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Agenda Item - 2024-07-16 - Number 06.6 - Approval of Meeting Minutes 6.6 F °� COUNCIL REPORT � o OREGO\-\ Subject: Approval of City Council Meeting Minutes Meeting Date: July 16, 2024 Staff Member: Kari Linder, City Recorder Report Date: July 1, 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: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Approve minutes as written. Recommended Language for Motion: Move to approve minutes as written. Project/ Issue Relates To: NA Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable ATTACHMENTS 1. May 7, 2024, Draft Regular Meeting Minutes 2. May 21, 2024, Draft Regular Meeting Minutes 3. June 4, 2024, Draft Regular Meeting Minutes Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 0.*To p4 CITY COUNCIL REGULAR MEETING f MINUTES May 7, 2024 aRrr�o� 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 5:33 p.m. on Tuesday, May 7, 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: Mayor Buck, Councilors Verdick, Mboup, Rapf, Corrigan, Afghan and Wendland Staff Present: Martha Bennett, City Manager; Ellen Osoinach, City Attorney; Kari Linder, City Recorder; Melissa Kelly, Library Director; Andrea Milano, Youth and Technical Services Manager; Allison Arnold, Adult Services Manager; Stefan Broadus, Director of Special Projects; Jessica Numanoglu, Community Development Director (via video conferencing) School Board: Brian Bills, Board Chair, John Wallin, Board Vice Chair; Neelam Gupta, Board Member; Kirsten Aird, Board Member; Liz Hartman, Board Member; Dr. Jennifer Schiele, Superintendent Others Present: Kyle Rhorer,Vice President of Carollo Engineers(via video conferencing) 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PRESENTATIONS 4.1 Ehlers-Danlos Syndromes & Hypermobility Spectrum Disorders Awareness Month Mayor Buck declared May 2024 as Elers Danlos Syndromes and Hypermobility Spectrum Disorders month. The signed proclamation was available on the City's website. 4.2 Asian American, Native Hawaiian and Pacific Islander Heritage Month City Council Regular Meeting Minutes Page 1 of 15 May 7, 2024 Mayor Buck proclaimed May as Asian American, Native Hawaiian, and Pacific Island Heritage Month in Lake Oswego. The signed proclamation was available on the City's website and a citywide celebration would be held at Millenium Plaza Park later this month. 4.3 If I Were Mayor Contest Winners Mayor Buck described the annual If I Were Mayor Contest sponsored by the Oregon Mayors! Association, noting winners were selected from two categories: a poster contest for 4th and 5th graders and a middle school essay contest for grades 6 through 8. This year had a 42 percent increase in contestants over last year. Drishti Singh, a member of Lake Oswego's Youth Leadership Council, joined the Mayor to present the awards and was the first YLC member to be involved in the If I Were Mayor selection process. The winners of the 2024 Lake Oswego If I were Mayor Contest were: elementary poster winners were Kenzie James (1st place), Gia Hill (2nd place), and Torben Grosse-Wortmann (3rd place); and middle school essay winners were Leuca Wanford (1st place), Megan Rim (2nd place), and Jad Chahin (3rd place). First place winners in each category would be entered into the statewide contest for a chance to win $500. The winners shared a few words about the ideas in their entries. The Council recessed from 5:50 p.m. to 5:53 p.m. 5. JOINT MEETING WITH THE LAKE OSWEGO SCHOOL BOARD Mayor Buck introduced Lake Oswego School District Superintendent and members of the School Board, noted that the City Council and School Board served distinct but overlapping constituencies and had partnered over the years to find ways to serve both. The School Board was presently engaged in discussions about facility needs ahead of a potential bond renewal to modernize and right-size the District, exploring options that could involve changes to current school sites. The Board had engaged in its own community engagement processes regarding the potential use of current sites, which the City Council looked forward to hearing about. At the same time, the City had been engaging residents on long-term needs for a larger library to replace the undersized current facility that lacked accessibility. The City also hoped to realize other long-term plans for the community, including a space for community enjoyment in the Lake Grove Town Center through the Lake Grove Urban Renewal Area (URA). The City had a strong funding mechanism in place to bring a potential project to fruition to Lake Grove that could meet long-term community needs, benefit local students, adjacent neighbors, and the community at large. • If the School Board's process led to repurposing the Lake Grove Elementary site, the City proposed discussing incorporating a community center at the site that would maintain a community hub serving students and residents per the Lake Grove Village Center Plan, while respecting the District's independent decision process centered on students' best interests. • The City acknowledged the difficult trade-offs involved but was jointly meeting with the School Board this evening to share ideas openly, think comprehensively, understand each body's process, and make decisions in the entire community's best long-term interests, ensuring public space was not lost. Brian Bills, School Board Chair, stated he was excited to hear about the City's vision. However, as the Mayor acknowledged, the District and City shared some interests but followed distinct processes that needed to be respected. Fortunately, the School District and City enjoyed a relationship that allowed for synergies, such as the Lake Oswego Recreation and Aquatic Center (LORAC) and other collaborative efforts. The District's timing differed from the City's, and it sometimes had to make independent decisions separate from the City's envisioned plans. Even City Council Regular Meeting Minutes Page 2 of 15 May 7, 2024 so, it would be fortunate to take advantage of aligning their efforts if opportunities arose. The District's Superintendent would provide the City Council with details about the District's process, timing, and how both would proceed. City Manager Bennett proposed the School Board and City Council hear first from the Library Director, who would provide a brief overview of how the Library supported the mission of the School District. The City Manager would then present the City's idea, which had been presented to several groups, including the District's Long-Range Facility Taskforce. District Superintendent Jennifer Schiele would conclude with an update on the School Board's decision-making process. 5.1 Lake Oswego Library Events, Participation and Facility Needs Melissa Kelly, Library Director, presented the report via PowerPoint, noting that the Lake Oswego Public Library served as an essential support component to the Lake Oswego School District by providing community-wide access to life-long learning for all ages, 7 days per week, and during school breaks when students were out of class. The Library's diverse classes covered many forms of literacy such as early learning, social skills, digital literacy, research skills, and financial literacy. The programs complemented and supported the learning continuum, drove economic advancement, fostered inclusivity and connection, and enhanced quality of life. Andrea Milano, Library Youth and Technical Services Manager, continued the presentation, summarizing the Library's vital role in developing early literacy skills and fostering a love of reading from infancy through adulthood. Early literacy programs, such as story times, built critical pre-reading and promoted socialization for toddlers, while librarians modeled for caregivers how to encourage literacy through reading, singing, and engaging with their children. The 1,000 Books Before Kindergarten challenge excited kids about reading preparation. The Library also offered programming for elementary-aged children and teenagers, as well as family programs, providing a place to learn and socialize for many ages. Ms. Milano noted the Library had profoundly influenced her own language development and writing skills. Allison Arnold, Library Adult Services Manager, resumed the presentation, outlining the range of adult events and classes aimed at improving quality of life, promoting community, and supporting different types of literacy. The demand for programming had increased by more than 275 percent over the past 20 years, and the Library frequently hosted events at other community spaces due to capacity issues. Last year, the Library hosted an average of 1.5 classes or events per day, including 291 events specifically for youth that were attended by nearly 13,000 youth and caregivers. The Lunar New Year Festival had the single highest attendance at over 1,100 residents. Director Kelly concluded the presentation, noting the Library could not measure up to comparable libraries due to space constraints. During the 2023 Library Visioning Process, residents indicated they wanted the Library to be an accessible community hub and active learning space, but the current facility created barriers resulting in inefficient service delivery. Staff regularly heard from residents who visited other libraries with larger facilities, dedicated event spaces, and modern amenities Lake Oswego's Library lacked. Other needs identified during the Visioning process included: cafe space; flexible event/meeting spaces; a larger children's area; dedicated tween/teen space with reservable study rooms; a makerspace/technology lab; sensory- friendly areas; and adjacent outdoor space. It was clear the community was significantly underserved by the shortage of Library facility space. The entire Library Staff looked forward to City Council Regular Meeting Minutes Page 3 of 15 May 7, 2024 working with the community to create a solution for better access to enhanced and innovative library events and services. Mayor Buck thanked Director Kelly and Staff for the presentation and for all the Library did to create programs within the restraints of the current facility. 5.2 Lake Oswego I Lake Grove Community Center and Library Concept City Manager Bennett presented the vision for a Lake Grove Community Center and Library via PowerPoint, noting the City Council had expressed interest in the idea during its goal setting in January, which aligned with the District's long-range facility planning discussions and decisions about elementary schools. • In 2023, the City completed its Library Visioning project, began work on the long-range plan for the Parks and Recreation Department and facilities, and conducted its biennial Community Survey. Several common themes were heard from the community across all three efforts: a desire for inclusive facilities that were easy to find and easy to use; a desire for community connection; a desire for intergenerational spaces that served people of different physical abilities; a desire for environmentally sustainable and disaster resilient facilities; and a desire for event space. Notably, across all three efforts, the City heard about the need to better serve teens. The Council previously discussed whether there was an opportunity to address those themes and identified needs on the Lake Grove Elementary property if the School District decided to repurpose that facility. The Lake Grove Village Center plan, adopted in 2006, spoke to the need for a community center that included a library. City Staff's research found communities were providing community center/library facilities with a suite of different services that shared functions and overlapping needs; without being just as a library or recreation facility. The current library facility created barriers and resulted in inefficient delivery of services because community needs had outgrown the space originally built in 1983. In addition, the current facility needed costly repairs and its neighborhood location meant a lot of people in the community did not know where to find the library. • Staff conducted research and found examples of community centers that homed libraries, which enabled cities to meet a variety of needs, not just library-specific needs. A community center with a library would also allow the City to host its award-winning teen program in a more modern, accessible facility instead of the current church basement location, and offered the possibility of integrating the City's teen programming with the Library's teen programming. • The City would not invest in work to determine needed square footage or acreage until it knew what the School District planned on doing with Lake Grove Elementary School. If the District decided to keep Lake Grove an elementary school, the City would have to wait for a piece of property to become available. Should the District decide it was in its best interests to close or repurpose the school, then the City would start the second part of the process. • The Lake Grove Elementary School was an attractive property due to its location in the Lake Grove Urban Renewal District, which meant that urban renewal funding was available to build the majority of the project without raising taxes. The Lake Grove Urban Renewal Plan also offered opportunities to think about shared City/District public spaces and associated cost savings and efficiencies, similar to other shared spaces such as the LORAC. While the School District was contemplating facility needs across the city, Lake Grove Elementary was the only property within the URA. City Staff addressed questions as follows: • The current Urban Renewal District would expire in 2034 if not extended. If the City decided to pursue the project, it would extend the life of the project for another 30 years. Oregon's City Council Regular Meeting Minutes Page 4 of 15 May 7, 2024 Urban Renewal Law had changed, and the City was required to share revenue with the School District. Although the project would not require a tax increase, the District's duration would need to be extended to enable the City to finance the project. • The first step in the process would be conducting an urban renewal study. The City would use the revenue to sell a bond, though it would probably be a couple of years for the increment to grow enough before the City could have enough revenue to sell the bond. Because the City had not put pen to paper and did not have any consultants or architects on the project, it would be two to three years before the City could get started on this project under a best-case scenario. If Council gave Staff the go ahead the next day, the City could probably break ground in 2028. Regardless of what the District decided, Lake Grove would remain a school for that length of time anyway. 5.3 Lake Oswego School District Long Range Decision Schedule Dr. Jennifer Schiele, Superintendent, reviewed the anticipated timeline for the School District's long-range facility planning and bond development process, noting the public education period and opportunities for public testimony. A bond development committee would develop the proposed bond measure, cost estimates, and voter polling in the fall of 2024. The notice of ballot title must be filed by February 28, 2025, to appear on the May 20, 2025, ballot, though final dates were subject to the Oregon Secretary of State Election Calendar. Bond items under discussion included cafetoriums at all elementary schools, additional CTE space at high schools, rebuilding Forest Hills Elementary, and safety technology in all schools. She confirmed the bond was the third step in the District's bond process and was a renewal, not a new bond, so there would be no tax increase. Mayor Buck noted changes to school facilities throughout his childhood and career in Lake Oswego and asked what had taken the community from a consistent number of schools for some years to the more recent changes. Dr. Schiele responded the District had been using Uplands Elementary School for its rebuild. In the last bond, Lakeridge Middle School was built, and its students were at Uplands for two years during the rebuild period. Next year, those students would move back into its new school and then students from LO Middle School would move into Uplands for two years while the LOMS was rebuilt. The next steps depended on when the bond passed. If the bond passed, Forest Hills students would go to Upland for two years. At that time, depending on whether the District rebuilt or remodeled Lake Grove, or rebuilt/remodeled Uplands, those students would stay in their own school. It was about seven years before the planning would affect students at any of the schools. Mayor Buck asked if school population changes had influenced plans. Dr. Schiele replied that the population had remained steady between 6,800 and 7,000 students. There had been a decrease in population at elementary schools and an increase in secondary schools. Mayor Buck confirmed the middle schools used to just be seventh and eighth grades but were now sixth, seventh, and eighth grades, and asked whether that was part of the reason for the updates to facilities. Dr. Schiele replied that when the District moved sixth graders to middle school, it closed Palisades and Uplands, and Bryant was repurposed to allow sixth graders to be part of Lake Ridge Middle School. 6. PUBLIC COMMENT • Karl Ockert, 910 Cumberland Road, noted the Library often held classes or events at other public venues due to capacity issues, but had not used the recently remodeled Adult City Council Regular Meeting Minutes Page 5 of 15 May 7, 2024 Community Center, which was a state-of-the-art, Parks Department facility one block away. The Library and Parks Department should be able to efficiently use the existing City services and assets. Now was the time to show the community how well interdepartmental synergy could work by holding valuable programs the community wanted in an already existing but underutilized facility. • Ruth Bregar, resident, West Ridge neighborhood, opposed closing Lake Grove Elementary School, citing concerns about the loss of the neighborhood hub, shifting student populations, and the increased need for busing. Local residents wanted to keep Lake Grove Elementary where it was. • Thomas Eldridge noted that Lake Grove Elementary School served a high number of minority students and students from low-income households. He asked Council to recommend that the School District scrap the idea of flattening the Lake Grove Elementary School, which would generate capital to be spent in high net worth and predominantly white school districts. • Laurel Mahar, resident, and Lake Grove Elementary alumnus, opposed closing the Lake Gove Elementary School, citing the Lake Grove Village Center Plan which stated the school was central to the long-term vision for Lake Grove. The school had been a hub for the community since 1924 and was projected to have the highest enrollment in the District by 2030. • Kacey Carpenter, parent, and Lake Grove resident, opposed closing Lake Grove Elementary School, citing concerns about diversity and population. Other resources were available for community centers and libraries. • Lindsey Boccia opposed closing Lake Grove Elementary, noting volunteers would provide Council and School District with a packet of fact-based research about the issue in the coming weeks. She urged the City and District to listen to residents without dismissing their arguments as emotional. The Council recessed from 6:51 p.m. to 7:04 p.m. • Betsy Wosko, Chair, Old Town Neighborhood Association, asked Council to ban gas- powered leaf blowers, citing Portland's recent phase-out ban and the harms of gas blowers to people, animals, birds, insects, and the environment. Mayor Buck thanked Ms. Wosko for sending the Council informative articles on the topic. 7. CONSENT AGENDA 7.1 Public Improvement Contract Award for the Construction of Work Order 348—2024 Pavement Rehabilitation. Motion: Move to authorize the City Manager to sign a public improvement contract with Knife River Corporation for the Construction of Work Order 348 — 2024 Pavement Rehabilitation in the amount of$1,179,324. City Council Regular Meeting Minutes Page 6 of 15 May 7, 2024 7.2 Resolution 24-20, A Resolution of the City Council of the City of Lake Oswego Amending Resolution 24-02, Authorizing an Intergovernmental Agreement with the Riverdale Rural Fire Protection District Providing for the Continuation of Fire and Emergency Medical Services for Fiscal Years 2024-25 through 2030-31. Motion: Move to adopt Resolution 24-20. 7.3 Resolution 24-21, A Resolution of the City Council of the City of Lake Oswego Authorizing the Mayor to Execute Amendment No. 1 to 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 24-21. END CONSENT Councilor Mboup moved to adopt the Consent Agenda. Councilor Corrigan seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Verdick, Mboup, Rapf, Corrigan, Afghan, and Wendland voting `aye', (7-0). 8. ITEMS REMOVED FROM CONSENT AGENDA No items were removed from the Consent Agenda. 9. PUBLIC HEARINGS 9.1 Ordinance 2945, An Ordinance of the Lake Oswego City Council Amending LOC Chapter 24 to add Article 24.10, Providing for a Property Tax Exemption Program for Nonprofit Corporation Low Income Housing Pursuant to ORS 307.540 - .548 and Renaming Chapter 24. Ellen Osoinach, City Attorney, reviewed the hearing procedures and asked if any Councilor wished to declare a financial conflict of interest. None were heard. Jessica Numanoglu, Community Development Director, presented the Council Report for Ordinance 2945, which would establish a property tax exemption for nonprofit organizations that created affordable housing targeted at or below 60 percent of area median income (AMI). The exemption would apply to taxes levied by the City only; however, the ordinance included an option to apply the exemption to other taxing districts if requested.Applicants would be required to renew the exemption annually. Both the Planning Commission and City Council supported including the nonprofit affordable housing exemption as a strategy to include in the upcoming Housing Production Strategy (HPS) report. • She reviewed the request received from Mercy Housing Northwest in October 2023 and at the April 2, 2024, meeting, urging Council to adopt the exemption before the HPS was adopted. In its October 2023 letter, Mercy Housing noted that adopting the tax exemption in the summer of 2024 would allow the organization to underwrite the exemption when it moved from its construction loan to a permanent loan, saving more than $1 million over the lifetime of the loan. Staff noted the tax exemption would be available to any nonprofit corporation that City Council Regular Meeting Minutes Page 7 of 15 May 7, 2024 created affordable housing meeting the eligibility criteria, including the Hacienda project on Boones Ferry Road. • The ordinance established the eligibility and criteria requirements as well as the application and renewal process for the tax exemption. If approved, the next step would be to process Mercy Housing's application for the exemption. The organization's October 23 letter met the criteria for an application and therefore met the deadlines established by the ordinance. Staff would return to Council in June with findings on how Mercy met the tax exemption criteria and City Council would then approve a resolution that served as certification of tax exemption by the City for the County Tax Assessor. In order for the ordinance to be effective before the upcoming tax year, this process would need to be completed before July 1. Mayor Buck asked if the exemption allowed for partial abatement to developers who made a portion of the project affordable to those making 60 percent AMI or less. Director Numanoglu said the developer could maintain the entire abatement because the City had defined affordable in the ordinance using an averaging approach which would allow certain residents up to 80 percent AMI if some units were provided at 30 to 50 percent AMI to offset the higher income. Mayor Buck asked if language in the ordinance stating, "properties held for the purpose of developing low-income rental housing," meant developers could apply for and receive the exemption before they had saleable units. Director Numanoglu believed the ordinance allowed up to two years prior so developers could apply while the project was under construction. Mayor Buck asked if developers would owe back taxes if they abandoned the project after receiving the exemption. Director Numanoglu read from the ordinance language stating, "If after the exemption is granted, the property was being used for any purpose inconsistent with the determination granting the exemption, the City Manager shall follow the procedures for termination set forth in the ORS", confirming there was a termination clause in the ordinance if the developer did not use the site for the allowed purpose or if the project was not completed on time. Mayor Buck opened the public hearing, confirmed there was no public testimony, and closed the public hearing. Councilor Mboup moved to enact Ordinance 2945. Councilor Wendland seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Verdick, Mboup, Rapf, Corrigan, Afghan, and Wendland voting `aye', (7-0). 9.2 Resolution 24-19, A Resolution of the Lake Oswego City Council, Acting as the Lake Oswego Public Contracting Review Board Pursuant to ORS 279A.060, Making Certain Findings and Approving an Amendment to Resolution 18-55 and Authorizing a Special Procurement to Enter into a Design, Build, Operate and Maintain Contract for the New Wastewater Treatment Plant Facility; and Resolution 24-18, A Resolution of the Lake Oswego City Council, Acting as the Lake Oswego Public Contracting Review Board Pursuant to ORS 279A.060, Making Certain Findings and Approving a Special Procurement for Owner's Advisor Services for the Wastewater Treatment Plant Facility (DBOM Phase) and Authorizing the City Manager to Execute a Contract with Carollo Engineering, Inc. City Council Regular Meeting Minutes Page 8 of 15 May 7, 2024 City Attorney Osoinach reviewed the hearing procedures and asked if any Councilor wished to declare a financial conflict of interest. None were heard. Stefan Broadus, Director of Special Projects, presented the Council Report on Resolution 24- 19 via PowerPoint, providing a brief overview of the project's history and summarizing the Council's direction to Staff to explore competitive procurement methods to deliver the remainder of project. The project team compared the schedule risk, cost, construction review, and operations and recommended the design, build, operate, maintain (DBOM) model since it had all the advantages of the original design, build, finance, operate, maintain model, also referred to as a P3, public/private partnership, without the private equity element that caused the project to stall during the City's partnership with EPCOR. Under the DBOM model, the City's chosen partner would finish the design, construct the facility, and enter into a long-term operations and maintenance period. When the City put out its request for qualifications (RFQ) and request for proposals (RFP) the work completed to date would be identified as the preferred design option. Vendors would be able to pick up the completed work and continue to deliver the project or provide an alternative design that met the established design criteria. To offer an alternative design, vendors would have to meet the design criteria and at a better value to the City than the established design. Councilor Rapf preferred moving forward with the assumption that the City would operate and maintain its facility adding the City should think about engagement in phases, moving first through the design/build phase to build trust and equity with a partner after which the City could consider the operating and maintenance element of the relationship. The operation and maintenance element held significant value to a partner and should be held back to ensure the City was working with the right partner. City Manager Bennett believed that the project would have to be bid as a DBOM, but offramps could be written into the preliminary services agreement if the City did not feel confident in its operating partner. The previous agreement did not have the same type of offramps, and one reason the City had contracted with EPCOR was because of its operating expertise. Some firms that would bid on the project would do so in a way where the operator was not the designer and others bid as a single entity. She supported the DBOM model, noting the City Attorney could explain whether an agreement could be structured so it could be reevaluated if the City lost trust in some element. Councilor Rapf agreed, adding the value to a third party was a 40-year operation and maintenance phase. City Manager Bennett replied it may not be the same company since some would bid the project as a single entity and others as a series of companies. Mayor Buck noted it was a lot of trust to put into an entity the City would not know much about at the beginning. City Manager Bennett replied when the operational company was at the table during the design phase, operational efficiencies were designed in, which was a significant advantage to the City. Mayor Buck commented that the design part of the project was minimal at this point. Councilor Mboup noted the project was at 90 percent design and wondered whether design should be removed in favor of just build, operate, and manage. Mayor Buck said the City needed the final 10 percent. Councilor Mboup sought clarification on comments that potential partners would not bid more than what the City had already paid, taking the 90 percent design into account. Director Broadus explained that while there would be options, company would likely put some effort into taking ownership of the plans since it would be the engineer of record. A proposing team could take ownership of the plans, move the design to 100 percent, and then proceed with construction. City Council Regular Meeting Minutes Page 9 of 15 May 7, 2024 Alternatively, a vendor could propose taking a slightly different direction. The City's procurement document would specify the criteria the proposal had to meet in order to deliver a successful facility, and as long as all the criteria were met, the City could compare different designs and make a selection based on what was best for the City. As to whether it could be broken up, there was a risk cost to the relationship. No one took on additional risk, they bought risk. The City could provide more flexibility for itself by building in the opportunity to sever ties with the partner at the end of the construction phase, and there could be entities interested in that proposal, but those entities would cost just as much because the bulk of the financial incentive for a company to do the project was the operations piece, which was more than half the value. Taking the operations piece out or building into the contract the ability to take it away meant proposers would offset that with their own needs. Councilor Rapf agreed but said it went the other way, too. If the City wanted to allow a potential partner to operate, then it should see significant savings going the City's way. Councilor Mboup asked if Lake Oswego had ever operated a P3 project. Director Broadus replied he was not aware if the City of Lake Oswego had used the model, but several had been completed in the industry. Councilor Mboup believed the City should develop its own workforce and operate its own facilities. The bidders would be venture capitalists, not friends. The City should be in a position to develop and run its own facilities and avoid what happened with EPCOR. Mayor Buck believed many of the changes with EPCOR were around the financing piece, which would now be carved out. Councilor Wendland asked if the City's current situation was typical and how the industry would respond. Kyle Rhorer, Vice President, Carollo Engineers, replied that the industry was poised for the DBOM model, which was familiar. Generally, when looking at a DBOM, the entities, whether a single firm or consortium, were looking at operating and maintenance as the revenue- generating objective. As such, DBOM teams were generally led by the operations arm of either the company or the consortium. While an offramp in the procurement or contract was feasible, the efficiencies came from an operations-led DBOM team that expected to run the facility for 30 years which also dovetailed into other efficiencies where the operator would have input into completion of design, the construction, and the phasing of the construction. It was an entirely different model in terms of efficiencies from a life-cycle perspective. There was no reason the City could not craft contractual and procurement documents in a way that addressed the concerns expressed. Councilor Wendland inquired whether the City could expect another company to incorporate the 90 percent design, AquaNereda technology, etc. for a top performing sewer treatment plant. Director Broadus replied the City's procurement document would include qualitative performance criteria. Flexibility would be included for the City to have a preferred design while enabling vendors to propose alternate designs, but odor criteria had to be met, the design would have to fit the same footprint, have an energy component for sustainability, and any other parameters the City wanted to put in place. Vendors could propose something different as long as it performed at or better than this level. Councilor Wendland asked if it was typical for a company to pick up a project like this and deliver or was the City at a disadvantage. Mr. Rhorer replied it was unusual; however, it was not so unusual that the market would not be interested in it. Generally, DBO's were greenfield projects where the designer, contractor, and operator discussed the project before any design was made. Operations firms or operations-led teams were used to operating all kinds of technologies. The bigger question was to what degree would the new engineering firm take responsibility as a designer of record for the advanced AquaNereda technology. Carollo expected to unwind the City Council Regular Meeting Minutes Page 10 of 15 May 7, 2024 design a bit for the new engineer to be comfortable, but despite the newer technology, the design was very good and an appropriate use for the application. Carollo was confident internally and based on preliminary market soundings, that the design itself would be utilized in advance and operated. He could not guarantee there would be 5 or 10 proposals, but he did know the market was not shying away from the DBOM model. Councilor Wendland expressed concern that the situation was so unusual, vendors would add 25 percent to the cost because they would have to accept the risk. Mr. Rhorer replied based on what Carollo had seen and its comfort level with the original EPCOR approach, they were not overly concerned no market would be interested in the project. The RFQ had a relatively low bar in terms of submittal requirements for the teams to prepare a response. Carollo would do formal market sounding prior to issuing the RFQ to vet the informal market sounding done earlier with the firms to ensure there was more than one firm or consortia willing to embrace the project. The City would likely pay for some unwinding of the design in the design/build price, but Carollo was comfortable with what the City had in the applicability and suitability for the site. Mayor Buck asked how much flexibility there was for a new firm given the AquaNereda process and how much a firm could unwind the design and still keep the technology. Mr. Rhorer replied it was difficult to give a percentage, but he did not believe the design needed to go back to 60 percent. Some engineering firms, including Carollo, would like to address some aspects of the design. In the RFQ and sounding meetings, Carollo would address specific things that could be done differently with the AquaNereda system and give its peer engineering firms insight on what could be tightened up. Carollo and its contemporaries were familiar with AquaNereda, which was an excellent system for Lake Oswego due to the City's peaking factors and small footprint of the site. Any design firm, if it stamped it as the designer of record, would want to get under the hood a bit to make sure everything was okay. Councilor Afghan asked if operating a wastewater treatment plant of this size was the City's core competency. City Manager Bennett replied no, which was why Staff recommended the City not create a new competency. In the long run, outsourcing operations and maintenance would be more cost effective and lead to a better result for the community. Councilor Afghan inquired whether there were termination clauses in the future contract. Director Broadus said the contract had not been written yet, but the City needed to balance any sort of flexibility it wished to build into the contract with the cost it would pay for the flexibility. Councilor Afghan asked if any other technology would deliver the same performance. Director Broadus replied having a 90 percent design in hand was unique, but it was also a unique opportunity in that the City could put a near completed product on the table for vendors to choose from, or it could challenge the vendors to do something better for a better value and cost to the City. Whether better technology is available was uncertain, but if so, and a vendor was willing to do it at a value that was competitive for the City, then the City would receive that proposal and evaluate it against the others. City Manager Bennett replied Staff did not believe there was another technology available because the RFP process for the plant included a significant evaluation of alternative technologies.All available technologies had some limitations, but the City had explored all available technologies and optimized the design for the variables available. If a vendor had access to something the City did not know about, and it performed on energy efficiency, seasonal rainfall, and the nature of the City's flows, which were mostly residential, then the City would entertain the proposal, but the City would write the criteria with AquaNereda as the baseline. City Council Regular Meeting Minutes Page 11 of 15 May 7, 2024 Councilor Afghan asked if there were novation clauses in the current contract that would allow the new vendor to pick up the design and the engineers, so the new designer did not have to go to another engineer. He was concerned the current designers would not finish the design. Director Broadus replied the City owned the work product delivered at 90 percent. Any new team would need to be the official engineer of record for the design so there would need to be some unwinding of the work product if the vendor chose to pick up the 90 percent product. It was important to keep in mind the percentage of effort in doing that relative to the project as a whole. Relative to the entire project, that unwinding was probably in the magnitude of .1 percent or less. Councilor Afghan confirmed the City owned the documents with a specific design company and asked if the future vendor contract could work with the original engineer under a novation agreement to finish the design and limit the unwinding. Director Broadus said that approach was not recommended because if the original engineer was able to participate it would create an uncompetitive environment, put other vendors at a disadvantage, and drive up the cost to the City. Councilor Afghan asked if the City had a proposal from the original engineer to finish the design to 100 percent. Director Broadus replied the City could complete the design and then do a procurement for construction and operations, but the disadvantage was the City would then be setting out a procurement where the proposers did not own the design meaning the City would not get constructability and operating input.While that would limit the unwinding, the disadvantage was that the construction and operation would be set up with more risk. Councilor Wendland noted a lot of work had gone into the project besides the drawings, and a lot of the obstacles had been removed in the process. He understood the City wanted to proceed with AquaNereda but there was the possibility someone would pick it up and move forward in their own way, which would have a small cost. Director Broadus said the cost would be small relative to the overall product. The overall program was about $600 million and there was a few hundred thousand dollars of design remaining. Any efficiencies the City gained in construction or operations would outweigh the remaining expense in the design phase. Councilor Wendland commented that the City should open the bid process as much as possible to encourage competition and asked whether the procurement process required the City to pick the lowest bidder who met all the criteria. City Manager Bennett did not believe that would be the requirement. The City would want to pick the best proposal overall, and some of the criteria would not be financial, which was another advantage of the proposed procurement method. Councilor Wendland noted the City wanted to enter into a contract where both parties won because it was a 30-year commitment. He wanted to create a competitive marketplace and liked the idea that the vendor would be in the project for the long term, which would give the best economic outcome for both parties. Mayor Buck agreed and said it sounded as though that was where the market was. There was not a big market for design/build and the City may not get as many responsive proposals. City Manager Bennett said the City may get many proposals, but construction costs are currently very high. Mayor Buck asked if there was overlap between firms that did DBOM and firms that just did construction. Mr. Rhorer replied there was overlap in the market. Some teams did design builds and others did fully integrated design/build/operate. If the City went a design/build route, the challenge would be to find a contract operations firm willing to take on an AquaNereda technology, City Council Regular Meeting Minutes Page 12 of 15 May 7, 2024 or a plant in general, where the firm was not involved in operations-led design and construction. It would be an unusual arrangement, considering the size of the City's facility. Councilor Afghan believed the strategy the City discussed some months ago had changed. The Council previously discussed using the same design but a different company and financing the project. Now the City was opening the project to other engineers and may change the design, which seemed to be going backwards and penalized the engineers who had already finished 90 percent of the work. Those engineers could complete the work and it may be less expensive than getting other engineers involved. City Manager Bennett did not believe the plan had changed. Even when the City decided to leave EPCOR, it knew any other engineering firm would need to review the design. If the Council wanted to allow the previous engineer to participate it would give that firm a competitive advantage. Director Broadus stated having the previous engineers finish the design was the most cost- effective way since those engineers did not have to reperform the calculations previously done. However, that was not necessarily best for the project as a whole because while using the original engineering firm could save maybe $100,000 to $200,000, not having the advantage of the constructability and operations input, and the potential competitive impact that could have, could wipe away any potential savings. The constructability and operational input were done through the EPCOR construction and operation team. The other vendors would be different construction and operations teams with different means and methods of building and operating the plant. The City could hire a third party to provide constructability input or a peer review how to operate the plant, but if it was not the contractor who would be building it, or the operating entity, it was only worth so much. Director Broadus presented the Council Report on Resolution 24-18 via PowerPoint, noting the resolution would amend the existing contract with Carollo Engineers that helped guide the City from an administrative, procedural, legal, and technical perspective to get to the 90 percent design point. The proposed amendment would take the City through the upcoming procurement, including the RFQ, RFP, negotiating terms and conditions with the selected vendor, and into the design phase. Upon execution of the contract with the eventual partner for the design/build/operate phase of the project, the Carollo contract would be amended to provide the owner's advisors services to the City for the remaining phases. The selected vendor would begin design in the fall of next year and break ground at some point in 2026. The construction process was anticipated to take about 30 months. • He explained a lot was included in the scope of the contract, as quite a bit of complicated language needed to go into the contract to fold in the design parameters and criteria, as well as market sounding and market outreach. Additionally, unfinished, unresolved elements needed to be completed, including a headwords element, generator sizing, and the alkalinity effluent, which was essentially a new component of the plant that needed to be designed and permitted. The unresolved items needed to be properly framed in the procurement to ensure the proposers write on them. The City was actually quite a bit under the general guidelines for what was a reasonable amount to spend on professional services for the project. Councilor Rapf asked how the Carollo's fees are structured. Director Broadus replied Carollo's contract was a task-based, hourly contract not to exceed. The fee did not include any sort of royalty or percentage value of the DBOM and noted that the City would amend the contract again upon execution of the contract for Carollo to continue its owner advisor role through design/construction and an initial operations period. City Council Regular Meeting Minutes Page 13 of 15 May 7, 2024 Director Broadus clarified the$890,000 Staff was seeking to approve got the City to an executed contract with a new partner. Attorney fees were included in a contract with a separate consultant, Hawkins. Carollo provided the City with technical and alternative delivery expertise. The team of consultants included Universal Field Services and Cable Huston, who provided the City with land rights assistance. Jill Jamieson's firm, Illuminati, provided the City with alternative delivery, legal, and technical advice. City Manager Bennett confirmed the City would have to do land use permits again. Mayor Buck opened the public hearing, confirmed there was no public testimony, and closed the public hearing. Councilor Wendland moved to adopt Resolutions 24-19 and 24-18. Councilor Rapf seconded the motion. A voice vote was held, and the motion passed,with Mayor Buck and Councilors Wendland, Verdick, Mboup, Rapf, and Corrigan, voting `aye', Councilor Afghan, voting 'no' (6-1). 10. INFORMATION FROM COUNCIL Councilor Rapf congratulated the City on its supporting role in the successful Lake Run. Mayor Buck stated May 10 was the deadline for all boards and commissions applications and asked Councilors to encourage people in the community to apply. • Lake Oswego had discussed a community shuttle for a long time, but no funding resources existed. People who worked in Lake Oswego paid a payroll tax for transportation, and employers paid an even larger tax for transportation, but the City saw limited benefits from that tax. The advisory board guiding the Statewide Transportation Improvement Fund (STIF) Get Oregon Moving dollars, which were meant to support transit funding and service expansion, had heavy representation from Multnomah County and nonprofits but no city representatives except for one staff member from Portland. Metro Mayors were making an effort to get mayors represented on the advisory board to better address cities'funding needs. • Metro was proposing changes to the allocation of Regional Flexible Fund Allocation (RFFA) dollars. The region typically bonded on the dollars to fund large projects instead of many smaller projects, so a portion of the funds went to repay the bonds. Metro was considering raising the threshold for applications, which was not responsive to the needs of smaller cities and rural communities. Raising the dollar threshold for planning grants to $1 million would preclude Lake Oswego from submitting any project. Lake Oswego was advocating against the new policies. City Manager Bennett noted Staff had concluded a City-run shuttle was not viable with STIF funds. Staff planned to meet with TriMet to discuss short-and long-term plans for connecting Lake Oswego's two town centers. 11. REPORTS OF OFFICERS City Council Regular Meeting Minutes Page 14 of 15 May 7, 2024 City Manager Bennett noted it was Public Service Week and thanked her colleagues at the City and City Councilors for their dedication. Next week, the City would recognize police officers and later in the month it would recognize its Public Works crews, who never got the credit for being first responders. A significant national dignitary was hosting a fundraiser close by on Thursday and the motorcade would most likely significantly disrupt traffic on Thursday afternoon. She could not provide further details, but confirmed the dignitary was not the President. The first farmers market of the year was scheduled for this Saturday, right before Mother's Day. 12. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of ORS 192.660 (2)(a) Consider employment of an officer, employee, staff member or agent; and (f) Consider records that are exempt by law from public inspection. City Attorney Osoinach read the legal parameters for the Executive Session. The Council met in Executive Session from 8:35 p.m. to 9:15 p.m. 13. ADJOURNMENT Mayor Buck adjourned the City Council meeting at 9:15 p.m. Respectfully submitted, Kari Linder, City Recorder Approved by the City Council on {insert approval date}. Joseph M. Buck, Mayor City Council Regular Meeting Minutes Page 15 of 15 May 7, 2024 ATTACHMENT 2 o s� CITY COUNCIL REGULAR MEETING MINUTES V +� O May 21, 2024 OREGO� 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 3:02 p.m. on Tuesday, May 21, 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: Mayor Buck, Councilors Mboup (arrived at 3:14 p.m.), Rapf (left meeting at 5:10 p.m.), Corrigan, Afghan, Wendland, and Verdick. Staff Present: Martha Bennett, City Manager; Ellen Osoinach, City Attorney; Kari Linder, City Recorder; Paul Espe, Associate Planner; Melissa Kelly, Library Director; Jessica Numanoglu, Community Development Director. Others Present: Kasey Holwerda, Chair of the Historic Resources Advisory Board; Jeannie McGuire; Morgan Nolen, City's Contract Arborist; Ryan Allen, Dudek (via videoconferencing); Cameron Stecki, Dudek (via videoconferencing); Curtis Gagnor, Structural Engineer, CIDA; Chris Walker, Principal Architect, CIDA. 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PRESENTATIONS 4.1 National Pride Month. Mayor Buck declared June Pride Month in Lake Oswego and invited residents to attend Lake Oswego's Pride Festival on Sunday, June 2 from 12 p.m. to 4 p.m. at Millenium Plaza Park. More information and the signed proclamation were available on the City's website. 4.2 National Public Works Week. Mayor Buck declared May 20 through May 24 as Public Works Week in Lake Oswego and introduced a short video about the City's Public Works Department. More information and the signed proclamation were available on the City's website. City Council Regular Meeting Minutes Page 1 of 11 May 21, 2024 4.3 National Historic Preservation Month and Awards. Mayor Buck stated the city celebrated National Historic Preservation Month in May and thanked community members who volunteered on the Historic Resources Advisory Board (HRAB) and other members of the preservation community who contributed to the preservation of the city's historic and architectural past. Paul Espe, Associate Planner, summarized the background and intent of Historic Preservation Month and provided information about the City's grant programs. The Hunt Club had recently completed an extensive project to restore the wood windows at the west/rear elevation of the arena building with the help of the Historic Preservation Grant. A collaborative project between the Lakewood Neighborhood Association and Robotics Club members at Lake Oswego's high schools was using the Historic Education Grant to create a self-guided historic walking tour of the Lakewood Neighborhood that users would access through a phone app. Kasey Holwerda, Chair, HRAB, presented the annual HRAB Merit Award to Jeannie McGuire, noting the award would hereafter be known as the Jeannie McGuire Lifetime Achievement Award for Historic Preservation in honor of Ms. McGuire's lifetime of work in the Lake Oswego community in the name of historic preservation. Ms. McGuire, a founding member of HRAB, worked on the Trueblood House, the Headgate, and was instrumental in saving the Worker's Cottage. Jeannie McGuire thanked Paul Espe for his work with HRAB, members of the Lake Oswego Preservation Society, the Oswego Heritage Council, and those who were not members of any groups but had done remarkable things to promote historic preservation. The Council recessed from 3:20 p.m. to 3:24 p.m. 5. PUBLIC COMMENT • Mark Puhlman, member, Lake Oswego Sustainability Network, Sustainability Advisory Board, Forest Highlands Neighborhood Associations Board, LOSN Electrify Your Neighborhood and Healthy Yard Care Action Team, thanked the Council for granting financial support for the Action Team, and noted the organization planned to send residents mailers on healthy yard care and the evils of gas-powered equipment. In the spring of 2025, the organization hoped to utilize the new aquatic center to host a conference co-sponsored by American Green Zone Alliance (AGZA) that would showcase electric landscaping equipment for Lake Oswego landscapers. He thanked Public Works Department and City Parks Department for moving towards electrification and urged the Council to follow the lead of Portland and 200 other municipalities across the United States and ban gas-powered blowers and gas-powered landscaping equipment. • Karl Ockert read into the record his written statement in opposition to a Lake Grove library/community center. • James Bolland read into the record his written statement in opposition to a Lake Grove library/community center. • Diana Schmidt read into the record her written statement in opposition to a Lake Grove library/community center. City Council Regular Meeting Minutes Page 2 of 11 May 21, 2024 • Jeff Wiens read into the record his written statement in opposition to a Lake Grove library/community center. • Verne Dusenbery read into the record his May 8, 2024 letter to the editor of the Lake Oswego Review in opposition to a Lake Grove library/community center. • Jill Cabral-Schinn read into the record her written statement in opposition to a Lake Grove library/community center. • Stephanie Wagner, Lake Oswego Watershed Council, encouraged the Council to accept the Urban and Community Forestry Plan which would be presented later this evening. The Watershed Council was privileged to be a part of the process and complimented the Planning Department on how inclusive the process was. 6. CONSENT AGENDA 6.1 WO 332, Approval of the Guaranteed Maximum Price for the Backup Power at the Lake Oswego-Tigard Partnership Facilities Project. Motion: Move to authorize the City Manager to amend the Contract with Brown & Caldwell to increase the authorized amount by$1,572,488 to a total of$3,488,896 for the Guaranteed Maximum Price (GMP) as part of Phase 2 of the Design-Build contract for the Backup Power at Lake Oswego-Tigard Water Partnership Facilities project (WO 332). 6.2 Approval of Meeting Minutes. March 19, 2024, Draft Regular Meeting Minutes April 2, 2024, Draft Regular Meeting Minutes Motion: Move to approve the meeting minutes as written. END CONSENT Councilor Mboup moved to adopt the Consent Agenda. Councilor Corrigan seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Mboup, Rapf, Corrigan, Afghan, Wendland, and Verdick voting `aye', (7-0). 7. ITEMS REMOVED FROM CONSENT AGENDA No items were removed from the Consent Agenda. 8. STUDY SESSIONS 8.1 Library Seismic Evaluation and Facilities Condition Assessment Report. Melissa Kelly, Library Director, introduced members of the consultant architecture and engineering firm, CIDA, and presented the Council Report via PowerPoint, providing background City Council Regular Meeting Minutes Page 3 of 11 May 21, 2024 information on the building's history, results of previous facility needs studies, maintenance history and associated costs, and a description of current facility deficiencies. Curtis Gagnor, Structural Engineer, CIDA, continued the presentation, describing the ASE-41 evaluation procedure used to determine building performance at two different earthquake levels and the scope and methodology of the structural assessment that found seismic deficiencies in the building's foundations, walls, second floor framing, stairwells, and roof. Chris Walker, Principal Architect, CIDA, continued the presentation, summarizing the architectural portion of the assessment, reviewing the water intrusion issues associated with the roof, ADA-related accessibility issues in the parking lot, entry, bathroom, and elevators, and the scope of work associated with the identified issues. • The report detailed the $7.6 million cost estimate from FORTIS Construction that included construction costs, three years of escalation moving forward at 4 percent per year, and a contingency. The estimate did not include soft costs, which typically ran in the 20 to 30 percent range, design costs, commissioning requirements for new energy codes, permits or entitlement fees, City charges on systems or utilities, furniture, fixtures, equipment, low voltage, or third-party inspection agencies. • The Staff cost noted an internal budget needed to support the project, which could include an owner's representative or someone on staff. The internal budget would also include Library Staff time throughout the project and a separate owner's contingency of 5 percent, bringing the total estimate to $9.7 to $10.5 million. • The cost estimates and assumptions covered a very specific scope of work outlined in the report to address noted deficiencies and upgrade requirements. The project was not a wholesale renovation and modernization project. • The one-year project schedule included eight months of construction time for the single-phase project. The one year included time to move in and move out to keep the building vacant. Any phasing or continuous operations would prolong the project schedule and impact costs. • The cost estimate did not include any moving, storage, leasing of other facilities, or other associate tenant improvements that might be needed at a temporary location. Director Kelly concluded the presentation, noting the report found the facility required significant renovations for the structure to meet seismic performance expectations, the building and site had significant ADA deficiencies, and the building was aging and showing many signs of degradation. The $10 million estimate would only address the seismic deficiencies, water intrusion, and other building maintenance and upgrades identified in the report. The project would allow the City to maintain the existing library at its current size and service capacity and the limited scope of the project would make the building safe, dry, and as accessible as feasible given the building's age and design. The project would not bring the building up to the safety standard of a new building. To make the seismic/retro fits, 40 percent of natural light from the windows would be lost, and the seismic reinforcement hardware would be visible on natural wood ceiling which would degrade the ambiance enjoyed at library. The project would not renovate existing spaces, add amenities, or increase the overall square footage. Because the facility was already too small to add modern amenities relative to population size and usage, any such modernization would be limited and at the expense of current library services. The $10 million would not buy anything new for the community. Clarifying questions from Councilors were addressed by Staff and consultants as noted: • There was some money in library's carry forward budget, but it would not cover all of the costs. The estimate was not a complete cost estimate, because it did not include costs of moving City Council Regular Meeting Minutes Page 4 of 11 May 21, 2024 library to a lease location or the cost of leasing. Staff could develop a complete cost estimate and funding strategy as the next step. The City did not have $10 million to direct towards any capital projects and would either need to save for the project, which would cost more in the future, or ask voters for a bond. • Two-thirds of Library operations were funded through the County's library levy and the remaining 1/3 came from the City's General Fund, which was property tax dollars.While some had raised questions about the cost of the wastewater treatment plan, those monies were funded by the rates collected on wastewater, not the general fund, and could only be spent on the wastewater plant. There were limits on what could be done with General Funds, and when there was talk about increasing staff, etc., it came in the context of the entire General Fund City Staffing. If the City were to double operating costs for the Library, 100 percent of those additional costs would have to come from the City's General Fund. • The report referenced the 2008 Library Facility Condition Assessment by SERA Architects, but the Library had had not received any other current assessment in addition to the 2024 report by CIDA. • If the improvements were completed, the life of the improvements would last 40 to 50 years. It was important to make sound decisions on materials that would provide for a 50-year expectancy versus 10 years. • The assessment was visual and there were no core samplings taken. There was a five percent contingency included in the estimate to account for unforeseen conditions, which would be expected given the size of the building. CIDA felt the study helped to understand the building's structure and what it would need in order to continue moving forward. • Rearranging the building without adding or modifying structural elements would incur a cost that was essentially the same as a major tenant improvement remodel. If the second-floor openings were filled in, it would add a lot of mass to the building, causing significant changes to the structural base, and seismic upgrades would then become more expensive since seismic forces were based on a percentage of the structure's mass. • If the project were completed, the Library would still have ongoing maintenance costs associated with any building, but the maintenance costs over the next 40 to 50 years should be significantly lower than the $2.5 million spent in the last 15 years. • At the end of the project, the Library would look essentially the same as it did today and have essentially the same services. There would be a little bit of removal of ADA barriers, the bathrooms would function a bit better, and the serviceability of the elevator would be corrected so it would function better. The average person would probably not notice a whole lot of difference to the Library after it was reopened. • The sewage odor at the Library would not be fixed in the scope of the project. The odor was related to the HVAC drain area and the Library Staff poured water down the drain a few times a week as a low-tech solution. The odor could be due to a trap primer that was not maintaining enough water. It was possible for a fix to fall under the construction contingencies listed under FORTIS' side, and it probably not be a significant cost in relation to the overall assessment. • Seismic issue was a safety concern, but the largest exposure was ADA issues. The City could be exposed to lawsuits due to accessibility failures. • Wood frame buildings performed reasonably well in seismic events because the load was spread out between elements. However, this particular building had some detailing that did not allow it to spread out the loads very well. In a medium-sized earthquake there would probably not be any significant life/safety issues, though there would be quite a bit of building damage. For a larger earthquake, which had a 5 percent chance of happening in the next 50 years, the building faced significant damage and the possibility of life/safety hazards. There was a higher level of risk with the current building compared to a new building. City Council Regular Meeting Minutes Page 5 of 11 May 21, 2024 • The cost per square foot for a new library varied quite dramatically. Currently, CIDA was building facilities for the Multnomah County Library system that totaled between $800 to$1400 per square foot, all in with hard and soft costs. Small communities could build new libraries for significantly less, but all new libraries in Multnomah County were in the $1,000 per square foot range. • The picture included in the report which showed a gap under the sidewalk showed the north entry at the parking lot when a remodel was done of the canopy over the area. There was a concrete retaining wall around a lightwell, but the sidewalk was outside the retaining wall. The gap, likely due a broken drainpipe eroding under the sidewalk around the retaining wall, had been filled during the remodel. The team had examined the rest of the building and where the foundations could be seen, there was no cracking. There was a crack in the loading dock area retaining wall and CIDA recommended removal of the large pine tree behind the area. Overall, the concrete walls themselves did not appear to be having major issues. • Prior to Covid, the Library had been open 65 hours per week, and was now open 54 hours per week, and found closing at 7 p.m. met the majority of needs. The Library had taken the 11-hour difference to serve people who could not get to the library and expanding access with its Rover Popup. There was some input from community members who expressed a desire for the 7 p.m.to 9 p.m. hours to be reinstated, but they indicated they thought the youth wanted those hours. The 7 p.m. to 9 p.m. hours, which were the least utilized prior to Covid, were the least desired from the community. The Library was considering expanding hours from 5 to 6 p.m. on Friday, Saturday, and Sunday, though the Library had a limited operating budget and Staff. The Library had not heard from teens on its Board that they desired the longer hours, though if the Library had modern spaces in which to study, staff believed teens would want the longer hours. • Cost estimates for the ADA portion of the project were separated and detailed in an attachment to the report. Staff would bring those estimates back for a longer discussion regarding whether the City could afford to meet the standards for disability access. The discussion would have to take place as part of budget discussions since the Council would have to weigh decisions on other capital projects. • It was difficult to calculate a deterioration rate and the project could not really be done in portions due to the reciprocal impact of decisions. Components of the project, such as the ADA parking stalls, could be done as standalone projects. Councilors agreed that the Library needed the $10 million project to address the deficiencies identified but the project would not expand the facility or address other items identified in community surveys. However, community surveys were not a scientific way of gaining community input and the City had received feedback from residents of First Edition, where the library was currently located, that advocated for keeping the facility in place. The City was in no position to do anything this year or next year. There was a long-term decision to make, but the City had to make a short-term decision no matter what. Even if the City were to build a new library, it would be many years down the road and the current facility had to have its most pressing needs addressed in the short term. Councilor Afghan stated the civil engineering firm, AAI, used by CIDA was owned by his brother. He was not involved in the selection process or awarding the contract so did not consider himself to have a conflict of interest. City Manager Bennett stated the City had to be a good steward of the assets in its portfolio and data showed the building needed significant investment. Doing nothing was not an option and the City could not defer significant investments in building. City Council Regular Meeting Minutes Page 6 of 11 May 21, 2024 The City Council recessed from 5:10 p.m. to 5:21 p.m. 8.2 Urban and Community Forest Plan Update (PP 21-0008). Jessica Numanoglu, Community Development Director introduced project team, and asked the Council to focus on certain elements of the Urban and Community Forestry Plan that had been revised since last study session on February 20th. This was last study session before the public hearing to adopt the plan on June 18th Ryan Allen, Dudek, (via videoconferencing), presented the report via PowerPoint, providing an overview of the project to date, reviewing feedback received on previous drafts, and providing an overview of changes and additions since the last draft as noted: • The Vision Statement had changed to incorporate feedback reflecting the urban nature of the city's forest. • Key Findings were updated to include discussion on the City's Tree Code needing clearer and objective standards. Item 5 was added to include discussion on climate change impacts like increased heat and severe storms and how those impacted urban forest. Items were added to incorporate feedback regarding an increase in invasive plants and pests and the need for active management program to keep those at bay, as well as the fact that 80 percent of the citywide tree canopy was on private property to highlight the critical role owners played in maintaining a healthy tree canopy cover. Finally, an item was added to acknowledge threats to the short and long-term health and sustainability of urban forest were not fully understood by community members and there needed to be more specific information related to those topics. • Guiding Principles in the Strategic Plan stayed the same, but a timeframe category was added to the actions related to those principles. The Action Items were then categorized by timeframes and prioritized. Ultimately, the document was a guideline and it would need to be reviewed and updated in the future to make sure that priorities listed now were still priorities for the City in years to come. • Staff wished to receive the Council's feedback on Action Item 2s, which was a new update discussing the need to hire an urban forester or consultant based on feedback from the public as well as Boards and Commissions. • The Monitoring Plan was a new addition that used the community goal setting and assessment tool that developed by the U.S. Forest Service to create a 28-question survey that had a city rate where they currently were on scale of poor to excellent and where the city would like to be. Lake Oswego's current score of 60 reflected where things were now, and the goal reflected where would like to be. A score of 60 was great because most programs were struggling to make the teens. Because the assessment was numerically based, it was easy to track progress over the years by retaking assessment. Councilors discussed the changes and noted the report included previous feedback. Several Councilors expressed concerns regarding the City's Tree Code, which seemed to prohibit private property owners from removing trees the City did not deem high risk. Councilors wished to ensure the plan did not dictate how private owners managed their trees and there seemed to be ambiguity about which trees the plan sought to manage. Councilor Corrigan suggested the Vision Statement include the word, "combat" because trees were one of the only ways people could combat and reverse the problem of greenhouse gases. In addition, the Council had a goal to combat climate change and address greenhouse gases. City Council Regular Meeting Minutes Page 7 of 11 May 21, 2024 Clarifying questions from Councilors were addressed by Staff and consultants as noted: • Many public comments were very value-based, but the team included a list of public comments received as well as feedback from boards and commissions and felt the report captured most of what people wanted. No major items of feedback were eliminated, though there was some feedback regarding wildfire. This was not a wildfire protection plan, which the City had in a separate document, but changes were made to reflect the feedback and there were quite a few Actions that supported the strategies in the Clackamas County Wildfire Protection Plan. • Budget gaps were identified in the work. The team identified numerous items needing assistance from the Department of Public Works where the Department lacked resources or budget to undertake the work. More discussions would have to occur in the upcoming budget process. For example, the Tree Inventory needed someone to manage the program, though grant funding could be available. The report discussed hiring an urban forester or consultant to help fill gaps because the City currently had a decentralized way of managing trees, and an urban forester could create more cohesive management. Tasks accomplished with current resources existed. The Implementation Plan prioritized items based on an ongoing, short- term, medium-term, and long-term basis. In the upcoming budget cycle, further discussion would occur about actions beyond existing resources and staffing to take. • A canopy cover assessment looked at how much area within the city was covered by the leaves and branches of trees while a tree inventory went tree-to-tree to collect arboricultural information such as botanical name, trunk diameter, height, width, health, and assessing any maintenance needs. • One of the key findings found a need for an updated tree inventory because the City did not currently know what it had in terms of trees, species mix, age, or class. The tree inventory would collect information on the estimated 40,000 trees managed by the City to create more strategic management by Public Works and the Parks Department. Tree inventory rates were between $5 to $6 per tree for an estimated total of$200 to $300,000. The inventory would be easy to update once the first inventory was taken and the City would use an assessment management tool and GIS software to make updates to the inventory in real time as trees were planted or removed. On some period basis, it would be worthwhile to conduct a quick review. • The inventory could be used in many ways, but invasive pests and knowing what trees were vulnerable was the most important reason to an inventory. The City of Wilsonville had a complete inventory of city-owned, right-of-way street trees and was able to check each for the invasive Mediterranean Oak Bore, which helped the whole region. An inventory in Lake Oswego would help prepare the city for the inevitable arrival of Emerald Ash Bore. Knowing how many ash trees were in the City's population could help the City budget for management, removal, disposal and replanting to maintain canopy. • The bulk of the plan was about the management of the 20 percent of the canopy cover owned and maintained by the City. To help manage the other 80 percent on private property, the City used its Tree Code. If a tree was dead or dying, hazardous or high risk, it was simple to obtain a permit. A tree that was not in progressive decline and did not rise to the level of high risk but did exceed the owner's risk threshold did have to go through the more arduous Type II, though the City had to look at the significance criteria. The team did not believe anything in the plan created a conflict between canopy preservation and human life and safety. If a tree removal application met Code criteria, the City could not deny the application. • The Plan did include recommendations about the Tree Code and noted some shortfalls in the Code. The Tree Code would be reviewed after Staff created the scope of work and put out an RFP to have a consultant on board by this fall. There were actions in the plan aimed at City Council Regular Meeting Minutes Page 8 of 11 May 21, 2024 encouraging and incentivizing the management of private trees and programs such as the Tree Code and Sensitive Lands Ordinance regulated trees on private property. • Eighty percent of the city's canopy was made up of trees on private property. Of the remaining 20 percent, 12 percent represented trees in the public right-of-way, including unimproved portions of right-of-way and some traditional street trees. • The plan did include a number of actions related to public outreach and education, and the City had a habitat enhancement program for private property which was targeted towards stream corridors. The City could not force people to plant trees but could encourage the planting of trees. The Parks Department had already partnered with Friends of Trees and that organization when through neighborhoods promoting opportunities to plant trees. Neighborhood associations were also a good resource because tree planting could be something associations wished to prioritize and encourage, such as the program in First Edition. • A tree risk assessment followed a defined process outlined by the International Society of Arboriculture with three levels of assessment. Level 1 involved a basic walkthrough survey to identify obvious defects like broken branches. Level 2, the most common level, entailed a 360- degree evaluation of individual trees, examining the roots, trunk, crown, and canopy for potential defects. The risk assessment determined the likelihood of tree failure impacting a target within a given timeframe and the consequences of such an impact to establish the level of associated risk which informed decisions on mitigation steps or potential tree removal. Level 3 used specialized equipment, such as tomographic scanning and drones, for an in-depth internal and canopy analysis. • For public trees, the assessment focused on those within striking distance of occupied areas. Parks already conduct these assessments, even hiring consultants post-storm. The criteria mirrored what the City required for private hazardous removal tree permits: evaluating likelihood of failure, target potential, and consequences per the International Society of Arboriculture standards. High or extreme risk ratings meet the criteria for private removal permits. The process aimed to retain trees through pruning, cabling, or moving targets where possible before considering removal. • Part of tree risk assessment was based on normal weather conditions which best management practices defined as a 30-year rolling average. The assessment looked at historical regional weather data and experience to determine what was normal. In the winter, the region's southwest storm winds were the most prevalent strong winds when the ground was saturated. The January 2024 storm was not a normal event because it included strong east winds, coupled with ice, snow, and saturated grounds, and trees were not adapted to those conditions. There was a lot that could be done to assess risk potential and to manage/reduce risk to acceptable levels, but risk could not be eliminated altogether because not-normal weather conditions would happen, and healthy trees would fall when forces were too great. The City had to maintain healthy trees, plant trees in the right space, and give them good soil and appropriate water to minimize risk as much as possible. In addition, the 30-year rolling average was always changing. • Lake Oswego scored a 60 on the Community Goal Setting and Assessment Tool developed by the U.S. Forest Service. One of the appendices to the document included a detailed breakdown of how the City scored a 60, which was actually a very good score. There were a few cities who took the assessment the first time and scored in the teens. The gap was not big, and the assessment was a good monitoring tool so that as the years went by and the City was able to accomplish more of the action items, it could retake the assessment and measure its progress. 9. INFORMATION FROM COUNCIL City Council Regular Meeting Minutes Page 9 of 11 May 21, 2024 Mayor Buck stated he and Morgan Holen, the City's contract arborist, attended the Farmers Market on Sunday where Ms. Holen presented the Arbor Month Art Awards to six kids, one of whom was also the winner of the "If I were Mayor" contest. The prize for the winners was a tree and a goody bag. Sunday was also the 2024 Asian American, Native Hawaiian, Pacific Islander (AANHPI) Heritage Month Celebration. The event featured keynote speaker Coach Marshall Cho and remarks from State Representative Daniel Nguyen. LO for Love Leader Kimvi To served as the master of ceremonies for the celebration. 10. REPORTS OF OFFICERS There were no reports of officers provided. 11. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of ORS 192.660 (2)(e) Conduct deliberations with persons designated to negotiate real property transactions; and (f) Consider records that are exempt by law from public inspection. Ellen Osoinach, City Attorney, read the legal parameters for the Executive Session. Council met in Executive Session from 6:26 p.m. to 6:55 p.m. 12. COUNCIL BUSINESS 12.1 City Request of Clackamas County Regarding Proposed Project on Stafford Road and Childs Road. Mayor Buck provided background that the City had received a presentation from the County regarding a proposed safety improvement project to construct a roundabout at the intersection of Stafford Road and Childs Road. To facilitate the project, the County needed to acquire about 9,000 square feet of the City-owned Stevens Meadows property, which abutted Childs Road. The City had heard from the community about the importance of the safety project at the intersection. However, the City's Charter protected Stevens Meadows and prohibited construction of a road over it. The Council discussed legal options and wished for the County to construct the project while preserving the Charter protections. The Council did not want to make a unilateral decision violating the Charter, as voters had approved the protections. The options were to go to court with the County, ask voters in an advisory capacity, or ask voters to amend the Charter to allow the project on a portion of Stevens Meadows. The Council proposed sending a letter to the County stating their desire to refer a ballot measure as the next step. Councilor Wendland confirmed the subject 9,000 square feet of right-of-way was the southern tip of the 25-acre property along the current street. Mayor Buck noted that the County had met with Palisades neighbors, and that topography made shifting the project fully to Metro's side difficult and potentially causing the County to back out due to financial constraints. Councilor Afghan commented that he had voted for the Charter protections intending to preserve the area, but never intended to prevent resolving a safety issue. He supported letting voters City Council Regular Meeting Minutes Page 10 of 11 May 21, 2024 decide. Councilor Verdick concurred with Councilor Afghan and added that this was the most respectful way forward for all parties. Mayor Buck recognized this was an unusual situation for the County given the voter-approved protections, but it was a good project voters wanted. The solution was to engage the community and go to voters. Councilor Wendland commented on the risk of losing the project if the City did not act correctly or quickly. Mayor Buck said there had to be a path forward, and the City was presenting a clear one, knowing the community was committed to the project. City Manager Bennett said that assuming County agreed, the measure must be referred to voters by July to allow the process to play out, and the City would conduct polling on voter inclination. The next time the issue formally appeared before the Council may not be until June when the Staff had final draft language for Councilors to vote on. Mayor Buck noted the County Commissioners had been communicative, having spent years on the project. Councilor Verdick stated the City wanted to work with the County to find a solution respecting the Charter while addressing safety concerns at the busy intersection. Councilor Wendland moved to authorize a letter to the Clackamas County Board from the City Council regarding improvements to the Stafford I Childs Intersection. Councilor Verdick seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Mboup, Corrigan, Afghan, Wendland, and Verdick voting `aye', (6-0). 13. ADJOURNMENT Mayor Buck adjourned the City Council meeting at 7:09 p.m. Respectfully submitted, Kari Linder, City Recorder Approved by the City Council on {insert approval date}. Joseph M. Buck, Mayor City Council Regular Meeting Minutes Page 11 of 11 May 21, 2024 ATTACHMENT 3 CITY COUNCIL REGULAR MEETING ? MINUTES June 4, 2024 aRrr�o� 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 5:32 p.m. on Tuesday, June 4, 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: Mayor Buck, Councilors Corrigan, Afghan, Wendland, and Mboup (via video conferencing). Councilors Rapf and Verdick were excused. Staff Present: Megan Phelan, Assistant City Manager; Ellen Osoinach, City Attorney; Kari Linder, City Recorder; Erica Rooney, City Engineer I Public Works Director; Sonja Johnson, Associate Engineer; Amanda Watson, Sustainability Program Manager 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PRESENTATIONS 4.1 National Gun Violence Awareness Day: June 7. Mayor Buck proclaimed Friday, June 7 as National Gun Violence Awareness Day in Lake Oswego. The full text proclamation was available on the City's website. Cara Chen, Students Demand Action (SDA), spoke about the importance of Gun Violence Awareness Day and noted the impacts of gun violence throughout the community. Gun violence was often preventable through measures such as Extreme Risk Protection Orders (ERPOs) that allow courts to temporarily remove firearms from those who may harm themselves or others. Such common-sense gun measures were being considered at national, state, and local levels. Localities could help to prevent gun violence with upstream mental healthcare access and a strong sense of community as well as shelters and law enforcement response. During the upcoming long legislative session, members of SDA would advocate for a Disarm Hate Bill with members of Oregon's State Legislature. The bill would prohibit those convicted of violent hate crimes from purchasing/possessing firearms to reduce hate-based violence. City Council Regular Meeting Minutes Page 1 of 10 June 4, 2024 Mayor Buck recognized members of SDA present and noted he often saw its members advocating in Salem. He asked Ms. Chen to let him know what he could do to assist in the organization's legislative efforts. 4.2 Juneteenth: June 19. Mayor Buck proclaimed Juneteenth on June 19. The City and community partners, including Respond to Racism, would host an event on Sunday, June 16 from 11 a.m. to 2 p.m. at Millenium Plaza Park. The event program included a keynote speaker, remarks from Councilor Mboup, and a special remembrance for recently deceased community member Bruce Poinsette. More information and the signed proclamation were available on the City's website. 5. PUBLIC COMMENT • Edward Conrad, testified about concerns regarding Lake Oswego's dam, which was classified as a significant risk. While the dam had passed its most recent inspection in March, the engineer/inspector did find vegetation in some of the concrete cracks and suggested the City remove the vegetation. Mr. Conrad had reached out to City Staff confirmed the vegetation would be removed. 6. CONSENT AGENDA 6.1 Approval of an Intergovernmental Agreement with Metro for Disaster Debris Management Grant. Motion: Move to authorize the City Manager to sign an IGA in substantially the form attached with Metro for disbursement of Disaster Debris Management Grant funds. 6.2 Approval of Meeting Minutes. April 16, 2024, Draft Regular Meeting Minutes May 20, 2024, Draft Special Meeting Minutes Motion: Move to approve the meeting minutes as written. END CONSENT Councilor Wendland moved to adopt the Consent Agenda. Councilor Corrigan seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Corrigan, Afghan, Wendland, and Mboup voting `aye', (5-0). 7. ITEMS REMOVED FROM CONSENT AGENDA No items were removed from the Consent Agenda. City Council Regular Meeting Minutes Page 2 of 10 June 4, 2024 8. COUNCIL BUSINESS 8.1 Resolution 24-23, A Resolution of the City Council of the City of Lake Oswego Approving the Update of the City of Lake Oswego Emergency Operations Plan. Megan Phelan, Assistant City Manager, presented the updated Emergency Operations Plan (EOP), noting the current revision reflected the 2023 Council goal to ensure a safe, secure, and prepared community. The EOP was part of the City's comprehensive emergency management approach to mitigate, respond to, and recover from major hazards and threats, although the City recognized overall preparedness responsibility rests with the community. The Emergency Management Executive Committee and department stakeholders worked with a consultant on the update which included a basic plan detailing roles supported by 18 emergency support functions (ESF) that provided specific guidance in areas such as communications, transportation, and hazardous materials, plus a new cyber/infrastructure function. Staff would continue reviewing and comprehensively updating the plan approximately every five years. Councilors discussed the need to stress to residents their individual responsibility in preparing for emergencies and suggested the City put inserts in publications about ways citizens could be better prepared and what items they should keep in their home. Clarifying questions from Councilors were addressed by Staff as noted: • The current EOP was available via the City's website and the updated plan would be posted as well. Hard copies were kept at the City's Emergency Operation Center. • Staff could facilitate a table at the September Emergency Preparedness Fair to introduce people to the concept of the EOP and how it was used to manage and respond to emergencies. That same month, Bonnie Hirshberger, provided an insert in He11oLO related to emergency management. Ms. Hirshberger was also a key partner in reviewing the updates to the EOP and communication through her was another option for citizen information. • The cost to complete the EOP was $60,000, which was absorbed by the City Manager Office budget. • The EOP was a specific operational guide for internal operations and Staff. However, there were training opportunities for the City's partner organizations that could be explored as part of the adoption of the EOP. Staff was working on the"Iron 24"fall exercise, a state-coordinated tabletop focused on earthquake response two weeks after the event. The City would bring in partners like the Red Cross and School District to coordinate jointly on the tabletop exercise, as it had done with past tabletop exercises. • In terms of the community focus, Staff believed that the City should continue to attend neighborhood meetings, HOA events/meetings, and take every opportunity available to talk about the importance of community preparedness, and Neighborhood Enhancement Grant programs allowed neighborhoods to purchase supplies and otherwise be more organized. In addition, the Red Cross had published a good document about how to be more prepared at home that the City could distribute to residents. • Staff worked closely with Prep LO and the State was rolling out a new program through the Office of Emergency Management that would replace a neighborhood program. The City appreciated the efforts of Prep LO and its work to engage and organize the community. • Staff believed the welfare of working teams was part of the ESF checklist. Each ESF had an associated checklist cover sheet that prompted the start of thinking about things that needed to be acquired and/or advanced to the extent possible. The checklists were different depending on the nature of the incident. City Council Regular Meeting Minutes Page 3 of 10 June 4, 2024 • City facilities had what was called a KnoxBox where keys were maintained, and the Fire Department had access. City Hall was also the Police Department and the Department had to the facility if needed. There was generator backup power at the facility, so access cards currently used to access the building should be operational. Redundancy was key because the City could not assume it could rely upon one answer. It had to think about what the next best option and two or three steps was out from there as well. • Two years ago, Staff worked with the Chamber of Commerce to create a business emergency preparedness plan because the sooner businesses can get back up on their feet, the more successful they would be in an emergency. Using that as an inspiration, Staff did work towards drafting a resident guide about some things people should think of, do, and prepare in advance such as supplies households should have on hand and knowing how to turn off the gas and water. However, what was created was almost identical to the information published by the Red Cross and Staff was concerned about coming out with different recommendations to the Red Cross. Because the Red Cross already mass produced the brochures and the City received the brochures for free, handing out the Red Cross brochures seemed the most economical way to go. In addition, the Red Cross was really the expert in terms of emergency management practices. Councilor Afghan moved to adopt Resolution 24-23. Councilor Corrigan seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Corrigan, Afghan, Wendland, and Mboup voting `aye', (5-0). 9. STUDY SESSIONS 9.1 Chapter 52 and 38 Code Amendments Relating to Stormwater. Sonja Johnson, Associate Engineer, presented the Council Report via PowerPoint, noting the drivers for the proposed Code changes were that the City received an MS-4 stormwater permit and was updating its Stormwater Management Manual (SWMM), so Staff wished to reduce conflicts between the SWMM and Municipal Code. The proposed changes removed sections of Code that belonged elsewhere, updated sections to match current policy and procedures, removed sections that duplicated definitions and requirements already stated in other chapters, and updated terminology. In addition, Chapters were renumbered to improve organization and instances of outdated language were removed or revised. Councilors discussed the need to complete the process required to amend the Code and update the SWMM while conducting targeting, discretionary outreach. Clarifying questions from Councilors were addressed by Ms. Johnson and Public Works Director Erica Rooney as noted: • No substantial changes were proposed, and the effort was a simplification of existing processes to be compliant with the stormwater permit. • The City had additional stormwater requirements since 2016, but in general most requirements reverted to the stormwater permit. That permit, which the City had had since the 1990s, was renewed every four to five years. The City received its latest permit in 2021 and had spent the last couple of years updating other programs to match the requirements in the newest permit. There were a couple of changes within the permit that required the City to add additional requirements to its SWMM. City Council Regular Meeting Minutes Page 4 of 10 June 4, 2024 • The outlined enforcement was consistent with State enforcement. The permit required escalating enforcement for violators. Education was the first step in enforcement and if that did not result in the desired effect, then there was a penalty or other means. The City had the ability to remove access to its stormwater system in cases of an illicit discharge. • Stormwater was disposed of in a couple of ways. Developments were required to manage stormwater, so it was released slowly, instead of overwhelming the system. A grassy natural area absorbed water whereas stormwater would run off a paved area within a couple of minutes. The City had stormwater facilities which removed solid particulates like sediment, dirt, or other pollutants, and the stormwater then went into the public stormwater system which went into a stream Stormwater was not sent to the Wastewater Treatment Plant and could not be sent to the plant because it would cause a lot of overflows as seen with Portland's combined system. Lake Oswego had a separate system in which stormwater went into the lake, rivers, or streams or it infiltrated into the ground. • Lake Oswego's permit required the City to capture 80 percent of the annual average runoff which was calculated using models based on the average annual impervious area in the city and the average annual precipitation. • The revisions should make it easier for people to understand the stormwater requirements. The SWMM included all the procedures that needed to be followed and no one should have to worry about following the Code when designing stormwater facilities. With things in both places, there was always the chance that the manual said one thing while the Code said another. The revisions reduced those conflicts and attempted to create industry standard language so that people understood what stormwater was and that stormwater system referred the public stormwater system and not the rivers and streams. The City had a surface water management system that included the public stormwater system plus the rivers and streams, but when stormwater management primarily referred to the public stormwater system. The changes proposed to the Code would provide that language. • The City did not have physical stormwater systems everywhere, and the SWMM and MS-4 permits took into account and gave the City direction on what it needed to do so that it made incremental improvements and when individual houses came in, they accounted for their stormwater, which was not done 30 years ago. Now that houses are bigger and there was not as much yard on some lots for water to infiltrate, the City needed to be more conscientious, effective, strategic in the management of stormwater. The SWMM and Code were tools to help ensure effective management. Staff believed the City was making progress. Though there was capital work that needed to be done, it needed to ensure stormwater management for individual developments to account and manage runoff from development in the best way possible. • The MS-4 permit required annual reporting which included testing of the city's streams. Associate Engineer Johnson collected data samples all year long from the stormwater system so the City could track progress over time. Staff could return to the Council at another time to discuss the annual reports and what the reports showed. • Staff did not know what kind of feedback to expect from the public but would undertake public outreach to avoid surprising the public and the business community. The changes were meant to not make it harder for anyone, including developers, to do the work they had done before and instead would clean up the Code by making it less cumbersome and putting all the requirements in the SWMM. The Code adoption would require a public hearing and Staff wanted to make sure the changes did not catch anyone by surprise. • Staff would ask the Chamber of Commerce to put information in its newsletters for various businesses in the area. When the SWMM was updated, Staff would provide notification of the updates and invite feedback from the building community. The building community would not necessarily be as interested in the Code changes as the SWMM updates. When the SWMM City Council Regular Meeting Minutes Page 5 of 10 June 4, 2024 was updated in 2018, Staff reached out to the business and developer community for comments and would do the same thing for this update sometime in the fall. • Staff could tailor the public outreach to the Homebuilders Association and other stakeholders such as those who came in for stormwater permits and keep the planned online comment form to make it easier to provide comments. • Previously, Staff had spoken before Council about a Code update regarding the Commercial and Industrial Business Inspection program, a state requirement that meant Staff had to visit facilities and ensure hazardous waste was stored properly and the business was not cross connection. That was a different update and not part of what was before the Council this evening. 9.2 Electric Vehicle Charging Strategy. Amanda Watson, Sustainability Program Manager, presented the Council Report via PowerPoint, providing background on the reasons for the strategy, and outlining the goals in the City's Sustainability and Climate Action Plan that provided a framework for the strategy. The strategies presented related to expanding access to electric vehicle (EV) infrastructure for the community as a whole. Electrifying the City fleet was a separate project. • The presentation reviewed the project's objectives and provided an overview of the utility side and customer side of EV charging infrastructure, the three levels of charging and associated costs, charging speeds, usage, power requirements, the current state of EV adoption and charging within the city, public feedback, and expected growth of EVs. The strategies outlined attempted to take an equitable approach that looked at where charging was most needed and looked at how to address gaps in access to reliable and convenient charging to best meet the City's goals. Staff determined Level 2 charging best supported the balance of speed and price to meet the needs of the public and workforce, and it was important to match technology with the specific needs of the community using the infrastructure as well as size constraints. • Draft actions were placed into three categories based on the primary role of the City to educate, enable, and install EV infrastructure, and included two Code-related actions that would require engagement with the Planning Commission. The presentation reviewed expenses associated with installing EV chargers at existing City-owned facilities, noting installation was already planned for new City facilities such as the Lake Oswego Recreation and Aquatic Center and Rassekh Park. • Staff recommended the City pursue all the outlined strategies, except for the right-of-way program. The City needed to address where to best prioritize Staff time, what the timeline should look like, and how to budget for the strategies. Councilors discussed the City's role in helping businesses understand the finances and potential benefits of installing chargers and Mayor Buck felt the City should concentrate its efforts on facilitating the installation of infrastructure where the private market would not otherwise step in, such as at older multifamily/apartment complexes, to ensure those residents had convenient access to EV charging in the future. Councilor Wendland believed that the City should not install more EV charging at City-owned facilities and should not be involved in the EV charger businesses. The free market would work towards charging infrastructure, though the City could encourage the development of infrastructure through policy changes to help with quick and efficient installation. Councilor Afghan suggested the City could install EV charging at its parks. Clarifying questions from Councilors were addressed by Staff as noted: • The City had data on utilization of its chargers, but not public chargers. The City Hall charger and the charger on A Avenue were the most heavily used. The charger at the Maintenance City Council Regular Meeting Minutes Page 6 of 10 June 4, 2024 Center was not used as much, but the Maintenance Center Staff indicated the chargers were getting more repeat visitors. The charger at City Hall was used by City Staff and visitors while the charger at A Avenue was used by the public. Staff recognized some cars as using the City Hall charger daily or for longer amounts of time and some cars used the charger for shorter periods while drivers conducted business in City Hall. • The City had a couple of mechanisms to manage how the City Hall charger was used. If the charger was used for more than two hours, a parking fee was added so it was more expensive to be at the spot for a long amount of time. The City would also enforce people who parked in the spot who were not actively charging. There was nothing preventing someone from charging overnight, but it would not be the most cost-effective option. As the City looked at expanding accessible, reliable, convenient charging, it needed to recognize that accessibility had to do with price and ensure there were lower-cost charging stations. • The per-kilowatt-hour charge at City Hall was low because the City was a commercial customer, and its electricity cost was lower than at-home charging for most people. The price of charging at City Hall was just break-even with the City's cost of electricity. • The City should consider budgeting for installation, capital, and maintenance of chargers going forward. Currently, the facilities teamed managed the City's chargers and there had not been a lot of maintenance issues. However, as the City looked at scaling up charging infrastructure it would need to proactively budget for the infrastructure in a way it may not have in the past. • The City had a role to play in directing private investment to help make it easier to put in charging where the market was not currently meeting the community's needs. Where the private market had installed charger • When private companies voluntarily installed charging stations, there was a business case for it, as seen with Bank of America where Electrify America installed and operated chargers on BOA's site, allowing cost recoupment through pricing, possibly with federal funding at the time of installation. Some kind of intervention was usually needed to support investment, and the City could employ education strategies, such as informing site owners about State and PGE incentives, to encourage installation. The incentives could provide up to $6,000 per charger in rebates for multifamily and public charging, which many entities may not be aware of. Although rebates came with barriers, such as upfront costs, education could still be impactful. Additionally, the City might provide incentives or other support to facilitate investments in charging infrastructure where it might not otherwise occur. • There were a number of different federal programs for charging infrastructure, however one program was restricted to rural and lower-income areas, so Lake Oswego did not quality. The City, along with a cohort of other cities led by Tualatin, applied for the Charging and Fueling Infrastructure Grant, which was a less restricted pot of funds, but was not successful in the first round, though Staff was informed the cohort may reapply. The best option for Lake Oswego currently were the State and PGE rebates, which the City was eligible for each time it installed a charger. While that program remained active, the City could receive anywhere from $750 to $6,000 per Level 2 charging port. • Staff had not researched charging infrastructure in Europe but understood Europe had more advanced regulations. For example, each electric vehicle was required to have its own charging cord to plug into public charging. In charge of EV growth, U.S. and global sales were expected to grow 20 percent in 2024, so there was strong growth in demand despite current market volatility. • The City would need to develop an inventory of older, multifamily buildings that might benefit from outreach regarding financial incentives to provide charging for its residents as the next step in an education strategy. It could be a challenge to identify the correct contact at City Council Regular Meeting Minutes Page 7 of 10 June 4, 2024 multifamily buildings, but Staff could create a list to identify the subset of buildings without charging. • The City of Seattle was at an advantage because it was a municipal owned electric utility. As the municipal utility, Seattle wanted to install a certain number of chargers and put out an "opt- in" survey residents could voluntarily answer about the location of charging facilities. The survey was great way to gauge interest in where the charging stations needed to be. Lake Oswego could do a similar survey to gauge interest and then pass the data along to private companies rather than investing in the chargers itself. • There were strategies specific to subsidized affordable housing that were considered more appropriate than those for traditional multifamily housing. Programs through some nonprofits worked to introduce residents to EVs, taking a more inclusive approach than simply installing a charging station, which may not be well received. Community partners were aware of the needs of future residents and are working to address them. For example, a Hacienda CDC project in Portland conducted an electric vehicle car share pilot program. Mayor Buck stated the Council had expressed some reservations in general about installation of charging on City property. There was a consensus that Councilors would like a more sustainable pricing model for the long-term maintenance and operation of the facilities, and the Council would like to explore other ownership models. Before the City pursued any Code changes, the Council would like more data from the City of Portland and the development community. Mayor Buck directed Staff to provide the data prior to any involvement from the Planning Commission so the Council could provide clear direction. Mayor Buck asked for further clarification on charging in the right-of-way. Ms. Watson replied that the idea was targeted at denser, multifamily communities or developments without dedicated off-street parking, such as cottage clusters.The City could require developers to provide a charger in the right-of-way if they are not providing dedicated charging onsite. This could be on a utility/light pole or a pedestal charger. Since residents would be parking on the street, developers would need to install and pay for the charging infrastructure. This concept could include guidelines like, "Only where there is sufficient space in the right-of-way." Mayor Buck commented that it was a nice thing to pursue, assuming it made practical sense, but local developers had already indicated that in order to have marketable housing in Lake Oswego, parking had to be provided. Councilor Wendland asked if PGE was aggressively pursuing the installation of pull-down chargers. Ms. Watson responded that PGE's transportation electrification plan included incorporating several hundred chargers, prioritizing lower-income communities. PGE had a pull- mounted charger pilot in Southeast Portland, which could be a solution for Lake Oswego. However, they would need to assess the capacity of local poles, as PGE previously determined there were no suitable poles for multifamily communities with sufficient capacity. Newer charging technologies, including modular and cheaper options, and innovations like Seattle's pole-mounted chargers utilizing excess electrical capacity from LED streetlights, was something Lake Oswego could evaluate. The chargers would be compatible with all electric vehicles. There were two main adaptors currently in use, but the industry was moving towards compatibility, and EV owners often had adapters. Ms. Watson said Staff could return to the Council with some potential funding options so as the City entered budget discussions, there could be more in-depth conversations about costs for City facilities. Aside from the Charging and Fueling Infrastructure federal grant mentioned earlier,there were not many options for grant monies. The City had applied for that grant with a cohort of other cities, which made it more competitive. While the cohort was not successful in the first round, it City Council Regular Meeting Minutes Page 8 of 10 June 4, 2024 received notes that it was highly competitive and no projects in Oregon had been selected so it was likely the group would reapply. Other funds were available in the form of rebates. The Infrastructure Act had offered a competitive grant for charging infrastructure in low income and rural areas,which Lake Oswego did not qualify for.There were also a lot of grants for fast charging along highways. Oregon was getting more than $65 million to install fast charging along Interstates and major highways, and there would be more fast-charging hubs along 1-205 which directly benefited Lake Oswego. Most federal funding had gone to states to build out the electric highway and it was up to cities to meet gap within communities. 10. INFORMATION FROM COUNCIL Mayor Buck provided an update on the recent interviews for Boards and Commissions for the upcoming year. He thanked everyone for their time and participation and noted the City received an incredible response this year, including a record number of student applicants. Selections would be approved at the next City Council meeting. The City held its first Pride celebration on Sunday at Millennium Park. Despite the rain, the event had an amazing turnout. LO for Love organized the celebration, receiving funding from the City and the business community. The event featured many vendors, local businesses, and the library. Mayor Buck summarized recent Metro discussions on the future of the Supportive Housing Services program. The program was set to sunset in six years, and key questions included whether to extend the program, adjust the sunset period, or change the tax rate. There was the need for a clear understanding of the consistent funding required as current funds remain largely unspent. Metro had not made any decisions and is gathering input from stakeholders. The unique needs of different jurisdictions had to be met. Lake Oswego and Clackamas County have different needs compared to Central Portland and Washington County. The program's scope could be expanded to allocate more funds for housing in addition to supportive services to meet ongoing unmet housing needs. The funds were currently directed towards supportive needs such as behavioral health and food security, but additional resources for housing would help the program meet diverse local needs while retaining the original intent. Next week, the Clackamas County Coordinating Committee (C4) would host its annual retreat. Discussion topics would include economic development in the county, employment lands, and job creation. 11. REPORTS OF OFFICERS Ms. Phelan appreciated the opportunity to act as City Manager and thanked the Councilors for the productive meeting. 12. ADJOURNMENT Mayor Buck adjourned the City Council meeting at 8:14 p.m. City Council Regular Meeting Minutes Page 9 of 10 June 4, 2024 Respectfully submitted, Kari Linder, City Recorder Approved by the City Council on {insert approval date}. Joseph M. Buck, Mayor City Council Regular Meeting Minutes Page 10 of 10 June 4, 2024