Development Charges Based on a 30,000 sq.ft.commercial office building, a total 50,000 sq.ft impervious area,and$3,200,000 value. $623,399 600,000 $522,055 $541,454 $508,139 500,000 $457,072 $457,648 $472,033 400,000 $375,903 $344,486 $301,028 300,000 $224,581 $239,412 200,000 100,000 Milwaukie Gresham Lake West Linn Portland Tualatin Beaverton Sherwood Wilsonville Tigard Hillsboro Oregon Oswego City ■Water SDC 7,329 21,214 30,905 95,600 22,814 26,527 46,765 44,179 55,527 86,804 61,527 50,856 ■Sewer SDC 74,807 28,208 11,617 84,579 49,461 26,500 26,500 30,091 17,612 26,500 26,500 21,839 ■Stormwater SDC 11,519 26,880 3,135 25,377 16,222 12,140 23,712 12,140 36,000 12,140 12,140 10,642 •Street SDC 100,621 137,670 143,580 113,490 182,400 314,820 288,690 352,226 352,830 314,820 314,820 492,163 •Park SDC 4,865 - 86,351 - 79,566 51,600 46,541 7,957 20,730 56,351 101,027 22,460 •METRO Excise Tax 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 •School Excise Tax 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 2023 Master Fees and Charges Page 57 Appendix This page intentionally left blank Page 58 2023 Master Fees and Charges Systems Development Charges Methodologies (LOC 39.04.041) Water Systems Development Charge Methodology 60 Sewer Systems Development Charge Methodology 62 Stormwater Systems Development Charge Methodology 63 Transportation Systems Development Charge Methodology 64 Parks and Recreation Systems Development Charge Fee Methodology 66 Resolution Resolution—Updating the Master Fees and Charges Schedule 69 2023 Master Fees and Charges Page 59 Appendix Water Systems Development Charge Methodology Reimbursement Fee [A] Eligible cost of unused capacity in the existing water system. [B] Current(2009)customer base expressed as 3/4" meter equivalents. [C] Future customer base expressed as 3/4" meter equivalents. [C][A][B] = [D] Water SDC Reimbursement Fee Reimbursement Fee Calculation [A] = $6,148,588 [B] = 15,204 MEs [C] = 21,695 MEs [A] = [D] $947 [C]—[B] 2023 Master Fees and Charges-Attachments Page 60 Appendix Improvement Fee [E] Cost in current(2009)dollars of water system capital improvements that will increase system capacity to meet the needs of future users. [B] Current(2009)customer base expressed as 3/4" meter equivalents. [C] Future customer base expressed as 3/4" meter equivalents. [E] _ [F] Water SDC Improvement Fee [C]—[6] Improvement Fee Calculation [E] _ $32,714,947 [B] = 15,204 MEs [C] = 21,695 MEs [E] _ [F] $5,041 [C]—[B] Water System Development Charge [D] Water SDC Reimbursement Fee [F] Water SDC Improvement Fee [G] Water SDC Administrative Fee [H] Water System Development Charge [D]+ [F] +[G] = [H] 2023 Master Fees and Charges—Attachments Page 61 Appendix Sewer Systems Development Charge Methodology Sewer SDC Fee [M] Value of the sewer collection system capital improvement program to provide capacity to serve new customers. [N] Value of the sewer wastewater treatment plant capital improvement program to provide capacity to serve new customers. [0] Current dry weather demand. [P] Future dry weather demand. [Q] Future WWTP capacity dedicated to Lake Oswego. [R] Average single family home dry weather demand. [P] [°]x[M]x[R]_[S] Portion of fee for collection system capital improvements to provide [P] [P] capacity to serve new customers. [P] [N] x[R]_ [T] Portion of fee for wastewater treatment plant capital improvements to [Q] [P] [�] provide capacity to serve new customers. [S]+[T]_[U] Sewer Fee. Sewer SDC Fee Calculation [M] = $ 19,351,000 [P]—[O]x [M]x[R]=[S] $244 [P] [P] [N] _ $ 11,499,000 [P]x [N] x[R]=[T] $ 1,186 [Q] [P]—[°] [0] = 3.9 mgd [P] = 5.69 mgd [Q] = 7.025 mgd [R] = 0.000228 mgd [S]+[T]_[U] $ 1,430 Sewer System Development Charge [U] * 22.16%= [V] Sewer SDC Reimbursement Fee [U] * 77.84%= [W] Sewer SDC Improvement Fee [X] Sewer System Development Charge [V] + [W] = [X] 2023 Master Fees and Charges-Attachments Page 62 Appendix Stormwater Systems Development Charge Methodology Improvement Fee—Water Quantity Portion [A] Portion of the Stormwater quantity management capital improvement program attributable to future development. Determined on a project-by-project basis and equal to the percentage increase in the design flow of each project in the Stormwater quantity management capital improvement multiplied by project cost. [B] Projected increase in Equivalent Service Units(ESUs).One ESU is equal to 3,030 square feet of impervious area.Total projected increase in ESUs is determined by dividing the total projected increase in impervious area of the City of Lake Oswego by 3,030. [A]/[B] = [C] Improvement Fee—quantity portion, per ESU. Improvement Fee—Quality Portion [D] Portion of the stormwater quality management capital improvement program attributable to future development. Equal to the percentage increase in total runoff multiplied by the total cost of the stormwater quality management capital improvement program. [D]/[B] = [E] Improvement Fee—quality portion, per ESU. Improvement Fee Calculation [C]+ [E] =[F] Stormwater improvement fee. Stormwater Management System Development Charge Only includes an Improvement Fee-No Reimbursement Fee. 2023 Master Fees and Charges—Attachments Page 63 Appendix Transportation Systems Development Charges Rate Tables Transportation SDC Maximum Allowable Approved SDC Rate SDC Rate ITE per Unit30 per Unit Code Land Use Unit[A] [B] [C=B x.30]31 110 General Light Industrial 1,000 SFGFA $10,022 $3,007 130 Industrial Park 1,000 SFGFA 10,163 3,049 140 Manufacturing 1,000SFGFA 5,768 1,730 151 Mini-Warehouse 1,000SFGFA 4,518 1,355 160 Data Center 1,000 SFGFA 1,886 566 Single-Family Detached 210 Housing/Duplex Dwelling unit 17,984 5,395 220 Apartment Dwelling unit 12,374 3,712 Residential 10,759 3,228 230 Condominium/Townhouse Dwelling unit 240 Mobile Home Park ODU 9,330 2,799 254 Assisted Living Bed 4,879 1,464 310 Hotel/Transient Lodging Room/Unit 14,954 4,486 320 Motel Room 10,717 3,215 411 City Park Acre 11,676 3,503 417 Regional Park Acre 9,502 2,851 430 Golf Course Acre 10,035 3,011 492 Health/Fitness Club 1,000 SFGFA 57,723 17,317 Recreational Community 1,000 SFGFA 52,161 15,648 495 Center 520 Elementary School 1,000 SFGFA 13,562 4,069 Middle School/Junior High 1,000 SFGFA 12,113 3,634 522 School 530 High School 1,000 SFGFA 11,330 3,399 540 Junior/Community College 1,000 SFGFA 40,765 12,230 560 Church 1,000SFGFA 25,169 7,551 565 Day Care Center 1,000 SFGFA 34,314 10,294 590 Library 1,000SFGFA 96,065 28,820 610 Hospital 1,000 SFGFA 23,167 6,950 620 Nursing Home 1,000 SFGFA 13,728 4,118 710 General Office Building 1,000 SFGFA 15,953 4,786 Medical-Dental Office 1,000 SFGFA 51,987 15,596 720 Building State Motor Vehicles 1,000 SFGFA 230,155 69,047 731 Department 1,000 SFGFA 168,192 50,458 732 United States Post Office 1,000SFGFA 16,182 4,855 750 Office Park 760 Research and 3,554 Development Center 1,000 SFGFA 11,848 1,000SFGFA 17,962 5,389 770 Business Park 812 Building Materials and 1,000 SFGFA 82,104 24,631 Lumber Store 30 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average,per Resolution 17-08. 31 The 30%factor for the approved SDC Rate per Unit applies to all codes except ITE Code 210.Maximum Allowable was phased-in for ITE Code 210(Single-Family Detached Housing/Duplex),per Resolution 17-65. Page 64 2023 Master Fees and Charges-Attachments Appendix Transportation SDC Maximum Allowable Approved SDC Rate SDC Rate ITE per Unit32 per Unit Code Land Use Unit[A] [B] [C=B x.30] Free-Standing Discount 1,000 SFGFA 73,221 21,966 813 Superstore 814 Variety Store 1,000 SFGFA 58,204 17,461 Free-Standing Discount 1,000 SFGFA 53,714 16,114 815 Store 816 Hardware/Paint Store 1,000 SFGFA 49,331 14,799 817 Nursery(Garden Center) 1,000 SFGFA 157,737 47,321 820 Shopping Center 1,000 SFGLA 39,368 11,810 826 Specialty Retail Center 1,000 SFGLA 77,255 23,177 841 Automobile Sales 1,000 SFGFA 55,713 16,714 843 Automobile Parts Sales 1,000 SFGFA 51,857 15,557 848 Tire Store 1,000 SFGFA 32,510 9,753 850 Supermarket 1,000 SFGFA 90,126 27,038 Convenience Market 1,000 SFGFA 469,841 140,952 851 (Open 24 Hours) 857 Discount Club 1,000 SFGFA 80,612 24,184 Home Improvement 1,000 SFGFA 31,855 9,557 862 Superstore Pharmacy/Drugstore 1,000SFGFA 72,578 21,773 880 without Drive-Through Pharmacy/Drugstore with 1,000 SFGFA 70,104 21,031 881 Drive-Through 890 Furniture Store 1,000 SFGFA 3,479 1,044 912 Drive-in Bank 1,000SFGFA 63,851 19,155 931 Quality Restaurant 1,000 SFGFA 71,230 21,369 932 High-Turnover(Sit-Down) 1,000 SFGFA 100,098 30,029 Restaurant 934 Fast-Food Restaurant with Drive-Through 1,000 SFGFA 417,049 125,115 937 Coffee/Donut Shop with Drive-Through 1,000 SFGFA 638,047 191,414 938 Coffee/Donut Kiosk 1,000 SFGFA 582,530 174,759 944 Gasoline/Service Station VFP 112,310 33,693 945 Gasoline/Service Station with Convenience Market VFP 39,597 11,879 946 Gasoline/Service Station with Car Wash VFP 69,507 20,852 Source:ITE Trip Generation Manual,9th Edition,compiled by FCS GROUP Abbreviations: SFGFA-square feet of gross floor area ODU-occupied dwelling unit VFP-vehicle fueling position 32 Indexed annually by the Engineering News Record Construction Cost Index(CCI)for 20-City Average,per Resolution 17-08. 2023 Master Fees and Charges-Attachments Page 65 Appendix Parks and Recreation Systems Development Charge Fee Methodology Residential Development a. An applicant for a building permit should complete a Lake Oswego Parks System Development Charges Application and SDC Calculation Worksheet indicating the type and number of new Dwelling Units to be included in the project. b. The Building Department enters the SDC rates per dwelling on the application form and calculates the SDCs to be paid by the Applicant. SDC Improvement Fee* Type of Dwelling Unit per Dwelling Unit Single Family Dwelling Unit $ 16,565 Multi-Family Dwelling Unit $ 9,214 II. Non-Residential Development a. An applicant for a building permit should complete a Lake Oswego Parks System Development Charges Application and SDC Calculation Worksheet indicating the type and number of square feet of building space for each non-residential use to be included in the project. Guidelines for the number of square feet required for each employee are included in the table on the following page for major Standard Industry Classifications. Where a proposed use does not specifically match one of the classifications listed in the table,the listed classification which most closely matches the proposed use,as determined by the City Manager, may be substituted. b. The Building Department calculates the non-residential SDC Improvement Fee by: i. Dividing the building space(square feet)for each non-residential use in the development by the number of square feet per employee(from the guidelines in the Square Feet Per Employee table),and ii. Multiplying the result(from step 1) by the SDC rate Per New Employee($ 1,008 as of January 1, 2022).Any proposed use which constitutes 10%or less of the total building space should be considered an ancillary use and does not require a separate calculation; however, the building space for such uses must be included in the total for other non-residential uses. *Rates are based on Improvement Fee only(no Reimbursement Fee). Page 66 2023 Master Fees and Charges-Attachments Appendix Ill. Senior and Affordable Housing Definitions(Per Resolution 08-42): a. "Congregate Housing" is defined as"multi-unit housing with self-contained apartments that contain cooking facilities which support independent lifestyles for those that have life-function disabilities due to age, medical,or mental condition,which do not require residential care or skilled nursing services. Congregate housing provides varying levels of support services,such as meals, laundry, housekeeping,transportation,and social, recreation,cultural and education activities. The full range of services normally associated with residential care facility,are not provided in association with congregate housing." (Section 50.02.005 Definitions,City Code) Rate Provision: Charged at 50%of the Multi-Family residential rate. b. "Residential Care Housing" is considered to be non-residential in nature and is defined as a facility that houses and provides services for 6 or more persons who may have a range of physical and mental health problems, including chronic and debilitating conditions requiring assistance with daily activities. This term is synonymous with other terms such as"assisted living facilities"and "adult care housing" used to describe housing which provides the range of services described below. Living units within residential care housing do not have cooking facilities. A range of services is provided including staff supervised meals, housekeeping and personal care medication supervision, recreation, cultural,social activities and transportation. Residential care housing facilities may include housing for persons needing intermediate care. These are persons who do not require around-the-clock nursing, but who do need preventative care,therapies at levels less than continuous licensed nursing care or observation. Intermediate care emphasizes personal,social and emotional/mental health care, but involves the availability of 24 hour service with physicians and nurses in supervisory roles. Skilled nursing services, including convalescent care, may be provided as an accessory and subordinate use in conjunction with residential care facilities. (Section 50.02.005 Definitions,City Code). Rate Provision: Charged at 50%of the Non-Residential rate. 2023 Master Fees and Charges—Attachments Page 67 Appendix SQUARE FEET PER EMPLOYEE (Recommended guidelines from Metro Employment Density Study) Standard Industry Square Feet Standard Industry Square Feet Classification (SIC)* Per Employee Classification(SIC)* Per Employee 1-19 590 37 700 Agriculture., Fish &Forest Services; Transportation Equipment Construction; Mining 20 630 40-42,44,45,47 3,290 Food & Kindred Products Transportation and Warehousing 22, 23 930 43,46,48,49 460 Textile&Apparel Communications and Public Utilities 24 640 50,51 1,390 Lumber&Wood Wholesale Trade 25,32,39 760 52-59 470 Furniture;Clay,Stone,&Glass; Misc. Retail Trade 26 1,600 60—68 370 Paper and Allied Finance, Insurance& Real Estate 27 450 70—79 770 Printing, Publishing&Allied Non-Health Services 28—31 720 80 350 Chemicals, Petroleum, Rubber, Leather Health Services 33,34 420 81-89 740 Primary&Fabricated Metals Educational,Social, Membership Services 35 300 90—99 540 Machinery Equipment Government 36, 38 400 Electrical Machinery, Equipment * Source: U.S. Department of Commerce Standard Industrial Classification Manual IV. Modification, Expansion,or Redevelopment If the development is a modification or expansion of an existing structure, or redevelopment of a property from a previous use,the SDC amount is based on the net increase in the number of Dwelling Units and/or employees,calculated as follows: a. Calculate an SDC on the development as though the entire development was subject to the SDC; b. Calculate an SDC on the existing development, before modification,expansion,or redevelopment, as though the existing development was subject to the SDC; c. Calculate the net SDC amount by subtracting the result of Step b from the result of Step a; if the result is zero or less than zero, no SDC is due. Page 68 2023 Master Fees and Charges-Attachments Appendix Master Fees and Charges Resolution RESOLUTION 22-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO REVISING FEES AND CHARGES AND UPDATING THE LAKE OSWEGO MASTER FEES AND CHARGES SCHEDULE WHEREAS, the City has adopted from time to time various fees and charges for services; and WHEREAS,the City has found it necessary to add, revise, or delete various fees. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The revisions to fees and charges shown in Exhibit A are hereby adopted effective January 1, 2023, except where noted otherwise. Section 2. The revision to fees and charges shall be incorporated into the City's Master Fees and Charges schedule. Section 3. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 6th day of December, 2022. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Evan Boone, City Attorney Pro Tem 2023 Master Fees and Charges—Attachments Page 69