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Agenda Packet - 2024-06-18 AGENDA r(c O CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING Tuesday, June 18, 2024 O 3:00 p.m. City Hall Council Chamber- 3rd Floor �kEGOr� 380 A Avenue, Lake Oswego, OR 97034 Staff Contact: Kari Linder, CityRecorder@lakeoswego.city Virtual Access ADA Accommodation Requests Translation Services This meeting will be held in lakeoswego.city/accommodation Traduccion o interpretacion person.To participate remotely, 503-635-0282; Relay 711 Ti please email the City Recorder by Please allow four business days to gc41-4 o noon the day of the meeting. process your request. 5 503-534-5738 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, CITY COUNCIL 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of ORS 192.660 (2)(d) Conduct deliberations with persons designated to carry on labor negotiations; and (f) Consider records that are exempt by law from public inspection. The remainder of the public portion of the meeting will resume at 4:00 p.m. 5. PRESENTATIONS 5.1 Proclamation— Disability Pride Awareness Month. 5.2 Proclamation— National Parks and Recreation Month. 5.3 Annual Meals on Wheels Donation. 6. 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. Respect. tx::el en e. Trust. Se.vic. 503-534-4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 7. CONSENT AGENDA The Consent Agenda allows the City Council to consider items that require no discussion. An item may only be discussed if it is pulled from the Consent Agenda. The City Council makes one motion covering all items included on the Consent Agenda. Motion: Move to adopt the Consent Agenda. 7.1 WO 320.4, Public Improvement Contract Award for the Construction of the Lanewood I Douglas Circle Pathway Project. Motion: Move to authorize the City Manager to sign a Public Improvement Contract with Interlaken, Inc. in the amount of$700,990 for the construction of WO 320.4, Lanewood I Douglas Circle Pathway Project. 7.2 Resolution 24-14, A Resolution of the City Council of the City of Lake Oswego Adjusting the Compensation for Management and Confidential Positions Not Represented by a Bargaining Unit. Motion: Move to adopt Resolution 24-14. 7.3 Resolution 24-25, A Resolution of the City Council of the City of Lake Oswego Approving a Tax Exemption for the Mercy Greenbrae Affordable Housing Development Located at 3190 Furman Drive from the City Tax Levy. Motion: Move to adopt Resolution 24-25. 7.4 Resolution 24-27, A Resolution of the City Council of the City of Lake Oswego Authorizing the City Manager to Sign the Intergovernmental Agreement with the City of West Linn to Continue to Provide Behavioral Health Specialist Services for Fiscal Years 2024-2027. Motion: Move to adopt Resolution 24-27. 7.5 Resolution 24-31, A Resolution of the City Council of the City of Lake Oswego Authorizing the Mayor to Execute Amendment No. 2 to the Subrecipient Agreement 24-006 Between the City and Clackamas County Human Services Department's Social Services Division for Fiscal Years 2024-2027. Motion: Move to adopt Resolution 24-31. 8. ITEMS REMOVED FROM CONSENT AGENDA Respect, Excellence. Trust. Service. 503-534-4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 3 9. CONSENT AGENDA—Councilors Only [Note: Only Councilors vote to concur in the Mayor's appointments of Committee members, per Charter, Section 19] 9.1 Resolution 24-15, A Resolution of the City Councilors of the City of Lake Oswego Approving Appointments to the 50+ Advisory Board, Budget Committee, Development Review Commission, Diversity, Equity and Inclusion Advisory Board, Historic Resources Advisory Board, Library Advisory Board, Parks, Recreation and Natural Resources Advisory Board, Planning Commission, Sustainability Advisory Board, and Transportation Advisory Board. Motion: Move to adopt Resolution 24-15. 10. PUBLIC HEARING 10.1 Resolution 24-24, A Resolution of the City Council of the City of Lake Oswego Adopting an Updated Urban and Community Forestry Plan (PP 21-0008). Public Hearing Process: 1. Review of hearing procedure by Ellen Osoinach, City Attorney 2. Staff Report by Jessica Numanoglu, Community Development Director 3. Testimony—the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; 5 minutes per individual 4. Questions of Staff Motion: Move to adopt Resolution 24-24. 11. STUDY SESSION 11.1 Civil Violation Code Enforcement Update. 12. INFORMATION FROM COUNCIL 13. REPORTS OF OFFICERS 14. ADJOURNMENT, CITY COUNCIL Respect, Excellence. Trust. Service. 503-534-4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 4 15. CALL TO ORDER, REDEVELOPMENT AGENCY (LORA) 16. BOARD BUSINESS 16.1 Fourth Amendment to the Disposition and Development Agreement for the North Anchor Project. Motion: Move to authorize the Executive Director to execute the fourth amendment to the December 7, 2021 Agreement for the Disposition and Development for the North Anchor Properties. 16.2 Approval of Meeting Minutes February 20, 2024, Draft LORA Meeting Minutes Motion: Move to approve the LORA meeting minutes as written. 16.3 Board Members Only [Note: Only Board Members vote to concur in the Chair's appointments of Committee members, per Charter, Section 19] LORA Resolution 24-01, A Resolution of the Lake Oswego Redevelopment Agency (LORA) Making Appointments to the LORA Budget Committee. Motion: Move to adopt LORA Resolution 24-01. 17. ADJOURNMENT, REDEVELOPMENT AGENCY (LORA) Respect. Excellence. Trust. Service. 503-534-4225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 5.1 Proclamation OREGO� Disability Pride Month WHEREAS, the Americans with Disabilities Act (ADA) was signed into law on July 26, 1990, marking a significant milestone in the ongoing struggle for the rights and inclusion of individuals with disabilities; and WHEREAS, Disability Pride Month is an annual event celebrated in July to commemorate the signing of the ADA and to recognize and honor the history, achievements, experiences, and struggles of people with disabilities; and WHEREAS, Disability Pride Month promotes visibility and mainstream awareness of the positive pride felt by people with disabilities, celebrating diversity and fostering a society that is inclusive and accessible to all individuals, regardless of ability; and WHEREAS, individuals with disabilities contribute to the cultural, social, economic, and political fabric of our community, enriching the lives of all residents through their unique perspectives and talents; and WHEREAS,the City of Lake Oswego is committed to supporting the rights of individuals with disabilities and ensuring that all public spaces, services, and opportunities are accessible and equitable; and WHEREAS, celebrating Disability Pride Month provides an opportunity to educate the public about disability issues, challenge stereotypes and stigmas, and promote a more inclusive and respectful community; and WHEREAS,the recognition of Disability Pride Month encourages all community members to acknowledge and appreciate the contributions of individuals with disabilities and to strive toward a future where all people are valued and empowered; NOW,THEREFORE, BE IT RESOLVED, that we, the Lake Oswego City Council, proclaim July 2024 as Disability Pride Month in the City of Lake Oswego and encourage all community members to join in celebrating and promoting the dignity, equality, and inclusion of individuals with disabilities. Joseph M. Buck, Mayor June 18, 2024 5.2 X*(1)0t Proclamation Ki EGO� National Parks and Recreation Month WHEREAS parks and recreation programs are an integral part of communities throughout this country, including Lake Oswego, Oregon; and WHEREAS parks and recreation promotes health and wellness, improving the physical and mental health of people who live near parks; and WHEREAS parks and recreation promotes time spent in nature, which positively impacts mental health by increasing cognitive performance and well-being, and alleviating illnesses such as depression, attention deficit disorders, and Alzheimers; and WHEREAS parks and recreation encourages physical activities by providing space for popular sports, hiking trails, swimming pools and many other activities designed to promote active lifestyles; and WHEREAS parks and recreation is a leading provider of healthy meals, nutrition services and education; and WHEREAS park and recreation programming and education activities, such as out-of-school time programming, youth sports and environmental education, are critical to childhood development; and WHEREAS parks and recreation increases a community's economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction; and WHEREAS parks and recreation is fundamental to the environmental well-being of our community; and WHEREAS parks and recreation is essential and adaptable infrastructure that makes our communities resilient in the face of natural disasters and climate change; and WHEREAS our parks and natural recreation areas ensure the ecological beauty of our community and provide a place for children and adults to connect with nature and recreate outdoors; and 5.2 F� E os 41111r lircj Proclamation GREGO� National Parks and Recreation Month WHEREAS the U.S. House of Representatives has designated July as Parks and Recreation Month; and WHEREAS Lake Oswego, Oregon recognizes the benefits derived from parks and recreation resources. NOW THEREFORE, BE IT RESOLVED BY the City Council of the City of Lake Oswego that July is recognized as National Parks and Recreation Month in Lake Oswego, Oregon. Joseph M. Buck, Mayor June 18, 2024 7.1 O F �s� COUNCIL REPORT Ci cEGO� Subject: Award a Public Improvement Contract for the construction of WO 320.4 Lanewood/Douglas Circle Pathway Project. Meeting Date: June 18, 2024 Staff Member: Will Farley, PE, Assistant City Engineer Report Date: June 7, 2024 Heike Shipton, PE, Senior Associate Engineer Department: Public Works - Engineering Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Award a Public Improvement Contract. Recommended Language for Motion: Move to authorize the City Manager to sign a Public Improvement Contract with Interlaken, Inc. in the amount of$700,990 for the construction of WO 320.4 Lanewood/Douglas Circle Pathway Project. Project/ Issue Relates To: Adopted Capital Improvement Plan (CIP) project and Council Goals for prioritizing pathway projects. Issue before Council (Highlight Policy Question): ❑X Council Goals/Priorities ❑X Adopted Master Plan(s) ❑Not Applicable BACKGROUND The 2022 Pathway project (Work Order 320) is identified as an important component in the City's Transportation System Plan (TSP) and is funded under the current Capital Improvement Plan (CIP). The four locations included in the Project were recommended by the Transportation Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 Advisory Board (TAB). These locations are Douglas Way, Boca Ratan Drive, Lanewood Street/Douglas Circle, and Hallinan Street. This project plans to deliver these four pathways to provide safer routes to school and increase overall pedestrian accessibility. On December 21, 2021, the City Council awarded a public services contract to Century West Engineering for Engineering Services for the 2022 Pathways project in the amount of$495,539. Extensive public outreach and interaction occurred throughout the design phase. A formal presentation of the issues was presented to City Council on October 18, 2022, where staff were directed to proceed with final design and prepare plans for bidding and construction. On June 6, 2023, City Council awarded a $451,952.20 contract to Turney Excavating, Inc. for the Douglas Way portion of this program (WO 320.1). On June 20, 2023, City Council awarded a $823,823.00 contract to Brown Contracting, Inc for the Hallinan Pathway portion (WO 320.2). On August 1, 2023, City Council awarded a $892,450.00 contract to Turney Excavating, Inc for the Boca Ratan Pathway portion (WO 320.3). To avoid confusion amongst the various projects under WO 320, the suffix ".4" has been added to the Work Order number (WO 320.4 Lanewood/Douglas Circle Pathway). Douglas Pathway is WO 320.1, Hallinan Pathway WO 320.2, Boca Ratan Pathway is WO 320.3, and the Lanewood/Douglas Circle Pathway is WO 320.4. DISCUSSION Project design was completed in early May 2024 and the construction project was advertised for bid opening on May 13, 2024.The engineers' estimate of probable construction costs was $1,050,000. Sealed bids were opened on June 06, 2024 and the following bids were received: Rank Contractor Bid Cost Points GFE Points Total Points 1 Interlaken, Inc $700,990 90 10 100 2 Benchmark Contracting, Inc $723,250 87 8 95 3 Turney Excavating, Inc $759,655 83 2 85 4 Kodiak Pacific Construction $977,239 65 10 75 5 Brown Contracting, Inc. $989,648 64 7 71 6 I Lee Contractors, LLC $990,050 64 0 64 This procurement included the City's Good Faith Effort (GFE) Requirements, e.g., COBID solicitation. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 Work is expected to begin in July, with an anticipated completion date at the beginning of October. FISCAL IMPACT The project is currently funded from the Street Fund in the adopted 2023/24 to 2028/29 Capital Improvement Plan (CIP). RECOMMENDATION Authorize the City Manager to sign a Public Improvement Contract with Interlaken, Inc. in the amount of$700,990 for the construction of WO 320.4 Lanewood/Douglas Circle Pathway Project. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY 7.2 O F �s� COUNCIL REPORT —� OREGO� Subject: Resolution 24-14, Adjusting the Compensation for Management and Confidential Employees Meeting Date: June 18, 2024 Staff Member: Martha Bennett, City Manager Report Date: June 5, 2024 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Adopt Resolution 24-14, adjusting the compensation for management and confidential employees. Recommended Language for Motion: Move to adopt Resolution 24-14. Project/ Issue Relates To: Not Applicable Issue before Council (Highlight Policy Question): Does City Council want to adjust the compensation for management and confidential employees? ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑S Not Applicable BACKGROUND The City of Lake Oswego has approximately 64 regular status employees who are not represented by labor unions. They are managers and supervisors, and confidential staff. This group does not include the Charter Officers (City Manager, City Attorney, and Municipal Court Judge), whose salaries are separately reviewed and set annually each December. DISCUSSION Over the past few years, the City has considered salary adjustments carefully, with an emphasis on fiscal responsibility and sensitivity to the economic climate in our city and region. We also Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 need to balance internal equity to avoid compression and remain externally competitive when recruiting for management and confidential positions. When evaluating whether or not to adjust the compensation of non-represented management and confidential staff, Council may consider the following information: • Consumer Price Index (CPI) for the Western Region Size B-C for December, 2023 is 3.5%. • Employees represented by LOPOA will receive a 3.5% effective July 1, 2024 based on language in their collective bargaining agreement. • The IAFF and the LOMEA/AFSCME collective bargaining agreements are open for negotiations. Council will be briefed on the status of those negotiations in an executive session scheduled for June 18, 2024. For these reasons, we recommend that the Council award a 3.5% COLA to non-represented management and confidential staff, effective July 1, 2024. In addition to a COLA increase, staff is recommending a change to how we administer sick leave for new hires. The City's current practice is that when a new employee begins employment with the City they accrue eight hours of sick leave per month. Staff is recommending that we move away from this practice and instead credit new hires with the equivalent of six months sick leave accrual, which is 48 hours, upon hire. In addition, new employees will not accrue sick leave during the first six months of employment, but will resume accruing sick leave upon completion of the first six months of employment. This change in practice will allow new employees that are sick to use accrued sick leave within the first six months of employment, and help prevent sick employees from reporting to work due to an insufficient sick leave balance. Sick leave is not paid out upon separation from employment, so there is no risk of someone benefiting financially in this regard. FISCAL IMPACT For a 3.5% COLA for non-represented management and confidential employees, the estimated cost for one year is approximately $310,000. This estimate does not include roll-ups. Banking 48 hours of sick leave upon hire is cost neutral, as the employee would have accrued this time within six months of hire and because there is no payout of sick leave upon separation from employment. These costs are within what has been budgeted for the biennial 2023-25 budget. RECOMMENDATION Approve Resolution 24-14, adjusting the compensation for non-represented management and confidential employees. ATTACHMENT 1. Resolution 24-14 Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 RESOLUTION 24-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO ADJUSTING THE COMPENSATION FOR MANAGEMENT AND CONFIDENTIAL POSITIONS NOT REPREESNTED BY A BARGAINING UNIT. WHEREAS,the City of Lake Oswego annually reviews and considers the compensation of its management and confidential positions (positions not represented by a collective bargaining unit) for possible adjustments and such adjustments, if any, are made effective July 1 of each calendar year; and WHEREAS, a compensation increase maintains internal equity to avoid compression and aid with retention, and enables the City to remain externally competitive when recruiting for management and confidential positions. NOW THEREFORE, BE IT RESOLVED,that: 1. Non-represented management and confidential employees are granted a cost of living adjustment (COLA) increase of 3.5%effective July 1, 2024; 2. Credit non-represented new hires with 48 hours of sick leave upon hire, in lieu of accruing sick leave monthly for the first six months of employment, effective July 1, 2024; 3. This resolution shall take effect upon passage. Approved and adopted by the City Council of the City of Lake Oswego at a regular meeting held on the 18th day of June 2024. AYES: NOES: ABSTAIN: EXCUSED: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Ocal)0,1'4_ COUNCIL REPORT —� OREGO� Subject: Resolution 24-25, Mercy Housing Northwest Low Income Housing Property Tax Exemption Meeting Date: June 18, 2024 Staff Member: Jessica Numanoglu, Director Report Date: June 7, 2024 Department: Community Development Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Adopt Resolution 24-25, granting an exemption from Lake Oswego property taxes for the Mercy Housing Northwest Mercy Greenbrae affordable housing development located at 3190 Furman Drive per Ordinance 2945. Recommended Language for Motion: Move to adopt Resolution 24-25. Project/ Issue Relates To: Council Initiative to "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." Issue before Council: Consider the adoption of Resolution 24-25 to grant a property tax exemption to the Mercy Greenbrae affordable housing project at Marylhurst Commons. ❑X Council Goals/Priorities ❑Adopted Master Plan(s) ❑Not Applicable EXECUTIVE SUMMARY Mercy Housing Northwest is requesting a property tax exemption for the Mercy Greenbrae affordable housing project under Ordinance 2945, which would exempt the property from the City tax levy for the upcoming tax year (Attachment 1). Property taxes from other taxing districts would still apply and the applicant must apply annually to renew the City tax exemption. Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND Mercy Housing Northwest is an affordable housing developer with recognized 501(c)(3) status that has recently completed the Mercy Greenbrae affordable housing project in Lake Oswego at Marylhurst Commons. The project is a 100-unit multi-family residential building that is income- restricted to households earning 60 percent or less of the Area Median Income for Clackamas County. u y �./// ,', �tc:ee0. ,s * Willamette � �. N/� + ,,,,;1'10.1.1 s\\ Rivers P' a t: ti� Jam. PN - �� �� v6�- � a j 001\ .1 ——1 C- ..J'. ;,,,,., _ r \ \ ' } ,,. 1\ — ----% .7 "--- \A ` F J . _• ",- s Site of Mercy Greenbrae at Marylhurst Commons—Located at 3190 Furman Drive The City Council approved Ordinance 2945 on May 7, 2024, which amended LOC Chapter 24, establishing a property tax exemption program for nonprofit corporation low income housing, pursuant to ORS 307.540- .548. The ordinance, which became effective on June 6, 2024, allows for a property tax exemption for affordable housing projects that meet certain criteria. See the Discussion section below for an analysis of the specific criteria outlined in the ordinance as they relate to this request. Mercy Housing Northwest is requesting a City property tax exemption (Attachment 1) for the above-referenced property, which is leased from the Society of the Sisters of the Holy Names of Jesus and Mary. If the exemption is approved, the property would no longer be subject to the City tax levy. Other tax districts, including Clackamas County and the Lake Oswego School District, would continue to collect property tax. LOC 24.10.040.b provides for an exemption to the combined tax levy for all applicable taxing districts, but the applicant has not requested that option. DISCUSSION LOC 24.10.010—24.10.070, specifically LOC 24.10.030(a), includes a set of criteria that a development must meet to be eligible for the property tax exemption: Respect. Excel'erce. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 a. A property is exempt from property taxation as provided by LOC 24.10.010 to 24.10.070 if: i. The property is owned or being purchased by a corporation described in section 501(c)(3) or(4) of the Internal Revenue Code that is exempt from income taxation under section 501(a) of the Internal Revenue Code; ii. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon; iii. At the time the application is filed, the property is: A. Occupied by low income persons; or B. Held for a period not to exceed two years from the date the exemption is granted,for the purpose of developing low income housing. iv. The property or portion of the property receiving the exemption, if occupied, is actually and exclusively used for the purposes described in section 501(c)(3) or(4) of the Internal Revenue Code; Response: The City Attorney's Office has reviewed the above criteria and relevant documents provided by Mercy Housing Northwest and concluded that all criteria above have been met (Attachment 3). v. The exemption has been approved as provided in LOC 24.10.060. Response: As discussed under the criteria, above, staff finds that the Mercy Greenbrae property meets the criteria for approval. If Resolution 24-25 is approved by the Council, it will be forwarded to the Clackamas County Assessor as set forth in ORS 307.512 to certify that the property is exempt from taxation under the levy of the City. FISCAL IMPACT Mercy Housing Northwest estimates that their City property tax contribution for the Mercy Greenbrae property without the exemption would be approximately$18,000 per year. RECOMMENDATION Approve Resolution 24-25 (Attachment 2) granting the property located at 3190 Furman Drive, site of the Mercy Greenbrae affordable housing development tax exemption status from the City tax levy. ATTACHMENTS 1. Tax Exemption Request Memo (Oct. 24, 2023) 2. Draft Resolution 24-25 3. City Attorney's Office Tax Exemption Analysis Memorandum, dated June 7, 2024 Respect. Excel'ence. Trust. Service, 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 1PmercyHousiNG To: Erik Olson, Long Range Planning Manager Jessica Numanoglu Community Development Director Martha Bennett, City Manager From: Joe Thompson, President,Mercy Housing Northwest Re: Property Tax Exemption—Affordable Housing&Marylhurst Commons As we have previously discussed with City Staff,Mercy Housing Northwest proposes to work with the City of Lake Oswego to implement a real estate property tax exemption for affordable housing. The benefits of a tax exemption for affordable housing are further outlined below. To maximize the benefits to Mercy Greenbrae at Marylhurst Commons, the future Lake Grove Affordable Housing development, and our future residents,we propose and plan to support the City in implementing a tax exemption policy that goes into effect on or before July 1, 2024 Background Mercy Housing Northwest is a non-profit, affordable housing developer, operator, and service provider. We have over 55 properties throughout western Washington,and Oregon. Mercy Housing Northwest is currently under construction at Mercy Greenbrae at Marylhurst Commons, a 100-unit affordable housing community at the former Marylhurst University Campus. We applaud and appreciate the City's strong support for developing affordable housing at Marylhurst Commons and at the Lake Grove site. We understand that affordable housing production remains a priority for the City, and we are committed to being a partner for the city to achieve its housing production goals. Property tax exemption is an important tool utilized by many jurisdictions to advance affordable housing production. For the benefits and rationale discussed in detail below,we support the City's adoption of a property tax exemption policy to promote affordable housing for Lake Oswego and its residents. We encourage the city to adopt a tax exemption policy ahead of the city's housing production strategy. Because Mercy Greenbrae is under construction and scheduled to start move-ins in April, the city has a rare opportunity to directly impact the lives of soon-to-be residents of the Mercy Greenbrae project. Furthermore, the Lake Grove affordable housing project,now in the pre-development phase,will benefit from significantly from the certainty provided by a city-wide tax exemption policy. Mercy Housing Northwest ATTACHMENT 1/PAGE 1 OF 4 6930 Martin Luther King Jr Way S,Seattle,Washington 98118 o 1206-838-5700 f 1206-838-5705 I mercyhousingnorthwest.orgL VE IN HOPE 4 Mercy Housing is sponsored by communities of Catholic Sisters Putting Resident Needs First Ensuring our residents have access to stable, affordable housing is core to our mission. Mercy Housing Northwest prides itself on working with residents and providing the necessary supportive services to ensure everyone has access to housing they can afford. • Reducing operating costs,including property taxes,is a critical tool for ensuring operations and services staff have the resources and flexibility they need to meet the dynamic needs of the communities they serve. • In 2020 and 2021, affordable housing providers experienced high resident receivables, as families were unable to pay their rent due to pandemic related job-impacts. MHNW committed to a total rent freeze and moratorium on evictions in a way to ensure resident housing stability,which put strain on operating budgets. Measures that reduce ongoing operating costs,including property taxes,have a direct impact on an organization's ability to work with residents during challenging economic times to ensure housing stability. It also ensures every property can cover its costs and retain a high standard of maintenance and operations. Ensuring Long-Term Stability for Mission-focused Affordable Housing Providers Property tax exemption for affordable housing properties supports long-term financial stability. As mission-oriented,long-term owners, operators, and service providers, our organizational mission is to ensure our properties are places where families can thrive. • Typically, affordable housing owners operate with thin financial margins, often operating at near break-even operating budgets to maintain the deepest long-term affordability for residents most in need of the housing we provide. Unanticipated events can create long- term challenges for affordable housing developers and operators, as the combination of thin margins and strictly regulated rents limit our ability to recoup losses. • Having predictable annual expenses helps ensure our properties are more financially resilient, and able to absorb changing economic conditions. The last several years have been especially challenging with the COVID-19 pandemic and associated supply chain challenges, and more recently with dramatic increases in wages, benefits, and property insurance premiums. Advancing the City's Goals for Housing Production A property tax exemption for affordable housing helps the city adhere with Title 7 of Metro's Urban Growth Management Functional Plan,which requires cities to "include in their plans actions and implementation measures designed to maintain the existing supply of affordable housing as well as to increase the opportunities for new dispersed affordable housing." Exempting affordable housing from property taxes helps existing affordable housing properties (we are aware of two other affordable housing properties in Lake Oswego) conduct maintenance and make capital improvements, and serve their low-income residents with on-site services. For new affordable housing production, a tax exemption helps developers secure competitive Metro Mercy Housing Northwest ATTACHMENT 1/PAGE 2 OF 4 6930 Martin Luther King Jr Way S,Seattle,Washington 98118 o 1206-838-5700 f 1206-838-5705 mercyhousingnorthwest.org Mercy Housing is sponsored by communities of Catholic Sisters and State funding for new, dispersed affordable housing by adding more certainty to on-going operating costs. Many peer cities have adopted property tax exemption policies using ORS 307.540,including Wilsonville,Milwaukie,and Hillsboro. Property tax exemption is proven to be an effective tool that directly improves the feasibility of affordable housing developments and would support additional affordability in the City consistent with Title 7. Substantial Benefits at Minimal Cost to the City The cost of an affordable housing property tax exemption to the city is relatively small,but an exemption would have substantial benefits for sustainable operations of affordable housing, and substantial benefits for current and future low-income residents. The Marylhurst Commons property is currently, and has been historically,tax-exempt. • Existing Affordable Housing: We are aware of two other affordable housing properties in Lake Oswego, both owned by Northwest Housing Alternatives. Combined, we estimate that the City of Lake Oswego collects about $3,200 per year from the two properties. • Creating New Affordable Housing: We estimate that the city's portion of annual property taxes owed by the Mercy Greenbrae project will be approximately$18,000 per year. We are also aware that the Lake Grove property is slated for redevelopment as affordable housing.That site is also current city-owned and tax exempt. Collectively,we estimate that exempting these two properties, and the two existing properties outlined above,would reduce the city's total annual property tax revenue by an estimated $30,000 per year,less than .001% of the city's total annual property tax revenue. While a marginal decrease to the city, the benefits ensure decades of operational stability for the non-profit organizations that own the properties, ensuring the properties are well-maintained and adequately staffed. Furthermore,we expect the revenue foregone as a result of a tax exemption program for affordable housing will be small given the limited number of properties suitable for affordable housing projects within the City. Finally, ensuring affordable housing operators have the resources to provide necessary on-site services can reduce financial burdens on other public services,like schools,parks and recreation, emergency response, and libraries. When residents have resources and support from their home community, they rely less heavily on other resources. Promoting Community Goals with Additional Funding Reducing property taxes allows projects to leverage more private funding. By reducing operating costs, affordable housing projects can secure additional debt from private lenders, reducing the need for public resources, and enabling projects to invest in additional durability, sustainability, and livability measures. • At the Mercy Greenbrae project,reducing the operating costs associated with property taxes would directly enable the project to invest in a larger solar photovoltaic array, Mercy Housing Northwest ATTACHMENT 1/PAGE 3 OF 4 6930 Martin Luther King Jr Way S,Seattle,Washington 98118 o 1206-838-5700 f 1206-838-5705 mercyhousingnorthwest.org Mercy Housing is sponsored by communities of Catholic Sisters reducing the building's energy usage,reducing on-going operating costs, and improving resilience in extreme weather. • Reduced property taxes will also allow existing and future projects to pursue sustainability and resilience upgrades like conversion to 100% electric operations, upgrading to higher efficiency heating and cooling systems, and on-site power generation through solar photovoltaic arrays or other means of renewable energy production. In closing, a city property tax exemption policy will have an immediate impact on the Mercy Greenbrae project: Mercy Housing Northwest will be able to make additional investments in durability and sustainability if the policy is adopted in 2024. Thank you for your consideration of this request and we look forward to continuing to work with the City staff to advance the City's housing production goals and affordability. Sincerely, Joe Thompson, President Mercy Housing Northwest ATTACHMENT 1/PAGE 4 OF 4 6930 Martin Luther King Jr Way S,Seattle,Washington 98118 o 1206-838-5700 f 1206-838-5705 mercyhousingnorthwest.org Mercy Housing is sponsored by communities of Catholic Sisters RESOLUTION 24-25 ATTACHMENT 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO APPROVING A TAX EXEMPTION FOR THE MERCY GREENBRAE AFFORDABLE HOUSING DEVELOPMENT LOCATED AT 3190 FURMAN DRIVE FROM THE CITY TAX LEVY. WHEREAS, the Lake Oswego City Council approved Ordinance 2945 on May 7, 2024, which amended LOC Chapter 24 to establish a property tax exemption program for nonprofit corporation low income housing, pursuant to ORS 307.540- .548; and WHEREAS, Mercy Housing Northwest, a nonprofit corporation with 501(c)(3) status, as determined by the Internal Revenue Service, filed an application requesting an exemption to the City tax levy for the 100-unit Mercy Greenbrae affordable housing development located at 3190 Furman Drive; and WHEREAS, the Lake Oswego City Council considered the application at its June 18, 2024, meeting and found that the application met the criteria for an exemption to the City tax levy pursuant to LOC 24.10.030; and NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Council approves an exemption to the City tax levy for the Mercy Greenbrae affordable housing development at 3190 Furman Drive. 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 18th day of June, 2024. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Resolution 24-25 Page 1 of 1 ATTACHMENT 2 p s4 MEMORANDUM ATTACHMENT 3 O OREGO\--‘ TO: Mayor and City Council Jessica Numanoglu, Community Development Director CC: Ellen Osoinach, City Attorney FROM: Evan Boone, Deputy City Attorney SUBJECT: Mercy Greenbrae Determination of Eligibility for Tax Exemption under Ord. 2945 Nonprofit Corporation Low Income Housing DATE: June 7, 2024 BACKGROUND: The City Council adopted Ord. 2945 on May 7, 2024, which codified in LOC 24.10.010— 24.10.070 the City's election to adopt the provisions of ORS 307.540—307.558 to grant tax exemption status to qualifying nonprofit corporations for low income housing from the City's tax levy. Mercy Housing Northwest requested the tax exemption by memo received October 24, 2023. The determination of eligibility is now being made, following the adoption of the tax exemption program by Ord. 2945. QUESTION AND ANSWER: Does the housing development known as Mercy Greenbrae at Marylhurst Commons qualify for the tax exemption under Ord. 2945 (and ORS 307.540—307.558)? Yes. Below are the listed criteria and findings determining that the criteria are met. DISCUSSION: Per LOC 24.10.030(a)(i)—(iv), real property is eligible for a tax exemption from the City tax levy if: Respect• I:x:.c:l c:r :.c:. Trust. .... :. 503-675-3984 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 of 4 a. A property is exempt from property taxation as provided by LOC 24.10.010 to 24.10.0701 if:• i. The property is owned or being purchased by a corporation described in section 501(c)(3) or(4) of the Internal Revenue Code that is exempt from income taxation under section 501(a) of the Internal Revenue Code; The project site at 3190 Furman Drive is leased by The Society of the Sisters of the Holy Names of Jesus and Mary (Owner) to MHNW 20 Marylhurst Limited Partnership (Lessee) pursuant to the terms of a Ground Lease. Lessee limited partnership consists of two entities: a general partner, MHNW 20 Marylhurst GP, LLC (General Partner LLC), and one limited partner. The General Partner LLC has one member/manager, Mercy Housing Northwest, a Washington nonprofit corporation, with its sole member being Mercy Housing, Inc, a Nebraska nonprofit corporation. "Property is... being purchased by" The property is not being purchased, it is being leased from the Owner by the Lessee. However, per LOC 24.10.030(b)2, a lease is deemed equivalent to a purchase of the property if the lessee is obligated by the lease to pay the real property taxes. Under Section 2.f of the Ground Lease, the Lessee is obligated to pay the real property taxes, complying with this portion of subsection a(i). "a corporation described in section 501(c)(3) or(4) of the Internal Revenue Code that is exempt from income taxation under section 501(a) of the Internal Revenue Code" The lessee is not a corporation, it is a limited partnership, with a General Partner LLC. The General Partner LLC's sole member is Mercy Housing Northwest. Mercy Housing Northwest has provided a 2011 IRS determination that it is a tax-exempt entity. Per ORS 307.022, for purposes of the property tax laws of Oregon, because Mercy Housing Northwest is an IRC 501(c)(3) nonprofit corporation that is the sole member of the General Partner LLC, the General Partner LLC is treated as a corporation exempt from taxation under section 501(c)(3) or (4) of the Internal Revenue Code. Per LOC 24.10.030(c), a partnership entity that is the lessee shall be treated the same as a corporation lessee if"the corporation [or general partner LLC, under ORS 307.022] is a 1 The code provisions mimic the statutory requirements of ORS 307.540—307.558. For reader's ease,only the reference to the Code are cited. 2 "b. For purposes of LOC 24.10.030(a)(i),a corporation that has only a leasehold interest in property is deemed to be a purchaser of that property if: i.The corporation is obligated under the terms of the lease to pay the ad valorem taxes on the real and personal property used in this activity on that property,or ii.The rent payable by the corporation has been established to reflect the savings resulting from the exemption from taxation. Respect. Trust. Sri .:._.� Page 3 of 4 general partner of the partnership [lessee], and responsible for the day-to-day operation of the property that is the subject of the exemption." According to the terms of the Amended and Restated Limited Partnership Agreement of the Lessee, Section 5.1, the General Partner is to exercise full and exclusive control over the affairs of the Partnership, which would be the day-to-day operations of the Partnership assets, including Mercy Greenbrae. This criterion is met. ii. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon; Per ORS 307.022, the "corporation" in this case is the General Partner LLC, with its sole member being Mercy Housing Northwest. Staff has reviewed the Mercy Housing Northwest Second Restated Articles of Incorporation and finds that per Section VII, it meets the requirement relating to distribution of its assets upon liquidation to an entity operated exclusively for charitable and educational purposes. This criterion is met. iii. At the time the application is filed, the property is: A. Occupied by low income persons; or B. Held for a period not to exceed two years from the date the exemption is granted,for the purpose of developing low income housing. Director Numanoglu has confirmed that the property is occupied by low income persons as of May 30 2024. This criterion is met. Further, the housing project has received a Reservation of 4% Low Income Housing Tax Credits from the Oregon Department of Housing and Community Development. That Reservation and Extended Use Agreement, Section 4, requires a covenant recorded against the property requiring that it be maintained to be used exclusively to provide housing to low income individuals, defined under ORS 307.540(2). The covenant will be recorded against the property within two years, for receipt of the tax credits. This criterion is met. iv. The property or portion of the property receiving the exemption, if occupied, is actually and exclusively used for the purposes described in section 501(c)(3) or(4) of the Internal Revenue Code; Per the Reservation and Extended Use Agreement Oregon Department of Housing and Community Development, all 100 units in the Mercy Greenbrae development will be exclusively used for income-restricted housing for households earning 60 percent or less of the Area Median Income for Clackamas County. This criterion is met. Respect. r Trust. 79r,:.=.E Page 4 of 4 Documents Reviewed 1. Ground Lease Agreement Between The Society of the Sisters of the Holy Names of Jesus and Mary (Landlord) and MHNW 20 Marylhurst Limited Partnership (Tenant), dated Sept. 1, 2022. 2. IRS Determination Letter to Mercy Housing Northwest, dated Jan. 26, 2011 3. Oregon Housing and Community Services Department 4% Low-Income Housing Tax Credit Reservation and Extended Use Agreement, dated September 1, 2022 4. Amended and Restated Limited Partnership Agreement of the MHNW 20 Marylhurst Limited Partnership, dated September 15, 2022 5. Mercy Housing Northwest Second Restated Articles of Incorporation, dated August 22, 2010. 6. Memorandum from Sarah Yednock, Kantor Taylor, attorneys to Mercy Housing Northwest, dated June 6, 2024. Respect. r Trust. 79r,:.=.E 7.4 E 0 COUNCIL REPORT � o OREGO\-\ Subject: Resolution 24-27, Intergovernmental Agreement (IGA) with the City of West Linn that continues funding for the Lake Oswego Police Department (LOPD) to provide Behavioral Health Specialist (BHS) services to the West Linn Police Department (WLPD). Meeting Date: June 18, 2024 Staff Member: Clayton Simon, Police Captain Report Date: June 7, 2024 Department: Lake Oswego Police Department Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑x Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Adopt Resolution 24-27 authorizing the City Manager to sign an IGA with the City of West Linn to provide BHS services. Recommended Language for Motion: Move to adopt Resolution 24-27. Project/ Issue Relates To: Public Safety Services Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable EXECUTIVE SUMMARY The LOPD currently provides limited BHS services to the WLPD pursuant to a 2021 IGA that expires June 30, 2024. Resolution 24-27 is before the City Council for consideration and adoption to renew this agreement through June 30, 2027. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 BACKGROUND In 2021, through an IGA with the City of West Linn, the LOPD began providing the WLPD limited BHS services. The primary functions of this agreement were for the BHS to engage with West Linn community members with perceived mental illness and link them to appropriate resources, respond with and without WLPD members to those persons experiencing mental health crises, and provide formal and informal training and education in areas related to crisis intervention and mental health awareness. As in year's past, the BHS will spend one day a week at the WLPD to provide the aforementioned services and outside of that schedule, will be accessible to provide 24/7 crisis support and may respond in-person as determined by the LOPD on-call supervisor. The LOPD and WLPD, geographically close and utilizing the same dispatch center, often work collaboratively on related issues to provide public safety services to our respective communities. The continued BHS relationship with the WLPD helps to serve both areas. DISCUSSION Key components of this agreement include: • Effective July 15t, 2024 and expiring June 30th, 2027. • The WLPD will compensate Lake Oswego 30% of the BHS' total compensated wages including all roll up costs each year of the agreement. • The arrangement can be terminated by either party at any time with 30 days written notice. ALTERNATIVES OR ADVANTAGES AND DISADVANTAGES While Clackamas County offers mental health services to community members in the county, having a dedicated agency BHS option provides many benefits for the City and department. The LOPD BHS expeditiously provides consistent and ongoing support to those in the community experiencing a mental health crisis, offers alternative de-escalation options to first responders, and allows for continued to mental health training to the department and City personnel. Having a department employed BHS provides an increased level of public safety service due to proximity and availability. FISCAL IMPACT There are no upfront costs related to this agreement considering this is a continuation of an in- place program. The total compensated wages to be paid by WLPD during the first year of this agreement are $56,167.55. As wages escalate each year, so too will costs paid by WLPD pursuant to the IGA. RECOMMENDATION Approve Resolution 24-27. ATTACHMENTS 1. Resolution 24-27, with Exhibit 1— IGA with West Linn Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 RESOLUTION 24-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE CITY MANAGER TO SIGN THE INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF WEST LINN TO CONTINUE TO PROVIDE BEHAVIORAL HEALTH SPECIALIST SERVICES FOR FISCAL YEARS 2024-2027. WHEREAS,there is a need to provide behavioral health specialist services to the citizens in West Linn; and WHEREAS,the City of West Linn has the funding available to compensate the City of Lake Oswego for the use of the police department's Behavioral Health Specialist; and WHEREAS,the City and the City of West Linn have previously entered into intergovernmental agreements whereby the City has provided Behavioral Health Specialist services; and NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Manager is authorized to sign the Intergovernmental Agreement with the City of West Linn for fiscal years 2024-2027, in substantially the form attached as Exhibit 1. 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 18th day of June, 2024. AYES: NOES: ABSTAIN: EXCUSED: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney RESOLUTION 24-27 Page 1 of 1 EXHIBIT 1 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF LAKE OSWEGO, through its POLICE DEPARTMENT, and THE CITY OF WEST LINN, through its POLICE DEPARTMENT Behavioral Health Specialist Services THIS AGREEMENT is made and entered into on this day of 2024, by and between the CITY OF LAKE OSWEGO, an Oregon municipal corporation (hereinafter"Lake Oswego"), acting through its Police Department ("LOPD") and the CITY OF WEST LINN, an Oregon municipal corporation (hereinafter "West Linn"), acting through its Police Department ("WLPD"). RECITALS A. LOPD provides behavioral health crisis assessment and intervention services through specialized professionals employed by LOPD. B. WLPD seeks to provide behavioral health crisis assessment and intervention services to individuals experiencing mental health crises when involved with the WLPD. AGREEMENT NOW, THEREFORE, the parties agree as follows: 1. Term. This Agreement is effective July 1, 2024 and shall continue through June 30, 2027, or until sooner terminated by mutual agreement of the parties, or as provided elsewhere in this Agreement. 2. Nature of Services. A Behavioral Health Specialist (BHS) is a mental health professional, trained and certified to work with police divisions to provide crisis assessment, diversion intervention, case management, support and referral services to individuals in need who are identified through the police department as frequently accessing or needing police services due to mental illness. 3. Employment Status. The BHS will remain a LOPD employee, and is thus under LOPD's supervision, labor agreements and control. The BHS shall not perform any work that would be outside the normal scope of the BHS duties with LOPD, without LOPD's written permission. LOPD will be responsible for the compensation, professional standards, and general conduct. Lake Oswego will be responsible for all salary, PERS, worker's compensation, and other employee benefits, as the BHS is an employee of Lake Oswego. 4. Equipment. The BHS will primarily utilize LOPD equipment, e.g., vehicle or computer technology, while performing behavioral health services. Upon request, WLPD may loan equipment to the BHS, which shall be returned to WLPD in accordance with WLPD policies and procedures. 1 5. Trainings. a. WLPD, in consultation with LOPD, shall provide the training that WLPD determines is necessary to enable the BHS to safely work with WLPD staff while in the field. WLPD will attempt to train all WLPD's patrol officers through an approved CIT program, which includes a three-year certification on Mental Health First Aid. b. The BHS will provide periodic training in de-escalation, mental health crisis and awareness and other relevant mental health related topics they deem appropriate. WLPD is encouraged to provide suggested trainings for their staff from the BHS. 6. BHS Functions. The primary functions of the BHS under this Agreement are to: a. Engage with community members with perceived mental illness and link them to appropriate resources in order to divert them from incarceration, hospitalization, or unnecessary reliance on WLPD resources. b. Enhance WLPD staff skills by providing formal and informal training and education through participation in Mental Health crisis and awareness training and in-person consultation. 7. Procedures, Responsibilities and Roles. a. WLPD staff will generate referrals for BHS' services. The BHS may respond to an assistance call either alone, or, if either the BHS or WLPD perceives a risk to the response, accompanied by a WLPD officer. b. The BHS is authorized to transport individuals, and officers, provided that the transport is voluntary and the individual is in behavioral control. The BHS cannot accept custody from WLPD staff and cannot provide involuntary transportation. This is at the sole discretion of the BHS. c. The BHS will not be expected to physically participate in what either WLPD or BHS determines to be an unsecured scene; however, the BHS may provide services in such situations telephonically or via radio to consult with WLPD in live negotiations. d. On rare occasions the BHS may accompany the perceived mentally ill individual and the WLPD staff to the hospital to communicate the clinical information to the hospital staff. WLPD should not expect this service to be provided with any frequency. e. The BHS will not be expected to leave an ongoing response, whether an LOPD or WLPD response, to attend to another response prior to 2 b. For the second and third year, LOPD will provide WLPD the compensation amount by July 1st This amount shall be paid by August 1st, or within thirty (30) days of WLPD's receipt of the compensation amount if LOPD provides the notice after July 1st 11. Liaison Responsibility. a. The LOPD Police Chief or designee will act as liaison to WLPD for disputes or concerns. b. The WLPD Police Chief or designee will act as liaison to LOPD for disputes or concerns. 12. Confidentiality. Unless otherwise permitted by law, parties agree that the WLPD, its agents and employees shall maintain the confidentiality of any participant records or other participant identifying information, written or otherwise, with which they may come in contact, to the extent required by all applicable provisions of state and federal statutes, rules and regulations, and shall comply with the same in the event of requests for information by any person or federal, state or local agency. In addition, parties acknowledge the Health Insurance Portability and Accountability Act of 1996 (HIPAA), PL 104- 191, 45 CFR Parts 160-164, and agree that the party, its agents and employees will comply with any applicable requirements of HIPAA and state law related to the confidentiality of participant records or other participant identifying information. (In addition, because LOPD and its employees are subject to HIPAA, if HIPAA is not applicable to WLPD, WLPD shall nevertheless follow the practices and procedures of HIPAA the same as if it were applicable with respect to medical records relating to this service performed under this Agreement.) 13. Amendments. This Agreement may be amended at any time with the concurrence of both parties. Amendments become a part of this Agreement only after the written amendment has been signed by the authorized persons of each entity. 14. Termination. a. This Agreement may be terminated or suspended by either party upon the material non-compliance by the other party with any of its obligations under this Agreement. Notice of suspension or termination shall be by written notice from one party to the other, and shall be effective immediately upon notice, or at a later date specified in the notice. b. This Agreement may also be terminated at the discretion of either party upon 30 days written notice to the other party. c. If terminated prior to the completion of the term of this Agreement, WLPD will pay for the services rendered by the BHS up to the termination date. 4 completing their current assignment. 8. Scheduling. a. The desired times of behavioral health services shall be requested by WLPD and approved by LOPD. LOPD may also rearrange the scheduled work time, upon approval by WLPD. In the event of eminent or immediate need of BHS services by LOPD, LOPD may suspend the behavioral health services during such times as LOPD, in its discretion, determines. b. The shift for behavioral health services is Monday - Thursday, 8:30 A.M. - 6:30 P.M. The BHS will spend one day a week at the WLPD. This day will be flexible due to workload and call volume. During this time the BHS will connect with community members, officers and be available for training. c. Outside of the above-referenced shift, in the event of a mental health crisis, WLPD will have access to 24/7 Crisis Support by calling the BHS at home. Determination will be made with the BHS and on-call supervisor if in-person response is needed; however, the BHS and LOPD supervisor will have final say if there is a conflict. 9. Communication. a. The BHS will attend WLPD roll call shifts as scheduling permits. b. WLPD will appoint a program liaison to help the BHS navigate the WLPD, address the needs of their working conditions and successfully perform their duties while working with WLPD. c. The BHS will be responding to requests from both LOPD and WLPD. In the event of conflicting time-sensitive requests, the BHS, LOPD and WLPD will negotiate with each other the priority of requests and will communicate with each other the best way to provide service to the member of the community. LOPD shall make the final determination. d. LOPD, WLPD and the BHS will meet periodically to address concerns and systems issues. Additional meetings may be scheduled if needed as determined by any of the parties to this agreement. 10. Compensation. a. In the first year of this Agreement, WLPD will compensate the Lake Oswego thirty percent (30%) of the BHS' total compensated wages, including all roll up costs for PERS, insurance and salary. This compensation amount is attached hereto and incorporated herein as Exhibit A. This amount shall be paid within thirty (30) days of execution of this Agreement. 3 d. Termination shall be the sole remedy for any claim of inadequate or insufficient performance of work. WLPD shall not be entitled to any damages from LOPD or from the BHS for inadequate or insufficient performance of work. 15. Indemnification. Within the liability limits stated in the Oregon Tort Claims Act, each party to this Agreement shall defend, indemnify and hold the other party harmless against all liability, loss, or expenses, including reasonable attorney's fees, and against all claims, actions or judgments based upon or arising out of damage or injury (including death) to persons or property to the extent caused by or resulting from any act, error or omission by the indemnifying party or its agents and employees in connection with the performance of this Agreement. 16. Notice.Any notice under this Agreement shall be in writing and shall be effective when actually delivered or when deposited in the mail, registered or certified, addressed to the parties as follows: Lake Oswego: City Manager City of Lake Oswego PO Box 369 Lake Oswego, Oregon 97034 West Linn: City Manager City of West Linn 22500 Salama Road West Linn, Oregon 97068 // // // l/ [Signatures on Next Page) 5 Names and Signatures of Parties to this Agreement City of Lake Oswego City of West Linn Martha Bennett, City Manager John Williams, City Manager I Approved as to form: Approved as to form: Evan Boone Bill Monahan Lake Oswego Deputy City Attorney West Linn City Attorney 6 EXHIBIT A Total Employee Cost Behavioral Health Specialist Effective:07/01/2024-06/30/2025 Base Wage $ 107,935.35 ER Paid 457 Contributions $ 2,346.10 PERS $ 31,485.35 Employer FICA Tax $ 8,436.53 Employer Share Paid Leave Oregon $ 441.13 Tri-Met $ 878.27 Oregon Workers Benefit Fund $ 45.76 Workers Compensation $ 2,050.77 Health Insurance (Medical/Dental/Vision) $ 33,169.96 Other Benefits $ 435.96 Annual $ 187,225.18 30%of Annual Cost $ 56,167.55 7.5 o�� s� COUNCIL REPORT o OREGO\-\ Subject: Resolution 24-31, Approving Amendment No. 2 to Subrecipient Agreement 24-006 for fiscal years 2024-2027 with Clackamas County Social Services Division. Meeting Date: June 18, 2024 Staff Member: Maria Bigelow, Manager Report Date: June 7, 2024 Department: Parks & Recreation —Adult Community Center Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Adopt Resolution 24-31, authorizing the Mayor to sign the Amendment No. 2 to Subrecipient Agreement 24-006 with Clackamas County Social Services Division. Recommended Language for Motion: Move to adopt Resolution 24-31. Project/ Issue Relates To: Funding Lake Oswego Adult Community Center social services. Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable BACKGROUND The City entered into Subrecipient Agreement 24-006 for fiscal years 2024-2027 with Clackamas County Social Services Division on September 5, 2023. This Agreement was amended by Resolution 24-21 to adjust the funding for the current fiscal year. Amendment 2 provides funds available for FY 2024-25. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 DISCUSSION The purpose of Amendment No. 2 is to finalize funds available to the Adult Community Center (ACC) for FY 2024-25 to assist in the social services provided through the ACC. Services like the Meals on Wheels, respite, transportation and information assistance are all reimbursed to the City, up to the grant amount, by Clackamas County with Federal and State funds. The reimbursements are not dollar-for-dollar spent, but reimbursed at the flat rate specified in the original Agreement until funds have been exhausted. Clackamas County received additional funding for the purpose of providing human services and this Amendment No. 2 reflects that additional funding. FISCAL IMPACT This second amendment increases the original grant by $161,920, for a total amount of $315,290. RECOMMENATION Adopt Resolution 24-31. ATTACHMENTS 1. Resolution 24-31, with Exhibit A-Subrecipient Agreement Amendment 2. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 RESOLUTION 24-31 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 2 TO THE SUBRECIPIENT AGREEMENT 24-006 BETWEEN THE CITY AND CLACKAMAS COUNTY HUMAN SERVICES DEPARTMENT'S SOCIAL SERVICES DIVISION FOR FISCAL YEARS 2024-2027. WHEREAS,there is a need to provide social services to the citizens in Lake Oswego; and WHEREAS, Clackamas County has the funding available to provide social services to citizens in Lake Oswego through the Older Americans Act; and WHEREAS,the City and Clackamas County have previously entered into Agreement 24-006 to provide social services on September 5, 2023,which was amended by Resolution 24-21 on May 7, 2024; and NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The Mayor is authorized to execute on behalf of the City of Lake Oswego Amendment No. 2 to the Subrecipient Agreement 24-006 with Clackamas County Health, Housing and Human Services, Social Services Division for fiscal years 2024-2027, 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 18th day of June, 2024. AYES: NOES: ABSTAIN: EXCUSED: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney RESOLUTION 24-31 Page 1 of 1 EXHIBIT A Subrecipient Amendment (FY24-FY27) Clackamas County, Department of Health, Housing and Human Services Subrecipient Agreement Number: 24-006 Board Order Number: Department/Division: H3S, Social Services Division Amendment No. 2 Subrecipient: City of Lake Oswego, acting by and Amendment Requested By: Brenda Durbin through its Lake Oswego Adult Community Center Changes: ❑ Scope of Service ® Agreement Budget ❑ Agreement Time ( ) Other: Justification for Amendment: Amendment#2 to Subrecipient Agreement 24-006 ("Agreement")with City of Lake Oswego ("SUBRECIPIENT") provides budget adjustments for ongoing delivery of services for fiscal year 2023-24 and results in an increase to the budget by an additional $161,920, for a total Agreement amount of$315,290. This Amendment#2 is effective upon signature and continues through June 30, 2027. Except as amended hereby, all other terms and conditions of the Agreement remain in full force and effect. COUNTY has identified the changes with "bold/italic"font for easy reference. AMEND the following portions of Section 4, Grant Funds: 4. Grant Funds. COUNTY's funding for this Agreement is a combination of Federal, State and Local dollars as specified below by title and Assistance Listing Number("ALN") number as appropriate. The maximum, not to exceed, grant amount COUNTY will pay for one year is $153,370. Payments will be made on a reimbursement basis in accordance with the rates set forth in Exhibit B, and the award is conditional upon compliance with the terms herein and disbursements will be made in accordance with the schedule and requirements contained in Exhibit D: Reimbursement Request. Failure to comply with the terms of this Agreement may result in withholding of payment. 4.1.Grant Funds: COUNTY's funding of$130,870 in grant funds for this Agreement is the Older Americans Act(ALN: 93.043, 93.044, 93.052, 93.053) issued to COUNTY by the State of Oregon, Department of Human Services ("ODHS"), Adults and People with Disabilities ("APD"), Community Services & Solutions Unit("CSSU"). 4.2.Grant Funds: COUNTY's funding of$22,500 for transportation services outlined in this agreement are from Statewide Transportation Funds ("STF")for Elderly and Disabled and Statewide Transportation Improvement Funds ("STIF")for transportation services issued to COUNTY by Oregon Department of Transportation. TO READ: 4. Grant Funds. COUNTY's funding for this Agreement is a combination of Federal, State and Local dollars as specified below by title and Assistance Listing Number("ALN") number as appropriate. The maximum, not to exceed, grant amount COUNTY will pay for is $315,290 Payments will be made on a reimbursement basis in accordance with the rates set forth in Exhibit B, and the award is conditional upon compliance with the terms herein and disbursements will be made in accordance with the schedule and requirements contained in Exhibit D: Reimbursement Request. Failure to comply with the terms of this Agreement may result in withholding of payment. City of Lake Oswego— Lake Oswego Adult Community Center Subrecipient Grant Agreement—24-006, Amendment#2 Page 2 of 9 4.1.Grant Funds: COUNTY's funding of$269,790 in grant funds for this Agreement is the Older Americans Act(ALN: 93.043, 93.044, 93.052, 93.053) issued to COUNTY by the State of Oregon, Department of Human Services ("ODHS"), Adults and People with Disabilities ("APD"), Community Services & Solutions Unit("CSSU"). 4.3.Grant Funds: COUNTY's funding of$45,500 for transportation services outlined in this agreement are from Statewide Transportation Funds ("STF")for Elderly and Disabled and Statewide Transportation Improvement Funds ("STIF")for transportation services issuedto COUNTY by Oregon Department of Transportation. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK City of Lake Oswego— Lake Oswego Adult Community Center Subrecipient Grant Agreement—24-006, Amendment#2 Page 3 of 9 AMEND EXHIBIT B—SUBRECIPIENT Program Budget, to add the following additional budget for fiscal year 2024- 25: LAKE OSWEGO ADULT COMMUNITY CENTER Fiscal Year 2025,Amendment 2 Estimated Funding Category AL Max.Total Required Program Services No.of Reimh. Funding Type Number Award Match* Income Units Rate Case Management 90 $ 42.00 Reassurance 100 $ 21.00 Client Services OAA IIIB 93.044 $ 10,230 $ 1,137 NA Info&Assistance 200 $ 21.00 Outreach 3 $ 50.00 OAA Meal Site Management 23,200 $ 1.65 OAA C1&C2 93.045 $ 98,170 $ 10,909 Food Service 23,200 $ 2.50 Nutrition Services $ 7,656 HDM Assessment 90 $ 21.00 NSIP 93.053 $ 16,240 NA Food Service 23,200 $ 0.70 Health Evidence Based Health& OAA IIID 93.043 $ 2,100 NA NA 40 $ 52.50 Promotion Wellness Programs Respite OAA IIIE 93.052 $ 12,180 $ 4,061 NA Family Caregiver Support 290 $ 42.00 Program Respite Transp. Rides within the TriMet Service TriMet GF NA $ 23,000 NA $ 230 2,300 $ 10.00 Services Area Total Maximum Award $ 161,920 Federal Award Total: $ 138,920 *Source of OAA Match-Staff time City of Lake Oswego— Lake Oswego Adult Community Center Subrecipient Grant Agreement—24-006, Amendment#2 Page 4 of 9 REPLACE EXHIBIT H — 1 with the following: 2 CFR 200.332(a) REQUIRED INFORMATION Federal award identification SUBRECIPIENT Name: City of Lake Oswego—Lake Oswego Adult Community Center SUBRECIPIENT Unique Entity Identifier: YJJFCP3HM9L6 Federal Award Identification Number(FAIN): Unavailable Federal award date: Unavailable Period of Performance (This Agreement): 7/1/2023—6/30/2027 Budget Period (This Agreement): 7/1/2023—6/30/2025 Amount of federal funds obligated for this ALN $19,980 by this action to SUBRECIPIENT: Total amount of all federal funds obligated to SUBRECIPIENT including the current financial $269,790 obligation: Total amount of all federal award to $269,790 SUBRECIPIENT: Federal award project description: Older Americans Act Federal awarding agency: Administration for Community Living Name of pass-through entity: Clackamas County Pass-through entity award identifying number NVWKAVB8JND6 to SUBRECIPIENT: Assistance Listing Number(ALN) &Title: 93.044 Title III, Part B Is Award for Research and Development? No SUBRECIPIENT indirect cost rate on this N/A Agreement: City of Lake Oswego— Lake Oswego Adult Community Center Subrecipient Grant Agreement—24-006, Amendment#2 Page 5 of 9 REPLACE EXHIBIT H —2 with the following: 2 CFR 200.332(a) REQUIRED INFORMATION Federal award identification SUBRECIPIENT Name: City of Lake Oswego— Lake Oswego Adult Community Center SUBRECIPIENT Unique Entity Identifier: YJJFCP3HM9L6 Federal Award Identification Number(FAIN): Unavailable Federal award date: Unavailable Period of Performance (This Agreement): 7/1/2023—6/30/2027 Budget Period (This Agreement): 7/1/2023—6/30/2025 Amount of federal funds obligated for this ALN $190,450 by this action to SUBRECIPIENT: Total amount of all federal funds obligated to SUBRECIPIENT including the current financial $269,790 obligation: Total amount of all federal award to $269,790 SUBRECIPIENT: Federal award project description: Older Americans Act Federal awarding agency: Administration for Community Living Name of pass-through entity: Clackamas County Pass-through entity award identifying number NVWKAVB8JND6 to SUBRECIPIENT: Assistance Listing Number(ALN) &Title: 93.045 Title III, Part C Is Award for Research and Development? No SUBRECIPIENT indirect cost rate on this N/A Agreement: City of Lake Oswego— Lake Oswego Adult Community Center Subrecipient Grant Agreement—24-006, Amendment#2 Page 6 of 9 REPLACE EXHIBIT H —3 with the following: 2 CFR 200.332(a) REQUIRED INFORMATION Federal award identification SUBRECIPIENT Name: City of Lake Oswego— Lake Oswego Adult Community Center SUBRECIPIENT Unique Entity Identifier: YJJFCP3HM9L6 Federal Award Identification Number(FAIN): Unavailable Federal award date: Unavailable Period of Performance (This Agreement): 7/1/2023—6/30/2027 Budget Period (This Agreement): 7/1/2023—6/30/2025 Amount of federal funds obligated for this ALN $32,480 by this action to SUBRECIPIENT: Total amount of all federal funds obligated to SUBRECIPIENT including the current financial $269,790 obligation: Total amount of all federal award to $269,790 SUBRECIPIENT: Federal award project description: Older Americans Act Federal awarding agency: Administration for Community Living Name of pass-through entity: Clackamas County Pass-through entity award identifying number NVWKAVB8JND6 to SUBRECIPIENT: Assistance Listing Number(ALN) &Title: 93.053 NSIP Is Award for Research and Development? No SUBRECIPIENT indirect cost rate on this N/A Agreement: City of Lake Oswego— Lake Oswego Adult Community Center Subrecipient Grant Agreement—24-006, Amendment#2 Page 7 of 9 REPLACE EXHIBIT H —4 with the following: 2 CFR 200.332(a) REQUIRED INFORMATION Federal award identification SUBRECIPIENT Name: City of Lake Oswego— Lake Oswego Adult Community Center SUBRECIPIENT Unique Entity Identifier: YJJFCP3HM9L6 Federal Award Identification Number(FAIN): Unavailable Federal award date: Unavailable Period of Performance (This Agreement): 7/1/2023—6/30/2027 Budget Period (This Agreement): 7/1/2023—6/30/2025 Amount of federal funds obligated for this ALN $3,100 by this action to SUBRECIPIENT: Total amount of all federal funds obligated to SUBRECIPIENT including the current financial $269,790 obligation: Total amount of all federal award to $269,790 SUBRECIPIENT: Federal award project description: Older Americans Act Federal awarding agency: Administration for Community Living Name of pass-through entity: Clackamas County Pass-through entity award identifying number NVWKAVB8JND6 to SUBRECIPIENT: Assistance Listing Number(ALN) &Title: 93.045 Title III, Part D Is Award for Research and Development? No SUBRECIPIENT indirect cost rate on this N/A Agreement: City of Lake Oswego— Lake Oswego Adult Community Center Subrecipient Grant Agreement—24-006, Amendment#2 Page 8 of 9 REPLACE EXHIBIT H —5 with the following: 2 CFR 200.332(a) REQUIRED INFORMATION Federal award identification SUBRECIPIENT Name: City of Lake Oswego— Lake Oswego Adult Community Center SUBRECIPIENT Unique Entity Identifier: YJJFCP3HM9L6 Federal Award Identification Number(FAIN): Unavailable Federal award date: Unavailable Period of Performance (This Agreement): 7/1/2023—6/30/2027 Budget Period (This Agreement): 7/1/2023—6/30/2025 Amount of federal funds obligated for this ALN $23,780 by this action to SUBRECIPIENT: Total amount of all federal funds obligated to SUBRECIPIENT including the current financial $269,790 obligation: Total amount of all federal award to $269,790 SUBRECIPIENT: Federal award project description: Older Americans Act Federal awarding agency: Administration for Community Living Name of pass-through entity: Clackamas County Pass-through entity award identifying number NVWKAVB8JND6 to SUBRECIPIENT: Assistance Listing Number(ALN) &Title: 93.052 Title III, Part E Is Award for Research and Development? No SUBRECIPIENT indirect cost rate on this N/A Agreement: City of Lake Oswego— Lake Oswego Adult Community Center Subrecipient Grant Agreement—24-006, Amendment#2 Page 9 of 9 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have caused this Amendment#2 to be executed by their duly authorized officers. CLACKAMAS COUNTY City of Lake Oswego — Lake Oswego Adult Community Center By: By: Its: Its: Dated: Dated: Approved to Form: By: County Counsel Dated: 9.1 F °� COUNCIL REPORT � o OREGO\-\ Subject: Resolution 24-15, Approving Appointments to Boards & Commissions Meeting Date: June 18, 2024 Staff Member: Quin Brunner, Management Analyst Report Date: June 10, 2024 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Adopt Resolution 24-15. Recommended Language for Motion: Move to adopt Resolution 24-15. Project/ Issue Relates To: Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable BACKGROUND Between May 14th and June 1st, members of the eleven Boards and Commissions search committees reviewed applications and interviewed candidates. From a pool of ninety applicants, twenty-three were recommended for full appointments, ten were recommended for youth appointments, and sixteen were recommended for alternate appointments. Four of the candidates offered alternate appointments did not accept the appointment offer. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 DISCUSSION Having thoroughly reviewed 90 applications and obtained the support of the Mayor, our eleven search committees recommend the appointments detailed in Exhibit A. City staff are also using this batch of appointments to make a clerical correction. Steven Unger, a current member of the 50+Advisory Board, was elevated from an alternate role in November, 2023 to complete to remainder of another member's term (see Resolution 23-42). The term Mr. Unger assumed was scheduled to conclude on June 30, 2025 but the resolution formalizing his elevation errantly marked the conclusion of his term as at June 30, 2024. This one-year appointment corrects this clerical error. ATTACHMENTS 1. Resolution 24-15, with Exhibit A. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 RESOLUTION 24-15 A RESOLUTION OF THE CITY COUNCILORS OF THE CITY OF LAKE OSWEGO APPROVING APPOINTMENTS TO THE 50+ ADVISORY BOARD, BUDGET COMMITTEE, DEVELOPMENT REVIEW COMMISSION, DIVERSITY, EQUITY, AND INCLUSION ADVISORY BOARD, HISTORIC RESOURCES ADVISORY BOARD, LIBRARY ADVISORY BOARD, PARKS, RECREATION, AND NATURAL RESOURCES ADVISORY BOARD, PLANNING COMMISSION, SUSTAINABILITY ADVISORY BOARD, AND TRANSPORTATION ADVISORY BOARD. WHEREAS, There are ten boards and commissions with vacancies from expiring terms on June 30, 2024; and WHEREAS, Search committees consisting of City Councilors, a current Chair, Vice Chair, or Member, a representative of the DEI Advisory Board, and a non-voting staff liaison, evaluated applications and conducted interviews between May 14th and June 15t; and WHEREAS, Exhibit A lists the appointments recommended by the search committees and approved by the Mayor; and NOW, THEREFORE, BE IT RESOLVED, the City Councilors of the City of Lake Oswego approve the Mayor's appointments to the 50+ Advisory Board, Budget Committee, Development Review Commission, Diversity, Equity, and Inclusion Advisory Board, Historic Resources Advisory Board, Library Advisory Board, Parks, Recreation, and Natural Resources Advisory Board, Planning Commission, Sustainability Advisory Board, and Transportation Advisory Board as outlined in Exhibit A. Section 1. Effective Date. This Resolution shall take effect on July 1, 2024. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 18th day of June, 2024. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Resolution 24-15 Page 1 of 1 o��A Ef H` s, CITY COUNCIL V Ail O Exhibit A 2024 Board & Commission Appointments OREGG� June 18, 2024 (term expires June 30, XXXX) 50+Advisory Board Parks, Recreation, and Natural Resources • Shelley Burgess (2027) Advisory Board • Steven Kaufman (2027) • Matthew McGinnis (2027) • Steven Unger (2025) • Rebecca Greene (2027) • Ann Savage—alternate (2025) • Patrick Gutierrez (2027) • Diya Deepu—youth (2025) Budget Committee • Katherine Gragg—youth (2025) • Carrie Love (2028) • David Walters—alternate (2025) • Rick Ahlander (2028) • Tyson Hart—alternate (2025) • Daniel Hein—alternate (2025) Planning Commission DEI Advisory Board • Jeremy Slyh (2028) • Kimvi To (2027) • James Bruce—alternate (2025) • Radhika Shah (2027) • Peter Gutwald—alternate (2025) • Peren Tiemann (2027) • Auveen Shafaei—youth (2025) Sustainability Advisory Board • Lexi Ye—youth (2025) • Buzz Chandler(2027) • Ginny Perelson—alternate (2025) • Lisa Helfer (2027) • Luna Flores—youth (2025) Development Review Commission • Mason Klein—youth (2025) • Yuko Mino (2027) • Isabela Hollingshead—alternate (2025) • Larry Linstrom (2027) • Matthew Coleman—alternate (2025) • Charlie Smith—alternate (2025) Transportation Advisory Board Historic Resources Advisory Board • Esther Mullen (2027) • Denis Bartelt(2027) • Lawrence Magura (2027) • Jen Wiley (2027) • Mario Welliver—youth (2025) • Sharon Mirarchi—alternate (2025) • Nathan Bender—youth (2025) Library Advisory Board • Kent Watson (2027) • Lilisa Hall (2027) • Joy Fabos (2027) • Seth Pauley(2025) • Anisha Oruganty—youth (2025) • Enid Rittman—youth (2025) • Liberty Planck—alternate (2025) Respect. Excel ence. Trust. SO vi:.c:. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 10.1 F °� COUNCIL REPORT � o OREGO\-\ Subject: Resolution 24-24, Adoption of an updated Urban and Community Forestry Plan (PP 21-0008) Meeting Date: June 18, 2024 Staff Member: Jessica Numanoglu, Director Report Date: June 7, 2024 Department: Community Development Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Planning Commission Recommends Approval ❑X Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑X Not Applicable ❑ Information Only Comments: The City's current Urban and Community ❑ Council Direction Forestry Plan was adopted in 2008. ❑ Consent Agenda Staff Recommendation: Conduct a public hearing on Resolution 24-24 to adopt an updated Urban and Community Forestry Plan. Recommended Language for Motion: Move to adopt Resolution 24-24. Project/ Issue Relates To: Council goal to "Combat climate change and strengthen the community's resilience to climate impact." Initiative: "Adopt an updated Urban and Community Forest Plan." ❑X Council Goals/Priorities ❑Comprehensive Plan ❑Not Applicable ISSUE BEFORE COUNCIL The Council will hold a public hearing to consider the adoption of an updated Urban and Community Forestry Plan. Respect. Excellence. Trust. Servi e. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 EXECUTIVE SUMMARY The proposed 2024 Urban and Community Forestry Plan (UCFP) is a part of the City Council goal to "Combat climate change and strengthen the community's resilience to climate impact" and the Council initiative to "Adopt an updated Urban and Community Forest Plan." The update to the UCFP commenced in Spring 2023 and was informed by the 2022 State of the Urban Forest Report, a review of existing codes and policies, public engagement, and a Technical Advisory Committee. The proposed UCFP is a guidance document for managing the City's urban forest. It addresses Urban Forest Sustainability and Urban Forest Management and includes a Strategic Plan, Implementation Plan, and Monitoring Plan. The final draft of the UCFP being considered for adoption incorporates revisions based on feedback and direction provided by the Council at their May 21, 2024 Study Session. BACKGROUND The City Council first prioritized an update to the City's first UCFP (adopted in 2008) in its 2023 goals and initiatives after an update to the State of the Urban Forest Report (SURF) was completed in 2022. The SURF provided important background and baseline data needed to inform the update to the UCFP. The City contracted with consultant Dudek to assist with the UCFP update in Spring 2023. 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. A total of four study sessions and a meeting with stakeholder focus groups were held between January and May 2024 to review drafts of the UCFP and feedback that was received from the public in January. This included a joint work session with the Planning and Development Review Commissions and with the Parks, Recreation and Natural Resources and Sustainability Advisory Boards, and two study sessions with the City Council. Feedback from the public, stakeholders, boards and commission, and Council informed revisions that have been incorporated in the updated UCFP. The draft UCFP is included as Attachment A of Resolution 24-24 (Exhibit 1), and consists of the following documents: • Urban and Community Forestry Plan o Appendix A: Community Engagement Memo o Appendix B: Pest Risk Assessment o Appendix C: Municipal Code Redline Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 o Appendix D: Monitoring Plan Draft Resolution 24-24, to adopt the updated UCFP, is included as Exhibit 1. DISCUSSION 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 UCFP is not a regulatory document, meaning the plan was not created in order to fulfill a regulatory mandate from a regional, state or federal authority. Rather, it is an aspirational plan for managing a critical community asset that provides countless community benefits to the health and happiness of our residents and visitors as well as essential ecosystem services, and which must be cared for and managed in order to assure its long-term health and resiliency to the effects of climate change. Urban and Community Forestry Plan The UCFP addresses Urban Forest Sustainability and Urban Forest Management and includes a review of current City Codes, Plans, and Policies related to urban forest management, along with recommendations for revisions and updates. The UCFP also includes a Strategic Plan, Implementation Plan, and Monitoring Plan as described below. The Strategic Plan is included on pgs. 82-99 of the UCFP and provides a guide for the actions needed to manage the City's urban forest based on the following five guiding principles: 1. The urban forest is cared for through sufficient financial investment and adequate staffing resources; 2. Trees are managed according to best management practices to improve the health, longevity, safety, and functional capacity of the existing urban forest and to ensure that the future urban forest can reach its potential to provide the full range of environmental benefits and services; 3. The quality of life in the City is enhanced by the benefits and services provided by the urban forest; 4. The thriving urban forest is able to withstand and recover from impacts of climate change, such as storms, drought, pest, and diseases, and contributes to reducing climate impacts, including mitigating urban heat islands, reducing carbon emissions, and sequestering carbon; and 5. An urban forest that integrates with the urban needs of a city to include housing, infrastructure, businesses, schools, and transportation. The Implementation Plan on pgs. 100-113 assigns all the Strategic Plan actions a timeline, responsible party and/or department(s), recommended partners, and the estimated budget to accomplish the work. Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 The monitoring plan on pg. 115 and Appendix F utilizes the Community Assessment and Goal- Setting tool developed by the Vibrant Cities Lab to measure progress towards a sustainable urban forest. An initial evaluation was completed by City staff and the Consultant team.The UCFP recommends that the City retake the Assessment tool every two years to measure progress towards the sustainability indicators. Revisions made to UCFP since the May 21, 2024 Council Study Session At the May 21 Study Session, Council reviewed Draft 5 of the UCFP and provided feedback and direction to be incorporated into the final draft of the UCFP. These revisions have been included in the UCFP (Exhibit 1 - Resolution 24-24, Attachment A) and are summarized as follows: • Added "and combats" the effects of climate change to the vision statement to be consistent with the language in the City Council Goal (pg. 9); • Deleted the words "preserved" and "protection" from Key Finding#9 (pg. 17) to address concerns that this may wrongly imply that tree removal is not allowed; • To address concerns that the UCFP may be interpreted as imposing new regulations on private property trees, text was added to Key Finding#7 that the plan is directed at managing the urban forest on city-owned and managed properties, but that there are actions included in the Plan to encourage care and maintenance of the urban forest on private property (pg. 16), and added language on pg. 25 noting that the UCFP does not introduce any new regulations for trees on private property; • Added text in the Monitoring Plan introduction to acknowledge that the City has made good progress towards a sustainable urban forest, which is evidenced by its high score compared to other cities using the Vibrant Cities Lab assessment tool (pg. 115); and • Made minor text edits throughout document for clarity or to correct errors. The Council also asked for clarity on which action items in the Implementation Plan would require additional resources or funding. In response, staff created a separate spreadsheet that lists the Implementation Plan actions and identifies which actions are or can be accomplished with existing resources and which actions may require additional funding or staff resources (Exhibit 2). This spreadsheet is not incorporated in the UCFP because it is based on the current budget and staffing resources, and staffing and funding priorities change over time; however, it is a useful reference that can be updated periodically by staff and consulted during the budgeting process. FISCAL IMPACT Some of the actions in the UCFP are or can be accomplished with existing budget and staff and some may require additional resources or staff to accomplish. The UCFP is an aspirational plan and the actions are intended to be implemented over time. The Council will need to consider and balance the funding of the UCFP actions along with the funding of other city needs and priorities during the budgeting process. As discussed, above, Exhibit 2 provides an overview, Respect, Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 5 based on current budget and staffing, of the actions in the UCFP that may require additional resources and those that are or can be accomplished with existing staff and resources. RECOMMENDATION Staff recommends that the City Council approve Resolution 24-24, adopting the updated UCFP. EXHIBITS 1. Draft Resolution 24-24 Attachment A: Urban and Community Forestry Plan Due to size (943 pages with appendices), please use this link: h ttps://www.ci.oswecgo.or.us/WebLink/Browse.aspx?id=2789056&dbid=0&repo=CityOfLakeOswego Appendix A: Community Engagement Memo Appendix B: Pest Risk Assessment Appendix C: Municipal Code Redline Appendix D: Monitoring Plan 2. Spreadsheet of UCFP Implementation Plan Actions with Budget Notes Staff reports and meeting materials can be found by visiting the project web page for PP 21-0008. Use the link below to visit the City's "Project" page. https://www.ci.oswego.or.us/all-projects (Under "Search" enter PP 21-0008, then press "Enter") Respect. Excel'ence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY EXHIBIT 1 RESOLUTION 24-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO ADOPTING AN UPDATED URBAN AND COMMUNITY FORESTRY PLAN (PP 21-0008). WHEREAS,the original Urban and Community Forestry Plan was adopted in 2008, and since that time a number of plans, policies and codes relating to urban forest management have been updated or adopted by the City, and issues and emerging threats, such as climate change, invasive pests, and wildfire risks, are not addressed in the original Plan; and WHEREAS, an update to the City's State of the Urban Forest Report was completed in December 2022; and WHEREAS, the City Council established a 2024 goal to "Combat climate change and strengthen the community's resilience to climate impact" that includes an initiative to "adopt an updated Urban and Community Forestry Plan"; and WHEREAS, the update to the Plan was informed by community engagement, including focus group meetings with stakeholders, outreach at City events, an online survey, outreach through social media and City newsletters, and work sessions with the Planning Commission, Development Review Commission, Sustainability Advisory Board, Parks, Recreation and Natural Resources Advisory Board, and City Council; and WHEREAS, the update was guided by a Technical Advisory Committee consisting of City staff, a member of the Oswego Lake Watershed Council, and a state representative from the Oregon Department of Forestry; and WHEREAS, the City Council conducted a public hearing on June 18, 2024 to adopt the updated Urban and Community Forestry Plan; and NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City adopts the updated Urban and Community Forestry Plan, included as Attachment A, which to brings together policies, practices, and plans related to Lake Oswego's urban forest and serves as a planning and policy tool to guide management of the urban forest as a valuable community asset. 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 18th day of June, 2024. AYES: NOES: Resolution 24-24 PP 21-0008 Page 1 of 2 EXCUSED: ABSTAIN: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Resolution 24-24 PP 21-0008 Page 2 of 2 EXHIBIT 2 IMPLEMENTATION PLAN ACTION ITEMS ONGOING ACTIONS Wr Action No. Action Responsible Party Recommended Cost Additonal funding Notes Partner(s) needed? Strive to ensure tree planting exceeds tree removal performed by all City We are doing this consistently 5i Parks,PW Planning $$ No departments each year. with current budgets Create a State of the Urban Forest report in conjunction with,or The last update to the SURF was subsequent to,the effective shade analysis,which is generally completed funded through the Planning within a year of when new LiDAR data becomes available to align with the availability of regional lidar data and the City's effective shade/canopy Dept.budget allocation.Funding 3f Planning Parks,PW,GIS $$$$ Maybe of the next SURF update cover analysis,resulting in consistent measurement of the urban canopy. (estimated 2026 or 2027)will Communicate the findings to the community along with the importance of tree canopy and effective shade in lowering or stabilizing stream need to be balanced with other temperatures. Planning Dept.work plan items. Increase tree planting budgets to reflect tree planting goals for existing Involves multiple depts.and le City Parks,PW $$$$ Maybe depends on available budget City plans and documents. and priorities. Pursue tree planting opportunities through community volunteer events or PW,Watershed Possible this could be funded 1c Parks $ Yes using the Tree Fund.See Action collaborating with local organizations to reduce the cost of tree planting. Councils,FOT 1f. Implement a scouting program for invasive beetles,such as emerald ash Planning, Parks has started doing this in borer and Mediterranean oak borer,to better prevent or intercept a pest 4c Parks,PW Watershed $$$$ No collaboration with State that could cause severe damage to the urban forest and to help inform state agency efforts to track the movement of these pests. Councils,GIS Agencies Update the City's tree inventories(2b)according to the recommended time 2c frame in Section 2,to ensure the City has accurate information on which PW Parks,Planning $$$$ Yes to base management decisions. Increase funding for the Habitat Enhancement Program(HEP)to support Parks,Watershed 1g and expand ongoing restoration efforts through partnerships between City I $$$$ I Yes qualified organizations and private landowners. Councils Collaborate with the Oswego Lake Watershed Council to continue training Already collaborating with OLWC, citizen scientists to collect tree inventory data voluntarily on private Watershed but GIS may need additional 2e properties.Explore mechanisms to analyze private property inventory data Planning Councils,PW, $$ Yes funding to analyze data.There is alongside City-managed tree inventory data to understand overall health of Parks not enough data yet,so this is the City's entire urban forest. not a high priority right now. 2m Prioritize planting large-stature trees where possible. PW,Planning,Parks -- $ No Conduct tree maintenance workshops targeted at contractors working in 2r Planning PW,Parks $ No the City.Ensure program follows ISA best management practices. PP 21-0008 EXHIBIT 2/PAGE 1 OF 6 Action No. Action Responsible Party Recommended Cost Additonal funding Notes Partner(s) I needed? Continue to promote an urban forestry stewardship ethic in the community 3a through general education events with watershed councils,HOAs,and Planning Parks $ No other non-profits. 3b Conduct tree protection workshops targeted at builders,arborists,and Planning PW,Parks $ No other contractors working in the City. Maintain status as a Tree City USA and continue to celebrate Arbor Month 3c as a key public outreach period each year for education and encouraging Parks City $ No stewardship of trees in the City. 3d Continue to celebrate Heritage Trees and provide tree care assistance Planning City $ No through the Heritage Tree Preservation Grant Program. Update educational materials every 3 years to ensure information is I 3e aligned with current arboricultural knowledge.Create new stewardship Parks Planning,PW $$ Maybe Requires technical assistance from an arborist. and educational materials as needed to address emerging issues. Encourage tree planting in riparian areas by providing community education and outreach to connect planting native trees to creating PW,Planning, May be accomplished through 3n wildlife corridors,stabilizing stream temperatures for salmonids,and the Parks Watershed $ Maybe existing or new community partnerships with the City.Staff importance to the region.Use the Lake Oswego Effective Shade report as a Councils reference. resources would be needed. — Provide guidelines for private property owners and developers including 3o best management practices for species selection,tree planting,and"right Planning $$ Maybe Could be coordinated with tree,right place"to prioritize large-stature,mature trees to support Action 3e,above. maintaining canopy cover percentage. 4b Ensure that age classes of trees are sufficiently distributed to ensure Parks,PW $$ No environmental benefits continue by consistently planting trees every year. Continue to use canopy cover as a success-measuring metric of urban 4f forest goals,and target areas with low shade cover to increase equitable Planning Parks,PW,GIS $$ No Costs captured by Action 3f shade canopy. Consider establishing a canopy cover goal to maintain over time. _ _ Increase awareness of the Lake Oswego Fire Department's Wildland Urban 4h Interface Home Assessment Program to assist private property owners on Planning Fire Department $ No ways to reduce fuel loads and eliminate the fire's potential relationship with the house. Periodically review the City-recommended tree species list and update it Should 4d be short term or 4d as appropriate with the following attributes:climate resiliency or drought PW,Parks Planning $ Yes ongoing?It's currently listed as tolerance,pest/disease susceptibility,allergen factor,water use,native status,root damage potential,and overstory or understory canopy layer. I short term in the Stragetic Plan PP 21-0008 EXHIBIT 2/PAGE 2 OF 6 Action No. Action Responsible Party Recommended Cost Additonal funding Notes Partner(s) needed? Treatment of infested wood, Treat tree debris collected from storm damage or with known pests with when needed,is going to cost 4g Oregon Department of Agriculture's guidelines prior to using as landscape PW,Parks -- $$ Yes more than typical disposal due mulch throughout the City. to State requirements Notes: PW=Public Works; Parks=Parks&Recreation; City=City council action required; FOT = Friends of Trees Costs: $ Low (0-$25,000); $$ Medium($25,000-$50,000); $$$ High ($50,000-$100,000);$$$$Very High(>$100,000) Short-Term Actions: 1 to 5 Years Action No. Action Responsible Party Recommended Cost Additonal funding Notes Partner(s) needed? 2q Clarify ROW tree management responsibilities of City departments. Planning,PW,Parks City $ No Develop a budget proposal for consideration during the next regular 1a budget cycle,based on the findings from the Urban and Community Planning PW,Parks $ No Forestry Plan(UCFP). Complete a 100%inventory of trees in developed City rights-of-way Possible that this work could be 2b (ROWs),developed City parks,and City-owned and managed properties, PW Parks,Planning, $$$$ I Yes eligible for a state grant per and a 10%sample inventory of trees in City-owned natural areas and GIS unimproved ROWs. Action 1b,below. Standardize establishment care period requirements for City-planted trees. Ensure consistency among all City departments.Create a notification 2d system for adjacent property owners who will adopt maintenance PW Parks,Planning $ Yes responsibilities for City-planted trees after the 3-year establishment period. Require mitigation trees to be planted for more tree removal permit types 20 when there are viable planting areas on site or allow payment into the Tree Planning -- $ No Fund if staff determines there is insufficient space to replant. Create an updated GIS layer that delineates categories of developed ROW, 2a developed parks,undeveloped ROW,and City-owned natural areas to GIS Parks,PW, $ Yes clarify the inventory collection procedures. Planning Pursue Oregon Department of Agriculture(ODA)and Oregon Department of lb Forestry(ODF)grant funding to conduct a tree inventory,create a wood PW Planning,Parks $ Yes reuse program,and prepare a pest action plan. PP 21-0008 EXHIBIT 2/PAGE 3 OF 6 Action No. Action Responsible Party Recommended Cost Additonal funding Notes Partner(s) needed? Align tree practices,such as planting,establishment care,and pruning 2i with ISA best management practices and American National Standards PW Parks,Planning $$ Yes Institute(ANSI)Standards.Ensure that guidelines are followed by City staff and contractors. Establish guidelines for utilizing the City's existing Tree Fund for tree Parks,PW, 1f planting,care,and maintenance,and a program to support tree giveaways Planning Watershed $ Maybe Will require staff resources. to private property owners. Councils _ 3j Consolidate all tree removal information in one location for clarity. Planning -- $ No _ Clearly describe if and when the City may provide tree care assistance to If City decides to provide 3k trees on private property.Ensure that tree care limitations are consistent Planning,PW,Parks -- $ Maybe assistance on private property, across City departments. this would impact budget and staff resources. 5h Clarify tree protection policies in sensitive areas such as riparian zones. Planning Parks,PW $ No This can be done through routine code maintenance. Parks,PW, 2n Quantify acreage goals of invasive species removal in specific open space, Planning Watershed $ No parks,or neighborhoods. Councils Increase transparency of the tree removal permit process by tracking all 3i applications that are submitted(approved,denied,and withdrawn),as Planning -- $ No well as required mitigation. Update Lake Oswego Code(LOC)Chapters 50 and 55 per 5a recommendations in Section 4 of the UCFP to be in compliance with Planning $$$$ Yes Oregon State Regulations to apply clear and objective standards to applications involving housing. Encourage regular meetings between Planning,Parks&Recreation,and 5g Public Works Departments to ensure work activities are effectively Parks,Planning,PW I -- $ No coordinated and operating as intended. Notes: PW=Public Works; Parks=Parks&Recreation; City=City council action required; FOT = Friends of Trees Costs: $ Low (0-$25,000); $$ Medium($25,000-$50,000); $$$ High ($50,000-$100,000);$$$$Very High(>$100,000) Medium-Term Actions:5 to 10 Years Action No. Action Responsible Party Recommended Cost Additonal funding Notes Partner(s) needed? 2f Conduct a hazardous tree survey to identify hazardous,dead,or otherwise PW Parks $$$$ Yes undesirable street trees and along public trails. Limit topping permits to utility companies as much as possible and 2p Planning -- $ No consider replacing trees using"right tree,right place"concept. PP 21-0008 EXHIBIT 2/PAGE 4 OF 6 Action No. Action Responsible Party Recommended Cost Additonal funding Notes Partner(s) needed? Create a tree risk management program that includes risk assessments 2h every 3 to 5 years of City-managed trees and trees in directly managed PW Parks $$$$ Yes parks and City facilities. 2j .Develop a tree replacement program for targeted ROWs. PW Parks $$$$ Maybe Depends on the outcome of action 2q,above. Implement a formative structural pruning program for young and newly 2k planted trees to mitigate potential tree structure and safety issues for Parks -- $$$$ Yes trees in parks. Identify additional incentives for homeowners and builders to preserve 3g trees,to ensure that existing trees are given extensive thought in the Planning -- $ No planning process and integration into the development plan. Develop a strategy to increase tree management funds because as the City's trees age they will require increased maintenance costs,and the 1d looming arrival of invasive pests such as emerald ash borer(Agrilus Parks,Planning,PW City $ Yes planipennis)and Mediterranean oak borer(Xyleborus monographus)will require costly removal or treatment programs. As part of the City's budgeting process,consider funding an urban forester 2s position,either through an on-call consultant or City staff position,to Parks Planning $$$$ Yes implement tasks within the strategic plan Planning,PW, 3h Establish an internship program to enhance the urban forestry workforce. Parks Watershed $$$$ Yes Councils Create a tree debris utilization program that helps retain carbon Parks,Watershed 31 sequestration benefits and provides hyperlocal bioresources to the PW $$$$ Yes Councils community. Target increasing tree canopy in areas identified in the 2021 Effective 3m Shade Report by providing education on the value of trees planted in PW Planning,Parks $$$$ Yes these areas. Establish soil volume standards for street trees and parking lots.In areas 4a where soil volume standards cannot be met,use structural soils and other PW Planning $$ Yes technologies like suspended pavement systems. 4e Require street tree planting for all new development and provide Planning $ No guidelines for mitigation trees planted on site to maintain canopy cover. 5b Update the Comprehensive Plan's Healthy Ecosystems chapter as Planning City $$ No Can be done in conjunction with described in Section 4. HPS Comp Plan updates. 5c Update the TMDL Implementation Plan as described in Section 4. PW City $$ No Can be done in conjunction with the next TMDL Plan update. PP 21-0008 EXHIBIT 2/PAGE 5 OF 6 Action No. Action Responsible Party Recommended Cost Additonal funding Note Partner(s) needed? 5d Update the 2020 Sustainability and Climate Action Plan as described in City Manager's Office City $$ No Can be done in conjunction with Sections 4. the next SCAP update. 5e Consider including analyses and recommendations in future Effective Planning Parks $ Maybe Shade Reports as described in Section 4. 5f Update the 2022 Stormwater Management Plan as described in Section PW City $$ No Can be done in conjunction with 4. the next SWMP update. Notes: PW=Public Works; Parks=Parks &Recreation; City=City council action required; FOT = Friends of Trees Costs: $ Low (0-$25,000); $$ Medium($25,000-$50,000); $$$ High ($50,000-$100,000);$$$$Very High(>$100,000) Long-Term Actions: 10-Plus Years Action No. Action Responsible Party Recommended Cost Additonal funding Note Partner(s) needed 2g Establish a pruning cycle goal of 5-7 years for all City-managed ROW PW Parks $$$$ Maybe Depends on the outcome of trees. Action 2q. PP 21-0008 EXHIBIT 2/PAGE 6 OF 6 11 .1 O F �s� COUNCIL REPORT Ci cEGO� Subject: Civil Violation Code Enforcement Study Session Meeting Date: June 18, 2024 Staff Members: Jessica Numanoglu, Director Bill Youngblood, Senior Code Enforcement Specialist Report Date: June 7, 2024 Department: Community Development Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑X Council Direction ❑ Consent Agenda Staff Recommendation: N/A Recommended Language for Motion: N/A Project/ Issue Relates To: Civil Violation Code Enforcement Process, Considerations, and Priorities ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable ISSUE BEFORE COUNCIL Staff will provide an overview of the current approach to civil violation code enforcement and is seeking feedback from the Council on enforcement priorities and considerations, and potential enforcement-related code amendments. This study session will focus primarily on civil code enforcement in the Community Development Department, but will touch on civil enforcement in other departments. Enforcement matters related to maintenance of vegetation and sidewalks in public rights-of- way (ROW), encroachments in public ROWs, and encroachments into parks and natural areas will be discussed at a future work session with the Council later this year. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 EXECUTIVE SUMMARY This report outlines the City's current approach to code enforcement, highlighting key considerations, priorities, and challenges, and concluding with recommendations for code amendments to address issues that make it difficult to effectively, efficiently, or fairly enforce codes and standards. Staff requests feedback from the Council on the current code enforcement process and to identify priorities moving forward. BACKGROUND Code enforcement is a critical function within our city to maintain the safety, health, and quality of life of all residents through the regulation of building codes, zoning laws, sign codes, tree codes, property maintenance standards, and other municipal regulations. Without enforcement, codes and standards are less likely to be followed, which deteriorates community standards and the vision it aspires to. This study session focuses on the City's enforcement approach to civil violations, which are non- criminal infractions that are typically punishable by a fine (criminal violations have a different process and will not be covered). In Lake Oswego, some common examples of civil violations include illegal placement of an A-frame sign in the public right-of-way, parking violations, fence violations, construction without a permit, failure to obtain a tree protection or tree removal permit, and nuisances (e.g., noise, trash/debris, tall grass). Enforcement of civil violations in the City is decentralized and falls to several different departments, depending on the type of violation, although there is collaboration and coordination among departments to enforce certain codes. Table 1 lists the departments that conduct enforcement along with the responsible staff and the codes or ordinances that are enforced. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 Table 1. Department Responsibility for Civil Violation Code Enforcement Department Responsible Staff City Codes and Ordinances Enforced Police Community Service Officers Animals and Fowl (Ch. 31) (CSOs) and Police Officers Traffic Code (Parking) [Ch. 32] Nuisances (Ch. 34) Sign Code (Ch. 47)* Tree Code (Ch. 55)* Fire Fire Marshal Fire Code (Ch. 15) Parks and Recreation Park Rangers Park Rules (Ch. 34) Encroachments in parks' Community Development Building Official Building Code (Ch. 45) Code Enforcement (CE) Nuisances (Ch. 34) Specialists Sign Code (Ch. 47) Community Dev. Code (Ch. 50) Tree Code (Ch. 55) Republic Services (Ordinance) Engineering Public Works staff -ltreets ana iaewaiics kCh. 42)` i''h. 34) Erosion Control Specialist Erosion Control (Ch. 52) *CSOs assist with enforcement when Code Enforcement Specialists are not available,typically after-hours, weekends,and holidays. Code enforcement staff in all departments make a concerted effort to balance enforcement with community relations and strive to resolve violations first through education and voluntary compliance; however, when that is not possible, a "stick" approach, potentially with a correction letter, fines, or court action, is taken. Additionally, it is not possible to reverse/correct some violations once they occur, such as tree removal or demolition without a permit. For these types of offenses, a violation letter and a fine are always issued. These types of situations can result in complaints about the City's enforcement actions or claims of inconsistent enforcement, impacts on businesses or personal finances, or unfairness. Additionally, we sometimes receive complaints about the length of time it takes to resolve an enforcement case filed by a complainant. In the Discussion section, below, we discuss various considerations and priorities that are balanced in determining how we approach enforcement cases, challenges that staff faces in enforcing certain standards, and recommendations for possible code changes to address these challenges. 1 Due to the complex and sensitive issues around ROW and park or natural area encroachments and maintenance of sidewalks and vegetation in the ROW,enforcement of these matters will not be covered in this study session.A separate study session covering these matters will be scheduled for a future Council meeting later this year. 2 See Footnote 1. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 DISCUSSION Current Civil Violation Code Enforcement Approach The frequency and nature of civil violations vary by department and the process to address and prioritize violations also varies depending on the affected code and the nature and urgency of the violation. However, there are some common factors in most civil violation investigations that are considered in the City's overall approach to code enforcement. Considerations 1. Equity. Equity means that all community members are treated fairly and justly, regardless of their socioeconomic status, race, or background in the code enforcement process. To staff's knowledge, no data has been collected specifically to evaluate equity in the City's civil enforcement programs; therefore, we do not currently know whether these programs result in inequitable outcomes in the City. Anecdotally, we do know that a purely complaint- based enforcement system is inequitable because it results in inconsistent treatment. For instance, it can reward residents who feel comfortable contacting the government, such as people who speak English fluently, are more socio-economically well off, and have trust in local government. This can lead to higher rates of complaints and enforcement actions in some neighborhoods, but not others, and can disproportionately affect communities of color or lower-income residents who may be targets of the complaints and don't feel comfortable contacting the government. The City utilizes both a complaint-based and a systematic-based approach to code enforcement. Systematic code enforcement takes a more proactive approach to address or prevent violations rather than relying only on complaints to identify violations. Examples of this approach include conducting routine inspections and patrols throughout the City, notifying licensees of upcoming renewals so they can remain in good standing, education, and enforcing violations observed by staff in the field, rather than waiting until a complaint is received. Table 2 lists regulations that are enforced on a systematic basis (and also by complaint), followed by a list of regulations that are complaint-based only (Table 3): Table 2. Systematic-Based Civil Violation Enforcement (violations that are investigated with or without a complaint and measures taken to prevent violations). Regulation Dept. Responsible Description Equity Evaluation for Enforcement Fire Code Maint. Fire Dept. Compliance inspections Inspections apply Inspections according to the Oregon Fire systematically and (commercial Code. everyone is treated sites, new the same. construction/ Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 5 Regulation Dept. Responsible Description Equity Evaluation for Enforcement permits, state licenses) Business Community Finance Dept. proactively All applicants receive Licenses Development notifies applicants of renewals notifications. Temporary Signs Community Public Property: signs are picked Illegal signs are picked (illegal A-frame Development/ up by CE Specialists, CSOs, and up as encountered in signs, banners, Police Police on weekdays. On the field; however, election signs, weekends/holidays, signs are staff cannot patrol etc.) picked up by CSOs and Police. every property so high visibility/traffic areas Private Property: signs are may have higher addressed by CE Specialists. enforcement rates than other areas. Parking Police/ CSOs and Police address illegal Staff cannot patrol Community parking and every property so high Development abandoned/inoperable vehicles visibility/traffic areas in public ROWs. may have higher CE Specialists address enforcement rates abandoned/inoperable vehicles than other areas. on private property. Fences and Community Fences and walls that do not Same as above Walls Development meet height, location, or design standards are addressed by CE Specialists. Tree Community CE Specialists address tree Same as above Code/Sensitive Development violations and illegal removal of Lands vegetation from Sensitive Lands with backup from CSOs and Police on weekends and holidays. Type II Tree Mitigation for Inspections apply Development: all mitigation systematically to all inspected by CE Specialists prior permits; all applicants to final Building Permit approval. are treated the same. All Other Type II Mitigation: 50% Inspections are of all mitigation is inspected by selected using a Planning Department staff randomized sampling through random selection. method so all permits have an equal chance of being selected. Tree Protection: All tree protection plans are inspected by the CE Specialists. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 6 Regulation Dept. Responsible Description Equity Evaluation for Enforcement Tree Code Trainings: Workshops CE Specialists are presented yearly on tree participate in public removal and tree protection workshops to educate regulations. the public and local tree professionals Other Public Tree Education: about tree removal Saturday Market booths; Hello and tree protection Lo articles;Arbor Day Activities; requirements. Sustainability Fair, etc. Additional public education on tree regulations and care is provided by Planning staff at events throughout the year. Parks Rules Parks Park Rule violations are Two Park Rangers (dogs off-leash, addressed by Park Rangers, cannot patrol every littering, noise, Police, and CSOs during patrols park so high-use parks etc., and private or in response to calls for may have higher encroachments service. enforcement rates into parks) than others. Land Use Community CE Specialists inspect Inspections apply Conditions of Development development projects for systematically to all Approval (tree compliance prior to final permits; all applicants mitigation, Building Permit approval. are treated the same. landscaping) Building Code Community Building Official and CE Cases are addressed Development Specialists respond to as encountered in the construction without a permit field/inspections. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 7 Table 3. Complaint-Based Civil Violation Enforcement Only: Regulation Dept. Responsible for Description Enforcement Nuisances Police/Fire/ CSOs respond to noise complaints. Fire Community Development Dept. responds to high grass and fire hazard complaints. CE Specialists respond to abandoned building and garbage/debris complaints. Residential Solicitations Police Police respond to complaints about solicitors. Community Development Community Development CE Specialists respond to complaints Code about CDC standards, most commonly related to accessory structures, short- term rentals, home occupations, uses, business activities, landscaping, private parking, and lighting. An enforcement system can also be inequitable when it prioritizes punitive actions and fines over code compliance. For instance, automatically issuing fines for nuisance violations, such as tall grass, could disproportionately affect lower-income residents who may already be experiencing financial hardship, or disabled or elderly residents who are unable to perform maintenance, and diverts money to fines instead of addressing the problem. The City's overall approach is to prioritize the resolution of violations through education and voluntary compliance before resorting to fines or other punitive actions. For example, CE Specialists handled 235 violation cases between May 2022 and May 2024, of which only 63 cases (37%) were charged a violation fee. Almost all of those violation fees were charged to commercial contractors and professionals that had committed code infractions, rather than residents. See the discussion on pages 8-10, below, for a full description of the Civil Violation Code Enforcement Process for the Community Development Department. 2. Priorities. Code enforcement staff must balance their workload to resolve on-going cases as well as investigate new cases and perform their other work tasks. For instance, CE Specialists in the Community Development Department inspect and issue Tree Protection Plans, and perform inspections for tree and sensitive lands mitigation and Planning requirements (e.g., land use conditions, landscaping, bicycle and vehicle parking, etc.) in addition to investigating and processing violations. On average, CE Specialists have 30-50 active complaint cases at any given time while at the same time resolving approximately 15 violation cases, completing 5-10 Planning inspections, and issuing 54 Tree Protection plan approvals each month. Civil violation enforcement cases have different levels of importance or urgency. Some cases are investigated and resolved on the spot or within a few days, while others can take Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 8 months, or even years, to resolve. Civil violation cases are prioritized and handled based on the following factors: a. Public safety or health issue—violations that pose an immediate threat to the public, such as injury to a tree during construction that may make it hazardous/likely to fall or improper storage of food scraps/garbage that is attracting rodents or being blown off- site, have priority and are addressed as soon as possible. b. Worsening civil violation vs. static civil violation—violation activities that are in progress (e.g., a tree being cut down without a permit, active construction occurring without a permit, or vegetation in process of being removed from Sensitive Lands, etc.) have priority over violation activities that are not active or violations that occurred more than six months ago (e.g., a fence built too tall, an accessory structure built within a yard setback, or a tree canopy topped in the past, etc.). c. Repeat offenders or non-compliance—violation fees are charged for a new violation when it is the same or similar to a past violation by a repeat offender, such as a contractor who has had previous tree protection violations, or when a violation action cannot be reversed, such as removing a tree or demolishing a house without a permit. Violation fees may also be charged when code enforcement staff have made several attempts to gain voluntary compliance, but the offender refuses to comply or stalls progress toward compliance. d. Community values (safety, trees, aesthetics)—violations involving tree removal or protection, temporary signs, and land use have long been recognized as important community values and are considered a high priority for enforcement. e. Enforceability/Limited Evidence— low enforcement priority is given to cases where there is limited evidence of a violation or where collecting evidence is very difficult. Examples include: violations where the responsible party is unknown or a witness is unwilling to testify; staff is unable to determine when a violation occurred; or when after-hour or long-term surveillance is required to substantiate the violation, such as verifying 6-month minimum owner occupancy requirements for short-term rentals. 3. Misuse of limited enforcement resources—while code enforcement staff investigate all complaints, maintaining an efficient use of staff time can be challenging when the system is misused. It is not uncommon for neighbors who are not getting along to use the code enforcement process as a way to cause distress to their neighbor by reporting serial complaints, often to multiple departments (Police Department, City Manager's Office and Code Enforcement staff), which in turn can lead the other neighbor to file complaints in retaliation. Depending on the circumstances involved, these situations may be given a low priority. Current Civil Violation Code Enforcement Process—Community Development Department As noted previously, the process to investigate and enforce a violation differs by department due to the varied regulations involved; however, because the Community Development (CD) Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 9 Department has one of the most active enforcement programs due to the depth and breadth of the codes and ordinances it is responsible for enforcing, the CD Department's enforcement process provides a good example to understand the time and effort involved. Violations handled by the CD Department generally relate to public health, safety, and welfare, business activities, building standards, land use, permitting, and neighborhood livability. Once a potential civil violation has been identified, the CE Specialists follow the standard procedure, below: 1. Investigate/verify complaint with the complainant; CE Specialists start by meeting with or talking to the complainant to gather facts and understand the issue (who, what, when, and where) and will make a site visit to determine if a violation exists. Approximately 20% of the complaints received are not actually a violation of a City code, but are instead a private dispute, such as a property damage claim, a property line dispute, a concern about a neighbor's dead tree, a tenant/landlord dispute, or a criminal complaint (trespass). 2. Contact the property owner and the person(s) who performed the work to discuss City code requirements and the actions needed for compliance; If an individual was hired to perform the work, then they are also contacted and included in the actions needed for compliance. Notice of payment for a violation fee (when required) is sent to the property owner and the contractor. It is between the property owner and the contractor to determine who pays the fee or if the cost is shared. 3. Send a violation letter to the property owner(and contractor, if applicable) with actions needed for compliance, and a completion date; CE staff generally give the violator additional time to achieve full compliance, if requested, as long as progress toward compliance is made by the compliance date. A violation letter with fee and payment date is issued to the violator if progress toward compliance is not made or if the violation cannot be undone, such as a tree removed without a permit or a house demolished without a permit. 4. Issue a citation for the violation. a. A citation is issued once other attempts to achieve compliance have failed and the time provided in the violation letter (including extensions) has passed without compliance. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 10 b. A citation is processed by the Lake Oswego Municipal Court and requires the recipient to enter a plea of"Guilty", "No Contest" or "Not Guilty" c. A defendant's plea of"Guilty" or "No Contest" to the Court results in the citation being approved by the Judge and the defendant paying a presumptive fine to the Court. However, the citation approval does not require the defendant to complete the actions needed to comply with city codes. This means that even when the citation is approved and the fees are paid by the defendant, the violation of City code still remains. CE staff may issue additional citations for the violation as an incentive for the defendant to comply. However, because the citation process is labor-intensive and time-consuming, it is only used when other attempts to reach compliance have failed. d. A defendant's plea of"Not Guilty" results in the Court scheduling a trial to hear evidence from CE staff as to why the defendant is guilty, and to hear evidence from the defendant as to why they are not guilty. If the Judge finds the defendant Not Guilty, the citation is denied. If the Judge finds the defendant Guilty, CE staff may provide evidence of past attempts to achieve compliance and ask the Judge to consider a fine of up to $1,000 per count to encourage compliance. Civil Violation Enforcement Challenges Several issues can make it particularly difficult to effectively and efficiently enforce codes and standards. These issues can create uncertainty or confusion for residents and business owners, causing additional tension to already contentious situations, and can lead to prolonged or unresolved investigations. These issues include: • Standards that are impractical to verify. o Examples: 1) Short-term rentals require owner-occupancy of the dwelling for a minimum of 6 months per year. While an owner must agree to this condition when they receive a business license to operate a short-term rental, it is very difficult for staff to prove they are not occupying the residence for 6 months per year when a complaint is received; 2) Nuisance standard that requires property owners to trim back spreading vegetation 10 feet from property lines is impractical to enforce due to the pervasiveness of this issue throughout the City and the ability of spreading vegetation, such as English ivy and blackberries, to rapidly regrow after being cut back. • Vague standards that require staff interpretation. o Example: Home Occupation business standard that states that the use can't "alter the residential character of the neighborhood." This standard is undefined and open to interpretation, causing confusion for home business operators and giving wide latitude for neighbors to argue a home-based business is affecting the neighborhood. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 11 • Volume of violations and complaints. o Example: The frequency of temporary signs illegally placed in public rights-of-way can be hard to keep up with and gives the appearance that staff is selectively enforcing sign regulations. • Different requirements for the same structure in Building Code vs. Community Development Code. o Example: Accessory structures that are below certain size thresholds do not require a building permit but must still meet zone requirements, such as setbacks and height restrictions. This is confusing and costly to homeowners when they wrongly assume that if a building permit is not required, then zone standards also do not apply. Recommended Code Enforcement-Related Code Amendments While some of the enforcement challenges, above, cannot be entirely avoided, some of the issues could be addressed by code amendments. Staff recommends the following code amendments, which could be addressed as part of routine code maintenance, such as the annual CDC amendments and annual non-CDC code amendments: 1. LOC 34.10.520 Periodic Brush Cutting Required; Exceptions (applies to private property): Eliminate this code to no longer use the civil violation enforcement process to require cutting back of spreading vegetation to 10 feet from the property line. 2. LOC 50.03.004.1.b.ii(1) Home Occupation: Revise home occupation business standards to be clear and objective so that staff have measurable standards they can apply to determine if a business is negatively impacting residential neighborhoods (e.g., limits on outdoor activities and hours of operation, requiring on-site parking for clients or patrons, etc.). 3. LOC 50.03.004.1.b.ii(7) Home Occupation; Short-Term Rentals: Revise short-term rental occupancy standard to strengthen enforceability. 4. LOC 50.09 Enforcement and Penalties: Revise CDC Enforcement and Penalties to strengthen and clarify what constitutes a violation. Currently, the code reads: "Any development which occurs contrary to the provisions of this code or contrary to any permit or approval issued or granted hereunder is hereby declared to be unlawful and a public nuisance, and may be abated." Additional text is needed to say these violations are also civil violations, as defined by LOC § 34.04.105, and enforceable pursuant to LOC Article 34.04. Feedback Requested from the Council To facilitate the discussion at the work session, we invite the Council to consider the following questions: 1. Do you agree with the current approach to code enforcement in terms of the priorities, considerations, and procedures described above? 2. Are there specific types of violations that should be prioritized more or less? Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 12 3. How can we improve our communication and engagement with the community regarding code enforcement? 4. Please provide direction to staff on the recommended code amendments, above. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY 16.1 REDEVELOPMENT AGENCY REPORT O OREGO� Subject: North Anchor Project— Fourth Amendment to the Disposition and Development Agreement Meeting Date: June 18, 2024 Staff Member: Sidaro Sin, Redevelopment Manager Report Date: June 7, 2024 Department: Lake Oswego Redevelopment Agency Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: Approve the fourth amendment to the December 7, 2021 Disposition and Development Agreement for the North Anchor Properties. Recommended Language for Motion: Move to authorize the Executive Director to execute the fourth amendment to the December 7, 2021 Agreement for the Disposition and Development for the North Anchor Properties. Project/ Issue Relates To: NA Issue before Board (Highlight Policy Question): ❑Council Goals/Priorities ❑X Adopted Master Plan(s) ❑Not Applicable ISSUE BEFORE BOARD Should the Lake Oswego Redevelopment Agency (LORA) Board amend the Disposition and Development Agreement (DDA) with Urban Development + Partners (UDP) to allow additional time to reach financial close and begin construction on the project? BACKGROUND On December 7, 2021 LORA entered into a DDA with UDP for the redevelopment of the North Anchor properties located at First Street and B Avenue. Soon thereafter, the health of real Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 estate capital markets began to deteriorate, and UDP worked with their team to modify the project program to improve the financeability of the project components. UDP's current redevelopment proposal includes two components; the first component is an 86-room boutique hotel with a restaurant and spa, and the second component is a 67-unit apartment with approximately 5,200 square feet of ground floor retail. Both components include on and off-street parking. DISCUSSION On June 6, LORA received a request from UDP for (i) a 24-month extension to the deadline to close and begin construction on the residential and hotel components and the final DDA termination date, and (ii) minor changes in the project description (Attachment 1). This is the fourth request by UDP to amend the DDA. The LORA Board has previously approved three amendments to the DDA. The first was in November 2022 for a six-month extension to the financial close on the residential component and the second was in June 2023 for another six-month extension to the residential financial close. While the June 2023 amendment also included an additional $200k in LORA permit fee assistance and a change in hotel operator, the key outcomes of that extension were to allow time for UDP to explore and apply for hotel modifications to the previously-approved development review land use application, and for the City to pursue adopting the Vertical Housing Development Zone (VHDZ) tax abatement program for the North Anchor properties. The third extension was approved in November 2023 to extend the final pre-closing DDA termination date and the final close date to the current deadline of June 28, 2024. If approved, major deadlines for the hotel and residential components to the DDA would include: • Final DDA termination date from June 28, 2024 to June 30, 2026 • Financial close from June 28, 2024 to June 30, 2026 • Commencement of construction from July 8, 2024 to July 8, 2026 Additionally, is it worth noting there would be some minor changes to the overall project description in the DDA to be consistent with UDP's current redevelopment proposal. Overall, there was an increase in the number of hotel rooms, a reduction of the number of on-site hotel parking spaces to "right-size" the parking needs of the hotel, and a slight reduction in the commercial square footage of the ground floor retail space in the apartment buildings. Despite these minor changes, the requirement to provide a minimum of 8 workforce housing units remains. A draft of the DDA amendments is included as Attachment 2. A summary of the current and proposed deadlines is shown below, while Attachment 2 shows how the Schedule of Performance in the DDA will be amended to reflect the new deadlines. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 NORTH ANCHOR PROJECT DDA Schedule Overview 2024 2025 2026 2027 2028 Current Proposed Deadline Extension J FMAMJ J AS 0 N D Jan-Dec June DDA Final Termination Date 6/28/24 6/30/26 Mixed-Use Residential &Hotel Secure Financing/Building Permits Proof of Financial Wherewithal 6/3/24 6/3/26 Financial Closing 6/28/24 6/30/26 Begin Construction 7/8/24 7/8/26 Environmental Review/Remediation 10/29/24 10/30/26 DEQ"No Further Action"Letter Complete Construction(24 months) 1/8/26 6/30/28 As noted in UDP's request, the time extension is needed to overcome the continuing challenging economic conditions in the real estate development capital markets. The extension would allow the time to secure the funding needed to execute the project components. UDP is poised to secure funding, as evidenced in the letter of intent from a prominent local investor on the hotel equity side and from a local lender to provide debt for the apartment project. UDP's efforts remain strong and unwavering despite the challenging economic landscape, and, to date, has invested over $4M into the project. Other significant progress on the project since last summer includes receiving development review approval for the hotel modifications, obtaining term sheets and letters of intent from investors and lenders, nearing completion of agreements to redevelop the site with the Department of Environmental Quality, and a pending partnership with a prominent local investor for the development of the hotel component. While a 24-month extension is being requested, UDP's highest priority is on closing and beginning construction before the deadline. Moving forward, UDP's action plan includes: • Signing a joint venture agreement with the hotel equity partner • Continuing to value engineer the project components and move closer to securing permits for construction • Proceeding with all financial due diligence work to be able to close on the acquisition of the properties RECOMMENDATION Authorize the Executive Director to execute the fourth amendment to the December 7, 2021 Agreement for the Disposition and Development of the North Anchor Properties. ATTACHMENTS 1. UDP's request to amend the Disposition and Development Agreement 2. DRAFT Disposition and Development Agreement Amendments Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 k URBAN DEVELOPMENT PARTNERS June 6, 2024 Martha Bennett Executive Director City of Lake Oswego Redevelopment Agency PO Box 369 Lake Oswego, OR 97034 RE: North Anchor Disposition and Development Agreement Request for Extension Dear Martha, I am writing to respectfully request an amendment to the North Anchor Disposition and Development Agreement ("DDA")to allow UDP additional time to close on the property and start construction and to make minor changes to the project description. As you know, economic conditions continue to be extremely difficult for real estate development and few projects are getting financed. Despite these trying circumstances, we have made great progress since our last LORA meeting. UDP and its equity investors have invested over$4.0 million in the two projects to date, and we have strong interest from several equity and debt providers. We now have a letter of intent from a prominent local investor to provide equity for the hotel project, we have a letter of intent from a local lender to provide debt for the apartment project, and we have strong interest from an investor to provide equity to acquire the apartment land. Acquiring the land and having more time to start construction will provide security needed to raise the remaining equity. Since October of last year, we: • Completed a substantial redesign of the hotel and received approval for our Development Review Modification • Obtained a term sheet and LOI for debt financing for the apartments • Secured a term sheet and progressing toward a formal agreement for equity investment in the hotel from a prominent local investor • Worked with DEQ to develop a Prospective Purchaser Agreement for the gas station / dry cleaner site which is expected to soon be signed • Worked on permitting issues for both projects • Engaged our design team to value engineer and refine both projects • Engaged with over 50 equity investors and over 20 banks to secure funding Page 1 • Presented at the Lake Oswego Chamber of Commerce to further public outreach efforts • Continued our regular meeting cadence with the LORA board We would like to request an adjustment to the DDA allowing twenty-four months to close on the land and start construction. Below shows how some of the significant deadlines in the current DDA would be adjusted: Current Closing Date (apartment & hotel components): June 28, 2024 Revised Closing Date: June 30, 2026 Current Construction Start: July 8, 2024 Revised Construction Start: July 8, 2026 With this time extension, we expect to complete design and permitting on both projects and begin construction. More specifically, we plan to: • Engage new debt broker to obtain debt for the hotel • Complete sign a JV agreement our hotel equity partner • Work in coordination with our partner to raise the additional equity for the hotel • Complete due diligence and close on debt financing for the apartments • Execute a syndication campaign to raise equity for the apartments • Work with our architect, engineers and the city to secure updated permits • Obtain neighbor agreements for construction work • Negotiate and execute construction contracts for both projects • Conduct quarterly meetings with LORA to report progress • Complete the legal and closing process necessary to purchase the land and begin abatement, demolition, and construction on the apartment and hotel projects We would also like to request several changes to the project description in the DDA to better reflect the programs currently contemplated for both projects. Below is a list of the proposed changes. • Hotel Rooms: change from 70-80 keys to at least 80 keys (currently—86 keys proposed) • Hotel Parking: change from not less than 60 spaces to not less than 45 parking spaces (currently—52 stalls proposed) • Apartment Units: change from 60-70 units to at least 60 apartment units (currently—67 units proposed). Please note that the number of affordable units remains unchanged at 10%or at least 8 • Apartment Parking: change from 75-95 spaces to at least 71 parking spaces (currently Page 2 -76 proposed) • Mixed Use Commercial Space: change from 5,500-6,500 square feet of ground floor commercial space to at least 5,000 square feet (currently—5,200 sf proposed) We look forward to a continued strong partnership with the FORA on the North Anchor projects and to bringing them both to fruition for UDP and the community. Sincerely, Eric Cress President Urban Development Partners Page 3 ATTACHMENT 2 FOURTH AMENDMENT TO AGREEMENT FOR THE DISPOSITION AND DEVELOPMENT OF NORTH ANCHOR PROPERTIES, CITY OF LAKE OSWEGO BETWEEN: THE LAKE OSWEGO REDEVELOPMENT AGENCY, the Urban Renewal Agency of the City of Lake Oswego ("LORA") AND: URBAN DEVELOPMENT PARTNERS- NW, an Oregon Limited Partnership ("UDP") EFFECTIVE DATE: June , 2024 RECITALS A. LORA and UDP entered into that certain Agreement for the Disposition and Development of North Anchor Properties, City of Lake Oswego dated December 7, 2021 (the "Original DDA"); that certain Clarification Agreement Related to the Disposition and Development of North Anchor Properties, City of Lake Oswego dated March 14, 2022 (the "Clarification");that certain First Amendment to Disposition and Development of North Anchor Properties, City of Lake Oswego dated November 18, 2022 (the "First Amendment"); that certain Second Amendment to Disposition and Development of North Anchor Properties, City of Lake Oswego dated September 27, 2023 (the "Second Amendment"); and that certain Third Amendment to Disposition and Development of North Anchor Properties,City of Lake Oswego dated December 28, 2023 (the "Third Amendment"). The Original DDA, as modified by the Clarification, First Amendment, Second Amendment, and Third Amendment, is hereinafter referred to as the "DDA." B. LORA and UDP are entering into this Amendment for the purpose of modifying the description of the Project in the DDA and extending certain deadlines, all on the terms and conditions of this Fourth Amendment to Agreement for the Disposition and Development of North Anchor Properties, City of Lake Oswego (this "Amendment"). Capitalized terms used but not defined in this Amendment shall have the meanings given to such terms in the DDA. AGREEMENT NOW,THEREFORE, each of the Parties to this Amendment, in consideration of the foregoing recitals,the following promises and the agreements of the other Party, and other valuable consideration, the receipt and adequacy of which are hereby acknowledged, covenant and agree as follows: 1. DEFINITION OF PROJECT. Section 7.1 of the DDA is deleted in its entirety and replaced with the following: 7.1 Description of Project. The Project will consist of two components to be constructed by UDP on the North Anchor Properties as described in subsections 7.1.1 and 7.1.2 below and as shown on the Land Use Application Plans, and the approved Land Use Approved Plans. 7.1.1 Hotel Component. The"Hotel Component"will consist of at least eighty(80)keys in a high-quality boutique hotel constructed on the West Property,together with Page 1-FOURTH AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT/NORTH ANCHOR PROPERTIES not less than forty (40) parking spaces, including both on-street and off-street spaces, and with food service on the hotel property. 7.1.2 Mixed Use Component.The"Mixed Use Component"will consist of two buildings which will include: 7.1.2.1 At least sixty (60) residential apartment units. At least ten percent (10%) of the units, but not fewer than eight (8) units, will be restricted to Workforce Housing for a period of fifty(50)years from the date of the applicable TCO (the "Compliance Period"). As used in this Agreement, "Workforce Housing" means residential units that are continuously rented, leased or available for lease to persons or households whose incomes are eighty percent (80%) or less of area median family income as published annually by the U.S. Department of Housing and Urban Development for the Portland- Vancouver-Hillsboro MSA("MFI").Tenants must meet the foregoing affordability requirements upon commencement of their applicable leases but may exceed the affordability requirement by up to twenty percent (20%) during the Compliance Period (i.e., tenants who qualify for eighty percent (80%) of MFI at execution of a lease may earn up to one hundred percent (100%) of MFI while living in the Workforce Housing unit). UDP shall submit to LORA an annual certification of rental and household incomes for each of the Workforce Housing Units. 7.1.2.2 At least seventy one (71) parking spaces, including both on-street and off-street spaces; and 7.1.2.3 At least five thousand (5,000) square feet of ground floor commercial space with uses limited to those listed on Schedule 8.3.2.1. The commercial space on the corner of First Avenue and B Street shall be further limited to retail, restaurants, or food and beverage service, except as provided by Section 8.3.2. 2. UPDATED LAND USE APPLICATION PLANS. Schedule 1.22 (Land Use Application Plans) attached to the DDA is deleted in its entirety and replaced with Schedule 1.22(Land Use Application Plans)attached to this Amendment. Recital G. of the DDA is amended to correct the reference to Schedule 1.22 (rather than Schedule 1.21, a typographical error). 3. UPDATED SCHEDULE.Schedule 1.35 (Schedule of Performance)attached to the DDA is deleted in its entirety and replaced with Schedule 1.35 (Schedule of Performance) attached to this Amendment. 4. FINAL TERMINATION DATE.The Final Termination Date, as defined and set forth in Section 2.11 of the DDA, is hereby extended to June 30, 2026. 5. MISCELLANEOUS PROVISIONS. 3.1 Effect. This Amendment modifies and amends the DDA, and the terms and provisions hereof shall supersede and control over any contrary or conflicting terms and provisions set forth in the Page 2-FOURTH AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT/NORTH ANCHOR PROPERTIES DDA. The DDA, as amended by this Amendment, remains in full force and effect and is hereby ratified by each of the Parties. 3.2 Execution. This Amendment may be executed in multiple counterparts, each of which, when assembled to include a signature by each Party, shall constitute one complete and fully executed document. Counterparts to this Amendment may be executed and delivered by e-mail or electronic means (e.g., DocuSign). 3.3 Headings. Section headings contained herein are for convenience or reference only and shall not govern the interpretation of any of the provisions contained herein. (Remainder of page intentionally left blank;Signatures on following page.) Page 3-FOURTH AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT/NORTH ANCHOR PROPERTIES IN WITNESS WHEREOF,the Parties have executed this Amendment as of the Effective Date. UDP: LORA: URBAN DEVELOPMENT PARTNERS — NW, an LAKE OSWEGO REDEVELOPMENT AGENCY, an Oregon Limited Partnership urban renewal agency of the City of Lake Oswego By: AES Interests, Inc., an Oregon corporation Its: General Partner By: Martha Bennett, Executive Director By: Daniel Eric Cress, President APPROVED AS TO FORM: Ellen Osoinach, LORA Counsel {01426170;7}} Signature Page—FOURTH AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT/NORTH ANCHOR PROPERTIES SCHEDULE 1.22 Land Use Application Plans 1. E-001-Cover 2021-06-30 26. E-026- Parcels B & C- Exterior Material 2. E-002-Table of Contents 2021-06-30 Palette 2021-06-30 3. E-003-E-Exhibits Cover/Graphics 2021- 27. E-027 - Parcels B & C-View from 1st St. 06-30 and B Ave. 2021-06-30 4. E-004- County Assessor's Map 2023-11- 28. E-028 - Parcels B & C - SW Retail 13 Courtyard 2021-06-30 5. E-005-Vicinity Plan 2021-06-30 29. E-029 - Parcels B & C - View from State 6. E-006-Site Connectivity Diagrams 2021- St. and B. Ave. 2021-06-30 06-30 30. E-030 - Parcels B & C - Typical B Ave. 7. E-007-Proposed Site Plan 2023-11-13 Frontage 2021-06-30 8. E-008 - Context Analysis - Lake Oswego 31. E-031-Parcel C-B Ave. Courtyard 2021- Character 2021-06-30 06-30 9. E-009 - Context Analysis - Downtown 32. E-032-Parcel C SE Retail Courtyard 2021- Architecture 2021-06-30 06-30 10. E-010-Parcel A-Inspiration 2021-06-30 33. E-033 - Parcel C - State St. Frontage 11. E-011 - Parcel A - Exterior Material 2021-06-30 Palette 2021-06-30 34. E-034 - Parcels B & C - Facade Vignette 12. E-012-Parcel A-View from 1st St.and B 2021-06-30 Ave. 2023-11-13 35. E-035 - Parcels B & C - Facade Vignette 13. E-013-Parcel A-View of Entry 2023-11- 2021-06-30 13 36. E-036-Parcels B&C-Lake Oswego Style 14. E-014-Parcel A-Southeast Aerial 2021- 2021-06-30 06-30 37. E-037-Parcels B&C-Lake Oswego Style 15. E-015-Parcel A-Northeast Aerial 2021- 2021-06-30 06-30 38. E-038-Parcels B&C-Lake Oswego Style 16. E-016-Parcel A-Northwest Aerial 2023- 2021-06-30 11-13 39. E-039 - Parcel A - Existing Conditions 17. E-017-Parcel A-Southwest Aerial 2021- ALTA Survey 2023-11-13 06-30 40. E-040-Parcels B&C-Existing Conditions 18. E-018 - Parcel A - View from Alley ALTA Survey 2021-06-30 Looking East through North Setback 41. E-041- Paving and Street Improvements 2021-6-30 Plan 2023-11-13 19. E-019-Facade Vignettes 2023-11-13 42. E-042-Street Sections 2021-09-01 20. E-020 - Parcel A - Lake Oswego Style 43. E-043-Parcel A Sight Distance Plan 2021- 2021-06-30 06-30 21. E-021 - Parcel A - Lake Oswego Style 44. E-044-Parcel B Sight Distance Plan 2021- 2021-06-30 06-30 22. E-022 - Parcel A - Lake Oswego Style 45. E-045 - Utilities and Stormwater 2021-06-30 Improvements Plan 2023-11-13 23. E-023 - Parcel A - Lake Oswego Style - 46. E-046 - Parcel A - Landscape Site Plan Asymmetry and Projection 2021-06-30 2021-06-30 24. E-024- Parcel A- DRDD Elements 2021- 47. E-047-Parcel B&C-Landscape Site Plan 06-30 2021-06-30 25. E-025 - Parcel A - DRDD Elements - 48. E-048 - Parcel A - Materials Plan 2021- Cornice 2021-06-30 06-30 {01426170;7} 49. E-049 - Parcel B & C - Materials Plan Elevation 2023-11-13 2021-06-30 76. E-070.1 - Parcel A - North Elevation 50. E-050-Site Furnishings 2021-06-30 (Comparative) 2023-11-13 51. E-051-Parcel A-Planting Plan 2021-06- 77. E-070.2 - Parcel A - Proposed North 30 Elevation 2023-11-13 52. E-052-Parcel B&C-Planting Plan 2021- 78. E-071 - Parcel B - West Elevation 2021- 06-30 06-30 53. E-053-Plant Species 2021-06-30 79. E-072 - Parcel B- South Elevation 2021- 54. E-054-Plant Species 2021-06-30 09-01 55. E-055-Plant Species 2021-06-30 80. E-073-Parcel B-East Elevation 2021-09- 56. E-056-Plant Species 2021-06-30 01 57. E-057.1 - Parcel A - Level 1 Floor Plan 81. E-074- Parcel B- North Elevation 2021- 2023-11-13 06-30 58. E-057.2 - Parcel A - Level 1.5 Floor Plan 82. E-075-Parcel C-East Elevation 2021-06- 2023-11-13 30 59. E-057.3 - Parcel A - Level 2 Floor Plan 83. E-076 - Parcel C- South Elevation 2021- 2023-11-13 06-30 60. E-058.1 - Parcel A - Level 3 Floor Plan 84. E-077 - Parcel C - West Elevation 2021- 2023-11-13 09-01 61. E-058.2 - Parcel A - Level 4 Floor Plan 85. E-078 - Parcel C- North Elevation 2021- 2023-11-13 06-30 62. E-059-Parcel A-Level 5 Floor Plan 2023- 86. E-079.1 - Parcel A - Building Sections 11-13 (Comparative) 2023-11-13 63. E-060-Parcels B&C-Level P1 Basement 87. E-079.2 - Parcel A - Proposed Building Plan 2021-09-01 Section 2023-11-13 64. E-061-Parcels B & C-Level 1 Floor Plan 88. E-080-Parcel A-Building Sections 2021- 2021-09-01 06-30 65. E-062-Parcels B &C-Level 2 Floor Plan 89. E-081- Parcel B- Building Section 2021- 2021-09-01 06-30 66. E-063-Parcels B &C-Level 3 Floor Plan 90. E-082 - Parcel B- Building Section 2021- 2021-09-01 06-30 67. E-064-Parcels B &C-Level 4 Floor Plan 91. E-083 - Parcel B- Building Section 2021- 2021-09-01 06-30 68. E-065-Parcels B &C-Level 5 Floor Plan 92. E-084- Parcel C- Building Section 2021- 2021-09-01 06-30 69. E-066 - Parcels B & C - Roof Plan 2021- 93. E-085- Parcel C- Building Section 2021- 09-01 06-30 70. E-067.1 - Parcel A - East Elevation 94. E-086.1 - Parcel A- South Façade Niche (Comparative) 2023-11-13 (Comparative) 2023-11-13 71. E-067.2 - Parcel A - Proposed East 95. E-086.2 - Parcel A - Proposed South Elevation 2023-11-13 Facade Niche 2023-11-13 72. E-068.1 - Parcel A - South Elevation 96. E-087 - Parcel A - Bike Parking Niche (Comparative) 2023-11-13 2021-06-30 73. E-068.2 - Parcel A - Proposed South 97. E-088-Parcel A-South Arch Entry 2021- Elevation 2023-11-13 06-30 74. E-069.1 - Parcel A - West Elevation 98. E-089-Parcel A- East Arch 2021-06-30 (Comparative) 2023-11-13 99. E-090 - Parcel A TYP East Facade Niche 75. E-069.2 - Parcel A - Proposed West 2021-06-30 {01426170;7} 100. E-091 - Parcel A TYP East Facade Niche 127. E-118-Product Data 2021-06-30 2021-06-30 128. E-119-Product Data 2021-06-30 101. E-092 - Parcel B - 1st Street Treatment 129. E-120-Product Data 2021-06-30 2021-06-30 130. E-121-Lighting Product Data 2021-06-30 102. E-093 - Parcel B - 1st Street Corner 131. E-122-Lighting Product Data 2021-06-30 Courtyard 2021-06-30 132. E-123-Lighting Product Data 2021-06-30 103. E-094-Parcels B& C-Typical Storefront 133. E-124-Lighting Product Data 2021-06-30 Treatment 2021-06-30 134. E-125-Lighting Product Data 2021-06-30 104. E-095-Parcels B&C-Typical Retail Entry 135. E-126-Lighting Product Data 2021-06-30 2021-06-30 136. E-127- Parcel A- F.A.R. Diagrams 2023- 105. E-096 - Parcel C - Central Courtyard 11-13 2021-06-30 137. E-128- Parcel B - F.A.R. Diagrams 2021- 106. E-097- Parcels B & C-Corner Courtyard 06-30 2021-06-30 138. E-129 - Parcel C- F.A.R. Diagrams 2021- 107. E-098 - Parcels B & C - State Street 06-30 Planted Wall 2021-06-30 139. E-130 - Parcel A- Required Landscaping 108. E-099 - Street Lighting Plan 2021-06-30 2023-11-13 2021-06-30 140. E-131 - Parcel B - Required Landscaping 109. E-100 - Street Calculations - 6000 2021-06-30 Lumens 2021-06-30 141. E-132 - Parcel C- Required Landscaping 110. E-101 - Parcel B & C - Level 1 Lighting 2021-06-30 2021-06-30 142. E-133 - Parcel A- Required Bike Parking 111. E-102 - Parcel B & C - Level 2 Lighting 2021-06-30 2021-06-30 143. E-134-Parcel A-Parking 2023-11-13 112. E-103-Parcel A Level 1 Lighting 2021-06- 144. E-135-Parcel B&C-Parking 2021-09-01 30 145. E-136 - Parcel B & C - Required Bike 113. E-104-Parcel A Level 4 Lighting 2021-06- Parking 2021-06-30 30 146. E-137 - Parcel A - Storefront Character 114. E-105 - Parcel A- Level 5 Lighting 2021- Diagrams 2023-11-13 06-30 147. E-138 - Parcel B - Storefront Character 115. E-106 - Intentionally Left Blank 2021-06- Diagrams 2021-09-01 30 148. E-139 - Parcel C - Storefront Character 116. E-107 - Parcels B & C - Building Details Diagrams 2021-09-01 2021-06-30 149. E-140 - Parcel A - Hotel Development 117. E-108 - Parcels B & C - Building Details Summary 2023-11-13 2021-06-30 150. E-141 - Parcels B & C - Multifamily 118. E-109 - Parcels B & C - Building Details Development Summary 2021-06-30 2021-06-30 151. E-142-Parcel C sight Distance Plan 2021- 119. E-110 - Parcels B & C - Building Details 06-30 2021-06-30 152. E-143 - B Avenue Alley Sight Distance 120. E-111-Product Data 2021-06-30 Plan 2021-06-30 121. E-112-Product Data 2021-06-30 153. E-144 - B Avenue Alley sight Distance 122. E-113-Product Data 2021-06-30 Plan 2021-06-30 123. E-114-Product Data 2021-06-30 154. E-145-Tree Removal and Mitigation Plan 124. E-115-Product Data 2021-06-30 2021-09-01 125. E-116-Product Data 2021-06-30 155. E-146 - Tree Removal and Mitigation 126. E-117-Product Data 2021-06-30 Tables 2021-09-01 {01426170;7} SCHEDULE 1.35 Schedule of Performance- North Anchor Project DDA Ref. Task Deadline 7-Dec-2021 Execute DDA("Effective Date") Completed 7-Dec-2021 2.8.2.4 City to issue 90-day lease termination notice(s) Completed BOLT Completed 12-Dec-2021 2.8.1.7 Submission of BOLT predetermination request Completed 12-Mar-2022 BOLT review of predetermination letter request Completed Both parties satisfaction of content of BOLT pre- 22-Mar-2022 determination letter Completed Notice of Number of Transactions & Earnest Money UDP to provide written notice of election to execute Phased 11-Dec-2022 _ 2.2 Conveyance of Properties Completed 9-Dec-2021 2.4 UDP makes Earnest Money deposit Completed 2.11 Final Termination Date 30-Jun-2026 Schedule of Performance to Close on First Project Component (Multi-Family/Retail) Note only-Begin Construction MF Parcel B Note only-Begin Construction MF Parcel C Title LORA to cause Title Company to provide updated preliminary 17-Dec-2021 2.5 title report (with copies of all special exceptions)to UDP Completed Schedule of Performance for First Component Close UDP submits Land Use Approved Plans and CDs to LORA ED (for 8-Dec-21 2.8.3.2 consistency with Land Use Application Plans) Completed UDP provides evidence of funding capacity to meet prevailing 2.8.3.3 wage indemnity obligation to LORA ED 3-Jun-2026 UDP provides evidence of necessary funding commitments to 2.8.3.6 complete the project, including budgets and proformas 3-Jun-2026 {01426170;7} Closing UDP to close on acquisition of property for first Project 2.7 Component 30-Jun-2026 2.7 UDP to Commence Construction on first Project Component 08-Jul-2026 Post-Closing Activities Environmental Activities UDP to complete all work set forth in DEQ-approved HMP 3.1.1.1 and CMMP 08-Oct-2026 3.1.1.1 UDP to obtain "No Further Action" letter from DEQ 31-Dec-2026 Construction UDP to complete construction of First Project Component 7.2 (including associated public improvements) 30-Jun-2028 LORA to provide UDP with design specifications for Right-of- 31-Mar-2022 7.6 Way improvements Completed 28-Feb-2022 7.7 UDP to submit complete Land Use Application Plans to LORA Completed Schedule of Performance to Close on Second Project 2.7 Component(Hotel) Title LORA to cause Title Company to provide updated preliminary 17-Dec-2021 2.5 title report (with copies of all special exceptions)to UDP Completed Schedule of Performance for Second Component Close UDP submits Land Use Approved Plans and CDs to LORA ED (for 8-Dec-2022 2.8.3.2 consistency with Land Use Application Plans) Completed UDP provides evidence of funding capacity to meet prevailing 2.8.3.3 wage indemnity obligation to LORA ED 03-Jun-2026 UDP provides evidence of necessary funding commitments to 2.8.3.6 complete the project, including budgets and proformas 03-Jun-2026 Closing UDP to close on acquisition of property for second Project 2.7 Component 30-Jun-2026 2.7 UDP to Commence Construction on second Project Component 08-Jul-2026 Post-Closing Activities Construction UDP to complete construction of Second Project Component 7.2 (including associated public improvements) 30-Jun-2028 {01426170;7} 16.2 o,.� E 0s4a REDEVELOPMENT AGENCY REPORT N` O OSEGO\ Subject: Approval of Lake Oswego Redevelopment Agency (LORA) Board Meeting Minutes Meeting Date: June 18, 2024 Staff Member: Kari Linder, Recording Secretary Report Date: June 10, 2024 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Board Direction ❑X 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 EAdopted Master Plan(s) ❑X Not Applicable ATTACHMENTS 1. February 20, 2024, Draft Regular LORA Meeting Minutes Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 LAKE OSWEGO REDEVELOPMENT AGENCY MEETING MINUTES February 20, 2024 aRrr�o� 1. CALL TO ORDER, REDEVELOPMENT AGENCY (LORA) Chair Buck called the regular Lake Oswego Redevelopment Agency (LORA) meeting to order at 3:01 p.m. on Tuesday, February 20, 2024. The meeting was held both virtually via video conferencing and in-person in the Council Chamber at City Hall, 380 A Avenue. 2. ROLL CALL Present: Chair Buck and Board Members Mboup, Rapf, Afghan, Corrigan (via video conferencing), Wendland, and Verdick (via video conferencing) Staff Present: Martha Bennett, Executive Director; Ellen Osoinach, LORA Counsel; Kari Linder, Recording Secretary; Sidaro Sin, Redevelopment Manager; Shawn Cross, Treasurer Others Present: Elaine Howard, Principal at Elaine Howard Consulting; Nick Popenuk, Public Finance Consultant with Tiberius Solutions 3. PLEDGE OF ALLEGIANCE Chair Buck led the board in the Pledge of Allegiance. 4. BOARD BUSINESS 4.1 Urban Renewal Plans and Foothills Area Update. Sidaro Sin, Redevelopment Manager, presented via PowerPoint an overview of the Lake Oswego Redevelopment Agency, its goals, and the background of the City's two urban renewal areas (URAs), reviewing the proposed processes to close the East End URA, update the Lake Grove URA, and use urban renewal to support Foothills Redevelopment. Staff sought the Board's direction and input on the plan. Elaine Howard, Principal, Elaine Howard Consulting, continued the presentation with details on the substantial amendment process to increase the maximum indebtedness, required public input, formal review, and concurrence issues, and an estimated timeline for the amendment process. Redevelopment Agency Meeting Minutes Page 1 of 6 February 20, 2024 Nick Popenuk, Public Finance Consultant, Tiberius Solutions, resumed the presentation and provided an explanation of urban renewal finance, forecasted revenue and debt service, and projected revenues and expenditures for an amended Lake Grove plan. He also detailed the projected maximum indebtedness limits and the impact to taxing districts. Mr. Sin noted the projects presented were based on the existing Lake Grove boundary and the calculations did not consider an expansion of the district. When the district was first created in 2012, it was maxed out, but some properties annexed along Boones Ferry that could increase the boundary. Board Member Wendland asked what interest rates were used. Mr. Popenuk replied he worked with PFM Financial Advisors and used current market rates for municipal debts for the analysis, which was run about a month ago. The interest rate used was about 4 percent, though PFM ran other scenarios with the interest rate 1 percent higher or lower, shown onscreen as 100 basis points higher, about a 5 percent interest rate for the debt. Mr. Sin clarified that he believed the current interest rates were between 3 and 3.5 percent while the calculations in the presentation were about 4 percent. The rates were higher because the old debt was from 2018. Mr. Popenuk stated that one had to determine how much growth in property values would have occurred in the area with or without investments the City planned to make, which could be a challenging effort. Anecdotally, the Boones Ferry project was a beautiful road product. A lot of new construction happened along Boones Ferry, so it seemed very clear much of the new investment happened at least partially as a result of the investments the City made. The calculations reflected the total amount of revenue. Board Member Wendland noted that while the School District would not necessarily lose any money by giving up the funds, it would lose money in the macro because the State of Oregon would be missing the $45 million out of the total budget. Mr. Popenuk agreed that was an argument.When the State Legislature set the amount of per-pupil funding, it did not look at all the urban renewal areas across the state and decide those areas were taking some amount of money out of the school system so it would reduce per-student funding by an equal amount. There was not a direct connection. Someone could look at all the different property tax abatement programs and urban renewal programs that collectively whittle away local school revenues and argue that if those dollars were not being whittled away, the Legislature could fund schools more. Ms. Howard noted the Legislature had other funds besides permanent rate property tax funds, and the Legislature was able to access more of those funds to make up for urban renewal funds every two years when the budget was established. If the legislature did not have enough funding when it established its per pupil rates, it looked to other funding sources for the school fund. Board Member Wendland understood the money was taken from different places, but in the aggregate, it was still less money. It was not a problem, but the City needed to be transparent. Executive Director Bennett agreed, noting part of the theory was that good urban renewal resulted in job creation which increased state income tax. Board Member Wendland noted some constituents within the community believed urban renewal costs, but it was actually a good program that did not hurt school districts. Mr. Popenuk said all the foregone revenues were shown to be completely transparent with the caveat that there was not a direct connection between local school taxes and the actual amount of spending in the classroom. It was not that there was no impact, it was that there was no direct impact. Mr. Popenuk continued the presentation reviewing the financial conclusions for the Lake Grove Village Center proposed amendment: the impending revenue sharing would limit the growth in Redevelopment Agency Meeting Minutes Page 2 of 6 February 20, 2024 annual Tax Incremental Financing (TIF) revenues going forward. New debt that could be supported by the remaining cash flow, combined with existing fund balance and surplus TIF revenue, had the estimated ability to fund $51 million in future projects with a $46 million increase in maximum indebtedness. Chair Buck asked about the factors that would tip Lake Oswego into the revenue sharing scenario. Mr. Popenuk clarified revenue sharing was based on annual revenue collections as a percentage of original maximum indebtedness. The original maximum indebtedness was $36 million. Once the City received 10 percent of that per year, it had to start sharing a percentage- based amount of the growth above that level. The City was at a little over $3 million in revenue right now and it would not take much more to reach the$3.6 million threshold. Once Lake Oswego realized 12.5 percent of the total maximum indebtedness on an annual basis, around $4.5 million, it was a hard cap, and the City could not collect more than that per year. There was some unclear language in statute as to whether that was supposed to be $4.5 million the assessor imposed or $4.5 million the City received—a subtle distinction but a difference of a couple hundred thousand dollars per year. Before Lake Oswego got to that point, the City's Attorney would want to weigh in and have a conversation with the Assessor. Mr. Popenuk clarified the City had not hit that point for the East End URA. Most URAs only hit the cap if the maximum indebtedness was increased by a significant amount and the URA was around for longer than planned. If Lake Oswego did not do the amendment, it would be close to hitting the maximum indebtedness and closing things down and it would not be an issue. Mr. Sin added that he believed revenue sharing came online in 2012. Chair Buck noted it was not applicable to the East End. Board Member Mboup asked what would happen if one of the impacted districts refused the proposal. Ms. Howard replied the City had to get to 75 percent concurrence of its taxing districts to agree to the increase of maximum indebtedness. That 75 percent could be reached through a combination detailed in three different scenarios outlined in the report. The easiest scenario would be if the County approved, but sometimes Clackamas County did not like urban renewal. Mr. Sin stated if the Board directed Staff to move forward with the proposal, Staff would return in a study session to present more details about the TIF revenue generation, project scopes, and a schedule. If the process began within a few months, it could be finished by the end of 2024 or early 2025. The process would include engagement with stakeholders and the community, as well as different funding strategies, such as Local Improvement Districts or SDCs, if the projects exceeded TIF revenue. Mr. Sin resumed the presentation and provided details on the two-step plan to update the revised Foothills Framework Plan and prepare a new urban renewal plan for the Foothills area. Ms. Howard continued, detailing the steps needed to adopt a Foothills Urban Renewal District and a potential timeline for the process. Mr. Popenuk provided a revenue projection for the Foothills area based on three different boundary options and three different potential growth rates, as well as forecasted revenue, potential capacity, and impacts to taxing districts. Only permanent rate taxes would be impacted and there was no direct impact on school funding. The project would transform vacant area in Foothills into a higher density product that created tens of millions or hundreds of millions of dollars of new assessed value. That value would be paid into the local option levy that would generate increased revenue for the School District; that money would go into the classroom and was not subject to the state/school equalization formula. There were Redevelopment Agency Meeting Minutes Page 3 of 6 February 20, 2024 positives for the School District as well as the Construction Excise Tax. In addition, the income tax generated supported state revenues so indirectly went into the School Fund. Board Member Afghan asked if there was an advantage or disadvantage to including the wastewater facility in the Foothills URA. Mr. Sin replied keeping the wastewater facility in the URA would be an advantage. As a government-owned property, the wastewater treatment plant could not generate TIF, but the plant could expand the district in the future because currently, there was a 20 percent cap on how much more the district could be expanded. The six-acre wastewater facility could add another 1.2-acre expansion to the URA. Board Member Wendland asked why the district did not include the apartments. Executive Director Bennett clarified the map on display was the existing Foothills district. The apartments Board Member Wendland referenced were in the current East End district and not shown. Mr. Sin added that the map displayed the adopted Foothills URA. Staff ran three other scenarios that included the Oswego Point Apartments. Other scenarios expanded the district a bit into the East End to determine whether projects not completed in the East End could be included in Foothills. The displayed map showed the most conservative scenario. Board Member Wendland asked if the City could use any of the 2012 work done on the Foothills district. Ms. Howard replied the 2012 plan was based on a much different type of development and a streetcar that would provide transportation to much denser development than what would be proposed now. A relook at the framework would include a discussion about what type of development could occur in Foothills given transportation access. Mr. Sin clarified the final adopted 2012 plan excluded the transit line connection. There were about $55 million worth of improvements in the urban renewal plan, $43 million of which came from tax increment revenue, the balance came from SDCs and other utility fees. Moving the wastewater treatment plant gave the City an opportunity to look for some efficiencies in the transportation system. The previous plan laid a grid over the system, which had a lot of infrastructure implications. If the plan was more organic and used the existing transportation system, it could reduce the number of improvements that the urban renewal plan would be paying for. Board Member Wendland asked about the four-year process. Mr. Sin replied that if the City went through the ODOT TGM Grant process, negotiations about the scope of work could take up to a year. The Metro process was more streamlined and could take between 5 to 6 months. The planning itself would take about 18 months to complete. The City had information on the area from its 2012 work and a 2004 completed TGM grant. The four-year estimate included everything from submittal to adoption. Board Member Wendland expressed concerns about the timeframe, and noted the City had housing goals it was supposed to meet. Inflation meant by the time the City got through the process, it could be 10 years in the future and at that point$50 million would not be a lot of money. Chair Buck commented there were good concept elements in the 2012 plan, such as connectivity, which would still be relevant today and interest the community. So much of the proposal was difficult while the City was still in the midst of this wastewater treatment plant project; seeing that forward first was critical. Board Member Wendland inquired whether it would be four years before the City could have private development come in and start their process. Mr. Sin replied that was the timeline if the Redevelopment Agency Meeting Minutes Page 4 of 6 February 20, 2024 City moved through an updated plan. Chair Buck noted the City had to complete the wastewater project and then reignite the community engagement process on the framework plan, and take that into the creation urban renewal district, which could be a few years out. Board Member Wendland commented that Intel could build a plant in 18 months or two years, and those were multi-billion-dollar projects. While those projects were on private lands, Intel still had to go through a process. It could be 10 years before something would be done. Executive Director Bennett stated the water and road infrastructure the City of Hillsboro put into place took decades to make that ground ready for Intel and that was how Lake Oswego needed to look at this; the City was making the ground ready for the development it wanted to see. Realistically, the City was still four years away from completing the wastewater plant and if it tried to do too much, none of it would be done well. Chair Buck added the old site had to be mitigated. Executive Director Bennett added the transportation planning required would be significant. The old idea to punch a second street through the public storage was unaffordable, and its idea of transit was not realistic. The old plan would provide ideas, goals, aspirations, and a vision but it would not provide the actual investments that needed to be made. Chair Buck said there were limiting factors in the location. Board Member Afghan agreed four years was a long time, but the City needed to see an integrated plan. The duration could be shorter. Mr. Sin recapped key points of the presentation, noting Staff would return with resolution to close the East End URA, look to move forward on the Lake Grove URA with some in-depth planning at an upcoming study session and to initiate and streamline the Foothills URA process. Chair Buck stated he had seen the success of urban renewal in Lake Oswego, noting the success with downtown really shaped the community. When the City went forward with the Lake Grove Urban Renewal Area initially, it was not sure it would produce the revenue needed to do a small part of the road project, but the area had brought about a lot of change and investment. The kinds of projects proposed for Lake Grove and Foothills were the type that would produce a big return for the community, keep the community moving forward, and continue outside private investment in the community. The projects aligned with the goal and were easy for the City to sell because of the great return on foregone revenue. While it was difficult to know what downtown would be without urban renewal, it would not be what it was today, and the City never would have done the road project in Lake Grove. Once the road project was in, parcels redeveloped to higher and better use which helped the City reach its other goals in terms of housing. Both the proposed URAs provided opportunities for the City to include some housing element. The downtown had produced housing out of urban renewal, but the City had identified a wider variety through the Housing Needs Analysis and urban renewal would be a great tool to produce housing. 4.2 Approval of LORA Meeting Minutes. November 7, 2023, Draft Regular LORA Meeting Minutes November 21, 2023, Draft Regular LORA Meeting Minutes Board Member Mboup moved to approve the LORA meeting minutes as written. Board Member Wendland seconded the motion. A voice vote was held, and the motion passed, with Chair Buck and Board Members Mboup, Rapf, Corrigan, Afghan, Wendland, and Verdick voting `aye', (7-0). Redevelopment Agency Meeting Minutes Page 5 of 6 February 20, 2024 5. ADJOURNMENT, REDVELOPMENT AGENCY (LORA) Chair Buck adjourned the LORA meeting at 3:58 p.m. Respectfully submitted, Kari Linder, Recording Secretary Approved by the LORA Board on {insert approval date}. Joseph M. Buck, Chair Redevelopment Agency Meeting Minutes Page 6 of 6 February 20, 2024 16.3 o,.� E 0s4a REDEVELOPMENT AGENCY REPORT N` O OREGO� Subject: LORA Resolution 24-01, Approving Appointments to the Lake Oswego Redevelopment Agency (LORA) Budget Committee Meeting Date: June 18, 2024 Staff Member: Quin Brunner, Management Analyst Report Date: June 10, 2024 Department: Executive Director's Office Action Required Advisory Board/Commission Recommendation ❑X Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Adopt LORA Resolution 24-01. Recommended Language for Motion: Move to adopt LORA Resolution 24-01. Project/ Issue Relates To: Boards and Commissions Annual Recruitment Issue before LORA Board (Highlight Policy Question): ❑Council Goals/Priorities EAdopted Master Plan(s) ❑S Not Applicable BACKGROUND Between May 14th and June 15t, members of the Budget Committee Search Committee reviewed applications and interviewed candidates who expressed interest in serving on the Budget Committee. Concurrently, ten other search committees reviewed candidates for the City's other Advisory Boards and Commissions. From a pool of 90 total applicants for all of the City's Boards and Commissions, five identified the Budget Committee as their first choice to serve on. Two candidates were recommended for four-year appointments to the Budget Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 Committee and two were recommended for one-year appointments as alternates. One of the candidates who was offered an alternate position decided to decline the appointment. DISCUSSION The Budget Committee Search Committee consisted of LORA Board Chair Joe Buck, LORA Board Member Ali Afghan, Budget Committee Chair Elisabeth Zeller, DEI Advisory Board Member Phyllis Kauffman, and Assistant Treasurer Brad Stevens (non-voting). The Budget Committee Search Committee recommended Carrie Love and Rick Ahlander for four-year appointments to the Budget Committee and Daniel Hein and Shannon Grindy for one-year appointments as alternates. (Shannon Grindy declined the appointment offer.) Members of the City Budget Committee also serve as members of the LORA Budget Committee. RECOMMENDATION Adopt LORA Resolution 24-01. ATTACHMENTS 1. LORA Resolution 24-01. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 LORA RESOLUTION 24-01 A RESOLUTION OF THE LAKE OSWEGO REDEVELOPMENT AGENCY(LORA) MAKING APPOINTMENTS TO THE LORA BUDGET COMMITTEE. WHEREAS, a Search Committee consisting of LORA Board Chair Joe Buck, LORA Board Member Ali Afghan, Budget Committee Chair Elisabeth Zeller, DEI Advisory Board Member Phyllis Kaufman, and Assistant Treasurer Brad Stevens evaluated applications and conducted interviews between May 14th and June 1st; and WHEREAS, the Search Committee recommended Carrie Love and Rick Ahlander be appointed to the Budget Committee for four-year terms expiring June 30, 2028 and Daniel Hein as an alternate for a one-year term expiring June 30, 2025; and WHEREAS, members of the City Budget Committee also serve as members of the LORA Budget Committee; NOW, THEREFORE, BE IT RESOLVED, that the members of the City of Lake Oswego Redevelopment Agency approve Chair Buck's appointment of Carrie Love and Rick Ahlander to four-year terms on the LORA Budget Committee and Daniel Hein to a one-year term as an alternate. Section 1. Effective Date. This Resolution shall take effect on July 1, 2024. Adopted by the Lake Oswego Redevelopment Agency Board at a meeting held on the 18th day of June, 2024. AYES: NOES: EXCUSED: ABSTAIN: Joseph M. Buck, Chair ATTEST: Kari Linder, Recording Secretary APPROVED AS TO FORM: Ellen Osoinach, LORA Counsel LORA Resolution 24-01 Page 1 of 1