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Agenda Packet - 2024-02-20503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEG O, OR 97034 WWW.LAKEOSWEGO.CITY AGENDA CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING Tuesday, February 20, 2024 3:00 p.m. City Hall Council Chamber - 3rd Floor 380 A Avenue, Lake Oswego, OR 97034 Staff Contact: Kari Linder, CityRecorder@lakeoswego.city Virtual Access This meeting will be held in person. To participate remotely, please email the City Recorder by noon the day of the meeting. ADA Accommodation Requests lakeoswego.city/accommodation 503-635-0282; Relay 711 Please allow four business days to process your request. Translation Services Traducción o interpretación 翻译或传译 통역혹은번역 503-534-5738 This meeting will be livestreamed on the City's YouTube Channel and at lakeoswego.city. The meeting will also be broadcasted live on Tualatin Valley Community TV; check tvctv.org for details. 1.CALL TO ORDER, REDEVELOPMENT AGENCY (LORA) 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE 4.BOARD BUSINESS 4.1 Urban Renewal Plans and Foothills Area Update. 4.2 Approval of LORA Meeting Minutes. November 7, 2023, Draft Regular LORA Meeting Minutes November 21, 2023, 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 Page 2 503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 7.PUBLIC COMMENT The purpose of Public Comment is to allow community members 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, unless changed by the Mayor. If you are unable to attend the meeting and prefer to provide public comment in writing, by phone or electronically, please email the City Recorder by noon the day of the meeting. 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. 8.1 8.2 8.3 Motion: Move to adopt the Consent Agenda. WO 337, Group 2 Pathways Project. Motion: Move to authorize the City Manager to sign a Professional Services Contract with Harper Houf Peterson Righellis, Inc. (HHPR) in the amount of $896,884 for Engineering Services for the Group 2 Pathways Project (WO 337). Resolution 24-03, A Resolution of the City Council of the City of Lake Oswego Authorizing the City Manager to Execute a Lease Between the Lake Oswego Preservation Society and the City for the Lease of 40 Wilbur Street, Lake Oswego, Oregon. Motion: Move to adopt Resolution 24-03. 2024 City Council Goals and Initiatives. Motion: Move to adopt the City Council 2024 Goals and Initiatives. 9.ITEMS REMOVED FROM CONSENT AGENDA 10.PUBLIC HEARING 10.1 Resolution 24-07, A Resolution of the City Council of the City of Lake Oswego Adjusting the Budget for the Biennium Commencing July 1, 2023 by Adopting a Supplemental Budget, Approving Resources/Requirements, and Making Appropriations. Page 3 503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Public Hearing Process: 1. Review of hearing procedure by Ellen Osoinach, City Attorney 2. Staff Report by Shawn Cross, Finance 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 adopt Resolution 24-07. 11. STUDY SESSION 11.1 Urban and Community Forest Plan Update. 12. INFORMATION FROM COUNCIL 13. REPORTS OF OFFICERS 14. ADJOURNMENT, CITY COUNCIL 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Provide direction on Urban Renewal areas, including the Foothills area. Meeting Date: February 20, 2024 Report Date: February 7, 2024 Staff Member: Sidaro Sin, Redevelopment Manager Department: Redevelopment Agency Action Required Advisory Board/Commission Recommendation ☐Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded☐Resolution ☐Not Applicable☐Information Only Comments: ☒Board Direction☐Consent Agenda Staff Recommendation: Initiate a substantial amendment to the Lake Grove Village Center Urban Renewal Plan to increase the maximum indebtedness and add projects(s), seek grant funding to update the Revised Foothills Framework Plan and develop an urban renewal plan for the area. Recommended Language for Motion: N/A Project / Issue Relates To: Urban Renewal Plans and Foothills Area Issue before LORA Board (Highlight Policy Question): ☒Council Goals/Priorities ☐Adopted Master Plan(s)☐Not Applicable ISSUE BEFORE LORA Board The staff report reflects the Board’s direction on the existing urban renewal plans and the Foothills area. The Board can direct staff to move forward to update the plans as proposed or make amendments as necessary. 4.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY EXECUTIVE SUMMARY In May of 2023, the Lake Oswego Redevelopment Agency (LORA) Board directed staff to 1. bring back a plan to close the East End Redevelopment Plan (EERD) as anticipated in 2028; 2. pursue increasing the maximum indebtedness for the Lake Grove Village Center Urban Renewal Plan (LGVCURP) to fund projects in the area; and 3. update the Foothills District Refinement Plan (FDFP) and develop a Foothills Urban Renewal Plan (FURP). Staff summarizes its proposed responses as follows: 1. In order to close the EERD the Board must adopt a Resolution specifying its termination date; 2. An increase in the maximum indebtedness of LGVCURP would require a “substantial amendment”—as that term is used in relation to Urban Renewal Area (URA) plans-- and concurrence from taxing districts. If the closing date of the Lake Grove URA were extended, preliminary high-level estimates indicate that the URA could have the capacity to generate around +/- $50M to fund project and administrative service costs. The amendment process could be completed by early next year. 3. Updating the 2012 FDFP and creating a new FURP involves an extensive process that could take up to four years to complete and cost up to $500K. Preliminary estimates indicate that the Foothills URA could have the capacity to generate around +/- $100M to fund project and administrative service costs. The potential revenue generated for projects and administrative services is based on the best information available at the time of this report and assumptions related to growth rates, length of the districts, URA boundary limits, revenue sharing, etc. Staff anticipates bringing back additional projections for discussion at a future study session. Staff is seeking Board feedback about the proposed responses and direction about the process for initiating them. Given the slight delay in the development of the Lake Oswego wastewater treatment plant, staff recommends that the Board pursue the amendment process for the Lake Grove Urban Renewal Plan prior to undertaking the Foothills process. BACKGROUND A Council initiative for 2024 is updating the LGVCURP and begin work on a plan to use urban renewal to support the redevelopment of the Foothills area. In particular for the LGVCURP, Council expressed interest in developing a strategy for an all-ages and all-activities community center on the west side of town that could include event and meeting spaces, public services, and library services. The City would also collaborate with Lake Oswego School District and other stakeholders as part of this project. In May 2023, the City Council, acting in capacity as the LORA Board received an update on the status of the EERP, the LGVCURP, the FDFP, and the FURP. The Board directed staff to bring Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY back a plan to implement the direction given at the meeting. Specifically, the Board directed staff to: • EERP: Close the district as anticipated in 2028 or sooner. • LGVCURP: Increase the maximum indebtedness of the plan in order to fund projects in the area. • FDFP and FURP: Update the Foothills Plan and prepare a new urban renewal plan for the area. DISCUSSION The information in the report and attached schedule (Attachment 1) outlines the different processes for the City’s two URAs and the Foothills area. A) East End Redevelopment Plan (EERP) The Board direction was to close the EERP as planned in 2028. The EERP is the oldest URA for the City and has had the most impact on the redevelopment of the downtown area. The downtown is thriving with new housing, community amenities and economic vitality and directly reflects the benefits of how urban renewal works to help revitalize an area. Since the URA was created in 1987 and with a maximum indebtedness (MI) of $94M, 66 projects have been completed including major signature projects like Lake View Village, The Windward, Millennium Plaza Park, and City Hall. Upon closing the district in 2028, it is estimated the assessed property value in the URA area will be approximately $450M, compared to $55M in 1987 when the URA was formed. The frozen tax base that was established would then be terminated and the full assessed value of properties in the URA would return to taxing districts. The City of Lake Oswego is anticipated to receive approximately $2.2M annually when the URA closes. Closing the URA in 2028 would leave 17 projects uncompleted (approximately $64M in project costs) and will include the completion of the North Anchor project in 2025. When the time comes to close the URA in 2028 and all of the bonded debt has been paid off, the LORA Board will need to approve a resolution to terminate the EERP and to stop receiving tax increment financing (TIF) revenue. The resolution would then be sent to the County Assessor’s Office to officially stop receiving TIF revenue. B) Lake Grove Village Center Urban Renewal Plan (LGVCURP “Plan”) The Board direction was to increase the maximum indebtedness of the Plan in order to fund projects in the area. The Plan was adopted in 2012 and consists of two projects, Boones Ferry Road (BFR) improvements and public parking. BFR Phase 1 was completed in 2021 for $39M of which $30M was TIF funded. A 2020 estimate indicated BFR Phase 2 would cost approximately $32M, Page 4 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY while the parking project was estimated at $4M. The MI for the Plan is $36M and is anticipated to close in 2032. A preliminary high-level estimate based on using the existing URA boundary, incurring new debt to be repaid over 25-30 years, combined with unused MI, and existing "program income" not subject to MI limits, the URA might have the capacity to fund a total of around +/- $50M in project costs and administrative services. In order to increase the MI, the Plan includes a provision that ANY increase in MI requires a “substantial amendment” to the Plan and concurrence from other taxing districts. Additionally, Oregon law requires that if construction of a public building is included in the list of projects, additional concurrence from taxing districts is required. The process and requirements are more specifically discussed below: • Substantial amendment process, would include the same procedural requirements as adoption of the original Plan including: public/taxing district notices, public involvement, consultation with taxing districts, presentation to the Planning Commission and adoption by the City Council by non-emergency ordinance after a hearing. This process could take up to 12 months to complete after projects have been identified and funding strategy developed. • Taxing District concurrence to increase the MI is required per the Plan from taxing districts imposing at least 75 percent of the amount of taxes imposed under permanent rate limits in the urban renewal area. This concurrence is in the form of adoption of a formal resolution by the board of the taxing district. There are 12 taxing districts that are affected by the URA and the 75 percent threshold can be achieved in multiple ways, but concurrence from the top three districts, including Clackamas County, Lake Oswego School District and the City of Lake Oswego, would satisfy this requirement. • Taxing District concurrence to use TIF for a public building including fire station, police station, public library, public hospital, or school, requires concurrence by three of the four taxing districts estimated to forgo the most property tax revenue. This concurrence is also in the form of adoption of a formal resolution by the board of the taxing district. For the Plan, the top four taxing districts are Clackamas County, Clackamas County Library, Lake Oswego School District and the City of Lake Oswego. If the Board directs staff to move forward with increasing the MI, the next step would include coming back to the Board for a study session to discuss: • TIF Revenue: Understanding the amount of revenue the URA could generate can help determine what projects to pursue and how they are funded. After a URA is established, the county assessor determines the current assessed value of all property within the area and freezes that tax base. Whatever property tax revenue taxing districts receive from this frozen base is the same amount they will receive on a yearly basis until the URA is closed. As property values increase above this frozen base, all tax revenues from increases (the “increment”) in permanent rates are used to fund projects Page 5 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY within the urban renewal area. Revenue in a URA increases due to the 3% assessed value increase annually, when the assessed value (AV) in the URA is increased through new construction projects with increased AV, expanding the URA boundary to take in more AV, or extending the closing date of the URA. Another consideration is the urban renewal revenue sharing provision, whereby revenue is shared with other taxing districts when annual TIF revenue exceeds ten percent of the maximum indebtedness of the plan. At this threshold, the URA receives TIF revenue equal to ten percent of the original maximum indebtedness plus 25 percent of the remaining tax revenue generated by the increment value of the URA. When annual TIF revenue equals 12.5 percent of the maximum indebtedness of a plan, the annual TIF revenue for a URA is capped at that level, with any additional tax revenue generated by the increment being shared proportionately between the overlapping taxing districts. • Project Scope and Cost Estimates: The amendment to the plan will need to include a list of projects to be added and cost estimates. An outcome of the 2024 Council Goal setting was interest in a collaborative effort with the Lake Oswego School District and other stakeholders in developing an all-ages and all-activities community center on the west side of town that would include event and meeting spaces, public services, and may include library services. Additionally, as noted previously, the last estimate that was provided in 2020 for the BFR Phase 2 cost was $32M while the parking was estimated at $4M. A cost saving strategy to implement existing projects and a multi- generational public facility could be to combine projects. For example, a new public facility could include parking that benefits both the building users and surrounding businesses, thereby reducing parking impacts to the neighborhood. • Funding Strategy: Depending on the projects to be included, cost of the projects and projected TIF revenue, TIF revenue can be combined with additional funding sources to complete a project. Other funding sources could include the Street Fund, System Development Charges (SDC), utility revenue, creating a Local Improvement District (LID), and general obligation bonds. Staff can provide a more detailed schedule, estimate of additional TIF revenue that can be generated in the URA, provide project scope and cost, and funding options at a future study session. Adoption of a “substantial amendment” could be completed by early next year. C) Foothills Area The Board direction was to update the revised Foothills Framework Plan and prepare a new urban renewal plan for the area. Implementation would be a two part process: • Update the Revised Foothills Framework Plan, which sets the vision and identifies projects to be completed in the area, and; • Adopt an urban renewal plan which will help fund the project in the area. Revised Foothills District Framework Plan (FDFP) Page 6 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY The revised Foothills Framework Plan was adopted in July 2012 and outlined what was described as “Lake Oswego’s next great neighborhood”. It included a walkable street pattern, connections to the downtown and Willamette River and a mix of residential and commercial developments, but did not include a street car connection. It’s been 12 years since the last plan was adopted with no redevelopment activity in the area. With a new waste water treatment plant under consideration for moving from its current 14- acre site to a much smaller six-acre site, it provides the opportunity to revisit the plan to ensure the area redevelops in a manner consistent with the community vision and values. The update would include an extensive public involvement process to ensure the area reflects the community vision for housing, recreation, connectivity, sustainability, preservation of natural resources and economic development. The updated plan will also identify infrastructure and community projects that would need to be accomplished to ensure success in the area. There are several opportunities to fund the update that includes a combination of City funds and grants. In reviewing other similarly scoped grants and cost escalation, a high-level estimate to fund the plan update could be between $400K - $500K. Two grant opportunities that staff would like the Board’s support in pursuing include the Oregon Department of Transportation, Transportation Growth Management (TGM) grant and the Metro 2040 Planning and Development grant (Metro). Ultimately, only one grant will be pursued. The TGM grant provides up to $250K (with 12% City matching funds) to help with planning for streets and land that result in more livable, sustainable, economically vital communities and increased opportunities for transit, walking and bicycling. In addition to using the grant to fund the FDFP update, we would pursue using it to update other plans/codes as needed (Comprehensive Plan, Zoning Code, Capital Improvement Plan, Transportation System Plan, etc.) It is worth noting the last time the City applied for a TGM grant for the Foothills area was in 2004 and the grant was for $150K. The other grant is the Metro grant with the purpose of helping remove barriers to housing development, support economic growth, promote planning that makes land ready for development, and implement Metro’s long-term plan for livable and equitable communities for people of color and historically marginalized communities. In the previous 2023 grant cycle, up to $1.25M was available for the “equitable communities” category. Project awards for the 2020 grant cycle in this category ranged from $250K - $750K. To date, the City has never applied for this type of Metro grant. Both the TGM and Metro grant would follow similar grant schedules as noted below: • 2025: Grant Pre-application, Application, Award, Refine Scope (12 months) • 2026: Negotiate scope and fee with consulting team (up to 12 months) • 2027/2028: Update plan (18 months) Page 7 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Foothills Urban Renewal Plan (FURP) In December 2012, the Foothills Urban Renewal Plan was adopted and was later repealed in February 2013. The plan identified the 57 acre boundary of the URA and included 21 projects that implemented major infrastructure improvement identified in the FDFP. At the time, the cost of the public improvement projects was estimated at $55M, with $43M to be funded through urban renewal funds and the balance from SDCs and utility revenues. Since the last FURP was repealed, adoption of a new plan would need to start from the beginning. Once the FDFP has been updated with new projects and cost estimates, development of a new FURP can begin. Actual adoption of the new FURP would coincide with closing of the EERP so there are no overlapping URAs. This process could take up to 12 months and follow the same procedural requirements as previous followed including: public/taxing district notices, public involvement, consultation with taxing districts, presentation to the Planning Commission and adoption by the City Council by non-emergency ordinance after a hearing. Depending on the size, growth rates and other factors, preliminary estimates indicate the URA might have a capacity to fund around +/- $100M in project and administrative service costs. RECOMMENDATION With the possible slight delay of the wastewater treatment plant process, staff recommends moving forward with the “substantial amendment” process to increase the MI for the LGVCURP, then pursue updates and an urban renewal area for the Foothills area. Direct staff to: • (When the time comes), draft a resolution closing the East End Redevelopment Plan as anticipated in 2028 or sooner. • Pursue increasing the maximum indebtedness of the Lake Grove Village Center Urban Renewal Plan to fund projects in the area and bring back additional information for the Board’s consideration at a future study session. • Initiate updating and pursuing grants for the Foothills Refinement Plan and develop a Foothills Urban Renewal Plan. ATTACHMENTS 1. Project Schedule Review Urban Renewal Plans (East End, Lake Grove) and Foothills Planning (Refinement Plan & UR Plan) 2/7/2024 Council Goal 2024 Update the Lake Grove Urban Renewal Plan and begin work on a plan to use urban renewal to support the redevelopment of Foothills  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Tasks  A)  East End Redevelopment Plan (EERP)    • North Anchor Project Construction    • Close EE URA ‐ Q2 2028 B) Lake Grove Village Center Urban Renewal Plan (LGVCURP)    • Increase Max Indebtedness & add project(s)‐ revise Plan C) Revised Foothills Framework Plan  (RFFP)    • Update RFFP       • Review Comp Plan/ZC/Code Amend       •  CIP / TSP Amends D)  Foothills Urban Renewal Plan (FURP) 2024 2028202720262025 2029 Attachment 1 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Approval of Lake Oswego Redevelopment Agency (LORA) Board Meeting Minutes Meeting Date: February 20, 2024 Report Date: February 13, 2024 Staff Member: Kari Linder, Recording Secretary Department: City Manager’s Office Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded☐Resolution ☒Not Applicable☐Information Only Comments: ☐Board Direction ☒Consent Agenda Staff Recommendation: Approve minutes as written. Recommended Language for Motion: Move to approve the LORA meeting minutes as written. Project / Issue Relates To: Issue before Board (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable ATTACHMENTS 1.November 7, 2023, Draft Regular LORA Meeting Minutes 2.November 21, 2023, Draft Regular LORA Meeting Minutes 4.2 Redevelopment Agency Meeting Minutes Page 1 of 4 November 7, 2023 LAKE OSWEGO REDEVELOPMENT AGENCY MEETING MINUTES November 7, 2023 13.CALL TO ORDER, REDEVELOPMENT AGENCY (LORA) Chair Buck called the regular Lake Oswego Redevelopment Agency (LORA) meeting to order at 9:00 p.m. on Tuesday, November 7, 2023. The meeting was held both virtually via video conferencing and in-person in the Council Chamber at City Hall, 380 A Avenue. Present: Chair Buck and Board Members Corrigan, Wendland (via video conferencing), Mboup, Verdick, Rapf, and Afghan Staff Present: Martha Bennett, Executive Director; Ellen Osoinach, LORA Counsel; Kari Linder, Recording Secretary; Sidaro Sin, Redevelopment Manager Others Present: Eric Cress, Principal and President, Urban Development Partners; Lincoln Walker, Senior Director, Investor Relations, Urban Development Partners ____________________________________________ __________ _ 14.BOARD BUSINESS 14.1 Third Amendment to the North Anchor Project Disposition and Development Agreement. Sidaro Sin, Redevelopment Manager, reviewed the request from Urban Development Partners (UDP) to extend three major deadlines: the residential component financial close, the hotel component financial close, and the final preclosing DDA termination date from December 31, 2023 to June 28, 2024. The extension would effectively push out other deadlines in the schedule of performance listed in Attachment 2. The Board had extended the deadline and the DDA in June of 2023 to allow for UDP to work on the North Anchor hotel component, do some design changes, and other things to help the project pencil out, make it more efficient, and add community amenities. The previous extension also allowed the City to pursue the Vertical Housing Development Zone Tax Abatement Program as a pilot project for North Anchor. Since June, good progress has been made. The DR modification was currently being reviewed for completeness by the City. Notices about the vertical housing project were sent to the different taxing entities the program would affect, and the team hoped to schedule the project for a public hearing and adoption by City Council in December. It was anticipated that the residential component would break ground in March or April of 2024, and the hotel component would commence shortly afterwards with completion expected in December of 2026. The Board’s approval of this six-month extension request would allow UDP to complete the development review modification and land ATTACHMENT 1 Redevelopment Agency Meeting Minutes Page 2 of 4 November 7, 2023 use application for the hotel and provide the City additional time to implement the vertical housing program if needed. Having both of the projects move forward was critical to put the project in the best position possible to get financing. UDP was committed to the project and closing before the June 2024 deadline was one of its highest priorities. Eric Cress, Principal and President, UDP, highlighted via PowerPoint the challenges faced and the company’s accomplishments since June and reviewing the request for a six-month extension. Lincoln Walker, Senior Director, Investor Relations, UDP, reviewed the status of the project’s debt and equity. The team had engaged in conversations with various groups and brought to the meeting a letter of intent from a banking partner, which was a positive development for the project. While the summer had been a difficult period due to rising interest rates, there had been substantial changes in the past five days. Within the past few weeks, UDP had also received a letter of intent for the apartments from a larger, institutional-sized investor. While there were some permitting and construction costs that needed to be worked through, the company was making good progress and receiving more engagement from a variety of investors. A few individuals Mr. Walker knew in the community had reached out asking to participate, which was a positive sign and boded well for the project going forward. The total equity capitalization amounted to slightly over $40 million with a combined total of $89 million for both projects. UDP aimed for around 60 percent loan to cost for the apartments, translating to approximately $16 million of the $40 million, with the remaining $23 million allocated for the hotel. Mr. Cress noted the company had invested $4 million over the past four months as it continued to work through the redesign process. He continued the presentation with an overview of the schedule, which was consistent with Staff report the Board had received. Chair Buck thanked the team for the updates and their ongoing work on the project. Earlier today, the County voted unanimously to approve its participation in the development zone, and the City appreciated the County’s support. Many recent events had highlighted the difficulty multifamily projects had with financing. A recent article in the Oregonian highlighted the drag financing difficulties would have on housing production. Everyone was starting to see the need to pull out all the stops, and the City appreciated UDP’s creative thinking, recognizing it was still a tight market and the City could not operate like it did five years ago. The County wanted certainty that the project would provide workforce units and had noted language in one of the documents that seemed to suggest those units were optional. The City needed to ensure the DDA cemented the language because Mayor Buck had given them his word that it would happen. Mr. Sin said the language was in the DDA, though there might be some looser language stating the units were contemplated versus required. He was sure the City could get Mr. Cress’ verbal and written commitment. Mr. Cress confirmed the company was committed to delivering those units. The company managed and built multiple buildings with rent constrained, low-income, or workforce housing within them, so UDP was used to managing those and had experience with the compliance required. Mr. Cress clarified the schedule, noting the company planned to close on the apartments in March and the hotel in June. June 28th was the request for the DDA extension, but UDP’s schedule anticipated the apartment’s construction to begin prior to that date. The schedule showing issuance of demo/building permits for the hotel in July of 2024 reflected the length of time anticipated between completeness check and permit issuance. The schedule also assumed only one development review modification hearing, which is what UDP hoped, but that was the Redevelopment Agency Meeting Minutes Page 3 of 4 November 7, 2023 minimum. The company had tried to compress the timeline as much as possible while being realistic. It did take time once permit documents were in to get through the process. Board Member Afghan recognized the current situation was different from pre-covid times and supported issuing the requested extension to maintain the City's relationship with UDP. However, while he had voted for the last extension without hesitation and would vote for this extension, he would be unable to approve another extension six months from now because the project needed to go forward. If UDP faced genuine difficulties progressing, the City should explore other options. He would not advocate taking the project from UDP, but if someone presented immediate funding, the Board owed it to the residents to consider it. If construction did not start in April and July, the City would need a different conversation with UDP. Chair Buck added he believed the Board looked forward to seeing the progress UDP articulated tonight continue into the spring. Mr. Cress understood the Board represented the community and the community wanted to get the project done, which UDP heard loud and clear and that was why the company had spent so much time, energy, and money to push the project as fast as possible. UDP was committed to doing everything it could to move the project forward. His experience as a member of a national product council told him that throughout the country it was a very difficult time to get housing built because of the circumstances. However, UDP had letters of intent and people who were looking at the project seriously. It was a good project. People were excited about Lake Oswego, the location was excellent, and UDP had built a strong program. The company was pushing the project forward and what it presented to the Board today was what it expected to deliver, and it was making every effort to do so. Board Member Afghan thanked Mr. Cress and emphasized he was not arguing UDP’s commitment to the project or the City. The company had spent $4 million and many years on the project. At the same time, if that commitment did not move the project forward, then the City had to explore other options. He understood the difficulty with getting financing right now, and because he understood those challenges he would vote in favor of another extension. Board Member Rapf moved to authorize the Executive Director to execute a third amendment to the December 7, 2021 Agreement for the disposition and development for the North Anchor properties. Board Member Verdick seconded the motion. A voice vote was held, and the motion passed, with Chair Buck and Board Members Corrigan, Wendland, Mboup, Verdick, Rapf, and Afghan voting ‘aye’, (7-0). 14.2 Approval of LORA Meeting Minutes. September 19, 2023, Draft Regular LORA Meeting Minutes Board Member Verdick moved to approve the LORA meeting minutes as written. Board Member Mboup seconded the motion. A voice vote was held, and the motion passed, with Chair Buck and Board Members Corrigan, Wendland, Mboup, Verdick, Rapf, and Afghan voting ‘aye’, (7-0). 15. ADJOURNMENT, REDVELOPMENT AGENCY (LORA) Chair Buck adjourned the LORA meeting at 9:25 p.m. Redevelopment Agency Meeting Minutes Page 4 of 4 November 7, 2023 Respectfully submitted, _____________________________ Kari Linder, Recording Secretary Approved by the LORA Board on {insert approval date}. ____________________________ Joseph M. Buck, Chair Redevelopment Agency Meeting Minutes Page 1 of 2 November 21, 2023 LAKE OSWEGO REDEVELOPMENT AGENCY MEETING MINUTES November 21, 2023 14.CALL TO ORDER, REDEVELOPMENT AGENCY (LORA) Chair Buck called the regular Lake Oswego Redevelopment Agency (LORA) meeting to order at 5:17 p.m. on Tuesday, November 21, 2023. The meeting was held both virtually via video conferencing and in-person in the Council Chamber at City Hall, 380 A Avenue. Present: Chair Buck and Board Members Corrigan, Wendland (via video conferencing), Mboup, Verdick, Rapf, and Afghan Staff Present: Martha Bennett, Executive Director; Ellen Osoinach, LORA Counsel; Kari Linder, Recording Secretary; Evan Boone, Deputy LORA Counsel ______________________________________________________________________ 15.PUBLIC HEARING 15.1 LORA Resolution 23-04, A Resolution of the Lake Oswego Redevelopment Agency Board Amending Lake Oswego Public Contract Rule 46-109 (Definitions), Regarding Applicability of the Rules to the Lake Oswego Redevelopment Agency, and Rule 46-0125 (Public Contracting Officer’s Policies and Guidelines) to Increase Contracting Opportunities for Firms Certified by the State Certification Office for Business Inclusion and Diversity (COBID) to Include Veteran-Owned Businesses. Ellen Osoinach, LORA Counsel, reviewed the public hearing procedure for the legislative decision and asked if any Council wished to declare a conflict of interest. None were heard. Evan Boone, Deputy LORA Counsel, referred to his earlier Council Report and confirmed Board Members had no additional questions. Chair Buck opened the public hearing, confirmed there was no public testimony, and closed the public hearing. Board Member Rapf moved to adopt LORA Resolution 23-04. Board Member Mboup seconded the motion. A voice vote was held, and the motion passed, with Chair Buck and Board Members Wendland, Mboup, Verdick, Rapf, Afghan, and Corrigan voting ‘aye’, (7-0). ATTACHMENT 2 Redevelopment Agency Meeting Minutes Page 2 of 2 November 21, 2023 16. ADJOURNMENT, REDVELOPMENT AGENCY (LORA) Chair Buck adjourned the LORA meeting at 5:19 p.m. Respectfully submitted, _____________________________ Kari Linder, Recording Secretary Approved by the LORA Board on {insert approval date}. ____________________________ Joseph M. Buck, Chair 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: WO 337, Group 2 Pathways Project Meeting Date: February 20, 2024 Report Date: February 9, 2024 Staff Member: Stefan Broadus, PE Assistant City Engineer Heike Shipton, PE Senior Associate Engineer Department: Engineering Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded☐Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: Award a Professional Services Contract. Recommended Language for Motion: Move to authorize the City Manager to sign a Professional Services Contract with Harper Houf Peterson Righellis, Inc. (HHPR) in the amount of $896,884 for Engineering Services for the Group 2 Pathways Project (WO 337). Project / Issue Relates To: Group 2 Pathways Project/Contract Award. Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☒Adopted Master Plan(s) ☐Not Applicable EXECUTIVE SUMMARY The Group 2 Pathways project (WO 337) will deliver 4 pathway segments as identified in the City’s Transportation System Plan (TSP), prioritized by the Transportation Advisory Board (TAB) as providing safer routes to school, and adopted in the 2023-2029 Capital Improvement Plan (CIP). The City is hiring a professional engineering firm to provide design services to produce the contract documents for construction. 8.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY BACKGROUND The City adopted a Capital Improvement Plan on June 6, 2023 that identifies the funding and timing of capital projects for the period from July 1, 2023 to June 30, 2029. This Group 2 Pathways project is part of the pathway program and includes four pathway segments anticipated to be completed by summer 2025: 1. Carman Drive – Waluga Drive to Quarry Road 2. Pilkington Road – Boones Ferry Road to Lakeview Blvd 3. Tree Top Lane – Overlook Drive to Fernwood Drive 4. Meadowlark Lane – Overlook Drive to Ridge Pointe Drive These four pathways can be more efficiently delivered by combining into a single project. Key considerations during design will include public involvement, land rights, utility coordination, ADA compliance and constructability. DISCUSSION On September 22, 2023, the City solicited proposals for engineering design services for the Group 2 Pathways project. Proposals were received from the following five firms: AKS, Century West Engineering, Consor, Harper Houf Peterson Righellis, Inc. and Wallis Engineering, PLLC. Interviews were conducted on December 4 and 5, 2023. Using the criteria and the process prescribed in the Request for Proposals (RFP), the selection panel determined Harper Houf Peterson Righellis, Inc. received the highest score, and therefore was the top proposer. In accordance with the City’s Qualifications Based Selection (QBS) process, Engineering Department staff and HHPR, Inc. have successfully negotiated a scope and fee of $896,884. FISCAL IMPACT Design and construction of the project is planned to be funded as shown in the table below: Funding Sources 2023-24 2024-25 2025-26 Total Street $750,000 $1,750,000 $1,500,000 $4,000,000 RECOMMENDATION Council authorize the City Manager to sign a Professional Services Contract with HHPR, Inc in the amount of $896,884 for Engineering Services for the Group 2 Pathways Project (WO 337). 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-03, Ironworkers Cottage – Lake Oswego Preservation Society Lease Meeting Date: February 20, 2024 Report Date: February 9, 2024 Staff Member: Nell Diamond, Management and Program Analyst Department: Public Works Action Required Advisory Board/Commission Recommendation ☐Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded ☒Resolution ☒Not Applicable☐Information Only Comments: Regarding lease of city-owned property to Lake Oswego Preservation Society (LOPS): 40 Wilbur Street Lake Oswego, OR 97034 ☐Council Direction ☒Consent Agenda Staff Recommendation: Renew lease for the Ironworkers Cottage Recommended Language for Motion: Move to adopt Resolution 24-03. Project / Issue Relates To: Lease of City Property: 40 Wilbur Street Lake Oswego, OR 97034 Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable ISSUE BEFORE COUNCIL Renew Lease of City Property: 40 Wilbur Street, Lake Oswego, OR 97034 EXECUTIVE SUMMARY The five-year lease with the Lake Oswego Preservation Society expired on December 5, 2023. The new agreement would be for 5 years with no other changes proposed to the lease terms. 8.2 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY BACKGROUND City of Lake Oswego (City) leased City-owned property at 40 Wilbur Street 97034 (Ironworkers Cottage) to the Lake Oswego Preservation Society (LOPS) in 2018. • Lease was originally generated December 5, 2018 for a term of five years. • Annual rent is $1200, payable monthly in the amount of $100. The rent amount reflects the savings below market rent resulting from the exemption from property taxes. • The Museum is used as an exhibit space as well as a meeting area that is available to the community. The Lake Oswego Preservation Society is a 501(c)(3) non-profit corporation founded in 2011 with a mission "to support Lake Oswego's historic fabric through advocacy and education." The Society's entire focus is on preserving Lake Oswego's built heritage and educating the community and Lake Oswego's unique history. The work of the Society's Board and Advisory Board members includes researching, writing, and designing the Oswego Iron Heritage Trail signs (one which is at the Worker's Cottage site), Iron Furnace kiosk interpretative panels, historic tours and brochures, and historic photo exhibits. The Society currently operates the meeting and exhibit area so that it is open for public entry and access for at least 400 hours a year. The organization also provides access to the Cottage by appointment for individuals, group tours, and school classes. The existing lease was developed following a multi-year project to restore the Historic Iron Worker's Cottage and a process that included soliciting for and evaluating proposals and negotiating the lease terms with the selected organization, the Lake Oswego Preservation Society. DISCUSSION The Preservation Society is a great tenant with a mission that is perfectly aligned with the use and public access to the Cottage. They are excellent stewards of the Cottage and property and we have had no issues. The proposed lease renewal is for five (5) years, and no other changes are proposed to the terms. City Responsibilities: Preservation Society Responsibilities: • Landscape maintenance • City utilities (water, sewer) • Exterior and landscape maintenance • Contacting LOPS for scheduling meeting space for city meetings • Rent $100 per month • Cultural/Historic Exhibits • Open to the public for at least 400 hours per year • Electricity, natural gas, and garbage/recycling collection bills • Furnishings Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY ALTERNATIVES Other options for the Council to consider would be to not renew the lease, ask staff to negotiate changes to other terms of the lease, or consider seeking other tenants or using of the Cottage. Approve a new five-year lease agreement with the Lake Oswego Preservation Society to lease and operate the Historic Iron Worker's Cottage at 40 Wilbur Street. ATTACHMENTS 1. Resolution 24-03, with Exhibit A - Lease Agreement with the Lake Oswego Preservation Society Resolution 24-03 Page 1 of 1 RESOLUTION 24-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE BETWEEN THE LAKE OSWEGO PRESERVATION SOCIETY AND THE CITY FOR THE LEASE OF 40 WILBUR STREET, LAKE OSWEGO, OREGON. WHEREAS, the Lake Oswego Preservation Society currently operates their History Center and Museum out of the property known as “The Worker’s Cottage” located at 40 Wilbur Street and has done so since 2018; and WHEREAS, the previous Lease between the City of Lake Oswego and the Lake Oswego Preservation Society expired on December 5, 2023; and WHEREAS, the Lake Oswego Preservation Society and the City of Lake Oswego desire to renew the five-year lease with no changes to the terms. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Manager is hereby authorized to execute the Lease with the Lake Oswego Preservation Society in substantially the form attached as Exhibit A. Section 2. 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 20th day of February, 2024. AYES: NOES: EXCUSED: ABSTAIN: ___________________________________ Joseph M. Buck, Mayor ATTEST: ___________________________________ Kari Linder, City Recorder APPROVED AS TO FORM: ________________________________ Ellen Osoinach, City Attorney ATTACHMENT 1 Page 1 of 9 | LEASE – Worker’s Cottage LEASE THIS LEASE (“Lease”) dated as of the 6th day of December, 2023 (“Effective Date”), is between the CITY OF LAKE OSWEGO, an Oregon municipal corporation, as “Lessor,” and LAKE OSWEGO PRESERVATION SOCIETY, an Oregon nonprofit corporation, as “Lessee.” SECTION 1. PREMISES 1.1 Lessor hereby leases to Lessee and Lessee hereby from Lessor the Premises known as The Worker’s Cottage, located at 40 Wilbur Street, Lake Oswego, Oregon (“Premises), which is a historic residential structure. SECTION 2. TERM The term of this Lease (“Term”) shall commence on the Effective Date, and shall continue for five years, unless sooner terminated in accordance with the terms of this Lease. SECTION 3. RENT 3.1 Rent. 3.1.1 Rent Payments. Annual rent amount is $1,200.00, payable monthly in the amount of $100.00. The first monthly payment is paid contemporaneously with the execution of this Lease. The monthly payments hereafter shall be paid on the same date of the next following month, and continuing thereafter during the term of the Lease. 3.1.2 ORS 307.112 Statement. Due to the substantial activities Lessee will undertake pursuant to this Lease for the public benefit which cover the substantial portion of the Premises, which is consistent with its non‐profit status under ORS Chapter 65, as well as its status as described under section 501(c) of the Internal Revenue Code, Lessor and Lessee agree in accordance with ORS 307.112 that the rent amount reflects the savings below market rent resulting from the exemption from taxation for the Property, as defined herein. 3.2 Interest and Late Charges. All payments required under this Lease not paid by Lessee within ten (10) days after the due date shall bear a late fee in the amount of five percent (5%) of the overdue payment. Lessee shall pay the late charge upon demand by Lessor. SECTION 4. USES 4.1 Permitted Uses. 4.1.1 Public Uses Area. North and South Living Room and Bedroom #1 may be used for exhibit of historical and cultural artifacts related to Lake Oswego, its architecture, and its role in the history of Oregon, and for City meetings and City‐sponsored meetings and other related purposes. “Other related purposes” may include such activities as historical interpretation, Lessee’s history‐related gift shop, and EXHIBIT A Page 2 of 9 | LEASE – Worker’s Cottage lectures. “City and City‐sponsored meetings” include meetings initiated by or involving City employees or City board(s), commissions(s), or City Council members. 4.1.2 Lessee Use Area. Lessee shall use the balance of the Premises for Lessee’s own purposes, consistent with the Conditional Use Permit. Lessee shall not use the Premises for any other purpose without the advance written consent of Lessor. 4.2 Minimum Hours of Operation. Lessee shall operate the Meeting and Exhibit Area so that it is open and available for public entry and viewing of the exhibits or City or City‐sponsored meetings for a minimum of 400 hours per year. Lessee will provide the Lessor with a current schedule of public access and availability which may be adjusted with the written approval of the Lessor’s representative, provided the general level of public availability is at least 400 hours per year. 4.3 Compliance with Laws. In connection with its use, Lessee shall comply at its expense with all applicable laws, regulations and requirements of any public authority, including those regarding operation and use of the Premises and any appliances within the Lessee Use Area on the Premises. Notwithstanding the foregoing, Lessee shall not be required to ensure that the physical improvements on the Property not within the control of Lessee meet accessibility requirements. 4.4 Activities on the Premises. Lessee shall not create a nuisance or damage the reputation of the Premises or be reasonably offensive to Lessor’s use. Lessee will not permit any offensive noise, odor, or light to be emitted from the Premises. Lessee will not store anything outside the Premises except in those areas approved in writing in advance by Lessor. Lessee shall dispose of all trash and garbage on the Premises in a suitable manner. 4.5 Manner of Conducting Activities. Lessee will keep the Premises clean and orderly. Lessee will supervise its employees and volunteers, and will cause Lessee’s agents, independent contractors, employees, volunteers, suppliers, and invitees to conduct their activities in a manner that complies with the requirements of this Lease. SECTION 5. UTILITIES AND TAXES 5.1 Utilities. Lessee shall pay the charges for electricity and trash collection. Lessor shall pay water and sewer service supplied to the Premises and all exterior building and landscape maintenance. 5.2 Interruption of Service. Lessor shall not be liable for any failure or interruption of utilities or services to the Premises. 5.3 Taxes and Assessments. On or before January 15 of each year during the term of this Lease, Lessee shall either: 5.3.1 Provide Lessor with proof that it has filed with the Clackamas County Assessor a claim for exemption from ad valorem property taxation for the Premises for the following tax year; and on or before March 15 of each year during the term of this Lease, Lessee shall obtain, and provide Lessor with proof of, the grant of an exemption from taxation for the Premises for the following tax year. Lessee shall maintain the eligibility of the Premises for the exemption throughout the term of this Lease; or Page 3 of 9 | LEASE – Worker’s Cottage 5.3.2 Provide Lessor with proof that the real property taxes assessed the preceding November have been paid or will be paid in partial payments as permitted by law. If the real property taxes are be paid in partial payments, Lessee shall furnish to Lessor evidence of partial payments by the due dates required by law. Lessee shall assume, pay and hold Lessor harmless from any property taxes assessed against the Premises for any portion of the Term resulting solely from the Lessee’s use of or activities on the Premises. SECTION 6. INSURANCE; INDEMNITY 6.1 Public Liability Insurance. Lessee shall continuously maintain, at its expense, comprehensive general liability insurance, with limits of not less than $1,500,000 per person, $3,000,000 per occurrence for injury to, illness of, or death of persons occurring in, upon or about the Premises, and $200,000 per occurrence for property damage occurring in, upon or about the Premises with fire legal liability endorsement with limits no less than $200,000. All such insurance shall insure the performance by Lessee of the indemnity agreement set forth in Section 6.5 hereof. 6.2 [Reserved] 6.3 Insurance Policies. All insurance policies shall name Lessor as an additional insured and shall be with companies and with loss‐payable clauses satisfactory to Lessor and with ratings no less than A+ by A.M. Best. Copies of all policies or certificates evidencing such insurance shall be delivered to Lessor by Lessee prior to Lessee's occupancy of the Premises. All policies shall be primary and noncontributing with any insurance which may be carried by Lessor. All policies shall bear endorsements requiring thirty (30) days’ written notice to Lessor prior to any change or cancellation. 6.4 Waiver of Subrogation. Neither party shall be liable to the other for any loss or damage caused by water damage or any of the risks covered by a standard fire insurance policy with extended coverage endorsements, and there shall be no subrogated claim by one party's insurance carrier against the other party arising out of any such loss. 6.5 Indemnity of Lessor. Except when caused by Lessor’s negligence, gross negligence or willful misconduct, or that of Lessor’s agents, servants, or employees, Lessee herby waives claims against Lessor for damage to any property or injury, illness or death of any person in, upon or about the Premises. To the extent permitted by law, Lessee shall defend, indemnify and hold harmless Lessor, its Council, officers, agents. servants and employees from any and all claims or liability for any damage to any property or injury, illness, or death of any person occurring in or on the Premises when such damage, injury, illness, or death shall be caused by the act or failure to act of Lessee, its agents, volunteers, employees, invitees, contractors, or licensees. 6.6 Indemnity of Lessee. Subject to the liability limits for public bodies stated in the Oregon Tort Claims Act, ORS 30.260 to 30.300, Lessor shall defend, indemnify and hold harmless Lessee, and Lessee’s officers, directors and employees, from any and all claims for liability for any damage to any property or injury, illness, or death of any person occurring in or on the Premises when such damage, injury, illness or death shall be caused by the negligence, gross negligence or intentional misconduct of Lessor, its agents, invitees or employees. Page 4 of 9 | LEASE – Worker’s Cottage SECTION 7. REPAIRS, MAINTENANCE AND ALTERATIONS. 7.1 Condition of Premises. Lessor shall deliver the Premises in “AS IS” condition. With exception of the items specified in this section, Lessee accepts the Premises AS IS. Lessee shall, at Lessee’s own expense, keep the Premises in similar condition and repair. Lessee shall, upon the termination of this Lease, surrender the Premises in good condition and repair, at least as good as the condition it was in when accepted by Lessee, except for ordinary wear and tear, destruction and condemnation. 7.2. Janitorial. Lessee will keep the Premises clean and orderly. Lessee will dispose of trash, garbage and other materials generated by Lessee and Lessee’s activities in a reasonable manner. Lessor will provide for pick‐up and disposal of landscape debris. 7.3 Alterations. Lessee shall not make any alterations or improvements to the Premises without the prior written consent of Lessor. Any alterations or improvements to the Premises shall become part of the Premises and belong to Lessor and shall be surrendered with the Premises without disturbance upon the termination of the Lease. In the event Lessor consents to the making of any alterations or improvements, the same shall be made at Lessee's sole expense. 7.4 Furnishings. Lessee shall be responsible for furnishing the Premises, except Lessor shall furnish or approve the furnishings of meeting table and chairs for the Meeting and Exhibit Area. 7.5 Trade Fixtures. If Lessee installs fixtures or equipment within the Lessee Use Area and Lessee fails to remove such property, this shall be an abandonment of the property and Lessor shall be permitted to retain or dispose of the property and all rights of Lessee with respect to it shall cease. 7.6 Entry and Inspection. Upon giving Lessee twenty‐four hours prior notice, except in an emergency, Lessor or its agents may enter the Premises at any time to determine Lessee's compliance with this Lease or to make necessary repairs. SECTION 8. REPAIR OF LESSEE’S PROPERTY Repair, replacement, or restoration of any of the fixtures, equipment and personal property owned by Lessee shall be the responsibility of Lessee. SECTION 9. ASSIGNMENT AND SUBLETTING Lessee shall not (voluntarily or by operation of law) assign, transfer, mortgage, pledge, hypothecate, or encumber the Premises or Lessee’s leasehold estate or sublet any portion of the Lessee Use Area, or otherwise transfer any interest in the Premises, without Lessor’s prior written consent, which may be withheld in Lessor’s sole discretion. SECTION 10. SIGNS Signage is permitted provided it is in accordance with the Sign Code of the City of Lake Oswego Page 5 of 9 | LEASE – Worker’s Cottage (subject to any limiting Conditional Use Permit conditions of approval) and is approved by the Lessor. SECTION 11. OTHER OBLIGATIONS OF PARTIES 11.1 Liens. Lessee shall pay as due all claims for work done on the Premises or for services rendered or materials furnished at Lessee’s request, and shall keep the Premises free from any liens created by Lessee. If Lessee fails to pay such claim or to discharge any such lien within thirty (30) days of demand, Lessor may do so and collect such amount from Lessee upon demand. Amounts paid by Lessor shall bear interest and be repaid by Lessee as provided in paragraph 12.3 below. Such payment by Lessor shall not constitute a waiver of any right or remedy Lessor may have because of Lessee's default. 11.2 Holding Over. If Lessee does not vacate the Premises at the time required, Lessor may, upon five (5) days’ prior written notice to Lessee, eject Lessee from the Premises and recover damages caused by wrongful hold over. SECTION 12. DEFAULTS; REMEDIES 12.1 Default. The following shall be events of default: 12.1.1 Payment Default. Failure of Lessee to make any payment within ten (10) days after receiving written notice from Lessor that it is past due. 12.1.2 Default in Other Covenant. Failure of Lessee to comply with any other term or condition or to fulfill any other obligation of this Lease within seventy‐two (72) hours’ written notice by Lessor specifying the nature of the default with reasonable particularity shall constitute a default. 12.2 Remedies on Default. Upon default, Lessor may exercise any one or more of the following remedies or any other remedy available under applicable law: 12.2.1 Retake Possession. To the extent permitted by law, Lessor may retake possession of the Lessee Use Area and terminate Lessee's tenancy, either by summary proceedings, or any other applicable action or proceeding. Upon retaking the Lessee Use Area, Lessor may use the Premises for Lessor's own purposes or relet it upon any reasonable terms without prejudice to any other remedies that Lessor may have by reason of Lessee's default. None of these actions will be deemed an acceptance of surrender by Lessee. 12.2.2 Relet the Lessee Use Area. Lessor, at its option, may relet the whole or any part of the Lessee Use Area, from time to time, either in the name of Lessor or otherwise, to such tenants, for such terms ending before, on, or after the expiration date of the lease term, at such rentals and upon such other conditions (including concessions and free rent periods) as Lessor, in its sole discretion, may determine to be appropriate. Lessor shall use commercially reasonable efforts to mitigate any damages incurred by Lessor as a result of any default by Lessee. However, so long as commercially reasonable efforts are made, no failure to mitigate damages shall operate to relieve Lessee of any liability under this Lease or otherwise affect such liability. Lessor at its option may make such physical changes to the Lessee Use Area as are commercially reasonable in connection with any such reletting or proposed reletting without relieving Lessee of any liability under this Lease or otherwise affecting Lessee's liability. Page 6 of 9 | LEASE – Worker’s Cottage 12.2.3 Damages for Default. Whether or not Lessor retakes possession or relets the Lessee Use Area, Lessor may recover all damages caused by the default (including but not limited to attorneys' fees reasonably incurred, and costs of reletting). 12.3 Cure of Lessee's Default. Without prejudice to any other remedy for default, Lessor may perform any obligation of Lessee or make any payment required to cure a default by Lessee. Lessor’s cost of such performance, including reasonable attorneys' fees and disbursements, shall immediately be repaid by Lessee upon demand, together with interest from the date of expenditure until fully paid at the rate of twelve percent (12%) per annum, but not in any event at a rate greater than the maximum rate of interest permitted by law. 12.4 Cumulative Remedies. The remedies provided for in this Lease are cumulative and not intended to be exclusive of any other remedy to which Lessor may lawfully be entitled at any time. SECTION 13. MISCELLANEOUS 13.1 Waivers. No waiver by either party of performance of any provision of this Lease shall be deemed to be a waiver of nor prejudice such party's right to otherwise require performance of the same provision or any other provision. 13.2 Notices. All notices under this Lease shall be in writing effective when delivered in person, or if mailed, upon deposit in the United States Mail, certified and postage prepaid and addressed to the address of Lessee or Lessor shown below or at such other address as may be designated by either party by notice to the other, or if emailed, upon sending the email to the designated email address of the party’s contact person. 13.3 Construction. (a) This Lease shall be construed and governed by the laws of the State of Oregon; (b) the invalidity or unenforceability of any provision hereof shall not affect or impair any other provisions hereof; (c) this Lease constitutes the entire agreement of the parties and supersedes all prior agreements or understandings between the parties with respect to the subject matter hereof; (d) this Lease may not be modified or amended except by written agreement signed and acknowledged by both parties; (e) if there be more than one tenant, the obligations hereunder imposed upon Lessee shall be joint and several; (f) time is of the essence of this Lease in each and every provision hereof; and (g) nothing contained herein shall create the relationship of principal and agent or of partnership or of joint venture between the parties hereto and no provisions contained herein shall be deemed to create any relationship other than that of landlord and Lessee. 13.4 Attorneys' Fees. In the event suit or action is instituted to interpret or enforce the terms of this Lease, the prevailing party shall be entitled to recover from the other party such sum as the court may adjudge reasonable as attorneys' fees at trial, on petition for review, or on appeal, in addition to all other sums provided by law. In the event that the prevailing party is represented by “in‐house” counsel, the prevailing party shall nevertheless be entitled to recover reasonable attorney fees based upon the reasonable time incurred and the attorney fee rates and charges reasonably and generally accepted in the metropolitan Portland, Oregon, area for the type of legal services performed. 13.5 Hazardous Substances. Lessee shall not use, generate, transport, treat, store, dispose of or Page 7 of 9 | LEASE – Worker’s Cottage otherwise handle Hazardous Substances on the Premises without the prior written consent of Lessor. Lessor may withhold such consent in its sole discretion or may condition such consent upon Lessee's agreement to comply with requirements designated by Lessor. Notwithstanding the foregoing, Lessor consents to the use by Lessee of normal and customary chemicals and substances (including Hazardous Materials) applied in accordance with usual and customary janitorial and office uses in quantities in accordance with all laws. The term “Hazardous Substances” shall mean any and all hazardous, toxic, infectious or radioactive substances, wastes or materials as defined or listed by any federal, state or local statute, regulation or ordinance pertaining to the protection of human health or the environment and shall specifically include petroleum oil and its fractions. 13.6 Force Majeure. Whenever this Lease prescribes a period of time for action to be taken by a party, that party will not be liable or responsible for, and the computation for the period of time will exclude, any delays due to strikes, riots, acts of God, war, acts of terrorism, or any other causes beyond the reasonable control of the party. This provision will not be applicable to excuse any delay in the payment of rent or any other money owed by Lessee to Lessor. 13.7 Authority. The persons executing this Lease on behalf of Lessor and Lessee each hereby covenant and warrant that the execution of this Lease is duly authorized by the party executing this Lease, that such party is qualified to do business in Oregon, and that the person signing on behalf of each party was duly authorized by that party to bind that party to this Lease. [Signatures on the following page.] Page 8 of 9 | LEASE – Worker’s Cottage LESSOR: LESSEE: CITY OF LAKE OSWEGO, an Oregon municipal corporation LAKE OSWEGO PRESERVATION SOCIETY, an Oregon nonprofit corporation ______________________________________ By: Martha Bennett, City Manager ______________________________________ By: Denise Bartelt, President Date: ________________________, 2024 Date: ________________________, 2024 Lessor Address: Lessee Address: City of Lake Oswego Attn: City Manager’s Office PO Box 369 Lake Oswego, Oregon 97034 cityrecorder@lakeoswego.city Lake Oswego Preservation Society Attn: President PO Box 502 Marylhurst, Oregon 97036 4lohistory@lakeoswegopreservationsociety.org EXHIBITS: A – Schedule of Public Access Days and Hours Page 9 of 9 | LEASE – Worker’s Cottage Exhibit A ‐ Public Access Days and Hours Public Access The worker's cottage will be open to the public a minimum of 400 hours per year: 6 hours per week and 3 hours one weekend a month. One or more volunteers will staff the facility and the number of visitors will be tracked. The schedule is every Tuesday and Thursday from 1:00 pm to 4:00 pm, except for holidays. It is very important that a museum‐type facility be open on weekends so families and those who work 8:00 am to 5:00 pm can visit. We propose to open on the first Saturday of every month from 1:00 pm to 4:00 pm, except for holidays. The cottage will also be open by appointment for individuals, group tours, and school classes. These special events will satisfy the requirement for the remaining 52 open hours. The Society reserves the right to change the opening days and times to better accommodate the public and to offer different summer and winter hours. City Meetings Meetings of City employees or City board and commission members may be scheduled for the worker's cottage as long as they are covered by the City's insurance policy. The City will maintain a key for this purpose and the premises need to be left just as they were found. To schedule, call 503‐481‐2479 8:00 am to 5:00 pm weekdays or email info@lakeoswegopreservationsociety.org at least one week in advance of the desired meeting date. Society Use The Society expects to use the property for its own purposes, on average, about 4‐6 times per month. These Society uses would usually include fewer than 10 participants and would be of brief duration, one to two hours. Included in these activities would be, monthly Board of Directors meetings, office work, event planning, exhibit mounting, and volunteer training sessions. We see a future in our past. PO Box 502 | Marylhurst, Oregon 97036 |a 501 (c) (3) organization 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: 2024 City Council Preferred Future, Goals, and Initiatives Meeting Date: February 20, 2024 Report Date: February 13, 2024 Staff Member: Martha Bennett, City Manager Department: City Manager’s Office Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded☐Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: Council adoption of the 2024 Council and Initiatives Recommended Language for Motion: Move to adopt the City Council 2024 Goals and Initiatives. Project / Issue Relates To: Issue before Council (Highlight Policy Question): ☒Council Goals/Priorities ☐Adopted Master Plan(s)☐Not Applicable EXECUTIVE SUMMARY On January 30, 2024 the City Council met to discuss the major goals and projects that the City will undertake in the coming year. In all, Council agreed on 19 major initiatives under 8 different major goals. 8.3 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY BACKGROUND The City Council sets goals each year to provide strategic direction for the City, identify the opportunities and challenges that face the community and the City, and set priorities for Council time and City efforts. In effect, Council goals set the agenda for the coming year and represent the consensus of the Council about the highest priority work elements. DISCUSSION After Council adopts its strategic workplan for the year, the City Manager will assign each of the draft initiatives or work elements to a department or team of departments. The lead staff person will develop a work plan for each initiative. The work plan will include the major steps, the time expected to complete the work, the resources needed to complete the work, and whether the resources are currently budgeted. The first report to Council will be the proposed workplans and draft initiatives scheduled to come to Council either on your March 5 or your March 19 City Council meeting FISCAL IMPACT Staff will identify potential resource or budget impacts as part of the workplans. RECOMMENDATION Staff recommends that the Council adopt the 2024 Council Goals and Initiatives. ATTACHMENTS 1. 2024 Council Preferred Future, Goals and Initiatives. 2024 COUNCIL PREFERRED FUTURE, GOALS, AND INITIATIVES For Adoption on February 20, 2024 Our Preferred Future In 2040, Lake Oswego is a safe and welcoming community where people and families at all stages of life, backgrounds, and abilities thrive. Our incomparable quality of life is founded on outstanding municipal services; destination dining and shopping districts; innovative businesses; premier schools; varied housing options; our spectacular setting along Oswego Lake and the Willamette River; a deep connection to a beautiful and healthy natural environment; arts, cultural and educational opportunities; and exceptionally engaged people. Ensure a safe, secure, and prepared community •Continue implementation of the process to increase preparedness of Lake Oswego residents, especially seniors and people with disabilities, in the event of a disaster* Support business investment and job creation in Lake Oswego •Break ground on the North Anchor Redevelopment projects* •Update the Lake Grove Urban Renewal Plan and begin work on a plan to use urban renewal to support the redevelopment of Foothills * •Implement the initiatives in the 2022 Economic Development Strategy* •Develop a funding strategy for a longer-term contract with the Chamber of Commerce to implement a portion of the 2022 Economic Development Strategy. Evaluate the possibility of the business license fee as a funding option Foster a welcoming and inclusive community where all people have the opportunity to thrive and have equitable access to City services •Continue efforts related to DEI, including: prioritize equity in the delivery of city services; formalize a translation and interpretation policy; explore a partnership with LOSD to host an annual event welcoming new residents to the city; and provide information on how to engage and ways to access services and programs* Combat climate change and strengthen the community’s resilience to climate impacts •Adopt a facilities policy and fleet policy that integrates climate and sustainability. Integrate climate goals and issues into the capital improvement plan ATTACHMENT 1 • Develop strategies to increase clean energy use and energy efficiency decisions by residents and businesses • Adopt an updated Urban and Community Forest Plan. Begin implementation of any non-regulatory elements in the plan. Start the process for targeted amendments to the Tree Code after adoption of the Plan* Strengthen public trust in the City through continuous improvement, outstanding customer service, infrastructure investments, and fiscal stewardship • Collaborate with the City of Portland to make a financially and environmentally responsible long- term investment in a wastewater treatment plant* • Develop a strategy for an all-ages and all-activities community center on the west side of town that would include event and meeting spaces, public services, and may include library services. Collaborate with LOSD and other stakeholders as part of this project • Begin a needs assessment and community engagement process to rebuild the South Shore Fire Station • Conduct a long-term strategic review of the city's finances, including revenues, expenditures, and capital funding* Invest in Lake Oswego’s high-quality parks, natural areas, and recreational amenities • Guide delivery of the LORAC and Golf Course and oversee the launch of operations of these facilities* • Adopt Parks Plan 2040* • Prioritize and adopt a funding strategy for partially funded parks projects Improve transportation connections, mobility and safety for all travelers and all types of trips in Lake Oswego • Continue construction of sidewalks and pathways, focusing on safe routes to schools* • Adopt the "20 is plenty" speed program for residential/local streets Conserve the community’s character, sense of place, and quality of life by planning for change and growth • Continue work on key housing initiatives, the housing production strategy, guiding the HACC/Metro project on the Boones Ferry Road, and support for other non-profit led housing projects* *an asterisk indicates Council initiatives continuing from last year 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-07, Adopting a Supplemental Budget Meeting Date: February 20, 2024 Report Date: February 2, 2024 Staff Member: Shawn Cross, Finance Director Department: Finance Action Required Advisory Board/Commission Recommendation ☐Motion ☐Approval ☒Public Hearing ☐Denial☐Ordinance ☐None Forwarded ☒Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction☐Consent Agenda Staff Recommendation: Adopt Resolution 24-07 as submitted. Recommended Language for Motion: Move to adopt Resolution 24-07, modifying the 2023- 25 biennial budget through a supplemental budget. Project / Issue Relates To: 2023-25 Biennial Budget Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable BACKGROUND Throughout a budget year, new information may give reason to make adjustments to the adopted budget. Local Budget Law allows these adjustments under certain conditions and with certain requirements. This request is brought forward as a consent resolution transfer and does not require a public hearing. DISCUSSION This budget amendment is requested after a staff review of the comparison of actual biennium- to-date revenues and expenditures with the current budget. Budgets were also evaluated to 10.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY ensure there was sufficient appropriation for transactions that will occur before the end of the biennium (Bn). Explanations for all of the adjustments contained in this supplemental budget are included below. • The Parks Bond Fund needs to reallocate some appropriations from Bn 2021-23 to Bn 2023-25. A few of the capital projects costs were not as high as we estimated they would be during the budget process. The projects are still on track for overall project cost, the timing of when the expenditures are happening has changed. Because of this the fund started the biennium with a larger beginning balance than was budgeted. Now we are basically rolling over those appropriations into to current biennium from the previous. The expenditures pertain to the Willamette Greenway and Golf Course projects. The same rollover of appropriation is needed for both the Stormwater and Street Funds. The expenditures originally estimated to happen in Bn 2021-23 are now happening in Bn 2023-25. The Stormwater Fund projects are specifically the Daniel Way, Lake View Boulevard, and the Blue Heron Outfall projects. The North Shore Bridge, Lake View Boulevard, and the ’22 Pathway Program projects are the projects for the Street Fund. • The SDC Fund needs an adjustment related to the Jean Road Signal project. The scope of the project has increased requiring additional funding. The additional amount will come from both a larger beginning balance than originally budgeted and a small amount from the Fund’s contingency. • The Water Fund is requiring an adjustment to continue the Automated Meter Infrastructure (AMI) project. The City has been working on the residential meters for the past few years. With this phase of the project nearing completion early than originally budgeted, it is time to transition to the commercial meters. This adjustment covers the cost of purchasing all the meters and the labor to have them installed. It is coming from a larger beginning balance than originally budgeted due to savings and higher summer revenues due to a dry summer in fiscal year 2022-23. FISCAL IMPACT The fiscal impact is described in detail on the resolution itself. RECOMMENDATION Adopt Resolution 24-07 ATTACHMENTS 1. Resolution 24-07 RESOLUTION 24-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO ADJUSTING THE BUDGET FOR THE BIENNIUM COMMENCING JULY 1, 2023 BY ADOPTING A SUPPLEMENTAL BUDGET, APPROVING RESOURCES/REQUIREMENTS, AND MAKING APPROPRIATIONS. WHEREAS, Certain conditions and situations have arisen since the initial preparation of the 2023-25 budget and necessitate changes in financial planning, now, therefore, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Council hereby adjusts the budget for biennium 2023-25 in the amount of $6,187,000. Section 2. The City Council hereby authorizes: A) The appropriation of resources and approval of requirements listed below; B) The transfers of funds and transfers of fund appropriations as listed herein; Parks Bond Fund Adopted Revised Difference Resources: Beginning Balance 9,426,781$ 10,659,781$ 1,233,000$ Requirements: Parks Bond Department 2,440,000$ 3,673,000$ 1,233,000$ 1,233,000$ Explanation of Major Changes: To roll over expenditure appropriation from the prior biennium for the Willamette Greenway and Golf Course projects. Water Fund Adopted Revised Difference Requirements: Water Department 29,264,000$ 31,309,000$ 2,045,000$ Contingency 3,608,068 1,563,068 (2,045,000) -$ Explanation of Major Changes: For the purchase and installation of the commercial AMI meters. Stormwater Fund Adopted Revised Difference Resources: 3,863,521$ 5,063,521$ 1,200,000$ Requirements: Stormwater Department 10,295,000$ 11,495,000$ 1,200,000$ Explanation of Major Changes: To roll over expenditure appropriation from the prior biennium for the Daniel Way, Lake View Blvd, and Blue Heron Outfall projects. Resolution #24-07 Page 1 of 2 ATTACHMENT 1 Street Fund Adopted Revised Difference Resources: Beginning Balance 10,056,670$ 12,681,670$ 2,625,000$ Requirements: Street Department 25,294,000$ 27,919,000$ 2,625,000$ Explanation of Major Changes: To roll over expenditure appropriation from the prior biennium for the North Shore Bridege, Lake View Blvd, and '22 Pathway Program projects. System Development Charges Fund Adopted Revised Difference Resources: Beginning Balance 18,954,849$ 20,083,849$ 1,129,000$ Requirements: System Development Charges Dept 9,200,000$ 10,700,000$ 1,500,000$ Contingency 12,600,849 12,229,849 (371,000) 1,129,000$ Explanation of Major Changes: To cover the costs for the increase in scope for the Jean Road Signal project. Considered and enacted at a regular meeting of the City Council held on the 20th day of February, 2024. AYES: NOES: ABSTAIN: ABSENT: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Resolution #24-07 Page 2 of 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Urban and Community Forest Plan Update (PP 21-0008) Meeting Date: February 20, 2024 Report Date: February 9, 2024 Staff Member: Jessica Numanoglu, Director Department: Community Development Action Required Advisory Board/Commission Recommendation ☐Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded ☐Resolution ☒Not Applicable ☐Information Only Comments: ☒Council Direction☐Consent Agenda Staff Recommendation: Provide feedback on an early draft of the updated Urban and Community Forest Plan (UCFP). Recommended Language for Motion: N/A Project / Issue Relates To: Climate action and urban forestry Issue before Council: Staff is seeking feedback on the Draft UCFP with regard to vision alignment, key findings, guiding principles, strategic plan actions, and potential future revisions to the Tree Code. ☒City Council Goal: “Combat climate change and strengthen the community’s resilience to climate impact.” Initiative: “Update the Urban and Community Forest Plan using the findings of the 2022 State of the Urban Forest Report.” EXECUTIVE SUMMARY The Draft UCFP, presented in Attachment 1, addresses Urban Forest Sustainability and Urban Forest Management, and includes a review of existing codes, plans and policies, and a Strategic Plan outlining specific actions based on guiding principles that emphasize a well-funded urban 11.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY forest, environmental and social benefits, improved quality of life, resilience to climate change, and a balance between trees, housing needs, and infrastructure. On December 28, 2023, the Draft UCFP was posted online and in late January 2024 was reviewed in two joint work sessions by boards and commissions as well as with stakeholder focus group members. A summary of the comments and feedback received is attached to this report for the Council’s consideration in its review of the Draft UCFP. Further refinements will be made to the next draft of the UCFP based on feedback from the public, boards and commissions, stakeholders and Council. The next draft of the UCFP will be reviewed by the Council in May before the final draft is presented for adoption by the Council in June. BACKGROUND 2007 Urban and Community Forestry Plan The City’s original Urban and Community Forest Plan (UCFP) was completed in 2007 (Attachment 2). The overall goal of the plan was to create a comprehensive, sustainable, and integrated approach to tree management on both public and private property. It contains goals and actions for: Stewardship and Education, Forest Health, Forest Size/Canopy, Tree Maintenance, Invasive Species, Program Integration, and Funding. The Plan also included an action measure recommending that the city produce an annual State of the Urban Forest Report (SURF) to provide quantitative information about the size and condition of Lake Oswego’s urban forest and the functions it serves. The first SURF was completed in 2009, but was not updated until 2022. The 2022 SURF (Attachment 3) provides important baseline data that helped inform the current update to the UCFP. Need for an Update to the Urban and Community Forestry Plan Since the 2007 UCFP was adopted 17 years ago, plans, policies and codes relating to urban forest management have been updated or adopted by the City, including the 2016 adoption of the Healthy Ecosystems Chapter of the Comprehensive Plan, 2020 Sustainability and Climate Action Plan, 2022 Natural Areas Habitat Management Plan, and 2022 SURF. While the 2007 UCFP contains action measures that are currently implemented and remain relevant today, there are issues, such as climate change, and emerging threats, such as invasive pests (Emerald Ash Borer and Mediterranean Oak Borer) and wildfire risks that are not addressed in the 2007 Plan. The UCFP update was initiated in response to the 2022/2023 City Council goal to “combat climate change and strengthen the community’s resilience to climate impacts” after the update to the SURF was completed in December 2022. Tree Code The purpose of the City’s Tree Code (LOC Chapter 55) is to maintain the wooded character of the City and protect trees as a natural resource by regulating the removal of trees and prescribing protection measures to prevent damage to trees during site development. LOC Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Chapter 55 also contains the Heritage Tree provisions for nominating and recognizing Heritage Trees in the City. During public outreach conducted over the summer for the update to the UCFP, many of the comments that were received focused on the Tree Code (see Attachment 1, Appendix A: Community Engagement memo). While the Tree Code is an important regulatory tool to help the City achieve certain urban forest management policy objectives, it is not a mechanism to manage the whole health and integrity of the urban forest ecosystem; rather, that is the purpose of the UCFP. The Draft UCFP addresses the Tree Code starting on page 37 of Attachment 1 and in Appendix C: Municipal Code Redline. Please note that amendments to the Tree Code are not part of the scope of work for the UCFP update. The Council is set to adopt a Goal for 2024 that includes an initiative to start the process for targeted amendments to the Tree Code after adoption of the updated UCFP later this spring. Tree Code amendments will be a separate process that will include broad community engagement and consultation with the Council and City boards and commissions. DISCUSSION Draft Urban and Community Forest Plan The Draft UCFP is included in Attachment 1 and consists of the following documents: • Urban and Community Forestry Plan Update Draft • Appendix A: Community Engagement Memo • Appendix B: Pest Risk Assessment • Appendix C: Municipal Code Redline The purpose of the UCFP is to bring together policies, practices, and plans related to Lake Oswego’s urban forest and serve as a planning and policy tool to guide management of the urban forest as a valuable community asset. The Draft updated Plan addresses Urban Forest Sustainability, Urban Forest Management, includes a review of current City Urban Forest Codes, Plans and Policies along with recommendations, and a Strategic Plan outlining specific actions based on the following guiding principles: • An urban forest that is cared for through sufficient financial investment; • Maintain the urban forest as a living asset to ensure it can reach its potential to provide the full range of environmental and social benefits and services; • An enhanced quality of life for community members; • A resilient urban forest that is well prepared for climate change; and • An urban forest that balances trees, housing needs and infrastructure. Page 4 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Work on the UCFP update began in Spring 2023 starting with a review and analysis of all current City plans, policies and codes related to the urban forest as well as interviews with key City staff in all departments involved in the regulation, maintenance or planting of trees, and a kickoff meeting with the Council. Community engagement activities were conducted over Summer 2023 and included focus group meetings with stakeholders, outreach at two City events, an online survey that received 582 responses, and outreach through social media and City newsletters. Throughout the project a Technical Advisory Committee (TAC) consisting of City staff with subject matter expertise, a member of the Oswego Lake Watershed Council, and a state representative from the Oregon Department of Forestry has provided input on the process and feedback on work products. The project is scheduled to be completed in June 2024. Public Comments and Board/Commission Feedback on Draft UCFP In January 2024, staff and the project consultant attended two joint work sessions, one with the Planning and Development Review Commissions (January 22) and one with the Parks, Recreation and Natural Resources and Sustainability Advisory Boards (January 24), and held an online meeting with stakeholders (January 25) in order to receive feedback on the Draft UCFP. The Draft UCFP was posted on the project web page on December 28, 2023, to allow sufficient time for review by the public and board and commission members prior to these meetings. A summary of the feedback from the joint study sessions and the stakeholder meeting is included in Attachment 5. Ten written public comments on the Draft UCFP were also received. The comments are summarized in Attachment 4, with the full written comments included in Attachments 4-A through 4-J. Request for Council Feedback The version of the UCFP in Attachment 1 is an early draft that will be further refined from feedback received from the Planning and Development Review Commissions, the Parks and Natural Resources and Sustainability Advisory Boards, Stakeholder Focus Groups, and the Council. To help guide the discussion at the study session, please consider the following questions in your review of the Draft UCFP: • Does the vision statement (see page v of Atachment 1) of the UCFP reflect the ideal vision for the future state of Lake Oswego’s urban forest? • Are there addi�onal key findings in the UCFP that should be highlighted (see pages 7-8 of Atachment 1)? • Do the guiding principles of the strategic plan reflect the Lake Oswego community’s values and priori�es for the urban forest (see pages 47-48 of Atachment 1)? Are there specific values and priori�es that could be beter represented? • Will the ac�ons in the strategic plan help the City progress towards achieving its vision for the urban forest (see pages 48-52 of Atachment 1)? Page 5 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY • Are the recommended amendments to the Tree Code on pages 39-40 of Atachment 1 in alignment with community values and priori�es for the urban forest? ATTACHMENTS (LINKS) 1. Urban and Community Forestry Plan Draft 3: Boards/Commissions/Focus Group/City Council Appendix A: Community Engagement Memo Appendix B: Pest Risk Assessment Appendix C: Municipal Code Redline 2. 2007 Urban and Community Forestry Plan 3. 2022 State of the Urban Forest Report 4. Summary of Table Written Public Comments on Draft 3 UCFP 4-A Todd Prager Comments on UCFP, 12-30-23 4-B Todd Prager Comments on Appendix C of UCFP, 01-05-24 4-C Tom Bland Comments on UCFP, 01-11-24 4-D Mike Buck Comments on UCFP, 01-11-24 4-E Betsy Wosko Comments on UCFP, 01-15-24 4-F Deanne Knipple Comments on UCFP, 01-15-24 4-G Kathleen Wiens Comments on UCFP, 01-15-24 4-H Kelly McCall, Renaissance Homes, Comments on UCFP, 01-15-24 4-I Mark Puhlman Comments on UCFP, 01-15-24 4-J Stephanie Wagner, OLWC, Comments on UCFP 01-15-24 5. Summary of Board/Commission and Stakeholder Comments To view these documents and other documents in the public records folder, visit the Planning Project web page: https://www.ci.oswego.or.us/planning/urban-community-forestry-plan-update