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Agenda Packet - 2024-07-16503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY AGENDA CITY COUNCIL MEETING Tuesday, July 16, 2024 3:00 p.m. City Hall Council Chamber - 3rd Floor 380 A Avenue, Lake Oswego, OR 97034 Staff Contact: Kari Linder, CityRecorder@lakeoswego.city Virtual Access This meeting will be held in person. To participate remotely, please email the City Recorder by noon the day of the meeting. ADA Accommodation Requests lakeoswego.city/accommodation 503-635-0282; Relay 711 Please allow four business days to process your request. Translation Services Traducción o interpretación 翻译或传译 통역혹은번역 503-534-5738 This meeting will be livestreamed on the City's YouTube Channel and at lakeoswego.city. The meeting will also be broadcasted live on Tualatin Valley Community TV; check tvctv.org for details. 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE 4.PRESENTATIONS 4.1 Distinguished Service Awards - Bruce Poinsette (Development Review Commission) and Doug McKean (PARKS Board). 5.PUBLIC COMMENT The purpose of Public Comment is to allow community members to present information or raise an issue regarding items not on the agenda or regarding agenda items that do not include a public hearing. A time limit of three minutes per individual shall apply. Public Comment will not exceed thirty minutes in total, unless changed by the Mayor. If you are unable to attend the meeting and prefer to provide public comment in writing, by phone or electronically, please email the City Recorder by noon the day of the meeting. 6.CONSENT AGENDA The Consent Agenda allows the City Council to consider items that require no discussion. An item may only be discussed if it is pulled from the Consent Agenda. The City Council makes one motion covering all items included on the Consent Agenda. Motion: Move to adopt the Consent Agenda. Page 2 503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 6.1 6.2 6.3 6.4 6.5 6.6 2024 Council Goals Second Quarter Update. Motion: Move to accept the second quarter goals report. Pavement Striping and Marking Services Contract Award. Motion: Move to authorize the City Manager to sign a Public Improvement Street Maintenance Contract with Specialized Pavement Marking (SPM) LLC, for City Street Striping in the amount of $276,676.35. Resolution 24-22, A Resolution of the City Council of the City of Lake Oswego Approving the Mayor to Execute a Municipal Judge Employment Agreement. Motion: Move to adopt Resolution 24-22. Resolution 24-26, A Resolution of the City Council of the City of Lake Oswego Authorizing the City Manager to Sign the Intergovernmental Agreement with the Lake Oswego School District to Continue to Provide School Resource Officer Services for Fiscal Year 2024-2025. Motion: Move to adopt Resolution 24-26. Resolution 24-32, A Resolution of the City Council Adopting the City of Lake Oswego Addendum to the Clackamas County Multi-Jurisdictional Natural Hazards Mitigation Plan. Motion: Move to adopt Resolution 24-32. Approval of Meeting Minutes. May 7, 2024, Draft Regular Meeting Minutes May 21, 2024, Draft Regular Meeting Minutes June 4, 2024, Draft Regular Meeting Minutes Motion: Move to approve the minutes as written. 7.ITEMS REMOVED FROM CONSENT AGENDA Page 3 503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 8. PUBLIC HEARING 8.1 Ordinance 2946, An Ordinance Annexing to the City of Lake Oswego One Parcel, Consisting of 0.54 Acres at 13699 Knaus Road; Declaring City of Lake Oswego Zoning of R-15, Pursuant to LOC 50.01.004.5(a-c); and Removing the Territory from Certain Districts (AN 24-0001). Public Hearing Process: 1. Review of hearing procedure by Ellen Osoinach, City Attorney 2. Staff Report by Paul Espe, Associate Planner 3. Testimony – the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; 5 minutes per individual 4. Questions of Staff Motion: Move to enact Ordinance 2946. 9. STUDY SESSION 9.1 Housing Production Strategy Report (PP 22-0005). 10. COUNCIL BUSINESS 10.1 Wastewater Treatment Facility Request for Proposals Honorarium. Motion: Move to authorize the City Manager to award honoraria payments to responsive proposals to the Request for Proposals for the Wastewater Treatment Facility project not to exceed $500,000. 10.2 Resolution 24-28, A Resolution of the City Council of the City of Lake Oswego Submitting a Measure to the Voter’s at the November 5, 2024 General Election to Allow a Road Safety Project at the Intersection of Stafford Road and Childs Road. Public Comment Process: 1. Review of comment procedure by Ellen Osoinach, City Attorney 2. Presentation by Madison Thesing, Assistant to the City Manager 3. Comment– the following time limits shall be observed, but may be changed by the Council: 3 minutes per individual 4. Questions of Staff Motion: Move to adopt Resolution 24-28. Page 4 503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 10.3 Resolution 24-17, A Resolution of the City Council of the City of Lake Oswego Submitting a Measure to the Voters at the November 5, 2024 General Election Prohibiting Psilocybin Facilities Within the City. Public Comment Process: 1. Review of comment procedure by Ellen Osoinach, City Attorney 2. Comment – the following time limits shall be observed, but may be changed by the Council: 3 minutes per individual 3. Questions of Staff Motion: Move to adopt Resolution 24-17. 11. INFORMATION FROM COUNCIL 12. REPORTS OF OFFICERS 13. EXECUTIVE SESSION: The Lake Oswego City Council will meet under authority of ORS 192.660 (2)(d) Conduct deliberations with persons designated to carry on labor negotiations; and (f) Consider records that are exempt by law from public inspection. 14. ADJOURNMENT 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: 2024 Council Goals Second Quarter Update Meeting Date: July 16, 2024 Report Date: July 1, 2024 Staff Member: Martha Bennett, City Manager Department: City Manager’s Office Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded☐Resolution ☒Not Applicable ☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: Accept the second quarter report for the 2024 City Council Goals and Initiatives Recommended Language for Motion: Move to accept the second quarter goals report. Project / Issue Relates To: 2024 Council Goals and Initiatives. Issue before Council (Highlight Policy Question): ☒Council Goals/Priorities ☐Adopted Master Plan(s)☐Not Applicable BACKGROUND In January, the City Council set policy goals and selected key initiatives for its work in 2024. Those goals and initiatives were adopted on February 20, 2024. The Council’s goals and initiatives set the City’s agenda for the year, and are the highest priority items for limited resources, including agenda time, staffing, and budget allocations. Staff reports to the Council quarterly on progress on the initiatives and goals. The first quarter report was adoption of the workplans. This is the second quarter report for 2024. 6.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY DISCUSSION Some of the highlights of the last quarter include: • Adoption of an updated Emergency Operations Plan to guide City response to emergencies in June. • Approval of an extension of the Disposition and Development Agreement with Urban Development + Partners for redevelopment of the North Anchor Blocks. This extension recognizes the progress UD+P has made on the hotel development and the continuing effect of economic conditions on multi-family development. • Significant outreach about the possibility of a community center in Lake Grove. This project has been placed on hold, pending action by the School District on their long- range facility plans. • Council discussion and direction on a draft strategy for electric vehicle charging in Lake Oswego. • Adoption of the Urban and Community Forestry Plan in June. Council will take the next steps on this goal in the fall. • Completion of the review of the City’s finances and long-term financial projections. • Opening of the Skate Park at Rassekh Park, and significant progress on the LORAC, which is on target for opening at the end of the year. Council has done significant work on several of the other initiatives, and that work is outlined more fully in the status report (Attachment 1). ATTACHMENTS 1. 2024 Second Quarter Goals Status Report 2. 2024 Council Goals and Initiatives 3. 2022 Council Agreements 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 2024 COUNCIL GOALS AND INITIATIVES Second Quarter Report July 16, 2024 GOAL: Ensure a safe, secure, and prepared community COUNCIL INITIATIVES: PROGRESS TO DATE: Continue implementation of the process to increase preparedness of Lake Oswego residents, especially seniors and people with disabilities, in the event of a disaster City Council approved the updated Emergency Operations Plan at their meeting on June 4, 2024. The adoption of the City of Lake Oswego addendum to the Clackamas County Multi-Jurisdictional Natural Hazards Mitigation Plan is going before City Council on July 16, 2024 for approval. On July 12, staff will meet with the 50+ Advisory Board to discuss emergency management and seek feedback on ideas of how the City can increase preparedness to seniors. Also in July, staff are planning a site visit to Rogue Valley Manor, a retirement community in Medford, OR to learn more about their emergency preparedness efforts in order to bring some best practices and lessons learned back to Lake Oswego. GOAL: Support business investment and job creation in Lake Oswego COUNCIL INITIATIVES: PROGRESS TO DATE: Break ground on the North Anchor Redevelopment project In June, the LORA Board approved a 24-month extension to the North Anchor Disposition and Development Agreement with Urban Development + Partners. This extension provides additional time for UDP to assemble project funding. UDP is confident and poised to deliver on the project funding as evidenced by their upcoming joint venture partnership with a prominent local investor on the hotel development. Staff will continue to work with UDP on strategies to demolish the buildings on the site as soon as possible. Update the Lake Grove Urban Renewal Plan and begin work on a plan to use urban renewal to support the redevelopment of Foothills The Lake Oswego Redevelopment Agency Board directed staff to prepare a plan to close the East End Redevelopment Plan (EERP) in 2028, increase the maximum indebtedness (MI)and consider adding project(s) to the Lake Grove Village Center Urban Renewal Plan (LGVCURP), and update the ATTACHMENT 1 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Foothills Plan (FHP) and prepare a new urban renewal plan for the area. In February, the Board received information on how to move forward with the following items. In summary: • EERP: When the time comes, the Plan can be closed by passage of a Resolution. • LGVCURP: Upon direction from the Board to consider moving forward with increasing the MI, a study session will be held to discuss projected TIF revenue, project(s) to add and funding strategies. • FHP: Staff submitted a letter of interest to Metro for Metro’s 2040 Planning and Development Grant program to fund the full cost of the Plan update. The update may take up to 24 months to complete. Applications are due in September with grants to be awarded in December. After the update is completed, a new urban renewal plan will be developed for the area to help fund the projects identified in the updated FH Plan. Implement the initiatives in the 2022 Economic Development Strategy The Community Development (CD) Director held two quarterly meetings with the Chamber in March and June to review progress in completing tasks in the Chamber’s scope of work. Staff is also working with the Chamber to draft the first biennial business community survey to inform the City’s economic development strategy as well as the upcoming comprehensive review of the Development Code in 2025. The Chamber will be conducting the survey over the summer. The Assistant City Manager (ACM) continues to attend monthly Chamber meetings and the ACM and CD Director both attend new business meet and greets with the Chamber. Develop a funding strategy for a longer-term contract with the Chamber of Commerce to implement a portion of the 2022 Economic Development Strategy. Evaluate the possibility of the business license fee as a funding option Initial research of the current Business License program is underway, including evaluating revenue generated by the fees. Through summer, staff will be researching other cities’ models and exploring how revenues could be used in the future. Staff will present revenue use alternatives, such as ongoing funding for the Chamber contract, for City Council consideration this fall. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY GOAL: Foster a welcoming and inclusive community where all people have the opportunity to thrive and have equitable access to City services COUNCIL INITIATIVES: PROGRESS TO DATE: Continue efforts related to DEI, including: prioritize equity in the delivery of city services; formalize a translation and interpretation policy; explore a partnership with LOSD to host an annual event welcoming new residents to the city; and provide information on how to engage and ways to access services and programs Staff has developed an in-house training program for all employees. The desired outcomes of this Professional Development Program include: • Providing ongoing professional development and learning opportunities • Enhancing understanding of City-wide initiatives, and providing a baseline understanding of the ADA, the Sustainability and Climate Action Plan, and the City’s DEI Action Plan to support these key Council goals. • Increasing employee engagement • Reinforcing the City’s mission and values The first element of this program is mandatory training sessions for all departments on ADA, Sustainability, and DEI. Staff is also developing a curriculum of non-mandatory training sessions, based on employee requests, department needs, and other city-wide priorities City staff is developing a comprehensive Language Access Plan, in collaboration other cities, counties, and jurisdictions, including Metro, Washington County, City of Salem, Hillsboro and Woodburn. Since first offering translation in 2021, there has been a significant increase in translation requests, particularly Library and Parks and Recreation. The implementation of a Language Access Plan will ensure access to City services and government functions for members of our multilingual community and will comply with Title VI of the Civil Rights Act and Executive Order 13166. The City of Lake Oswego is collaborating with the Lake Oswego School District to host three events for families new to Lake Oswego and the LOSD. These events will be held at various locations including Luscher Farm, George Rogers Park and the Library. The purpose of these gatherings is to introduce new students and their families to City services and programs available to Lake Oswego community members. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY GOAL: Combat climate change and strengthen the community’s resilience to climate impact COUNCIL INITIATIVES: PROGRESS TO DATE: Adopt a facilities policy and fleet policy that integrates climate and sustainability. Integrate climate goals and issues into the capital improvement plan Department directors approved a fleet management policy that takes an “EV-first” approach, requiring purchase of EVs for light duty fleet vehicles as long as the electric version meets operational needs, any cost premium is within 10%, and charging is in place or planned for. The policy will be implemented through the new Intranet ticketing and asset management system. Sustainability and Engineering staff are beginning work on integrating climate goals and issues into the CIP, with assistance from the City Manager’s Office Kincaid summer intern who is conducting a review of best practices from other local governments. Develop strategies to increase clean energy use and energy efficiency decisions by residents and businesses On June 4, City Council discussed a draft EV Charging Strategy focused on expanding access to EV charging to support electric vehicle adoption across the community. Council will discuss next steps at the July 30 Council meeting. The Sustainability Advisory Board tabled at the Lake Oswego Farmer’s Market on May 18 and shared information with visitors about electric landscaping equipment and financial incentives that are available for switching to an electric vehicle and clean energy home upgrades. The Sustainability Program Manager has been conducting outreach to external groups including the Lake Oswego Sustainability Network, Solar Oregon, and Energy Trust of Oregon to learn about existing initiatives and programs aimed at increasing clean energy use and energy efficiency by residents and businesses, and identify opportunities for the City to participate in and/or support those efforts. Work on development of a Community Green Tariff program has paused; staff are waiting for an update from PGE. The Willamette Shoreline Consortium approved funding to add rooftop solar to the Willamette Shore Trolley Barn, which is owned by the City of Lake Oswego. City staff will be leading the RFQ process to select a contractor for the project. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Adopt an updated Urban and Community Forest Plan. Start the process for targeted amendments to the Tree Code after adoption of the Plan Completed; the updated Urban and Community Forestry plan (UCFP) was adopted by the Council on June 18. A study session is scheduled with the Council in November to define the general scope and process for Tree Code amendments, which will address several actions identified in the newly adopted UCFP implementation plan. GOAL: Strengthen public trust in the City through continuous improvement, outstanding customer service, infrastructure investments, and fiscal stewardship COUNCIL INITIATIVES: PROGRESS TO DATE: Collaborate with the City of Portland to make a financially and environmentally responsible long- term investment in a wastewater treatment plant. In January 2024, phase one (90%) deliverables were received. In May 2024, Council authorized a special procurement for a design, build, operate, and maintain contract. The project team is developing procurement documents while continuing to coordinate land acquisition, environmental permitting, and project financing tasks. Develop a strategy for an all-ages and all-activities community center on the west side of town that would include event and meeting spaces, public services, and may include library services. Collaborate with LOSD and other stakeholders as part of this project. Preliminary planning and early stakeholder communications related to this goal were completed in Q2. This project is currently paused, pending future action by the Lake Oswego School District about their long-term facility needs and plans. Begin a needs assessment and community engagement process to rebuild the South Shore Fire Station. Staff is coordinating with the Planning Department to complete a “Planning Consultation” that will help determine land use and the variety of City and State Code issues that may need to be addressed as this project progresses. In September, Staff will ask Council to approve the framework to establish a short-term Community Task Force to complete a Needs Assessment and a Community Engagement Plan. Staff will also use the Task Force to work with a structural engineering/ architectural firm to determine the structural integrity of the current facility and will develop options for Council’s consideration. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Conduct a long-term strategic review of the City’s finances, including revenues, expenditures, and capital funding. Completed at the May 2, 2024 Budget Committee meeting. GOAL: Invest in Lake Oswego’s high-quality parks, natural areas, and recreational amenities COUNCIL INITIATIVES: PROGRESS TO DATE: Guide delivery of the LORAC and Golf Course and oversee the launch of operations of these facilities. Projects are on schedule for late Fall/Early Winter opening. Staff recruitment is underway for critical staff and will continue until opening. Operational plans and emergency action plans are in development. Adopt Parks Plan 2040. Public engagement is continuing, assessments are underway and goals reacting to community input are being developed. Prioritize and adopt a funding strategy for partially funded parks projects. City Council provided direction for investment of the Metro Local share, prioritizing: Willamette Greenway, West Waluga paths and Luscher access and parking. The Parks Department will be presenting Rassekh Phase 2 to OPRD for funding through the Local Government Grant Program ($850K) matched with Parks SDC’s to fund Phase 2. GOAL: Improve transportation connections, mobility and safety for all travelers and all types of trips in Lake Oswego COUNCIL INITIATIVES: PROGRESS TO DATE: Continue construction of sidewalks and pathways, focusing on safe routes to schools. In May, Council approved of the construction contract for Douglas Way, the fourth and final piece of the Group 1 pathways In March the City hired HHPR to begin the process of design work for the 2nd Group of pathway projects, as identified by TAB, and approved by Council. Public engagement meetings on these projects will occur in July and August. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY GOAL: Conserve the community’s character, sense of place, and quality of life by planning for change and growth COUNCIL INITIATIVES: PROGRESS TO DATE: Continue work on key housing initiatives, the housing production strategy, guiding the HACC/Metro project on Boones Ferry Road, and support for other non-profit led housing projects Housing Production Strategy (HPS) The HPS Task Force held its final meeting and the draft HPS report was reviewed by the Planning Commission in June. A study session with the Council on the draft HPS report will be held on July 16 and will be followed by public hearings with the PC in September and the Council in October. The HPS report is on track to be adopted on schedule by the end of the year as required by HB 2003. Support for Non-profit led Housing Projects In April, Council approved a Nonprofit Corporation Low Income Housing Tax Exemption program and in June the Mercy Housing NW Mercy Greenbrae affordable housing project was the first project to receive approval for the tax exemption in the upcoming tax year. In June, Hacienda CDC submitted their land use application for the affordable housing project at the former Boones Ferry Road staging site. All city land use application fees are being waived as a qualified affordable housing project. Adopt the "20 is plenty" speed program for residential/local streets. The April TAB meeting included a presentation by the City of Tigard regarding their experience with implementing a “20 is Plenty” program. A number of questions resulted, and will be responded to at the next TAB meeting in July. Development of a strategy for Council’s consideration is anticipated by end of year. 2024 COUNCIL PREFERRED FUTURE, GOALS, AND INITIATIVES Adopted on February 20, 2024 Our Preferred Future In 2040, Lake Oswego is a safe and welcoming community where people and families at all stages of life, backgrounds, and abilities thrive. Our incomparable quality of life is founded on outstanding municipal services; destination dining and shopping districts; innovative businesses; premier schools; varied housing options; our spectacular setting along Oswego Lake and the Willamette River; a deep connection to a beautiful and healthy natural environment; arts, cultural and educational opportunities; and exceptionally engaged people. Ensure a safe, secure, and prepared community •Continue implementation of the process to increase preparedness of Lake Oswego residents, especially seniors and people with disabilities, in the event of a disaster* Support business investment and job creation in Lake Oswego •Break ground on the North Anchor Redevelopment projects* •Update the Lake Grove Urban Renewal Plan and begin work on a plan to use urban renewal to support the redevelopment of Foothills * •Implement the initiatives in the 2022 Economic Development Strategy* •Develop a funding strategy for a longer-term contract with the Chamber of Commerce to implement a portion of the 2022 Economic Development Strategy. Evaluate the possibility of the business license fee as a funding option Foster a welcoming and inclusive community where all people have the opportunity to thrive and have equitable access to City services •Continue efforts related to DEI, including: prioritize equity in the delivery of city services; formalize a translation and interpretation policy; explore a partnership with LOSD to host an annual event welcoming new residents to the city; and provide information on how to engage and ways to access services and programs* Combat climate change and strengthen the community’s resilience to climate impacts •Adopt a facilities policy and fleet policy that integrates climate and sustainability. Integrate climate goals and issues into the capital improvement plan ATTACHMENT 2 • Develop strategies to increase clean energy use and energy efficiency decisions by residents and businesses • Adopt an updated Urban and Community Forest Plan. Begin implementation of any non-regulatory elements in the plan. Start the process for targeted amendments to the Tree Code after adoption of the Plan* Strengthen public trust in the City through continuous improvement, outstanding customer service, infrastructure investments, and fiscal stewardship • Collaborate with the City of Portland to make a financially and environmentally responsible long- term investment in a wastewater treatment plant* • Develop a strategy for an all-ages and all-activities community center on the west side of town that would include event and meeting spaces, public services, and may include library services. Collaborate with LOSD and other stakeholders as part of this project • Begin a needs assessment and community engagement process to rebuild the South Shore Fire Station • Conduct a long-term strategic review of the city's finances, including revenues, expenditures, and capital funding* Invest in Lake Oswego’s high-quality parks, natural areas, and recreational amenities • Guide delivery of the LORAC and Golf Course and oversee the launch of operations of these facilities* • Adopt Parks Plan 2040* • Prioritize and adopt a funding strategy for partially funded parks projects Improve transportation connections, mobility and safety for all travelers and all types of trips in Lake Oswego • Continue construction of sidewalks and pathways, focusing on safe routes to schools* • Adopt the "20 is plenty" speed program for residential/local streets Conserve the community’s character, sense of place, and quality of life by planning for change and growth • Continue work on key housing initiatives, the housing production strategy, guiding the HACC/Metro project on the Boones Ferry Road, and support for other non-profit led housing projects* *an asterisk indicates Council initiatives continuing from last year COUNCIL AGREEMENTS January 21, 2022 SHARED PRINCIPALS We share principals about the role of the Council in governance, including: •Council is uniquely responsible for the long-term vision and policy direction of the City •We are all here to make Lake Oswego a great community •Council time is valuable •We value transparency, open communication, and public engagement •A healthy Council invites dialog and deliberation about different points of view •We share the responsibility for careful stewardship of the City’s resources •We value the diversity of political thought in our community and our active, engaged community COUNCIL MEETINGS •We focus on policy leadership by working together to address big picture questions •To make the most efficient use of time in Council meetings, we will: o Place the issues that are most important and urgent at the beginning of Council agendas o Place topics with public input as early on the agenda as possible o Strive to get our informational questions answered before meetings o Come to meetings prepared o Request a study session if more time is needed for discussion o Stay focused on the topic at hand •Council deliberation should be clear. To accomplish this, we will: o Separate inquiry from deliberation o Offer a motion before deliberation starts, make our motions straight forward o Rely on the City Attorney for procedural advice o Take a break after contested public hearings if needed •Council deliberation should be collegial. To accomplish this, we: o Work to find commonalities and build consensus o Focus on the issue not the person, organization, or jurisdiction o Avoid criticizing each other, City staff, or other people in public meetings o Address concerns about other people, including one another, privately o Avoid bringing election-related politics into Council meetings •We meet when needed but only when needed •We work to complete agendas in 4 hours. If pressing items remain, we schedule special meetings •In executive sessions, we rely on the City Attorney to keep us in the legal parameters of the topic ATTACHMENT 3 2 COUNCIL COORDINATION • We understand that we will not all agree with every decision of the Council o Once a decision is made by the Council, we will represent and support the decision of the Council to outside groups, even if we were not in the Council majority o If a Councilor continues to be in opposition to a decision made by the Council, a member can ask the Mayor to add discussion to a future City Council meeting for further deliberation • We will provide regular reports from our liaison assignments during City Council officer reports We will seek Council input as needed when representing the City to outside groups • We will engage the full Council in a discussion about the City’s position when we are representing the City on a project that could be controversial COMMUNICATIONS • Mayor and City Manager are responsible for coordinating responses to external communications requests and will keep Council informed, especially on urgent or controversial matters • We agree to keep each other informed if we speak or write to the media about a topic related to City business • Councilors can respond directly to comments or suggestions from people about policy issues. • Councilors should refer technical or operational issues to staff for a response • At times, the City Council may want issue a statement about an issue or event. Statements should be an expression of the Council values, policies, and commitment to the community o If the matter relates to City operations, directly or indirectly, City staff will work with Council to issue a statement through the City’s established communication channels o If the matter is not related to the City or community, we will strive to develop a consensus of the Council on the need and objective of a statement, then determine the most fitting communication channels COUNCIL DIRECTION TO STAFF TO SUPPORT THESE AGREEMENTS • Provide regular updates on Council goals • Provide sufficient information to support the Council’s work in setting policy direction and making good long-term decisions • Keep the Council informed about projects or programs that are controversial or likely to appear in the media • Collaborate with the Mayor to schedule study sessions on important policy and operational issues • Provide clear procedural advice, especially in public hearings and executive sessions 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Street Striping Services - Annual and On-Call Work Contract Award Meeting Date: July 16, 2024 Report Date: July 9, 2024 Staff Member: Edward Van Buren, Deputy Director Department: Public Works Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded☐Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: Approve contract for Street Striping Services for Annual and On-Call Work Recommended Language for Motion: Move to authorize the City Manager to sign a Public Improvement Street Maintenance Contract with Specialized Pavement Marking (SPM) LLC, for city street striping in the amount of $276,676.35. Project / Issue Relates To: Public Works Street Maintenance Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable EXECUTIVE SUMMARY The City of Lake Oswego Public Works Department requested competitive bids from qualified bidders for pavement striping services on the city roadway and other right-of-way areas. Services covered under this contract are at the same terms and provisions of the contract, and at the prices as specified in the contractor’s price. 6.2 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY BACKGROUND The City of Lake Oswego street system includes 178 miles of roadway that must be maintained to ensure safety and drivability. Part of the ongoing maintenance includes striping and marking work that is completed on an annual basis. The city sought quotations for striping and marking services to be completed on city streets and right-of-way areas. This includes centerline and fog line striping work and marking work for crosswalks, turn lanes, stop bars, and other roadway markings. The city wishes to award a one (1)-year contract with the option to extend the contract for up to four (4) additional one (1)-year terms. The contractor shall provide all materials and services that will fulfill or exceed the requirements and conditions outlined in the awarded contract. Council approval is needed due to the cost of the contract. The costs are already covered in the approved budget. SPECIFICATION OF SERVICES All striping and marking work is to be done in accordance with the 2021 Oregon Standard Specifications for Construction, Section 00850, Common Provisions for Pavement Markings. Unless otherwise instructed by the project manager, all lines and markings shall be placed in the same location, and be the same dimensions as the markings were, prior to the start of work. DISCUSSION • Only one company bid on this contract • This was the single bid submitted for this work • The winning bidder is the same company that the City of Lake Oswego has used historically • Winning bidder is familiar with the city, topography, and street striping needs RECOMMENDATION Move to authorize the City Manager to sign a Public Improvement Street Maintenance Contract with Specialized Pavement Marking (SPM) LLC, for city street striping in the amount of $276,676.35. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-22, Authorizing the Mayor to Execute a Municipal Judge Employment Agreement Meeting Date: July 16, 2024 Report Date: July 5, 2024 Staff Member: Megan Phelan, Assistant City Manager Department: City Manager’s Office Action Required Advisory Board/Commission Recommendation ☐Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded ☒Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: Approve Resolution 24-22, authorizing the Mayor to execute a Municipal Judge employment agreement Recommended Language for Motion: Move to adopt Resolution 24-22. Project / Issue Relates To: None Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable ISSUE BEFORE COUNCIL Should the City Council authorize the Mayor to execute a Municipal Judge employment agreement? BACKGROUND After conducting a recruitment for the Municipal Judge position, the City Council has identified a final candidate with the experience, knowledge, and skills to provide superior service in this 6.3 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY position. The parties have reached agreement on an employment contract, attached as Exhibit 1 of Resolution 24-22. RECOMMENDATION Approve Resolution 24-22 authorizing the Mayor to execute a Municipal Judge employment agreement. ATTACHMENTS 1. Resolution 24-22, with Exhibit 1 RESOLUTION 24-22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE MAYOR TO EXECUTE A MUNICIPAL JUDGE EMPLOYMENT AGREEMENT. WHEREAS, the City Council has conducted a recruitment for the position of Municipal Judge; and WHEREAS, the City Council has identified a candidate with the experience, knowledge, and skills to provide superior service as Municipal Judge; NOW THEREFORE, BE IT RESOLVED, that: 1.The Mayor is authorized to execute an Employment Agreement, substantially in the form attached as Exhibit 1, hiring Cierra Brown to serve as Municipal Judge for the City of Lake Oswego, with the term of office to begin on July 31, 2024; 2.This resolution shall take effect upon passage. Approved and adopted by the City Council of the City of Lake Oswego at a regular meeting held on the 16th day of July, 2024. AYES: NOES: ABSTAIN: EXCUSED: __________________________ Joseph M. Buck, Mayor ATTEST: ___________________________ Kari Linder, City Recorder APPROVED AS TO FORM: _________________________ Ellen Osoinach, City Attorney ATTACHMENT 1 Page 1 – Municipal Judge Employment Agreement MUNICIPAL JUDGE EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT (“AGREEMENT”) is made and entered into this 16th day of July, 2024 by and between the City of Lake Oswego, Oregon (“City”), and Cierra Brown (“Employee”). Recitals WHEREAS, the City desires to employ Employee as the Municipal Judge of the City of Lake Oswego; and WHEREAS, Employee desires to accept the position of Municipal Judge of the City of Lake Oswego. Agreement NOW THEREFORE, in consideration of the mutual promises contained herein, the parties hereto agree as follows: 1.Employment A.General. Employee is hereby employed by the City as the Municipal Judge of the City of Lake Oswego, Oregon. Employee accepts this position on the terms and conditions set forth below. B.Effective Date. The effective date for commencement of employment is July 31, 2024. 2.Duties Employee shall perform the functions and duties specified for the position of Municipal Judge by the City Charter and Code of the City of Lake Oswego, and by any other applicable ordinances, resolutions, or policies of the City, together and with such other duties as may be lawfully assigned by the City Council. Employee shall at all times loyally and conscientiously perform all the duties and obligations required of them, either expressly or implicitly, by the terms of this AGREEMENT. 3.Term of Employment Employee’s employment shall commence on the date set forth in paragraph 1.B. of this AGREEMENT. Employee shall remain in the exclusive employ of the City thereafter subject to termination of the employment by either party as provided below. 4.Salary Employee shall be paid a salary in installments at the same time as other employees are paid. Starting monthly salary is $6,000.00. This position is not eligible for overtime and is considered exempt. Any additional cost of living adjustments are subject to City Council EXHIBIT 1 Page 2 – Municipal Judge Employment Agreement approval. Since Employee is starting employment on the last day of July, 2024, the salary for July will be prorated to 1/31 of the monthly salary. 5. Sick Leave Employee shall be provided with forty (40) hours of paid sick leave benefits upon hire, which are available for use during the remainder of the 2024 calendar year. Thereafter, the City will provide forty (40) hours of Oregon statutory paid sick leave benefits, front loaded annually on January 1 each year. Unused sick leave hours will not roll over from year to year. There shall be no compensation for unused sick leave at the termination of Employee’s employment. 6. Dues and Professional Development City agrees to pay for the professional membership dues to the Oregon Judge’s Association, and pay attendance for up to two Oregon Judge’s Association conferences per year, subject to City Council budget decisions. 7. Performance Evaluation and Feedback Employee will seek frequent informal feedback on performance from the Mayor and individual City Council members. A more formal performance review will be conducted by the City Council as a body in December of each year, and at any other time that the City Council, in its sole discretion, desires to conduct a review. 8. Termination of Employment A. Termination Basis (i) At Will Employment It is expressly understood and agreed between the parties that Employee serves as an at-will employee of the City. Either Employee or the City Council may terminate the Employee’s employment relationship with the City at any time with or without cause, and except as provided below, no severance is to be paid. (ii) For Cause Termination The City Council may terminate the services of the Employee for cause, which are the events listed in Subsection C below. B. Notice and Severance Pay Subject to the requirements and limitations set forth below, in the event that the City terminates Employee’s employment without cause while Employee is still willing and able to perform Employee’s duties, Employee shall be entitled to: (i) Not less than sixty days’ prior notice of such termination; and (ii) A severance payment equal to six (6) months of salary. Page 3 – Municipal Judge Employment Agreement (iii) As a condition to receiving the benefits described in paragraphs (i)-(ii) above, including severance payment and prior to the delivery of such payment, Employee agrees to execute and deliver to City a release of claims drafted by the City, releasing the City and its agents, representatives and insurers from any and all claims that Employee may have against City. The severance payment, and extension of benefits as described, shall release the City from any further obligations under this AGREEMENT, and any claims of any nature that Employee might have against the City by virtue of their employment or termination thereof. The City reserves the right to pay Employee’s regular wages in lieu of all or any portion of the sixty days’ notice period referenced in B.(i) above. C. Exceptions to Notice and Severance Pay Requirements Employee shall not be entitled to prior notice of termination, or a severance payment listed in B.(i)-(ii), in any of the following events: (i) Employee is terminated for cause, which shall mean willful misconduct, willful failure to carry out or abide by the lawful directions or decisions of the City Council, dishonesty or gross malfeasance. (ii) Employee commits a serious violation of City personnel policy/policies or standards of conduct that the City Council determines justifies termination. (iii) Employee is convicted of any crime. (iv) Employee resigns or retires from their employment with the City. (iv) Employee becomes physically or mentally unable to perform the essential duties of the Municipal Judge with reasonable accommodation as required by law. D. Resignation or Retirement Employee shall provide City not less than 30 calendar days’ advance notice of termination of their employment by resignation or retirement. 9. Use and Return of City Property Employee recognizes and agrees that all property provided by the City to the Employee shall be and remain the property of the City. Employee will preserve, use, and hold City property only for the benefit of the City and to carry out the City’s business. When Employee’s employment is terminated, Employee will immediately deliver to City all City property, including all originals and copies of records, Employee has in Employee’s possession or control. 10. Arbitration The parties agree that any issue which has not been released pursuant to Section 8.B.iii above arising from Employee’s employment, employment termination or whether a party has breached this AGREEMENT that cannot be resolved informally, shall be submitted to confidential, binding arbitration in Lake Oswego, Oregon. The arbitration shall be conducted in Page 4 – Municipal Judge Employment Agreement confidence and pursuant to the then current rules of the American Arbitration Association for employment disputes, unless the parties agree to some other arbitration procedure. Except as otherwise required by law, the parties shall share equally the arbitrator’s fees, and each party shall be responsible for its own attorney’s fees and related costs at arbitration or in any litigation or court action relating to the arbitration. ORS 36.620(6) Acknowledgment: I acknowledge that I have received and read or have had the opportunity to read this arbitration agreement. I understand that this arbitration agreement requires that disputes that involve the matters subject to the agreement be submitted to mediation or arbitration pursuant to the arbitration agreement rather than to a judge and jury in court. _______________ ______7/1/2024____________________ Cierra Brown Date 11. Personnel Policies The terms and provisions of the City’s Personnel Policies shall apply to Employee, as now adopted or hereafter amended, except to the extent provided otherwise in this AGREEMENT. 12. Modification or Amendment No amendment, change, or modification of this AGREEMENT shall be valid, unless in writing and signed by both parties. 13. Entire Agreement This AGREEMENT constitutes the entire agreement between the parties, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiation of previous agreements between the parties with respect to all or any part of the subject matter hereof. 14. Waiver Failure of either party at any time to require performance of any provisions of this AGREEMENT shall not limit the parties’ right to enforce the provision, nor shall any waiver of any breach of any provision be a waiver of any succeeding breach of the provision itself or of any other provision. 15. Severability If any provision, or any portion thereof, contained in this AGREEMENT is held to be unenforceable, the remainder of this AGREEMENT or portion thereof shall be deemed severable and shall not be affected and shall remain in full force and effect. Page 5 – Municipal Judge Employment Agreement CITY OF LAKE OSWEGO, OREGON BY:________________________________________________________________________ Joseph M. Buck, Mayor Date Authorized by the City Council on: July 16, 2024 _________________________________7/1/2024_____________ ______ CIERRA BROWN Date 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-26, Intergovernmental Agreement (IGA) with the Lake Oswego School District (LOSD) that continues funding for one of two assigned Lake Oswego Police Department (LOPD) School Resource Officers (SROs) to the LOSD for the 2024-2025 year. Meeting Date: July 16, 2024 Report Date: July 5, 2024 Staff Member: Clayton Simon, Police Captain Department: Lake Oswego Police Department Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded ☒Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: Adopt Resolution 24-26, Authorizing the City Manager to sign an IGA with LOSD to continue SRO services. Recommended Language for Motion: Move to adopt Resolution 24-26. Project / Issue Relates To: Public safety and community engagement in schools. Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable EXECUTIVE SUMMARY Prior to 2019, the LOPD provided one SRO to the LOSD at no cost to the district. That year, following the passage of a Local Option Levy, the City and the LOSD entered into an IGA to add a second, district funded SRO following the passage of Resolution 19-37. Since that time, the City and LOSD have continued the agreement and two SROs have been assigned to the LOSD. Resolution 24-26 is before the City Council for consideration and adoption to renew this agreement through 2025. 6.4 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY BACKGROUND For a number of years LOPD and LOSD have agreed that having an SRO in the schools is a benefit for both parties and for our community. In 2017 LOPD dedicated a full-time officer to the school district to provide services to both students and staff. This position was fully funded through the Police Department’s budget. Both the LOSD and LOPD quickly realized that one SRO was not sufficient to address the needs of all the schools in the district. The one SRO at that time was not able to fully engage with the students and staff to the extent needed in most situations. Following the passage of a Local Option Levy in 2019, a second, district funded SRO was assigned to the LOSD. Since 2019, each SRO has been responsible for approximately five schools, with each assigned to one high school. This has allowed more time to engage with students and staff and to be present on the campuses. DISCUSSION Key components of the LOSD and LOPD agreement include: •Effective July 1, 2024 and expiring June 30, 2025. •The LOSD will fund 50% of the City’s cost to provide two SROs to the district. The costs include salary, benefits, and other incidental costs. •LOPD will continue to backfill the vacated patrol position used to accommodate a second SRO. •The arrangement can be terminated by either party at any time following 90 days written notice. FISCAL IMPACT There will be low initial upfront costs related to officer outfitting considering this is a continuation of an in-place program. The salary, benefits, and incidental costs required for the position will be funded by the LOSD at $205,000 for this new agreement. RECOMMENDATION Approve Resolution 24-26. ATTACHMENTS 1.Resolution 24-26, IGA with the School District RESOLUTION 24-26 Page 1 of 1 RESOLUTION 24-26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE CITY MANAGER TO SIGN THE INTERGOVERNMENTAL AGREEMENT WITH THE LAKE OSWEGO SCHOOL DISTRICT TO CONTINUE TO PROVIDE SCHOOL RESOURCE OFFICER SERVICES FOR FISCAL YEAR 2024- 2025. WHEREAS, there is a need to provide School Resource Officer services to the Lake Oswego School District; and WHEREAS, the Lake Oswego School District has the funding available to compensate the City of Lake Oswego for the use of the police department’s two School Resource Officers; and WHEREAS, the City and the Lake Oswego School District have previously entered into intergovernmental agreements whereby the City has provided School Resource Officer services; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Manager is authorized sign the Intergovernmental Agreement with the Lake Oswego School District for fiscal year 2024-2025, in substantially the form attached. Section 2. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 16th day of July, 2024. AYES: NOES: ABSTAIN: EXCUSED: ____________________________________ Joseph M. Buck, Mayor ATTEST: ____________________________________ Kari Linder, City Recorder APPROVED AS TO FORM: ________________________________________ Ellen Osoinach, City Attorney ATTACHMENT 1 24th June EXHIBIT 1 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-32, Adopting the City of Lake Oswego addendum to the Clackamas County Multi-Jurisdictional Natural Hazards Mitigation Plan Meeting Date: July 16, 2024 Report Date: June 24, 2024 Staff Member: Megan Phelan, Assistant City Manager Department: City Manager’s Office Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded ☒Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: Approve Resolution 24-32, Adopting the City of Lake Oswego addendum to the Clackamas County Multi-Jurisdictional Natural Hazards Mitigation Plan. Recommended Language for Motion: Move to approve Resolution 24-32. Project / Issue Relates To: City Council Goal to ensure a safe, secure, and prepared community. Issue before Council (Highlight Policy Question): Shall the City Council adopt the Lake Oswego addendum to the Clackamas County Multi-Jurisdictional Natural Hazards Mitigation Plan? ☒Council Goals/Priorities ☐Adopted Master Plan(s)☐Not Applicable BACKGROUND To qualify for Federal disaster mitigation funds, jurisdictions must formally adopt Natural Hazards Mitigation Plans (NHMP). To meet this requirement, cities may create addendums to 6.5 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY their respective County NHMP. For this reason, the City developed its current plan as a NHMP Addendum to the Clackamas County Multi-Jurisdictional NHMP. The City's NHMP identifies natural hazards that may impact Lake Oswego and includes resources and information to assist City residents, public and private sector organizations, and others interested in participating in planning for natural hazards. The mitigation plan provides a list of activities that may assist the City of Lake Oswego in reducing risk and preventing loss from future natural hazard events. Every five years, Federal guidelines require the City's addendum to the Clackamas County Multi-Jurisdictional NHMP be updated and submitted to the Federal Emergency Management Agency (FEMA) for 'pre-approval'. The City recently received notification that FEMA has pre- approved the City’s addendum to the County’s NHMP pending adoption by the City Council. Once adopted through a resolution by City Council, the City’s addendum will be resubmitted to FEMA for final approval. The City’s original addendum to the County’s NHMP was adopted by City Council in July 2004 and subsequently updated in 2010, 2013, and 2019. As an addendum to the Clackamas County Multi-Jurisdictional NHMP, the City’s timeline will be consistent with Clackamas County as well as other cities in the County. DISCUSSION The City’s NHMP addresses the following natural hazards that could impact Lake Oswego: drought, earthquake, flood, landslide, severe weather, volcanic event and wildfire. Adoption of the City’s addendum to the Clackamas County Multi-Jurisdictional NHMP provides access to Federal mitigation grants to minimize exposure to and recovery from the adverse effects natural hazards pose to the city. Information regarding the NHMP will be conveyed through the City Manager's Office. The NHMP will be available online at the City’s website and hard copies of the NHMP will be distributed to City Departments for reference. FISCAL IMPACT Adoption of the 2024 NHMP does not impact City policy or the City's authority to adopt policies. Furthermore, the NHMP does not require City funds to draft or maintain. RECOMMENDATION Approve Resolution 24-32. ATTACHMENTS 1. Resolution 24-32 2. 2024 City of Lake Oswego addendum to the Clackamas County Multi-Jurisdictional Natural Hazards Mitigation Plan 3. FEMA's Pre-Adoption Approval Letter for the City of Lake Oswego addendum to the Clackamas County Multi-Jurisdictional Natural Hazards Mitigation Plan (dated June 11, 2024) RESOLUTION 24-32 A RESOLUTION OF THE CITY COUNCIL ADOPTING THE CITY OF LAKE OSWEGO ADDENDUM TO THE CLACKAMAS COUNTY MULTI-JURISDICTIONAL NATURAL HAZARDS MITIGATION PLAN. WHEREAS, the City of Lake Oswego recognizes the threat that natural hazards pose to people, property and infrastructure within our community; and WHEREAS, undertaking hazard mitigation actions will reduce the potential for harm to people, property and infrastructure from future hazard occurrences; and WHEREAS, an adopted Natural Hazards Mitigation Plan is required as a condition of future funding for mitigation projects under multiple FEMA pre- and post-disaster mitigation grant programs; and WHEREAS, the City of Lake Oswego has fully participated in the FEMA prescribed mitigation planning process to prepare the Clackamas County Multi-Jurisdictional Natural Hazard Mitigation Plan, which has established a comprehensive, coordinated planning process to eliminate or minimize these vulnerabilities; and WHEREAS, the City of Lake Oswego has identified natural hazard risks and prioritized a number of proposed actions and programs needed to mitigate the vulnerabilities of the City of Lake Oswego to the impacts of future disasters within the Clackamas County Multi-Jurisdictional Natural Hazard Mitigation Plan; and WHEREAS, these proposed projects and programs have been incorporated into the Clackamas County, Multi-Jurisdictional Natural Hazard Mitigation Plan that has been prepared and promulgated for consideration and implementation by the participating cities and special districts of Clackamas County; and WHEREAS, the Oregon Department of Emergency Management and Federal Emergency Management Agency, Region X officials have reviewed the City of Lake Oswego addendum to the Clackamas County Multi-Jurisdictional Natural Hazard Mitigation Plan and pre-approved it (dated June 11, 2024) contingent upon this official adoption of the participating governments and entities; WHEREAS, the Clackamas County Multi-Jurisdictional Natural Hazard Mitigation Plan is in an on-going cycle of development and revision to improve its effectiveness; and WHEREAS, City of Lake Oswego adopts its addendum to the Clackamas County Multi-Jurisdictional Natural Hazard Mitigation Plan and directs the City Manager or their designee to develop, approve, and implement the mitigation strategies and any administrative changes as outlined in the Plan. NOW THEREFORE, BE IT RESOLVED that: 1.The City of Lake Oswego adopts the Lake Oswego addendum to the Clackamas County Multi- Jurisdictional Natural Hazards Mitigation Plan as an official plan; and 2.The City Council directs that this Adoption Resolution be submitted to the Oregon Department of Emergency Management and Federal Emergency Management Agency, Region X officials to enable final approval of the Clackamas County Multi-Jurisdictional Natural Hazards Mitigation Plan. ATTACHMENT 1 This resolution shall take effect upon passage. Approved and adopted by the City Council of the City of Lake Oswego at a regular meeting held on the 16th day of July, 2024. AYES: NOES: ABSTAIN: EXCUSED: __________________________ Joseph M. Buck, Mayor ATTEST: ___________________________ Kari Linder, City Recorder APPROVED AS TO FORM: _________________________ Ellen Osoinach, City Attorney City of Lake Oswego Addendum to the Clackamas County Multi-Jurisdictional Natural Hazard Mitigation Plan Effective: July XX, 2024-July XX, 2029 Updated: July 16, 2024, (Resolution # 24-32) May 21, 2019, (Resolution # 19-34) May 21, 2013 (Resolution # 13-19) March 23, 2010 (Resolution # 10-21) Photo Credit: Photo Credit: Martin Stabler Prepared for The City of Lake Oswego ATTACHMENT 2 This material is a result of tax-supported research and, as such, is not copyrightable. It may be freely reprinted with the customary crediting of the source. This Natural Hazard Mitigation Plan was prepared by: Planning grant funding provided by: Federal Emergency Management Agency (FEMA) Project Award Number: DR-4562-39-P-OR Additional Support Provided by: Table of Content PURPOSE ...................................................................................................................................................................... 1 NHMP PROCESS, PARTICIPATION AND ADOPTION ............................................................................................................... 1 NHMP IMPLEMENTATION AND MAINTENANCE ................................................................................................................... 2 CAPABILITY ASSESSMENT ................................................................................................................................................. 3 Existing Authorities ............................................................................................................................................... 3 Policies and Programs ........................................................................................................................................... 6 Personnel .............................................................................................................................................................. 7 Capital Projects ..................................................................................................................................................... 8 Capital Resources .................................................................................................................................................. 9 Findings ............................................................................................................................................................... 10 MITIGATION PLAN MISSION ........................................................................................................................................... 10 MITIGATION PLAN GOALS .............................................................................................................................................. 11 MITIGATION STRATEGY ................................................................................................................................................. 12 Mitigation Successes ............................................................................................................................................. 9 Action Items ..................................................................................................................................................................... 12 RISK ASSESSMENT ........................................................................................................................................................ 15 Hazard Analysis ................................................................................................................................................... 15 COMMUNITY CHARACTERISTICS ...................................................................................................................................... 16 Community Lifelines ............................................................................................................................................ 19 Critical Facilities .................................................................................................................................................. 19 Critical Infrastructure .......................................................................................................................................... 20 Essential Facilities ............................................................................................................................................... 21 Environmental Facilities ...................................................................................................................................... 21 Vulnerable Populations ....................................................................................................................................... 21 Hazardous Materials ........................................................................................................................................... 22 Economic Assets/Population Centers .................................................................................................................. 22 Cultural and Historic Assets ................................................................................................................................ 22 HAZARD CHARACTERISTICS ............................................................................................................................................. 23 Drought ............................................................................................................................................................... 23 Earthquake (Cascadia Subduction Zone)............................................................................................................. 24 Earthquake (Crustal) ........................................................................................................................................... 26 Flood ................................................................................................................................................................... 33 Landslide ............................................................................................................................................................. 39 Severe Weather ................................................................................................................................................... 41 Extreme Heat.................................................................................................................................................................... 41 Windstorm ....................................................................................................................................................................... 42 Winter Storm (Snow/Ice) ................................................................................................................................................. 43 Volcanic Event ..................................................................................................................................................... 44 Wildfire ............................................................................................................................................................... 45 ATTACHMENT A: ACTION ITEM CHANGES ............................................................................................................ 49 ATTACHMENT B: PUBLIC INVOLVEMENT SUMMARY ........................................................................................... 52 List of Tables TABLE LO-1 ACTION ITEMS ................................................................................................................................................ 13 TABLE LO-2 HAZARD ANALYSIS MATRIX – LAKE OSWEGO ........................................................................................................ 16 TABLE LO-3 COMMUNITY CHARACTERISTICS ......................................................................................................................... 18 TABLE LO-4 CRITICAL FACILITIES ......................................................................................................................................... 19 TABLE LO-5 RAPID VISUAL SURVEY SCORES........................................................................................................................... 29 TABLE LO-6 EXPECTED DAMAGES AND CASUALTIES FOR THE CSZ FAULT AND PORTLAND HILLS FAULT: EARTHQUAKE, SOIL MOISTURE, AND EVENT TIME SCENARIOS ............................................................................................. 31 TABLE LO-7 COMMUNITY REPETITIVE LOSS PROPERTIES .......................................................................................................... 37 TABLE LO-8 STATUS OF ALL HAZARD MITIGATION ACTIONS IN THE PREVIOUS PLAN...................................................................... 51 List of Figures FIGURE LO-1: UNDERSTANDING RISK ................................................................................................................................... 15 FIGURE LO-2 CASCADIA SUBDUCTION ZONE EXPECTED SHAKING ............................................................................................... 25 FIGURE LO-3 ACTIVE CRUSTAL FAULTS, EPICENTERS (1971-2008), AND SOFT SOILS ................................................................... 26 FIGURE LO-4 FEMA FLOOD ZONES ..................................................................................................................................... 33 FIGURE LO-5 LANDSLIDE SUSCEPTIBILITY EXPOSURE ................................................................................................................ 39 FIGURE LO-6 WILDFIRE RISK .............................................................................................................................................. 46 Clackamas County NHMP: Lake Oswego Addendum Page | 1 Purpose This is an update of the Lake Oswego addendum to the Clackamas County Multi-Jurisdictional Natural Hazard Mitigation Plan (NHMP). This addendum supplements information contained in Volume I (Basic Plan) which serves as the NHMP foundation and Volume III (Appendices) which provide additional information. This addendum meets the following requirements: • Multi-Jurisdictional Plan Adoption §201.6(c)(5), • Multi-Jurisdictional Participation §201.6(a)(3), • Multi-Jurisdictional Mitigation Strategy §201.6(c)(3)(iv) and • Multi-Jurisdictional Risk Assessment §201.6(c)(2)(iii). Updates to Lake Oswego’s addendum are further discussed throughout the NHMP and within Volume III, Appendix B, which provides an overview of alterations to the document that took place during the update process. Lake Oswego adopted their addendum to the Clackamas County Multi-jurisdictional NHMP on July 16, 2024. FEMA Region X approved the Clackamas County NHMP on [DATE TBD, 2024] and the City’s addendum on [DATE TBD, 2024]. With approval of this NHMP the City is now eligible to apply for the Robert T. Stafford Disaster Relief and Emergency Assistance Act’s hazard mitigation project grants through [DATE TBD-1, 2024]. NHMP Process, Participation and Adoption This section of the NHMP addendum addresses 44 CFR 201.6(c)(5), Plan Adoption, and 44 CFR 201.6(a)(3), Participation. In addition to establishing a comprehensive community-level mitigation strategy, the Disaster Mitigation Act of 2000 (DMA2K), and the regulations contained in 44 CFR 201, require that jurisdictions maintain an approved NHMP to receive federal funds for mitigation projects. Local adoption, and federal approval of this NHMP ensures that the city will remain eligible for pre- and post-disaster mitigation project grants. The Oregon Partnership for Disaster Resilience (OPDR) at the University of Oregon’s Institute for Policy Research, and Engagement (IPRE) collaborated with the Oregon Office of Emergency Management (OEM), Clackamas County, and Lake Oswego to update their NHMP. The Clackamas County NHMP, and Lake Oswego addendum, are the result of a collaborative effort between citizens, public agencies, non-profit organizations, the private sector, and regional organizations. The Lake Oswego HMAC guided the process of developing the NHMP. Convener The Lake Oswego City Manager, or their designee, serves as the NHMP addendum convener. The convener of the NHMP will take the lead in implementing, maintaining, and updating the addendum to the Clackamas County NHMP in collaboration with the designated convener of the Clackamas County NHMP (Clackamas County Resilience Coordinator). Clackamas County NHMP: Lake Oswego Addendum Page| 2 Representatives from the City of Lake Oswego HMAC met formally and informally, to discuss updates to their addendum (Volume III, Appendix B). The HMAC reviewed and revised the City’s addendum, with focus on the NHMP’s risk assessment and mitigation strategy (action items). This addendum reflects decisions made at the designated meetings and during subsequent work and communication with the Clackamas County Resilience Coordinator, and the OPDR. The changes are highlighted with more detail throughout this document and within Volume III, Appendix B. Other documented changes include a revision of the City’s risk assessment and hazard identification sections, NHMP mission and goals, action items, and community profile. The Lake Oswego HMAC was comprised of the following representatives: • Rob D. Amsberry - Program Lead/Flood Plain Manager, Engineering Department • Megan Big John - Parks Manager, Parks & Recreation Department • Bonnie Hirshberger - Citizen Information & Emergency Management Specialist, City Manager's Office • Jessica Morey-Collins - Sr Development Specialist, Planning Department • Jeff Munro - Deputy Director, Parks & Recreation Department • Megan Phelan - Assistant City Manager, City Manager's Office • Edward VanBuren - Deputy Director, Public Works Department • Amanda Watson - Sustainability Program Manager, City Manager's Office • Darryl Wrisley - Police Department Lieutenant, Police Department • Gert Zoutendijk - Fire Marshal, Fire Department The HMAC served as the local review body for the NHMP update. NHMP Implementation and Maintenance The City Council will be responsible for adopting the Lake Oswego addendum to the Clackamas County NHMP. This addendum designates a HMAC and a convener to oversee the development and implementation of action items. Because the City addendum is part of the County’s multi-jurisdictional NHMP, the City will look for opportunities to partner with the County. The City’s HMAC will convene after re-adoption of the Lake Oswego NHMP addendum on an annual schedule. The County is meeting on a semi-annual basis and will provide opportunities for the cities to report on NHMP implementation and maintenance during their meetings. The convener will serve as the conveners and will be responsible for assembling the HMAC. The HMAC will be responsible for: • Reviewing existing action items to determine suitability of funding; • Reviewing existing and new risk assessment data to identify issues that may not have been identified at NHMP creation; • Educating and training new HMAC members on the NHMP and mitigation actions in general; • Assisting in the development of funding proposals for priority action items; • Discussing methods for continued public involvement; • Evaluating effectiveness of the NHMP at achieving its purpose and goals (use Table 26, Volume I, Section 4, as one tool to help measure effectiveness); and • Documenting successes and lessons learned during the year. The HMAC will be responsible for the following activities described in detail in Volume I, Section 4: Clackamas County NHMP: Lake Oswego Addendum Page| 3 The jurisdiction will utilize the same implementation and maintenance process identified in Volume I, Section 4. The jurisdiction will provide continued public participation during the plan maintenance process through periodic presentations to elected officials, public meetings, postings on social media, and/or through interactive content on the jurisdiction’s website (for more information see Volume I, Section 4). The jurisdiction will utilize the same action item prioritization process as the County (for more information see Volume I, Section 4 and Volume III, Appendix E). Implementation through Existing Programs This NHMP is strategic and non-regulatory in nature, meaning that it does not necessarily set forth any new policy. It does, however, provide: (1) a foundation for coordination and collaboration among agencies and the public in the city; (2) identification and prioritization of future mitigation activities; and (3) aid in meeting federal planning requirements and qualifying for assistance programs. The mitigation plan works in conjunction with other city plans and programs including the Comprehensive Land Use Plan, Capital Improvements Plan, and Building Codes, as well as the Clackamas County NHMP, and the State of Oregon NHMP. The mitigation actions described herein (and in Attachment A) are intended to be implemented through existing plans and programs within the city. Plans and policies already in existence have support from residents, businesses, and policy makers. Where possible, Lake Oswego will implement the NHMP’s recommended actions through existing plans and policies. Many land-use, comprehensive and strategic plans get updated regularly, allowing them to adapt to changing conditions and needs. Implementing the NHMP’s action items through such plans and policies increases their likelihood of being supported and implemented. Implementation opportunities are further defined in action items when applicable. Capability Assessment The Capability Assessment identifies and describes the ability of the City of Lake Oswego to implement the mitigation strategy and associated action items. Capabilities can be evaluated through an examination of broad categories, including: existing authorities, policies, programs, funding, and resources. As applicable the 2019 NHMP was integrated into these authorities/documents over the last five years (e.g., land use regulations, water system master plan, capital improvement plan, etc.). Existing Authorities Hazard mitigation can be executed at a local scale through three (3) methods: integrating hazard mitigation actions into other local planning documents (i.e., plan integration), adopting building codes that account for best practices in structural hardening, and codifying land use regulations and zoning designations that prescribe mitigation into development requirements. The extent to which a municipality or multi-jurisdictional effort leverages these approaches is an indicator of that community’s capabilities. Comprehensive Plan Oregon’s Statewide Planning Goal 7 requires comprehensive planning within every jurisdiction that is designed to reduce risks to people and property from natural hazards. Clackamas County NHMP: Lake Oswego Addendum Page| 4 Lake Oswego addresses Statewide Planning Goal 7 Natural Hazards as part of their Comprehensive Plan Element, Community Health, and Public Safety. This element was updated in 2014, and contains policies related to air, water, and natural resources, areas subject to natural disasters and hazards, public facilities, and energy. It incorporated the findings and recommendations of the 2010 City of Lake Oswego Natural Hazards Mitigation Plan for six major hazards: floods, landslides, severe storm (wind and winter), wildfires, earthquakes, and volcanoes. Planned updates to the jurisdiction’s Goal 7 element or its broader comprehensive plan will reflect the data and findings within this NHMP and integrate analyses of future climate and natural hazard impacts into the community’s long-range plans. Land Use Regulations Existing land use policies that define zoning and address hazardous conditions provide another source of mitigation capability. • Chapter 50, Community Development Code (revised July 2023) This Chapter includes Article 50.05.011 Flood Management Area, which applies to the lands within the "flood management area" and is applied when development occurs within the "flood management area,” which are the areas of special flood hazard, as identified by the Federal Insurance Administrator in a scientific and engineering report entitled "The Flood Insurance Study for Clackamas County, OR and Incorporated Cities" dated January 18, 2019. It also regulates based on the 1996 flood areas, which were those areas inundated during the February 1996 flood along the Willamette River. This code was amended by Ord. 2847, January 2022. Their flood prevention code section is based on the Oregon Model Flood Hazard Prevention code, which includes provisions addressing substantial improvement/substantial damage. Article 50.04.010 Sensitive Lands Overlay Districts manages the impacts of development on lands with environmental and natural resource significance in order to protect the functions and values of wetlands, stream corridors, and tree groves within the Lake Oswego City limits. Many of these significant resources are associated with hillsides, ravines, and ridge lines. This Chapter also includes Article 50.06.006 Geologic Hazards and Drainage, addressing development in known potential severe landslide hazard areas. • Chapter 52, Erosion Control This chapter aims to control erosion at its source as a means of maintaining and improving water quality and minimizing water pollution, downstream flooding, and wildlife habitat damage. • Lake Oswego City Code and Charter, Chapter 38.25 This chapter was established to protect the health, safety, and welfare of the public residing in watersheds in the jurisdiction of the City by controlling the rate, quality and volume of stormwater originating from development and redevelopment sites to the maximum extent practicable, so that surface water and groundwater are protected from pollution and flooding, and so that erosion potential does not increase. • Lake Oswego Bridge Inspections and Records Manual This manual outlines the City’s bridge inspection program that was implemented to better respond in the event of a natural disaster. The intent of the program is to utilize trained City personnel to closely document bridge conditions through visual inspections, establishing baseline Clackamas County NHMP: Lake Oswego Addendum Page| 5 condition information to use for comparison to bridge conditions after a disaster. Overall, bridges throughout the City are old and in need of upgrading. Additionally, the manual outlines a disaster response plan, including identification of disaster response team members and a bridge closure and detour plan. The Lake Oswego Planning Department is the oversight entity for all matters related to long range planning, development review, and code enforcement. It is responsible for the administration of state, county, and local land use policies and regulations as they relate to the preservation and quality development of property lying within the city limits and urban growth boundary (UGB). Planning works closely with Building, Engineering, and Fire in the review of development applications and building permits. Planning is also responsible for administering and maintaining the Lake Oswego Comprehensive Plan and Community Development Code, Tree Code, and Sign Code. Planning staff also administer the City's Annexation, Neighborhood Planning, Historic Preservation, and Urban and Community Forestry programs. They work closely with the County and neighboring jurisdictions to ensure plans are aligned. Recent efforts to update land use regulations to integrate hazard mitigation and resilience include: • Section 50-05-011 (The Flood Management Area) of the Community Development Code was completely updated. Adopted in January of 2022. • Chapter 15, Section 15.06.616 of the Fire Protection Code was updated in 2021 in order for the Fire Chief or Fire Marshal to implement a burn ban within the limits of the City of Lake Oswego. • Staff is currently working with a consultant team and internal staff to update the Surface Water Management Manual and the Stormwater Management Code (Article 38.25). Structural Building Codes The Oregon Legislature recently adopted updated building codes for both residential (2023 adoption) and commercial structures (2022) since the last update of this Plan. These building codes are based on the 2021 version of the International Building Code and the 2021 International Residential Code. The Lake Oswego Building Department administers and enforces the 2022 Oregon Structural Specialty Code, which includes fire provisions from the 2022 Oregon Fire Code. As a result, both new residential and commercial structures will be required to build according to the latest seismic and wind hardening standards. The Fire Department administers the Fire Code, however, current legislation prevents adoption of the WUI Code, which would administer standards for using fire resistant building materials in proximity to or within the wildland-urban interface (WUI). Public Works The City of Lake Oswego Public Works Department is responsible for surface water management, water treatment and delivery, wastewater collection and treatment (with Portland Bureau of Environmental Services), street construction and maintenance, and public facilities maintenance. Much of their work is associated with the reduction of hazards to the community and the implementation of resilience measures. The Lake Oswego Public Works Department Engineering Section administers and enforces the Flood Management Area code. Minimum submission requirements stipulate an Elevation Certificate is required at submittal if property is in a flood hazard area, and require a two (2) foot free board and other flood construction requirements. City Administration The City Council of Lake Oswego has the responsibility of developing and adopting the annual city budget. Integrating hazard mitigation goals and projects into the annual budget is key to implementing the plan. Clackamas County NHMP: Lake Oswego Addendum Page| 6 The City Council tries to broadly address resilience planning needs while it determines city and departmental priorities and looks for multiple-impact projects wherever possible. They also work with staff to apply for federal and state grant funding to pursue larger projects that are outside of general fund capacity. The City's solid waste management program is managed by the Sustainability Program Manager in the City Manager's Office. Policies and Programs This Plan directs Lake Oswego and Clackamas County to explore integration into other planning documents and processes. Lake Oswego has made significant progress in integrating the NHMP into its portfolio of planning processes and programs over the last five years. Emergency Operations Plan The City’s Emergency Operations Plan is in the process of being updated and we anticipate that it will be adopted by the City Council in early 2024. Sustainability and Climate Action Plan The City’s Sustainability and Climate Action Plan was adopted in May 2020. This plan built on the City’s 2014 Sustainability Action Plan for City Operations and includes climate adaptation goals, including updating disaster management policies and procedures in preparation for more extreme weather events. Intergovernmental cooperation The City Council passed resolution 23-09 which authorized an IGA for the lending of personnel within Clackamas County when personnel are unable to get to their normal reporting location dues to an emergency and/or natural hazard. Water management and Conservation Plan The City of Lake Oswego and the City of Tigard joined together to develop a Water Management and Conservation Plan in 2019. This plan coordinates the management and conservation of their shared water resource in the Clackamas River. MS4 Permit Lake Oswego’s Phase II Municipal Separate Storm Sewer System (MS4) permit was reissued by Oregon Department of Environmental Quality (DEQ) in 2021. The permit program has six areas of focus that are consistent with EPA's Federal Clean Water Act: public education, public involvement, illicit discharge detection and elimination, construction, post-construction, and municipal operations. The City revised its Stormwater Management Plan and Monitoring Plans in 2022 to meet the requirements of the new MS4 Permit. These plans are awaiting approval from DEQ. TMDL Plan The City also maintains a Total Maximum Daily Load (TMDL) Plan (updated in 2019). The Total Maximum Daily Load (TMDL) program includes many of the same requirements as the MS4 program, but also incorporates measures that stabilize stream temperatures. The affected watersheds within the City’s jurisdiction include the Willamette and Tualatin Rivers. The NHMP actions are incorporated into this document as appropriate. Example projects include participation in regional stormwater outreach projects, staff training on pollution control, and street cleaning after major storm events. Several new stormwater facilities were constructed as a result of capital improvement projects. An infiltration Clackamas County NHMP: Lake Oswego Addendum Page| 7 raingarden and two filtration swales were constructed in the Tryon Creek watershed. Two detention tanks and 41 infiltration planters were constructed in the Oswego Lake watershed. Capital Improvement Plans The City adopts a new updated capital improvement plan (CIP) every two years, in conjunction with our biennial budget process. The most recent CIP was approved for July 1, 2023. Community Wildfire Protection Plan The Clackamas County Community Wildfire Protection Plan (CWPP) will be incorporated into this Plan as a functioning annex. The NHMP will also be integrated into the City’s Capital Improvement Plan, to be adopted by early 2024. National Flood Insurance Program Lake Oswego participates in the National Flood Insurance Program. The Engineering Section within Public Works Department is responsible for administering the day-to-day activities of the city’s floodplain program. They are assisted by the Building Department, the Planning Department, and by the City Administrator. Specifically, the Engineering Section: • maintains and administers Lake Oswego’s floodplain regulations; • reviews and issues floodplain development permits; • maintains elevation certificates for all new and substantially improved structures (and maintains an extensive database of historic elevation certificates); • ensures that encroachments do not occur within the regulated floodway; • implements measures to ensure that new and substantially improved structures are protected from flood losses; • maintains floodplain studies and maps and makes this information available to the public; • maintains a flood information website with digital flood insurance rate map (DFIRM) data; • conducts site visits to assess conditions and provide technical assistance to the public; • maintains a library of historical flood related information; • informs the public of flood insurance requirements; and • conducts outreach and training about flood hazards and development within the floodplain. In 2022, the Lake Oswego City Council adopted Ordinance 2847, which introduced a new version of Chapter 50.05.011 Flood Management Area and adopted an updated Flood Insurance Study for Clackamas County, OR and Incorporated Areas (effective January 18, 2019). Community Emergency Response Teams (CERT) The City has an unique Community Emergency Response Team (CERT) program that trains residents in emergency management. The program has trained around 2,000 people since 1995. Personnel The following Lake Oswego personnel have assignments related to natural hazard mitigation planning and implementation: Emergency Management: City Manager’s Office, Police Department, Fire Department, and Public Works Department Clackamas County NHMP: Lake Oswego Addendum Page| 8 Public Information Officer: City Manager’s Office staff oversees a Communications Team comprised of members from all City departments Floodplain Manager: Engineering Division of Public Works Department Grant writing (for Public Works or emergency management): Public Works Department, Fire Department, Police Department, and City Manager’s Office Capital improvement planning: Engineering Division of Public Works Department Capital improvement execution: Engineering Division of Public Works Department Lake Oswego does not have any employees solely designated to Emergency Management or Mitigation. These personnel integrate hazards and resilience planning into their greater work programs to the best of their abilities. However, there is limited capacity to expand upon their capabilities or workloads. Capital Projects Lake Oswego has implemented recommendations from the last NHMP into its capital improvement projects. The following mitigation-related or resilience projects have been completed prior to 2018: • Lake Oswego Interceptor Sewer (LOIS) (replacement, seismic upgrades to elevated wastewater mains) • Tualatin River flood model • First Addition drainage improvement plan • Evaluation of Flood Management Alternatives for Oswego Lake and Canal (Pacific Water Resources, Inc. June 2003) • Clean Streams Plan (2009) • Lakewood Bay Flood Protection at North Shore Road Bridge Plan (2000) • Dam spillway improvements (2011-2012) (FEMA Flood Mitigation Assistance grant funded) • Rockinghorse Lane landslide area stabilization The following mitigation-related or resilience projects have been completed since 2018: 1 • New City Hall (2021) • Lake Front Drainage Improvements • Deer Oak Circle Water Main Replacement • Wastewater Lift Station Generator Additions • Wembley Park Road and Stormwater Project • Wastewater Collection System Rehabilitation • Boones Ferry Road Project, including stormwater facilities • 10th Street Water Reservoir removal and Pump Station upgrade • Fosberg Road drainage improvements • Telemetry upgrades • Lakewood Trunk Sewer Rehabilitation • Blue Heron Trunk Sewer Rehabilitation • South Shore wastewater System Rehabilitation • North Shore Bridge Retaining Wall Improvements • Blue Heron Stormwater Outfall Replacement • Water Quality Monitoring Clackamas County NHMP: Lake Oswego Addendum Page| 9 • Telemetry Upgrades in all water distribution pump stations and reservoirs • Completed seismic upgrades at Adult Community Center • Lakeridge Junior High School (rebuilt 2022) • Lake Oswego Middle School to be rebuilt starting in 2024, (expected completion 2026) • Seismic rehabilitation of elementary schools (Hallinan Elementary, Oak Creek Elementary, Westridge Elementary, Palisades, Lake Grove, Forest Hills). All elementary schools gyms have been upgraded to Category IV seismic level and all elementary schools have received incremental seismic upgrades throughout. • River Grove Elementary School (new building is currently being constructed) Mitigation Successes The community has several examples of mitigation success including the following projects funded through FEMA Hazard Mitigation Assistance and the Oregon Infrastructure Finance Authority’s Seismic Rehabilitation Grant Program 2. FEMA Funded Mitigation Successes • None identified Seismic Rehabilitation Grant Program Mitigation Successes • None identified Other Mitigation Successes Lake Oswego School District • 2017: Lakeridge Junior High School, rebuilt per local bond (2019) • 2017: Lake Oswego Junior High School, seismic retrofit local bond (The entire school is to be replaced by Lake Oswego Middle School. Demolition of Lake Oswego Junior High School expected to begin after 2024 school year ends. Projected completion date, 2026.) • 2018: River Grove Elementary School, seismic retrofit of gym/play area per local bond (Replacement in process 2024 - school to be rebuilt to level 4) • 2018: Uplands Elementary School, seismic retrofit of entire building, gym/play area per local bond • 2018: Westridge Elementary School, seismic retrofit of entire building per local bond • 2019: Oak Creek Elementary School, seismic retrofit per local bond • 2020: Hallinan Elementary School, seismic retrofit of entire building per local bond • 2021: Lake Grove, Seismic retrofit, gym • 2021: Forest Hills, Seismic retrofit, gym and covered play • 2022: Lake Oswego High School, seismic retrofit gym local bond • 2022: Lakeridge High School, seismic retrofit of gym per local bond City Facilities • 2021: City Hall (which includes Police Department and LOCOM (9-1-1 Center)), rebuilt to meet Category IV risk standards pursuant to Section 202 of the 2014 Oregon Structural Specialty Code 2 The Seismic Rehabilitation Grant Program (SRGP) is a state of Oregon competitive grant program that provides funding for the seismic rehabilitation of critical public buildings, particularly public schools, and emergency services facilities. Clackamas County NHMP: Lake Oswego Addendum Page| 9 • 2017: Maintenance Center, rebuilt to meet Category IV risk standards (main building) and Category III risk standards (vehicle barn/motor pool) • 2017: Water Treatment Plant, updated to current seismic codes - finished water building at the WTP and river intake pump station built to Category IV • 2011: Overhead mains to wastewater treatment plant replaced as part of Lake Oswego Interceptor Sewer (LOIS) Project Capital Resources Lake Oswego maintains several capital resources that have important roles to play in the implementation of the natural hazard mitigation plan. Critical facilities with power generators for use during emergency blackouts include: • Lake Oswego City Hall, 380 A Avenue • Station 210 Westlake Fire Station, 4900 Melrose Street • Station 211 Jean Road Fire Station, 4555 Jean Road • Station 212 South Shore Fire Station, 1880 South Shore Blvd • Station 214 Main Fire Station and Admin Office, 300 B Avenue • Lake Oswego Maintenance Center, 17601 Pilkington Road • Adult Community Center, 505 G Avenue • Lake Oswego Public Library, 706 Fourth Street • Lake Oswego Water Treatment Plant, 4260 Kenthorpe Way, West Linn (administration building only) • Several water pump stations and wastewater lift stations • Lakeridge High School, 1235 Overlook Drive • Lake Oswego High School, 2501 Country Club Road • Lakeridge Middle School, 4700 Jean Road • Oak Creek Elementary School, 55 Kingsate Road • Forest Hills Elementary School, 1133 Andrews Road • Many (if not all) buildings located on Meadows in the Kruse Woods Corporate Park have generators Warming or cooling shelters include: • Adult Community Center, 505 G Avenue • Lake Oswego Public Library, 706 Fourth Street Facilities listed in the American Red Cross National Shelter System include: • Lake Oswego United Methodist Church, 1855 South Shore Boulevard • The Church of Jesus Christ of Latter-Day Saints • Lake Oswego High School, 2501 Country Club Road • Lakeridge High School, 1235 Overlook Drive • Lakeridge Middle School (to be added), 4700 Jean Road Food pantries include: • Hunger Fighters of Oregon, 4 Monroe Parkway, Suite A Clackamas County NHMP: Lake Oswego Addendum Page| 10 Fueling storage: • Lake Oswego Maintenance Center, 17601 Pilkington Road The main fuel island holds 8,193 gallons of unleaded and 5,447 gallons of diesel. We have currently 4 fuel “cubes” that hold anywhere from 50 -150 gallons depending on the cube (the cubes are filled and driven to various locations for generator or other critical equipment refueling). Findings Several important findings from this capability assessment informed the design of the Plan’s mitigation strategy and aided in prioritizing action items. Staffing Limitations and Capacity Lake Oswego staff are assigned hazard mitigation responsibilities as a (small) part of their larger job responsibilities. Restricted capacity reduces the breadth of the programming the community can undertake in any year. The city relies upon its relationships with the County and other cities within its region to expand its operations. Reliance upon outside funding streams and local match requirements Lake Oswego operates on a limited budget with many conflicting priorities. This leaves few opportunities for using local financial resources to implement hazard mitigation work. They lean heavily upon state and federal grant funds as the primary means for securing mitigation funding. Hazard mitigation grants such as HMGP and BRIC require 10-25% local funding match, as well as extra staff capacity and expertise to navigate the application process and manage the funding. Leveraging Partnerships with Public and Nonprofit Entities Regional planning displayed in Community Wildfire Protection Planning process demonstrates the City’s ability to effectively share information and identify priority needs. Mitigation Plan Mission The 2024 HMAC reviewed the previous NHMP Mission and Goals in comparison to the State NHMP Goals and determined that they would make necessary updates to include references to community lifelines and to advance equity and inclusion in hazard mitigation. The NHMP mission states the purpose and defines the primary functions of NHMP. It is intended to be adaptable to any future changes made to the NHMP and need not change unless the community’s environment or priorities change. The mission of the NHMP is to: Enhance county resiliency and capacity to address natural hazards by promoting sound public policy and effective mitigation strategies designed to equitably reduce risk and impacts on community members, community lifelines, historic and cultural resources property, and ecological systems. This can be achieved by increasing public awareness, documenting the resources for risk reduction and loss-prevention, and identifying activities to guide the county towards building a safer, more sustainable community. Clackamas County NHMP: Lake Oswego Addendum Page| 11 Mitigation Plan Goals Mitigation plan goals are more specific statements of direction that residents and public and private partners can take while working to reduce the risk from natural hazards. These statements of direction form a bridge between the broad mission statement and action items. The goals listed here serve as checkpoints as agencies and organizations begin implementing mitigation action items. Meetings with the HMAC, previous hazard event reports, and the previous NHMPs served as methods to obtain input and identify priorities in developing goals for reducing risk and preventing loss from natural hazards. All the NHMP goals are important and are listed below in no order of priority. Establishing community priorities within action items neither negates nor eliminates any goals, but it establishes which action items to consider implementing first, should funding become available. Goal 1: Protect Life and Property • Develop and implement mitigation and climate adaptation projects and policies that aid in protecting lives by making homes, businesses, community lifelines, and other property more resilient to natural hazards and impacts from climate change. • Establish mitigation projects and policies that minimize losses and repetitive damages from recurring disasters while promoting insurance coverage for severe hazards. • Improve hazard identification and risk assessment information to inform and provide recommendations for enhanced resilience in new development decisions and promote preventative measures for existing development in areas vulnerable to natural hazards. Goal 2: Enhance Natural Systems • Incorporate natural hazard mitigation planning and activities into watershed planning, natural resource management, natural systems enhancement, and land use planning to protect life, property, and ecological system. Goal 3: Augment Emergency Services • Strengthen emergency operations by enhancing communication, collaboration, and coordination of natural hazard mitigation activities and policies across agencies at all levels and regions of government, sovereign tribal nations, and the private sector. Goal 4: Encourage Partnerships for Implementation • Improve communication, coordination, and participation among and with public agencies, community members, community lifelines, and private sector organizations to prioritize and implement hazard mitigation activities and policies. • Enhance efforts toward identifying and optimizing opportunities across state agencies, surrounding communities, and private entities for resource sharing, mutual aid, and funding sources/support. Goal 5: Promote Public Awareness • Build community resilience and awareness and reduce the effects of natural hazards and climate change through community-wide engagement, collaboration, resource-sharing, learning, leadership-building, and identifying mitigation project-related funding opportunities. Goal 6: Advance Equity and Inclusion Clackamas County NHMP: Lake Oswego Addendum Page| 12 • Mitigate the inequitable impacts of natural hazards by prioritizing the directing of resources and efforts to build resilience and engagement in the most vulnerable communities least able to prepare, respond, and recover. • Strengthen efforts aimed at increasing engagement, outreach, and collaboration with community and cultural organizations and agencies that are dedicated to providing services and support to vulnerable and underserved communities. Mitigation Strategy This section of the NHMP addendum addresses 44 CFR 201.6(c)(3(iv), Mitigation Strategy. The City’s mitigation strategy (action items) was first developed during the 2009 NHMP planning process and revised during subsequent NHMP updates. During these processes, the HMAC assessed the City’s risk, identified potential issues, and developed a mitigation strategy (action items). During the 2023 update process, the City re-evaluated their mitigation strategy (action items). During this process action items were updated, noting if the action is complete, not complete and whether the actions were still relevant; any new action items were identified at this time (see Attachment B for more information on changes to action items). Action Items Table LO-1 documents the title of each action along with, the lead organization, partners, timeline, cost, and potential funding resources. The HMAC decided to modify the prioritization of action items in this update to reflect current conditions (risk assessment), needs, and capacity (see Attachment A for more information). High priority actions are shown with orange highlight. The City will focus their attention, and resource availability, upon these achievable, high leverage, activities over the next five-years. Although this methodology provides a guide for the HMAC in terms of implementation, the HMAC has the option to implement any of the action items at any time. This option to consider all action items for implementation allows the committee to consider mitigation strategies as new opportunities arise, such as capitalizing on funding sources that could pertain to an action item that is not currently listed as the highest priority. Refer to Attachment A for changes to actions since the previous NHMP. Clackamas County NHMP: Lake Oswego Addendum Page | 13 Table LO-1 Action Items Impacted Hazard Implementation and Maintenance Action Item # Statement Dr o u g h t Ea r t h q u a ke Ex t r e m e H e a t Fl o o d La n d s l i d e Vo l c a n i c E v e n t Wi l d f i r e Wi n d s t o r m Wi n t e r S t o r m Lead Timeline Potential Funding Source Estimated Cost 1 With a focus on reaching vulnerable populations, conduct public education and outreach on strategies to stay safe during extreme heat and hazardous air quality events, including information about available cooling shelters and clean air spaces. X X X X X City Manager’s Office Ongoing Local Resources. DLCD TA, FEMA HMA Low 2 Integrate the goals and action items from the Lake Oswego Hazards Mitigation Plan into existing regulatory documents and programs, where appropriate. X X X X X X X X X City Manager’s Office, Planning, and Engineering Ongoing Local Resources. DLCD TA, FEMA HMA High 3 Improve vegetation management throughout the city. Prioritize the removal of hazard trees. Maintain status as Tree City USA. X X X Parks & Recreation, Public Works Ongoing Local Resources. FEMA HMA High 4 Develop a community resilience hub designed to support residents and coordinate resource distribution before, during, or after a natural hazard event. Hub could also provide refuge site from cold, heat, and poor air quality. X X X X X X X X X Development Services Medium Local Resources, FEMA HMA- C&CB, Medium (scoping) to High (implemen tation) 5 Conduct seismic evaluations on identified critical/essential facilities and infrastructure. Implement appropriate structural and non-structural mitigation strategies first on high priority buildings and infrastructure (including the library, reservoirs, and lift/pump stations.). X City Manager’s Office and Public Works Ongoing Local Resources, FEMA HMA (BRIC, C&CB), SRGP Medium 6 Ensure continued compliance in the National Flood Insurance Program (NFIP) through enforcement of local floodplain management ordinances. X Planning, and Engineering Ongoing Local, State, Federal Grants Low Clackamas County NHMP: Lake Oswego Addendum Page| 14 Impacted Hazard Implementation and Maintenance Action Item # Statement Dr o u g h t Ea r t h q u a ke Ex t r e m e H e a t Fl o o d La n d s l i d e Vo l c a n i c E v e n t Wi l d f i r e Wi n d s t o r m Wi n t e r S t o r m Lead Timeline Potential Funding Source Estimated Cost 7 Improve knowledge of landslide hazard areas and understanding of vulnerability and risk to life and property in hazard-prone areas. X Community Development Ongoing Local Resources, FEMA HMA- C&CB, FEMA Risk MAP Low to High 8 Reduce frequency and duration of power outages from the severe wind and winter storm hazards, where possible. Potential projects include undergrounding utilities, establishing, and maintaining backup generators at critical facilities, developing energy redundancy through microgrids. X X Public Works, Planning Ongoing Local Resources, FEMA HMA, Energy Trust of Oregon High 9 Promote fire resistant strategies and home hardening by evaluating and making recommendations to current code to encourage noncombustible building materials for newly constructed residences in Lake Oswego. X Fire, Planning, Building Medium Local Resources. DLCD TA, FEMA HMA (FMA) Low 10 Promote wildland home assessments and NFPA Firewise Communities. X Fire, Planning Medium Local Resources, FEMA HMA (FMA) Low 11 Implement Clackamas County Community Wildfire Protection Plan in areas listed at risk of wildfire. X Fire, Planning, Building Ongoing Local Resources, FEMA HMA, CWDG Low to High Source: Lake Oswego NHMP HMAC, updated 2023 Cost: Low (less than $50,000), Medium ($50,000-$100,000), High (more than $100,000) Timing: Ongoing (continuous), Short (1-2 years), Medium (3-5 years), Long (5 or more years) Priority Actions: Identified with orange highlight Clackamas County NHMP: Lake Oswego Addendum Page | 15 Risk Assessment This section of the NHMP addendum addresses 44 CFR 201.6(b)(2) - Risk Assessment. In addition, this chapter can serve as the factual basis for addressing Oregon Statewide Planning Goal 7 – Areas Subject to Natural Hazards. Assessing natural hazard risk has three phases: • Phase 1: Identify hazards that can impact the jurisdiction. This includes an evaluation of potential hazard impacts – type, location, extent, etc. • Phase 2: Identify important community assets and system vulnerabilities. Example vulnerabilities include people, businesses, homes, roads, historic places and drinking water sources. • Phase 3: Evaluate the extent to which the identified hazards overlap with or have an impact on, the important assets identified by the community. The local level rationale for the identified mitigation strategies (action items) is presented herein and within Volume I, Section 3 and Volume III, Appendix C. The risk assessment process is graphically depicted in Figure LO-1. Ultimately, the goal of hazard mitigation is to reduce the area of risk, where hazards overlap vulnerable systems. Figure LO-1: Understanding Risk Hazard Analysis The Lake Oswego HMAC developed their hazard vulnerability assessment (HVA), using their previous HVA and the County’s HVA as a reference. Changes from their previous HVA and the County’s HVA were made where appropriate to reflect distinctions in vulnerability and risk from natural hazards unique to Lake Oswego, which are discussed throughout this addendum. Table LO-2 shows the HVA matrix for Lake Clackamas County NHMP: Lake Oswego Addendum Page | 16 Oswego listing each hazard in order of rank from high to low. For local governments, conducting the hazard analysis is a useful step in planning for hazard mitigation, response, and recovery. The method provides the jurisdiction with a sense of hazard priorities but does not predict the occurrence of a hazard. Two catastrophic hazards (Cascadia Subduction Zone earthquake and Crustal earthquake) and two chronic hazards (wildfire and winter storm) rank as the top hazard threats to the City (Top Tier). Extreme heat event, drought, flood, and windstorm comprise the next highest ranked hazards (Middle Tier), while landslide and volcanic event comprise the lowest ranked hazards (Bottom Tier). Table LO-2 Hazard Analysis Matrix – Lake Oswego Source: Lake Oswego HMAC, 2023. Community Characteristics Table LO-3 and the following section provides information on City specific demographics and assets. Many of these community characteristics can affect how natural hazards impact communities and how communities choose to plan for natural hazard mitigation. Considering the City specific assets during the planning process can assist in identifying appropriate measures for natural hazard mitigation. Lake Oswego is in the northwestern corner of Clackamas County, located in the Tualatin Valley, and within the Metro Portland UGB. There are three major drainage basins: Oswego Lake, the Tualatin River, and the Willamette River. Lake Oswego has a complex geography with many steep, wooded hillsides, and streams that flow from the higher areas to the drainage basins. Oswego Lake is the largest physical feature, and its geographic center. Lake Oswego’s temperatures range from a monthly average low of 35°F in the winter months to a high of 82°F in the summer months. The coldest month is January, and the hottest month is August. The average annual precipitation is about 37 inches. Population, Housing, and Income Lake Oswego has grown substantially since its incorporation in 1910 and has an area today of 10.78 square miles. It is in the south-central region of Clackamas County, located approximately 25 miles southeast of the City of Portland. Between 2016 and 2021 the City grew by 3,723 people (10%; as of 2022 the population is 41.148). Between 2022 and 2045 the population is forecast to grow by 2% to 42,133. Most of the population is White/Caucasian (78%) and about 18% of the population is Hispanic or Latino. The poverty rate is 4% (3% of children under 18, 5% for people 65 and older),3% do not have health Hazard History Vulnerability Maximum Threat Probability Total Threat S core Hazard Rank Hazard Tiers Wildfire 18 35 80 56 189 1 Earthquake - Cascadia 2 45 100 35 182 2 Earthquake - Crustal 6 50 100 21 177 3 Winter Storm 12 30 70 49 161 4 Extreme Heat Event 10 35 70 35 150 5 Drought 10 15 50 56 131 6 Flood 16 20 30 56 122 7 Windstorm 14 15 50 42 121 8 Landslide 14 15 20 63 112 9 Volcanic Event 2 25 50 7 84 10 Middle Tier Top Tier Bottom Tier Clackamas County NHMP: Lake Oswego Addendum Page | 17 insurance, and49% of renters pay more than 30% of their household income on rent (38% for owners). About 73% of the population has a bachelor’s degree or higher (1% do not have a high school degree). Approximately 8% of the population lives with a disability (19% of population 65 and older), and 46% are either below 15 (23%) or over 65 (23%) years of age. About 15% of the population are 65 or older and living alone and 5% are single parents. The City includes a diversity of land uses but is zoned primarily residential. About 73% of housing units are single-family, 27% are multifamily, and less than 1% are mobile homes. One quarter of homes (25%) were built before 1970 and 31% were built after 1990. Newer homes are more likely to be built to current seismic, flood, wildfire, and other hazard standards. Almost two-thirds (66%) of housing units are owner occupied, 27% are renter occupied, 2% are seasonal homes, and 5% are vacant. Transportation and Infrastructure In the City of Lake Oswego, the town is surrounded by hills on the north, and the south, the Willamette River to the east, and I-5 to the west. Highway 43, a State highway, runs through the eastside of town with Oswego Lake in the center of the City. The current freight railroad system is the Portland, and Western Railroad, which serves local, and regional industry. Lake Oswego’s commercial areas developed along primary routes, and residential development followed nearby. Motor vehicles represent the dominant mode of travel through and within Lake Oswego. Twenty-three percent (8%) of renters and 1% of owners do not have a vehicle. Most workers drive alone to work 69%); 5% carpool, 2% use public transit, 2% either walk or use a bicycle, and 20% work at home. Tri-Met provides local, and regional bus service, to serve the high number of commuters within the Tri-Met region. There are also free or donation-based shuttle services for residents going to the Adult Community Center, medical escorts for doctor appointments, wheelchair, and/or special transportation needs, and services provided by the Tri-Met Lift program.4 Economy Lake Oswego is an inner-urban suburb of the Portland metropolitan region, and has easy access to downtown Portland, and surrounding communities. There is significant economic activity happening within the City of Lake Oswego, making it a desirable place to live, work, and visit. The Kruse Way Corridor, from I-5 to Boones Ferry Road, is a significant economic engine within the City of Lake Oswego. About 48% of the resident population 16 and over is in the labor force (19,214 people) and are employed in a variety of occupations including professional (35%), management, business, and financial (31%), sales (10%), office and administrative (10%), and transportation and material moving (4%) occupations. Most workers residing in the city (88%, 14,887 people) travel outside of the city for work primarily to Portland and surrounding areas.3 A significant population of people travel to the city for work, (91% of the workforce, 20,464 people) primarily from Portland and surrounding areas.4 3 U.S. Census Bureau. LEHD Origin-Destination Employment Statistics (2002-2021). Longitudinal-Employer Household Dynamics Program, accessed on December 21, 2023 at https://onthemap.ces.census.gov. 4 Ibid. Clackamas County NHMP: Lake Oswego Addendum Page | 18 Table LO-3 Community Characteristics Source: U.S. Census Bureau, 2016-2021 American Community Survey; Portland State University, Population Research Center, "Annual Population Estimates", 2016 & 2022; Portland State University. METRO 2040 Population Distributed Forecast (2021, Exhibit A to Ordinance 21-1457). Note: ACS 5-year estimates represent average characteristics from 2012-2016 or 2017-2021. Sampling error may result in low reliability of data. This information or data is provided with the understanding that conclusions drawn from such information are the responsibility of the user. Refer to the original source documentation to better understand the data sources, results, methodologies, and limitations of each dataset presented. 2016 Population Estimate 37,425 2022 Population Estimate 41,148 10%Single-Family (includes duplexes)12,891 73% 2045 Population Forecast*42,133 2%Multi-Family 4,783 27% Mobile Homes (includes RV, Van, etc.)29 < 1% < 1% 8%Family Household 11,150 68% 1%Married couple (w/ children)4,183 25% < 1%Single (w/ children)836 5% 78%Living Alone 65+2,479 15% < 1% 7% Pre-1970 4,452 25% Hispanic or Latino/a (of any race)18% 1970-1989 7,765 44% Limited or No English Spoken 1,292 3% 1990-2009 4,356 25% 2010 or later 1,130 6% Less than 5 Years 1,883 5% Less than 15 Years 7,104 18%Owner-occupied 11,636 66% 65 Years and Older 8,483 21%Renter-occupied 4,822 27% 85 Years and Older 820 2%Seasonal 293 2% 0.63 Vacant 952 5% Total Disabled Population 3,138 8%No Vehicle (owner occupied)171 1% Children (Under 18)184 2%Two+ vehicles (owner occupied)8,989 77% Working Age (18 to 64)1,316 6%No Vehicle (renter occupied)385 8% Seniors (65 and older)1,638 19%Two+ vehicles (renter occupied)2,007 42% Less than $15,000 684 4%In labor Force (% Total Population)19,214 48% $15,000-$29,999 909 6%Unemployed (% Labor Force)1,014 5% $30,000-$44,999 1,104 7% $45,000-$59,999 1,388 8%Professional & Related 6,645 35% $60,000-$74,999 851 5%Management, Business, & Financial 5,991 31% $75,000-$99,999 1,867 11%Sales & Related 2,001 10% $100,000-$199,999 5,164 31%Office & Administrative 1,815 10% $200,000 or more 4,491 27%Transportation and Material Moving 726 4% $120,585 0.49 No Health Insurance 1,401 3% Public Health Insurance 11,247 28% Total Population 1,693 4%Private Health Insurance 33,606 83% Children (Under 18)302 3% Working Age (18 to 64)941 4%Drove Alone 13,068 69% Seniors (65 and older)450 5%Carpooled 1,031 5% Public Transit 458 2% Owners with a Mortgage 3,014 38%Motorcycle 23 < 1% Owners without a Mortgage 878 24%Bicycle/Walk 394 2% Renters 2,343 49%Work at Home 3,724 20% Occupation (Top 5) (Employed 16+) Median Household Income Health Insurance Gini Index of Income Inequality Poverty Rates (Percent age cohort) Transportation to Work (Workers 16+) Housing Cost Burden (Cost > 30% of household income) Age Dependency Ratio Income Characteristics Employment Characteristics Households by Income Category Labor Force (Population 16+) Disability Status (Percent age cohort)Vehicles Available (Occupied Units) Two or More Races Vulnerable Age Groups Housing Tenure and Vacancy Population Characteristics Population Growth Household Characteristics Black/ African American Native Hawaiian and Other Pacific Islander White Some Other Race Year Structure Built Housing Units Race American Indian and Alaska Native Household Type Asian Clackamas County NHMP: Lake Oswego Addendum Page | 19 Community Lifelines This section outlines the resources, facilities, and infrastructure that, if damaged, could significantly impact the public safety, economic conditions, and environmental integrity of the city. Community Lifelines are the most fundamental services in the community that, when stabilized, enable all other aspects of society to function. Mitigating these facilities will increase the community’s resilience. The community lifelines identified below were identified by the City of Lake Oswego. This integrated network of assets, services, and capabilities are used day-to-day to support the recurring needs of the community and enable all other aspects of society to function. Decisive intervention (e.g., rapid re- establishment or employment of contingency response solutions) is required to maintain/reestablish these facilities and services following a hazard incident. Critical Facilities Facilities that are critical and essential to government response, and recovery activities (i.e. life, safety, property, and environmental protection). These facilities include: 911 Centers, Emergency Operations Centers, Police and Fire Stations, Public Works facilities, sewer, and water facilities, hospitals, bridges, roads, shelters, and more. Table LO-4 includes critical facilities identified in the DOGAMI Risk Report (2024) and assumed impact from individual hazards. Table LO-4 Critical Facilities Critical Facilities by Community Flood 1% Annual Chance CSZ 9.0 Earthquake Moderate to Complete Damage Canby-Molalla Fault Mw-6.8 Moderate to Complete Damage Landslide High and Very High Susceptibility Wildfire High or Moderate Risk Exposed >50% Prob. >50% Prob. Exposed Exposed Bethlehem Christian Preschool - - X - - Forest Hills Elementary School - X X - - Hallinan Elementary School - - X - - Harmony Academy - X X - - International Leadership Academy - X X - - Lake Grove Elementary School - - X - - Lake Oswego Fire Department - Station 210 Westlake - - - - - Lake Oswego Fire Department - Station 211 Jean Road - X X - - Lake Oswego Fire Department - Station 212 South Shore - - - - - Lake Oswego Fire Department - Station 214 Main Station and Admin. - - - - - Lake Oswego Middle School - - - - - Lake Oswego Police Department - X X - - Lake Oswego Public Works - X X - - Lake Oswego High School - X X - - Lakeridge High School - X X - - Lakeridge Middle School - X X - - Legacy Medical Group - Lake Oswego - - - - - Mountain Park Kindercare - - - - - Oak Creek Elementary School - - - - - Clackamas County NHMP: Lake Oswego Addendum Page | 20 Critical Facilities by Community Flood 1% Annual Chance CSZ 9.0 Earthquake Moderate to Complete Damage Canby-Molalla Fault Mw-6.8 Moderate to Complete Damage Landslide High and Very High Susceptibility Wildfire High or Moderate Risk Exposed >50% Prob. >50% Prob. Exposed Exposed Our Lady of the Lake School - X X - - Palisades Elementary School - - X - - Park Academy - X X - - Portland - Tryon Creek WWTP - X X - - Providence Medical Group - Mercantile - X X - - River Grove Elementary School - X X - - Sonshine Express Preschool - - - - - Touchstone Elementary School - - - - - Uplands Elementary School - - X - - Village Montessori of Lake Oswego - - - - - West Hills Montessori School - Lake Oswego Campus - X X - - Westridge Elementary School - - X - - Westside Christian High School - - - - - Oswego Place Assisted Living y y The Pearl at Kruse Way y y The Springs at Carman Oaks y y The Springs Living at Lake Oswego y y Greenridge Estates y y The Stafford and Mary’s Woods y y Source: DOGAMI, Multi-Hazard Risk Report for Clackamas County, Oregon (2O24), Table A-24. Note: Oswego Place Assisted Living, The Pearl at Kruse Way, The Springs at Carman Oaks, The Springs Living at Lake Oswego, Greenridge Estates, and The Stafford and Mary’s Woods not included in the DOGAMI analysis. Hazard ranking providing by City (y). Additional Critical Facilities not included in the DOGAMI Risk Report: • City Hall (includes Police Department, 9-1-1 Center, and primary EOC) • Adult Community Shelter • Water Treatment Plant • Tennis Center Critical Infrastructure Infrastructure that provides necessary services for emergency response include: • Communications towers • Fiber optic lines • Highway 43 (State St.), McVey Avenue, Stafford Road • Highway 43 (State St.) and Sucker Creek Bridge • NW Natural gas pipelines and gas substations • Oswego Lake dam and headgate • Oswego Lake sanitary sewer interceptor • Portland & Western Railroad • Portland General Electric substations • Transportation networks, including all major roads and all bridges including Country Club Rd, Boones Ferry Rd, and Kruse Way • Tryon Creek Wastewater Treatment Plant, lift stations, and main lines Clackamas County NHMP: Lake Oswego Addendum Page | 21 • Water treatment plant, water pumping stations, major water lines, reservoirs, water intake on Clackamas River Essential Facilities Facilities that are essential to the continued delivery of key government services, and/or that may significantly impact the public’s ability to recover from the emergency. These facilities may include: community gathering places, commercial centers, and other public facilities such as school fields. • Area Churches • Forest Hills Elementary School • Hallinan Elementary School • Lake Grove Elementary School • Lake Oswego High School • Lakeridge High School • Lakeridge Middle School • Oak Creek Elementary School • Our Lady of the Lake School • Palisades Elementary School • Park Academy • River Grove Elementary School • St Stephen’s Academy South Campus • Uplands Elementary School • Westridge Elementary School • Lake Oswego Public Library • Lake Oswego Tennis Center • Lake Oswego Municipal Golf Course Environmental Facilities Environmental assets are those parks, green spaces, wetlands, and rivers that provide an aesthetic and functional ecosystem service for the community include: Bryant Woods Park, Canal Acres Natural Area, Cook’s Butte Park, Foothills Park, Freepons Park, George Roger Park, Hallinan Natural Area, Iron Mountain Park, Lake Grove Swim Park, Lake Oswego Hunt Club, Luscher Farm, Millennium Plaza Park, Oswego Lake, Oswego Lake Country Club Golf Course, River Run Park, Roehr Park, Rossman Park, Southwood Park, Springbrook Park, Sundeleaf Park, Tryon Cove Park, Tryon Creek State Natural Area, Tualatin River, East Waluga Park, West Waluga Park, Westlake Park, and the Willamette River. Vulnerable Populations Vulnerable populations, including seniors, disabled citizens, women, and children, as well those people living in poverty, often experience the impacts of natural hazards and disasters more acutely. Populations that have special needs or require special consideration include: Adult Care Facilities • Abby’s Adult Foster Care • Always Caring • Autumn Health Care II • Best Family Care • Cherry Crest Adult Care Home • Daniel’s Adult Care Home • Eva & Gabriel Adult Care Home • Felisia’s Adult Care Home • Greenridge Estates • Greentree Adult Care • Home Health for Life • Hillside Home Adult Care • Hope’s Sweet Home • Indian Springs Adult Care Home • Lake Oswego Care • Home Lake Oswego • Comfort Living Loving • Care Adult Care Home • Lucky’s Home • Mary’s Woods • Oswego Care Home LTD • Oswego Place Assisted Living • Oswego Pointe Adult Care Home • Rosewood Inn Adult Foster Care Clackamas County NHMP: Lake Oswego Addendum Page | 22 • Sunshine Adult Foster Care • The Pearl at Kruse Way • The Stafford • The Springs at Carman Oaks • The Springs Living at Lake Oswego Child Care Centers • Bethlehem Church Pre-School • Child’s View Montessori • Christ Church Episcopal Preschool • Community Arts Pre-School • DropNPlay • Early Years Children’s Center • International Leadership Academy • KCE Champions LLC (Palisades) • KCE Champions LLC (Westridge) • Kiddie Care Child Care • KinderCare (Lake Grove) • KinderCare (Monroe Pkwy) • King’s Children Preschool • Lake PreK • Maayan Ha Torah Day School • Maple Street Kids • Noah’s Arc Pre-School • Oswego Play School • Our Lady of the Lake Extended Care • Palisades School • Play Boutique/Peake Academy • Pipster Prep Lake Oswego • Riverdale After School Program • Sonshine Express Pre-School and Kindergarten • Sprout & Spark School • Storybook Daycare • The Children’s Hour Academy • The Play School at Mt. Park • Village Montessori • West Hills Montessori • Westridge Elementary School Hazardous Materials Facilities that, if damaged, could cause serious secondary impacts may also be considered “critical.” Hazardous materials sites are particularly vulnerable to earthquake, landslide, volcanic event, wildfire, and winter storm hazards. A hazardous material facility is one example of this type of critical facility. Those sites that store, manufacture, or use potentially hazardous materials include: Gas Stations, Biotronics, Bus Barn School District, Interstate 5, Lakeshore Concrete Co., Portland Willamette Railroad, Quest Corporation, State Highway 43, Taylor Made Labels Inc., Verizon Northwest Inc., Water Treatment Plant (in West Linn). Economic Assets/Population Centers Economic assets include businesses that employ large numbers of people and provide an economic resource to the city of Lake Oswego. If damaged, the loss of these economic assets could significantly affect economic stability, and prosperity. Population Centers usually are aligned with economic centers, and are a concern during evacuation/notification during a hazard event include: City Hall, Meadows Road and Center Pointe Complex, School District, SW Employment Area (Industrial Zone). Cultural and Historic Assets The cultural and historic heritage of a community is more than just tourist charm. For families that have lived in the city for generations and new resident alike, it is the unique places, stories, and annual events that makes the community an appealing place to live. The cultural and historic assets are both intangible benefits and obvious quality-of-life- enhancing amenities. Because of their role in defining and supporting the community, protecting these resources from the impact of disasters is important. Examples of the types of properties that should be considered before, during, and after an event include the following properties: Clackamas County NHMP: Lake Oswego Addendum Page | 23 • Allen House I and II • Angler’s Club • Aquinas Hall • Bickner Building • Black House • Brown-Vose House • Bryant Home • Marker • Carl House • Carmen House • Carter House • Christie School • Clara Weinstein House • Cleary House • Collard House • Conway House • Davidson House • Didzun House • Eastman House • Education Hall • Erickson House • F. Davidson House • Flavia Hall • Harris House • Headrick-Carothers House • Hofer House • Iron Furnace Chimney • Jantzen Estate • Johnson Barn • Klose House • Laidlaw House • Lake Grove Fire Station • Lake Oswego Country Club • Lake Oswego Hunt Club • Lakewood School • Larson School • Log Hoist • Lueg House • Marylhurst Administration Building • Marylhurst Cemetery/Alter • McCall House • McWaters House • Methodist Episcopal Church • Mulder House • Murphy Company Building • Noel Dew House • Odd Fellows Hall • Old Mine Trail • Parelius House • Parron House • Peg Tree • Pioneer Cemetery • Rogers Building I and II • Rogers House • Rosentreter House • Sacred Heart School • Shepard House • Smith House • St. Catherine’s Dormitory • Sundeleaf House • Trueblood House • Tualatin-Oswego Canal • Tug Masters House • Twinings House • Van Houten House • Vose House • Waldfork House • Warren House • White House • Worker’s Cottage • Worthington House Hazard Characteristics Drought The HMAC determined that the City’s probability for drought is high and that their vulnerability to drought is low. The probability rating did not change and the vulnerability rating decreased since the previous version of this NHMP. Volume I, Section 2 describes the characteristics of drought hazards, history, as well as the location, extent, and probability of a potential event. Due to the climate of Clackamas County, past and present weather conditions have shown an increasing potential for drought. Lake Oswego draws its main water supply from the Clackamas River intake facility in Gladstone, which is then treated at the Water Treatment Plant in West Linn.5 The West Linn Water Treatment Plant was originally built in unincorporated Clackamas County for the City of Lake Oswego in the 1960s, it now 5 Water Source, and System. Lake Oswego Tigard Water Partnership. Last visited 10/9/18. http://lotigardwater.org/?p=water- source-and-system Clackamas County NHMP: Lake Oswego Addendum Page | 24 serves multiple jurisdictions-- including Tigard, and Lake Oswego. There was recently a project completed in October 2017 to increase the treated water capacity (to 38 million gallons per day) for residents of Lake Oswego, and Tigard.6 The treatment plant has two different utility substations on the property for back up electricity, and has agreements with other treatment plants around the region for water use that creates redundancies within the water supply system for residents, and businesses. During the 2020 windstorm, both power sources at the water treatment plant were comprised. The Engineering Department is currently preparing the designs to develop onsite emergency backup power to the treatment plant and the water intake facility in Gladstone. Vulnerability Assessment Due to insufficient data and resources, Lake Oswego is currently unable to perform a quantitative risk assessment, or exposure analysis, for this hazard. For a list of facilities and infrastructure vulnerable to this hazard see the Community Assets Section and Table LO-44. Future Projections According to the Oregon Climate Change Research Institute “Future Climate Projections, Clackamas County,”7 drought, as represented by low summer soil moisture, low spring snowpack, low summer runoff, and low summer precipitation, is projected to become more frequent in Clackamas County by the 2050s. Increasingly frequent droughts will have economic and social impacts upon those who depend upon predictable growing periods (ranches, farms, vineyards, gardeners) as well as upon the price and availability of fresh vegetables. It may also stress local jurisdiction’s ability to provide water for irrigation or commercial and household use. Earthquake (Cascadia Subduction Zone) The HMAC determined that the City’s probability for a Cascadia Subduction Zone (CSZ) earthquake is moderate and that their vulnerability to a CSZ earthquake is high. The probability and vulnerability rating did not change since the previous version of this NHMP. Volume I, Section 2 describes the characteristics of earthquake hazards, history, as well as the location, extent, and probability of a potential event. Generally, an event that affects the County is likely to affect Lake Oswego as well. The causes and characteristics of an earthquake event are appropriately described within Volume I, Section 2 as well as the location and extent of potential hazards. Previous occurrences are well documented within Volume I, Section 2 and the community impacts described by the County would generally be the same for Lake Oswego as well. Within the Northern Willamette Valley/Portland Metro Region, three potential faults and/or zones can generate high-magnitude earthquakes. These include the Cascadia Subduction Zone, Gales Creek- Newberg-Mt Angel Structural Zone, Portland Hills Fault Zone, and the Canby-Lake Oswego Fault Zone (discussed in the crustal earthquake section). Cascadia Subduction Zone The Cascadia Subduction Zone is a 680-mile-long zone of active tectonic convergence where oceanic crust of the Juan de Fuca Plate is subducting beneath the North American continent at a rate of 4 cm per 6 Lake Oswego-Tigard Water Treatment Plant. Public Works, City of West Linn. Last visited 10/9/18: https://westlinnoregon.gov/publicworks/lake-oswego-tigard-water-treatment-plant 7 Oregon Climate Change Research Institute, Future Climate Projections, Clackamas County, Oregon. February 2023. Clackamas County NHMP: Lake Oswego Addendum Page | 25 year. Scientists have found evidence that 11 large, tsunami-producing earthquakes have occurred off the Pacific Northwest coast in the past 6,000 years. These earthquakes took place roughly between 300 and 5,400 years ago with an average occurrence interval of about 510 years. The most recent of these large earthquakes took place in approximately 1700 A.D.8 The city’s proximity to the Cascadia Subduction Zone, potential slope instability and the prevalence of certain soils subject to liquefaction and amplification combine to give the city a high-risk profile. Due to the expected pattern of damage resulting from a CSZ event, the Oregon Resilience Plan divides the State into four distinct zones and places the city predominately within the “Valley Zone” (Valley Zone, from the summit of the Coast Range to the summit of the Cascades). Within the Northwest Oregon region, damage and shaking is expected to be strong and widespread - an event will be disruptive to daily life and commerce and the main priority is expected to be restoring services to business and residents. The City is not within the severe shaking area, though there is significant area around the City that have severe and very severe shaking if a large earthquake were to occur. Figure LO-2 displays relative shaking hazards from a Cascadia Subduction Zone earthquake event. As shown in the figure, most of the city is expected to experience very strong shaking (orange), while areas around the city will experience severe shaking (light red) (shown by the red northeast corner) in a CSZ event. Figure LO-2 Cascadia Subduction Zone Expected Shaking Source: Map created by Oregon Partnership for Disaster Resilience. 8 The Cascadia Region Earthquake Workgroup, 2005. Cascadia Subduction Zone Earthquakes: A magnitude 9.0 earthquake scenario. http://www.crew.org/PDFs/CREWSubductionZoneSmall.pdf Clackamas County NHMP: Lake Oswego Addendum Page | 26 Data: Oregon Department of Geology and Mineral Industries. Preparedness Framework Implementation Team (IRIS v3). Note: To view hazard detail click this link to access Oregon HazVu Earthquake (Crustal) The HMAC determined that the City’s probability for a crustal earthquake is low and that their vulnerability to crustal earthquake is high. These ratings did not change since the previous version of this NHMP. Volume I, Section 2 describes the causes and characteristics of earthquake hazards, history, as well as the location, extent, and probability of a potential event. Generally, an event that affects the County is likely to affect Lake Oswego as well. Figure LO-3 shows a generalized geologic map of the Lake Oswego area that includes the areas for potential regional active faults, earthquake history (1971-2008), and soft soils (liquefaction) hazard. The figure shows the areas of greatest concern within the City limits as red and orange. Figure LO-3 Active Crustal Faults, Epicenters (1971-2008), and Soft Soils Source: Map created by Oregon Partnership for Disaster Resilience. Data: Oregon Department of Geology and Mineral Industries. Preparedness Framework Implementation Team (IRIS v3). Note: To view hazard detail click this link to access Oregon HazVu Earthquake-induced damages are difficult to predict, and depend on the size, type, and location of the earthquake, as well as site-specific building, and soil characteristics. Presently, it is not possible to accurately forecast the location or size of earthquakes, but it is possible to predict the behavior of soil at any site. In many major earthquakes, damages have primarily been caused by the behavior of the soil. Clackamas County NHMP: Lake Oswego Addendum Page | 27 There are two potential crustal faults and/or zones near the City that can generate high- magnitude earthquakes. These include the Gales Creek-Mt. Angel Structural Zone (about 15 miles southwest of the city, not pictured) and the Portland Hills Fault Zone (about 3 miles northwest of the city, not pictured). The fault pictured in the southwest is the Canby-Molalla Fault, the Bolton Fault runs through Oswego Lake, and the Oatfield Fault is pictured in the northeast. More distant is the Mt. Hood Fault in eastern Clackamas County which has potential to impact Lake Oswego. Historical records count over 56 earthquakes in the Portland-metro area. The more severe ones occurred in 1877, 1880, 1953 and 1962. The most recent severe earthquake was the March 25, 1993 Scotts Mills quake. It was a 5.6 magnitude quake with aftershocks continuing at least through April 8. Canby-Lake Oswego Fault Zone The Canby-Lake Oswego Fault Zone is a series of NE-trending fault that vertically displace the Columbia River Basalt with discontinuous aeromagnetic anomalies that represent significant offset of Eocene basement and volcanic rocks. The fault zone extends for 31 miles from the vicinity of Tigard south through the towns of Canby and Lake Oswego in northern Oregon. Portland Hills Fault Zone The Portland Hills Fault Zone is a series of NW-trending faults that vertically displace the Columbia River Basalt by 1,130 feet and appear to control thickness changes in late Pleistocene (approx. 780,000 years ago) sediment. The fault zone extends along the eastern margin of the Portland Hills for 25 miles and lies about 3 miles northwest of Lake Oswego. Vulnerability Assessment In 2018 the Department of Geology and Mineral Industries (DOGAMI) completed a regional impact analysis for earthquakes originating from the Cascadia Subduction Zone and Portland Hills faults (O-18- 02). Findings from that report are provided at the end of the crustal earthquakes hazard section. City Hall, the Main Fire Station, and the Adult Community Center are critical facilities exposed to relative earthquake hazard Zone A, the highest hazard zone. Seismic design standards range by category from Seismic Zone 1 to Seismic Zone 4. Occupancy Category IV is the highest design standard achievable. Construction of the new City Hall was completed in September 2021. City Hall contains the City’s law enforcement and emergency dispatch facilities as well as the City’s primary Emergency Operations Center (EOC) and is considered an essential facility. City Hall was built to meet Category IV risk standards pursuant to Section 202 of the 2014 Oregon Structural Specialty Code. As such, it is intended to remain operational in the event of extreme environmental event, including flood, wind, snow, or earthquake. The Main Fire Station, and the main building of the new Maintenance Center, which houses the alternate EOC, were built to Occupancy Category IV standards, a step above the required standard for Seismic Zone 3. The Maintenance Center’s vehicle barn/motor pool was built to Occupancy Category III standards. The Adult Community Center, which would serve as an emergency short-term shelter, has not had any seismic upgrades, and does not meet modern seismic standards. Several Essential Facilities are in the high earthquake hazard zone. These facilities include the former Marylhurst University building, Lake Grove Elementary (proposed to be replaced, voter approval required). Our Lady of the Lake School, and several churches, which could potentially serve as Red Cross shelter sites. Operation of and access to exposed infrastructure including the Oswego Lake headgate, City water pumping stations, a PGE substation and the communications towers located at City Hall, could potentially be impacted during an earthquake. Other exposed infrastructure including wastewater main lines, major water lines, natural gas pipeline and fiber optic lines are buried, however they are also vulnerable to damage from earthquake hazards, potentially limiting or delaying access for the purposes of operation or Clackamas County NHMP: Lake Oswego Addendum Page | 28 repair. The fiber optic lines located along Highway 43/State Street, McVey Avenue and Stafford Road is a significant communication link for the entire region. The City’s fresh drinking water supply comes from the water treatment plant in West Linn and is in earthquake hazard Zone A (highest hazard), while the water intake located on the Clackamas River in Gladstone is in Zone C. The water line from the West Linn water treatment plant enters Lake Oswego along Highway 43, which crosses through earthquake Zone A. The water treatment plant and the intake have been upgraded to earthquake Zone 4 standards. There are 16 reservoirs serving Lake Oswego. The three newest reservoirs, Touchstone II, McNary II, and Palisades II were constructed to earthquake Zone 4 standards. The regional Emergency Transportation Route follows State Highway 43 from the northern City limits, and continues south on State Street to McVey Avenue, and then southwest to and along Stafford Road. The Emergency Transportation Route passes through earthquake hazard Zone A at the northern City limits along State Street, possibly impacting access to and from the City. The City, working with Clackamas County, is currently working on evacuation plans and zones based on key roadways, neighborhood and community areas, geographic features, and population. Additionally, several the City’s environmental assets are exposed to the high earthquake hazard. These include Iron Mountain Park, Canal Acres Natural Area, River Run Park, Glenmorrie Park, Foothills Park, Roehr Park, Rossman Park, and Tryon Creek State Natural Area. Seismic building codes were implemented in Oregon in the 1970s; however, stricter standards did not take effect until 1991 and early 2000s. As noted in the community profile, approximately 69% of residential buildings were built prior to 1990, which increases the City’s vulnerability to the earthquake hazard. Information on specific public buildings’ (schools and public safety) estimated seismic resistance, determined by DOGAMI in 2007, is shown in Table LO-6; each “X” represents one building within that ranking category. Of the facilities evaluated by DOGAMI using their Rapid Visual Survey (RVS), zero (0) have a very high (100% chance) collapse potential, however, seven (7) schools have a high (greater than 10% chance) collapse potential. For a list of facilities and infrastructure vulnerable to this hazard, see the Community Assets Section and Table LO-4. In addition to building damages, utility (electric power, water, wastewater, natural gas), and transportation systems (bridges, pipelines) are also likely to experience significant damage. There is a low probability that a major earthquake will result in failure of upstream dams. Utility systems will be significantly damaged, including damaged buildings, and damage to utility infrastructure, including water treatment plants, and equipment at high voltage substations (especially 230 kV or higher which are more vulnerable than lower voltage substations). Buried pipe systems will suffer extensive damage with approximately one break per mile in soft soil areas. There would be a much lower rate of pipe breaks in other areas. Restoration of utility services will require substantial mutual aid from utilities outside of the affected area. Clackamas County NHMP: Lake Oswego Addendum Page | 29 Table LO-5 Rapid Visual Survey Scores Facility Site ID* Level of Collapse Potential Low (<1%) Moderate (>1%) High (>10%) Very High (100%) Schools Bryant Elementary (4750 Jean Rd) Clac_sch03 Closed in 2013 Forest Hills Elementary^^ (1133 Andrews Rd) Clac_sch04 (X) X Hallinan Elementary (16800 Hawthorne Dr) see mitigation successes Clac_sch05 X Lake Grove Elementary^^ (15777 Boones Ferry Rd) Clac_sch06 (X) X Lake Oswego Middle^ (2500 Country Club Rd) see mitigation successes Clac_sch10 (X) X Lake Oswego High (2501 Country Club Rd) see mitigation successes Clac_sch12 X Lakeridge Junior High (4700 Jean Rd) see mitigation successes Clac_sch11 Structure rebuilt ca. 2022 Lakeridge High (1235 Overlook Dr) see mitigation successes Clac_sch13 X Oak Creek Elementary (55 Kingsgate Rd) see mitigation successes Clac_sch74 (X) X Palisades Elementary (1500 Greentree Ave) Clac_sch69 X Rivergrove Elementary^ (5850 McEwan Rd) see mitigation successes Clac_sch07 (X) X Uplands Elementary (2055 Wembley Park Rd) see mitigation successes Clac_sch08 X Westridge Elementary (3400 Royce Way) see mitigation successes Clac_sch09 X Fire Facilities Fire Department Station 210 Westlake (4900 Melrose St) Clac_fir21 X Clackamas County NHMP: Lake Oswego Addendum Page | 30 Facility Site ID* Level of Collapse Potential Low (<1%) Moderate (>1%) High (>10%) Very High (100%) Fire Department Station 211 Jean Road (4555 Jean Rd) Clac_fir23 X Fire Department Station 212 South Shore (1880 S Shore Blvd) Clac_fir07 X Fire Department Station 214 Main Station and Admin. (300 B Ave) Clac_fir06 X Police Facilities Police Dept/ EOC/ City Hall (380 A Ave) Clac_pol02 Structure rebuilt ca. 2021 Source: DOGAMI 2007. Open File Report 0-07-02. Statewide Seismic Needs Assessment Using Rapid Visual Assessment. “*” – Site ID is referenced on the RVS Clackamas County Map Note 1: Collapse potential ratings indicated in parentheses (x) provided in 2008 by Froelich Consulting Engineers. Note 2: ^ Phase 2 (2021) proposes to demolish and rebuild this school (voter approval required). Lake Oswego MS is scheduled to be rebuilt in 2025/2025. Will be built to a Category IV seismic level. Rivergrove Elementary school is currently being rebuilt (ca. 2024). Will be built to a Category IV seismic level. Note 3: ^^ Phase 3 (2025) proposes to demolish and rebuild this school (voter approval required) Earthquake Regional Impact Analysis In 2018 DOGAMI completed a regional impact analysis for earthquakes originating from the Cascadia Subduction Zone and Portland Hills faults (O-18-02). Their study focused on damage to buildings, and the people that occupy them, and on two key infrastructure sectors: electric power transmission and emergency transportation routes. Each earthquake was studied with wet and dry soil conditions and for events that occur during the daytime (2 PM) and nighttime (2 AM). Impacts to buildings and people were tabulated at the county, jurisdictional (city), and neighborhood unit level. Estimated damage varied widely across the study area depending on local geology, soil moisture conditions, type of building, and distance from the studied faults. In general, damage from the Cascadia Subduction Zone scenario was greater in the western portion of the study area, however, damage could still be significant in some areas east of the Willamette River. The report found that damage to high-value commercial and industrial buildings was high since many of these facilities are in areas of high to very high liquefaction hazard. Casualties were higher during the daytime scenario (generally double) since more people would be at work and occupying non-wood structures that fare worse in an earthquake. The Portland Hills fault scenario created greater damages than the Cascade Subduction Zone scenario due primarily to its placement relative to population centers and regional assets; however, at distances 15 or more miles from the Portland Hills fault the damages from the Cascadia Subduction Zone scenario generally were higher. In both the Cascadia Subduction Zone and Portland Hills Fault scenarios it is forecasted that emergency transportation routes will be fragmented, affecting the distribution of goods and services, conditions are worse under the Portland Hills Fault scenario. Portions of the electric distribution system are also expected to be impacted under both scenarios; however, the impact is considerably less than it is to the transportation routes. Additional capacity or redundancy within the electric distribution network may be beneficial in select areas that are likely to have greater impacts. Table LO-6 shows the permanent resident population that are vulnerable to injury or death (casualty) and the buildings in the City that are susceptible to liquefaction and landslides, it does not predict that damage will occur in specific areas due to either liquefaction or landslide. More population and property Clackamas County NHMP: Lake Oswego Addendum Page | 31 are exposed to higher degrees of expected damage or casualty under the Portland Hills Fault “wet” scenario than in any other scenario. Table LO-6 Expected damages and casualties for the CSZ fault and Portland Hills fault: earthquake, soil moisture, and event time scenarios Source: DOGAMI, Earthquake regional impact analysis for Clackamas, Multnomah, and Washington Counties, Oregon (2018, O- 18-02), Tables 12-8, 12-9, 12-10, and 12-11. Cascadia Subduction Zone Scenario The City of Lake Oswego is expected to have a 5% building loss ratio with a repair cost of $337 million under the CSZ “dry” scenario, and an 8% building loss ratio with a repair cost of $523 million under the “wet” scenario.9 The city is expected to have around 174 daytime or 50 nighttime casualties during the CSZ “dry” scenario and 258 daytime or 130 nighttime casualties during the “wet” scenario. It is expected that there will be a long-term displaced population of around 220 for the CSZ “dry” scenario and 1,207 for the “wet” scenario.10 (See Risk Report content for additional information.) Portland Hills Fault Scenario The City of Lake Oswego is expected to have a 28% building loss ratio with a repair cost of $1.877 billion under the Portland Hills Fault “dry” scenario, and a 35% building loss ratio with a repair cost of $2.377 billion under the “wet” scenario.11 The long-term displaced population and casualties are greatly increased for all the Portland Hills Fault scenarios. The city is expected to have around 965 daytime or 418 nighttime casualties during the “dry” scenario and 1,194 daytime or 659 nighttime casualties during the “wet” scenario. It is expected that there will be a long-term displaced population of around 3,243 for the “dry” scenario and 6,391 for the “wet” scenario.12 Recommendations from the report included topics within Planning, Recovery, Resiliency: Buildings, Resiliency: Infrastructure Improvements, Resiliency: Essential and Critical Facilities, Enhanced Emergency Management Tools, Database Improvements, Public Awareness, and Future Reports. The recommendations of this study are largely incorporated within this NHMP’s mitigation strategies (Table LO-1 and Volume I, Section 3). For more detailed information on the report, the damage estimates, and 9 DOGAMI, Earthquake regional impact analysis for Clackamas, Multnomah, and Washington Counties, Oregon (2018, O-18-02), Tables 12-8 and 12-9. 10 Ibid, Tables 12-8 and 12-9. 11 Ibid, Tables 12-10 and 12-11 12 Ibid, Tables 12-10 and 12-11. "Dry" Soil "Wet" Saturated Soil "Dry" Soil "Wet" Saturated Soil Number of Buildings 13,770 13,770 13,770 13,770 Building Value ($ Million)6,805 6,805 6,805 6,805 Building Repair Cost ($ Million)337 523 1,877 2,377 Building Loss Ratio 5%8%28%35% Debris (Thousands of Tons)134 184 552 685 Long-Term Displaced Population 220 1,207 3,243 6,391 Total Casualties (Daytime)174 258 965 1,194 Level 4 (Killed)8 12 53 65 Total Casualties (NIghttime)50 130 418 659 Level 4 (Killed)2 4 14 21 Cascadia Subduction Zone (M9.0)Portland Hills Fault (M6.8) Clackamas County NHMP: Lake Oswego Addendum Page | 32 the recommendations see: Earthquake regional impact analysis for Clackamas, Multnomah, and Washington Counties, Oregon (2018, O-18-02). Natural Hazard Risk Report for Clackamas County The Risk Report (DOGAMI, 2O24)13 provides hazard analysis summary tables that identify populations and property countywide that are vulnerable to the earthquake hazard. According to the Risk Report the following population and property within the study area may be impacted by the profiled events: Cascadia Subduction Zone event (M9.0 Deterministic): 752 buildings (15 critical facilities) are expected to be damaged for a total potential loss of $665 million (a loss ratio of about 8%). Over 1,000 residents may be displaced (about 3% of the population). Crustal event (Canby-Molalla fault M6.8 Deterministic): 2,353 buildings are expected to be damaged (21 critical facilities), for a total potential loss of $1.5 billion (a loss ratio of about 17%). More than 2,600 residents may be displaced (about 7% of the population). Future Projections Future development (residential, commercial, or industrial) within Clackamas County will be at risk to earthquake impacts, although this risk can be mitigated by the adoption and enforcement of high development and building standards. Reducing risks to vulnerable populations should be considered during the redevelopment of existing properties. Mitigation Activities Earthquake mitigation activities listed here include current mitigation programs and activities that are being implemented by Lake Oswego agencies or organizations. A primary mitigation objective is to construct or upgrade critical and essential facilities and infrastructure to withstand future earthquake events. The Main Fire Station, a critical facility which serves as an alternate to the City’s Emergency Operations Center (EOC), was constructed to Seismic Zone 4 standards. The South Shore Fire Station recently underwent seismic upgrades, and upgrades have been completed at the West Lake and Jean Road Fire Stations to harden the apparatus bays. Seismic upgrades have also been made to the City’s water treatment plant to ensure it remains operational after a magnitude seven earthquake. Additionally, school remodels must now include seismic upgrades and the installation of sprinkler systems. City Hall which contains the police department and 9-1-1 dispatch center (LOCOM) and the City’s primary EOC, was rebuilt to meet Category IV risk standards pursuant to Section 202 of the 2014 Oregon Structural Specialty Code in 2021. The City's Maintenance Center, which houses Public Works and Parks Maintenance, was rebuilt in 2017. The main building was built to category 4 seismic code (highest available) and the motor pool shop/vehicle barn was built to a category 3. Completed in 2017, the City's Water Treatment Plant, which serves the City of Lake Oswego and Tigard, was designed to seismic standards above current codes. In addition, the City’s wastewater (sewer) interceptor system was completely rebuilt and seismically upgraded with the LOIS Project, including the overhead mains into the treatment plant. 13 DOGAMI, Multi-Hazard Risk Report for Clackamas County, Oregon (2O24), Table A-24. Clackamas County NHMP: Lake Oswego Addendum Page | 33 Flood The HMAC determined that the City’s probability of flooding is high and that their vulnerability to flooding is moderate. These ratings did not change since the previous version of this NHMP. Volume I, Section 2 describes the characteristics of flood hazards, history, as well as the location, extent, and probability of a potential event. Figure LO-4 illustrates the flood hazard area for Lake Oswego. Volume I, Section 2 describes the characteristics of flood hazards, history, as well as the location, extent, and probability of a potential event. Portions of Lake Oswego have areas of floodplains (special flood hazard areas, SFHA). These include areas include along Willamette River, Tualatin River, Oswego Canal, and Oswego Lake (Figure LO-4). Furthermore, other portions of Lake Oswego, outside of the mapped floodplains, are also subject to flooding from local storm water drainage. Figure LO-4 FEMA Flood Zones Source: Map created by Oregon Partnership for Disaster Resilience. Data: Oregon Department of Geology and Mineral Industries. Preparedness Framework Implementation Team (IRIS v3). Note: To view hazard detail click this link to access Oregon HazVu Oswego Lake and Canal Oswego Lake is three and a half miles long, with the main portion covering 385 acres, and an additional seven acres in West Bay and 28 acres in Lakewood Bay. The Lake is a reservoir and is privately owned and managed by the Lake Oswego Corporation, commonly known as The Lake Corporation. The Lake Corporation has owned and maintained the Lake since 1942. In addition to its natural resource values, Oswego Lake is a multiple-use facility that serves the community in a variety of roles. It is a hydroelectric reservoir at the center of a 7,400-acre drainage basin. The lake receives most of its water from streams, Clackamas County NHMP: Lake Oswego Addendum Page | 34 storm drain outfalls, and surface runoff. Also, there is a City sanitary sewer interceptor below the lake’s normal surface water elevation that has been constructed at an engineered grade to convey sewage to the Tryon Creek Sewage Treatment Plant. A spillover dam was completed in 1921 that raised the lake and greatly increased its size, creating Blue Heron Bay and West Bay on the west end of the lake, and Lakewood Bay on the east end.14 Floods can have a devastating impact on almost every aspect of the community, including private property damage, public infrastructure damage, and economic loss from business interruption. It is important for the City to be aware of flooding impacts and assess its level of risk. The City has been proactive in mitigating flood hazards by purchasing floodplain property. The economic losses due to business closures often total more than the initial property losses that result from flood events. Business owners, and their employees are significantly impacted by flood events. Direct damages from flooding are the most common impacts, but indirect damages, such as diminished clientele, can be just as debilitating to a business. For mitigation planning purposes, it is important to recognize that flood risk for a community is not limited only to areas of mapped floodplains. Other portions of Lake Oswego outside of the mapped floodplains may also be at relatively high risk from over bank flooding from streams too small to be mapped by FEMA or from local storm water drainage. The City of Lake Oswego has been impacted by floods several times since incorporating in 1910. There have been at least six events in the past fifty years which have caused widespread damage. Flooding within the City has been caused by the Willamette River, Tualatin River, Oswego Canal, and Oswego Lake. The FEMA Flood Insurance Study (June 17, 2008) has a brief history of flooding in Clackamas County, and Lake Oswego (Volume I, Section 2). The highest recorded flood levels on the Tualatin River were recorded on February 10, 1996. The period of record on this river only extends back to 1928. As measured from the Oswego Canal Inlet gage, this record flood reached an elevation of 120.12 feet (National Geodetic Vertical Datum of 1929, NGVD). Waters that normally flow from the Tualatin River into the Oswego Canal are regulated by the canal headgate structure which has a top of headgate height of 113.6 feet. Once Tualatin River levels exceeded the top of headgate, the water flows unimpeded into the canal, and northward to Oswego Lake. When the river reaches a level of 117.5 feet, water begins to leave the north banks of the Tualatin near the 5400 block of Dogwood Drive, and then migrates across Sycamore Avenue eventually rejoining the main Oswego Canal near Childs Road, and Bryant Woods Park. In 2011-2012 the Oswego Lake Corporation completed a dam spillway modification project funded by a FEMA Flood Mitigation Assistance grant via the City of Lake Oswego. The project involved the installation of new, larger, spillway gates, sized to allow the passage to the 100-year flood flows. The project resulted in the lowering of the base flood elevation (BFE) by 3.5 feet (to 99.7 feet NGVD of 1929), which is below the top of the seawall on the main lake, Lakewood Bay, Westlake, and Blue Heron Canal. The Letter of Map Revision (LOMR) covering the entirety of Oswego Lake is effective as of August 31, 2012. Before the flood project the Lake Corporation’s ability to release water at the east end of Oswego Lake was outstripped by the flows entering the lake from the Oswego Canal, and the lake level would rise uncontrollably. Dozens of homes, businesses, and boathouses were damaged by these floodwaters. Properties along Dogwood Drive, Melissa Drive, Canal Road, Pioneer Court, Bryant Road, Cardinal Drive, Kelok Road, Sarah Hill Lane, Lake Haven Drive, Canal Circle, many homes surrounding Oswego Lake 14 Comprehensive Plan of the City of Lake Oswego. Adopted December, 1994 Clackamas County NHMP: Lake Oswego Addendum Page | 35 (including all bays, and canals), businesses along State Street from the railroad crossing south to North Shore Road, plus many apartments, businesses, and carports in the Oswego Pointe area all experienced severe water, and structural damage. With the completion of the dam spillway modification project flooding is no longer expected to happen to the homes surrounding Oswego Lake (including all bays, Blue Heron canal), businesses along State Street from the railroad crossing south to North Shore Road, plus many apartments, businesses, and carports in the Oswego Pointe area, with the exception that there might be some minor roadway flooding (less than a foot deep) on North Shore at North Shore Circle, Eena Road, and perhaps at South Shore Boulevard near the Gerber Pond. Heavy rains following a severe winter storm from January 1 to 2, 2009 contributed to a sewer interceptor overflow on Cardinal Drive near Oswego Canal. Approximately 226,000 gallons of wastewater were sent out of the sewer system. Maintenance crews were able to capture about 75% of the discharge using vacuum trucks. Record flooding is usually accompanied by low elevation snows in the Coast, and Cascade Mountain foothills. Often snow is on the ground at the 1,000’ elevation, and sometimes it is even present all the way down to sea level. Larger than normal snow depths in the middle, easily melted, elevations such as 2000’ to 3,500’ are another major source of water runoff. These depths are frequently observed at the Saddle Mountain Snowtel station located at 3,250’ in the Coast range of western Washington County. Both the 1964, and 1996 floods were preceded by a period of sub-freezing temperatures that caused the soils of the drainage basins to solidify and become relatively impervious. Finally, there is a rainfall pattern known as the “Pineapple Express” which brings very heavy, and warm rains from the southwest. These warm rains begin their journey from parts of the Pacific near Hawaii, holding their heat, and moisture until making landfall along the Oregon coast. As an example, at 1 A.M. on the morning of February 8, 1996, the temperature had risen to 61°F with a driving rain following a period of freezing conditions. This warm rainstorm preceded the flood crest on the Willamette River by 2.5 days. Vulnerability Assessment The City of Lake Oswego GIS Department completed an analysis, using the best available data, as a component of the vulnerability assessment in 2013 and reviewed and updated it, as appropriate, in 2018. This analysis looked at identified hazard areas in conjunction with available data on property exposed to the hazard. Exposure of community assets to natural hazards was determined by manually comparing critical and essential facilities and infrastructure with each hazard and identifying where assets and hazards intersected. While no essential or critical facilities are in the floodplain, several critical infrastructure and environmental assets are exposed to the flood hazard. Exposed critical infrastructure includes Tryon Creek Wastewater Treatment Plant, Oswego Lake sanitary sewer interceptor, Oswego Lake dam and headgate, Highway 43, McVey Avenue, wastewater main lines, water lines, NW Natural gas pipelines, the fiber optic line along Highway 43, several wastewater lift stations, and the Foothills power substation. Exposed environmental assets include Bryant Woods Park, Canal Acres Natural Area, Foothills Park, George Rogers Park, Iron Mountain Park, Lake Grove Swim Park, Lake Oswego Hunt Club, Lake Oswego Swim Park, Millennium Park, River Run Park, Roehr Park, and Tryon Creek State Park. The Tryon Creek Wastewater Treatment Plant, located in the Foothills area, is located on a parcel that is affected by the Flood Management Area. In off-peak hours, the facility is remotely operated, reducing potential life safety issues from a flood hazard. However, flood conditions that result in a change in hydraulics could affect the operation of the facility. Clackamas County NHMP: Lake Oswego Addendum Page | 36 The water transmission main from the intake on the Clackamas River in Gladstone is susceptible to flooding hazards. The transmission main is buried in the peninsula but can be exposed in a large flood, making it susceptible to damage. Additionally, prolonged periods of rain can cause the sewer interceptor system to back up and flow out of manholes and into Oswego Lake or onto streets near the lake. The three wastewater main lines located in the Foothills area are elevated above ground level, potentially increasing susceptibility to flood damage. Other exposed infrastructure including wastewater main lines, natural gas pipeline and fiber optic lines are buried, decreasing their vulnerability to damage from flood hazards. However, these service lines and pipes could be exposed in large flooding events and become susceptible to damage. Hazardous flood conditions could potentially limit or delay access for the purposes of operation or repair. The fiber optic line located in Highway 43/State Street, McVey Avenue and Stafford Road is a significant communication link for the entire region. The regional Emergency Transportation Route follows State Highway 43 from the northern City limits, and continues south on State Street to McVey Avenue, and then southwest along Stafford Road. This route crosses a bridge on McVey Road (Oswego Lake Outlet/McVey Ave. Bridge) that could be potentially affected during flood conditions. Culverts located along the Emergency Transportation Route could also be affected during hazardous conditions as flood waters could exceed the hydraulic capacity of the facility. For a list of facilities and infrastructure vulnerable to this hazard see the Community Assets Section and Table LO-4. 2024 Natural Hazard Risk Report for Clackamas County The Risk Report (DOGAMI, 2O24)15 provides hazard analysis summary tables that identify populations and property countywide that are vulnerable to the flood hazard. According to the Risk Report, 82 buildings could be damaged for a total potential loss of $6.6 million (a building loss ratio of less than 1%). About 224 residents may be displaced by flood (less than 1% of the population). National Flood Insurance Program (NFIP) FEMA’s Flood Insurance Study (FIS), and Flood Insurance Rate Maps (FIRMs) are effective as of June 17, 2008. The City complies with the NFIP through enforcement of their flood damage prevention ordinance and their floodplain management program. The last Community Assistance Visit (CAV) for Lake Oswego was on August 28th, 2003. Lake Oswego does not participate in the Community Rating System (CRS). The Community Repetitive Loss record (Table LO-7) identifies one (1) Repetitive Loss Property 16 and zero (0) Severe Repetitive Loss Properties 17. For information on the location of the property see Volume I, Section 2, Figure 14. 15 DOGAMI, Multi-Hazard Risk Report for Clackamas County, Oregon (2O24), Table A-24. 16 A Repetitive Loss (RL) property is any insurable building for which two or more claims of more than $1,000 were paid by the National Flood Insurance Program (NFIP) within any rolling ten-year period, since 1978. A RL property may or may not be currently insured by the NFIP. 17 A Severe Repetitive Loss (SRL) property is a single family property (consisting of 1 to 4 residences) that is covered under flood insurance by the NFIP and has incurred flood-related damage for which 4 or more separate claims payments have been paid under flood insurance coverage, with the amount of each claim payment exceeding $5,000 and with cumulative amount of such claims payments exceeding $20,000; or for which at least 2 separate claims payments have been made with the cumulative amount of such claims exceeding the reported value of the property. Clackamas County NHMP: Lake Oswego Addendum Page | 37 Table LO-7 Community Repetitive Loss Properties Source: FEMA Region X, Regional Flood Insurance Liaison, email February 23, 2023. Future Projections According to the Oregon Climate Change Research Institute “Future Climate Projections, Clackamas County,”18 winter flood risk at mid- to low elevations in Clackamas County, where temperatures are near freezing during winter and precipitation is a mix of rain and snow, is projected to increase as winter temperatures increase. The temperature increase will lead to an increase in the percentage of precipitation falling as rain rather than snow. The projected increases in total precipitation, and in rain relative to snow, likely will increase flood magnitudes in the region. Vulnerable populations adjacent to floodways (including the unhoused, manufactured home communities, and campground occupants) will be more at risk as the winter flood risk increases. Flood Mitigation Projects Between 2009-2011, the City replaced the Lake Oswego Interceptor Sewer (LOIS), which is located in Oswego Lake. The project also involved seismic upgrades to the elevated wastewater mains that lead into the Tryon Creek Wastewater Treatment Plant. The previous interceptor was undersized, resulting in overflows during heavy rains and was vulnerable during an earthquake. Replacement of LOIS was critical to ensuring the environmental protection of Oswego Lake and maintaining sewer service for residents. The project was identified in Lake Oswego’s 2004 mitigation plan addendum. Lake Oswego has completed a study to incrementally model the flood levels of the Tualatin River. The final product of this effort is the production of a series of flood inundation area maps that are based upon the level of the river as measured at the USGS “West Linn” gage station. The city will use these maps to provide critical information to the Emergency Operation Center and crews in the field in an effort to better manage flood response. The maps will allow for strategic allocation of resources necessary to evacuate specific areas, close threatened roads, set up detours and deploy sand bagging materials. The Engineering Division is developing a drainage improvement plan for the First Addition Neighborhood. Currently, due to a lack of designed neighborhood-wide drainage system, rainwater does not drain properly and streets can flood in this neighborhood. The improvements include the design and construction of new storm drainage systems throughout the neighborhood. The new drainage systems will help to reduce the amount of roadway sediments and pollutants entering into the drainage system, by utilizing various methods such as pollution control manholes and catch basins, infiltration swales, and compost filters. The FAN drainage plan was completed and identifies several projects. The projects have been included in the city CIP Plan, and to date, several have been constructed. In 2003, Lake Oswego commissioned a study, “Evaluation of Flood Management Alternatives for Oswego Lake and Canal” (Pacific Water Resources, Inc., June, 2003) which detailed strategies to help alleviate 18 Oregon Climate Change Research Institute, Future Climate Projections, Clackamas County, Oregon. February 2023. RL # RL or SRL Property Occupancy Mitigated? Currently NFIP Insured Rated Flood Zone Post FIRM Paid Claims Total Paid Amount 86066 RL Single Family No Yes C No 2 $52,587 2 $52,587Total Clackamas County NHMP: Lake Oswego Addendum Page | 38 flooding of Oswego Lake. In the fall of 2009, the City completed a surface water master plan called the “Clean Streams Plan,” a completed action item from the 2004 mitigation plan. After the 1996 flood event the City of Lake Oswego commissioned a study, “Lakewood Bay Flood Protection at North Shore Road Bridge” (Pacific Water Resources, June 30, 2000), to evaluate the event of the 1996 flood and what impacts would be experienced by the main part of Oswego Lake if Lakewood Bay were isolated during a similar flood event. During a flood event, blocking the inlet of Lakewood Bay would stop flood waters from filling the bay and overtopping State Street (Highway 43), as occurred in 1996. During the 1996 flood, State Street was flooded and blocked for over a day, affecting emergency access to the eastern part of Lake Oswego. With improvements to the dam spillway in 2011-2012, the city will no longer need to consider blocking the flow path into Lakewood Bay. All flood flows (up to the 100-yr event) will spill over the dam. During the flood event in 1996, the primary cause of the flooding in the Foothills Road area was due to two sources. Both sources have since been mitigated, as described below: • A low point in the levy behind (north of) the Tryon Creek Treatment Plant allowed flood waters from the Tryon Creek/Willamette River to overtop the levy and enter the Foothills Road area. The City of Portland has since made repairs and improvements to address the problem. • A large diameter storm drain pipe that receives runoff from an area of downtown (200+ acres) drains through the Toklat Industries parking lot and discharges into Tryon Creek. Flood waters from the Tryon Creek/Willamette River system backed up through this storm system, surcharging the manholes and catch basins, contributing to the flooding in the Foothills Road area. Subsequently, this problem has been rectified. Redundant check valves have been installed on the storm pipes to prevent back up, and two pump stations have been designed and built that will accept the runoff generated in the upstream drainage basin and “force” it into the drain pipe and through the submerged outlet. The smaller pump station is an electric submersible pump, designed to handle runoff that accumulates at the Lakeshore Concrete site. Should power fail during a flood event, the pump is positioned so a trailer- mounted portable generator can be plugged into the control panel to provide backup power. The other pump station is located at the north end of Toklat Industries parking lot. These are two variable speed pumps with a combined capacity of 5,000 GPM. Each pump is powered by a Ford six-cylinder engine, fueled with natural gas. In the event of a loss of supply of natural gas, the backup power source is a power take-off (PTO) drive that is mounted on the vertical drive shaft of the pumps. City Maintenance staff would then mobilize a piece of equipment that employs hydraulics (such as a back-hoe, tractor, or dump truck,) and plug in the quick-connect hoses (stored on site) into the PTO and the piece of mobile equipment. These pumps were installed in the late 1990’s and City Maintenance staff is familiar with their operation. These systems are inspected and exercised on a regular basis. In 2011-2012 the Oswego Lake Corporation completed a dam spillway modification projected funded by a FEMA Flood Mitigation Assistance grant via the City of Lake Oswego (see above for more information). Clackamas County NHMP: Lake Oswego Addendum Page | 39 Landslide The HMAC determined that the City’s probability for landslide is high and that their vulnerability to landslide is low. These ratings did not change since the previous version of this NHMP. Volume I, Section 2 describes the characteristics of landslide hazards, history, as well as the location, extent, and probability of a potential event within the region. Most of Lake Oswego demonstrates a low to moderate landslide susceptibility exposure, with an area of high exposure around Mountain Park. Approximately 14% of Lake Oswego has very high or high, and approximately 44% moderate, landslide susceptibility exposure. The City’s wastewater main lines, major water lines, and fiber optic lines are identified as being especially vulnerable. Landslide susceptibility exposure for Lake Oswego is shown in Figure LO-5. Figure LO-5 Landslide Susceptibility Exposure Source: Map created by Oregon Partnership for Disaster Resilience. Data: Oregon Department of Geology and Mineral Industries. Preparedness Framework Implementation Team (IRIS v3). Note: To view hazard detail click this link to access Oregon HazVu The City’s drinking water supply comes from the 38 million gallon per day Lake Oswego - Tigard Water Treatment Plant. Located in West Linn, the plant uses water sourced from the Clackamas River in Gladstone to serve Tigard and Lake Oswego. Electricity for the water treatment plant is provided through separate connections located on its property with two utility substations. There are also agreements with other regional water suppliers for back up sources of drinking water. The water line from the City’s water treatment plant located in West Linn enters the City along Highway 43, and runs north through George Rogers Park, an area vulnerable to landslide hazards. The fiber optic Clackamas County NHMP: Lake Oswego Addendum Page | 40 line located in Highway 43/State Street, McVey Avenue, and Stafford Road is a significant communication link for the entire region. The last major landslide event occurred in 2009 when a large landslide originated from the slopes above Green Bluff Drive in the Marylhurst area and slid into a home on Woodhurst Place just after 1:00am. Twenty-one homes, and twenty-eight people were evacuated, while five people were transported to the hospital. The Adult Community Center was opened to accommodate families in need of shelter. A second slide down the hill from Green Bluff damaged another home, and the right of way. A third slide on Oak Street deposited earth onto the road and diverted runoff to the properties downhill. Additional landslide events occurred on February 2, 2008 in George Rogers Park, leading to the closure of the pathway between George Rogers Park and Old River Road for five months; in 2008 on Green Street; in December 2007, a rain event led to three slides on Iron Mountain Boulevard and Green Bluff; in 2007 on Eagle Crest Drive and Glenmorrie Drive; in 2006 on Royce Way, Oak Street, and Laurel Street; and in 2004 on Kerr Parkway, Del Prado Street, and Oak Terrace. Vulnerability Assessment DOGAMI completed a statewide landslide susceptibility assessment in 2016 (O-16-02). Potential landslide-related impacts are adequately described within Volume I, Section 2, and include infrastructure damages, economic impacts (due to isolation, and/or arterial road closures), property damages, and obstruction to evacuation routes. Rain-induced landslides, and debris flows can potentially occur during any winter, and thoroughfares beyond City limits are susceptible to obstruction as well. For a list of facilities and infrastructure vulnerable to this hazard see the Community Assets Section and Table LO-4. Note that even if a jurisdiction has a high percentage of area in a high or very high landslide exposure susceptibility zone, this does not mean there is a high risk, because risk is the intersection of hazard, and assets. The most common type of landslides are slides caused by erosion. Slides move in contact with the underlying surface, are generally slow moving, and can be deep. Rainfall-initiated landslides tend to be smaller; while earthquake induced landslides may be quite large. All soil types can be affected by natural landslide triggering conditions. The Adult Community Center, a critical facility, is within a potential landslide area and is exposed to landslide hazards. However, the portion of the parcel that contains the Adult Community Center is relatively flat, while the undeveloped rear portion of the parcel is at the top of a steep slope leading down to Tryon Creek, thereby minimizing risks of the facility to the landslide hazard. The Hallinan School and Westridge Elementary are essential facilities exposed to the landslide hazard. Exposed infrastructure including wastewater main lines, major water lines and fiber optic lines are buried, decreasing their vulnerability to damage from landslide hazards. However, hazardous landslide conditions could potentially damage the infrastructure and limit or delay access for the purposes of operation or repair. The City’s fresh drinking water supply comes from the water treatment plant in West Linn, with the water intake located on the Clackamas River in Gladstone. The water line from the City’s water treatment plant located in West Linn enters the City along Highway 43 and runs north through George Rogers Park, an area vulnerable to landslide hazards. The fiber optic line located in Highway 43/State Street, McVey Avenue and Stafford Road is a significant communication link for the entire region. Exposed environmental assets include George Rogers Park, Iron Mountain Park, Lake Oswego Hunt Club, Lake Oswego Swim Park, and Tryon Creek State Natural Area. Clackamas County NHMP: Lake Oswego Addendum Page | 41 The regional Emergency Transportation Route follows State Highway 43 from the north City limits, and continues south on State Street to McVey Avenue, and then southwest along Stafford Road. At the northern City limits, the Emergency Transportation Route along State Street passes through a potential landslide area, possibly impacting access to and from the City. The portion of Lake Oswego in Multnomah County, primarily the northern part of the Mountain Park neighborhood, contains steep slopes that are potentially susceptible to landslide hazards. Additionally, a communications tower that is used for emergency communications is in this area on Mt. Sylvania. Natural Hazard Risk Report for Clackamas County The Risk Report (DOGAMI, 2O24)19 provides hazard analysis summary tables that identify populations and property countywide that are vulnerable to the landslide hazard. According to the Risk Report 1,305 buildings (no critical facilities) are exposed to the high and very high landslide susceptibility hazard for a total exposure of $791.5 million (a building exposure ratio of about 9%). About 4,500 residents may be displaced by landslides (about 11% of the population). Future Projections Landslides are often triggered by rainfall when the soil becomes saturated. As a surrogate measure of landslide risk, the Oregon Climate Change Research Institute report presents a threshold based on recent precipitation (cumulative precipitation over the previous 3 days) and antecedent precipitation (cumulative precipitation on the 15 days prior to the previous 3 days). By the 2050s under the higher emissions scenario, the average number of days per year in Clackamas County on which the landslide risk threshold is exceeded is not projected to change substantially. However, landslide risk depends on multiple factors, and this metric, which is based on precipitation, does not reflect all aspects of the hazard. Additional triggers, such as earthquakes, wildfires, or development, can increase risks of landslides. Future development along slopes or adjacent to riverbanks will be a greater risk of impact from this hazard. Severe Weather Severe weather can account for a variety of intense, and potentially damaging hazard events. These events include extreme heat, windstorms, and winter storms. The following section describes the unique probability, and vulnerability of each identified weather hazard. Extreme Heat The HMAC determined that the City’s probability for extreme heat events is moderate and that their vulnerability is moderate. The probability rating increased and the vulnerability rating did not change since the previous version of this NHMP. Volume I, Section 2 describes the characteristics of extreme heat, history, as well as the location, extent, and probability of a potential event within the region. Generally, an event that affects the County is likely to affect the City as well. A severe heat episode or "heat wave" occurs about every two to three years, and typically lasting two to three days but can last as many as five days. A severe heat episode can be defined as consecutive days of upper 90s to around 100. Severe heat hazard in the Portland metro region can be described as the 19 DOGAMI, Multi-Hazard Risk Report for Clackamas County, Oregon (2O24), Table A-24. Clackamas County NHMP: Lake Oswego Addendum Page | 42 average number of days with temperatures greater than or equal to 90-degrees, or 100-degrees, Fahrenheit. On average the region experiences 13.6 days with temperatures above 90-degrees Fahrenheit, and 1.4 days above 100-degrees Fahrenheit, based on new 30-year climate averages (1981- 2010) from the National Weather Service – Portland Weather Forecast Office. The City of Lake Oswego has not experienced any life-threatening consequences from the few historical extreme heat events, although changes in climate indicate that the area should expect to see more extreme heat events. resulting from hazards. Future Projections According to the Oregon Climate Change Research Institute “Future Climate Projections, Clackamas County,”20 the number, duration, and intensity of extreme heat events will increase as temperatures continue to warm. In Clackamas County, the number of extremely hot days (days on which the temperature is 90°F or higher) and the temperature on the hottest day of the year are projected to increase by the 2020s and 2050s under both the lower (RCP 4.5) and higher (RCP 8.5) emissions scenarios. The number of days per year with temperatures 90°F or higher is projected to increase by an average of 12 (range 3–21) by the 2050s, relative to the 1971–2000 historical baselines, under the higher emissions scenario. The temperature on the hottest day of the year is projected to increase by an average of about 7°F (range 2–11°F) by the 2050s. Higher temperatures and longer/more extreme heat events will have negative impacts upon vulnerable populations such as those over 65+, children, those living in older or temporary housing, and field workers. Windstorm The HMAC determined that the City’s probability for windstorm is moderate and that their vulnerability to windstorm is low. The probability rating did not change and the vulnerability rating decreased since the previous version of this NHMP. Volume I, Section 2 describes the characteristics of windstorm hazards, history, as well as the location, extent, and probability of a potential event within the region. Because windstorms typically occur during winter months, they are sometimes accompanied by flooding and winter storms (ice, freezing rain, and very rarely, snow). Other severe weather events that may accompany windstorms, including thunderstorms, hail, lightning strikes, and tornadoes are generally negligible for Lake Oswego. During a 2021 windstorm, wind caused one minor injury, property damage, power outages, and road closures due to falling tree limbs. Community members also reported flooding, including in the Lake Oswego Public Library. Additionally, both electric power sources at the West Linn Water Treatment Plant were compromised. The Engineering Dept is currently preparing a design to develop onsite emergency backup power to the treatment plant and the water intake facility in Gladstone. Volume I, Section 2 describes the impacts caused by windstorms, including power outages, downed trees, heavy precipitation, building damages, and storm-related debris. Additionally, transportation and economic disruptions result as well. Damage from high winds generally has resulted in downed utility lines, and trees usually limited to several localized areas. Electrical power can be out anywhere from a few hours to several days. Outdoor signs have also suffered damage. If the high winds are accompanied by rain (which they often are), blowing leaves, and debris clog drainage-ways, which in turn may cause localized urban flooding. 20 Oregon Climate Change Research Institute, Future Climate Projections, Clackamas County, Oregon. February 2023. Clackamas County NHMP: Lake Oswego Addendum Page | 43 Future Projections Limited research suggests little if any change in the frequency and intensity of windstorms in the Northwest as a result of climate change. Those impacted by windstorms at present, including older residential or commercial developments with above-ground utilities, poor insulation or older construction, heavy tree canopies, or poor storm drainage, will continue to be impacted by windstorms in the future. Winter Storm (Snow/Ice) The HMAC determined that the City’s probability for winter storm is moderate and that their vulnerability to winter storm is moderate. The probability rating decreased and the vulnerability rating did not change since the previous version of this NHMP. Volume I, Section 2 describes the characteristics of winter storm hazards, history, as well as the location, extent, and probability of a potential event within the region. Severe winter storms can consist of rain, freezing rain, ice, snow, cold temperatures, and wind. They originate from troughs of low pressure offshore that ride along the jet stream during fall, winter, and early spring months. Severe winter storms affecting the City typically originate in the Gulf of Alaska or in the central Pacific Ocean. These storms are most common from November through March. Major winter storms can, and have occurred in the Lake Oswego area, including in December 2008 with the largest winter storm in forty years. The storm led to significant power outages, eight water main breaks, and hazardous road conditions. The City contracted forces to assist in snow removal efforts. Additional recent winter storm (including wind) events occurred in 2021, December 2016/January 2017, January 2016, December 2015 (DR-4258), February 2014 (snow/ice), January 2009, December 2008, and December 2007. During a winter snow/ice storm in 2021 power was lost throughout the City due to down trees impacting power lines. Water became a significant issue as power was lost at the River Intake Pump Station (RIPS). No permanent generator exists at this location cause extreme difficulty “wiring in” a generator during the weather event. Most winter storms typically do not cause significant damage; however, they are frequent, and have the potential to impact economic activity. Road and rail closures due to winter weather are an uncommon occurrence but can interrupt commuter and commercial traffic as noted above. Vulnerability Assessment Due to insufficient data and resources, Lake Oswego is currently unable to perform a quantitative risk assessment, or exposure analysis, for the extreme heat, windstorm, and winter storm hazards. For a list of facilities and infrastructure vulnerable to these hazards see the Community Assets Section and Table LO-4. Future Projections According to the Oregon Climate Change Research Institute “Future Climate Projections, Clackamas County,”21 cold extremes will become less frequent and intense as the climate warms. In Clackamas County, the number of cold days (maximum temperature 32°F or lower) per year is projected to decrease by an average of 6 (range -3– -8) by the 2050s, relative to the 1971–2000 historical baselines, under the 21 Oregon Climate Change Research Institute, Future Climate Projections, Clackamas County, Oregon. February 2023. Clackamas County NHMP: Lake Oswego Addendum Page | 44 higher emissions scenario. The temperature on the coldest night of the year is projected to increase by an average of 6°F (range 0– 11°F) by the 2050s. The intensity of extreme precipitation is expected to increase as the atmosphere warms and holds more water vapor. In Clackamas County, the number of days per year with at least 0.75 inches of precipitation is not projected to change substantially. However, by the 2050s, the amount of precipitation on the wettest day and wettest consecutive five days per year is projected to increase by an average of 15% (range 0–31%) and 10% (range -1–26%), respectively, relative to the 1971–2000 historical baselines, under the higher emissions scenario. Vulnerable populations will be more likely to experience the negative impacts of winter storms in the future, particularly the unhoused and the elderly. Volcanic Event The HMAC determined that the City’s probability for a volcanic event is low and that their vulnerability to a volcanic event is moderate. These ratings did not change since the previous version of this NHMP. Volume I, Section 2 describes the characteristics of volcanic event hazards, history, as well as the location, extent, and probability of a potential event within the region. Volcanoes are located near Lake Oswego, the closest of which are Mount Hood, Mount Adams, Mount Saint Helens, Mount Rainier, and the Three Sisters. Vulnerability Assessment Due to Lake Oswego’s relative distance from volcanoes, the city is unlikely to experience the immediate effects that eruptions have on surrounding areas (i.e., mud and debris flows, or lahars). Depending on wind patterns and which volcano erupts, however, the city may experience ashfall. The eruption of Mount St. Helens in 1980, for example, coated the Willamette Valley with a fine layer of ash. If Mount Hood erupts, however, the city could experience a heavier coating of ash. Future Projections Although the science of volcano predictions is improving, it remains challenging to predict a potential volcanic event. Ash fall, which will be the greatest impact, will impact the entire County. Impacts will be felt hardest by property managers (ranches, farmers, etc.) and by those relying upon clean surface water (for drinking water production and irrigation). Natural Hazard Risk Report for Clackamas County The Risk Report (DOGAMI, 2O24)22 provides hazard analysis summary tables that identify populations and property countywide that are vulnerable to the volcanic event (lahar) hazard. The Risk Report did not identify population or property within the study area that may be impacted by the profiled volcanic event (lahar) hazard. 22 DOGAMI, Multi-Hazard Risk Report for Clackamas County, Oregon (2O24), Table A-24. Clackamas County NHMP: Lake Oswego Addendum Page | 45 Wildfire The HMAC determined that the City’s probability for wildfire is high, and that their vulnerability to wildfire is moderate. The probability rating increased and the vulnerability rating did not change since the previous version of this NHMP. The Clackamas County Community Wildfire Protection Plan (CWPP) is hereby incorporated into this NHMP addendum by reference, and it will serve as the wildfire section for this addendum. The following presents a summary of key information; refer to the full CWPP for a complete description, and evaluation of the wildfire hazard. Information specific to Lake Oswego is found in the following chapter: Chapter 9.8: Lake Oswego Fire Department. Volume I, Section 2 describes the characteristics of wildland fire hazards, history, as well as the location, extent, and probability of a potential event within the region. The location and extent of a wildland fire vary depending on fuel, topography, and weather conditions. The forested hills within, and surrounding Lake Oswego are interface areas. High Priority Communities at Risk (CARs) include: Iron Mountain Bluff, Palisades, Cooks Butte Park, and Mountain Park. Medium priority CARs include: Tryon Creek State Park, Springbrook Park, and Waluga Park.23 These areas are characterized by varying housing structures (often large houses on small lots, some with shake roofs), natural, and ornamental vegetation, and topography that may increase the risk for wildfire spreading.24 Most of the city has less severe (moderate or less) wildfire burn probability that includes expected flame lengths less than four-feet under normal weather conditions. 25 However, conditions vary widely and with local topography, fuels, and local weather (including wind) conditions. Under warm, dry, windy, and drought conditions expect higher likelihood of fire starts, higher intensity, more ember activity, and a more difficult to control wildfire that will include more fire effects and impacts. Weather and urbanization conditions are primarily at cause for the hazard level. Lake Oswego has not experienced a wildfire within City limits, but the city has abundant wooded areas that are a concern in the case of a wildfire event. Figure LO-6 shows overall wildfire risk in Lake Oswego. Clackamas County has two major physiographic regions: the Willamette River Valley in western Clackamas County and the Cascade Range Mountains in eastern and southern Clackamas County. The Willamette River Valley, which includes Lake Oswego, is the most heavily populated portion of the county and is characterized by flat or gently hilly topography. The Cascade Range has a relatively small population and is characterized by heavily forested slopes. Eastern Clackamas County is at higher risk to wildfire than western portions of the county due to its dense forest land. Human caused fires are responsible for most fires in Clackamas County. 23 Clackamas County Community Wildfire Protection Plan, Lake Oswego Fire Department (2018), Table 10.8-1. 24 Ibid. 25 Oregon Wildfire Risk Explorer, date accessed November 9, 2018. Clackamas County NHMP: Lake Oswego Addendum Page | 46 Figure LO-6 Wildfire Risk Source: Map created by Oregon Partnership for Disaster Resilience. Data: Oregon statewide wildfire risk map created by Oregon State University (unpublished). Preparedness Framework Implementation Team (IRIS v3). Note: To view additional wildfire risk information click this link to access Oregon Explorer’s CWPP Planning Tool Vulnerability Assessment The potential community impacts, and vulnerabilities described in Volume I, Section 2 are generally accurate for the City as well. Lake Oswego’s fire response is addressed within the CWPP which assesses wildfire risk, maps wildland urban interface areas, and includes actions to mitigate wildfire risk. The City will update the City’s wildfire risk assessment if the fire plan presents better data during future updates (an action item is included to participate in future updates to the CWPP). Property can be damaged or destroyed with one fire as structures, vegetation, and other flammables easily merge to become unpredictable, and hard to manage. Other factors that affect ability to effectively respond to a wildfire include access to the location, and to water, response time from the fire station, availability of personnel, and equipment, and weather (e.g., heat, low humidity, high winds, and drought). The Adult Community Center, a critical facility, is exposed to a high hazard wildfire area. The rear (northern) portion of the parcel is covered with trees, and slopes steeply down to Tyron Creek, potentially exposing the facility and limiting its availability as an emergency short- term site in the event of a wildfire. The South Shore Fire Station is another critical facility in the high wildfire hazard zone. Essential facilities exposed to high wildfire hazard include Oak Creek Elementary, Westridge Elementary, Hallinan Elementary, Uplands Elementary, Forest Hills Elementary, the area west of Lake Oswego Jr. High, portions of the former Marylhurst University campus, and several churches, which could potentially serve as Red Cross shelter sites. Clackamas County NHMP: Lake Oswego Addendum Page | 47 Exposed infrastructure including wastewater main lines, major water lines, natural gas pipeline and fiber optic lines are buried, decreasing their vulnerability to damage from wildfire hazards. However, wildfire conditions could potentially limit or delay access for the purposes of operation or repair. The City’s fresh drinking water supply comes from a water treatment plant in West Linn, with the water intake located on the Clackamas River in Gladstone. The water line from the City’s water treatment plant in West Linn enters the City along Highway 43/State Street and runs north through George Rogers Park. This alignment includes areas that could be vulnerable to wildfire hazards. The fiber optic line located along Highway 43/State Street, McVey Avenue and Stafford Road is a significant communication link for the entire region. Operation of and access to other exposed infrastructure including the Oswego Lake headgate, several water pumping stations and reservoirs, a PGE substation in the Mountain Park area and communications towers used for emergency communications located on Cook’s Butte and Mt. Sylvania, could be potentially impacted during a wildfire hazard. The regional Emergency Transportation Route follows State Highway 43 from the northern City limits, and continues south on State Street to McVey Avenue, and then southwest to and along Stafford Road. The Emergency Transportation Route passes through several high wildfire hazard areas, at the northern City limits along State Street and McVey Avenue to the south, possibly impacting access to and from the City. Several Lake Oswego’s parks and open spaces are considered wildfire hazards. These include Bryant Woods Park, Canal Acres Natural Area, Cooks Butte Park, Freepons Park, George Rogers Park, Hallinan Natural Area, Iron Mountain Park, River Run Park, Roehr Park, Lake Grove Swim Park, Southwood Park, Springbrook Park, and Waluga Park (parks and open spaces denoted in bold are considered high or medium priority CARs within the CWPP, see above for more information). Fuels reduction priority areas identified in the CWPP include: Cooks Butte Park, Iron Mountain Bluff, Springbrook Park, Tryon Park, and Waluga Park. For the portion of Lake Oswego in Multnomah County, primarily the northern part of the Mountain Park neighborhood, Lake Oswego Fire Department staff has determined that due to the steep slopes and wooded character of this neighborhood, the wildfire hazard ranges from moderate to high. Natural Hazard Risk Report for Clackamas County The Risk Report (DOGAMI, 2O24)26 provides hazard analysis summary tables that identify populations and property countywide that are vulnerable to the wildfire hazard. According to the Risk Report 233 buildings (no critical facilities) are exposed to the high and (or) moderate (medium) risk wildfire hazard for a total exposure of $124.8 million (a building exposure ratio of about 2%). About 765 residents may be displaced by wildfires (about 2% of the population). Future Projections According to the Oregon Climate Change Research Institute “Future Climate Projections, Clackamas County,”27 wildfire frequency, intensity, and area burned are projected to continue increasing in the Northwest. Wildfire risk, expressed as the average number of days per year on which fire danger is very high, is projected to increase in Clackamas County by 14 (range -6– 34) by the 2050s, relative to the historical baseline (1971–2000), under the higher emissions scenario. Similarly, the average number of days per year on which vapor pressure deficit is extreme is projected to increase by 29 (range 10–44) by the 2050s. Communities at risk to wildfire include those within the urban wildfire interface or along river 26 DOGAMI, Multi-Hazard Risk Report for Clackamas County, Oregon (2O24), Table A-24. 27 Oregon Climate Change Research Institute, Future Climate Projections, Clackamas County, Oregon. February 2023. Clackamas County NHMP: Lake Oswego Addendum Page | 48 or creek corridors, where fire can travel quickly. Communities will need to address growing wildfire risks if populations are not restricted from expanding further into higher risk areas. Clackamas County NHMP: Lake Oswego Addendum Page | 49 Attachment A: Action Item Changes Table LO-8 is an accounting of the status (complete or not complete) and major changes to actions since the previous NHMP. All actions were renumbered in this update to be consistent with other jurisdictions that are participating in the multi-jurisdictional NHMP. All actions marked not complete are ongoing, are still relevant, and are included in the updated action plan (Table LO-1). Previous NHMP Actions that are Complete: Multi-Hazard #3, “Address wireless communication deficiencies locally and regionally.” Complete. • In 2022, the Clackamas County Public Safety Radio Communications System replaced its outdated analog system with a new digital emergency radio system. This system is used by the multi- agency Clackamas 800 Radio Group (C800). The new digital radio system was funded in part from bond funds (Ballot Measure 3-476). • In January 2024, City Council approved a contract with Motorola Solutions, Inc. to replacer 9-1-1 telephone and mapping equipment. The State Office of emergency Management will reimburse the cost through 9-1-1 state telephone fees. • Lake Oswego's Emergency Operations Center (EOC) has been set up for Family Radio Service (FRS) and General Mobile Radio Service (GMRS) systems. Multi-Hazard #5, “Upgrade Lake Oswego wastewater system.” Complete. • The Lake Oswego Interceptor Sewer (LOIS) was completed in June 2011. This project replaced the 20,000-foot interceptor pipe that forms the backbone of the City’s sewer collection system and is in Oswego Lake. Sewer from roughly 75% of Lake Oswego households and businesses flows through the interceptor pipe to Portland’s Tryon Creek Wastewater Treatment Facility in the Foothills area. (Note - An interceptor sewer line or pipe is a large sewer line that controls the flow of sewage to the treatment plant. It collects the sewage from main and trunk sewer pipes and carries it to the treatment plant.) The LOIS project included seismic upgrades to the new sewer main as well as seismic retrofits to the elevated sewer mains in the Foothills area. Wildfire #2, “Develop and implement an Urban Forest Fire Management Plan. Complete. In December 2022, the City Council adopted a Natural Area Habitat Management Plan. In the plan, Objective 4 - Reduce Wildfire Hazards states: The natural areas that make Lake Oswego a beautiful and desirable place to live and work inherently come with the risk of wildfire by supplying a potential fuel source. Fire hazards are present when there is fuel (e.g., wood) combined with conditions related to local topography and seasonal weather, particularly relative humidity, heat, and wind. Lake Oswego’s Fire Department website provides instructions for maintaining defensible space and fire-resistant plants along the interface between human developments and forested areas. The City’s Addendum to the Multi-Jurisdictional Hazard Mitigation Plan lists wildfire hazards for neighborhoods bordering specific natural areas, including Iron Mountain Bluff, Palisades neighborhood, Tryon Creek State Park, Springbrook Park, and Waluga Park. In general, this objective is met by reducing fuels along the periphery of natural areas where they are adjacent to human developments. Because of the risk posed by fallen trees or debris generated during windstorms, the City should monitor the edges of these natural areas and identify hazards. Then, within one year or less, those Clackamas County NHMP: Lake Oswego Addendum Page | 50 hazards should then be removed to the park interior or modified (e.g., chipped) to create a less hazardous condition. Success Criteria: City will monitor applicable park boundaries at least once every two years and remove fire hazards observed within those boundaries within one year. Actions taken to thin dense vegetation and reduce woody debris piles within these edge areas will be documented in a Natural Areas Management Plan Effectiveness Monitoring Report once every five years. For this action item, the City also: • Ongoing - Target areas of brush and implement management strategies that are consistent with habitat protection requirements; • Ongoing - Replace flammable non-native vegetation with native plants that are less flammable; and • Completed - Enhance water storage facilities and water distribution systems (including hydrants) to serve the wild land/urban interface. In addition, an early draft of the update to the City’s Urban and Community Forestry Plan (UCFP) has been completed. The UCFP brings together policies, practices, and plans related to Lake Oswego’s urban forest and serves as a planning and policy tool for managing our urban forest. The UCFP includes some high- level policy guidance related to fire. The final UCFP is expected to be adopted by City Council in Spring 2024. The City's 2020 Sustainability and Climate Action Plan also contains information relating to wildfires, specifically, noting how proper management of forests will reduce the risk of wildfire events and protect natural resources. Previous NHMP Actions that are Not Complete and No Longer Relevant: None identified. Clackamas County NHMP: Lake Oswego Addendum Page | 51 Table LO-8 Status of All Hazard Mitigation Actions in the Previous Plan 2019 Action Item 2024 Action Item Status Still Relevant? (Yes/No) Multi-Hazard #1 #1 Not Complete, revised Yes Multi-Hazard #2 #2 Not Complete Yes Multi-Hazard #3 - Complete No Multi-Hazard #4 #3 Not Complete Yes Multi-Hazard #5 - Complete No - #4 New - Earthquake #1 #5 Not Complete, revised Yes Flood #1 #6 Not Complete Yes Landslide #1 #7 Not Complete Yes Severe Weather #1 #8 Not Complete, revised Yes Wildfire #1 #9, #10 Not Complete Yes Wildfire #2 - Complete No Wildfire #3 #11 Not Complete Yes Clackamas County NHMP: Lake Oswego Addendum Page | 52 Attachment B: Public Involvement Summary Members of the steering committee provided edits and updates to the NHMP prior to the public review period as reflected in the final document. To provide the public information regarding the draft NHMP addendum, and provide an opportunity for comment, an announcement (see below) was provided from February 15 through March 8 on the City’s website. The plan was also posted and announced on the County’s website. There were several comments provided that have been reviewed and integrated into the NHMP as applicable. Additional opportunities for stakeholders and the public to be involved in the planning process are addressed in Volume III, Appendix B. A diverse array of agencies and organizations were provided an opportunity to provide input to inform the plan’s content through a variety of mechanisms including the opportunity for comment on the draft plan. The agencies and organizations represent local and regional agencies involved in hazard mitigation activities, those that have the authority to regulate development, neighboring communities, representatives of businesses, academia, and other private organizations, and representatives of nonprofit organizations, including community-based organizations, that work directly with and/or provide support to underserved communities and socially vulnerable populations. For more information on the engagement strategy see Volume III, Appendix B. Website Posting Clackamas County NHMP: Lake Oswego Addendum Page | 53 HMAC The Hazard Mitigation Advisory Committee (HMAC) members possessed familiarity with the community and how it is affected by natural hazard events. The HMAC guided the update process through several steps including goal confirmation and prioritization, action item review and development, and information sharing, to update the NHMP and to make the NHMP as comprehensive as possible. The steering committee met formally on the following date: Meeting #1: March 20 and May 30, 2023 During these meetings, the HMAC: • Reviewed the previous NHMP, and were provided updates on hazard mitigation planning, the NHMP update process, and project timeline. • Updated recent history of hazard events in the city. • Reviewed and confirmed the County NHMP’s mission and goals. • Reviewed and provided feedback on the draft risk assessment update including community vulnerabilities and hazard information. • Reviewed and updated their existing mitigation strategy (actions). • Reviewed and updated their implementation and maintenance program. • Discussed the NHMP public outreach strategy. Meeting #2: November 13, 2023 (via remote conference) During this meeting, the HMAC: • Confirmed and provided feedback on the final draft risk assessment update including community vulnerabilities and hazard information provided by DOGAMI (Risk Report). • Reviewed and confirmed the city’s capabilities assessment. • Reviewed, confirmed, and prioritized the city’s mitigation strategies. www.fema.gov June 11, 2024 Tootie Smith, County Commissioner - Chair Clackamas County 2051 Kaen Road, 4th Floor Oregon City, Oregon 97045 Reference: Adoption Required to Finish Clackamas County Multi-jurisdictional Hazard Mitigation Plan Process Dear Chair Smith: In accordance with applicable1 laws, regulations, and policy, the United States Department of Homeland Security’s Federal Emergency Management Agency (FEMA) Region 10 has determined the Clackamas County multi-jurisdictional hazard mitigation plan meets all applicable FEMA hazard mitigation planning requirements except its adoption by: Clackamas County City of Canby City of Estacada City of Gladstone City of Happy Valley City of Lake Oswego City of Oregon City City of Sandy City of West Linn City of Wilsonville Clackamas Fire District #1 Clackamas River Water City of Milwaukie City of Molalla Local governments, including special districts, with a plan status of “Approvable Pending Adoption” are not eligible for FEMA mitigation grant programs with a hazard mitigation plan requirement. The next step in the approval process is to formally adopt the hazard mitigation plan and send a resolution to the state for submission to FEMA. Sample adoption resolutions can be found in Appendix B of the Local Mitigation Planning Policy Guide. An approved hazard mitigation plan, including adoption by the local government, is one of the conditions for applying for and/or receiving FEMA mitigation grants from the following programs: Hazard Mitigation Grant Program (HMGP) Hazard Mitigation Grant Program Post-Fire (HMGP-PF) Building Resilient Infrastructure and Communities (BRIC) Flood Mitigation Assistance (FMA) High Hazard Potential Dams Grants Program (HHPD) 1 Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended; the National Flood Insurance Act of 1968, as amended; and National Dam Safety Program Act, as amended; 44 CFR Part 201, Mitigation Planning; and Local Mitigation Planning Policy Guide (FP-206-21-0002). ATTACHMENT 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Approval of City Council Meeting Minutes Meeting Date: July 16, 2024 Report Date: July 1, 2024 Staff Member: Kari Linder, City Recorder Department: City Manager’s Office Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded☐Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: 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)☒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 6.6 City Council Regular Meeting Minutes Page 1 of 15 May 7, 2024 CITY COUNCIL REGULAR MEETING MINUTES May 7, 2024 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 ATTACHMENT 1 City Council Regular Meeting Minutes Page 2 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 3 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 4 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 | 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 5 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 6 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 7 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 8 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 9 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, tak ing 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 10 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 11 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 12 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 13 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 14 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 15 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 1 of 11 May 21, 2024 CITY COUNCIL REGULAR MEETING MINUTES May 21, 2024 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 Holen, 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. ATTACHMENT 2 City Council Regular Meeting Minutes Page 2 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 3 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 4 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 5 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 6 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 7 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 8 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 9 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 10 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 11 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 | 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 1 of 10 June 4, 2024 CITY COUNCIL REGULAR MEETING MINUTES June 4, 2024 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 | 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. ATTACHMENT 3 City Council Regular Meeting Minutes Page 2 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 3 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 HelloLO 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 4 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 5 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 6 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 7 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 8 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 work ed 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 9 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 I-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 10 of 10 June 4, 2024 Respectfully submitted, _____________________________ Kari Linder, City Recorder Approved by the City Council on {insert approval date}. ____________________________ Joseph M. Buck, Mayor 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Ordinance 2946, Annexing property at 13699 Knaus Road (AN 24-0001) Meeting Date: July 16, 2024 Report Date: June 26, 2024 Staff Member: Paul Espe, Associate Planner Department: Planning and Building Services Action Required Advisory Board/Commission Recommendation ☐Motion ☐Approval ☒Public Hearing ☐Denial ☒Ordinance ☐None Forwarded☐Resolution ☒Not Applicable☐Information Only Comments: This annexation is being processed as a public hearing (not expedited decision) under Metro Code 3.09.050(A-D). ☐Council Direction☐Consent Agenda Staff Recommendation: Enact Ordinance 2946. Recommended Language for Motion: Move to enact Ordinance 2946. Project / Issue Relates To: Annexation of residential property to the city Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable EXECUTIVE SUMMARY/BACKGROUND The proposed annexation is owner-initiated and will result in the addition of approximately 0.54 acres of residential land to the City. This Council Report describes the reasons for the annexation and provides basic background information. The criteria for approving annexations and findings in support of this annexation are included in Attachment B of Exhibit A-1 (Ordinance 2946). 8.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Owner/Applicant: Langqun Shuiyuan LLC / Stephen Elliott, Green Gables Design and Restoration Location/Size: West side of Knaus Road, approximately 200 feet north of the intersection of Knaus Road and Cameo Court / 0.54 acres (23,522 square feet). Existing Land Use: Tax Lot 1100 contains a single-family dwelling that take s access from Knaus Road. Neighborhood: Forest Highlands Neighborhood Purpose of Annexation: Owner initiated annexation to allow the property to be under the City’s jurisdiction (similar to the property to the west under their ownership). Future development of the property is outside the issue of whether the proposed annexation meets the annexation criteria. DISCUSSION Plan and Zone Designation: The subject property is currently under Clackamas County’s jurisdiction and zoned Low-Density Residential R-20. It is designated R-15, Low Density Residential1 on the City of Lake Oswego Comprehensive Plan Map and will be zoned R-15 pursuant to LOC 50.01.004.5.a-c. 1 The actual density on the lot will be as permitted for residential uses on the lot (LOC 50.03.002.2), and dimensional standards (LOC 50.04.001). Vicinity Map Proposed Annexation Kn a u s R d Cameo Ct. Atwater Rd. Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Development Potential: The parcel is approximately 0.54 acres. Based on the size and shape of the parcel it can cannot be further divided. Statewide Goal 10 and Complete Neighborhoods and Housing Statewide Goal 10 Housing City Comprehensive Plan Complete Neighborhoods and Housing Chapter Statewide Planning Goal 10 (and the Complete Neighborhoods and Housing Goal in the City Comprehensive Plan) ensures the opportunity to provide adequate numbers of needed housing units, the efficient use of buildable land within urban growth boundaries, and to provide greater certainty in the development process so as to reduce housing costs. Staff has provided findings (Exhibit A-1, Attachment B) that the proposed annexation and designation of City R-15 zoning are consistent with the Comprehensive Plan, including the City’s Buildable Lands Analysis and Housing Needs Analysis, which anticipates the City eventually annexing all of the unincorporated lands within the USB and applying the appropriate zoning consistent with the Comprehensive Plan’s land use designations. The proposal has no effect on the City’s Buildable Lands Inventory or Housing Needs Analysis because the Buildable Lands Inventory (BLI) and Housing Needs Analysis (HNA) is based on the lands within the City’s Urban Service Boundary (USB), and the land is within the USB. The proposal is consistent with the Comprehensive Plan and therefore complies with Goal 10. See Attachment B for the complete findings under Goal 10. Sewer and Water Service: Sanitary sewer service is available from a City of Lake Oswego 8-inch collection line in Knaus Road. This line terminates approximately 450 feet to the southeast of the site in between 13744 and 13750 Knaus Road. Following the City Wastewater Master Plan, any future public sewer connection for this site would require the sewer to be extended up Knaus Road. Depending on the timing of other development in the vicinity of the site, the sewer line may be required to be extended to a terminus point near the northern boundary of this property. Since this property will be required to contribute its share of the cost of the sewer system in Knaus Road, connection to the public sewer would not be allowed to cross through 13501 Knaus Road within a private sanitary sewer easement, and would be required to connect to a public main located along the site’s street frontage of Knaus Road. If the property connects to city sewer, any existing septic tanks on the site shall be decommissioned (removal, or filling with sand or gravel). The parcel will be charged the applicable System Development Charge (SDC) for connection to the public sewer. All work would be done by private contractors. Water is available from a City 8-inch water main in Knaus Road that provides water service to this property. The existing home on the site is already connected to the public main. The nearest existing fire hydrant is located approximately 130 feet north of the site along the west side of Knaus Road. Page 4 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Surface Water Management: Once the property is annexed, the territory will be subject to the City’s stormwater management regulations. Any new development will be subject to these provisions, which ensure that any new development complies with the stormwater management requirements and does not overburden the City stormwater system. Service Districts: Upon annexation, the property will, by operation of ORS 222.520, be withdrawn from the Lake Grove Fire District #57 (per July 2003 urban service agreement; no bonded debt) and the Clackamas County Enhanced Sheriff’s Patrol District (no bonded debt) but will remain in the Lake Grove Park District (per July 2003 urban service agreement; no bonded debt), and the Library District of Clackamas County (per 2009 County IGA; no bonded debt). Transportation: Knaus Road is a two-lane neighborhood collector in a 50-foot right-of-way. It is under the jurisdiction of Lake Oswego. The nearest mass transit service is Tri-Met bus line 78, which operates between downtown Lake Oswego and the Tigard and Beaverton Transit Centers. Service can be accessed at the intersection of Goodall Road and Country Club Road. The draft findings provided in Attachment B of Exhibit A-1 conclude that the proposed annexation complies with all applicable State statutes and Metro code requirements. FISCAL IMPACT The estimated assessed value of the residential property is $394,585. The estimated tax revenue after the parcels are annexed is $1020. RECOMMENDATION Approve AN 24-0001 (Ordinance 2946). EXHIBITS A. Draft Ordinances AN 24-0001: A-1 Ordinance 2946 (Draft Annexation, 06/26/24) Attachment A: Map of Proposed Annexation, 04/29/24 Attachment B: Criteria, Findings, Conclusion and Effective Date, 06/26/24 B. Minutes None. C. Staff Reports None. D. Graphics/Plans None. E. Written Materials E-1 Housing Needs Analysis 2023 (Oregon Statewide Planning Goal 10; Comprehensive Plan excerpt, 09/21/23) (due to size, use link below to view this exhibit) Page 5 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY LINK TO PUBLIC RECORDS FOLDER FOR THIS CASE https://www.ci.oswego.or.us/WebLink/Browse.aspx?id=2740177&repo=CityOfLakeOswego Ordinance 2946, AN 24-0001 (21E04BD01100) PAGE 1 OF 3 ORDINANCE 2946 AN ORDINANCE ANNEXING TO THE CITY OF LAKE OSWEGO ONE PARCEL, CONSISTING OF 0.54 ACRES AT 13699 KNAUS ROAD; DECLARING CITY OF LAKE OSWEGO ZONING OF R-15, PURSUANT TO LOC 50.01.004.5(a-c); AND REMOVING THE TERRITORY FROM CERTAIN DISTRICTS (AN 24-0001). WHEREAS, annexation to the City of Lake Oswego of the territory shown in the map in Attachment “A” and described below, would constitute a contiguous boundary change under ORS 222.111, initiated by petition from the property owners as outlined in ORS 222.111(2); and, WHEREAS, the City has provided written notification of this annexation as required under ORS 222.120(3); and, WHEREAS, the City has received consent for the proposed annexation from all of the property owners and not less than 50 percent of the electors residing in the territory, as outlined in ORS 222.125; and, WHEREAS, the territory lies within the Lake Grove Fire District #57 district boundaries and the district has no bonded debt, and pursuant to the July 2003 urban service agreement between the City and the district, the City elects ORS 222.520(2)(b), and the territory shall be withdrawn from that district immediately upon approval of the annexation; and, WHEREAS, the territory lies within the Clackamas County Enhanced Sheriff’s Patrol District boundaries, which serves unincorporated property within Clackamas County, and the district has no bonded debt, the City elects ORS 222.520(2)(b), and the territory shall be withdrawn from the district upon approval of the annexation; and, WHEREAS, LOC 50.01.004.5 specifies that, where the Comprehensive Plan Map requires a specific Zoning Map designation to be placed on the territory annexed to the City, such a zoning designation shall automatically be imposed on the territory as of the effective date of the annexation; and, WHEREAS, this annexation is consistent with the Urbanization Chapter of the City of Lake Oswego’s acknowledged Comprehensive Plan, Oregon Revised Statutes 222.111(2), 222.120 and 222.125 for boundary changes, and Metro Code Sections 3.09.030 (A-C), 3.09.040(A)(1-4) and 3.09.050. ATTACHMENT A-1 Ordinance 2946, AN 24-0001 (21E04BD01100) PAGE 2 OF 3 Now, therefore, the City of Lake Oswego ordains as follows: Section 1. The real property described as follows is hereby annexed to the City of Lake Oswego: A tract of land located within the northwest quarter of Section 4, Township 2 South, Range 1 East of the Willamette Meridian, City of Lake Oswego, Clackamas County, Oregon, said tract being all that property conveyed to Langqun Shuiyuan, LLC, a Washington limited liability company, by Statutory Warranty Deed recorded October 20, 2023 in the Official Records of Clackamas County, as Recording No. 2023-037705; said tract of land more particularly described as follows: Beginning at an iron pipe on the westerly right of way line of Knaus Road (County Road No. 676), said iron pipe being at the southeast corner of a tract of land convey to C. Todd Jessell and Shirley A. Jessell by Warranty Deed recorded July 1, 1952 in the Official Records of Clackamas County, as Book 458, Page 297, said iron pipe bears West, 40.00 feet and North 0°00’30” West (northerly as per Recording No. 2023-037705, North 0°00’30” West as per Record of Survey No. PS3598, Clackamas County survey records), 208.90 feet from the center one-quarter corner of said Section 4; Thence North 0°00’30” West (northerly as per Recording No. 2023-037705, North 0°00’30” West as per said Book 458, Page 297) along said Knaus Road westerly right of way line, 208.60 feet to the northeast corner of said Jessell tract; Thence leaving said westerly right of way line, West along the northerly line of said Jessell tract, 112.26 feet to an iron pipe; Thence leaving the northerly line of said Jessell tract, South, 208.60 feet to the southerly line of said Jessell tract; Thence along said Jessell southerly line, East, 111.96 feet, more or less, to the point of beginning. The annexed territory is depicted on Attachment A. Section 2. The above Recitals are incorporated. Section 3. The annexed area lies within the following districts and shall be retained within these districts upon the effective date of annexation: Lake Grove Park District Section 4. The annexed area lies within the following districts and shall be withdrawn from these districts upon the effective date of annexation: Lake Grove Fire District #57 Clackamas County Enhanced Sheriff’s Patrol District Section 5. In accordance with LOC 50.01.004.5, the City zoning designation of R-15 shall be applied to the subject property on the effective date of annexation, as shown on Attachment A. Ordinance 2946, AN 24-0001 (21E04BD01100) PAGE 3 OF 3 Section 6. The City Council hereby adopts the findings of fact and conclusions set forth in Attachment B in support of this annexation ordinance. Section 7. Effective Dates: a. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C, this ordinance shall be effective on the 30th day after its enactment. b. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of either: 1. the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State. Provided, however, that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any city, district or other municipal corporation involved in the area to be annexed, the annexation shall become effective on the day after the election. Read by title only and enacted at the regular meeting of the City Council of the City of Lake Oswego held on the 16th day of July, 2024. AYES: NOES: ABSTAIN: EXCUSED: ________________________________ Joseph M. Buck, Mayor ________________________________ Dated ATTEST: ______________________________________ Kari Linder, City Recorder APPROVED AS TO FORM: ____________________________________ Ellen Osoinach, City Attorney 13455 14080 13 7 3 1 13 7 4 5 1 3 7 5 1 13 7 4 6 13 7 3 0 13 7 3 3 13 7 6 0 13 7 5 0 13 7 4 0 13 7 8 0 13 7 5 6 13795 13701 13781 13741 13699 13501 13611 13615 1358513595 13599 13 7 1 0 13 7 5 5 13680 13612 13520 13440 13360 13300 1340 15 8 0 156 0 15 5 0 14 1 4 14 4 0 13700 13 7 2 8 13 7 4 4 13311 13322 13348 16 1 1 16 3 3 16 2 2 16 4 4 14084 13 7 6 4 13 7 3 1 13 7 8 3 137 7 0 KN A U S KN A U S 1 3 7 7 7 1 3 7 6 5 13725 13707 (KNAUS) 13705 13337 Knaus Rd Kn a u s R d Le s l i e C t SW K n a u s R d Leslie Ln Cameo Ct Annexation to the City of Lake Oswego AN 24-0001/Ordinance 2946 ³ 4/29/2024 Lake Oswego City Limits Subject Property R-15 R-10 R-10 R-15 Attachment A Tax Lot IDs:21E04BD01100 City of Lake Oswego: COMPREHENSIVE PLAN = R-15, Residential Low Density ZONING = R-15, Residential Low Density Clackamas County: ZONING = R-20, Urban Low Density Residential 0 100 200 300 40050 Feet Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 1 OF 10 ATTACHMENT B Criteria, Findings, Conclusion, and Effective Date APPLICABLE CRITERIA: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2) Authority and Procedure for Annexation; Specifying Tax Rate in Annexed Territory. 2. ORS 222.120 Procedure for Annexation Without Election; Hearing; Ordinance Subject to Referendum. 3. ORS 222.125 - Annexation by Consent of All Owners of Land and Majority of Electors; Proclamation of Annexation. B. Metro Code. 1. 3.09.030 (A-C) Notice Requirements 2. 3.09.040(A)(1-4) Requirements for Petitions. 3. 3.09.050 Hearing and Decision Requirements for Decisions Other Than Expedited Decisions C. Comprehensive Plan - Urbanization Chapter 1. Policy A-3: “The Urban Services Boundary (as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services.” 2. Policy C-3: “Ensure that annexation of new territory or expansion of Lake Oswego’s Urban Services Boundary does not detract from the City’s ability to provide services to existing City residents.” 3. Policy C-4: “Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve the subject property or will be made available in a timely manner by the City or a developer, commensurate with the scale of the proposed development.” 4. Policy D-3: “Enter into and maintain an Urban Growth Management Agreement with Clackamas County for lands within the Urban Services Boundary to … “g. Promote orderly annexation of territory.” D. Comprehensive Plan – Complete Neighborhoods and Housing (Statewide Goal 10) Policy B-1: “Provide and maintain zoning and development regulations that allow the opportunity to develop an adequate supply and variety of housing types, and that accommodate the needs of existing and future Lake Oswego residents.” E. OAR 660-008-0010 - Allocation of Buildable Land FINDINGS: A. Oregon Revised Statutes (ORS), Boundary Changes; Mergers and Consolidations. 1. ORS 222.111(2) Authority and Procedure for Annexation Specifying Tax Rate in annexed territory. ORS 222.111(2) provides that a proposal for annexation of territory to a City may be initiated by the legislative body of the City, on its own motion, or by a petition to the legislative body of the City by owners of real property in the territory to be annexed. The owner of this property has petitioned the City for this annexation. The proposed annexation complies with this statute. 2. ORS 222.120 Procedure for Annexation Without Election; Hearing; Ordinance Subject to Referendum. ORS 222.120 states that an election need not be held on the question of annexation to the electors of the city for their approval or rejection if the legislative body provides for a duly noticed public hearing before the legislative body at which time the electors of the city may appear and be heard on the question of annexation. Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 2 OF 10 The City has provided written notification of this annexation by publishing a notice once each week for two consecutive weeks prior to the day of the hearing in a newspaper of general circulation in the city and posted the notice of public hearing in four public places as required under ORS 222.120(3). The notice was published in the Lake Oswego Review and was posted at City Hall, the Adult Community Center, and the City Library. A notice was also posted on the site on June 26, 2024. The notice contained information about the affected territory, time and place of the public hearing and the means by which any person can obtain a copy of the written report. The annexation notification and review procedures comply with this statute. 3. ORS 222.125 - Annexation by Consent of All Owners of Land and Majority of Electors; Proclamation of Annexation. ORS 222.125 states that an election need not be held on the question of annexation within the area proposed to be annexed if all of the owners of land in the territory and not less than 50 percent of the electors, if any, residing in the territory consent in writing to the annexation. The property owner, who is the sole and only elector, consented to the annexation. The proposed annexation complies with this statute. B. Metro Code 1 3.09.030 – Notice Requirements A. The notice requirements apply to all boundary change decisions by a reviewing entity except expedited decisions made pursuant to MC 3.09.045. These requirements apply in addition to, and do not supersede applicable requirements of ORS Chapters 197, 198, 221 and 222 and any city or county charter provision on boundary changes. B. Within 45 days after a reviewing entity determines that a petition is complete, the entity shall set a time for deliberations on a boundary change. The reviewing entity shall give notice of its proposed deliberations by mailing notice to all necessary parties 1, by weatherproof posting of notice in the general vicinity of the affected territory and by publishing notice in a newspaper of general circulation in the affected territory. Notice shall be mailed and posted at least 20 days prior to the date of deliberations. Notice shall be published as required by state law. C. The notice requirements in Subsection B shall: 1. Describe the affected territory in a manner that allows certainty; 2. State the date, time and place where the reviewing entity will consider the boundary change; and 3. State the means by which any person may obtain a copy of the reviewing entity’s report on the proposal The City has provided written notification of this annexation to necessary parties (mailed notice), to the general vicinity (posting of the notice of annexation on this property on June 26, 2024), and by publishing notice in the Lake Oswego Review, a newspaper of general circulation in the City. All notices were given at least 20 days prior to the date of the public hearing for annexation as required under MC 30.09.030(B). The notices contained information about the affected territory, time and place of the public hearing and the means by which any person can obtain a copy of the written report. The annexation notification and review procedures comply with the Metro code requirements. 1 “Necessary party” means “county; city; district whose jurisdictional boundary or adopted urban service area includes any part of the affected territory or who provides any urban service to any portion of the affected territory; Metro; or any other unit of local government." Metro Code 3.09.020(J). Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 3 OF 10 2. 3.09.040 - Requirements for Petitions. (A) A petition for a boundary change must contain the following information: 1. The jurisdiction of the reviewing entity to act on the petition; 2. A map and a legal description of the affected territory in the form prescribed by the reviewing entity; 3. For minor boundary changes, the names and mailing addresses of all persons owning property and all electors within the affected territory as shown in the records of the tax assessor and county clerk; and, 4. For boundary changes under ORS 198.855 (3), 198.857, 222.125 or 222.170, statements of consent to the annexation signed by the requisite number of owners or electors. The above information was submitted as required by Metro Code. The property owner has signed the application and petition. The property is occupied by a single-family dwelling, which is now vacant. A map and legal description in the form required by the City have been included in the application materials and are on file. The property owner has consented to the annexation on the annexation petition, meeting the consent requirements of ORS 222.125. The annexation petition complies with the Metro code requirements. 3. 3.09.050(B, D) Hearing and Decision Requirements for Decisions Other Than Expedited Decisions 3.09.045(D, E) Expedited Decisions (criteria incorporated for non-expedited decisions by MC 3.09.050(D)) B. Not later than 15 days prior to the date set for a hearing a report shall be available to the public that addresses the criteria identified in subsection (D) and includes the following information: 1. The extent to which urban services are available to serve the affected territory, including any extra territorial extensions of service; 2. Whether the proposed boundary change will result in the withdrawal of the affected territory from the legal boundary of any necessary party; and 3. The proposed effective date of the boundary change. These findings meet subsection B. 3.09.045 Expedited Decision D. To approve a boundary change through an expedited process, the city shall: 1. Find that the change is consistent with expressly applicable provisions in: a. Any applicable urban service agreement adopted pursuant to ORS 195.065 The City has entered into ORS 195.065 agreements with: 1) Lake Grove Park District (Lake Oswego School District) and 2) Lake Grove Fire District. Lake Grove Park District (Lake Oswego School District): The City and the Lake Oswego School District entered into an ORS 195.065 urban service agreement for park services in July, 2003. The School District operates the Lake Grove Swim Park located at 3800 Lakeview Boulevard. The agreement states that the annexation of property by the City within the Lake Grove Park District (which funds the swim park) shall not cause the withdrawal of the property from the district. Lake Grove Fire District: The City and District entered into an ORS 195.065 urban service agreement for fire protection in July, 2003. The agreement states that upon annexation of property within the district by the City, the annexed property shall be withdrawn from the District and the City shall provide fire protection services. This property is within the boundaries of the Lake Grove Fire District #57 and the annexation will withdraw this property from that District. The proposed annexation is consistent with these agreements. Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 4 OF 10 b. Any applicable annexation plan adopted pursuant to ORS 195.205. There are no applicable annexation plans adopted pursuant to ORS 195.205 relating to the affected territory. c. Any applicable cooperative planning agreement adopted pursuant to ORS 195.020(2) between the affected entity and a necessary party. There are no ORS 195.020(2) cooperative agreements (which relate to special districts) between the city and a necessary party. d. Any applicable public facility plan adopted pursuant to a statewide planning goal on public facilities and services. Consistent with Statewide Planning Goal 11 (Public Facilities) and the Community Health and Public Safety Chapter of the Comprehensive Plan, the City maintains a Public Facilities Plan (PFP). The PFP consists of master plans for streets, sanitary sewer, water, and stormwater facilities, which provide the basis for long-range planning for both the incorporated and unincorporated lands within Lake Oswego’s Urban Services Boundary. The PFP is comprised of the Lake Oswego Transportation System Plan, Wastewater Master Plan, Water System Master Plan, and Clean Streams (Stormwater) Plan, pursuant to Statewide Planning Goals 11 (Public Facilities) and 12 (Transportation). Wastewater Master Plan: Sanitary sewer service is available from a City of Lake Oswego 8-inch collection line in Knaus Road. This line terminates approximately 450 feet to the southeast of the site in between 13744 and 13750 Knaus Road. Following the City Wastewater Master Plan, any future public sewer connection for this site would require the sewer to be extended up Knaus Road. Depending on the timing of other development in the vicinity of the site, the sewer line may be required to be extended to a terminus point near the northern boundary of this property. Since this property will be required to contribute its share of the cost of the sewer system in Knaus Road, connection to the public sewer would not be allowed to cross through 13501 Knaus Road within a private sanitary sewer easement, and would be required to connect to a public main located along the site’s street frontage of Knaus Road. If the property connects to city sewer, any existing septic tanks on the site shall be decommissioned (removal, or filling with sand or gravel). The parcel will be charged the applicable System Development Charge (SDC) for connection to the public sewer. All work would be done by private contractors. The sanitary sewer service that would potentially serve this property could be provided in a manner that is consistent with the Wastewater Master Plan. Water System Master Plan: Water is available from a City 8-inch water main in Knaus Road that provides water service to this property. The existing home on the site is already connected to the public main. The nearest existing fire hydrant is located approximately 130 feet north of the site along the west side of Knaus Road. Water is provided to this site in a manner that is consistent with the City Water System Master Plan. Clean Streams (Stormwater) Plan: There are no public stormwater systems in the vicinity of this property. After annexation, on-site surface water management requirements will fall under various provisions of the Lake Oswego Code. For example, stormwater runoff from new and/or replaced impervious surface areas shall be managed in accordance with the City’s Stormwater Management Code (LOC 38.25), consistent with the Clean Streams (Stormwater) Plan. Transportation (Statewide Planning Goal 12): Knaus Road is a two-lane neighborhood collector in a 50-foot right-of-way. It is under the jurisdiction of the City of Lake Oswego. Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 5 OF 10 The City’s Transportation System Plan implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. e. Any applicable comprehensive plan policies Comprehensive Plan Map: This property is currently designated R-20, Low Density Residential on Clackamas County’s Comprehensive Plan and Zoning Maps. It is designated low Density Residential 2, R-15 on the City’s Comprehensive Plan Map. As required by LOC 50.01.005.5, upon annexation, a City zoning designation of R-15 will be automatically applied to this property. The City and County have coordinated their comprehensive plans within the Dual Interest Area outlined in the City/County Urban Growth Management Agreement (dated February 4, 1992 and updated November 18, 1997), hence the City/County designations have been determined to be compatible. The proposed zoning designation of R-15 is consistent with the Urban Growth Management Agreement between the County and the City. Comprehensive Plan Policies - Urbanization: The Lake Oswego Comprehensive Plan contains the following relevant language in the Urbanization chapter: Policy A-3: “The Urban Services Boundary (as depicted on the Comprehensive Plan Map) is the area within which the City shall be the eventual provider of the full range of urban services.” This property is within the City’s Urban Services Boundary. Therefore, the proposed annexation and the withdrawal of this property from the identified districts is consistent with this policy. Policy C-3: “Ensure that annexation of new territory or expansion of Lake Oswego’s Urban Services Boundary does not detract from the City’s ability to provide services to existing City residents.” The approval of this annexation will result in the addition of 0.54 acres to be served by the City. As stated in Section 2(b)(1), the addition of this territory will not detract from the City’s ability to provide police and fire protection to existing City residents. As outlined elsewhere in these findings and the incorporated materials, annexation of this property will not affect the City’s ability to provide parks and recreation services, sewer or water services. Policy C-4: “Prior to the annexation of non-island properties, ensure urban services are available and adequate to serve this property or will be made available in a timely manner by the City or a developer, commensurate with the scale of the proposed development.” Availability of urban services serving this property is discussed below: Water: Water is available to serve the subject area, as detailed in subsection D.1.d. Sewer: Sanitary sewer service is available to serve the subject area, as detailed in subsection D.1.d. Stormwater: As detailed in subsection D.1.d, future development will be required to comply with the City standards for stormwater management. Fire Protection: Lake Grove Fire District #57 provides fire protection services to this property by agreement with the City of Lake Oswego. Upon annexation, this property will be withdrawn from this fire district per a July 2003 urban service agreement and will be served directly by the City. The Main Fire Station on 300 B Avenue, located southeast of the site, would be able to respond to emergencies under the eight-minute goal established in the Comprehensive Plan. 2 The actual density on the lot will be as permitted for residential uses on the lot (LOC 50.03.002.2), and dimensional standards (LOC 50.04.001). Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 6 OF 10 Police: Upon annexation, this property will be withdrawn from the Clackamas County Enhanced Sheriff’s Patrol District (the District serves unincorporated areas) and served by the City of Lake Oswego. The Lake Oswego Police Department reviewed the proposal and indicated that it does not have any concerns with serving this property upon annexation. Parks and Open Space: The City has 629 acres of park and open space lands, or 14.6 acres per 1,000 population. The parks nearest to this property are Tryon Creek State Natural Park, Woodmont Park, Springbrook Park and Iron Mountain Park. The City’s park system will not be overburdened by any additional population annexed to the City with this application. Lake Grove Park District: The Lake Grove Swim Park, managed by the Lake Oswego School District, and funded by the Lake Grove Park District, is located at 3800 Lakeview Boulevard. The swim park is approximately 1.3 acres in size with restroom, play and swim facilities. Per the City’s IGA with the District, this property will remain within the Lake Grove Park District following annexation. Transportation - Streets and Mass Transit: Transportation infrastructure and transit service is available to serve the subject area, as detailed in subsection D.1.d, above. Other Urban Services: LOC 50.06.008.1, and .3 requires that all development requiring connection to utilities or increasing residential density be provided with the following utility services: sanitary sewer, water, sidewalks, pedestrian and bicycle paths, traffic control signs and devices, street lights, streets, and TV cable. These utilities are now in place or can be put in place to serve this property. In the event that future development occurs, an applicant for development is obligated to construct all necessary public facilities to serve their development. Policy D-3 “D-3. Enter into and maintain an Urban Growth Management Agreement with Clackamas County for lands within the Urban Services Boundary to Promote orderly annexation of territory; Urban Growth Management Agreement The Lake Oswego Comprehensive Plan, Urbanization Chapter, Policy D-3, calls for entering into and maintaining an Urban Growth Management Agreement (UGMA) with Clackamas County for lands within the Urban Services Boundary. Similarly, General Urbanization Policy 4.A.4 of the Clackamas County Comprehensive Plan calls for the establishment of Urban Growth Management Areas and Urban Growth Management Agreements to clarify planning responsibilities between the County and cities for areas of mutual interest. Policy 4.A.5 directs the County to establish agreements with cities and service districts to clarify service and infrastructure responsibilities for areas of mutual interest. In furtherance of these policies, the City and County have entered into an Urban Growth Management Agreement that stipulates a mutual interest in coordinated land use planning, compatible comprehensive plans and provision of urban services and facilities. This agreement ensures coordination and consistency between the City and County comprehensive plans and outlines responsibilities in providing services and managing growth within the Dual Interest Area. Subsections 6 and 7, provided below, are applicable to annexations. “6C. City and County Notice and Coordination: The City shall provide notification to the County, and an opportunity to participate, review and comment, at least 35 days prior to the first public hearing on all proposed public facilities plans, legislative changes to the City Comprehensive Plan, or quasi-judicial land use actions adjacent to, or in close proximity to unincorporated areas. The City shall provide notice to the County of private or City initiated annexation requests within five days of the filing of an application with the Portland Metropolitan Boundary Commission.” Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 7 OF 10 The Urban Growth Management Agreement specifies that the City notify the County of an annexation request within five days of when it is submitted to the Boundary Commission. There is no longer a Boundary Commission for the Portland Metropolitan area. Staff relies on the notice requirements of Metro Code 3.09.030(B), which requires mailing notice to all necessary parties, posting of a weatherproof notice in the general vicinity of the affected territory and by publishing notice in a newspaper of general circulation in the affected territory. Notice shall be mailed and posted at least 20 days prior to the date of deliberations. The notice required by MC 3.09.030 shall follow the requirements under MC 3.09.030(C), where the notice shall describe the affected territory in a manner that allows certainty, state the date, time and place where the reviewing entity will consider the boundary change; and, state the means by which any person may obtain a copy of the reviewing entity’s report on the proposal. Clackamas County is a “necessary” party under the Metro Code definition and was notified on June 26, 2024, 20 days before the public hearing. “7. City Annexations A. The City may undertake annexations in the manner provided for by law within the Dual Interest Area. The City annexation proposals shall include adjacent road right- of-way to property proposed for annexation. The County shall not oppose such annexations. B. Upon annexation, the City shall assume jurisdiction of the County roads and local access roads pursuant to a separate road transfer agreement between the City and county.” The City is undertaking this annexation in the manner provided for in the applicable provisions of State Law and Metro Code for the territories that lie within the Dual Interest Area. This annexation is consistent with the City and County comprehensive plans, which have been coordinated in the Dual Interest Area within the regional Urban Growth Boundary (UGB). Knaus Road is a two-lane neighborhood collector in a 50-foot right-of-way. It is under the jurisdiction of Lake Oswego. The nearest mass transit service is Tri-Met bus line 78, which operates between downtown Lake Oswego and the Tigard and Beaverton Transit Centers. Service can be accessed at the intersection of Knaus and Country Club Roads. Comprehensive Plan Policies - Complete Neighborhoods and Housing (Statewide Goal 10) City Comprehensive Plan Complete Neighborhoods and Housing Chapter The Complete Neighborhoods and Housing Chapter of the City’s Comprehensive Plan implements Statewide Housing Goal 10 and the Portland Metropolitan Housing Rule (OAR 660-007-0000 et seq.), which requires that the City plan for a supply of residentially zoned land with an average allowed density of 10 dwelling units per net acre, and the opportunity to develop a mix of housing types consisting of not less than 50% attached and multifamily dwellings. Compliance with the State rules ensures the opportunity to provide adequate numbers of needed housing units and the efficient use of buildable land within urban growth boundaries, while promoting certainty in the development process to help reduce housing costs. The following Oregon Administrative Rule (OAR) provides standards for compliance with Goal 10 “Housing” pursuant to ORS 197.296 (Buildable Lands) and ORS 197.303 through 197.307 (Needed Housing): Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 8 OF 10 OAR 660-008-0010 Allocation of Buildable Land The mix and density of needed housing is determined in the housing needs projection. Sufficient buildable land shall be designated on the comprehensive plan map to satisfy housing needs by type and density range as determined in the housing needs projection. The local buildable lands inventory must document the amount of buildable land in each residential plan designation. The Lake Oswego Comprehensive Plan, Complete Neighborhoods and Housing Chapter, adopted pursuant to Goal 10 and the Metropolitan Housing Rule is designed to meet Lake Oswego’s housing needs for not less than a twenty-year planning period. The Comprehensive Plan Map designates residential land use designations within the City limits and within Lake Oswego’s Urban Services Boundary (USB) through the year 2035. The Comprehensive Plan Map’s residential land use designations were adopted consistent with the City’s Housing Needs Analysis 20 Year Housing Need 2023-2043 (HNA 9/21/23), also incorporated herein by reference, and the City of Lake Oswego- Clackamas County Urban Growth Management Agreement (UGMA), which specifies future zoning of lands within the USB upon annexation to Lake Oswego. The UGMA anticipates the City eventually annexing all of the unincorporated lands that exist within the USB, and application of City zoning to those lands consistent with the Comprehensive Plan; hence, the HNA is for both the incorporated area of Lake Oswego (City) and unincorporated areas within Lake Oswego’s Urban Services Boundary (USB). The Comprehensive Plan Map’s residential land use designations are based on the HNA. These designations match the corresponding Zoning Map designations such that there is only one zone for each Plan designation, and therefore only one zone that is applied to each lot upon annexation, consistent with the HNA and in compliance with Goal 10 and the Metropolitan Housing Rule. In the case of the subject application, the applicable Plan Map designation and corresponding Zone Map designation is R-15. The City Comprehensive plan and corresponding Zone Map designation of R-15 provide a greater amount of housing density than the Clackamas County zoning designation of R-20. If this property was to be redeveloped, the zoning would allow additional primary dwelling units and accessory dwelling units (ORS 197.312) (LOC Table 50.03.002-1 Residential Districts Use Table). The proposed annexation and designation of City zoning is consistent with the Comprehensive Plan and Map, and the City’s Buildable Lands Inventory, and does not change the City’s housing needs from those identified by the HNA; therefore, the annexation and zone change comply with Goal 10 and its implementing administrative rules. In this case, the zoning district would provide the opportunity for needed housing identified in the Housing Needs Analysis. The City uses the following approach for findings supporting two types of annexation zone changes: • Option 1 is for annexation-related non-discretionary comprehensive plan and zoning map amendments. • Option 2 is for annexation-related discretionary comprehensive plan and zoning map amendments. “Non-discretionary” amendments are zoning map amendments applied to an annexed property (or properties) where the applicable zoning designation is prescribed by the city’s comprehensive plan and a zoning conversion table in the city-county urban growth management agreement (UGMA). “Discretionary” amendments are where more than one zoning designation is applicable, as prescribed by the city’s comprehensive plan and the city-county UGMA, and the City Council has discretion in applying zoning. The proposed rezoning in AN 24-0001 is non-discretionary because the zoning is prescribed by the City of Lake Oswego Comprehensive Plan and the zoning conversion table in the City of Lake Oswego-Clackamas County UGMA. Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 9 OF 10 The City’s R-15 zone is proposed to be applied consistent with (matching) the R-15 land use designation in the City’s Goal 10/Metro Housing Rule-compliant comprehensive plan. The City Council does not have discretion to apply a different zone to the subject property unless it is amending the Comprehensive Plan to change the land use designation; therefore, the City does not evaluate proposed zones against its Housing Needs Analysis (HNA). The City simply applies the zoning that is prescribed by the Comprehensive Plan, consistent with the HNA and the Complete Neighborhoods and Housing (Goal 10) chapter of the Plan. In doing so, the City relies on LOC 50.01.004.5.a, which states that the Lake Oswego Comprehensive Plan Map provides for the future City zoning of all property within the City’s Urban Service Boundary. In cases where the Comprehensive Plan Map requires a specific zoning map designation, this designation is automatically imposed on territory when the property is annexed to the City. In conclusion, the proposed R-15 zoning is consistent with the Comprehensive Plan and City-County UGMA for the subject property, and the City Council does not have other zoning options from which to choose in approving AN 24-0001. f. Any applicable concept plan There are no applicable concept plans in this area. 2. Consider whether the boundary change would a. Promote the timely orderly and economic provision of public facilities and services b. Affect the quality and quantity of urban services c. Eliminate or avoid unnecessary duplication of facilities or services The proximity of this property to existing City services will allow this annexation to promote the timely, orderly and economical extension of public facilities and services. This property can readily be served with urban services and facilities. If and when additional development occurs in the area, provision of public facilities and services will occur consistent with the City’s adopted public facility master plans, ensuring that it does not adversely affect the quality or quantity of urban services and avoiding unnecessary duplication of facilities or services. Therefore, this boundary change is consistent with criteria 2.a through 2.c. E. A city may not annex territory that lies outside the UGB except it may annex a lot or parcel that lies partially within and partially outside the UGB. The property to be annexed is located entirely within the Metro Urban Growth Boundary (UGB). F. Comprehensive Plan - Urbanization Chapter See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), “Comprehensive Plan Policies – Urbanization.” G. Comprehensive Plan – Complete Neighborhoods and Housing (Statewide Goal 10) See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), “Comprehensive Plan Policies – Complete Neighborhoods and Housing (Statewide Goal 10).” H. OAR 660-008-0010 - Allocation of Buildable Land See discussion, above, under Section B.3, regarding Metro Code 3.09.045.D(1)(e), “Comprehensive Plan Policies – Complete Neighborhoods and Housing (Statewide Goal 10).” Ordinance 2946 (AN 24-0001) ATTACHMENT B/PAGE 10 OF 10 CONCLUSION: Based on the criteria and findings set forth above, the City Council concludes that AN 24-0001 can be made to comply with all applicable criteria and the annexation should be approved. EFFECTIVE DATE: A. Effective Date of Annexation Ordinance. Pursuant to Lake Oswego City Charter, Section 35.C., the ordinance shall be effective on the 30th day after its enactment. B. Effective Date of Annexation. Following the filing of the annexation records with the Secretary of State as required by ORS 222.177, this annexation shall be effective upon the later of: 1. the 30th day following the date of adoption of this ordinance; or 2. the date of filing of the annexation records with the Secretary of State; provided however that pursuant to ORS 222.040(2), if the effective date of the annexation as established above is a date that is within 90 days of a biennial primary or general election or after the deadline for filing notice of election before any other election held by any City, district or other municipal corporation involved in the area to be annexed, the annexation shall become effective on the day after the election. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Housing Production Strategy (PP 22-0005) Meeting Date: July 16, 2024 Report Date: July 2, 2024 Staff Member: Erik Olson, Long Range Planning Manager Department: Community Development Action Required Advisory Board/Commission Recommendation ☐Motion ☐Planning Commission Recommends Approval ☐Public Hearing ☐Denial ☐Ordinance ☐None Forwarded☐Resolution ☒Not Applicable☐Information Only Comments: The Council recently provided direction regarding which strategies to include in the draft Housing Production Strategy (HPS) at a joint study session with the Planning Commission on April 2, 2024. ☒Council Direction☐Consent Agenda Staff Recommendation: Include the Multiple Unit Property Tax Exemption (MUPTE) and Homebuyer Opportunity Limited Tax Exemption (HOLTE) strategies in the City’s Housing Production Strategy (HPS) Report. Recommended Language for Motion: N/A Project / Issue Relates To: Council Initiative to “Continue work on key housing initiatives, including the housing production strategy…” Issue before Council (Highlight Policy Question): Developing a Housing Production Strategy to meet the requirements of ORS 197A.100 [House Bill 2003 (2019)] ☒Council Goals/Priorities Continue work on the housing production strategy ☒Comprehensive Plan ☐Not Applicable ISSUE BEFORE COUNCIL Staff is seeking further direction regarding whether to include the Multiple Unit Property Tax Exemption (MUPTE) and Homebuyer Opportunity Limited Tax Exemption (HOLTE) strategies in the City’s Housing Production Strategy (HPS) to meet the requirements of ORS 197A.100. 9.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY EXECUTIVE SUMMARY The City is required by ORS 197A.100 1 to adopt an HPS that documents the specific tools, actions, and policies that the City plans to take to address the housing needs identified in the 2023 Housing Needs Analysis (HNA) by December 31, 2024. Staff has developed a Draft HPS document based on input from the Council, Planning Commission, HPS Task Force, and members of the general public (Attachment 1). The Council will conduct a study session on July 16 to provide direction regarding whether to include the MUPTE and HOLTE strategies in the draft of the HPS that will go to public hearing. This will be the last opportunity for the Council to provide feedback on the Draft HPS document prior to the public hearing tentatively scheduled for October 15. BACKGROUND The Council adopted the 2023 HNA on October 17, 2023. The Council must now develop an HPS to identify a set of actions that the City will take to facilitate housing development that will best meet the needs of the community. Per ORS 197A.100, an HPS must document the specific tools, actions, and policies (collectively “strategies”) that the City plans to take to address the housing needs identified in the HNA. The HPS includes the City's timeline for adopting and implementing each strategy. DISCUSSION Public Engagement Update Public engagement and outreach to identify an initial set of strategies for inclusion in the City’s HPS began in October 2023 and is still actively ongoing. So far, this has included presentations at the Diversity, Equity and Inclusion Advisory Board, the 50+ Advisory Board, the Chamber of Commerce Government Affairs Committee, the November 2023 Mayor’s Roundtable event, and the Fall 2023 Kruse Way Economic Forum, as well as one Council meeting, one joint meeting with both the Planning Commission and Council, four Planning Commission meetings, and five meetings of the HPS Task Force. An HPS Community Forum event was held on Thursday, March 14, and the City hosted an Online Survey that was made available to the public between March 13 and March 31, 2024. Both the Community Forum and Online Survey included information on the recommended strategies and opportunities for public input. See the Public Engagement Summary (Appendix B to Attachment 1) for a summary of the results of these engagement activities. The Council and the Planning Commission held a joint study session on April 2 to provide further direction to staff regarding which strategies to include in the Draft HPS. The meeting included separate straw polls for the Council and the Planning Commission to determine 1 Cited ORS Ch. 197A statutes in this report available at https://www.oregonlegislature.gov/bills_laws/ors/ors197A.html (Note: former ORS Ch. 197 sections renumbered in 2023) Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY whether each body recommended moving forward with the various strategies included in the Initial Strategy Recommendations Memo (Attachment 3). Both the Commission and Council recommended including all of the Recommended Strategies in the Draft HPS. Regarding the Strategies Needing Further Discussion, though the Planning Commission additionally recommended including the Multiple Unit Property Tax Exemption (MUPTE) in the Draft HPS, the Council ultimately did not recommend including this strategy. Other strategies discussed at the meeting were not recommended for inclusion in the Draft HPS. See the Public Engagement Summary (Appendix B to Attachment 1) for more detailed straw poll results from the meeting. Most recently, the HPS Task Force conducted its eighth and final meeting on June 21 and the Planning Commission held a work session on June 24 to review and provide input on the draft HPS prior to the document being finalized for the public hearing. Both the HPS Task Force and Planning Commission continued to recommended including the MUPTE strategy in the HPS. Additionally, in light of a recent request from Habitat for Humanity (Attachment 2), both bodies further recommended that the HPS include the Homebuyer Opportunity Limited Tax Exemption (HOLTE) strategy. For more, see the Homebuyer Limited Opportunity Tax Exemption (HOLTE) section, below. Draft Housing Production Strategy City staff and the consultant team have produced a Draft HPS document that outlines a range of strategies the City plans to implement to address housing needs within the community (Attachment 1). The Draft HPS includes information about the City’s critical housing needs and summarizes public engagement activities that informed and shaped the housing strategies recommended for implementation. Additionally, the HPS summarizes how the strategies will help achieve fair and equitable housing outcomes for the Lake Oswego community – especially for low-income households, communities of color, people with disabilities, and other state and federal protected classes. The HPS also describes how the City of Lake Oswego will monitor the implementation and progress of the strategies recommended in the HPS. Strategies were categorized using Near Term (1-3 years), Medium Term (within 3-5 years), and Longer Term (>5 years) implementation time frames. Table 1, below, shows each recommended strategy with the associated time frames, relative cost, and level of effort: (Continued on next page) Page 4 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Table 1: Summary of Strategies and Implementation Implementation Time Frame Strategy Begin Complete Cost Effort Overall Housing Production and Supply 1. Code audit and amendments Near Term Medium Term $$$$ ● ● ● 2. Remove or reduce minimum parking requirements Near Term Near Term $$$$ ● ○ ○ 3. Rezone land Medium Term Longer Term $$$$ ● ● ● Increased Housing Choices 4. Evaluate accessible design incentives or mandates Medium Term Medium Term $$$$ ● ● ○ 5. Evaluate Multiple Unit Property Tax Exemption Medium Term Medium Term $$$$ ● ● ○ 6. Pre-approved plan sets for ADUs Medium Term Medium Term $$$$ ● ● ● 7. Modify System Development Charge fee schedule Longer Term Longer Term $$$$ ● ● ● Affordable Housing for Lower-Income Households 8. Nonprofit Low-Income Housing Exemption Already Complete $$$$ ● ○ ○ 9. Low-Income Rental Housing Tax Exemption Near Term Near Term $$$$ ● ● ○ 10. Public-private partnerships for affordable housing Near Term Ongoing $$$$ ● ● ● 11. Use Tax Increment Financing to support affordable housing development Near Term Longer Term $$$$ ● ● ● 12. Affordable housing preservation inventory Medium Term Medium Term $$$$ ● ● ○ Other 13. Fair Housing policy and education Near Term Medium Term $$$$ ● ● ○ Page 5 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Table 2, below, outlines a proposed general implementation timeline for each strategy: Table 2: Implementation Timeline 2024 2025 2026 2027 2028 2029 2030 1. Code audit and amendments 2. Remove or reduce min. Parking requirements 3. Rezone land 4. Evaluate accessible design incentives or mandates 5. Evaluate Multiple Unit Property Tax Exemption 6. Pre-approved plan sets for ADUs 7. Modify SDC fee schedule 8. Nonprofit Low-Income Housing Exemption 9. Low-Income Rental Housing Tax Exemption 10. Public-private partnerships for affordable housing 11. Use TIF to support affordable housing 12. Affordable housing preservation inventory 13. Fair Housing policy and education All but one of the strategies included in the Draft HPS were supported by the Council, HPS Task Force, and Planning Commission. Proposed strategy # 5 – Evaluate Multiple Unit Property Tax Exemption (MUPTE) – was supported by the Planning Commission and HPS Task Force, but not City Council (by a vote of 3:4). Though the Council was somewhat split on the issue, a modified version of the MUPTE strategy was included in the Draft HPS based on it receiving support from the HPS Task Force, Planning Commission, and members of the general public. The Draft HPS includes the following description of the MUPTE strategy (Attachment 1, p. 19- 20): Page 6 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY This tax exemption can be used to encourage multi-family or middle housing with particular features or at particular price points by offering qualifying developments a partial property tax exemption for 10 years (or longer, for housing subject to affordability agreements). It can be offered to new development or existing housing that is converted to meet the eligibility criteria… MUPTE is a flexible tax abatement that can be used in various ways to encourage needed housing. The City has broad discretion as to how to structure the program. Eligibility criteria could include requirements for affordability, accessibility/universal design, unit size, or other desirable features… The City must designate specific areas where the MUPTE applies, unless including affordability as a criterion, in which case the whole city could be eligible. City staff and the consultant team recommended including a strategy in the HPS to “evaluate” the MUPTE program, with additional criteria that would make it available to housing with either accessible design (see the Evaluate Accessible Design Incentives or Mandates strategy) or moderate-income units affordable at 80-120% of Area Median Income (AMI). More specifically, the recommendation is to further evaluate, “the various options for structuring the MUPTE program to determine whether—and how—it should be implemented” (Attachment 1, p. 21). This process would involve consultation with developers and housing providers to determine their level of interest, outreach to local taxing districts, and additional conversations to determine the desired eligibility criteria (i.e. levels of affordability and accessibility). Homebuyer Opportunity Limited Tax Exemption (HOLTE) The Initial Strategy Recommendations Memo includes the following description of the HOLTE program (Attachment 3, p. 40): The purpose of this program is to encourage homeownership among low- and moderate- income households and to stimulate the purchase, rehabilitation, and construction of residences in certain areas as a form of infill development… The program allows a limited 10-year property tax exemption to owner-occupied single-unit housing that has a market value upon completion of no more than 120% of median sales price of dwelling units located within the city (or a lesser value adopted by the jurisdiction) … The tax exemption can be granted for up to 10 successive years, and only applies to the value associated with property improvements, not the land value. As mentioned above, jurisdictions are permitted to limit the application of the HOLTE program to target homebuyers earning less than the specified level of 120% of city median sales prices. From the Initial Strategy Recommendations Memo (Attachment 3, p. 40): While not required by statute, local governments can establish income criteria for eligible homebuyers. For example, the City of Portland limits eligible homebuyers to those earning no more than 100% of the area median income.2 2 City of Portland, HOLTE Program. https://www.portland.gov/phb/holte/sale-requirements Page 7 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY At the aforementioned joint study session on April 2, both the Council and Planning Commission concurred with staff’s initial recommendation to not include the HOLTE strategy in the Draft HPS. As outlined in the Initial Strategy Recommendations Memo (Attachment 3), the HOLTE program was not initially expected to have a meaningful impact on housing production due to the land and housing costs that prevail in Lake Oswego, and staff and the consultant team did not expect many opportunities to arise in the for-profit development market for the purchase of homes affordable to lower-income first-time homebuyers in the city. On May 1, 2024, the City received a letter from Habitat for Humanity that included a request to re-consider including the HOLTE program in the HPS (Attachment 2). The letter included the following arguments in support of implementing HOLTE in Lake Oswego: With steep interest rates and escalating construction costs, homeownership is farther out of reach for low- and moderate-income households and building affordable homes for sale requires increasingly complex financing. The HOLTE program, which provides a 10-year property tax exemption on the improvements for lower-income homebuyers in new, affordably priced homes, allows Habitat to partner with families for whom homeownership is a truly transformational opportunity. Currently, Portland is the only city in our program’s footprint that has implemented HOLTE. HOLTE makes homeownership work for lower-income households because a reduction in property taxes translates into increased purchasing power. For some families who partner with our program to buy a home, this savings is the critical difference that allows the household to qualify for an affordable mortgage. More specifically, Habitat for Humanity mentions that the HOLTE program could make a meaningful impact for homeowners in their West Lake Grove development, which is currently under construction: … We have estimated that our homeowners in the Habitat for Humanity West Lake Grove development in Lake Oswego will pay property taxes of $333/month for 3- bedroom homes and $375/month for 4-bedroom homes. To set homebuyers up for success, their total monthly payment (mortgage principal & interest, HOA fee, Proud Ground fee, insurance, and property taxes) should be 30% of their monthly income. Every lever that can reduce those monthly costs lowers the income threshold that families need to meet to qualify for a mortgage. As mentioned above, given LO’s property costs, staff and the consultant team initially concluded that the program may not be adequate to incent for-profit developers to sell homes at reduced prices. However, staff and the consultant team would evaluate HOLTE’s effectiveness differently if the builder is a non-profit mission-driven developer focused on affordable housing. Page 8 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY This request to include the HOLTE program in the HPS was considered by the HPS Task Force at their meeting on June 21, and by the Planning Commission at their meeting on June 24. Both the HPS Task Force and the Planning Commission recommended including a strategy to evaluate the implementation of HOLTE in the city’s HPS, with a suggestion to include additional income criteria that would limit the program to units made available at or below 80% of the city median home sales price. At their meeting on July 16, the Council will be asked to provide direction regarding whether to include the HOLTE strategy in the HPS. Project Schedule A summary of the project schedule is summarized in Table 3, below. Table 3: HPS Project Schedule Task Milestone Date Evaluate existing housing strategies [Aug – Nov 2023] Housing Producer Interviews Aug – Sep 2023 HPS Task Force Meeting #4 Oct 6, 2023 Council Study Session #4 Nov 7 Planning Commission (PC) Work Session #4 Nov 13 Outline housing strategy alternatives [Nov 2023 – Jan 2024] Draft Housing Strategy Alternatives Memo Nov 2023 HPS Task Force Meeting #5 Dec 8 PC Update Jan 8, 2024 Refine housing strategy recommendations [Feb – Apr 2024] HPS Task Force Meeting #6 Feb 16 HPS Task Force Meeting #7 Mar 1 Community Forum / Public Workshop Mar 14 CC-PC Joint Work Session Apr 2 Draft HPS Report [May – Jul 2024] Initial Draft HPS Report May 27 HPS Task Force Meeting #8 Jun 21 PC Work Session Jun 24 Council Study Session Jul 16 Finalize HPS for adoption [Aug – Nov 2024] Final HPS Report Aug 2 PC Public Hearing Sep 9 Council Public Hearing Oct 15 / Nov 5 Page 9 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY RECOMMENDATION Direct staff to include the MUPTE and HOLTE strategies in the City’s HPS Report. ATTACHMENTS This staff memo and all attachments referenced below can be found by visiting the Planning Project webpage for the case file. Due to file size, attachments are available in the “Public Records Folder” using this link: https://www.ci.oswego.or.us/planning/pp-22-0005-housing-needs-and-production-strategies. 1. City of Lake Oswego Draft Housing Production Strategy, 06/14/2024 2. Letter from Habitat for Humanity, 05/01/2024 3. Initial Strategy Recommendations Memo, 02/08/2024 Documents from previous meetings are also available in the public records file using the link provided above. HOUSING PRODUCTION STRATEGY LAKE OSWEGO, OREGON DRAFT – JUNE 14, 2024 PP 22-0005 ATTACHMENT 1/PAGE 1 OF 103 ATTACHMENT 1 Lake Oswego Housing Production Strategy ACKNOWLEDGMENTS CITY COUNCIL HOUSING PRODUCTION STRATEGY TASK FORCE Mayor Joseph M. Buck Ali Afghan Trudy Corrigan Massene Mboup Aaron Rapf Rachel Verdick John Wendland Mayor Joseph M. Buck, City Council Liaison (non-voting) Philip Stewart, Planning Commission Liaison (non-voting) Douglas Corder, 50+ Advisory Board Representative Kasey Adler, Transportation Advisory Board Representative Bruce Poinsette, Development Review Commission Representative (builder) At-large Members: Sarah Walker (affordable housing developer) David Tangvald (real estate broker) Phil Bertrand (real estate broker) Kyrsten Baumgart (resident) Yoko Kinoshita (resident) Logan Bryck (resident) Cara Kao-Young (resident) Rebecca Lane (resident) John E. Pauley (resident) Rosalie Nowalk (resident) Pat Ginn (resident) Diana Howell (resident) John Turchi (resident) PLANNING COMMISSION Diana Moreno Don Mitchell Rachel Naujock Miles Rigby Dave Schenone Philip Stewart James Thwing CITY STAFF Erik Olson, Long Range Planning Manager Jessica Numanoglu, Community Development Director PROJECT TEAM Matt Hastie, MIG Kate Rogers, MIG Andrew Parish, MIG Katie Vickers, MIG Brendan Buckley, Johnson Economics PP 22-0005 ATTACHMENT 1/PAGE 2 OF 103 Lake Oswego Housing Production Strategy TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................. 1 PROJECT OVERVIEW ..................................................................................................... 3 Project Purpose and Background .................................................................................................. 3 Lake Oswego’s Housing Needs ...................................................................................................... 4 Engagement Summary ................................................................................................................. 5 STRATEGIES AND ACTIONS ........................................................................................... 7 1. Code audit and amendments ........................................................................................................ 11 2. Remove or reduce minimum parking requirements .................................................................... 13 3. Rezone land ................................................................................................................................... 14 4. Evaluate accessible design incentives or mandates ..................................................................... 16 5. Multiple Unit Property Tax Exemption (MUPTE) ........................................................................... 19 6. Pre-approved plan sets for ADUs ................................................................................................... 21 7. Modify System Development Charge (SDC) fee schedule ............................................................. 23 8. Nonprofit Low-Income Housing Tax Exemption ........................................................................... 25 9. Low-Income Rental Housing Tax Exemption ................................................................................. 27 10. Public-private partnerships for affordable housing ................................................................... 28 11. Use Tax Increment Financing (TIF) to support affordable housing development .................... 30 12. Affordable housing preservation inventory ............................................................................... 32 13. Fair Housing policy and education ............................................................................................. 33 ACHIEVING FAIR AND EQUITABLE HOUSING OUTCOMES ............................................ 35 MONITORING PROGRESS AND OUTCOMES ................................................................. 39 LIST OF APPENDICES ................................................................................................... 41 APPENDICES A. Contextualized Housing Needs Assessment B. Engagement Summary C. Pre-HPS Survey Results PP 22-0005 ATTACHMENT 1/PAGE 3 OF 103 Lake Oswego Housing Production Strategy | 1 EXECUTIVE SUMMARY OVERVIEW Oregon Statewide Planning Goal 10 requires cities to plan for the housing needs of all community members. As a city within the Portland Metro area, Lake Oswego must complete a Housing Needs Analysis (HNA) every six years as well as a Housing Production Strategy (HPS) to implement specific actions that address the identified needs. Lake Oswego’s Housing Production Strategy outlines a range of strategies the City plans to implement to address housing needs within the community. The HPS prioritizes current and future housing needs identified in the HNA and outlines actionable policies, actions, and implementation steps to encourage the production of housing. These include things like changes to how the City zones land and regulates development of housing, financial incentives, funding sources, partnerships, and other tools and policies. This HPS Report includes information about the City’s critical housing needs and summarizes public engagement activities that informed and shaped the housing strategies recommended for implementation. The document also summarizes how the HPS will help achieve fair and equitable housing outcomes for the Lake Oswego community – especially for low-income households, communities of color, people with disabilities, and other state and federal protected classes. Lastly, this document describes how the City of Lake Oswego will monitor the implementation and progress of the strategies recommended in the HPS. RECOMMENDED STRATEGIES AND ACTIONS On the next page is a summary of the strategies and actions recommended as part of Lake Oswego’s HPS. The strategies are organized by the primary housing need that they address. However, some strategies address housing needs across multiple categories. PP 22-0005 ATTACHMENT 1/PAGE 4 OF 103 Lake Oswego Housing Production Strategy OVERALL HOUSING PRODUCTION AND SUPPLY Increase housing production to meet the City’s overall long-term housing need. INCREASED HOUSING CHOICES Enable and encourage production of housing that can meet a full range of household needs and preferences. This includes a wider variety of housing types and sizes, and housing to meet particular needs such as aging in place and accessibility. AFFORDABLE HOUSING FOR LOWER-INCOME HOUSEHOLDS Facilitate development of government-subsidized housing that meets the needs of low- and moderate-income households. OTHER The strategy in this category (Fair Housing policy and education) does not easily fit under the other headings, but supports equitable implementation of all recommended housing strategies. More details about the implementation time frames and cost/effort estimates in the table below are provided in the Strategies and Actions section of this report. Implementation Time Frame Strategy Begin Complete Cost Effort Overall Housing Production and Supply 1. Code audit and amendments Near Term Medium Term $$$$ ● ● ● 2. Remove or reduce minimum parking requirements Near Term Near Term $$$$ ● ○ ○ 3. Rezone land Medium Term Longer Term $$$$ ● ● ● Increased Housing Choices 4. Evaluate accessible design incentives or mandates Medium Term Medium Term $$$$ ● ● ○ 5. Evaluate Multiple Unit Property Tax Exemption Medium Term Medium Term $$$$ ● ● ○ 6. Pre-approved plan sets for ADUs Medium Term Medium Term $$$$ ● ● ● 7. Modify System Development Charge fee schedule Longer Term Longer Term $$$$ ● ● ● Affordable Housing for Lower-Income Households 8. Nonprofit Low-Income Housing Exemption Already Complete $$$$ ● ○ ○ 9. Low-Income Rental Housing Tax Exemption Near Term Near Term $$$$ ● ● ○ 10. Public-private partnerships for affordable housing Near Term Ongoing $$$$ ● ● ● 11. Use Tax Increment Financing to support affordable housing development Near Term Longer Term $$$$ ● ● ● 12. Affordable housing preservation inventory Medium Term Medium Term $$$$ ● ● ○ Other 13. Fair Housing policy and education Near Term Medium Term $$$$ ● ● ○ PP 22-0005 ATTACHMENT 1/PAGE 5 OF 103 Lake Oswego Housing Production Strategy | 3 PROJECT OVERVIEW PROJECT PURPOSE AND BACKGROUND Oregon Statewide Planning Goal 10 requires cities to plan for the housing needs of all community members. As a city within the Portland Metro area, Lake Oswego must complete a Housing Needs Analysis (HNA) every six years as well as a Housing Production Strategy (HPS) to implement specific actions that address the identified needs. The Lake Oswego City Council adopted an updated HNA in October 2023. The HNA looks at the community’s 20- year housing needs and whether there is enough residential land in the city to meet those needs. The Housing Production Strategy outlines a range of strategies the City of Lake Oswego plans to implement to address housing needs within the community. The HPS prioritizes current and future housing needs identified in the HNA and outlines actionable policies, actions, and implementation steps to encourage the production of housing. These include things like changes to how the City zones land and regulates development of housing, financial incentives, funding sources, partnerships, and other tools and policies. The HPS process focuses on strategies related to the production of new housing, recognizing the significant shortfall of housing produced in Oregon during the last two decades. However, it also will be important for the City to work with its community partners to help conserve, maintain, and rehabilitate existing housing in Lake Oswego, particularly where such housing also is affordable to people with low and moderate incomes. PP 22-0005 ATTACHMENT 1/PAGE 6 OF 103 Lake Oswego Housing Production Strategy | 4 LAKE OSWEGO’S HOUSING NEEDS The project team used the findings from the HNA, as well as additional information from the Census, other data sources, and from stakeholders involved in housing production in the city, to put Lake Oswego’s housing needs into context with current demographic and development trends. Below are some key findings from the HNA and Contextualized Housing Needs Assessment (Appendix A). Current Needs • While Lake Oswego is generally considered an affluent community, not all households are wealthy. Over 40% of households in the city earn less than $100k and nearly 20% of households earn less than $50k per year. • Homeownership costs have increased significantly in Lake Oswego, consistent with national trends. The median home sale price in Lake Oswego has more than doubled over the past 10 years, from $395k in 2012 to $860k in 2022. • There is very little existing housing available to those in lower income segments. Around 2/3 of existing housing units (both rental and ownership units) are unaffordable to those earning less than $100k per year, and over 90% of existing units are unaffordable to those earning less than $50k per year. • Nearly half of renter households in Lake Oswego are considered housing cost burdened, meaning they pay more than 30% of their income for housing. Future Needs • Lake Oswego will need nearly 2,000 new housing units by 2043 to meet projected demand. Housing will need to be produced across the income spectrum to meet these needs. • A wide range of housing types are needed to meet the range of household sizes and incomes. The majority of new needed homes (61%) are projected to be attached housing – this includes 27% as middle housing units (townhomes and “plexes” with two to four units) and 34% as multi-family housing (e.g., apartments). • More than 1/3 of new housing units over the next 20 years will be needed by “low-income” households – those earning at or below 80% of the median family income (MFI) for Clackamas County. • The private market will not deliver housing that is needed by low-income households on its own. Housing that is affordable to those earning below 80% MFI typically requires government subsidy and partnerships with affordable housing providers. 2,000 new housing units needed Nearly 20% of households earn less than $50k per year Nearly half of renters are cost burdened 27% of new needed units are middle housing PP 22-0005 ATTACHMENT 1/PAGE 7 OF 103 Lake Oswego Housing Production Strategy | 5 • There is a shortage of buildable residential land across all zone types (low- to high-density) to meet the 20-year housing need in Lake Oswego (a deficit of 86 total acres). Key Housing Gaps The following housing types have been identified by stakeholders involved in local housing production as key gaps in Lake Oswego’s housing market. The HPS will work toward meeting these housing needs and filling these gaps. • Affordable housing for low- and moderate-income households. • Greater housing choices within neighborhoods, including middle housing (e.g., townhomes, duplexes, cottage clusters). • Opportunities for aging in place – More than 20% of the population is over 65. • Options for more attainable homeownership (e.g., condos and middle housing). • Apartments with family-size units (2-3 bedrooms) – Nearly 1/3 of current households in the city have children. • Multi-family housing outside the Town Center. ENGAGEMENT SUMMARY The City of Lake Oswego is committed to reaching a broad range of community members to consider all perspectives related to housing within the city. The City values openness and transparency, recognizing that successful public engagement leads to better local decisions and outcomes. The public engagement for the Lake Oswego HPS allowed community members, stakeholders, and interested parties to share their perspectives and input. This project was developed through a collaborative process among the community, City staff and decisionmakers, stakeholders, and consultants to ensure that multiple points of view were considered and understood. Below is a summary of engagement activities and outcomes for the HPS. More detail is provided in Appendix B. Public engagement was split into three phases: Phase 1: HNA (Dec 2022 -Oct 2023) Phase 2: HPS Development (Oct 2023 -Jul 2024) Phase 3: HPS Adoption (Aug -Nov 2024) Shortage of residential land PP 22-0005 ATTACHMENT 1/PAGE 8 OF 103 Lake Oswego Housing Production Strategy | 6 OUTREACH METHODS INCLUDED: Housing Production Strategy Task Force. This advisory group included a variety of housing stakeholders, producers, and consumers. This included realtors, housing development industry members, homeowners, renters, and representatives of the City’s Planning Commission, City Council, 50+ Advisory Board, and Transportation Advisory Board, among others. The Task Force was instrumental in shaping the City’s approach to the HPS and the strategies ultimately selected. They reviewed materials created by the project team at each step of the process and provided important information and feedback. This was especially beneficial in informing decisions by the Planning Commission and City Council. Stakeholder Interviews. The project team interviewed stakeholders involved in various aspects of housing production, including affordable housing producers as well as developers or designers of market-rate multifamily, middle housing, and single-family housing. The feedback received from housing stakeholders influenced the strategies included in the HPS. For example, the code topics addressed in the Code Audit and Amendments strategy were refined to address the barriers identified by housing developers and producers. Also, incentives and other strategies that support affordable housing development (tax abatements, TIF funding, partnerships) were shaped by these interviews. Virtual Forums and Surveys. The City hosted two virtual community forums – on April 6, 2023 to discuss housing needs as part of the HNA, and on March 14, 2024 to review the strategies being considered for the HPS. The HPS forum used live polling to get feedback in real-time to supplement the discussion. The City also hosted two online surveys / online open houses that corresponded with the virtual forums. The HPS community forum and online survey were used to gauge community support for various strategies under consideration for the HPS. Presentations to Boards and Commissions. City staff presented to the following groups: Diversity, Equity and Inclusion Advisory Board; 50+ Advisory Board; November 2023 Mayor’s Roundtable event; and Fall 2023 Kruse Way Economic Forum City Council and Planning Commission meetings. The project team held work sessions with the City Council and Planning Commission at key points in the project. Adoption hearings with both bodies were held in fall 2024. Planning Commission and City Council provided important direction to the project team at key points in the HPS development. Work sessions with both bodies were used to review, refine, and prioritize specific strategies included in the HPS. Ultimately, the Planning Commission and City Council provided direction on which strategies to include in the draft HPS and approved the final HPS via adoption hearings. PP 22-0005 ATTACHMENT 1/PAGE 9 OF 103 Lake Oswego Housing Production Strategy | 7 STRATEGIES AND ACTIONS The Housing Production Strategy identifies strategies and actions that the City of Lake Oswego and community partners can take to promote housing development that meets the needs of the community. All strategies recommended in this report were supported by the HPS Task Force, City Council, and Planning Commission. The strategies are organized by the primary housing need that they address. However, some strategies address housing needs across multiple categories. OVERALL HOUSING PRODUCTION AND SUPPLY Increase housing production to meet the City’s overall long-term housing need. INCREASED HOUSING CHOICES Enable and encourage production of housing that can meet a full range of household needs and preferences. This includes a wider variety of housing types and sizes, and housing to meet particular needs such as aging in place and accessibility. AFFORDABLE HOUSING FOR LOWER-INCOME HOUSEHOLDS Facilitate development of government-subsidized housing that meets the needs of low- and moderate-income households. OTHER The strategy in this category (Fair Housing policy and education) does not easily fit under the other headings, but supports equitable implementation of all recommended housing strategies. PP 22-0005 ATTACHMENT 1/PAGE 10 OF 103 Lake Oswego Housing Production Strategy | 8 The HPS report summarizes key information for each of the recommended strategies and identifies steps needed for implementation. The summary of each housing strategy includes the following information: Description What is the strategy? How can the strategy work to address identified housing needs in Lake Oswego? What are potential outcomes? Considerations What potential options, funding needs, challenges, etc. are applicable to the strategy? Are there potential trade-offs or negative externalities to consider? How feasible is this strategy, given other considerations? Recommendation Identifies specific actions recommended for implementation. (Not applicable to all strategies). Anticipated Impact What is the anticipated impact of the strategy? The following types of impacts are considered: • Housing need addressed – Housing need identified in the HNA that is addressed by the strategy • Populations served by the strategy • Income levels addressed by the strategy • Benefits and burdens that “priority populations” may receive from the strategy. “Priority populations” include low-income households, people of color, people with disabilities, seniors, and other state or federal protected classes. • Housing tenure (either owner or renter) • Magnitude of the action for producing new housing: Low impact = The strategy is unlikely to meet the relevant housing need. A low impact strategy does not mean an action is unimportant. Some actions are necessary or beneficial, but not sufficient on their own to produce new housing. Moderate impact = The strategy either may have a moderate impact on meeting the relevant housing need or be designed to target that need. High impact = The strategy may directly benefit a certain housing need and is likely to be most effective at meeting that need relative to other strategies. Time Frame Implementation: When does the City expect to begin implementation, and when will the action to be adopted and implemented? Strategies are identified as Near Term (1-3 years), Medium Term (within 3-5 years), and Longer Term (>5 years) actions. Impact: Over what time period will the impact occur? Implementation Actions What actions will the City and other stakeholders need to take to implement the strategy? Lead & Partners Who will be responsible for implementing the strategy? What partnerships might be necessary or beneficial to the strategy? PP 22-0005 ATTACHMENT 1/PAGE 11 OF 103 Lake Oswego Housing Production Strategy | 9 SUMMARY OF STRATEGIES AND IMPLEMENTATION Strategies are identified as Near Term (1-3 years), Medium Term (within 3-5 years), and Longer Term (>5 years) implementation time frames. A matrix shows each strategy with the time frames, relative cost, and level of effort. A general implementation timeline follows on the next page. Implementation Time Frame Strategy Begin Complete Cost Effort Overall Housing Production and Supply 1. Code audit and amendments Near Term Medium Term $$$$ ● ● ● 2. Remove or reduce minimum parking requirements Near Term Near Term $$$$ ● ○ ○ 3. Rezone land Medium Term Longer Term $$$$ ● ● ● Increased Housing Choices 4. Evaluate accessible design incentives or mandates Medium Term Medium Term $$$$ ● ● ○ 5. Evaluate Multiple Unit Property Tax Exemption Medium Term Medium Term $$$$ ● ● ○ 6. Pre-approved plan sets for ADUs Medium Term Medium Term $$$$ ● ● ● 7. Modify System Development Charge fee schedule Longer Term Longer Term $$$$ ● ● ● Affordable Housing for Lower-Income Households 8. Nonprofit Low-Income Housing Exemption Already Complete $$$$ ● ○ ○ 9. Low-Income Rental Housing Tax Exemption Near Term Near Term $$$$ ● ● ○ 10. Public-private partnerships for affordable housing Near Term Ongoing $$$$ ● ● ● 11. Use Tax Increment Financing to support affordable housing development Near Term Longer Term $$$$ ● ● ● 12. Affordable housing preservation inventory Medium Term Medium Term $$$$ ● ● ○ Other 13. Fair Housing policy and education Near Term Medium Term $$$$ ● ● ○ Key Cost Effort $$$$ Minimal Investment ● ○ ○ Minimal Effort $$$$ Moderate Investment ● ● ○ Moderate Effort $$$$ Significant Investment ● ● ● Significant Effort $$$$ Major Investment PP 22-0005 ATTACHMENT 1/PAGE 12 OF 103 Lake Oswego Housing Production Strategy | 10 IMPLEMENTATION TIMELINE 2024 2025 2026 2027 2028 2029 2030 1. Code audit and amendments 2. Remove or reduce min. Parking requirements 3. Rezone land 4. Evaluate accessible design incentives or mandates 5. Evaluate Multiple Unit Property Tax Exemption 6. Pre-approved plan sets for ADUs 7. Modify SDC fee schedule* 8. Nonprofit Low-Income Housing Exemption 9. Low-Income Rental Housing Tax Exemption 10. Public-private partnerships for affordable housing 11. Use TIF to support affordable housing 12. Affordable housing preservation inventory 13. Fair Housing policy and education * Note: The SDC strategy is split into two time frames (2025 and 2029-2030) to reflect the near-term action of updating SDC rates for cottage clusters and the longer-term action of updating the City’s SDC methodology more broadly. See the discussion on page 23 for details. PP 22-0005 ATTACHMENT 1/PAGE 13 OF 103 Lake Oswego Housing Production Strategy | 11 STRATEGIES TO BOOST OVERALL HOUSING PRODUCTION AND SUPPLY The following strategies are intended to increase housing production in Lake Oswego. The HNA indicates that nearly 2,000 new housing units will be needed by 2043. This includes approximately 950 units for higher-income households and over 1,000 units for middle- and lower-income households. Increasing housing production will not only help meet these needs, it can also slow increasing housing costs by helping balance housing supply and demand. 1. Code audit and amendments Description Undertake a comprehensive audit of the Community Development Code (CDC) to identify barriers to housing production and implement code amendments to address those barriers. The CDC audit and amendments are recommended to address: • Barriers to accessory dwelling units (ADUs) and middle housing; • Ways to facilitate smaller units; • Procedural requirements that add cost and delay to land use approvals; • Open space requirements in high-density zones; • Barriers to residential development within mixed-use districts; • The impact of neighborhood overlays or other regulatory provisions; and • Other identified Code barriers. The CDC amendments could also incorporate recent changes to state law related to affordable housing and lower-cost housing choices. These statutory provisions apply whether or not the City adopts them locally, but amending the Code could facilitate easier interpretation by staff and applicants. Recent changes to Oregon Revised Statutes (ORS) include: • ORS 197A.445(2) (Senate Bill 8, 2021): Allows affordable housing with density and height bonuses. • ORS 197A.445(3) (House Bill 2984, 2023): Allows conversion of commercial buildings into housing. • ORS 197A.430 (House Bill 3395, Sections 16-19, 2023): Allows single room occupancies in all residential zones. Considerations • This strategy could help reduce or eliminate some of the major code and procedural barriers identified by housing stakeholders. • The strategy could be shaped to prioritize housing types identified as most needed in the city, based on the City’s recently adopted HNA and stakeholder input, such as: o Middle housing (e.g., townhomes, duplexes, and cottage clusters) o Apartments with family-size units (2-3 bedrooms) o Multi-family housing (of any size) o Smaller homes PP 22-0005 ATTACHMENT 1/PAGE 14 OF 103 Lake Oswego Housing Production Strategy | 12 • Simply removing code barriers will not lead to housing development. This strategy should be paired with others that directly influence housing production. • There may be neighborhood resistance to this strategy, particularly for any code amendments intended to modify existing neighborhood overlays or neighborhood planning efforts. Extensive community engagement would be necessary. Anticipated Impact • Housing need addressed: General need for increased housing production and increased housing choices. This strategy could also specifically address the needs for multi-family housing, middle housing, and smaller units such as ADUs. • Population served: Low to higher-income households • Income level: All income levels • Benefits and Burdens: This strategy is broad, and therefore difficult to evaluate in terms of benefits and burdens for priority populations. However, it does give the opportunity to target efforts in beneficial areas such as reducing barriers to affordable development or housing that is more attainable to low- and moderate- income households (e.g., multi-family and middle housing); facilitating smaller housing options such as ADUs, which could benefit seniors; and other areas aimed at helping priority populations. In addition, increasing overall housing supply can help keep housing costs down by balancing supply and demand, which benefits all residents, including priority populations. However, because the strategy is intended to increase housing production overall, it has the potential to primarily benefit upper income households. Implementation should include a focus on meeting the needs of housing types that benefit low- and moderate-income households, seniors, and other priority populations. • Housing tenure: For rent or sale • Magnitude: Moderate – This strategy could have a moderate impact on new housing production given the limited remaining inventory of buildable residential lands. The low inventory and relatively high land prices in Lake Oswego incentivize making more intensive use of remaining sites, if the code permits it. Time Frame Implementation: Begin in Near Term; Complete in Medium Term. Impact: The action can begin to have impact after it is implemented in the CDC. However, the impact on housing development is expected to be longer-term. Implementation Actions • Identify priorities for the code audit, focusing on high-priority housing needs. • Potentially seek a technical assistance grant from DLCD or other sources to support a code audit project. • Conduct a comprehensive CDC audit, potentially with support from a consultant. • Work with developers/housing stakeholders and residents to vet potential CDC amendments. • Work with Lake Oswego’s Planning Commission and City Council to adopt code amendments. • City Council Action: Legislative CDC text amendments. PP 22-0005 ATTACHMENT 1/PAGE 15 OF 103 Lake Oswego Housing Production Strategy | 13 Lead & Partners Lead: Lake Oswego Community Development Partners: Developer and housing stakeholders 2. Remove or reduce minimum parking requirements Description As required by the State of Oregon’s Climate-Friendly and Equitable Communities (CFEC) program, the City is currently undertaking Citywide Parking Reform efforts to develop regulations that comply with the CFEC rules. This includes requirements to remove parking mandates in certain areas (near transit, Downtown, and in the Lake Grove Village Center). The City is also required to take additional steps to reduce parking requirements. For example, the City could consider removing parking mandates citywide as a part of this work. While the CFEC-related parking reform efforts were not initiated as part of the HPS, reducing parking mandates benefits housing production in several ways. It provides the opportunity to reduce the amount of lot area used for pavement and storage of vehicles and provides more space for housing and open space. It also offers greater flexibility to site housing and reduces costs associated with providing parking. The City is choosing to recognize the value of this work in facilitating housing development by including in the HPS. More information about the Citywide Parking Reform project is available here: www.ci.oswego.or.us/planning/pp-22-0001-citywide-parking-reform. Considerations • Parking mandates are often cited as a major barrier for market-rate multi- dwelling and regulated affordable housing. • Developers often choose to provide parking, even if not required. Lenders/investors may require some parking to ensure marketability of units. • There could be community opposition to removing all parking mandates, due to the potential for higher usage of on-street parking and the potential for parking overflow from commercial areas to residential neighborhoods. Anticipated Impact • Housing Need Addressed: General need for increased housing production. This strategy would especially benefit production of multi-family and government-subsidized affordable housing. • Population served: Especially beneficial to low- to moderate- income households • Income level: All income levels – especially 30-120% AMI • Benefits and Burdens: This strategy has the potential to benefit low-income households and people of color by removing parking mandates as a barrier to development of affordable housing. Access to convenient parking has been raised as an important need for people with disabilities; therefore, removing parking mandates could potentially burden those populations if parking is not provided. The City could consider encouraging property owners to provide parking for people PP 22-0005 ATTACHMENT 1/PAGE 16 OF 103 Lake Oswego Housing Production Strategy | 14 with disabilities and set policy on when on-street parking designated for people with disabilities is appropriate. On the other hand, some people with disabilities are unable to drive and could benefit from removing additional costs associated with parking. • Housing tenure: For rent or sale • Magnitude: High – This action is likely to have the most impact on market- rate multi-family and regulated affordable housing. Parking mandates are often cited as a major barrier for those types of development. Reduced parking often allows for greater density (i.e., additional housing) on a site, improving the financial feasibility via replacing the sunk cost of building and maintaining the parking area, with additional revenue-generating space. Reduced parking also allows developers to be more creative with site planning and design features in general, often improving the aesthetics and functionality of a property as well. Time Frame Implementation: Begin and Complete in Near Term Impact: The action will begin to have impact as soon as the parking mandates are removed. Impacts to housing production are expected to be longer term. Implementation Actions • Conduct outreach and education related to parking mandates. • Work with Lake Oswego’s Planning Commission and City Council to adopt code amendments. • City Council Action: Adopt Development Code text amendments. Lead & Partners Lead: Lake Oswego Community Development Partners: N/A 3. Rezone land Description This strategy involves rezoning commercial, mixed-use, or other non-residentially zoned properties for residential uses, especially multi-family housing. It could also involve updating zoning districts to allow housing where not currently allowed or rezoning lower-density areas to allow higher-density housing. The HNA identified a need for additional residential land across all zone types to meet the 20-year housing need in Lake Oswego (a deficit of 86 total acres). As such, there may be a need to add to the city’s capacity of residential land to meet the housing need. Rezoning is one way to help address this issue. Recommendation Prioritize rezoning in areas with the greatest potential for higher density multifamily housing – including areas where nonresidential uses are underutilized. Potential zoning districts to consider for this strategy include the Mixed Commerce District (MC) and Industrial District (I). Considerations • If nonresidential land is considered for rezoning, it would be important to ensure there is still adequate land available for employment and commercial/industrial PP 22-0005 ATTACHMENT 1/PAGE 17 OF 103 Lake Oswego Housing Production Strategy | 15 needs in the city. Lake Oswego’s Economic Opportunities Assessment identifies the city’s future employment land needs. • In considering the most appropriate locations for City-initiated rezoning of land, the following criteria or factors should be considered: o Proximity to existing residential and higher-density areas. o Proximity to services (e.g., transit, schools, parks, etc.). o Size and ownership – larger properties will be more attractive for development. • There may be neighborhood resistance to rezoning, especially “upzoning” single- family residential areas. This strategy would need significant community engagement. Anticipated Impact • Housing need addressed: Rezoning would address the shortage of land for housing, and the overall need for housing production in the city. Depending on how it is implemented, this strategy could also address the shortage of higher- density land by rezoning lower-density land. • Population served: Low to higher income households • Income level: All income levels • Benefits and Burdens: Rezoning can increase the availability of land zoned for residential development. Additional capacity for more housing development can include opportunities for multi-family housing that is generally more affordable to low- and moderate-income households. A potential burden from this strategy is the possibility of lower-income households being displaced if rezoning leads to increased development pressures or increased property values. Rezoning commercial areas, or impacts of increased property values, can also lead to commercial displacement of small businesses. Rising commercial rents or pressures to redevelop for residential uses may have a larger impact on small-scale entrepreneurs and immigrant or minority-owned businesses. The characteristics of areas being considered for rezoning should be carefully considered as part of implementation to avoid displacement impacts. • Housing tenure: For rent or sale • Magnitude: Moderate to High – The impact of rezoning might be relatively high given the limited supply and high demand for buildable residential land in the community. The effectiveness of rezoning will depend on the physical and infrastructure characteristics of the rezoned land for residential use. The density of housing under the new zone will also depend on the physical constraints (e.g., steep slopes) that might limit the buildable portion of a site. Time Frame Implementation: Begin in Medium Term; Complete in Longer Term Impact: Land inside city limits will become available for development immediately after rezoning. Land outside city limits can also be developed, but will need to overcome the additional hurdle of annexation. The impact on housing development is expected to be long-term. Implementation Actions • Use the criteria listed above to identify potential areas for rezoning. Prioritize sites with the best potential for housing production and access to services. PP 22-0005 ATTACHMENT 1/PAGE 18 OF 103 Lake Oswego Housing Production Strategy | 16 • Consider the demographic characteristics of potential rezoning areas to avoid potential displacement impacts. • Engage with property owners as well as the broader community in targeted areas. • Work with Lake Oswego’s Planning Commission and City Council to adopt Zoning and Comprehensive Plan Map amendments. • City Council action: Legislative Zoning and Comprehensive Plan Map amendments and CDC and Comprehensive Plan text amendments. Lead & Partners Lead: Lake Oswego Community Development Partners: Property owners STRATEGIES TO INCREASE HOUSING CHOICES The following strategies are intended to meet a full range of household needs and preferences. This includes a wider variety of housing types and sizes, and housing to meet particular needs such as aging place and accessibility. 4. Evaluate accessible design incentives or mandates Description This strategy involves evaluating incentives or mandates to increase development of housing that is accessible for seniors and people with disabilities or mobility challenges. Potential incentives could include: • Bonuses for height, density, lot size, or floor area ratio. • Tax abatements, e.g., MUPTE (see Strategy 5). Potential mandates could include: • Requiring visitability in single-family and middle housing development— this would ensure that anyone using a wheelchair can visit the subject homes. Visitability is most relevant for buildings with fewer than four units, townhouses, and detached homes that aren’t subject to ADA requirements. • Requiring housing that receives public funding to provide more accessible units or more universal design features than required under federal standards. This could mean applying the standards to a higher percentage of units than would otherwise be required (above 5%) and/or requiring units to meet higher Universal Design or Lifelong Housing Certification standards. • Requiring elevators in some or all multi-story buildings. Currently, the Building Code only requires elevators to reach common spaces (such as exercise rooms) or units that are federally required to be accessible. Requiring elevators in one or more multi-family buildings would provide access to all levels of that building. It would also make all units “covered” units under the Fair Housing Act, meaning all units would need to have baseline accessibility features. PP 22-0005 ATTACHMENT 1/PAGE 19 OF 103 Lake Oswego Housing Production Strategy | 17 Accessibility Standards: A small number of units in multifamily buildings are already required to have accessibility features under federal law and Oregon’s state building code. This strategy would go beyond those minimums by either requiring or incentivizing additional units that provide accessibility features, or targeting housing not subject to these requirements (e.g., single-family homes and middle housing).1 Potential accessibility standards include: • Building Code Standards. Oregon’s building code provides specifications for “Accessible Units” (with features such as wider than Type B doorways and fully accessible bathroom and kitchen facilities), “Type A units” (less accessible than “Accessible Units” and adaptable for additional accessibility), and “Type B” units (fewer accessibility features than Type A). Relying on these existing statewide code standards would be a relatively straightforward approach. • Universal Design is a building concept that incorporates design layouts and characteristics into residences to make them usable by the greatest number of people and respond to the changing needs of the resident. Universal Design incorporates standards for features such as hallways, doorways, bathrooms, and kitchens that make these features usable for people with disabilities or adaptable for that purpose.2 • Visitability is a design approach for new housing that allows anyone who uses a wheelchair or other mobility device to visit the home. A visitable home typically includes: o A zero-step entrance; o Wide interior doors; and o A half bathroom on the main floor. Considerations • This strategy would help address housing disparities for people with disabilities and provide more options for aging in place. • Strategies to promote accessible housing received support from the Middle Housing Code Advisory Committee as part of the House Bill 2001 code updates. • Accessibility features can add to the cost of construction for a development, which can make affordable housing projects less financially feasible. Elevators, in particular, add significant cost to a project. • While mandates may provide more accessible units, they could prevent some affordable housing projects from being developed. 1 Multi-family developments are subject to the Fair Housing Act; for buildings with an elevator, all units must be Type B units, per the building code; for those without an elevator, all ground floor units must be Type B. At least 2% but not less than one dwelling unit in a multi-family site with more than 20 units must be Type A units. Housing projects receiving public funding are subject to federal laws (Section 504 of the Rehabilitation Act of 1973 and/or Title II of the ADA), which require 5% of units to be mobility-accessible. Sources: Portland Code Guide, Accessible Design. https://www.portlandoregon.gov/bds/article/514247; Disability Law Handbook, Southwest ADA Center. http://www.southwestada.org/html/publications/dlh/housing.html. 2 Universal Design Standards, West Virginia Housing Development Fund. https://tinyurl.com/yx63h792 PP 22-0005 ATTACHMENT 1/PAGE 20 OF 103 Lake Oswego Housing Production Strategy | 18 • Incentives must be calibrated effectively to be attractive to both a nonprofit and for-profit developer. The benefit of using the incentive should outweigh the costs associated with implementing accessible design features. • A more general strategy to utilize zoning bonuses was not recommended for inclusion in the HPS due to concerns expressed during project outreach that additional floor area, height, or lot coverage could conflict with existing neighborhood character. Zoning bonuses to incent accessible units may be met with similar opposition. Anticipated Impact • Housing Need Addressed: Housing for people with physical disabilities and mobility challenges. The HNA indicates that an estimated 8% of the population of Lake Oswego, or 3,140 people, report having some form of disability, including 2.9% with an ambulatory disability. However, the number of people that would benefit from physical accessibility in housing – especially amongst the senior population – likely exceeds these numbers. Also, housing stakeholders identified this as a notable gap in the local housing market. • Population served: Seniors; people with disabilities • Income level: All income levels • Benefits and Burdens: This strategy is anticipated to benefit seniors and people with disabilities by increasing the stock of accessible housing units in the city. However, a potential trade-off of mandating accessibility features— especially for subsidized housing—is that it would reduce the total number of units that could be provided in a building (because bathrooms and other areas would need to be larger). While this may provide more accessible units, it could make some affordable housing projects less feasible. This could be a potential burden on low-income households by limiting the opportunity for production of housing they can afford. Incentive-based strategies would not carry the same burden. This will be an important consideration for implementation. • Housing tenure: For rent or sale • Magnitude: Moderate – Depending on how the strategy is structured, it could lead to production of a significant number of new units with accessibility features. However, the strategy could also have the effect of deterring housing production if requirements are too onerous. To improve feasibility, requirements may be applied to some but not all of the units in new multi-family development. New elevator requirements may significantly deter new development, due to high cost. Time Frame Implementation: Begin and Complete in Medium Term Impact: The action can begin to have impact after it is implemented in the CDC or adopted as a financial incentive. The impact on housing production is expected to be longer-term. Implementation Actions • Potentially seek a technical assistance grant from AARP or other sources to support implementation efforts. • Code bonus. PP 22-0005 ATTACHMENT 1/PAGE 21 OF 103 Lake Oswego Housing Production Strategy | 19 o Evaluate a potential new height/FAR bonus with input from housing stakeholders and community members to determine whether—and how—it should be implemented. o A potential accessibility bonus should be carefully considered in conjunction with any other potential incentives for accessible housing (see Strategy 5). o Consult with developers and housing providers to determine their level of interest. o Work with Lake Oswego’s Planning Commission and City Council to consider potential code approaches, and if directed, to adopt code amendments. o City Council Action (if directed): Legislative CDC text amendments. • Code requirement. o Evaluate potential new accessibility requirements, working closely with non-profit and market-rate housing developers to understand how their projects might be impacted. o Conduct a pro forma analysis to evaluate potential impacts to project costs. o Implement via CDC updates, if directed. • Financial incentive. o Evaluate an incentive program (e.g., MUPTE, Strategy 5) to increase the number of dwelling units designed accessibly. o Work with developers to gather feedback on program parameters and interest. o Implement incentive program through Council action, if directed. Lead & Partners Lead: Lake Oswego Community Development Partners: Home Building Association of Greater Portland; Fair Housing Council of Oregon; AARP; non-profit and for-profit housing developers. 5. Multiple Unit Property Tax Exemption (MUPTE) Description This tax exemption can be used to encourage multi-family or middle housing with particular features or at particular price points by offering qualifying developments a partial property tax exemption for 10 years (or longer, for housing subject to affordability agreements). It can be offered to new development or existing housing that is converted to meet the eligibility criteria. MUPTE is a flexible tax abatement that can be used in various ways to encourage needed housing. The City has broad discretion as to how to structure the program. Eligibility criteria could include requirements for affordability, accessibility/universal design, unit size, or other desirable features. PP 22-0005 ATTACHMENT 1/PAGE 22 OF 103 Lake Oswego Housing Production Strategy | 20 The City must designate specific areas where the MUPTE applies, unless including affordability as a criterion, in which case the whole city could be eligible. (Authorized by ORS 307.600-637) Recommendation Evaluate adoption of the MUPTE program with criteria that would make it available to housing with either accessible design (see Strategy 4) or moderate- income units affordable at 80-120% AMI. Considerations Applicable to all tax exemption programs: • Tax exemptions apply only to the tax levy of a governing body that adopts the exemptions. In order for the full property tax to be exempted, the City must seek approval from partner jurisdictions that, together with the City, make up at least 51% of the overall tax levy. Lake Oswego would need to secure agreement from either the School District or County or both. • The City and participating taxing districts will lose property tax income for the duration of any tax exemption, reducing revenue for City services and revenue for participating taxing districts. Such taxing districts may express resistance to new tax abatement or exemption programs that involve reduced revenue, particularly for programs intended to produce market-rate housing. Applicable to the MUPTE under consideration: • The City should consider what income criteria would best fill the gaps in the local housing market. If the program targets rent levels for households earning up to 120% AMI, developers may be able to charge market-rate rents, which may not be more affordable than they would otherwise charge. A lower income target such as 100% AMI may be more effective at achieving lower-cost units. The local rental market and household income levels should be carefully evaluated as part of the City’s analysis of this program. Anticipated Impact • Housing Need Addressed: This strategy has the potential to increase development of multi-family housing in targeted areas of the city. Stakeholders in the HPS process identified a particular need for more multi- family housing outside the Town Center. Targeting the program to accessible units would help meet the needs of seniors and people with disabilities (see Strategy 4 for estimates of total need). Targeting the program to households earning 80-120% AMI would help meet the needs of moderate-income households. The HNA indicates that 16% of new needed housing units over the next 20 years will be needed by those earning 80-120% AMI. • Population served: Moderate-income households, seniors, and people with disabilities. • Income level: Depends on how the program is structured. • Benefits and Burdens: This strategy has the potential to benefit various priority populations by encouraging housing needed by those communities (accessible units, moderate-cost units, etc.). The City could also target a MUPTE program to specific geographies to target housing development in PP 22-0005 ATTACHMENT 1/PAGE 23 OF 103 Lake Oswego Housing Production Strategy | 21 neighborhoods where it is most needed. A challenge for the City will be to determine how best to balance those various needs to determine what housing types or features are most appropriate to include as criteria for the MUPTE abatement. This should be considered in the broader context of the HPS to ensure that the City’s actions benefit all priority populations in equitable ways. No burdens on priority populations are anticipated for this strategy, provided it is implemented in the ways described above. • Housing tenure: Typically for-rent. • Magnitude: Moderate – This strategy could encourage production of more multi-family units that meet housing needs not currently being met by the private market. As noted above, to make this program effective at encouraging lower-cost units, the City should carefully consider what income criteria would best fill the gaps in the local housing market. Time Frame Implementation: Begin and Complete in Medium Term Impact: The MUPTE can be used once it is adopted, and for as long as the City offers the exemption. The impact on housing supply is expected to be longer- term. Implementation Actions • Further evaluate the various options for structuring the MUPTE program to determine whether—and how—it should be implemented. • Consult with developers and housing providers to determine their level of interest. • Determine desired eligibility criteria (e.g., affordability, accessibility, etc.). • Seek input from overlapping taxing districts on their willingness to support the exemption. • City Council Action: Adopt tax exemption program by resolution or ordinance. Lead & Partners Lead: Lake Oswego Community Development Partners: Lake Oswego Finance Department; overlapping taxing jurisdictions 6. Pre-approved plan sets for ADUs Description Pre-approved (or permit-ready) plan sets have been reviewed in advance for conformance with zoning and building codes. Permit-ready plan sets can reduce housing development costs by reducing design and permit process times and fees. This strategy could be used to encourage more development of accessory dwelling units (ADUs). Permit-ready plans can reduce costs in three main ways: • Streamlining permit processes – Permitting times are frequently cited by market-rate builders as a major barrier to housing production, as delays in permitting often translate into increased costs. PP 22-0005 ATTACHMENT 1/PAGE 24 OF 103 Lake Oswego Housing Production Strategy | 22 • Reducing permit fees – The Building Department may decrease permit review charges for applicants because of the simplified review. • Reducing design fees – The builder would pay less in professional services to architects, etc. ADUs are a type of housing located on the same lot (and sometimes in the same structure) as a primary dwelling unit. They are generally smaller in size compared to the primary home and come in a number of different configurations. In Lake Oswego, there may be one ADU per primary home. ADUs offer opportunities for multigenerational living, with family members living on the same site but in a separate dwelling. ADUs can also be rented out, allowing the homeowners to supplement their income. Considerations • This strategy potentially lowers site and building design costs, which could lead to an increase in new ADU units and increase rental stock. • There are upfront costs associated with developing the pre-approved plans, including paying design fees for architects that develop the base plans, and dedicating staff time for working with the architects and reviewing the plans. • The City could partner with a university, design institution, or develop a competition to produce plans. For example, the City of Eugene has partnered with several design firms to offer low-cost ADU plans, each of which is available for only $500. Eugene also offers a free ADU plan developed in-house.3 • ADUs are a good candidate for this type of program due to their small size and relative simplicity. Also, homeowners wanting to build an ADU may be especially interested in pre-made designs, as compared to experienced homebuilders. Anticipated Impact • Housing Need Addressed: Increased housing choices within existing neighborhoods. Increased rental opportunities. Options for multigenerational housing. Opportunities for aging in place. Many of these were mentioned by stakeholders in the HPS process as a gap in the local market. • Population served: Moderate to higher-income households; seniors; people with disabilities; multigenerational households; renters • Income level: Likely 80% AMI and above • Benefits and Burdens: ADUs are a popular choice for elders who wish to live on the same property as their children/grandchildren (ADUs are sometimes referred to as “granny flats”). As such, this strategy can offer benefits to seniors and multigenerational households. Because ADUs are often single- level, small homes, they may also benefit people with disabilities – with the potential added benefit of enabling family to live nearby for assistance and support. No burdens on priority populations are anticipated. 3 City of Eugene. Pre-Approved Accessory Dwelling Unit Program. https://www.eugene-or.gov/4707/Pre- Approved-Accessory-Dwelling-Unit-Pro PP 22-0005 ATTACHMENT 1/PAGE 25 OF 103 Lake Oswego Housing Production Strategy | 23 • Housing tenure: For rent • Magnitude: Moderate – This strategy would likely lead to more development of ADUs in the city. Pre-approved plans can lower the logistical barriers for prospective ADU builders, and can be paired with a faster, cheaper permitting process. This could increase the number of available rental properties and increase housing choices in existing developed neighborhoods. However, the strategy would have a limited impact on overall housing supply. Time Frame Implementation: Begin in Medium Term; Complete in Longer Term. Could potentially be implemented sooner if the City can use pre-approved plans that are already developed – e.g., for another jurisdiction. Impact: The action is expected to have impact over the longer term. Implementation Actions • Develop ADU plans in collaboration with one of the partners listed below. • Work with the Building Department to ensure plans meet all City Code standards, approve the plans, and adopt reduced fees for the plans. • Work with the Building Department to implement a streamlined review process. Lead & Partners Lead: Lake Oswego Community Development (including Building Department) Partners: Universities, design institutions, and/or design firms 7. Modify System Development Charge (SDC) fee schedule Description SDCs are one-time charges assessed on new development to pay for the costs of expanding public facilities to serve new development. The City of Lake Oswego charges SDCs for water, sewer, parks, and transportation (affordable housing meeting certain criteria is eligible for an exemption to SDCs). The Lake Oswego School District also charges a construction excise tax (effectively an SDC) for new construction in the city (except for affordable housing). This strategy involves updating the City’s SDC fee schedule so it is tied more directly to dwelling size. Currently, the City charges the same rates for all single- family homes regardless of size. Each unit of a duplex is also charged the same single-family fee. Multi-family housing (3 or more units) is charged a lesser fee per unit.4 While cottage clusters are currently charged the single-family rate for each unit, the City is planning to update the SDC fee schedule in the near term so that cottage clusters are charged a lower rate per unit. Scaling SDC fees to dwelling size would better match a development’s charges to its actual cost or impact on the system. Smaller housing units, including some middle housing types, typically have less impact on water, sewer, or transportation facilities, given the reduced average size and occupancy of these units. This is not fully reflected in Lake Oswego’s current SDC schedule, although the current schedule does include lower fees for multi-family housing units. 4 Lake Oswego Master Fees and Charges, 2024. https://www.ci.oswego.or.us/finance/master-fees-and-charges PP 22-0005 ATTACHMENT 1/PAGE 26 OF 103 Lake Oswego Housing Production Strategy | 24 The City could consider charging fees on a per-square-foot basis, rather than per-unit.5 Considerations • This strategy would reduce barriers to construction of more affordable, smaller-scale homes, including small single-family homes and middle housing. • The City sets its SDC fee schedule based on projected needs for system construction and improvements. Modifying the SDC methodology would likely increase fees for larger homes to make up for the reduced fees for smaller units. • As part of the current Parks Plan 2040 update project (completion expected in 2025), the City will consider modifying its Parks SDCs to be scaled by housing unit size. That could provide a jumping off point and a model for a larger discussion about SDC schedules and potential future refinements to SDCs for other services. Anticipated Impact • Housing need addressed: This strategy will facilitate development of smaller, more attainable housing units that may be affordable to moderate- income and smaller households. The HNA indicates that 16% of new needed housing units over the next 20 years will be needed by those earning 80- 120% AMI. • Population served: Moderate to higher income households; first-time homebuyers; single or two-person households; seniors • Income level: 80% AMI and above • Benefits and Burdens: This strategy can increase production of smaller and lower-cost units which may benefit lower-income households, but is more likely to benefit moderate- or higher-income households. Smaller unit sizes may be of particular benefit to seniors due to lower maintenance and lower housing costs. No burdens on priority populations are anticipated. However, reducing SDCs for smaller units would likely need to be offset by increased SDCs for larger units, the cost of which would be passed onto homebuyers. It is anticipated that homebuyers that can afford larger units would be less impacted by the increased cost than moderate to lower income homebuyers. • Housing tenure: For rent or sale • Magnitude: Low to Moderate – Given current SDC incentives already available, this tool may have a low to moderate impact in incentivizing additional housing units. It may incentivize some projects to produce a greater number of marginally smaller units, thus increasing density and unit production somewhat. 5 For example, the City of Newport, Oregon charges SDCs on a per-square-foot basis for single-unit dwellings. https://newportoregon.gov/dept/cdd/documents/FYE24SDCRates.pdf. The City of Albany, Oregon scales its sewer and streets SDCs for single-unit dwellings by dwelling size, with thresholds at 1,000 sq ft, 1,250 sq ft, and 3,000 sq ft. https://albanyoregon.gov/images/stories/cd/devcenter/fee_guide_city_of_albany_oregon.pdf. PP 22-0005 ATTACHMENT 1/PAGE 27 OF 103 Lake Oswego Housing Production Strategy | 25 Time Frame Implementation: Cottage cluster SDCs: Complete in Near Term. Overall SDC methodology: Begin and Complete in Longer Term. Impact: The process of modifying a city’s SDC methodology can be lengthy, as it is necessary to analyze projected needs for system construction and improvements and ensure that SDC revenues will be adequate to meet projected needs. Once a new SDC schedule is implemented, the impact to housing development is expected to be longer-term. Implementation Actions • Adopt SDC rates adjustments for cottage clusters, working with City Council and other City departments. • Work with City Council, other departments (Public Works, Finance, Parks, etc.), and development stakeholders on policy discussions around modifying the SDCs. • Potentially work with a consultant to develop an updated SDC methodology. • City Council action: Adopt modified SDC schedule by resolution or ordinance. Lead & Partners Lead: Lake Oswego Engineering Partners: Development stakeholders STRATEGIES TO SUPPORT AFFORDABLE HOUSING FOR LOWER-INCOME HOUSEHOLDS The strategies below are intended to facilitate development of regulated affordable housing (i.e., government- subsidized housing) that meets the needs of low- and moderate-income households. The HPS indicates that over a quarter of new housing units needed by 2043 will be needed by lower-income households earning 80% or less of the area median income. 8. Nonprofit Low-Income Housing Tax Exemption Description This tax exemption benefits low-income residents by alleviating the property tax burden on those organizations that provide this housing opportunity. In particular, this strategy reduces ongoing operations costs and supports long- term stability for affordable housing developments. Eligible properties must be offered to low-income persons (at or below 60% AMI for the initial year, and at or below 80% AMI for subsequent years), or held for the purpose of developing low-income rental housing. The housing may be for rent or for purchase, and could be new development or existing housing acquired by a nonprofit for the purpose of converting it to income-restricted affordable housing. Jurisdictions may adopt additional eligibility criteria for the exemption, provided they don’t conflict with state statutes. Applicants must renew their tax exemption applications annually. As long as the housing remains affordable to low-income residents, there is no time limit to the tax exemption. (Authorized by ORS 307.540-548) PP 22-0005 ATTACHMENT 1/PAGE 28 OF 103 Lake Oswego Housing Production Strategy | 26 Lake Oswego City Council chose to fast-track adoption of this strategy to make it available to affordable housing projects being developed in 2024 (including the Mercy Greenbrae development at Marylhurst Commons). The tax exemption was approved by City Council as Ordinance 2945 in May 2024.6 Considerations • By reducing operating income, property tax abatement programs can be a powerful tool to increase the feasibility of low-income housing, and perhaps increase the number of units that are feasible in planned projects. Many affordable housing developers cite abatements such as the Nonprofit Housing exemption as an essential tool in helping make projects financially feasible. • See Strategy 5, MUPTE, for considerations related to all tax exemption programs. Anticipated Impact • Housing need addressed: Government-subsidized affordable housing for low-income households. • Population served: Low-income households • Income level: 0-60% AMI (for residents’ initial year of tenancy; after the first year, up to 80% AMI) • Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support production of subsidized affordable housing. No burdens on priority populations are anticipated. • Housing tenure: For rent • Magnitude: High – This abatement can have a large impact on making low- income affordable housing more feasible to develop. The open-ended nature of the abatement (as long as the project maintains affordability) can offer very significant savings to the property manager over time and increase the viability of offering affordable rents indefinitely. The property tax level in Lake Oswego is roughly $20,000 per $1M in valuation per year. A mid- to large apartment complex could expect a valuation of many millions of dollars, amounting to potentially hundreds of thousands in taxes per year. An abatement of these taxes is a strong incentive and improves feasibility considerably. Time Frame Implementation: Already Complete Impact: The tax exemption can be used once it is adopted, and for as long as the City offers the exemption. The impact on supply of affordable housing is expected to be longer-term. Implementation Actions City Council action: Adopt tax exemption program by ordinance. (Already completed.) Lead & Partners Lead: Lake Oswego Community Development Partners: Lake Oswego Finance Department; overlapping taxing jurisdictions 6 https://www.ci.oswego.or.us/planning/pp-24-0003-nonprofit-corporation-low-income-housing-tax-exemption PP 22-0005 ATTACHMENT 1/PAGE 29 OF 103 Lake Oswego Housing Production Strategy | 27 9. Low-Income Rental Housing Tax Exemption Description This is a 20-year tax exemption for any entity that provides income-restricted rental housing, including nonprofits and for-profit developers. Eligible properties must be offered for rent to low-income persons or held for the purpose of developing low- income rental housing. Jurisdictions may adopt additional eligibility criteria for the exemption, provided they don’t conflict with state statutes. (Authorized by ORS 307.515-537) Comparison of low-income housing tax exemption programs: While these two exemption programs appear similar, they do have some key distinctions. Nonprofit Low-Income Housing Low-Income Rental Housing Housing Type Rental housing Rental housing Income Levels Up to 60% AMI Up to 60% AMI Eligible Developers Nonprofits only Nonprofit or for-profit New vs. Acquired Housing New construction or acquisition of existing housing New construction only Annual Renewal Required? Yes No Time Limit No limit 20 years Recommendation Consider supplementing the adopted Nonprofit Low-Income Housing Tax Exemption with this additional exemption program to offer more options and flexibility. Considerations • Key advantages of this abatement are that it is available to more than just non- profits and it does not require annual renewal. This can significantly reduce an organization’s administrative burden in implementing the exemption. • However, this abatement has less flexibility compared to the Nonprofit Exemption because it cannot be used for acquisition of existing housing and is limited to 20 years. • See Strategy 5, MUPTE, for considerations related to all tax exemption programs. Anticipated Impact • Housing need addressed: Government-subsidized affordable housing for low- income households. • Population served: Low-income households • Income level: 0-60% AMI (for residents’ initial year of tenancy; after the first year, up to 80% AMI) • Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support production of subsidized affordable housing. No burdens on priority populations are anticipated. PP 22-0005 ATTACHMENT 1/PAGE 30 OF 103 Lake Oswego Housing Production Strategy | 28 • Housing tenure: For rent • Magnitude: High – Like the Nonprofit Exemption, this abatement can have a large impact on new affordable housing production. As noted above, an abatement of property taxes is a strong incentive and improves feasibility considerably. This abatement is available to for-profit developers and therefore may generate more new housing than the Non-Profit Exemption. While not open-ended, a 20-year exemption matches the period in which a property would otherwise undergo significant depreciation. However, at the end of the 20-year period, this housing often reverts to market-rate status. Time Frame Implementation: Begin and Complete in Near Term Impact: The tax exemption can be used once it is adopted, and for as long as the City offers the exemption. The impact on supply of affordable housing is expected to be longer-term. Implementation Actions • Work with other taxing jurisdictions to gain approval. • Develop application standards and guidelines. • City Council action: Adopt tax exemption policy by resolution or ordinance. Lead & Partners Lead: Lake Oswego Community Development Partners: Lake Oswego Finance Department; overlapping taxing jurisdictions 10. Public-private partnerships for affordable housing Description Public-private partnerships (PPPs) are arrangements between public and private entities to develop housing, especially affordable housing. PPPs have the capacity to bring resources to the table that would otherwise not be available if each institution were to provide housing on its own. The City could partner with organizations to support their affordable housing efforts in a variety of ways: • Acquire land and/or donate city-owned land; • Provide grants or low-interest loans for specific development or rehabilitation projects; • Provide direct funding; and/or • Leverage federal, state, and regional resources. Additionally, the City can pursue specific types of PPPs such as: • Partnering to convert underutilized non-residential properties into housing. The City could work with landowners to evaluate opportunities for adapting vacant/underused buildings for new housing or mixed-use development. • Utilizing surplus land owned by faith-based organizations for affordable housing. The City could work with faith organizations to utilize their excess land for affordable housing. Recommendations The following specific partnership actions are recommended for implementation: PP 22-0005 ATTACHMENT 1/PAGE 31 OF 103 Lake Oswego Housing Production Strategy | 29 • Consider donating surplus city-owned land for affordable housing as it becomes available. • Work with faith organizations to utilize excess or underutilized land for affordable housing. Assist with favorable zoning, permitting, and financial incentives. • Continue to leverage federal, state, and regional resources – such as the Metro Affordable Housing Bond – to fund affordable housing in Lake Oswego. • If a new TIF district is established (Strategy 11), use TIF funds to support affordable housing partnerships. This could include addressing infrastructure deficiencies or contributing funding to affordable housing more directly. Considerations • The City is pursuing this strategy with several ongoing projects. This includes partnering with the Sisters of Holy Names of Jesus and Mary and Mercy Housing NW in facilitating the Mercy Greenbrae at Marylhurst Commons affordable housing development. • PPPs are often opportunity-driven and may be spearheaded by the City or by private developers or partner agencies. • Cities are often asked to provide land, financial assistance, and/or technical assistance, with potentially moderate costs. More significant financial assistance would depend on a new funding source. Anticipated Impact • Housing Need Addressed: Government-subsidized affordable housing for low- income households. • Population served: Low-income households • Income level: 0-80% AMI • Benefits and Burdens: This strategy is intended to benefit low-income households by increasing the City’s involvement in development of affordable housing. No burdens on priority populations are anticipated for this strategy. • Housing tenure: For rent or sale • Magnitude: High – Partnerships with private developers or non-profit housing agencies are very often a key component of a City contributing to new housing production. Few City governments directly build housing. The incentives and funding offered are aimed at these partners, who undertake the projects often with a development agreement to ensure the public goals are met. The magnitude of impact is high, and in a sense these partnerships are necessary for most successful City-based housing initiatives. Time Frame Implementation: Begin in Near Term; Ongoing implementation Impact: Timing of impact depends on the nature of the public/private partnership. Given availability of funds, impact to housing production would be expected to occur over the longer term. Implementation Actions • Work with nonprofit, faith-based, or other organizations to discuss opportunities in Lake Oswego. • Take action on partnership models and programs that best benefit the organization and the City’s financial and/or administrative capacity. PP 22-0005 ATTACHMENT 1/PAGE 32 OF 103 Lake Oswego Housing Production Strategy | 30 • Partnership activities depend on the project, organization, and available resources. Lead & Partners Lead: Lake Oswego Community Development Partners: Possibilities include landowners and organizations with excess land, as well as nonprofit affordable housing providers. 11. Use Tax Increment Financing (TIF) to support affordable housing development Description This strategy involves using TIF funds to support affordable housing development. This could involve creating one or more new TIF districts and incorporating affordable housing into new TIF district plans. For example, the City could create a TIF set-aside for affordable housing development programs within the district. TIF is a funding mechanism in which future tax revenues in targeted development or redevelopment areas (TIF districts / urban renewal areas) are diverted to finance infrastructure improvements and/or development. At the time of adoption, the tax revenue flowing to each taxing jurisdiction from the TIF district is frozen at its current level. Any growth in tax revenues in future years, due to annual tax increase plus new development, is the “tax increment” that goes to the district itself to fund projects in that area. TIF is a good tool to use in areas where new development or redevelopment is anticipated. While many different types of projects are eligible for TIF funds, for the most part, TIF funds are used to pay for physical improvements in the district itself. These projects can include participating in public/private partnerships with developers—including for affordable, workforce, or market-rate housing—or can be used to complete off-site public improvements that benefit and encourage new development in the area, or to acquire key sites. TIF funds also can be used to purchase land. TIF can be a direct source of funding for projects that meet public goals such as providing affordable housing, increased density, or mixed-use buildings that might not otherwise be feasible. In return for some public funding through TIF, private sector or non-profit developers agree to provide these benefits. Urban Renewal can also be used to purchase and reserve a key building site in the district to ensure that the development that takes place there meets public goals. The site can be offered to a development partner at reduced cost to provide the incentive. Recommendation Incorporate affordable housing into the Urban Renewal Plan for the Foothills Neighborhood. The Lake Oswego Redevelopment Agency (LORA) is currently planning to update the Foothills Refinement Plan, after which a new urban renewal district will be established. The City must include affordable housing as an approved “project” in the Urban Renewal Plan in order for it to be eligible for TIF funding. Considerations • TIF results in foregone tax revenue for the City and any other overlapping taxing districts for several decades, although it can (and should) grow the tax base in the long-term by supporting development that would not otherwise have occurred. PP 22-0005 ATTACHMENT 1/PAGE 33 OF 103 Lake Oswego Housing Production Strategy | 31 • Once a new TIF district is established, it will likely be several years before there will be sufficient revenue in the district to make significant investment in housing. • Coordination and agreement with other taxing districts is also important. Anticipated Impact • Housing Need Addressed: Government-subsidized affordable housing. • Population served: Low-income households • Income level: 0-80% AMI • Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support production of subsidized affordable housing. An intended outcome of urban renewal is increased property values and redevelopment within the district. If not balanced by adequate investment in housing production, urban renewal can lead to displacement of existing residents facing increased property taxes and development pressures. This can be a burden on existing low-income residents and should be considered carefully when designating new TIF districts. • Housing tenure: For rent or sale • Magnitude: High – An extended TIF district or new programs focused on housing have the potential to have a large impact on specific new projects with LORA partners. The impact of an expanded TIF program on housing production will depend on the revenue-generating potential of the district in question and the prioritization of housing projects among the broader range of projects eligible for urban renewal funding (e.g., general infrastructure projects, beautification, economic development, etc.). If housing is prioritized for funding, and development opportunities are available within the district, it can directly bring about housing production. Time Frame Implementation: Begin in Near Term; Complete in Longer Term Impact: Analysis and planning for a new TIF district can take several years. Once a TIF district is established, it is expected to take several more years before adequate revenues are accrued to begin spending the urban renewal funds. The impact on housing production is expected over the medium or longer term. Implementation Actions • Incorporate affordable housing policies in the update to the Foothills Refinement Plan. • Incorporate affordable housing into the Foothills Urban Renewal Plan. Include affordable housing as an approved “project” in the plan and consider a dedicated set-aside to use TIF funds for affordable housing. • City Council to adopt URA boundaries and plan via ordinance. • Use TIF funds to support partnerships with affordable housing producers (Strategy 10). Lead & Partners Lead: Lake Oswego Redevelopment Agency Partners: Community Development Department, Development stakeholders PP 22-0005 ATTACHMENT 1/PAGE 34 OF 103 Lake Oswego Housing Production Strategy | 32 12. Affordable housing preservation inventory Description This strategy involves preparing an inventory of subsidized and naturally occurring affordable housing to support proactive policies intended to preserve the affordable housing stock. The inventory would be used to target potential properties for implementation of an affordable housing preservation strategy. Considerations • This strategy could help offset some of the need for costly new construction. • The strategy would be a good starting point if the City were to consider future strategies to preserve affordable housing. Understanding the city’s stock of affordable housing could influence decision-making and prioritization for a preservation strategy. • The strategy would require staff time and resources to implement. Anticipated Impact • Housing Need Addressed: Housing for low-income residents. • Population served: Low-income households • Income level: 0-80% AMI • Benefits and Burdens: This strategy is expected to benefit low-income residents by evaluating the city’s stock of naturally occurring affordable housing, in support of a low-cost housing preservation strategy. No burdens on priority populations are anticipated. • Housing tenure: For sale or rent • Magnitude: Low – This strategy will not contribute to new housing production, but it will contribute to the preservation of existing affordable housing, and aids in tracking performance metrics. Time Frame Implementation: Begin and Complete in Medium Term Impact: This strategy can provide information and influence decision-making about housing preservation in the shorter term. However, impacts to the city’s housing inventory are expected to be longer term. Implementation Actions • Use Census data as a starting point. • Work with property owners to document housing costs. • Update inventory on a regular basis. Lead & Partners Lead: Lake Oswego Community Development Partners: Property owners PP 22-0005 ATTACHMENT 1/PAGE 35 OF 103 Lake Oswego Housing Production Strategy | 33 OTHER The strategy in this category does not fit easily under the other headings, but supports equitable implementation of all recommended housing strategies. 13. Fair Housing policy and education Description This strategy involves amending the Comprehensive Plan to explicitly make Affirmatively Furthering Fair Housing a Housing Policy. Fair Housing laws protect individuals in “protected classes” from housing discrimination. Protected classes in Oregon include race, color, national origin, religion, disability, sex (includes pregnancy), sexual orientation, gender identity, age, and marital status. The City could add additional protected classes, such as ancestry, ethnicity, or occupation. The City could also pursue the following types of actions to affirmatively further fair housing and work to reverse historical patterns of discrimination and exclusion in Lake Oswego: • Create an Analysis of Impediments to Fair Housing. • Conduct fair housing training for Council, Planning Commission, and other relevant policymakers. • Provide residents, property owners, property managers, realtors, lenders, and others involved with real estate transactions with access to fair housing information and referrals. • Ensure that City staff know how to identify potential fair housing violations and make referrals to the Fair Housing Council of Oregon and state and local enforcement agencies. In addition, other strategies identified in this list can also generally serve the purpose of affirmatively furthering fair housing to the extent they expand housing opportunities or choices for people in protected classes. Considerations • This strategy would not necessarily contribute to housing production except when it is implemented through other strategies described in this document that result in housing production. However, in all cases it would demonstrate the City’s commitment to working towards fair housing outcomes. • Training and education would require staff time and resources to implement. Anticipated Impact • Housing Need Addressed: This strategy would not directly address identified housing needs in most cases, but it would help prevent housing discrimination against protected classes. • Population served: Protected classes • Income level: All income levels • Benefits and Burdens: This strategy is intended to benefit priority populations by formalizing the City’s commitment to fair housing goals, better understanding fair housing issues in the community, and by educating PP 22-0005 ATTACHMENT 1/PAGE 36 OF 103 Lake Oswego Housing Production Strategy | 34 City staff, housing stakeholders, and community members about fair housing laws and residents’ rights. No burdens on priority populations are anticipated. • Housing tenure: For sale or rent • Magnitude: Low – Fair housing policy and education will not directly contribute to housing production, but it could provide additional protections against housing discrimination. It could also bolster the City’s focus on prioritizing housing equity and affordability in its housing programs and investments. Time Frame Implementation: Near Term (Fair Housing Policy); Medium Term (other actions) Impact: Impact on community understanding of fair housing can be in the short term. Impact on fair housing outcomes is expected to be longer term. Implementation Actions • Policy adoption requires Legislative Comprehensive Plan text amendment. • Partner with organizations such as the Fair Housing Council of Oregon on training. • Develop informational materials. • Provide training to current staff and new hires. Lead & Partners Lead: Lake Oswego Community Development Partners: Fair Housing Council of Oregon Rendering of proposed Hacienda CDC affordable housing development in Lake Oswego PP 22-0005 ATTACHMENT 1/PAGE 37 OF 103 Lake Oswego Housing Production Strategy | 35 ACHIEVING FAIR AND EQUITABLE HOUSING OUTCOMES This section summarizes how the housing strategies detailed in this report will help achieve fair and equitable housing outcomes. As required by OAR 660-008, all the strategies have been evaluated for achieving the different outcomes identified below. In addition, the City of Lake Oswego is already carrying out a range of housing measures that support fair and equitable outcomes, as summarized in the Contextualized Housing Needs Assessment (Appendix A). Those existing measures are also identified below. Affordable Homeownership and Affordable Rental Housing Many of the strategies included in the HPS support production of affordable rental housing and the opportunity for wealth creation via homeownership—especially for low- and moderate-income households that have been disproportionately impacted by past housing policies. As described in the Contextualized Housing Needs Assessment (Appendix A), many racial and ethnic minorities statewide are less likely to own the homes they occupy – meaning that they tend to occupy rental units. These communities face systemic obstacles to home ownership, including lower generational wealth, less access to capital and financing, and a history of discrimination in lending and geography (e.g., redlining). The legacy of these barriers continues to hamper home ownership for many minority households. Prioritizing affordable home ownership can begin to address these patterns of exclusion. Also, by benefiting low-income households more broadly, these strategies are anticipated to benefit populations with lower median household incomes — including certain racial and ethnic groups. Strategies that address these needs include: 5. Multiple Unit Property Tax Exemption – Provided the City includes income as an eligibility criterion. 8. Nonprofit Low-Income Housing Tax Exemption 9. Low-Income Housing Tax Exemption 10. Public-private partnerships for affordable housing 11. Use Tax Increment Financing (TIF) to support affordable housing development 12. Affordable housing preservation inventory Existing Measures: • Height/density bonus for affordable developments: Such bonuses are allowed within limited areas. PP 22-0005 ATTACHMENT 1/PAGE 38 OF 103 Lake Oswego Housing Production Strategy | 36 • Mandatory affordable housing in limited areas. • Expedited permitting for affordable housing. • Waived SDC fees for affordable housing. • Surplus City-owned land/land banking for affordable housing. • Utilizing surplus or underutilized land owned by faith-based organization for housing. By implementing these affordable housing strategies, Lake Oswego can work to ensure equitable outcomes for people with lower incomes. To further prioritize benefits for communities of color, the City can:  Partner with culturally specific organizations or other organizations that often work with certain groups (e.g., faith-based organizations).  Target programs to certain city areas with higher proportions of people of color (e.g., tax abatements within certain neighborhoods).  Use equitable engagement strategies to reach diverse communities. Gentrification, Displacement, and Housing Stability Many of the actions included in this HPS increase housing stability for residents and mitigate the impacts of gentrification and displacement. The strategies listed above promote the development of affordable rental and ownership housing and when targeted to areas that are experiencing – or may experience – gentrification, can help to counteract displacement. Strategy 1, Code Audit and Amendments, can also help by identifying the housing types most needed, removing code and procedural barriers, and incorporating new state laws intended to enable local housing development. Strategies that work toward preservation of existing low-cost housing, such as Strategy 12 Affordable Housing Preservation Inventory, can also help prevent displacement. However, the City would also need to focus other efforts – such as public-private partnerships – towards preservation of existing housing. It should be noted that some strategies have the potential to increase risks of displacement by enabling denser or more intensive development in existing residential areas, which could increase redevelopment pressures and in turn may drive up the value and cost of existing housing to some degree. This could include Strategy 1 Code Audit and Amendments, Strategy 3 Rezone Land, and Strategy 11 Tax Increment Financing. These strategies can benefit lower-income populations by supporting development of affordable housing, or more attainable housing types, in areas of higher opportunity and access to services. However, as part of implementing strategies that rezone properties or increase allowed development intensity, the City will need to assess potential displacement risks and ensure that these strategies are paired with the anti-displacement strategies listed above, which should be specifically targeted at the residents affected by zoning or code changes or increased investments. Housing Choice The following strategies will facilitate access to housing choice for communities of color, low-income communities, people with disabilities, and other state and federal protected classes: 1. Code audit and amendments – Remove barriers to development of needed housing types, such as multifamily housing, smaller units, ADUs, and middle housing. 2. Remove or reduce minimum parking requirements – Reduce parking mandates as a barrier to housing development, especially multifamily housing. PP 22-0005 ATTACHMENT 1/PAGE 39 OF 103 Lake Oswego Housing Production Strategy | 37 4. Evaluate accessible design incentives or mandates – Use requirements or incentives to encourage housing that is accessible to people with disabilities. 5. Multiple Unit Property Tax Exemption (MUPTE) – Target tax abatements to encourage accessible units and/or moderate-cost units. 6. Pre-approved plan sets for ADUs – Facilitate ADU development through faster and less costly permitting. 7. Modify System Development (SDC) fee schedule – Encourage smaller housing units by scaling SDCs by unit size. Existing measures: • Increased code flexibility for accessory dwelling units. • Short-term rental regulations. • Waived SDC fees for ADUs. • Lot coverage bonus for housing within limited areas. A potential trade-off of potential accessibility mandates in Strategy 4—especially for subsidized housing—is that it could limit the number of units produced or prevent some projects from being developed. This is an important consideration for implementation. Strategy 5, MUPTE, could help offset these concerns by offering a tax incentive for projects that include accessible units. The strategies listed above that promote more attainable homeownership opportunities (smaller units, middle housing, condos) have the potential to benefit communities that have been disproportionately impacted by past housing policies, especially communities of color. These strategies encourage a broader range of housing choices that are more attainable for moderate-income households than typical single-detached housing. Location of Housing The strategies listed below can encourage housing in compact, mixed-use neighborhoods, helping to reduce greenhouse gas emissions and increasing opportunities to live in neighborhoods near needed services and amenities. 1. Code audit and amendments – Remove barriers to multifamily housing and residential development within mixed-use districts. 2. Remove or reduce minimum parking requirements – Reduce parking mandates as a barrier to denser housing. 3. Rezone land – Rezone land in areas that are near existing higher-density or commercial areas, or other amenities, such as parks and schools, and that have good access to transit and services. 5. Multiple Unit Property Exemption (MUPTE) – Incentivize multi-unit housing in targeted areas. 11. Use TIF to support affordable housing – Support housing development in a new urban renewal district for the Foothills Neighborhood, just east of Downtown Lake Oswego. Existing Measures: • Increased density near transit stations. • Use of urban renewal funds to support housing near Downtown. • Conversion of underperforming commercial assets in Downtown. PP 22-0005 ATTACHMENT 1/PAGE 40 OF 103 Lake Oswego Housing Production Strategy | 38 These strategies can increase allowances for higher density housing in residential and mixed-use areas that are located near transit and that are within walking distance of a variety of businesses, services, public facilities, and other amenities. This is a particular benefit to low-income households and people with disabilities, who are less likely to own a car and may rely on transit and other modes to get around. The MUPTE program (Strategy 5) can also be targeted to amenity- and service-rich parts of the city where residents would most benefit from proximity. Housing Options for Residents Experiencing Homelessness The HPS does not include strategies that are specifically aimed at addressing homelessness or reducing the risk of households becoming homeless. However, several of the HPS strategies that support affordable housing development could be targeted to benefit extremely low-income households. For example, Strategy 10, Public- private partnerships for affordable housing, could be targeted to housing that benefits those with incomes below 30% AMI. This could be supported by regional or state funding sources. Also, the Nonprofit Low-Income Housing Tax Exemption recently approved by City Council would benefit deeply affordable housing. In addition, the City could work with Metro and Clackamas County to target some of the regional supportive housing services funding (via Ballot Measure 26-210) to support services and housing within Lake Oswego. Fair Housing This section identifies how the City will use the HPS to affirmatively further fair housing for all state and federal protected classes. This includes addressing disproportionate housing needs, patterns of integration and segregation, and disparities in access to housing opportunity. Lake Oswego is committed to furthering fair housing outcomes by including a fair housing strategy in the HPS (Strategy 13). Adopting a comprehensive plan policy to Affirmatively Further Fair Housing would demonstrate the City’s commitment to working towards fair housing outcomes in the city and could also bolster the City’s focus on prioritizing housing equity and affordability in its housing programs and investments. Other actions identified in Strategy 13, including fair housing training for City staff and policymakers and providing information to those involved with real estate transactions, would also help ensure fair housing outcomes for the local housing market. In addition, strategies that encourage affordable rental and homeownership housing, increase housing stability, and increase housing choice are all part of supporting Fair Housing (see above). PP 22-0005 ATTACHMENT 1/PAGE 41 OF 103 Lake Oswego Housing Production Strategy | 39 MONITORING PROGRESS AND OUTCOMES The City of Lake Oswego is required to monitor the implementation and progress of the strategies recommended in the HPS and to report on progress to DLCD three (3) years after adoption. That progress report must include: • A summary of the actions already taken by the city to implement the strategies adopted in the HPS Report. If the city has not implemented housing strategies per the schedule adopted in the HPS report, the city must provide an explanation of the circumstances or factors that posed a barrier to implementation and a plan for addressing the identified need that the strategy addressed; • A reflection of the relative efficacy of implemented housing strategies adopted in the HPS; and • A reflection of the efficiency of the actions taken in response to the Fair and Equitable Housing Outcomes described previously in this report. In addition, the City will provide a yearly summary as part of the overall report that details the above listed items. This is expected to be a simplified version of the required three-year report that includes a more limited set of key metrics. PROPOSED MEASURES Lake Oswego proposes the following measures to monitor the progress and impact of the HPS implementation: Permitted/Constructed Housing Units • Monitor and track housing development applications and building permits by housing type, location/zone, density/lot size, and number of bedrooms. Use this information to estimate the potential change in the mix and range of different types of housing developed over time. • Specific tracked housing types should include single-detached, townhouse, duplex, triplex, quadplex, cottage cluster, multi-dwelling, manufactured housing, accessory dwelling units, and mixed-use residential developments/units. • Track the number of new regulated affordable housing units and loss of regulated affordable housing units. o If affordable housing developments take advantage of any regulatory or financial incentives, those should be noted. PP 22-0005 ATTACHMENT 1/PAGE 42 OF 103 Lake Oswego Housing Production Strategy | 40 • Track the number of regulated affordable housing units that Lake Oswego contributed funding to, including the sources of funding or tax exemption. • Track the number of accessible housing units constructed and/or rehabilitated to enhance accessibility. Note when those units are built pursuant to adopted City requirements or incentives. • If MUPTE is adopted, track: o Number of projects and units that qualify for the program. o How many units are affordable (if this is a criterion that the City adopts) and at what level. o Market rents (if possible), and any other features / public benefits they provide as part of qualifying for the abatement (e.g., accessibility features). • Identify successful partnership projects that resulted in housing production or housing stability for identified groups in the HPS; include number of units built, preserved, or rehabilitated and the number of people served by the partnership(s). Economic and Demographic Data • Track changes in the characteristics of Lake Oswego’s population including changes in: o Median household income o Percent of population of color o Percent of renters o Percent of renter and owner households that are cost burdened and severely cost burdened • Monitor changes in housing prices, median rents and median sales prices Programs and Adoption Actions Document the following: • Successful adoption of Code Amendments related to the strategies identified in the HPS. • City Council Ordinances related to the HPS strategies (e.g., tax abatement, etc.). • Achievement of annual city work plan items related to strategies in the HPS. Outreach Summarize the following: • Documented coordination with property owners in efforts to produce needed housing identified in the HPS. • Documented consultation with non-profit and market-rate housing developers, and other community stakeholders to seek input on how implemented HPS strategies are working. • Summary of continued housing engagement efforts and resulting actions. The ability to report the progress described above will depend on the City’s ability to obtain and evaluate readily available data and information. Availability or lack thereof may necessitate refinements to monitoring approaches. PP 22-0005 ATTACHMENT 1/PAGE 43 OF 103 Lake Oswego Housing Production Strategy | 41 LIST OF APPENDICES Appendix A: Contextualized Housing Needs Memorandum Appendix B: Engagement Summary Appendix C: Pre-HPS Survey Results PP 22-0005 ATTACHMENT 1/PAGE 44 OF 103 Lake Oswego Housing Production Strategy APPENDIX A: CONTEXTUALIZED HOUSING NEEDS ASSESSMENT PP 22-0005 ATTACHMENT 1/PAGE 45 OF 103PP 22-0005 ATTACHMENT 1/PAGE 45 OF 103 LAKE OSWEGO CONTEXTUALIZED HOUSING NEEDS ASSESSMENT December 27, 2023 Prepared by MIG PP 22-0005 ATTACHMENT 1/PAGE 46 OF 103PP 22-0005 ATTACHMENT 1/PAGE 46 OF 103 12/27/2023 CONTENTS Execu�ve Summary .............................................................................................................................. 1 I. Introduc�on ................................................................................................................................. 6 II. Market Condi�ons ........................................................................................................................ 7 Housing Tenure ......................................................................................................................................... 7 Market Condi�ons (For-Sale Housing) ...................................................................................................... 7 Market Condi�ons (Rental Housing) ......................................................................................................... 9 III. Socio-Economic and Demographic Trends Affec�ng Housing Needs ............................................ 12 Family Households .................................................................................................................................. 14 Group Quarters Popula�on ..................................................................................................................... 14 Age .......................................................................................................................................................... 14 Diversity Trends ....................................................................................................................................... 16 People with a Disability ........................................................................................................................... 18 Income Trends ......................................................................................................................................... 20 Poverty .................................................................................................................................................... 21 People Experiencing Homelessness ........................................................................................................ 22 Households Needing Publicly Assisted Housing ..................................................................................... 23 Agricultural Workers ............................................................................................................................... 23 Veterans .................................................................................................................................................. 23 IV. Barriers to Development of Needed Housing .............................................................................. 25 V. Adopted Measures ..................................................................................................................... 27 PP 22-0005 ATTACHMENT 1/PAGE 47 OF 103PP 22-0005 ATTACHMENT 1/PAGE 47 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 1 EXECUTIVE SUMMARY The City of Lake Oswego completed its most recent Housing Needs Analysis (HNA) in the fall of 2023. The analysis included an inventory of buildable land for residen�al uses and a projec�on of future housing need, consistent with state and regional requirements. The HNA found that, despite a very low assumed growth rate over the 20-year planning horizon, the City of Lake Oswego has a need for nearly 2,000 new housing units, including over 1,100 mul�-family and middle housing units. According to the HNA, about half of those units are needed to meet upper income ranges (greater than 120% of the Area Median Income, or AMI), while the remaining half are needed to meet very low to middle income household needs. To advance the City's planning efforts to encourage and allow for development of needed housing, the City is in the process of crea�ng a Housing Produc�on Strategy (HPS), the purpose of which is to iden�fy a set of ac�ons that the City of Lake Oswego will take to facilitate housing development that meets the needs of the community. The HPS focuses on how to fill the gap between the City's housing need and supply, par�cularly housing available to low- and moderate-income households—and par�cularly low- cost rental housing. A key step in this process is developing a Contextualized Housing Needs Assessment (CHNA) per OAR 660-008-0050(1). This assessment is intended to build on previous work conducted for the HNA to describe demographic, housing, and market condi�ons; housing affordability issues; barriers to mee�ng iden�fied housing needs, including the needs of tradi�onally underserved and disadvantaged popula�ons; and exis�ng or previous programs implemented to address housing needs. Data sources for this report include the US decennial census and 5-year American Communi�es Survey (ACS) tables, CoStar, Regional Mul�ple Lis�ng Service (RMLS), and Johnson Economics. Key takeaways from this report follow. Summary of Market Condi�ons • For-Sale Housing. The median sale price was $860,000, while The average (mean) sale price was $1,075,000 during the last 12 months. The median square footage was 2,300 sq. �. Atached units and condominiums currently make up a significant share of home sales (28%). The median home sale price in Lake Oswego has more than doubled over the past 10 years, from $395k in 2012 to $860k in 2022. Median price growth has averaged 8% per year over the past decade but has recently experienced the strongest one-year growth in 2020 (14%) and 2021 (19%). • Rental Housing. The average effec�ve rent in Lake Oswego is $2,038/mo. In the last decade, rent growth has been 52% or 4.3% per year. By comparison, infla�on has been 31% or 2.7% per year for the same period. Rents peaked in 2022 and have moderated slightly since. • Housing Affordability. 75% of recent sales in Lake Oswego were priced at least $600,000. Homes in this range would be mostly affordable to households earning at least $175,000 per year. This is well above the median household income of $123,000. In addi�on, nearly half of renter households in Lake Oswego are considered housing cost burdened (i.e., pay more than 30% of their income for housing). PP 22-0005 ATTACHMENT 1/PAGE 48 OF 103PP 22-0005 ATTACHMENT 1/PAGE 48 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 2 • Publicly Assisted Housing. The state tracks three current subsidized affordable housing proper�es in Lake Oswego, with a total of 76 units in 2023. The majority (75) of these units are offered for elderly residents. The Marylhurst Commons will offer an addi�onal 100 affordable units for families when it is constructed. Upon comple�on in 2024, the total 176 subsidized units in Lake Oswego will represent 1% of the local housing stock. The Housing Authority of Clackamas County administers over 1,600 Sec�on 8 housing choice, some of which are used in Lake Oswego. No agricultural worker housing exists currently in Lake Oswego. Figure EX-1. Lake Oswego Home Sales (12 months, July 2022 to July 2023) Source: RMLS, Johnson Economics Socio-Economic Informa�on • Racial Diversity. Lake Oswego is roughly 80% white, 8% Asian, and 9% two or more races. The City is more diverse today than ten years ago when approximately 90% of the popula�on was white. • Disability. There are roughly 3,140 individuals in Lake Oswego with one or more disabili�es. • Veterans. Veterans are 6% of the adult popula�on. 63% are 65 and older. Veterans have lower than average poverty levels, and 21% have some sort of disability. 72%0% 8% 20% Home Sales by Unit Type Detached Home Manuf. Home Attached Home Condo 0 3 43 47 31 39 56 67 66 319 0 100 200 300 400 <$100,000 $100,000 - $199,000 $200,000 - $299,000 $300,000 - $399,000 $400,000 - $499,000 $500,000 - $599,000 $600,000 - $699,000 $700,000 - $799,000 $800,000 - $899,000 $900,000+ Home Sales by Price Level PP 22-0005 ATTACHMENT 1/PAGE 49 OF 103PP 22-0005 ATTACHMENT 1/PAGE 49 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 3 Figure EX-6. Population by Race SOURCE: US Census, Johnson Economics LLC; Census Tables: P1, P2 (2010, 2020) Figure EX-7. Population with Disabilities SOURCE: US Census, Johnson Economics LLC; Census Tables: DP02, (2020 ACS 5-year) 7.8% 2.4% 1.7% 2.7% 2.9% 1.1% 2.3% 0%2%4%6%8%10% Population with a disability Hearing difficulty Vision difficulty Cognitive difficulty Ambulatory difficulty Self-care difficulty Independent living difficulty Share of Population PP 22-0005 ATTACHMENT 1/PAGE 50 OF 103PP 22-0005 ATTACHMENT 1/PAGE 50 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 4 Exis�ng Adopted Housing Measures The City of Lake Oswego already implements a variety of measures intended to enable or facilitate the produc�on of needed housing. In combina�on with the other findings in the Contextualized Housing Needs report, this list will help the City and community understand where there are gaps in the City’s approach toward mee�ng its housing needs. Below is a brief summary of the key housing measures adopted by the City, organized into the categories defined by DLCD. Zoning Strategies • Height/density bonus for affordable developments in the West Lake Grove Design District (WLG- OC) and R-DD zones. • Increased code flexibility for accessory dwelling units (ADUs) as to occupancy and size limits. • Regulates short-term rentals to help preserve long-term rental opportuni�es regula�ons • Requires affordable housing in limited areas of the city. • Allows increased density near transit sta�ons. • Lot coverage bonus for housing within the Lake Grove Village Center Overlay (LGVCO). Reducing Regulatory Impediments • Removed parking mandates near transit. • Expedites permi�ng for affordable housing. Financial Incen�ves • Waives system development charges (SDCs) and development review fees for affordable housing and ADUs. Financial Resources • Uses urban renewal funds to support housing (recently with the North Anchor development). Land Acquisi�on, Lease, and Partnerships • Donates surplus City-owned land for affordable housing. • Engages in public-private partnerships with non-profit organiza�ons to produce affordable housing units. • Enables conversion of underperforming commercial assets into housing (recently with the North Anchor site). • U�lizing surplus land owned by faith-based organiza�on for housing (recently with the Marylhurst University Campus). Barriers to Development of Needed Housing Numerous factors contribute to the availability of housing in Lake Oswego – market factors, physical condi�ons, regula�ons, public investments, etc. Some of these factors can serve as barriers to the produc�on of housing that is most needed in the city. To understand the major barriers to developing needed housing in Lake Oswego, the project team interviewed a number of stakeholders involved in housing produc�on in the city. Following are some of the key housing needs that the stakeholders iden�fied as gaps in the market: PP 22-0005 ATTACHMENT 1/PAGE 51 OF 103PP 22-0005 ATTACHMENT 1/PAGE 51 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 5 • Affordable housing for low- and moderate-income households • Middle housing (e.g., townhomes, duplexes, and cotage clusters) • Housing op�ons for seniors and opportuni�es for aging in place • Op�ons for more atainable homeownership (e.g., condos and middle housing) • Apartments with family-size units (2-3 bedrooms) • Mul�-family housing outside the Town Center Stakeholders iden�fied the following barriers to mee�ng these housing needs, and to housing produc�on more generally: • The high cost of land in Lake Oswego translates to high rental and sale prices, and makes deed- restricted affordable housing especially challenging to pencil out. • There are few large, developable sites within the City and urban service boundary to support mul�-family housing and other development types that typically rely on larger parcels of land. • The City’s Development Code can pose barriers to housing development. Stakeholders iden�fied issues such as highly-prescrip�ve Overlay and Design District standards, tree protec�on/plan�ng standards, and open space standards as par�cular challenges for housing. • The City’s development review and permi�ng processes can be lengthy and contribute to housing costs. • Neighbor opposi�on to affordable or higher-density housing can drag out the process and add to costs. A focus of the Housing Produc�on Strategy will be to iden�fy tools and strategies to remove or reduce these barriers or help housing producers overcome them. PP 22-0005 ATTACHMENT 1/PAGE 52 OF 103PP 22-0005 ATTACHMENT 1/PAGE 52 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 6 INTRODUCTION The City of Lake Oswego completed its most recent Housing Needs Analysis (HNA) in the fall of 2023. The analysis included an inventory of buildable land for residen�al uses and a projec�on of future housing need, consistent with state and regional requirements. The HNA found that, despite a very low assumed growth rate over the 20-year planning horizon, the City of Lake Oswego has a need for nearly 2,000 new housing units, including over 1,100 mul�-family and middle housing units. According to the HNA, about half of those units are needed to meet upper income ranges (greater than 120% of the Area Median Income, or AMI), while the remaining half are needed to meet very low to middle income household needs. To advance the City's planning efforts to encourage and allow for development of needed housing, the City is in the process of crea�ng a Housing Produc�on Strategy (HPS), the purpose of which is to iden�fy a set of ac�ons that the City of Lake Oswego will take to facilitate housing development that meets the needs of the community. The HPS focuses on how to fill the gap between the City's housing need and supply, par�cularly housing available to low- and moderate-income households—and par�cularly low- cost rental housing. To provide context to Lake Oswego's housing needs, the memorandum uses data from the 2023 Housing Needs Analysis, US Census, and other available sources describe in greater detail the context of socio- economic, demographic trends, and market condi�ons. This memorandum also incorporates informa�on obtained though stakeholder engagement mee�ngs with affordable housing producers and consumers, landowners, and representa�ves of underrepresented communi�es, including people experiencing homelessness, low-income households, renters, and non-profit and governmental organiza�ons serving those in need of housing. PP 22-0005 ATTACHMENT 1/PAGE 53 OF 103PP 22-0005 ATTACHMENT 1/PAGE 53 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 7 MARKET CONDITIONS The informa�on on housing market condi�ons provides a look into the way the housing market is or is not mee�ng the needs of the residents of Lake Oswego. Housing Tenure Lake Oswego has a greater share of homeowner households than renter households. The 2021 ACS es�mates that 71% of occupied units were owner occupied, and only 29% renter occupied. The ownership rate is litle changed since 2000. The es�mated ownership rate is higher across Clackamas County (73%) and lower statewide (63%). Market Conditions (For-Sale Housing) This sec�on presents home sales data from the Regional Mul�ple Lis�ng Service (RMLS) for the prior 12 months (July 2022 to July 2023). There were 671 home sales in Lake Oswego over this period, or an average of 56 sales/month. Currently, RMLS tracks 181 ac�ve lis�ngs, or over three months of for-sale inventory at the average rate of the prior 12 months (see Figure 1). Of these lis�ngs: • The median sale price was $860,000. • The average (mean) sale price was $1,075,000. • The average price per square foot was $430/square foot • The median square footage was 2,300 square feet • Atached units and condominiums make up a significant share of home sales (28%). • 48% of sales were priced above $900,000. • 34% of sales were priced between $500,000 and $899,000. • Only 18% of sales were priced at less than $500,000. • Only 7% of sales were priced below $300,000. As shown in Figure 2, the median home sale price in Lake Oswego has more than doubled over the past 10 years, from $395k in 2012 to $860k in 2022. Median price growth has averaged 8% per year over the past decade but has recently experienced the strongest one-year growth in 2020 (14%) and 2021 (19%). Mobility paterns and work-from-home trends during the COVID pandemic were the likely contributors to this trend, as remote workers from more expensive markets such as California and Seatle were able to relocate to atrac�ve Oregon communi�es. Compe��on for limited housing inventory during those years also contributed to rising prices. The price increases moderated in 2022, growing by only 2% from 2021. PP 22-0005 ATTACHMENT 1/PAGE 54 OF 103PP 22-0005 ATTACHMENT 1/PAGE 54 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 8 Figure 1. Lake Oswego Home Sales (12 Months) Sources: RMLS, JOHNSON ECONOMICS Figure 2. Median Home Sale Price (2010-2022) Sources: RMLS, JOHNSON ECONOMICS 72%0% 8% 20% Home Sales by Unit Type Detached Home Manuf. Home Attached Home Condo 0 3 43 47 31 39 56 67 66 319 0 100 200 300 400 <$100,000 $100,000 - $199,000 $200,000 - $299,000 $300,000 - $399,000 $400,000 - $499,000 $500,000 - $599,000 $600,000 - $699,000 $700,000 - $799,000 $800,000 - $899,000 $900,000+ Home Sales by Price Level $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Median Sale Price PP 22-0005 ATTACHMENT 1/PAGE 55 OF 103PP 22-0005 ATTACHMENT 1/PAGE 55 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 9 Affordability: As indicated, roughly 75% of recent sales in Lake Oswego were priced at least $600,000. Homes in this range would be mostly affordable to households earning at least $175,000 per year, which is well above the median household income of $123,000. Roughly 66% of households earn less than $175,000 per year, meaning that the bulk of housing supply on the current for-sale market (75%) is likely too expensive for most of these households. Market Conditions (Rental Housing) Lake Oswego has experienced an uneven vacancy rate over the last two decades, according to data from CoStar. The following figure shows that rental vacancy in the area fell in the prior decade to a low vacancy of under 4%. By 2017, when new apartment inventory was built in Lake Oswego, vacancy climbed temporarily and has been modera�ng ever since (see Figure 3). Average rents have climbed steadily since 2011 (Figure 4 and Figure 5). The average rent in Lake Oswego has nearly doubled over that period, increasing to roughly $2.20/square foot, or an average of $2,050/month according to data from CoStar. Rents peaked in mid-2022 at an average monthly rate of $2,200/month and an average $2.35/square foot. Figure 6 presents the average annual rent growth since 2001. Rent growth has remained mostly posi�ve since the prior recession. A�er rents fell at the outset of the COVID pandemic, it reversed by 2010 and growth was posi�ve un�l the most recent quarters. Since the second quarter of 2023, average rents have fallen an es�mated 5% on a year-over-year basis. Figure 3. Rental Vacancy In Lake Oswego (2000-2023) Source: CoStar, Johnson Economics 0% 2% 4% 6% 8% 10% 12% Vacancy Rate PP 22-0005 ATTACHMENT 1/PAGE 56 OF 103PP 22-0005 ATTACHMENT 1/PAGE 56 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 10 Figure 4. Average Rent/Square Foot, Lake Oswego (2000-2023) Source: CoStar, Johnson Economics Figure 5. Average Monthly Rent, Lake Oswego (2000-2023) Source: CoStar, Johnson Economics $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 Effective Rent Per SF $0 $500 $1,000 $1,500 $2,000 $2,500 Effective Rent Per Unit PP 22-0005 ATTACHMENT 1/PAGE 57 OF 103PP 22-0005 ATTACHMENT 1/PAGE 57 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 11 Figure 6. Annual Rent Growth Rate, Lake Oswego (2000-2023) Source: CoStar, Johnson Economics Affordability: Figure 7 shows the percentage of household income spent on gross rent 1 for rental households. Roughly half of renter households in Lake Oswego spend more than 30% of their income on rent – meaning that they are housing cost burdened. Further, an es�mated 29% of renter households are spending 50% or more of their income on housing and are considered severely housing cost burdened. Figure 7. Percentage of Household Income Spent on Gross Rent, Lake Oswego Renter Households 1 The Census defines Gross Rent as “the contract rent plus the es�mated average monthly cost of u�li�es (electricity, gas, and water and sewer) and fuels (oil, coal, kerosene, wood, etc.) if these are paid by the renter (or paid for the renter by someone else).” Housing costs for homeowners include mortgage, property taxes, insurance, u�li�es and condo or HOA dues. -8% -4% 0% 4% 8% 12% 16% Effective Rent % Growth/Yr PP 22-0005 ATTACHMENT 1/PAGE 58 OF 103PP 22-0005 ATTACHMENT 1/PAGE 58 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 12 SOCIO-ECONOMIC AND DEMOGRAPHIC TRENDS AFFECTING HOUSING NEEDS The following table (Figure 8) presents a profile of City of Lake Oswego demographics from the 2000 and 2010 Census. It also reflects the es�mated popula�on of this area as of 2023 from PSU es�mates, forecasted forward to 2023 using the es�mated growth rate between 2010 and 2022. • Lake Oswego is a City of over 41,500 people located in Clackamas County in the southern-central area of the Portland metropolitan region. • Based on es�mated popula�on, Lake Oswego is the 13th largest city in the state by popula�on, similar in size to Oregon City regionally, or Keizer and Grants Pass statewide. Lake Oswego has about 1.5 �mes the popula�on of neighboring West Linn or Tuala�n, and about 75% of the popula�on of Tigard. • Lake Oswego has experienced modest growth, growing roughly 18% since 2000, or less than 1% per year. In contrast, Clackamas County and the state experienced popula�on growth of 26% and 25% respec�vely during the same period. (US Census and PSU Popula�on Research Center) PP 22-0005 ATTACHMENT 1/PAGE 59 OF 103PP 22-0005 ATTACHMENT 1/PAGE 59 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 13 Figure 8. Lake Oswego Population, Households, and Income Lake Oswego was home to an es�mated 17,500 households in 2023, an increase of over 2,650 households since 2000. The percentage of families has increased slightly from 66% of all households in 2000 to 68% in 2023. The city has a similar share of family households to Clackamas County (69%) but higher than the state (63%). Average household size is es�mated to have remained fairly stable during this period. Lake Oswego’s es�mated average household size is 2.4 persons. This is lower than the Clackamas County average of 2.6 and similar to the statewide average of 2.44. Figure 9 shows the rental/ownership split by household size in Lake Oswego. 2000 2010 Growth 2023 Growth (Census) (Census)00-10 (PSU)10-23 Population1 35,278 36,619 4%41,550 13% Households 2 14,824 15,893 7%17,481 10% Families3 9,775 10,079 3%11,842 17% Housing Units 4 15,668 16,995 8%18,345 8% Group Quarters Population5 163 222 36%329 48% Household Size (non-group)2.37 2.29 -3%2.36 3% Avg. Family Size 2.93 2.88 -2%2.97 3% 2000 2010 Growth 2023 Growth (Census) (Census)00-10 (Proj.)10-23 Per Capita ($)$42,166 $53,652 27% $74,600 39% Median HH ($)$71,597 $84,186 18% $123,300 46% SOURCE: Census, Metro Consolidated Forecast, PSU Population Research Center, and Johnson Economics Census Tables: DP-1 (2000, 2010); DP-3 (2000); S1901; S19301 1 From Census, PSU Population Research Center, growth rate 2010-2022 extended to 2023 2 2023 Households = (2023 population - Group Quarters Population)/2023 HH Size 3 Ratio of 2023 Families to total HH is based on 2021 ACS 5-year Estimates 4 2023 housing units are the '20 Census total plus new units permitted from '20 through '22 (source: Census, City) 5 2023 Group Quarters Population based on 5-year ACS estimates 2017-2021 PER CAPITA AND MEDIAN HOUSEHOLD INCOME POPULATION, HOUSEHOLDS, FAMILIES, AND YEAR-ROUND HOUSING UNITS PP 22-0005 ATTACHMENT 1/PAGE 60 OF 103PP 22-0005 ATTACHMENT 1/PAGE 60 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 14 Figure 9. Household Size in Lake Oswego Family Households As of the 2021 ACS, 68% of Lake Oswego households were family households, up from 63.4% of households in 2010. The total number of family households in Lake Oswego is es�mated to have grown by over 2,060 since 2000. The Census defines family households as two or more persons, related by marriage, birth or adop�on and living together. In 2023, family households in Lake Oswego have an es�mated average size of 2.97 people. Group Quarters Population As of the 2020 Census, the City of Lake Oswego had an es�mated group quarters popula�on of 0.8% of the total popula�on, or 329 persons. Group quarters include such shared housing situa�ons as nursing homes, prisons, dorms, group residences, military housing, or shelters. For the purposes of this analysis, these residents are removed from the es�mated popula�on total, before determining the number of other types of housing that are needed for non-group households. In Lake Oswego, nearly 90% of the group quarters popula�on is found in assisted living facili�es. Age Figure 10 shows the share of the popula�on falling in different age cohorts between the 2000 Census and the most recent 5-year American Community Survey es�mates. There is a general trend for middle age and young cohorts to fall as share of total popula�on, while older cohorts have grown in share. This is in keeping with the na�onal trend caused by the aging of the Baby Boom genera�on. Overall, Lake 20% 38% 19% 18% 4% 2% 0% 40% 35% 11% 11% 3% 1% 0% 0%5%10%15%20%25%30%35%40% 1-person 2-person 3-person 4-person 5-person 6-person 7-or-more Share of Households Ho u s e h o l d S i z e Renter Owner PP 22-0005 ATTACHMENT 1/PAGE 61 OF 103PP 22-0005 ATTACHMENT 1/PAGE 61 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 15 Oswego has an older popula�on than the county, with a similar share of children, but a smaller share of those aged 25 to 44 years. The cohorts which grew the most in share during this period were those aged 55 to 74 years. S�ll, an es�mated 79% of the popula�on is under 65 years of age. In the 2021 ACS, the local median age was an es�mated 46 years, compared to 40 years in Oregon, and 39 years na�onally. Figure 10. Age Cohort Trends, 2000-2021 SOURCE: US Census, JOHNSON ECONOMICS LLC; Census Tables: QT-P1 (2000); S0101 (2021 ACS 5-yr Es�mates) The cohorts which grew the most in share during this period were those aged 55 to 74 years. S�ll, an es�mated 79% of the popula�on is under 65 years of age. In the 2021 ACS, the local median age was an es�mated 46 years, compared to 40 years in Oregon, and 39 years na�onally. Figure 11 presents the share of households with children, and the share of popula�on over 65 years for comparison. Compared to state and na�onal averages, Lake Oswego has a similar share of households with children. However, at 21%, the share of popula�on over 65 is higher than the state and na�onal figures. 20 % 10 % 10 % 16 % 21 % 11 % 6% 4% 1% 18 % 10 % 9% 12 % 16 % 14 % 14 % 5% 2% 17 % 11 % 12 % 14 % 13 % 13 % 12 % 5% 2% 0% 5% 10% 15% 20% 25%Lake Oswego (2000) Lake Oswego (2021) Clack. Co. (2021) PP 22-0005 ATTACHMENT 1/PAGE 62 OF 103PP 22-0005 ATTACHMENT 1/PAGE 62 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 16 Figure 11. Share of Households with Children/Population over 65 Years (Lake Oswego) SOURCE: US Census, JOHNSON ECONOMICS LLC; Census Tables: B11005; S0101 (2021 ACS 5-yr Es�mates) Diversity Trends Figure 12 presents the distribu�on of Lake Oswego’s popula�on by race and Hispanic ethnicity. The community grew more diverse between the 2010 and 2020 Census, with the popula�on’s white (non- Hispanic) share falling from 90% to 80%. The Asian popula�on makes up 8% of the popula�on, and the Hispanic or La�no popula�on makes up 5% of residents. 9% of residents iden�fy as two or more races. Figure 12. Racial and Ethnic Diversity, 2010 – 2020 (Lake Oswego) SOURCE: US Census, JOHNSON ECONOMICS LLC; Census Tables: P1, P2 (2010, 2020) In comparison, the share of the popula�on iden�fying as white is also 80% in Clackamas County, and 75% statewide. The share of Lake Oswego’s popula�on iden�fying as Hispanic or La�no is 5% of the popula�on, indica�ng over 2,100 people as of the 2020 Census. This is lower than the 14% share statewide. 31% 28%31% 0% 10% 20% 30% 40% Lake Oswego Oregon USA Share of Households with Children 21% 18%16% 0% 10% 20% 30% 40% Lake Oswego Oregon USA Share of Population Over 65 Years 80 % 1% 0% 8% 0%1% 9% 5% 0% 20% 40% 60% 80% 100% Wh i t e Bl a c k o r A f r i c a n Am e r i c a n Am e r i c a n a n d Al a s k a N a t i v e As i a n Ha w a i i a n a n d Pa c i f i c I s l a n d e r So m e O t h e r R a c e Tw o o r m o r e ra c e s Hi s p a n i c o r L a t i n o (a n y r a c e ) Share of Population by Race Lake Oswego (2010) Lake Oswego (2020) Clackamas Co. Oregon PP 22-0005 ATTACHMENT 1/PAGE 63 OF 103PP 22-0005 ATTACHMENT 1/PAGE 63 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 17 Figure 13. Average Number of Persons per Household by Racial and Ethnic Category (Oregon) SOURCE: US Census, JOHNSON ECONOMICS LLC; Census Tables: P17A-H, (State of Oregon, 2020) * This data is presented on a statewide basis using the most recent Census data available (2010). The data for the Lake Oswego or Clackamas County geographies feature unusually large margins of error due to the small sample size. As shown in Figure 13, minority households tend to have a larger average household size than the average of all households. (This figure presents statewide data due to the high margin of error for local data in this data set.) Households iden�fying as “white alone” have the lowest average household size (2.4 persons), while all other racial and ethnic categories have a larger es�mated average household size. Some of the non-white categories, such as black households and those of two or more races, are s�ll similar in average size (2.5 and 2.7 persons, respec�vely). Those with the largest es�mated households are La�nos, Pacific Islanders, and those iden�fying as “some other race.” Larger average household size indicates a need for units with more bedrooms on average among many minority households. Each household has its own housing needs in terms of the number of bedrooms and other factors, based on the specific makeup of each family. Based on voluntary guidelines provided by HUD for public housing programs, households of between 2 persons generally need a one-bedroom unit, households with 3 persons might need two bedrooms, and those with 4 persons might need three bedrooms. Larger households may need four or more bedrooms, which are typically found in single detached homes. Based on statewide data, many racial and ethnic minori�es are currently less likely to own the homes they occupy (Figure 14) – meaning that they tend to occupy rental units. These communi�es face systemic obstacles to home ownership, including lower genera�onal wealth, less access to capital and financing, and a history of discrimina�on in lending and geography (e.g., redlining). While the country and state try to address explicit discrimina�on through the law, the legacy of these barriers con�nues to hamper home ownership for many minority households. Going forward, many communi�es would 2.5 2.4 2.5 2.8 2.8 3.5 3.7 4.0 2.7 0.0 1.0 2.0 3.0 4.0 5.0 All Households White alone Black or African American alone American Indian and Alaska Native alone Asian alone Native Hawaiian and Pacific Islander Hispanic or Latino Some Other Race alone Two or more races: Avg. Number of Persons per Household Average Household Size by Race & Ethnicity (Oregon) PP 22-0005 ATTACHMENT 1/PAGE 64 OF 103PP 22-0005 ATTACHMENT 1/PAGE 64 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 18 benefit from more entry-level homebuying opportuni�es for these households, as well as addi�onal rental housing for those who are s�ll unready or unable to buy a home. Figure 14. Home Ownership Rate by Racial and Ethnic Category (Oregon) SOURCE: US Census, JOHNSON ECONOMICS LLC; Census Tables: B25003A-H, (State of Oregon, 2021 ACS 5-year) * This data is presented on a statewide basis using the most recent Census data available (2020). The data for the Lake Oswego or Clackamas County geographies feature larger margins of error due to small sample size in some of the racial categories. Popula�ons from some racial and ethnic minority groups also have lower average incomes and are more likely to have income below the official poverty level when compared to the total popula�on. Such income levels are correlated with a greater share of renter households and impact the types of housing these popula�ons consume, as discussed in further detail below. People with a Disability An es�mated 8% of the popula�on of Lake Oswego, or 3,140 people, report having some form of disability. This is lower than the statewide rate of 14% and the Clackamas County rate of 12% of people with a disability. (The Census reports these sta�s�cs for the “non-ins�tu�onalized popula�on.”) Figure 15 presents Census es�mates of the types of disability reported among Lake Oswego residents. Any type of disability impacts the type of housing that may be appropriate for a resident, but those with the greatest impact on needed unit type are generally an ambulatory, self-care, or independent living disability. Those with an ambulatory disability o�en need units with expanded access for a wheelchair, walker, or scooter. Those with self-care or independent living disabili�es may require addi�onal safety precau�ons around the home to protect a resident who cannot always be directly monitored. 63% 65% 36% 48% 63% 32% 45% 43% 50% 0%20%40%60%80%100% All Households White alone Black or African American alone American Indian and Alaska Native alone Asian alone Native Hawaiian and Pacific Islander Hispanic or Latino Some Other Race alone Two or more races: Ownership Rate Owner-Occupied Households by Race & Ethnicity (Oregon) PP 22-0005 ATTACHMENT 1/PAGE 65 OF 103PP 22-0005 ATTACHMENT 1/PAGE 65 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 19 Figure 15. Lake Oswego Share of the Population with Disability, By Type SOURCE: US Census, JOHNSON ECONOMICS LLC; Census Tables: DP02, (2020 ACS 5-year) Figure 16. Lake Oswego Population with a Disability, by Age SOURCE: US Census, JOHNSON ECONOMICS LLC; Census Tables: DP02, (2020 ACS 5-year) Older residents are more likely to report a disability, including nearly 20% of those over 65 years. Of those aged 18 to 64 years, 6% of the local popula�on reports a disability, and 2% of children. Because Census data tends to undercount the homeless and other vulnerable popula�ons, there are likely more disabled residents in Lake Oswego than reflected in these data. 7.8% 2.4% 1.7% 2.7% 2.9% 1.1% 2.3% 0%2%4%6%8%10% Population with a disability Hearing difficulty Vision difficulty Cognitive difficulty Ambulatory difficulty Self-care difficulty Independent living difficulty Share of Population 7.8% 2.0% 5.8% 19.5% 0%5%10%15%20%25% Total population Under 18 years 18 to 64 years 65 years and over Share of Population with Disability by Age PP 22-0005 ATTACHMENT 1/PAGE 66 OF 103PP 22-0005 ATTACHMENT 1/PAGE 66 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 20 Income Trends As shown in Figure 17, Lake Oswego’s es�mated median household income was $123,000 in 2023. This is nearly 40% higher than the Clackamas County median of $88,500, and 75% higher than the statewide median of $70,000. Lake Oswego’s per capita income is roughly $75,000. Median income has grown an es�mated 46% between 2010 and 2023, in real dollars. Infla�on was an es�mated 34% over this period, so the local median income has well exceeded infla�on. This is not the case in many regions and na�onally, where income growth has not kept pace with infla�on. Figure 17. Income Trends, 2000 – 2023 (Lake Oswego) Figure 18. Household Income Cohorts, 2021 (Lake Oswego) SOURCE: US Census, Census Tables: S1901 (2021 ACS 5-yr Est.) Figure 18 presents the es�mated distribu�on of households by income as of 2021. The largest income cohorts are those households earning between $100k and $200k per year (32%), followed by households earning over $200k (27%). Approximately 41% of households earn less than $100,000. Roughly 19% of households earn less than $50k per year. 2000 2010 Growth 2023 Growth (Census) (Census)00-10 (Proj.)10-23 Per Capita ($)$42,166 $53,652 27% $74,600 39% Median HH ($)$71,597 $84,186 18% $123,300 46% SOURCE: Census, Metro Consolidated Forecast, PSU Population Research Center, and Johnson Economics Census Tables: DP-1 (2000, 2010); DP-3 (2000); S1901; S19301 PER CAPITA AND MEDIAN HOUSEHOLD INCOME 3% 2% 4% 4% 6% 11% 11% 20% 12% 27% 0%5%10%15%20%25%30% Less than $10,000 $10,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 or more Household Income Groups PP 22-0005 ATTACHMENT 1/PAGE 67 OF 103PP 22-0005 ATTACHMENT 1/PAGE 67 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 21 Poverty According to the US Census, the official poverty rate in Lake Oswego is an es�mated 4% over the most recent period reported (2021 5-year es�mates).2 This is roughly 1,700 individuals in Lake Oswego. In comparison, the official poverty rate in Clackamas County is 9%, and at the state level is 17%. As shown in Figure 19, in the 2017-21 period: • The Lake Oswego poverty rate is low among all groups, but highest among those 65 years and older at 5%. The rate is 4% among those 18 to 64 years of age. The es�mated rate is lowest for children at 3%. • For those without a high school diploma, the poverty rate is 11%. • Among those who are employed the poverty rate is 2%, while it is 7% for those who are unemployed. • Informa�on on affordable housing is presented in Sec�on II F of this report. Figure 19. Poverty Status by Category (Lake Oswego) SOURCE: US Census; Census Tables: S1701 (2021 ACS 5-yr Est.) 2 Census Tables: S1701 (2018 ACS 5-yr Es�mates); Methodology The Census Bureau uses a set of income thresholds that vary by family size and composi�on to determine who is in poverty. There are 48 separate income thresholds set based on the possible combina�ons of household composi�on. 3% 4% 5% 2% 7% 11% 10% 7% 3% 0%5%10%15%20% Under 18 years 18 to 64 years 65 years and over Employed Unemployed Less than high school High school Some college, associate's Bachelor's degree or higher Poverty Level of Subgroups PP 22-0005 ATTACHMENT 1/PAGE 68 OF 103PP 22-0005 ATTACHMENT 1/PAGE 68 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 22 People Experiencing Homelessness The Census makes a mul�-faceted effort to include the unhoused popula�on in the total Decennial Census count, by atemp�ng to enumerate these individuals at service providers, and in transitory loca�ons such as RV parks or campgrounds, as of the official Census data (4/1/20). However, it is difficult to make an accurate count of this popula�on, and it is generally presumed that the unhoused are undercounted in the Census. The most recent (January 2023) Point-in-Time count of people experiencing homelessness and households experiencing homelessness in Clackamas County 3 found 410 unhoused individuals on the streets, in shelters, or other temporary and/or precarious housing. This is a 31% decrease from the 597 individuals counted in 2022, which was likewise a decline from the prior count. The es�mated 410 unhoused individuals represent 0.1% of the county’s total es�mated popula�on in 2023. A detailed breakdown of the data from the 2023 count is not yet available. The following are some demographic indicators from the 2022 count: • An es�mated 45% of individuals were in some sort of temporary shelter, while 55% were unsheltered. • Of those indica�ng a gender, 60% of those counted iden�fied as men, 40% women. • Five percent of those counted were Hispanic or La�no compared to 9.5% in the general popula�on. • Approximately 51%, were counted as “chronically homeless”.4 While the Point-in-Time count is one of the few systema�zed efforts to count people experiencing homelessness across the country in a regular, structured way, it is widely thought to undercount the popula�on of unhoused individuals and households. People who are doubled up, couch surfing, or experiencing domes�c violence may not always be accurately counted. In addi�on to the impossibility of finding all unsheltered individuals experiencing homelessness, the count is conducted in late January, when homeless counts are likely near their lowest of the year due to inclement weather. It also relies on self-repor�ng. Data on unhoused school-aged children is tracked in keeping with the McKinney-Vento Act. The Department of Educa�on reports that in the 2021/22 school year, there were 41 enrolled students experiencing homelessness in Lake Oswego School District, and an es�mated 304 children between the ages of 5 and 17 living in poverty. The persistence of people experiencing homelessness speaks to the need for con�nuing to build a full spectrum of services and housing types to shelter this popula�on, from temporary shelter to subsidized affordable housing. An analysis of the ability of current and projected housing supply to meet the needs of low-income people and the poten�al shor�all is included in the following sec�ons of this report. 3 Figures are for the en�re County 4 HUD defines “chronically homeless” as an individual with a disability as defined by the McKinney-Vento Assistance Act, who has been in uninhabitable condi�ons for more than 12 mo. or on four separate occasions in the last three years; or has been in ins�tu�onal care for less than 90 days; or a family with an adult head of household who meets this defini�on. PP 22-0005 ATTACHMENT 1/PAGE 69 OF 103PP 22-0005 ATTACHMENT 1/PAGE 69 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 23 Households Needing Publicly Assisted Housing Oregon Housing and Community Services (OHCS) tracks three currently opera�ng subsidized affordable housing proper�es in Lake Oswego, with a total of 76 units. These are proper�es that are funded through HUD programs, tax credits and other programs which guarantee subsidized rents for qualified households. All of these units, save one, are offered for elderly residents. The Marylhurst Commons, currently under development, is planned to offer 100 affordable units for families when constructed. Upon comple�on in 2024, the total 176 subsidized units in Lake Oswego will represent 1% of the local housing stock. An addi�onal 8 units of 80% AMI housing are also in the pipeline as part of the North Anchor project. The Housing Authority of Clackamas County administers over 1,600 Sec�on 8 housing choice vouchers that allow low-income par�cipants to find rental units anywhere in the county. Under this program, the renters can find par�cipa�ng landlords and the voucher helps to subsidize the cost of a market-rate rental unit. The unit does not have to be in a property dedicated to subsidized affordable housing but can be in any rental property. The high share of renters s�ll paying over 30% of their income towards housing costs indicates that there is an ongoing need for rental units at the lowest price points. Agricultural Workers Lake Oswego is not currently home to proper�es dedicated to agricultural workers. This popula�on may also be served by other available affordable units. Veterans This group is called out as a popula�on with specific needs and which is o�en under-represented in planning for future needed housing. In general, veterans o�en may have physical or mental health disabili�es resul�ng from injuries or stress experienced during their service. They also frequently have fixed, lower incomes and need access to services provided by the US Veterans Administra�on or other service providers. As a result, they share many of the same unmet needs described here for people with disabili�es, low-income households, and in some cases senior residents. PP 22-0005 ATTACHMENT 1/PAGE 70 OF 103PP 22-0005 ATTACHMENT 1/PAGE 70 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 24 Figure 20. Veterans in Lake Oswego Individuals Share of Adult Population Total Veterans 1,801 5.7% Period of Service Share of Veterans Gulf War (9/2001 or later) veterans 344 19.1% Gulf War (1990 to 8/2001) veterans 335 18.6% Vietnam era veterans 634 35.2% Korean War veterans 140 7.8% World War II veterans 83 4.6% Other 265 14.7% Veteran Age Share of Veterans 18 to 34 years 107 5.9% 35 to 54 years 335 18.6% 55 to 64 years 232 12.9% 65 to 74 years 474 26.3% 75 years and over 653 36.3% Veteran Poverty Status 61 3.4% Veterans with a Disability 375 20.9% Source: Table S2101,ACS 2021 5-Year, Johnson Economics PP 22-0005 ATTACHMENT 1/PAGE 71 OF 103PP 22-0005 ATTACHMENT 1/PAGE 71 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 25 BARRIERS TO DEVELOPMENT OF NEEDED HOUSING Numerous factors contribute to the availability and/or lack of needed housing in Lake Oswego – market factors, physical condi�ons, regula�ons, public investments, etc. Some of these factors can serve as barriers to the produc�on of housing that is most needed in the city. To understand the major barriers to developing needed housing in Lake Oswego, the project team interviewed a number of stakeholders involved in housing produc�on in the city. These interviews were conducted in September and October 2023 and included market-rate developers and architects with experience in single-family, middle housing, and mul�-family housing produc�on; nonprofit housing providers, including Habitat for Humanity and Mercy Housing Northwest; and City staff involved in Planning and Redevelopment. Following are some of the key housing needs that the stakeholders iden�fied as gaps in the market: • Affordable housing for low- and moderate-income households • Middle housing (e.g., townhomes, duplexes, and cotage clusters) • Housing op�ons for seniors and opportuni�es for aging in place • Op�ons for more atainable homeownership (e.g., condos and middle housing) • Apartments with family-size units (2-3 bedrooms) • Mul�-family housing outside the Town Center In terms of barriers to mee�ng these needs, and to housing produc�on more generally, some of the major themes are summarized below. • High cost of land in Lake Oswego. The city has very high land values, which translates to high rental and sale prices, and makes deed-restricted affordable housing especially challenging to pencil out. • Few large, developable sites. There is limited land within the City and urban service boundary to support mul�-family housing and other development types that typically rely on larger parcels of land. The Buildable Lands Inventory prepared as part of the Housing Needs Analysis also supports this no�on – finding a deficit of buildable land to meet future housing needs, including lands zoned for high-density housing. • Code barriers. Stakeholders iden�fied a range of barriers to housing development in the Lake Oswego Community Development Code. Stakeholders expressed that the City’s code is especially challenging to work with compared to some other jurisdic�ons. The following specific code barriers were iden�fied: o Overlay and Design District standards are highly prescrip�ve, which can add to the cost of development and limit flexibility. Stakeholders pointed to detailed architectural standards as being a par�cular challenge – e.g., requirements for specific siding materials adding to construc�on costs. o Tree protec�on and tree plan�ng and landscaping standards are also very prescrip�ve and can be difficult to meet on constrained sites. o Open space standards for mul�-family housing are considered by stakeholders to be excessive, limit the available space on a site for housing units, and don’t necessarily lead PP 22-0005 ATTACHMENT 1/PAGE 72 OF 103PP 22-0005 ATTACHMENT 1/PAGE 72 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 26 to great outcomes. They note that open spaces can be smaller and more concentrated while s�ll providing appealing ameni�es for residents. o Setbacks and other standards limit middle housing infill opportuni�es. Stakeholders shared that si�ng standards can make it difficult for middle housing such as duplexes and townhomes to fit on exis�ng lots. • Process barriers. Stakeholders also noted that Lake Oswego’s development review and permi�ng processes can be lengthy and contribute to housing costs. A few stakeholders noted that this limits the number of developers that are interested in building in the city. In par�cular: o The design review process in Design Districts adds �me and cost. o Building permit review can also be slow. o Due to prescrip�ve standards, applicants o�en need to apply for mul�ple variances, which lengthens the process and adds uncertainty. o Public improvements (e.g., road improvements and u�li�es) can be very costly. • Neighbor opposi�on. A few stakeholders also noted that neighbor opposi�on to affordable or higher-density housing can drag out the process and add to costs. • Market trends. At the �me of this analysis, there are some headwinds to development of new housing regionally and na�onwide. These include infla�on in the cost of building inputs such as labor, materials, and land. Increasing interest rates in recent years that haven’t been offset by a propor�onate fall in property prices are another major impediment. A focus of the Housing Produc�on Strategy will be to iden�fy tools and strategies to remove or reduce these barriers or help housing producers overcome them. PP 22-0005 ATTACHMENT 1/PAGE 73 OF 103PP 22-0005 ATTACHMENT 1/PAGE 73 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 27 ADOPTED MEASURES The City of Lake Oswego already implements a variety of measures intended to enable or facilitate the produc�on of needed housing. The City submited a “Pre-HPS Survey” to DLCD in 2022, as required by former subsec�on 2 of ORS 456.586, which includes an exhaus�ve list of the housing measures the City has adopted and implemented. In combina�on with the other findings in the Contextualized Housing Needs report, this list will help the City and community understand where there are gaps in the City’s approach toward mee�ng its housing needs. Below is a summary of the key housing measures adopted by the City, organized into the categories defined by DLCD. The full list of adopted measures will be included as an appendix to the HPS Report. Zoning Strategies • Height/density bonus for affordable developments – The City allows a limited height or density bonus for affordable developments in the West Lake Grove Design District (WLG-OC) and R-DD zones. • Increased code flexibility for accessory dwelling units – The City removed occupancy requirements for ADUs and expanded maximum ADU size to 1,000 sq. �. for internal remodels of primary dwellings. • Short-term rental regula�ons – The City requires that short-term rental is a home occupa�on where a resident lives on the lot. Short-term rentals are not permited in ADUs where the ADU received a system development charge (SDC) waiver. • Mandatory affordable housing – City requires affordable housing (affordable to those earning 80% or less of AMI) on a por�on of the Marylhurst Special District and a por�on of the West Lake Grove Design District (WLG-OC zone) where mul�family use is allowed. • Increased density near transit sta�ons – The mixed-use zoning that is in place near transit – Metro 'town centers' – allows residen�al use and does not limit density. These areas have developed/redeveloped with high-density (50-100 units per acre) development in recent years. • Lot coverage bonus for housing – The City allows a limited lot coverage bonus within the Lake Grove Village Center Overlay (LGVCO) for developments where housing is provided. Reducing Regulatory Impediments • Removed parking mandates near transit – In compliance with the state’s Climate-Friendly and Equitable Communi�es rules, the City does not apply minimum parking requirements within 1/2-mile of priority transit, which includes the en�re Downtown Town Center, and will remove minimum parking requirements in the City's other climate-friendly area (Lake Grove Village Center) to comply with CFEC rules. • Expedites permi�ng for affordable housing – The City has a prac�ce of expedi�ng the permi�ng process for deed-restricted affordable units. Financial Incen�ves • Waives fees for affordable housing and ADUs – The City has adopted regula�ons to waive SDCs and development review fees for income restricted affordable housing (80% or less of AMI) and for accessory dwelling units. The City has exempted $388,073 in SDCs for ADUs since 2019. PP 22-0005 ATTACHMENT 1/PAGE 74 OF 103PP 22-0005 ATTACHMENT 1/PAGE 74 OF 103 12/27/2023 Lake Oswego Contextualized Housing Needs Assessment 28 Financial Resources • Uses urban renewal funds to support housing – The Lake Oswego Redevelopment Agency underwrote some of the costs in the North Anchor development downtown to ensure the provision of deed-restricted affordable housing units using funds from the City's urban renewal program. Land Acquisi�on, Lease, and Partnerships • Surplus City-owned land / land banking for affordable housing – The City does this with vacant or underu�lized sites, most recently the 1.4-acre construc�on staging property for the Boones Ferry Road Improvement Project. The site will be used to create 50 deed-restricted affordable housing units, using Metro Affordable Housing Bond funds. • Public-private partnerships – The City has worked with organiza�ons such as Habitat for Humanity and Mercy Housing Northwest to produce affordable housing units. • Conversion of underperforming commercial assets – The Lake Oswego Redevelopment Agency acquired the North Anchor site to convert this commercial property into a mixed-use development with affordable and market-rate housing. • U�lizing surplus land owned by faith-based organiza�on for housing – The City worked collabora�vely with the Sisters of Holy Names of Jesus and Mary (Sisters) when they were considering reuse of the former Marylhurst University Campus. Ul�mately, the Sisters entered into an agreement with Mercy Housing NW for construc�on of 100 units of affordable family housing. PP 22-0005 ATTACHMENT 1/PAGE 75 OF 103PP 22-0005 ATTACHMENT 1/PAGE 75 OF 103 MIG, Inc. | Lake Oswego Housing Production Strategy 1 of 27 APPENDIX B: PUBLIC ENGAGEMENT SUMMARY Lake Oswego Housing Production Strategy | June 14, 2024 (DRAFT) Introduction This memorandum summarizes public engagement activities that informed Lake Owego’s Housing Production Strategy (HPS). The summary includes the following: • Summary of engagement during both Housing Needs Analysis and Housing Production Strategy phases • What activities took place • Who participated (which stakeholders and other groups) • Summary of community and stakeholder input • How community and stakeholder input influenced the HPS • Recommendations for future engagement – evaluation of how to improve housing engagement practices going forward Housing Needs Analysis Engagement Winter 2022 – Fall 2023 The first phase of this project was the Housing Needs Analysis (HNA), which included preparation of a Housing Capacity Analysis (HCA) and Buildable Lands Inventory (BLI). The City provided multiple avenues for engagement activities and events during this phase, as described below. HNA Public Engagement Opportunities • Online Open House/Virtual Neighborhood Forum. The City created an Online Open House to (1) provide a summary of the project’s draft findings to date, and (2) ask for feedback on those materials, as well as participants’ opinions and priorities related to housing in Lake Oswego. The Online Open House was made available for public input from March 31 through April 24, 2023.1 • Neighborhood Forum. The City of Lake Oswego held a virtual neighborhood forum on April 6, 2023 at 5pm.2 • Housing Production Strategy Task Force. The City appointed a Task Force that included a variety of housing stakeholders, including realtors, housing development industry members, homeowners, renters, and representatives of the City’s Planning Commission, City Council, 50+ 1 For detailed survey results, see https://www.ci.oswego.or.us/WebLink/DocView.aspx?id=8&page=&repo=CityOfLakeOswego. 2 For a meeting summary, see https://www.ci.oswego.or.us/WebLink/DocView.aspx?id=36&page=&repo=CityOfLakeOswego. PP 22-0005 ATTACHMENT 1/PAGE 76 OF 103PP 22-0005 ATTACHMENT 1/PAGE 76 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 2 of 27 Advisory Board, and Transportation Advisory Board, among others. The Task Force discussed the following topics at their first three meetings: o December 16, 2022 – Project overview and work plan. o March 24, 2023 – Reviewed initial housing needs and BLI findings. o June 23, 2023 – Reviewed summary of engagement; reviewed updates to the BLI and HCA; introduced the HPS. • Planning Commission. The Lake Oswego Planning Commission discussed the HNA at work sessions on January 23 and April 10, 2023. The Planning Commission recommended approval of the HNA at a public hearing on August 28, 2023. • City Council. The Lake Oswego City Council discussed the HNA at study sessions on February 21 and April 18, 2023. The City Council recommended approval of the HNA at a public hearing on October 3, and approved the findings on October 17, 2023. The HNA was adopted via Ordinance 2934, which became effective on November 16, 2023. HNA Key Themes and Topics of Discussion Feedback from the HNA activities was incorporated into the HNA documents and also informed the later HPS work – especially the City’s focus on affordable housing strategies. Key themes related to housing needs and housing production are summarized below. AFFORDABLE HOUSING As with many other communities, housing affordability is a key concern in Lake Oswego. “Housing Affordability” and “Availability of housing for lower incomes” were the two greatest needs identified in the Online Open House survey. In a separate survey question, “Housing specifically for people with lower incomes” was the second highest choice for desired housing types. Other opinions heard include: • Some of the more affordable housing today are older homes that might be considered redevelopable by the analysis – redevelopment would likely result in more expensive homes in those locations in comparison to some of the existing homes in those areas. • The income breakdowns shown in the draft HNA seemed too focused on higher incomes, with roughly half of new housing units being affordable to those below the highest income brackets. • Providing large amounts of new affordable housing is not an appropriate role for the City. • The market will set housing prices and the government should get out of the way. When asked whether the City should play a strong role in supporting the development of housing for lower income residents, survey respondents generally said yes. The community provided a variety of opinions on the topic of what that role should entail, including: • Multi-unit housing should be concentrated in specific areas, away from single-unit housing and existing neighborhoods. • Middle housing and multi-unit housing should be integrated into all neighborhoods. • Entry-level homeownership units are needed. • Rent control/tax on house flippers/inclusionary zoning is needed. • Workforce housing is critical. A diverse community is a strong community. • Government intervention only makes things worse. • Consider tree canopy. PP 22-0005 ATTACHMENT 1/PAGE 77 OF 103PP 22-0005 ATTACHMENT 1/PAGE 77 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 3 of 27 • Preserving neighborhood character should be the top priority. • Large single detached homes are being built; this is problematic. • There are disparate impacts of development and construction across the city. • The City has taken strides toward more affordable housing recently – keep it up. AGING IN PLACE “Availability of housing that supports aging in place” was identified as a key need for Lake Oswego in the online survey. This generally means housing that has accessibility features for individuals with impaired mobility, and that is located adjacent to amenities that support a high quality of life and/or provide needed services. The affordability of housing is also a consideration, as older people who may be on fixed incomes may find it more difficult to afford to live in the community. MIDDLE HOUSING Cottage homes, also known as “cottage cluster” housing, were the most frequently chosen housing type that respondents would like to see more of in Lake Oswego. Housing Production Strategy Engagement Fall 2023 – Fall 2024 In fall 2023, the City of Lake Oswego shifted its focus to the HPS process. Similar to the HNA phase, the City provided multiple avenues for engagement activities and events for the HPS, as described below. HPS Public Engagement Opportunities • Housing Production Strategy Task Force. The HPS Task Force met five more times between fall 2023 and summer 2024. The Task Force was instrumental in shaping the strategies and approaches that are included in the HPS. The Task Force discussed the following topics at these five meetings: o October 6, 2023 – Reviewed findings from the Contextualized Housing Needs Assessment and stakeholder interviews; reviewed existing housing measures and provided input on an initial list of potential housing strategies. o December 5, 2023 – Engaged in group discussions focused on identifying housing production strategies that could best address high-priority housing needs. o February 16 and March 1, 2024 – Discussed initial recommendations for strategies to include in the HPS. At the March 1 meeting, the Task Force voted on which strategies to recommend to the Planning Commission and City Council for inclusion. o June 21, 2024 – Reviewed the Draft HPS Report. • Stakeholder Interviews. The project team interviewed stakeholders involved in various aspects of housing production in September and October 2023. See below for the list of stakeholders and key themes from those interviews. • Community Forum. On March 14, 2024 at 5 PM, the City hosted a virtual community forum using the Zoom videoconference platform to review the strategies being considered for the HPS. A total of 15 attendees participated in the forum. The forum used live polling in Zoom to get PP 22-0005 ATTACHMENT 1/PAGE 78 OF 103PP 22-0005 ATTACHMENT 1/PAGE 78 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 4 of 27 feedback in real-time to supplement the discussion to indicate their level of support. See below for a summary of polling results.3 • Online Survey. The City hosted an online survey from March 13 – 31, 2024 as a companion to the virtual Community Forum. A total of 134 participants completed the survey. The survey asked participants to indicate their level of support for various housing strategies being considered for the HPS. Respondents provided general support for all strategies that ended up in the final HPS. See below for a summary of survey results.4 • Presentations to Boards and Commissions. City staff presented to the following groups: Diversity, Equity and Inclusion Advisory Board; 50+ Advisory Board; Chamber of Commerce Government Affairs Committee; November 2023 Mayor’s Roundtable event; Fall 2023 Kruse Way Economic Forum. • Planning Commission. The Lake Oswego Planning Commission discussed the HPS at work sessions on November 13, 2023 and June 24, 2024, as well as a joint study session with the City Council on April 2, 2024. See below for a summary of results from straw polls taken at the April 2 joint study session. The Planning Commission recommended approval of the HPS at a public hearing on September 9, 2024. • City Council. In addition to the joint study session noted above, the Lake Oswego City Council discussed the HPS at study sessions on November 7, 2023 and July 16, 2024. The City Council held public hearings for adoption of the HPS on October 15 and November 5, 2024. The HPS was adopted via Ordinance ___. Stakeholder Interviews Stakeholders interviewed in fall 2023 included the following: • Market-rate developers and architects – These included local professionals involved in development of multifamily housing, middle housing, and single-family housing. o Koble Creative o Shorenstein Properties o Keith Abel Design LLC o Blue Palouse Properties • Non-profit housing providers – These providers represented both the development community and the lower-income households that may be served by their housing projects. o Habitat for Humanity o Mercy Housing Northwest • City of Lake Oswego staff o Community Development Director o Long Range Planning Manager o Redevelopment Manager 3 For detailed polling results, see https://www.ci.oswego.or.us/WebLink/DocView.aspx?id=17&page=&repo=CityOfLakeOswego. 4 For detailed survey results, see ____. PP 22-0005 ATTACHMENT 1/PAGE 79 OF 103PP 22-0005 ATTACHMENT 1/PAGE 79 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 5 of 27 The project team asked stakeholders about the city’s greatest housing needs, barriers to development of needed housing, gaps in affordable housing, and tools and strategies that would be effective in producing needed housing. Key themes from the stakeholder’s responses are summarized below. KEY HOUSING NEEDS AND GAPS IN THE MARKET • Affordable housing for low- and moderate-income households • Middle housing (e.g., townhomes, duplexes, cottage clusters) • Opportunities for aging in place • Options for more attainable homeownership (e.g., condos and middle housing) • Apartments with family-size units (2-3 bedrooms) • Multi-family housing outside the Town Center MAJOR HOUSING BARRIERS IN LAKE OSWEGO • High cost of land in Lake Oswego • Few large sites to support multi-family housing • Neighbor opposition to affordable or higher-density housing can drag out the process, adding to costs • Code barriers: o Design overlay standards are highly prescriptive – can add to cost, limit flexibility o Tree protection / tree planting and landscaping standards o Open space standards for multi-family housing o Setbacks and other standards limit middle housing feasibility • Process barriers: o Design review process in design districts adds time and cost o Building permit review can also be slow o Often need multiple variances, lengthens process and adds uncertainty • Public improvements (roads, utilities) can be very costly POTENTIALLY EFFECTIVE STRATEGIES • Density bonuses for providing public benefits, such as affordable housing or developing near transit • Code amendments to remove code barriers • More flexibility for middle housing • Streamline permitting • Simplify design standards and guidelines • Pre-approved plans • Property tax abatements for affordable housing • SDC waivers • Tax Increment Financing to support affordable housing • Land banking • Partnerships with nonprofits and faith organizations PP 22-0005 ATTACHMENT 1/PAGE 80 OF 103PP 22-0005 ATTACHMENT 1/PAGE 80 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 6 of 27 STAKEHOLDER IMPACT The feedback received from stakeholders greatly influenced the strategies included in the Housing Production Strategy. For example, the code topics addressed in the Code Audit and Amendments strategy were refined to address the barriers identified by housing developers and producers. Also, incentives and other strategies that support affordable housing development (tax abatements, TIF funding, partnerships) were shaped by these interviews. Results of Survey and Polling In March and April 2024, the City used various survey and polling tools to seek input on the strategies under consideration for the HPS. This included the online survey, Zoom polling at the virtual Community Forum, and straw polls taken at the March 1 HPS Task Force meeting and April 2 joint study session with the Planning Commission and City Council. Input from these groups was based on information provided in the Initial Strategy Recommendations Memo, and the results of the polls informed the strategies that were eventually recommended for inclusion in the Draft HPS. A general summary of the results and detailed online survey results are both included, below. Strategy Survey + Forum Task Force City Council PC Notes / Follow-up Actions Pro-Housing Policies [GENERAL] Support Support - - - Recommended Strategies Code Audit and Amendments (Z01) Support Support YES (7:0) YES (3:2) Include all strategies in Draft HPS. Two Planning Commissioners expressed concerns about the pre- approved plan sets for ADUs strategy Property tax exemptions for housing affordable to low-income households Mild Support Support Public-private partnerships for affordable housing (F04) Support Support Fair Housing Policy and Education (B14) Support Support Rezone Land (Z02) Mild Support Support Evaluate accessible design incentives or mandates (A23) Strong Support Support Use Tax Increment Financing (TIF) to support affordable housing development (D10) Split Support Affordable Housing Preservation Inventory (F19) Support Support Modify System Development (SDC) fee schedule (C02) Support Support Pre-Approved Plan Sets for ADUs (A21) Support Support Remove or Reduce Minimum Parking Requirements (B01) - - PP 22-0005 ATTACHMENT 1/PAGE 81 OF 103PP 22-0005 ATTACHMENT 1/PAGE 81 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 7 of 27 Strategies Needing Further Discussion Zoning Incentives for Affordable Housing (A03) Mild Oppose Mild Support NO (1:6) NO (1:4) Do not include in Draft HPS. There was no interest expressed by the PC or CC in combining this with the code audit strategy; only strategy opposed by public. Construction Excise Tax (CET) (D09) Mild Support Support NO (0:5) NO (0:7) Do not include in Draft HPS. Vertical Housing Development Zone Tax Abatement (E03) Mild Support Oppose NO (0:7) NO (1:4) Do not include in Draft HPS. Multiple Unit Property Tax Exemption (MUPTE) (E04) Mild Support Mild Support NO (3:4) YES (4:1) Include in Draft HPS, with criteria that would only make it available to housing with either (1) accessible design or (2) units affordable at 80-120% AMI. Pre-Approved Plan Sets for Middle Housing Typologies (A20) Mild Support Mild Support NO (0:7) NO (0:5) Do not include in Draft HPS. HPS Task Force only recommended this if paired with an affordability requirement. Contingent Strategies Housing Trust Funds (D03) - - - - Do not include in Draft HPS. PC / CC did not express interest in these strategies. Low-Interest Loans/Revolving Loan Fund (D13) Community Land Trusts (F03) Preserving Low-Cost Rental Housing to Mitigate Displacement (F05) Not Recommended Homebuyer Opportunity Limited Tax Exemption (HOLTE) - - - - Do not include in Draft HPS. PC / CC were fine with excluding this from the Draft HPS. PP 22-0005 ATTACHMENT 1/PAGE 82 OF 103PP 22-0005 ATTACHMENT 1/PAGE 82 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 8 of 27 HOUSING STRATEGY SURVEY RESULTS This section provides a summary of results from an online survey hosted by the City of Lake Oswego as part of its Housing Production Strategy (HPS). The online survey was available from March 13 – 31, 2024 and asked participants to indicate their level of support for various housing strategies being considered for the HPS. A total of 134 participants completed the survey, and additional participants responded to portions of the survey. Respondents provided a general level of support for all strategies that were included in the draft HPS. 1. Strategy: Update the Community Development Code to remove barriers to housing production Conduct a comprehensive review and update of the rules that guide housing development (the Community Development Code), to identify and remove or revise regulations that may constrain housing production. This strategy would focus on addressing requirements that overly limit flexibility, add to housing costs, and/or delay project approvals. Potential focus areas include: removing barriers to accessory dwelling units, middle housing, and multi-family housing; incentivizing smaller units; streamlining requirements in design overlay districts; and facilitating housing development in mixed-use areas. Housing Need Addressed: General need for increased housing production and housing choices. Magnitude: MODERATE – Could have a moderate, indirect impact on new housing production. 2. Strategy: Property tax exemptions for housing affordable to low-income households This strategy exempts property taxes from housing developments that are affordable to low-income households (those earning less than 60% to 80% of the median family income for the area). By reducing operating income, property tax exemptions can be a powerful tool to increase the feasibility of producing low-income housing, and perhaps increase the number of lower cost units that are feasible within a development. Housing Need Addressed: Government-subsidized affordable housing for low-income households. PP 22-0005 ATTACHMENT 1/PAGE 83 OF 103PP 22-0005 ATTACHMENT 1/PAGE 83 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 9 of 27 Magnitude: HIGH – Can have a large impact on making low-income affordable housing more feasible to develop. 3. Strategy: Public-private partnerships for affordable housing Public-private partnerships are arrangements between public and private entities (such as nonprofit or for-profit housing developers) to build housing, especially housing affordable to people with lower incomes or specific needs. Public-private partnerships can bring resources to the table that would otherwise not be available if each organization were to provide housing on its own. The City could partner with organizations to support their affordable housing efforts in a variety of ways: • Acquire land and/or donate city-owned land; • Provide grants or loans for development or rehabilitation projects; • Provide direct funding; and/or • Leverage federal, state, and regional resources. The City is already pursuing this strategy with several ongoing projects, including partnering with Habitat for Humanity on a project and also with the Sisters of Holy Names of Jesus and Mary and Mercy Housing NW in facilitating the Mercy Greenbrae affordable housing development at Marylhurst Commons. Housing Need Addressed: Government-subsidized affordable housing for low-income households. Magnitude: HIGH – Partnerships are very often a key component of a city contributing to new housing production. PP 22-0005 ATTACHMENT 1/PAGE 84 OF 103PP 22-0005 ATTACHMENT 1/PAGE 84 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 10 of 27 4. Strategy: Fair Housing Policy and Education Amend the Lake Oswego Comprehensive Plan – which guides the long-term development and growth of the city – to explicitly make Affirmatively Furthering Fair Housing an official City policy. Federal Fair Housing laws protect individuals in “protected classes” from housing discrimination – in Oregon, protected classes include race, color, national origin, religion, disability, sex (includes pregnancy), sexual orientation, gender identity, age, and marital status. Adding this as a policy would demonstrate Lake Oswego’s commitment to reversing discrimination, exclusion, and concentrations of wealth in the city. The strategy also involves other actions to educate staff and decision makers about fair housing issues, and to provide fair housing information to residents, property owners, realtors, lenders, and others involved in real estate transactions. Housing Need Addressed: This strategy would not directly address identified housing needs in most cases, but it would help prevent housing discrimination against protected classes. Magnitude: LOW – Will not directly contribute to housing production but could bolster the City’s focus on equity and affordability in its housing programs and investments. 5. Strategy: Rezone selected areas to support residential development This strategy involves rezoning commercial or other non-residentially zoned properties to allow for housing development in those areas, especially multi-family housing. It could also involve rezoning lower-density areas to allow for higher-density housing. Areas to rezone typically would include land that is close to existing high-density areas and/or existing services, and larger parcels of land. This strategy addresses the fact that the city faces a shortage of residential land across all zone types to meet long- term housing needs. Housing Need Addressed: General need for increased housing production. Could also address the shortage of higher-density land by rezoning lower-density land. Magnitude: MODERATE TO HIGH – Might be relatively high given the limited supply and high demand for buildable residential land in the community. PP 22-0005 ATTACHMENT 1/PAGE 85 OF 103PP 22-0005 ATTACHMENT 1/PAGE 85 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 11 of 27 6. Strategy: Evaluate accessible design incentives or mandates This strategy aims to increase development of housing that is accessible for seniors and people with disabilities or mobility challenges through either incentives or requirements to develop this type of housing. Potential incentives include height or density bonuses and reduced property taxes. Potential mandates include requiring a certain number of units in a multi-unit development to have enhanced accessibility. The City would need to further evaluate the feasibility and trade-offs associated with these programs before implementing a particular action. Housing Need Addressed: Housing for people with physical disabilities and mobility challenges, including seniors. Magnitude: MODERATE – Depending on how the strategy is structured, it could lead to production of a significant number of new units with accessibility features. 7. Strategy: Use Tax Increment Financing to support affordable housing development Tax increment financing, or TIF, is a way for the City to pay for projects or improvements within a certain area (an “urban renewal area” or “TIF district”), like building roads, parks, or housing. These projects make land in the area more valuable, and the City uses the extra revenue it gets from the higher property taxes to reinvest in development or redevelopment within the area. TIF can be a direct source of funding for projects that meet public goals such as affordable housing or mixed-use buildings that PP 22-0005 ATTACHMENT 1/PAGE 86 OF 103PP 22-0005 ATTACHMENT 1/PAGE 86 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 12 of 27 might not otherwise be feasible. The City has been considering expanding the use of urban renewal and TIF in Lake Oswego – particularly in the Foothills neighborhood – and could make affordable housing a priority in those efforts. Housing Need Addressed: Government-subsidized affordable housing for low-income households. Magnitude: HIGH – TIF funds would enable the City to acquire land, partner with housing providers, contribute to public improvements, and take other actions that could have a big impact on development of affordable housing in targeted areas. 8. Strategy: Affordable Housing Preservation Inventory Prepare an inventory of subsidized and other already existing affordable housing to support proactive policies intended to preserve existing affordable housing. The inventory would be used to target potential properties for implementation of an affordable housing preservation strategy. Housing Need Addressed: Housing for low-income residents. Magnitude: LOW – Will not contribute to new housing production but will contribute to the preservation of existing affordable housing. PP 22-0005 ATTACHMENT 1/PAGE 87 OF 103PP 22-0005 ATTACHMENT 1/PAGE 87 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 13 of 27 9. Strategy: Modify System Development Charge (SDC) fees so they area scaled by unit size SDCs are one-time charges on new development that help pay for the costs of expanding public facilities to serve new development. The City of Lake Oswego charges SDCs for water, sewer, parks, and transportation improvements. This strategy involves updating the way the SDCs are structured so they are tied more directly to the size of a home. This also better matches the fees to the development’s impact on the system, since smaller housing units typically have fewer occupants and therefore less impact on water, sewer, or transportation facilities. Housing need addressed: Would facilitate development of smaller, more attainable housing units that may be affordable to moderate-income and smaller households. Magnitude: LOW TO MODERATE – This tool may enable some projects to produce a greater number of smaller units, thus increasing production of more units and expand housing choices somewhat. 10. Strategy: Create pre-approved plan sets for accessory dwelling units (ADUs) Pre-approved plan sets are building plans that have been reviewed in advance for conformance with zoning and building codes. The City could make such pre-approved plans available for ADUs, which are small homes located on the same property as a single-family home. ADUs offer opportunities for family members to live on the same site but in a separate dwelling, or can be rented out, allowing the homeowners to supplement their income. Pre-approved plan sets can make ADUs easier to build and reduce costs through reduced design fees and faster permit timelines. The plan sets could also be designed to be accessible (consistent with the accessibility strategy discussed earlier). Housing Need Addressed: Increased housing choices within existing neighborhoods. Increased rental opportunities. Options for multigenerational housing. Opportunities for aging in place. Magnitude: MODERATE – Would likely lead to more development of ADUs in the city, which could increase the number of available rental properties and increase housing choices in developed neighborhoods. PP 22-0005 ATTACHMENT 1/PAGE 88 OF 103PP 22-0005 ATTACHMENT 1/PAGE 88 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 14 of 27 11. Strategy: Zoning bonuses for affordable housing This strategy involves allowing additional building height, density, or floor area, or relaxing other zoning standards for affordable housing. These types of bonuses allow affordable developers to make more efficient use of land, fit more units into a development, and make their projects more financially viable. The City already allows a limited height or density bonus for affordable developments in certain zones and could consider enhancing or expanding this program or adopting a new bonus, such as reduced open space for affordable housing. Housing Need Addressed: Government-subsidized affordable housing for low-income households. Magnitude: LOW TO MODERATE – Might lead to a small increase in the number or percentage of affordable housing units. 12. Strategy: Adopt a Construction Excise Tax (CET) to fund affordable housing projects and programs This strategy applies a tax on construction projects, and the funds generated from the tax can be used to fund affordable housing or other needed housing. Most cities using this program have adopted a CET tax of up to 1% on construction projects. Cities have options to exempt certain types of development – such as smaller units or multi-family housing – and affordable housing is already exempted. Some cities have used CET to fund new affordable development, purchase property for affordable housing, provide financial incentives, and provide down payment assistance for first-time homebuyers. CET is one of the few available locally-controlled sources of money to help fund affordable housing. PP 22-0005 ATTACHMENT 1/PAGE 89 OF 103PP 22-0005 ATTACHMENT 1/PAGE 89 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 15 of 27 Housing Need Addressed: Government-subsidized affordable housing for low-income households. Magnitude: HIGH – The revenue potential of a CET in Lake Oswego is potentially quite high and could support a significant amount affordable housing development in the city. 13. Strategy: Adopt a Vertical Housing Development Zone tax abatement in targeted areas This strategy is intended to encourage multi-story mixed-use development (ground-floor businesses with housing above) and affordable housing in areas designated by the City. The program allows a property tax reduction for 10 years, which can make mixed-use development more financially viable, as it is often a challenging form of development. Projects earn additional tax reductions if they include housing units that are affordable to low-income households. Housing Need Addressed: High-density housing in targeted areas of the city. Increased housing choices in areas with strong access to goods, services, and transit. Magnitude: LOW TO MODERATE – This program has the potential to encourage some mixed-use development in designated areas. 14. Strategy: Adopt a Multiple Unit Property Tax Exemption (MUPTE) This is a 10-year property tax exemption for multi-family or middle housing (e.g., triplexes and fourplexes) with particular features or at particular price points. MUPTE is a flexible tax abatement PP 22-0005 ATTACHMENT 1/PAGE 90 OF 103PP 22-0005 ATTACHMENT 1/PAGE 90 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 16 of 27 strategy that can be used in various ways to encourage development of specific types of needed housing. The City has broad discretion as to how to structure the program. Eligibility criteria could include requirements for affordability, accessibility/universal design, unit size, or other desirable features. Housing Need Addressed: More attainable housing choices, including multi-family and middle housing options. Could also encourage apartments with family-sized units (2-3 bedrooms) and accessible housing options for seniors and people with disabilities. Magnitude: MODERATE – Could encourage production of more multi-unit housing that meets needs not currently being met by the private market. 15. Strategy: Create pre-approved plan sets for middle housing types This is similar to the strategy of pre-approved plan sets for ADUs, except this would encourage more development of middle housing types, such as duplexes, triplexes, and cottage clusters. Pre-approved plan sets can make these housing options easier to build and reduce costs through lower design fees and faster permit timelines. This could attract developers that typically develop only single-family housing to get involved in building middle housing. The plan sets could also be designed to be accessible (consistent with the accessibility strategy discussed earlier). Housing Need Addressed: Increased housing choices, including more attainable homeownership options. Magnitude: MODERATE – Would likely lead to more development of middle housing in the city, but cost savings to builders wouldn’t necessarily translate to reduced sale prices or rents. PP 22-0005 ATTACHMENT 1/PAGE 91 OF 103PP 22-0005 ATTACHMENT 1/PAGE 91 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 17 of 27 16. Strategy: Remove or reduce minimum parking requirements – no question asked 17. Do you have any thoughts or concerns about any of the strategies described in this survey that you would like to share with the City? (open ended responses) 1. Removal of parking mandates is a bad idea. There is little rapid transit in town and individuals must get to work. Cars will be forced to park on the street in areas where there is limited street parking. 2. Don't allow developers to raze old buildings and build multi-million dollar homes making Lake Oswego unaffordable to families who want to live there. 3. The city is already becoming overwhelmed we have seen a sharp increase in traffic, as the population has increased, and this is putting a drain on services - by simply adding more affordable houses we increase the density and thereby further increase the strain on what was once a comfortably sized small city. 4. What about allowing Tiny Houses on lots with alleys? They can be added or removed as needed. A simple way to offer lower housing costs. 5. It will destroy the atmosphere and the character of the city and many people who lived here for decades will move out 6. Stop taxing us. The people living here are trying to afford staying in their homes. The constant bonds and taxes are making that very difficult. 7. Lake Oswego is a great place to live and if someone wants to live here they can find a way, like I did. Like we all did. I am not rich, far from it. Where was our hand out? That is what you are creating. Keep it fair, will you subsidize ALL of the lower income families in Lake Oswego? Will you reduce my taxes when I retire and they become a massive burden? People need to work harder and make it on their own. Sorry sometimes you need to live in an area you can afford. The crying of unfairness is getting old, I want a new Lexus, but I don't ask the manufacturer to reduce rates or give me a deal, I buy a Toyota. The city needs to stay far away from playing in the real estate business let the private sector do that. PP 22-0005 ATTACHMENT 1/PAGE 92 OF 103PP 22-0005 ATTACHMENT 1/PAGE 92 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 18 of 27 8. It seems that the cities options for affordable house only consist of apartments or attached houses. What about people who want to have a home that is standalone. Perhaps it would be worth looking into all the developers who buy smaller affordable homes and turn them into huge expensive monstrosity. They are literally taking affordable homes out of the hands of people in Lake Oswego. 9. I would like to know if it's been taken in to account how all this construction will affect the surrounding nature density? Is there a requirement for preserving our tree canopy? What is the environmental impact of all this proposed construction? The natural beauty of this are is important! Please consider an initiative regarding tree replacement! Perhaps a requirement that if one is cut one, one must be planted. 10. The city should consider goal 5 (natural resources) and goal 1 (citizen input) of the comp plan as it relates to the environmental impact of housing. These decisions cannot be made in a "silo". The comp plan is mentioned once in this survey - in strategy number four relating to fairness in housing. The city should not cherry pick portions of the comp plan to suit developers or appear DEI-minded. If we have an environment with noise and air pollution, and increased heat, and disconnection from trees and insects and birds, we can have all the houses in the world, but we will be unhappy due to increased crime, reduced property values, and physical, mental, and spiritual illness. 11. Either one can afford to live in a certain city or not. It's out of control to mandate government to implement services/policies to accommodate those who can't. It's really that simple. 12. Concerns with loss of unique characteristics of neighborhoods. Loss of older homes and mature tree canopy. New builds that lack character or charm and are built with low quality materials. 13. I really just would like to see more new housing of any type built in LO (this includes and is not limited to any and all new apartment buildings of any visual appearance built anywhere in the city). I have lived in LO my whole life, but as a college student about to enter the workforce, I'm concerned I'll never be able to buy or rent anywhere in LO because of the rising costs (and while I never expect LO to be a cheap place to live, I think it should be a possibility for people like me making near the US median salary). I think increasing the supply of new housing should be the #1 priority of the city with these plans, and I see cities like Austin, TX as success stories for reducing the rent burden of their residents by allowing the building of tens of thousands of new housing units — resulting in significant decreases in rent prices. I also see multi-unit dwellings as a bonus for the City of Lake Oswego, because they add multiple new citizens to the city's tax base, while requiring public service expenditures that are far less per citizen (than in a comparable number of people in single family homes) because of the housing density. 14. Strategy #16 did not have a response option, although I support it fully, so long as the city continues its commitment to regionally integrated mass transportation and bicycling lanes. 15. You can easily address housing issues for seniors on fixed incomes by providing property tax discounts for people over 65 and provide homestead property tax exemption to encourage home ownership rather than rental. 16. Do not reduce parking or build high rise buildings. Schools will be impacted by more families so it is sometime to consider. As well as increased traffic. 17. This important project has s in the right track. Keep moving forward with a sense of urgency. 18. Na PP 22-0005 ATTACHMENT 1/PAGE 93 OF 103PP 22-0005 ATTACHMENT 1/PAGE 93 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 19 of 27 19. 1.) I strongly support removing minimum parking requirements 2.) As a low income senior dependent on Social Security, the burden of meeting my property taxes is becoming almost impossible. I have owned my house for a long time and would like to age in place. I don't want to be forced out of my home because I cannot afford the taxes. 20. Recommend changes to strict protections for trees in our city to allow home owners to build more ADUs and middle housing on their land. 21. There needs to be more options for seniors so they can stay in LO. There is no real tax breaks for seniors as the deferred property tax is just a loan that has to be paid back. I support housing for low income/moderate income households. Start with the seniors, they have been paying property taxes for 50 years and need a break to age in place. This state is very backwards on tax breaks for seniors. 22. I think that the approach to most construction for existing homeowners is restrictive by the City. For example, ADUs should not have the restrictions on them. The City should be working with community members not making it impossible for anyone to modify their property as they feel fit, obviously safely. 23. Removing parking is a mistake that will lead to increased engine idling due to congestion and decreased pedestrian safety for a generation as businesses are choked through lack of customer space. It will make the city less accessible to elders and families. Can the city designate mandatory "waiting spaces"? It's already hard to pick up and drop off my children from dance, which I certainly can't do by bicycle with my three other children under 10 in tow. Less space for vehicular movement means less commerce and less tax revenue. 24. Reduced parking needs to be offset with enhancement to public transportation 25. I strongly disagree with reducing parking requirements as part of developing middle/affordable housing. I also strongly disagree with the City's continuing to allow greedy developers (e.g. Monogram and Renaissance) to purchase perfectly good, relatively affordable homes, destroy the houses, and erect over-sized, highly-priced, mcmonster houses in their place. 26. Concerns - need to have parking to support multi family housing. Most residents living in these units will have at least one car. Also concerned that traffic will increase significantly with these plans. - LOSD class sizes are already too large; not sure how the schools can support big increases in multi family housing especially if property tax exemptions are made. - preserving our parks and green spaces needs to be a priority. 27. this last state mandate strongly concerns me as someone who is disabled 28. It's pretty simple, Lake Oswego is expensive. You can build 5 low income units in LO for the same price you can build 20 elsewhere. Every measure proposed is increasing our density and increasing costs of living for those in our community while infrastructure gets no improvements. Those living here will reach a point they can longer afford to age in place forcing their sale of what has been their family home. Traffic continues to increase with no additional roads or improvement to roads occurs. The planning department and existing codes do not allow homeowners to build what they choose due to a myriad of rules that will all be thrown out the window if one chooses to add a home via ADU, why is this ok when you won't even allow a second kitchen in a home? I am aware of the State's housing requirements but they DO NOT FIT OUR COMMUNITY! People work hard and pay a fortune to live here, our property taxes alone are higher than many pay for mortgage and everything you are proposing will simply increases costs while reducing the quality of our community and the quality of life in our community. PP 22-0005 ATTACHMENT 1/PAGE 94 OF 103PP 22-0005 ATTACHMENT 1/PAGE 94 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 20 of 27 29. My family and many other community members are concerned about the city taking our parks, like Springbrook and Waluga, and turning them into housing developments. Kids use Springbrook to walk to school, explore, connect with nature, run trails during gym class, and bike. It's also home to many animals. It's a treasured part of the community by kids and adults. Our parks are a big part of what make LO unique and beautiful. Please don't take Springbrook annd other parks away from the community. 30. The City is beholden to large developers of large houses because their construction generates greater taxes, most of which (greater than 50% of my tax bill) go toward LOSD bonds. We would have been wise to use some of the land in First Addition where older homes were demolished and large new trendy homes were built, and devote them to multi-family dwellings like townhomes. Public transit is almost non-existent in LO without driving to a transit mall or to a neighborhood with a bus stop and on-street parking. Tri-Met schedules are infrequent, inconvenient, and the rides are long. Affordable housing and/or middle-income housing doesn't make sense unless they are near public housing, especially if we are required to reduce or eliminate the already low parking inventory. Thinking logically, there are almost always 2 drivers per household, and almost always 2 vehicles because, in order to afford housing costs, there are 2 workers per household. That means there needs to be 2 parking spaces per household or living unit. If the household has student drivers with vehicles, you need more space. Through eminent domain, the City forced out a couple of businesses so they could rebuild the water treatment plant, which idea has since been scrapped. But the land is still being considered for affordable/middle-income waterfront housing? Seriously? The large plats of land that are available, and there aren't many, are in zoned industrial areas. This reminds me of the Projects of Chicago, Detroit and New York, or "Planned Ghettos". In addition, we do not have the infrastructure in place to handle our current population much less an increased one due to an increased number of housing units. I understand the Governor has mandated changes and I don't think she fully grasps the magnitude of the negative effect on Lake Oswego's livability. As one of those people trying to "age in place", I fully appreciate what our current inventory lacks in terms of places for me to move when the time comes. I can't afford to live anywhere other than my mortgage-free 2-story home. The "creep" effect of our proximity to Portland has brought more people to LO panhandling in parking lots and on sidewalks and generally undesirable- looking people wandering around our neighborhoods. And by that description I mean a young white male with falling jeans and bare chest stumbling down the hill near Kruse Way Place at Boones Ferry Road (it was about 45 that day), or another young white male in a dark hoody and extremely baggy pants grabbing his pants to keep from exposing himself. I have never seen this type of thing in the 37 years I have lived here. I'd like to keep LO livable, and I'd like to continue to feel safe here so whatever strategies the City ultimately adopts, I hope they don't negatively impact my, and others' feeling of well-being. A challenge to be sure and thank you for the opportunity to share my opinion. 31. I think the State mandated rule to "Remove or reduce minimum parking requirements" is an extremely bad idea. This will push drivers to park in residential neighborhoods causing friction between the neighborhood, businesses, pedestrians and future home owners. I see this as a first step toward going to a permit system to park in front of my own house. 32. While I generally support increased housing for those in need, it is difficult to support an increase in housing in Lake Oswego without also expanding our infrastructure to accommodate PP 22-0005 ATTACHMENT 1/PAGE 95 OF 103PP 22-0005 ATTACHMENT 1/PAGE 95 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 21 of 27 an influx of 1000 people. This is a relatively small town, without amenities a large city offers. There are regions in Oregon with expansive land...why aren't we creating new clusters of low income housing in areas that can manage a massive influx of cars and people with daily living needs? Why are we needing to cram everyone in to these area/towns with over loaded capacity? I realize we can't reverse federal laws, but whatever can be done to minimize the impact on Lake Oswegos charm and livability, should be prioritized. The Mercato Grove which has "unaffordable" housing and is mixed use, is a complete eyesore because of its height and grandiose size,and robs our city of its natural beauty. The parking area in the center should be a piazza where people can gather. The strategies described in this survey all seem to diminish quality of life in Lake Oswego. I am not sure what the answers are, but I lean towards cottage clusters, built near downtown or Foothills, over massive apt buildings any day. 33. In general, I am opposed to government subsidy of new house, or rezoning to increase density. I prefer seeing further development outside of Lake Oswego where the natural setting has already been obliterated by suburban development. 34. Limit teardowns! 35. More affordable house typically leads to more litter, vandalism and crime. Lake Oswego doesn't necessarily need to adopt liberal housing policies just because Portland does. 36. Of the 40 percent of current households with incomes less than $100K, how many are owned by retired folks who are living in their homes with no mortgage. Protecting those generally older homes and affordability for seniors should be an important consideration. 37. It's a mistake to reduce parking. There's not enough safe public transit. Even in Portland, the MAX runs without transit police and when I commuted by MAX I felt unsafe on many occasions and I'm no stranger to big cities. In LO we just have a few bus routes. We're a car-centric city. 38. Reduce property taxes for seniors living on fixed income, utility bills also!!!! 39. As a lifelong LO resident, I have no problem with encouraging more ADUs, low income residences and bringing that diverse population into LO. 40. The parking issue is a major concern for me. The City cannot put its head in the sand and think for one minute that people don't have cars. You MUST provide adequate parking for the housing that is being built. This includes the hotel project at 1st and B. I believe that the City is ignoring the impact on current residents when it is reducing the required number of parking spaces. PLEASE WAKE UP AND CHANGE THIS WAY OF THINKING!!! I don't care that it costs more for developers to build adequate parking. I don't care that you can't have as many housing units if you also build parking. The people who live there NOW should be treated with more consideration. 41. This type of social engineering always has more negative, if unintentioned, consequences than benefits. It is a massive waste of resources that has no measurable benefits for current resident/taxpayers and greatly expands the role of government in our lives. The primary roles of local government are public safety, providing adequate and safe infrastructure, fair and effective land use and ensuring a public environment where environmentally friendly space is made available for recreation. The rest is mostly political ideology. 42. I like the idea of middle housing, but do not like the pre approved plans idea because I don't want to see the same clusters all over town. I like them to be unique to the area and neighborhood. PP 22-0005 ATTACHMENT 1/PAGE 96 OF 103PP 22-0005 ATTACHMENT 1/PAGE 96 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 22 of 27 43. Based on my experience as a Lake Oswego homeowner and history of working with low income populations I have a couple of thoughts: 1) increase/preserve starter homes that allow and promote home ownership by low and moderate income families with children and a pathway to our rich resources LO (parks, schools, etc.) 2) Identify what role developers can play beyond just making a profit 3) Keep engaging residents 44. Well prepared proposals and survey! 45. Lake Oswego does not need more housing. 46. Turning Lake Oswego into Portland's Pearl District is a major concern for me, a 30 yr resident. 47. Builders need to build simple, homes with good bones. Cut out the granite countertops but keep well insulated walls. No more flashy homes that are out of financial reach. & Yes we need parking. 2 per unit. & charging stations in apartment complexes. Limit corporate ownership for renting so more affordable to buy. 48. Lowering our existing home values, creating population density and infrastructure issues by adding more people. I'm strongly opposed to these ideas which is basically trying to sell overdevelopment in the. name of fair, affordable housing. Not everyone can afford everywhere, it's ridiculous to make towns forced to add cheaper housing than the market allows 49. STOP BUILDING MULTI MILLION DOLLAR HOMES AND CONDOS. You all are complete idiots. Stop building unaffordable e 50. Glad to see any and all housing in LO! 51. Our housing shortage is 100% due to 50 years of restrictive zoning. Open up all LO neighborhoods to any development and stop nitpicking. Setbacks, FAR, driveway and garage regulations? Gatekeeping, homogenous NIMBY BS. Throw away Euclidean zoning and let LO change according to its needs NOW, not 50 years ago. 52. I feel that the current water rates are inequitable and don't align with LO's affordable housing goals. One way to support affordable housing and lower income residents like myself would be a reevaluation of water and sewer charges. I live alone, shower every other day, do 2 loads of laundry per week, 3 dishwasher loads. I don't have a driveway and I live in a small townhome so my surface/stormwater impact is minimal. I also don't water a lawn because I don't have a yard. And yet my water bill is only $10 a month less than a family of 3 that I know who live on a double lot with a home, garage and additional outbuilding. People like me are subsidizing the water bills of more affluent people with huge stormwater impacts from long driveways and roofs covering 5000 square foot homes. Plus their high water usage for pools, lawns and family water needs barely moves up their water costs. Because the base rate is the same for all people regardless of their property size, usage and income level, the system is set up to reward the wealthy while putting an unfair burden on lower income people. I currently have zero incentive to conserve water as I could let my tap run all day and my bill would hardly increase at all. I think there needs to be a tiered base rate system that addresses property size, surface area for stormwater runoff and income level. And an incentivized lower usage rate for people who's usage falls below a certain amount. 53. Any incentives should only apply to affordable units, not market rate dwellings. There should be a strategy to leverage regional and state resources and partnerships. 54. My biggest concern is control of security and crime. How do we ensure our city stays safe? And - how do we ensure we avoid homelessness issues? 55. Please don't ruin our community! PP 22-0005 ATTACHMENT 1/PAGE 97 OF 103PP 22-0005 ATTACHMENT 1/PAGE 97 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 23 of 27 56. get rid of rent control. 98 % of economists say it is a bad idea. Get rid of the tree code. It is counter-productive to a healthy urban forest. becauseof it no one plants trees that will grow large. with no new trees the forest will end. 57. This issue has been under discussion for decades. I hope this survey/project actually leads to...something? Someday? 58. We struggle with finding parking as it is in Lake Grove, and you want to take that away? My clients are seniors and had to walk two blocks just to eat at Gubanc's after the Vity took up the parking, there has to be a better way. 59. Housing cost is extremely high. How about a rent break on taxes? 60. The location of high density needs to be where there is transportation and grocery options 61. Support services (schools, emergency services, grocery, restaurants, parking, more traffic solutions and so much more) must be planned for with any new housing that may be considered. 62. Reducing parking is a problem. It should only be done for housing along public transit lines. 63. I am concerned about losing the character of Lake Oswego for sake of new development. I'm concerned that we will lose our natural beauty and spaciousness. More development means more traffic, more strain on community systems, and ultimately, a more crowded place to live. I oppose the assumption here that Lake Oswego needs to develop more housing. Development control has more or less worked to preserve the small town feel and beauty here for years. 64. As many other Oregon cities have with Middle Housing and in general code, Lake Oswego needs to include detached units (duplexes, etc) and encourage universal design. Demographic Questions 1. What is your relationship to Lake Oswego? Check all that apply. 2. Do you rent or own your home? PP 22-0005 ATTACHMENT 1/PAGE 98 OF 103PP 22-0005 ATTACHMENT 1/PAGE 98 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 24 of 27 3. What type of housing do you currently live in? 4. What is your age? PP 22-0005 ATTACHMENT 1/PAGE 99 OF 103PP 22-0005 ATTACHMENT 1/PAGE 99 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 25 of 27 5. What is your approximate household income (before taxes)? 6. What is your race/ethnicity? Check all that apply. PP 22-0005 ATTACHMENT 1/PAGE 100 OF 103PP 22-0005 ATTACHMENT 1/PAGE 100 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 26 of 27 7. What is the highest level of education you’ve received? Engagement Evaluation Even though this project included a thorough engagement effort, with various opportunities for community members and stakeholders to participate, there are opportunities for improvement in future engagement practices. The city did include members of historically underrepresented groups and marginalized communities – including renters and people of color – as part of the HPS Task Force, and also engaged these communities through discussions with the Diversity, Equity and Inclusion Advisory Board. However, the City could make more efforts to more directly engage with these communities, for example, through PP 22-0005 ATTACHMENT 1/PAGE 101 OF 103PP 22-0005 ATTACHMENT 1/PAGE 101 OF 103 Public Engagement Summary (DRAFT) 6/14/2024 MIG, Inc. | Lake Oswego Housing Production Strategy 27 of 27 targeted focus groups. The City could consider partnering with organizations that specialize in that type of engagement – such as organizations that work with Hispanic and Latino or other culturally-specific communities. Also, the city lacks tools and platforms that make virtual/hybrid participation accessible and engaging for everyone. The project incorporated some tools (e.g., the Alchemer survey platform and Zoom) to engage community members virtually. However, in the future, a virtual engagement platform like Bang the Table could make virtual engagement more accessible to those who cannot attend or commit to an event/meeting at a set date and time, and could facilitate more robust community conversations. PP 22-0005 ATTACHMENT 1/PAGE 102 OF 103PP 22-0005 ATTACHMENT 1/PAGE 102 OF 103 Lake Oswego Housing Production Strategy APPENDIX C: PRE-HPS SURVEY RESULTS (To be added at a later date) PP 22-0005 ATTACHMENT 1/PAGE 103 OF 103PP 22-0005 ATTACHMENT 1/PAGE 103 OF 103 May 1, 2024 Re: HOLTE in Lake Oswego Dear Mayor Buck and Lake Oswego City Council, We are writing to commend the City of Lake Oswego and the Housing Production Strategies Taskforce for considering property tax tools to make affordable housing development more viable and we’d like to propose an additional strategy geared towards catalyzing affordable homeownership. With steep interest rates and escalating construction costs, homeownership is farther out of reach for low- and moderate-income households and building affordable homes for sale requires increasingly complex financing. The HOLTE program, which provides a 10-year property tax exemption on the improvements for lower-income homebuyers in new, affordably priced homes, allows Habitat to partner with families for whom homeownership is a truly transformational opportunity. Currently, Portland is the only city in our program’s footprint that has implemented HOLTE. HOLTE makes homeownership work for lower-income households because a reduction in property taxes translates into increased purchasing power. For some families who partner with our program to buy a home, this savings is the critical difference that allows the household to qualify for an affordable mortgage. In consultation with the Clackamas County Tax Assessor, we have estimated that our homeowners in the Habitat for Humanity West Lake Grove development in Lake Oswego will pay property taxes of $333/month for 3-bedroom homes and $375/month for 4-bedroom homes. To set homebuyers up for success, their total monthly payment (mortgage principal & interest, HOA fee, Proud Ground fee, insurance, and property taxes) should be 30% of their monthly income. Every lever that can reduce those monthly costs lowers the income threshold that families need to meet to qualify for a mortgage. The West Lake Grove Townhomes will be established as part of the Community Land Trust, in partnership with Proud Ground. Resale restrictions attached to the deed keep Community Land Trust properties affordable in perpetuity. Those affordability restrictions reduce the property’s appraised value and come with a property tax discount. That helps, but $333-$375 per month is still a significant cost for families with limited disposable income. PP 22-0005 ATTACHMENT 2/PAGE 1 OF 2 ATTACHMENT 2 Habitat Portland Region supports the City’s swift action to implement a nonprofit low-income housing property tax abatement. That program, however, will not impact the property taxes that Habitat homeowners pay; once Habitat homes are sold, they are owned by the homeowners, not a nonprofit. Homeownership remains our country’s most proven strategy for long-term housing stability and generational wealth-building. The stability of a fixed affordable mortgage allows families to save for emergencies and college, and to pass an asset to the next generation. Given rapidly escalating housing costs, our region needs to embrace an array of proactive strategies so that homeownership is not just an exclusive privilege for a select few. We hope you’ll consider HOLTE. Thank you for your service to the community. Steve Messinetii President & CEO Habitat for Humanity Portland Region PP 22-0005 ATTACHMENT 2/PAGE 2 OF 2 LAKE OSWEGO HOUSING PRODUCTION STRATEGY Initial Housing Strategy Recommendations Memo | February 8, 2024 Introduc�on This memorandum provides an evalua�on and ini�al recommenda�ons for the housing strategies that the City of Lake Oswego may consider as part of its Housing Produc�on Strategy (HPS). These are poten�al strategies that the City and its partners can employ to address Lake Oswego’s current and future housing needs, as iden�fied in the recently-completed Housing Needs Analysis (HNA). This memo builds on prior work by City staff, consultants, and the HPS Task Force. The Task Force reviewed the “Strategy Alterna�ves Memo” at their mee�ng on December 8, 2023. At that mee�ng, the Task Force formed breakout groups to discuss which housing strategies could best address high-priority housing needs iden�fied in the HNA – Government-subsidized affordable housing units affordable to people with very low or low incomes; Housing affordable to households with moderate incomes; Housing op�ons / choices to meet a full range of household needs and preferences; and Housing for seniors and opportuni�es for seniors, people with disabili�es, and aging in place. Based on this feedback, and on further evalua�on of each strategy’s poten�al impact and feasibility, the project team has provided ini�al recommenda�ons for which strategies to include in the HPS. MEMO ORGANIZATION This memo is organized into the following four sec�ons: 1.Recommended Strategies The project team’s ini�al recommenda�on is to include these strategies in the HPS. These strategies have either received clear support from the HPS Task Force, City Council, and HPS Task Force; have a low-barrier to implementa�on; and/or are expected to have a moderate to high impact on housing produc�on. 2.Strategies Needing Further Discussion These strategies need further discussion by the HPS Task Force, Planning Commission, and City Council before the project team can make a recommenda�on as to whether they should be included in the HPS. If adopted, these strategies could have a meaningful impact on housing produc�on. 3.Con�ngent Strategies These are various ways that the City could allocate funds to support affordable housing produc�on or preserva�on. Each of these strategies are con�ngent on adop�on of a new funding source, such as Construc�on Excise Tax, for the City to par�cipate meaningfully 4.Not Recommended These strategies are not recommended for implementa�on in the HPS because they are not PP 22-0005 ATTACHMENT 3/PAGE 1 OF 42 ATTACHMENT 3 expected to have a meaningful impact on housing produc�on. Currently, only one strategy is included in this category. STRATEGY EVALUATION This report provides addi�onal background informa�on for each of the housing strategies included in the “Strategy Alterna�ves Memo” and takes a closer look at the poten�al impacts to housing supply/affordability, benefits and burdens on priority popula�ons, feasibility, and ac�ons needed for implementa�on. The summary of each housing strategy includes the following informa�on: Descrip�on What is the strategy? How can the strategy work to address iden�fied housing needs in Lake Oswego? What are poten�al outcomes? Considera�ons What poten�al op�ons, funding needs, challenges, etc. are applicable to the strategy? Are there poten�al trade-offs or nega�ve externali�es to consider? How feasible is this strategy, given other considera�ons? An�cipated Impact What is the an�cipated impact of the strategy? The following types of impacts are considered: •Housing need addressed – Housing need iden�fied in the HNA that is addressed by the strategy •Popula�ons served by the strategy •Income levels addressed by the strategy •Benefits and burdens that priority popula�ons may receive from the strategy. Priority popula�ons include low-income households, people of color, people with disabili�es, seniors, and other state or federal protected classes. •Housing tenure (either owner or renter) •Magnitude of the ac�on for producing new housing: o Low impact: The strategy is unlikely to meet the relevant housing need. A low impact strategy does not mean an ac�on is unimportant. Some ac�ons are necessary but not sufficient to produce new housing. o Moderate impact: The strategy either may have a moderate impact on mee�ng the relevant housing need or be designed to target that need. o High impact: The strategy may directly benefit a certain housing need and is likely to be most effec�ve at mee�ng that need rela�ve to other strategies. Time Frame Implementa�on: When does the City expect the ac�on to be adopted and implemented? Strategies are iden�fied as Near Term (1-3 years), Medium Term (within 3-5 years), and Longer Term (>5 years) ac�ons. Impact: Over what �me period will the impact occur? Implementa�on Ac�ons What ac�ons will the City and other stakeholders need to take to implement the strategy? Lead & Partners Who will be responsible for implemen�ng the strategy? What partnerships might be necessary or beneficial to the strategy? PP 22-0005 ATTACHMENT 3/PAGE 2 OF 42 Summary of Housing Strategies Strategy DLCD Category* Implementa�on Time Frame 1.Recommended Strategies 1.1 Code Audit and Amendments (Z01) Z. Custom Op�ons Near Term 1.2 Remove or Reduce Minimum Parking Requirements (B01) B. Reducing Regulatory Impediments Near Term 1.3 Nonprofit Low-Income Housing Exemp�on (E01) E. Tax Exemp�on and Abatement Near Term 1.4 Low-Income Rental Housing Tax Exemp�on (E02) E. Tax Exemp�on and Abatement Near Term 1.5 Public-private partnerships for affordable housing (F04) F. Land, Acquisi�on, Lease, and Partnerships Near Term 1.6 Fair Housing Policy and Educa�on (B14) B. Reducing Regulatory Impediments Near Term 1.7 Rezone Land (Z02) Z. Custom Op�ons Medium Term 1.8 Evaluate accessible design incen�ves or mandates (A23) A. Zoning and Code Changes Medium Term 1.9 Use Tax Increment Financing (TIF ) to support affordable housing development (D10) D. Financial Resources Medium Term 1.10 Affordable Housing Preserva�on Inventory (F19) F. Land, Acquisi�on, Lease, and Partnerships Medium Term 1.11 Modify System Development (SDC) fee schedule (C02) C. Financial Incen�ves Longer Term 1.12 Pre-Approved Plan Sets for ADUs (A21) A. Zoning and Code Changes Longer Term 2.Strategies Needing Further Discussion 2.1 Zoning Incen�ves for Affordable Housing (A03) A. Zoning and Code Changes TBD 2.2 Construc�on Excise Tax (CET) (D09) D. Financial Resources TBD 2.3 Ver�cal Housing Development Zone Tax Abatement (E03) E. Tax Exemp�on and Abatement TBD 2.4 Mul�ple Unit Property Tax Exemp�on (MUPTE) (E04) E. Tax Exemp�on and Abatement TBD 2.5 Pre-Approved Plan Sets for Middle Housing Typologies (A20) A. Zoning and Code Changes TBD 3.Con�ngent Strategies 3.1 Housing Trust Funds (D03) D. Financial Resources Con�ngent 3.2 Low-Interest Loans/Revolving Loan Fund (D13) D. Financial Resources Con�ngent 3.3 Community Land Trusts (F03) F. Land, Acquisi�on, Lease, and Partnerships Con�ngent 3.4 Preserving Low-Cost Rental Housing to Mi�gate Displacement (F05) F. Land, Acquisi�on, Lease, and Partnerships Con�ngent 4. Not Recommended 4.1 Homebuyer Opportunity Limited Tax Exemp�on Program (HOLTE) (E06) E. Tax Exemp�on and Abatement N/A PP 22-0005 ATTACHMENT 3/PAGE 3 OF 42 *DLCD Category refers to the type of ac�on each strategy entails, according to DLCD’s Housing Produc�on Strategy Guidance Document 1): A.Zoning and Code Changes B.Reduce Regulatory Impediments C. Financial Incen�ves D.Financial Resources E.Tax Exemp�on and Abatement F.Land, Acquisi�on, Lease, and Partnerships Z.Custom Op�ons 1.Recommended Strategies The following recommended strategies have either received clear support from the HPS Task Force, City Council, and HPS Task Force; have a low-barrier to implementa�on; and/or are expected to have a moderate to high impact on housing produc�on. Recommended strategies are organized into Near-Term, Medium-Term, and Longer-Term strategies. NEAR-TERM STRATEGIES The project team’s ini�al recommenda�on is to implement the following strategies in the Near Term (1-3 years a�er HPS adop�on). 1.1 Code Audit and Amendments (Z01) Descrip�on Undertake a comprehensive audit of the Community Development Code (CDC) to iden�fy and eliminate barriers to housing produc�on. The CDC audit could poten�ally address: •Barriers to accessory dwelling units (ADUs) and middle housing; •Ways to facilitate smaller units; •Procedural requirements that add cost and delay to land use approvals; •Open space requirements in high-density zones; •Barriers to residen�al development within mixed-use districts; •The impact of neighborhood overlays or other regulatory provisions; and •Other iden�fied Code barriers. Considera�ons • This strategy could help reduce or eliminate some of the major code and procedural barriers iden�fied by housing stakeholders. 1 For each strategy, the corresponding strategy number from DLCD’s List of HPS Tools, Actions, and Policies is indicated in (parentheses). PP 22-0005 ATTACHMENT 3/PAGE 4 OF 42 •The strategy could be shaped to priori�ze housing types iden�fied as most needed in the city, based on the City’s recently adopted HNA and stakeholder input, such as: o Middle housing (e.g., townhomes, duplexes, and cotage clusters) o Apartments with family-size units (2-3 bedrooms) o Mul�-family housing (of any size) o Smaller homes •Simply removing code barriers will not lead to housing development. This strategy should be paired with others that directly influence housing produc�on. •There may be neighborhood resistance to this strategy, par�cularly for any code amendments intended to modify exis�ng neighborhood overlays or neighborhood planning efforts. Extensive community engagement would be necessary. An�cipated Impact •Housing need addressed: General need for increased housing produc�on and increased housing choices. The HNA indicates that nearly 2,000 new housing units will be needed by 2043. This strategy could also specifically address the needs for mul�-family housing, middle housing, and smaller units such as ADUs. •Popula�on served: Low to higher-income households •Income level: All income levels •Benefits and Burdens: This strategy is broad, and therefore difficult to evaluate in terms of benefits and burdens for priority popula�ons. However, it does give the opportunity to target efforts in beneficial areas such as reducing barriers to affordable development or housing that is more atainable to low- and moderate-income households (e.g., mul�-family and middle housing); facilita�ng smaller housing op�ons such as ADUs, which could benefit seniors; and other areas aimed at helping priority popula�ons. In addi�on, increasing overall housing supply can help keep housing costs down by balancing supply and demand, which benefits all residents, including priority popula�ons. However, because the strategy is intended to increase housing produc�on overall, it could primarily benefit upper income households, while leaving less land available for more affordable housing. Implementa�on of this strategy should include a focus on mee�ng the needs of housing types that benefit low- and moderate-income households, seniors, and other priority popula�ons. •Housing tenure: For rent or sale •Magnitude: Moderate – This strategy could have a moderate impact on new housing produc�on given the limited remaining inventory of buildable residen�al lands. The low inventory and rela�vely high land prices in Lake Oswego incen�vize making more intensive use of remaining sites, if the code permits it. PP 22-0005 ATTACHMENT 3/PAGE 5 OF 42 Time Frame Implementa�on: Near Term Impact: The ac�on can begin to have impact a�er it is implemented in the CDC. However, the impact on housing development is expected to be longer-term. Implementa�on Ac�ons •Iden�fy priori�es for the code audit, focusing on high-priority housing needs. •Conduct a comprehensive CDC audit, poten�ally with support from a consultant. •Work with developers/housing stakeholders and residents to vet poten�al CDC amendments. •Work with Lake Oswego’s Planning Commission and City Council to adopt code amendments. •City Council Ac�on: Legisla�ve CDC text amendments. Lead & Partners Lead: Lake Oswego Community Development Partners: Developer and housing stakeholders 1.2 Remove or reduce minimum parking requirements (B01) Descrip�on Removing parking requirements for residen�al uses provides the opportunity to reduce the amount of lot area used for pavement and storage of vehicles and provides more space for housing and open space. This strategy offers greater flexibility to site housing and reduces costs associated with providing parking. The City is not enforcing minimum parking requirements within 1/2-mile of priority transit, which includes the en�re Downtown Town Center, and will likely remove minimum parking requirements in the City's other climate-friendly area (Lake Grove Village Center) to comply with state rules on Climate Friendly and Equitable Communi�es (CFEC). There is interest from City Council in poten�ally repealing minimum parking requirements citywide. Considera�ons • Parking mandates are o�en cited as a major barrier for market-rate mul�- dwelling and regulated affordable housing. •Developers o�en choose to provide parking, even if not required. Lenders/investors may require some parking to ensure marketability of units. •There could be community opposi�on to removing all parking mandates, due to the poten�al for higher usage of on-street parking and the poten�al for parking overflow from commercial areas to residen�al neighborhoods. An�cipated Impact •Housing Need Addressed: General need for increased housing produc�on. This strategy would especially benefit produc�on of mul�-family and government-subsidized affordable housing. •Popula�on served: Especially beneficial to low- to moderate- income households •Income level: All income levels – especially 30-120% AMI PP 22-0005 ATTACHMENT 3/PAGE 6 OF 42 •Benefits and Burdens: This strategy has the poten�al to benefit low-income households and people of color by removing parking mandates as a barrier to development of affordable housing. Access to convenient parking has been raised as an important need for people with disabili�es; therefore, removing parking mandates could poten�ally burden those popula�ons if parking is not provided. The City could consider encouraging property owners to provide parking for people with disabili�es and set policy on when on-street parking designated for people with disabili�es is appropriate. On the other hand, some people with disabili�es are unable to drive and could benefit from removing addi�onal costs associated with parking. •Housing tenure: For rent or sale •Magnitude: High – This ac�on is likely to have the most impact on market- rate mul�-family and regulated affordable housing. Parking mandates are o�en cited as a major barrier for those types of development. Reduced parking o�en allows for greater density (i.e., addi�onal housing) on a site, improving the financial feasibility via replacing the sunk cost of building and maintaining the parking area, with addi�onal revenue-genera�ng space. Reduced parking also allows developers to be more crea�ve with site planning and design features in general, o�en improving the aesthe�cs and func�onality of a property as well. Time Frame Implementa�on: Near Term Impact: The ac�on will begin to have impact as soon as the parking mandates are removed. Impacts to housing produc�on are expected to be longer term. Implementa�on Ac�ons •Conduct outreach and educa�on related to parking mandates. •Work with Lake Oswego’s Planning Commission and City Council to adopt code amendments. •City Council Ac�on: Adopt Development Code text amendments. Lead & Partners Lead: Lake Oswego Community Development Partners: N/A 1.3 Nonprofit Low-Income Housing Tax Exemp�on (E01) NOTE: The project team’s ini�al recommenda�on is to implement either or both the Nonprofit Low- Income Housing Tax Exemp�on and/or the Low-Income Rental Housing Tax exemp�on. Descrip�on This tax exemp�on benefits low-income residents by allevia�ng the property tax burden on those organiza�ons that provide this housing opportunity. Eligible proper�es must be offered to low-income persons (at or below 60% AMI), or held for the purpose of developing low-income rental housing. The housing may be for rent or for purchase, and could be new development or exis�ng housing acquired by a nonprofit for the purpose of conver�ng it to income-restricted affordable housing. Jurisdic�ons may adopt addi�onal PP 22-0005 ATTACHMENT 3/PAGE 7 OF 42 eligibility criteria for the exemp�on, provided they don’t conflict with state statutes. Applicants must renew their tax exemp�on applica�ons annually. As long as the housing remains affordable to low-income residents, there is no �me limit to the tax exemp�on. While non-profit agencies can apply for tax exempt status through the state, that process is cumbersome and is not always successful. This strategy would provide a simplified and consistent method for eligible organiza�ons to apply and qualify by adop�ng it as City policy and gaining par�cipa�on from other taxing districts. (Authorized by ORS 307.540-548) Considera�ons Applicable to all tax exemp�ons: •Tax exemp�ons apply only to the tax levy of a governing body that adopts the exemp�ons. In order for the full property tax to be exempted, the City must seek approval from partner jurisdic�ons that, together with the City, make up at least 51% of the overall tax levy. Lake Oswego would need to secure agreement from either the School District or County or both. •The City and par�cipa�ng taxing districts will lose property tax income for the dura�on of any tax exemp�on, reducing revenue for City services and revenue for par�cipa�ng taxing districts. Such taxing districts may express resistance to new tax abatement or exemp�on programs that involve reduced revenue, par�cularly for programs intended to produce market-rate housing. Nonprofit Low-Income Housing Exemp�on: •By reducing opera�ng income, property tax abatement programs can be a powerful tool to increase the feasibility of low-income housing, and perhaps increase the number of units that are feasible in planned projects. Many affordable housing developers cite abatements such as the Nonprofit Housing exemp�on as an essen�al tool in helping make projects financially feasible. •The City of Lake Oswego received a leter from Mercy Housing Northwest, the nonprofit developer of the Marylhurst Commons development, urging the City to adopt an affordable housing tax exemp�on. This leter (dated October 24, 2023) is included in the CAG #6 agenda packet. The leter describes various benefits of a property tax exemp�on – in par�cular, in reducing ongoing opera�ons costs and suppor�ng long-term stability for affordable housing developments. An�cipated Impact •Housing need addressed: Government-subsidized affordable housing for low-income households. •Popula�on served: Low-income households •Income level: 0-60% AMI (for residents’ ini�al year of tenancy; a�er the first year, up to 80% AMI) •Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support produc�on of subsidized affordable housing. PP 22-0005 ATTACHMENT 3/PAGE 8 OF 42 No burdens on priority popula�ons are an�cipated. •Housing tenure: For sale or rent •Magnitude: High – This abatement can have a large impact on making low- income affordable housing more feasible to develop. The open-ended nature of the abatement (as long as the project maintains affordability) can offer very significant savings to the property manager over �me and increase the viability of offering affordable rents indefinitely. The property tax level in Lake Oswego is roughly $20,000 per $1M in valua�on per year. A mid- to large apartment complex could expect a valua�on of many millions of dollars, amoun�ng to poten�ally hundreds of thousands in taxes per year. An abatement of these taxes is a strong incen�ve and improves feasibility considerably. Time Frame Implementa�on: Near Term Impact: The tax exemp�on can be used once it is adopted, and for as long as the City offers the exemp�on. The impact on supply of affordable housing is expected to be longer-term. Implementa�on Ac�ons •Work with other taxing jurisdic�ons to gain approval. •Develop applica�on standards and guidelines. •City Council ac�on: Adopt tax exemp�on policy by resolu�on or ordinance. Lead & Partners Lead: Lake Oswego Community Development Partners: Lake Oswego Finance Department; overlapping taxing jurisdic�ons 1.4 Low-Income Rental Housing Tax Exemp�on (E02) NOTE: The project team’s ini�al recommenda�on is to implement either or both the Nonprofit Low- Income Housing Tax Exemp�on and/or the Low-Income Rental Housing Tax exemp�on. Descrip�on This is a 20-year tax exemp�on for any en�ty that provides income-restricted rental housing, including nonprofits and for-profit developers. Eligible proper�es must be offered for rent to low-income persons or held for the purpose of developing low-income rental housing. Jurisdic�ons may adopt addi�onal eligibility criteria for the exemp�on, provided they don’t conflict with state statutes. (Authorized by ORS 307.515-537) Comparison of low-income housing tax exemp�on programs: While these two exemp�on programs appear similar, they do have some key dis�nc�ons. Nonprofit Low-Income Housing Low-Income Rental Housing Eligible Developers Nonprofits only Nonprofit or for-profit Income Levels Up to 60% AMI Up to 60% AMI Tenure For rent or for sale For rent only PP 22-0005 ATTACHMENT 3/PAGE 9 OF 42 New vs. Acquired Housing New construc�on or acquisi�on of exis�ng housing New construc�on only Annual Renewal Required? Yes No Time Limit No limit 20 years NOTE: The project team does not see any issues with adop�ng both exemp�on programs. Each program has different opportuni�es and challenges, and it may be beneficial for housing developers to be able to choose which program best suits their project needs. Considera�ons • Key advantages of this abatement are that it is available to more than just non-profits and it does not require annual renewal. This can significantly reduce an organiza�on’s administra�ve burden in implemen�ng the exemp�on. •However, this abatement has less flexibility compared to the Nonprofit Exemp�on because it is not available for ownership housing, cannot be used for acquisi�on of exis�ng housing, and is limited to 20 years. An�cipated Impact •Housing need addressed: Government-subsidized affordable housing for low-income households. •Popula�on served: Low-income households •Income level: 0-60% AMI (for residents’ ini�al year of tenancy; a�er the first year, up to 80% AMI) •Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support produc�on of subsidized affordable housing. No burdens on priority popula�ons are an�cipated. •Housing tenure: For rent •Magnitude: High – Like the Nonprofit Exemp�on, this abatement can have a large impact on new affordable housing produc�on. As noted above, an abatement of property taxes is a strong incen�ve and improves feasibility considerably. This abatement is available to for-profit developers and therefore may generate more new housing than the Non-Profit Exemp�on. While not open-ended, a 20-year exemp�on matches the period in which a property would otherwise undergo significant deprecia�on. However, at the end of the 20-year period, this housing o�en reverts to market-rate status. Time Frame Implementa�on: Near Term Impact: The tax exemp�on can be used once it is adopted, and for as long as the City offers the exemp�on. The impact on supply of affordable housing is expected to be longer-term. Implementa�on Ac�ons •Work with other taxing jurisdic�ons to gain approval. •Develop applica�on standards and guidelines. •City Council ac�on: Adopt tax exemp�on policy by resolu�on or ordinance. PP 22-0005 ATTACHMENT 3/PAGE 10 OF 42 Lead & Partners Lead: Lake Oswego Community Development Partners: Lake Oswego Finance Department; overlapping taxing jurisdic�ons 1.5 Public-private partnerships for affordable housing (F04) Descrip�on Public-private partnerships (PPPs) are arrangements between public and private en��es to develop housing, especially affordable housing. PPPs have the capacity to bring resources to the table that would otherwise not be available if each ins�tu�on were to provide housing on its own. The City could partner with organiza�ons to support their affordable housing efforts in a variety of ways: •Acquire land and/or donate city-owned land; •Provide grants or low-interest loans for specific development or rehabilita�on projects; •Provide direct funding; and/or •Leverage federal, state, and regional resources. Addi�onally, the City can pursue specific types of PPPs such as: •Partnering to convert underu�lized non-residen�al proper�es into housing. The City could work with landowners to evaluate opportuni�es for adap�ng vacant/underused buildings for new housing or mixed-use development. Implemen�ng this strategy may depend, in part, on use of tools such as TIF funding (Strategy 1.9) to address infrastructure deficiencies or support development of affordable housing. •U�lizing surplus land owned by faith-based organiza�ons for affordable housing. The City could work with faith organiza�ons to u�lize their excess land for affordable housing. The City could assist such organiza�ons with favorable zoning, permi�ng, and financial incen�ves. NOTE: PPP is an “umbrella” strategy that overlaps significantly with other strategies in this document (funding support for affordable housing, tax incen�ves, community land trusts, etc.). Implemen�ng a PPP strategy could take many forms. In the final HPS, it will be important for the City to be clear about the specific ac�ons it will take to pursue and support PPPs for affordable housing. Considera�ons • The City is pursuing this strategy with several ongoing projects. This includes partnering with the Sisters of Holy Names of Jesus and Mary and Mercy Housing NW in facilita�ng the Marylhurst Commons affordable housing development. •PPPs are o�en opportunity-driven and may be spearheaded by the City or by private developers or partner agencies. •Ci�es are o�en asked to provide land, financial assistance, and or technical assistance, with poten�ally moderate costs. More significant financial assistance would depend on a new funding source, such as construc�on excise tax. PP 22-0005 ATTACHMENT 3/PAGE 11 OF 42 An�cipated Impact •Housing Need Addressed: Government-subsidized affordable housing for low-income households. •Popula�on served: Low-income households •Income level: 0-80% AMI •Benefits and Burdens: This strategy is intended to benefit low-income households by increasing the City’s involvement in development of affordable housing. No burdens on priority popula�ons are an�cipated for this strategy. •Housing tenure: For rent or sale •Magnitude: High – Partnerships with private developers or non-profit housing agencies are very o�en a key component of a City contribu�ng to new housing produc�on. Few City governments directly build housing. The incen�ves and funding offered are aimed at these partners, who undertake the projects o�en with a development agreement to ensure the public goals are met. The magnitude of impact is high, and in a sense these partnerships are necessary for most successful City-based housing ini�a�ves. Time Frame Implementa�on: Near Term Impact: Timing of impact depends on the nature of the public/private partnership. Given availability of funds, impact to housing produc�on would be expected to occur over the longer term. Implementa�on Ac�ons •More clearly define the rela�onship to other HPS strategies and which types of ac�ons would be proac�vely undertaken by the City vs more opportunis�c ac�ons based on proposals from poten�al partners. •Work with nonprofit, faith-based, or other organiza�ons to discuss opportuni�es in Lake Oswego. •Take ac�on on partnership models and programs that best benefit the organiza�on and the City’s financial and/or administra�ve capacity. •Partnership ac�vi�es depend on the project, organiza�on, and available resources. Lead & Partners Lead: Lake Oswego Community Development Partners: Possibili�es include landowners and organiza�ons with excess land, as well as nonprofit affordable housing providers. 1.6 Fair Housing policy and educa�on (B14) Descrip�on This strategy involves amending the Comprehensive Plan to explicitly make Affirmatively Furthering Fair Housing a Housing Policy. Fair Housing laws protect individuals in “protected classes” from housing discrimina�on. Protected classes in Oregon include race, color, na�onal origin, religion, disability, sex (includes pregnancy), sexual orienta�on, gender iden�ty, age, and marital status. The City could add addi�onal protected classes, such as ancestry, ethnicity, or occupa�on. PP 22-0005 ATTACHMENT 3/PAGE 12 OF 42 The City could also pursue the following types of ac�ons to affirma�vely further fair housing and work to reverse discrimina�on, exclusion, and concentra�ons of wealth in Lake Oswego: •Create an Analysis of Impediments to Fair Housing. •Conduct fair housing training for Council, Planning Commission, and other relevant policymakers. •Provide residents, property owners, property managers, realtors, lenders, and others involved with real estate transac�ons with access to fair housing informa�on and referrals. •Ensure that City staff know how to iden�fy poten�al fair housing viola�ons and make referrals to the Fair Housing Council of Oregon and state and local enforcement agencies. In addi�on, other strategies iden�fied in this list can also generally serve the purpose of affirma�vely furthering fair housing to the extent they expand housing opportuni�es or choices for people in protected classes. Considera�ons • This strategy would not necessarily contribute to housing produc�on except when it is implemented through other strategies described in this document that result in housing produc�on. However, in all cases it would demonstrate the City’s commitment to working towards fair housing outcomes. •Training and educa�on would require staff �me and resources to implement. An�cipated Impact •Housing Need Addressed: This strategy would not directly address iden�fied housing needs in most cases, but it would help prevent housing discrimina�on against protected classes. •Popula�on served: Protected classes •Income level: All income levels •Benefits and Burdens: This strategy is intended to benefit priority popula�ons by formalizing the City’s commitment to fair housing goals, beter understanding fair housing issues in the community, and by educa�ng City staff, housing stakeholders, and community members about fair housing laws and residents’ rights. No burdens on priority popula�ons are an�cipated. •Housing tenure: For sale or rent •Magnitude: Low – Fair housing policy and educa�on will not directly contribute to housing produc�on, but it could provide addi�onal protec�ons against housing discrimina�on. It could also bolster the City’s focus on priori�zing housing equity and affordability in its housing programs and investments. Time Frame Implementa�on: Near Term (Fair Housing Policy); Medium Term (other ac�ons) Impact: Impact on community understanding of fair housing can be in the short term. Impact on fair housing outcomes is expected to be longer term. Implementa�on Ac�ons •Policy adop�on requires Legisla�ve Comprehensive Plan text amendment. •Partner with organiza�ons such as the Fair Housing Council of Oregon on training. PP 22-0005 ATTACHMENT 3/PAGE 13 OF 42 •Develop informa�onal materials. •Provide training to current staff and new hires. Lead & Partners Lead: Lake Oswego Community Development Partners: Fair Housing Council of Oregon MEDIUM-TERM STRATEGIES The project team’s ini�al recommenda�on is to implement the following strategies over the Medium Term (3-5 years a�er HPS adop�on). 1.7 Rezone Land (Z02) Descrip�on This strategy involves rezoning commercial, mixed-use, or other non-residen�ally zoned proper�es for residen�al uses, especially mul�-family housing. It could also involve rezoning lower-density areas to allow higher-density housing. The HNA iden�fied a need for addi�onal residen�al land across all zone types to meet the 20-year housing need in Lake Oswego (a deficit of 86 total acres). As such, there may be a need to add to the city’s capacity of residen�al land to meet the housing need. Rezoning is one way to help address this issue. Considera�ons • If nonresiden�al land is considered for rezoning, it would be important to ensure there is s�ll adequate land available for employment and commercial/industrial needs in the city. Lake Oswego’s Economic Opportuni�es Assessment iden�fies the city’s future employment land needs. •In considering the most appropriate loca�ons for City-ini�ated rezoning of land, the following criteria or factors should be considered: o Proximity to exis�ng residen�al and higher-density areas. o Proximity to services (e.g., transit, schools, parks, etc.). o Size and ownership – larger proper�es will be more atrac�ve for development. •There may be neighborhood resistance to rezoning, especially “upzoning” single-family residen�al areas. This strategy would need significant community engagement. An�cipated Impact •Housing need addressed: Rezoning would address the shortage of land for housing, and the overall need for housing produc�on in the city. Depending on how it is implemented, this strategy could also address the shortage of higher-density land by rezoning lower-density land. •Popula�on served: Low to higher income households •Income level: All income levels •Benefits and Burdens: Rezoning can increase the availability of land zoned for residen�al development. Addi�onal capacity for more housing PP 22-0005 ATTACHMENT 3/PAGE 14 OF 42 development can include opportuni�es for mul�-family housing that is generally more affordable to low- and moderate-income households. A poten�al burden from this strategy is the possibility of lower-income households being displaced if rezoning leads to increased development pressures or increased property values. Rezoning commercial areas, or impacts of increased property values, can also lead to commercial displacement of small businesses. Rising commercial rents or pressures to redevelop for residen�al uses may have a larger impact on small-scale entrepreneurs and immigrant or minority-owned businesses. The characteris�cs of areas being considered for rezoning should be carefully considered as part of implementa�on to avoid displacement impacts. •Housing tenure: For rent or sale •Magnitude: Moderate to High – The impact of rezoning might be rela�vely high given the limited supply and high demand for buildable residen�al land in the community. The effec�veness of rezoning will depend on the physical and infrastructure characteris�cs of the rezoned land for residen�al use. The density of housing under the new zone will also depend on the physical constraints (e.g., steep slopes) that might limit the buildable por�on of a site. Time Frame Implementa�on: Medium Term Impact: Land inside city limits will become available for development immediately a�er rezoning. Land outside city limits can also be developed, but will need to overcome the addi�onal hurdle of annexa�on. The impact on housing development is expected to be long-term. Implementa�on Ac�ons •Use the criteria listed above to iden�fy poten�al areas for rezoning. Priori�ze sites with the best poten�al for housing produc�on and access to services. •Consider the demographic characteris�cs of poten�al rezoning areas to avoid poten�al displacement impacts. •Engage with property owners as well as the broader community in targeted areas. •Work with Lake Oswego’s Planning Commission and City Council to adopt Zoning and Comprehensive Plan Map amendments. •City Council ac�on: Legisla�ve Zoning Map and Comprehensive Plan Map amendment. Lead & Partners Lead: Lake Oswego Community Development Partners: Property owners 1.8 Evaluate accessible design incen�ves or mandates (A23) Descrip�on This strategy involves evalua�ng incen�ves or mandates to increase development of housing that is accessible for seniors and people with disabili�es or mobility challenges. Poten�al incen�ves could include: PP 22-0005 ATTACHMENT 3/PAGE 15 OF 42 •Bonuses for height, density, lot size, or floor area ra�o (similar to Strategy 2.1). •Tax abatements, e.g., MUPTE (see Strategy 2.4). Poten�al mandates could include: •Requiring visitability in middle housing development—this would ensure that anyone using a wheelchair can visit the subject homes. Visitability is most relevant for buildings with fewer than four units, townhouses, and detached homes that aren’t subject to ADA requirements. •Requiring housing that receives public funding to provide more accessible units or more universal design features than required under federal standards. This could mean applying the standards to a higher percentage of units than would otherwise be required (above 5%) and/or requiring units to meet higher Universal Design or Lifelong Housing Cer�fica�on standards. •Requiring elevators in some or all mul�-story buildings. Currently, the Building Code only requires elevators to reach common spaces (such as exercise rooms) or units that are federally required to be accessible. Requiring elevators in one or more mul�-family buildings would provide access to all levels of that building. It would also make all units “covered” units under the Fair Housing Act, meaning all units would need to have baseline accessibility features. Accessibility Standards. Eligible units (for either incen�ves or mandates) could be required to meet certain standards – which would go beyond minimum federal requirements or could target housing not subject to these requirements (e.g., single-family homes and middle housing).2 Op�ons include: •Universal Design is a building concept that incorporates design layouts and characteris�cs into residences to make them usable by the greatest number of people and respond to the changing needs of the resident. Universal Design incorporates standards for features such as hallways, doorways, bathrooms, and kitchens that make these features usable for people with disabili�es or adaptable for that purpose.3 •Lifelong Housing Cer�fica�on is a program developed by the Rogue Valley Council of Governments (RVCOG) in partnership with AARP Oregon as a voluntary cer�fica�on process for evalua�ng the accessibility and/or adaptability of homes. Residences can be cer�fied at three levels based on the extent of their accessibility: (1) Visitable (basic accessibility for visitors); (2) Fully Accessible (accessible for a person in a wheelchair on the main floor); and (3) Enhanced Accessibility (customized for specific accessibility 2 Multi-family developments are subject to the Fair Housing Act; for buildings with an elevator, all units must be accessible; for those without an elevator, all ground floor units must be accessible. Housing projects receiving public funding are subject to federal laws (Section 504 of the Rehabilitation Act of 1973 and/or Title II of the ADA), which require 5% of units to be mobility-accessible. Source: Disability Law Handbook, Southwest ADA Center. http://www.southwestada.org/html/publications/dlh/housing.html 3 Universal Design Standards, West Virginia Housing Development Fund. https://tinyurl.com/yx63h792 PP 22-0005 ATTACHMENT 3/PAGE 16 OF 42 needs).4 •Visitability is a design approach for new housing that allows anyone who uses a wheelchair or other mobility device to visit the home. A visitable home typically includes: o A zero-step entrance; o Wide interior doors; and o A half bathroom on the main floor. Considera�ons • This strategy would help address housing dispari�es for people with disabili�es and provide more op�ons for aging in place. •Strategies to promote accessible housing received support from the Middle Housing Code Advisory Commitee as part of the House Bill 2001 code updates. •Accessibility features can add to the cost of construc�on for a development, which can make affordable housing projects less financially feasible. Elevators, in par�cular, add significant cost to a project. •While mandates may provide more accessible units, they could prevent some affordable housing projects from being developed. •Incen�ves must be calibrated effec�vely to be atrac�ve to both a nonprofit and for-profit developer. The benefit of using the incen�ve should outweigh the costs associated with implemen�ng accessible design features. An�cipated Impact •Housing Need Addressed: Housing for people with physical disabili�es and mobility challenges. The HNA indicates that an es�mated 8% of the popula�on of Lake Oswego, or 3,140 people, report having some form of disability, including 2.9% with an ambulatory disability. However, the number of people that would benefit from physical accessibility in housing – especially amongst the senior popula�on – likely exceeds these numbers. •Popula�on served: Seniors; people with disabili�es •Income level: All income levels •Benefits and Burdens: This strategy is an�cipated to benefit seniors and people with disabili�es by increasing the stock of accessible housing units in the city. However, a poten�al trade-off of mandating accessibility features— especially for subsidized housing—is that it would reduce the total number of units that could be provided in a building (because bathrooms and other areas would need to be larger). While this may provide more accessible units, it could make some affordable housing projects less feasible. This could be a poten�al burden on low-income households by limi�ng the opportunity for produc�on of housing they can afford. Incen�ve-based strategies would not carry the same burden. This will be an important considera�on for implementa�on. •Housing tenure: For rent or sale 4 Lifelong Housing Program, RVCOG. https://rvcog.org/home/sds-2/lifelong-housing-program/ PP 22-0005 ATTACHMENT 3/PAGE 17 OF 42 •Magnitude: Moderate – Depending on how the strategy is structured, it could lead to produc�on of a significant number of new units with accessibility features. However, the strategy could also have the effect of deterring housing produc�on if requirements are too onerous. To improve feasibility, requirements may be applied to some but not all of the units in new mul�-family development. New elevator requirements may significantly deter new development, due to high cost. Time Frame Implementa�on: Medium Term Impact: The ac�on can begin to have impact a�er it is implemented in the CDC or adopted as a financial incen�ve. The impact on housing produc�on is expected to be longer-term. Implementa�on Ac�ons •Code bonus. o Evaluate a poten�al new height/FAR bonus with input from housing stakeholders. o Consider whether a bonus should apply in all zones or only certain zones. o A poten�al accessibility bonus should be carefully considered in conjunc�on with any other poten�al bonus provisions (see Strategy 2.1). o Implement via CDC updates. •Code requirement. o Evaluate poten�al new accessibility requirements, working closely with non-profit and market-rate housing developers to understand how their projects might be impacted. o Conduct a pro forma analysis to evaluate poten�al impacts to project costs. o Implement via CDC updates. •Financial incen�ve. o Evaluate an incen�ve program (e.g., MUPTE, Strategy 2.4) to increase the number of dwelling units designed accessibly. o Work with developers to gather feedback on program parameters and interest. o Implement incen�ve program through Council ac�on. Lead & Partners Lead: Lake Oswego Community Development Partners: Home Building Associa�on of Greater Portland; Fair Housing Council of Oregon; AARP; Rogue Valley COG; non-profit and for-profit housing developers. 1.9 Use Tax Increment Financing (TIF) to support affordable housing development (D10) Descrip�on This strategy involves using TIF funds to support affordable housing development. This could involve crea�ng one or more new TIF districts and incorpora�ng affordable housing into new TIF district plans. For example, the City PP 22-0005 ATTACHMENT 3/PAGE 18 OF 42 could create a TIF set-aside for affordable housing development programs within the district. TIF is a funding mechanism in which future tax revenues in targeted development or redevelopment areas (TIF districts / urban renewal areas) are diverted to finance infrastructure improvements and/or development. At the �me of adop�on, the tax revenue flowing to each taxing jurisdic�on from the TIF district is frozen at its current level. Any growth in tax revenues in future years, due to annual tax increase plus new development, is the “tax increment” that goes to the district itself to fund projects in that area. TIF is a good tool to use in areas where new development or redevelopment is an�cipated. While many different types of projects are eligible for TIF funds, for the most part, TIF funds are used to pay for physical improvements in the district itself. These projects can include par�cipa�ng in public/private partnerships with developers—including for affordable, workforce, or market-rate housing—or can be used to complete off-site public improvements that benefit and encourage new development in the area, or to acquire key sites. TIF funds also can be used to purchase land. TIF can be a direct source of funding for projects that meet public goals such as providing affordable housing, increased density, or mixed-use buildings that might not otherwise be feasible. In return for some public funding through TIF, private sector or non-profit developers agree to provide these benefits. Urban Renewal can also be used to purchase and reserve a key building site in the district to ensure that the development that takes place there meets public goals. The site can be offered to a development partner at reduced cost to provide the incen�ve. Considera�ons • There is direc�on from the Lake Oswego Redevelopment Agency (LORA) to expand the use of urban renewal in the city – par�cularly in the Foothills neighborhood. •TIF results in foregone tax revenue for the City and any other overlapping taxing districts for several decades, although it can (and should) grow the tax base in the long-term by suppor�ng development that would not otherwise have occurred. •If a new TIF district were established, it would likely be several years before there would be sufficient revenue in the district to make significant investment in housing. •Coordina�on and agreement with other taxing districts is also important. •There are many examples of the use of TIF revenue for housing-related projects in Oregon. o In the Downtown Tigard TIF district, projects include the Atwell Off-Main project, which includes 165 market rate apartments, along with commercial space; and the current mixed-use development underway on Main Street near Fanno Creek, which will include a coffee roaster, office space, and 22 new apartments. o The City of Portland has par�cipated in many housing projects in its districts over decades. For instance, over the last decade Prosper PP 22-0005 ATTACHMENT 3/PAGE 19 OF 42 Portland agency has contributed to the crea�on of hundreds of mostly affordable and workforce housing units in mul�ple buildings in the Lents Town Center. TIF also contributed to many of the early projects in the Pearl District. o The City of Beaverton Urban Renewal Agency’s (BURA) budget allocates $300,000 to $3.3M per year in tax increment set aside for joint investment in affordable housing. This amounts to approximately 10% of the City’s 5-year URA budget.5 An�cipated Impact •Housing Need Addressed: Government-subsidized affordable housing. •Popula�on served: Low-income households •Income level: 0-80% AMI •Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support produc�on of subsidized affordable housing. An intended outcome of urban renewal is increased property values and redevelopment within the district. If not balanced by adequate investment in housing produc�on, urban renewal can lead to displacement of exis�ng residents facing increased property taxes and development pressures. This can be a burden on exis�ng low-income residents and should be considered carefully when designa�ng new TIF districts. •Housing tenure: For rent or sale •Magnitude: High – An extended TIF district or new programs focused on housing have the poten�al to have a large impact on specific new projects with LORA partners. The impact of an expanded TIF program on housing produc�on will depend on the revenue-genera�ng poten�al of the district in ques�on and the priori�za�on of housing projects among the broader range of projects eligible for urban renewal funding (e.g., general infrastructure projects, beau�fica�on, economic development, etc.). If housing is priori�zed for funding, and development opportuni�es are available within the district, it can directly bring about housing produc�on. Time Frame Implementa�on: Medium Term Impact: Analysis and planning for a new TIF district can take several years. Once a TIF district is established, it is expected to take several more years before adequate revenues are accrued to begin spending the urban renewal funds. The impact on housing produc�on is expected over the medium or longer term. Implementa�on Ac�ons •Evaluate the poten�al for crea�on of one or more new TIF districts. •Incorporate affordable housing into new district plans. •City Council to adopt URA boundaries and plan via ordinance. Lead & Partners Lead: Lake Oswego Redevelopment Agency Partners: Development stakeholders 5 Beaverton BURA Annual Report and Five-Year Action Plan, 2020. https://www.beavertonoregon.gov/1017/The- Beaverton-Urban-Redevelopment-Agency PP 22-0005 ATTACHMENT 3/PAGE 20 OF 42 1.10 Affordable Housing Preserva�on Inventory (F19) Descrip�on Prepare an inventory of subsidized and naturally occurring affordable housing to support proac�ve policies intended to preserve the affordable housing stock. The inventory would be used to target poten�al proper�es for implementa�on of an affordable housing preserva�on strategy. Considera�ons • This strategy could help offset some of the need for costly new construc�on. •The strategy would be a good star�ng point for a housing preserva�on strategy (Strategy 3.4). Understanding the city’s stock of affordable housing could influence decision-making and priori�za�on for a preserva�on strategy. •The strategy would require staff �me and resources to implement. An�cipated Impact •Housing Need Addressed: Housing for low-income residents. •Popula�on served: Low-income households •Income level: 0-80% AMI •Benefits and Burdens: This strategy is expected to benefit low-income residents by evalua�ng the city’s stock of naturally occurring affordable housing, in support of a low-cost housing preserva�on strategy. No burdens on priority popula�ons are an�cipated. •Housing tenure: For sale or rent •Magnitude: Low – This strategy will not contribute to new housing produc�on, but it will contribute to the preserva�on of exis�ng affordable housing, and aids in tracking performance metrics. Time Frame Implementa�on: Medium Term Impact: This strategy can provide informa�on and influence decision-making about housing preserva�on in the shorter term. However, impacts to the city’s housing inventory are expected to be longer term. Implementa�on Ac�ons •Use Census data as a star�ng point. •Work with property owners to document housing costs. •Update inventory on a regular basis. Lead & Partners Lead: Lake Oswego Community Development Partners: Property owners LONGER-TERM STRATEGIES The project team’s ini�al recommenda�on is to implement the following strategies over the Longer Term (>5 years a�er HPS adop�on). PP 22-0005 ATTACHMENT 3/PAGE 21 OF 42 1.11 Modify System Development (SDC) fee schedule (C02) Descrip�on SDCs are one-�me charges assessed on new development to pay for the costs of expanding public facili�es to serve new development. The City of Lake Oswego charges SDCs for water, sewer, parks, and transporta�on. The Lake Oswego School District also charges a construc�on excise tax (effec�vely an SDC) for new construc�on in the city (except for affordable housing). This strategy involves upda�ng the City’s SDC fee schedule so it is �ed more directly to dwelling size. Currently, the City charges the same rates for all single- family homes regardless of size. Each unit of a duplex is also charged the same single-family fee. Mul�-family housing (3 or more units) is charged a lesser fee per unit.6 Scaling SDC fees to dwelling size would beter match a development’s charges to its actual cost or impact on the system. Smaller housing units, including some middle housing types, typically have less impact on water, sewer, or transporta�on facili�es, given the reduced average size and occupancy of these units. This is not fully reflected in Lake Oswego’s current SDC schedule, although the current schedule does include lower fees for mul�-family housing units. The City could consider charging fees on a per-square-foot basis, rather than per- unit. Considera�ons • This strategy would reduce barriers to construc�on of more affordable, smaller-scale homes, including small single-family homes and middle housing. •The City sets its SDC fee schedule based on projected needs for system construc�on and improvements. Modifying the SDC methodology would likely increase fees for larger homes to make up for the reduced fees for smaller units. •Notes on current SDC strategies: o The City has already adopted regula�ons to waive SDCs for income- restricted affordable housing (80% or less of AMI) and for accessory dwelling units. o As part of the current Parks Plan 2040 update project (comple�on expected in 2025), the City will consider modifying its Parks SDCs to be scaled by housing unit size. That could provide a jumping off point and a model for a larger discussion about SDC schedules and poten�al future refinements to SDCs for other services. An�cipated Impact •Housing need addressed: This strategy will facilitate development of smaller, more atainable housing units that may be affordable to moderate-income and smaller households. The HNA indicates that 16% of new needed housing units over the next 20 years will be needed by those earning 80-120% AMI. •Popula�on served: Moderate to higher income households; first-�me homebuyers; single or two-person households; seniors 6 Lake Oswego Master Fees and Charges, 2024. https://www.ci.oswego.or.us/finance/master-fees-and-charges PP 22-0005 ATTACHMENT 3/PAGE 22 OF 42 •Income level: 80% AMI and above •Benefits and Burdens: This strategy can increase produc�on of smaller and lower-cost units which may benefit lower-income households, but is more likely to benefit moderate- or higher-income households. Smaller unit sizes may be of par�cular benefit to seniors due to lower maintenance and lower housing costs. No burdens on priority popula�ons are an�cipated. However, reducing SDCs for smaller units would likely need to be offset by increased SDCs for larger units, the cost of which would be passed onto homebuyers. It is an�cipated that homebuyers that can afford larger units likely can also afford the increased cost. •Housing tenure: For rent or sale •Magnitude: Low to Moderate – Given current SDC incen�ves already available, this tool may have a low to moderate impact in incen�vizing addi�onal housing units. It may incen�vize some projects to produce a greater number of marginally smaller units, thus increasing density and unit produc�on somewhat. Time Frame Implementa�on: Longer Term Impact: The process of modifying a city’s SDC methodology can be lengthy, as it is necessary to analyze projected needs for system construc�on and improvements and ensure that SDC revenues will be adequate to meet projected needs. Once a new SDC schedule is implemented, the impact to housing development is expected to be longer-term. Implementa�on Ac�ons •Work with City Council, other departments (Public Works, Finance, Parks, etc.), and development stakeholders on policy discussions around modifying SDCs. •Poten�ally work with a consultant to develop an updated SDC methodology. •City Council ac�on: Adopt modified SDC schedule by resolu�on or ordinance. Lead & Partners Lead: Lake Oswego Engineering Partners: Development stakeholders 1.12 Pre-Approved plan sets for ADUs (A21) Descrip�on Pre-approved (or permit-ready) plan sets have been reviewed in advance for conformance with zoning and building codes. Permit-ready plan sets can reduce housing development costs by reducing design and permit process �mes and fees. This strategy could be used to encourage more development of accessory dwelling units (ADUs) or middle housing types (see Strategy 2.5). Permit-ready plans can reduce costs in three main ways: •Streamlining permit processes – Permi�ng �mes are frequently cited by market-rate builders as a major barrier to housing produc�on, as delays in permi�ng o�en translate into increased costs. PP 22-0005 ATTACHMENT 3/PAGE 23 OF 42 •Reducing permit fees – The Building Department may decrease permit review charges for applicants because of the simplified review. •Reducing design fees – The builder would pay less in professional services to architects, etc. ADUs are a type of housing located on the same lot (and some�mes in the same structure) as a primary dwelling unit. They are generally smaller in size compared to the primary home and come in a number of different configura�ons. In Lake Oswego, there may be one ADU per primary home. ADUs offer opportuni�es for mul�genera�onal living, with family members living on the same site but in a separate dwelling. ADUs can also be rented out, allowing the homeowners to supplement their income. Considera�ons • This strategy poten�ally lowers site and building design costs, which could lead to an increase in new ADU units and increase rental stock. •There are upfront costs associated with developing the pre-approved plans, including paying design fees for architects that develop the base plans, and dedica�ng staff �me for working with the architects and reviewing the plans. •The City could partner with a university, design ins�tu�on, or develop a compe��on to produce plans. •ADUs may be a beter candidate for this program due to their small size and rela�ve simplicity (as compared to middle housing, which may require more customiza�on). Also, homeowners wan�ng to build an ADU may be more interested in pre-made designs than experienced homebuilders. An�cipated Impact •Housing Need Addressed: Increased housing choices within exis�ng neighborhoods. Increased rental opportuni�es. Op�ons for mul�genera�onal housing. Opportuni�es for aging in place. •Popula�on served: Moderate to higher-income households; seniors; people with disabili�es; mul�genera�onal households; renters •Income level: Likely 80% AMI and above •Benefits and Burdens: ADUs are a popular choice for elders who wish to live on the same property as their children/grandchildren (ADUs are some�mes referred to as “granny flats”). As such, this strategy can offer benefits to seniors and mul�genera�onal households. Because ADUs are o�en single- level, small homes, they may also benefit people with disabili�es – with the poten�al added benefit of enabling family to live nearby for assistance and support. No burdens on priority popula�ons are an�cipated. •Housing tenure: For rent •Magnitude: Moderate – This strategy would likely lead to more development of ADUs in the city. Pre-approved plans can lower the logis�cal barriers for prospec�ve ADU builders, and can be paired with a faster, cheaper permi�ng process. This could increase the number of available rental proper�es and increase housing choices in exis�ng developed neighborhoods. However, the strategy would have a limited impact on overall housing supply. PP 22-0005 ATTACHMENT 3/PAGE 24 OF 42 Time Frame Implementa�on: Longer Term Impact: The ac�on is expected to have impact over the longer term. Implementa�on Ac�ons •Develop ADU plans in collabora�on with one of the partners listed below. •Work with the Building Department to ensure plans meet all City Code standards, approve the plans, and adopt reduced fees for the plans. •Work with the Building Department to implement a streamlined review process. Lead & Partners Lead: Lake Oswego Community Development (including Building Department) Partners: Universi�es, design ins�tu�ons, and/or design firms PP 22-0005 ATTACHMENT 3/PAGE 25 OF 42 2.Strategies Needing Further Discussion The following strategies need further discussion by the HPS Task Force, Planning Commission, and City Council before the project team can make a recommenda�on as to whether they should be included in the HPS. These strategies have not yet received clear support from these bodies, but are expected to have a meaningful impact on housing produc�on. 2.1 Zoning incen�ves for affordable housing (A03) Descrip�on This strategy involves allowing addi�onal height, density, bonus floor area ra�o (FAR), or relaxing other zoning standards for affordable housing. The City currently allows a limited height or density bonus for affordable developments in the WLG-OC and R-DD zones. The City could consider modifying the bonus, expanding it to apply in more zones, or adop�ng new bonuses, such as reduced open space for affordable housing. Considera�ons • Zoning incen�ves likely would not incen�vize private developers to include affordable units in their projects. These types of bonuses typically don’t lead to mixed-income development on their own unless the base en�tlements are very low and there’s a lot of demand for more density. •Incen�ves would more likely be a way to allow affordable developers to make more efficient use of land and poten�ally beter compete for land with market-rate developers. Non-profit housing providers have indicated that such bonuses can be very effec�ve in improving the financial feasibility of their developments. •Senate Bill 8 (2021 session, encoded as ORS 197A.445) requires ci�es to allow affordable housing that meets specific criteria on a wide range of sites and provides height and density bonuses. If the height/density bonus exceeds local bonuses for affordable housing, the SB 8 bonus will apply directly. Poten�al bonus provisions in Lake Oswego could be cra�ed to be consistent with or go above and beyond SB 8 requirements. An�cipated Impact •Housing need addressed: Government-subsidized affordable housing for low-income households. The HNA indicates that 30% of future needed housing units by 2043 will be needed by low-, very low-, or extremely low- income households, and also iden�fied a current gap in supply of affordable units. •Popula�on served: Low-income households •Income level: 0-80% AMI •Benefits and Burdens: This strategy would benefit low-income households by increasing the feasibility of affordable developments, thereby enabling more such projects to be built and poten�ally enabling more units to be included within each project. No burdens on priority popula�ons are an�cipated. •Housing tenure: For rent or sale PP 22-0005 ATTACHMENT 3/PAGE 26 OF 42 •Magnitude: Low to Moderate – This strategy might lead to a small percent increase in the number of units that are possible for affordable housing developments. This incen�ve may help increase affordable produc�on in projects that are already being pursued but is unlikely to ini�ate new projects on its own. While the developer and property manager must demonstrate compliance, the administra�ve burden should be kept to a minimum to reduce added �me and cost, both for the applicant and the City. Time Frame Implementa�on: To be determined based on further discussion Impact: The ac�on can begin to have impact a�er it is implemented in the CDC. The statutory bonuses under SB 8 (ORS 197A.445) are already available. The impact on supply of affordable housing is expected to be longer-term. Implementa�on Ac�ons •Consult with affordable housing providers to determine what type(s) of incen�ves would be most beneficial in suppor�ng their work. •Evaluate SB 8 to determine how the statutory bonuses compare to the poten�al new bonuses. •City Council Ac�on: Implement through CDC updates. Lead & Partners Lead: Lake Oswego Community Development Partners: Affordable housing providers 2.2 Construc�on Excise Tax (CET) (D09) Descrip�on CET is a one-�me tax on construc�on projects and is a poten�al funding source for affordable housing. Ci�es and coun�es may levy a CET on residen�al construc�on for up to 1% of the project’s permit value; or on commercial and industrial construc�on with no cap on the rate of the CET. The allowed uses for CET funding are defined by state statute 7 and can include support for a variety of housing-related projects and programs. •Residen�al CET revenues must be allocated as follows: o Up to 4% can be used to cover administra�ve expenses incurred from implementa�on of the CET. o 50% must be spent on developer incen�ves (e.g., permit fee and SDC reduc�ons, tax abatements, or finance-based incen�ves). o 35% may be used flexibly for affordable housing programs. o 15% flows to Oregon Housing and Community Services (OHCS) for homeownership programs. OHCS’s policy is to spend the revenue in communi�es where it’s collected. •Commercial/industrial CET has fewer restric�ons on how revenues are spent: o 50% must go towards housing-related programs (not necessarily limited to affordable housing). o 50% is unrestricted and can be used as the City sees fit. 7 Oregon Revised Statutes 320.192-195. PP 22-0005 ATTACHMENT 3/PAGE 27 OF 42 Some ci�es have used CET to pay for gap financing of new affordable development, backfilling SDC waivers, acquisi�on of proper�es for affordable housing preserva�on, and down payment assistance for first-�me homebuyers. As an example, the City of Eugene adopted a CET in 2019, and has used $2.2 million in revenues to leverage $45 million to fund the construc�on of 178 new affordable homes.8 Addi�onal examples are detailed in Appendix A: CET Supplemental Memo. Considera�ons • CET is one of the few available sources of the few available locally-controlled funding streams for affordable housing. •Several other strategies under considera�on for the HPS would depend on adop�on of a new funding source (see Sec�on 3. Con�ngent Strategies, below). Without a new funding stream, the City could not par�cipate meaningfully in those strategies. •CET is a tax on development, meaning that it raises costs for construc�on of commercial, industrial, and/or market-rate residen�al housing. The statute exempts regulated affordable housing, public buildings, hospitals, and certain other types of facili�es. The City can also choose to exempt other types of development (e.g., mul�-family housing, accessible housing, or small housing units) or exclude residen�al development altogether. For example, the City of Tigard exempts ADUs of 1,000 sq � or less and projects valued at less than $50,000; and allows cotage clusters, courtyard units, and quadplexes to be exempted from 75% of the CET.9 •Alterna�vely, by structuring a policy with offse�ng incen�ves or tools for housing to reduce development barriers, the City could poten�ally limit the impact on feasibility for certain housing projects. This strategy can be paired with other complementary strategies to increase its effec�veness. •Because CET revenue is development-derived, it will fluctuate with market cycles. An�cipated Impact •Housing need addressed: Government-subsidized affordable housing for low-income households. CET implementa�on can be tailored to priori�ze certain income levels or other housing needs, such as extremely low-income households (earning below 30% AMI) or residents needing housing with wrap-around support services. •Popula�on served: Low-income households •Income level: 0-80% AMI •Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support produc�on of subsidized affordable housing and other housing programs. Because CET funds offer flexibility for the local government to choose which projects and 8 City of Eugene, Affordable Housing Trust Fund. https://www.eugene-or.gov/4232/Affordable-Housing-Trust-Fund 9 Tigard Municipal Code, Chapter 3.90 Construction Excise Tax. https://library.qcode.us/lib/tigard_or/pub/municipal_code/item/title_3-chapter_3_90 PP 22-0005 ATTACHMENT 3/PAGE 28 OF 42 programs to support, the City has opportuni�es to direct funding toward projects that benefit priority popula�ons that need addi�onal support. A CET has the poten�al to inhibit some development, including housing development (if a residen�al CET is pursued). However, the City has op�ons to avoid impacts to the types of housing most needed by priority popula�ons, thereby limi�ng burdens on these communi�es. Affordable housing already must be exempt. As noted above, the City could also exempt mul�-family housing, small units, ADUs, housing that meets Universal Design criteria, and other types. This is a way to address or mi�gate poten�al burdens. •Housing tenure: For rent or sale •Magnitude: High – The revenue poten�al of a CET in Lake Oswego is poten�ally quite high. Over the last five years, the value of residen�al construc�on and addi�on permits, including mixed-use projects, has totaled over $385M, or an average of $77M per year. Applying a standard 1% CET to this ac�vity could have generated as much as $750k per year for a CET housing fund. A CET applied to commercial permits, which includes mul�- family development, could generate an even greater $850k per year to a housing fund, based on the five-year average. (See Appendix A: CET Supplemental Memo for a more detailed analysis of revenue poten�al.) The CET is a tax on new development ac�vity, and thus has the impact of raising costs on developers. Time Frame Implementa�on: To be determined based on further discussion Impact: This strategy may take several years for funds to accumulate to an amount that could be used to support development of housing. However, ci�es that have adopted a CET have seen real results in terms of housing produc�on within 4 to 5 years. See above for the City of Eugene example. Implementa�on Ac�ons •Evaluate a poten�al approach. Include projec�ons of poten�al revenue and determine what programma�c goals could be accomplished with revenue. Consider both residen�al and commercial/industrial op�ons. •Analyze poten�al impacts to development. •Engage with the development community—including both housing providers that could benefit from CET funds, and developers that might be impacted by the tax. •City Council could impose the CET by adop�on of an ordinance or resolu�on that conforms to the requirements of ORS 320.192–ORS 320.195. •If directed, create a plan for the use of CET funds, in collabora�on with housing providers, low-income communi�es, and other historically marginalized communi�es. Lead & Partners Lead: City of Lake Oswego Community Development Partners: Finance Department; local developers; non-profit housing partners could implement funded programs PP 22-0005 ATTACHMENT 3/PAGE 29 OF 42 2.3 Ver�cal Housing Development Zone Tax Abatement (E03) Descrip�on This abatement is intended to incen�vize mul�-story mixed-use development and affordable housing in targeted areas. To qualify, a project must have improved, leasable, non-residen�al development on the ground floor and residen�al development on the floors above. The program allows a 10-year par�al property tax exemp�on of 20% per floor (and up to 80% total) for mixed- use developments within the designated Ver�cal Housing Development Zone (VHDZ). The exemp�on is only allowed for the improvements to the property (not the land itself), unless the development provides low-income housing; in that case, the land can also be exempted from property taxes at the same rate as the improvements (on a per-floor basis). The low-income units must remain affordable for at least as long as the length of the tax exemp�on. The tax exemp�on is available for both new construc�on and rehabilita�on projects. (Authorized by ORS 307.841-867) Considera�ons • A pilot VHDZ project was recently approved for the North Anchor development site. The City could consider a more broadly-applicable program in an area (or areas) where it wants to encourage mixed-use development. •As men�oned above under Strategy 1.3, the City and par�cipa�ng taxing districts will lose property tax income for the dura�on of the tax exemp�on, reducing revenue for City services and revenue for par�cipa�ng taxing districts. Some taxing districts expressed some resistance to the pilot VHDZ proposal at North Anchor due to this reduc�on in revenue, par�cularly as the VHDZ program is intended to produce market-rate housing. •VHDZ has the poten�al to displace residents by encouraging redevelopment in certain areas. Per state law, a city must consider the poten�al for displacement of households within a proposed VHDZ before designa�ng the zone. An�cipated Impact •Housing need addressed: This strategy has the poten�al to increase development of high-density housing in targeted areas of the city. Stakeholders in the HPS process iden�fied a par�cular need for more mul�- family housing outside the Town Center. •Popula�on served: Low-income to higher-income households •Income level: All incomes •Benefits and Burdens: This strategy is expected to primarily benefit moderate or higher income households, rather than low-income popula�ons, because developers are not required to include affordable units to take advantage of a VHDZ. However, the extra exemp�on for affordable units may incen�vize developers to include those units, thereby benefi�ng low-income popula�ons. Further, increasing housing op�ons in mixed-use areas with good access to services has the poten�al to benefit various popula�ons, including seniors looking to downsize and people with disabili�es who do not drive. PP 22-0005 ATTACHMENT 3/PAGE 30 OF 42 As noted above, VHDZ has the poten�al to displace residents by encouraging redevelopment in certain areas – which could burden low-income households. Equity considera�ons, such as a displacement risk analysis and an�-displacement measures, should be part of implementa�on for this strategy. •Housing tenure: For rent or sale •Magnitude: Low to Moderate – This abatement may have a lower impact on new housing produc�on than the low-income housing tax incen�ves because mixed -use housing tends to produce fewer units, and also because this program is more complicated for the City and applicants. If there are key districts where the City would like to incen�vize more ver�cal buildings and mixed-use, this may be appropriate. If mul�ple programs are available, the VHDZ may compete poorly with more atrac�ve and easier to use tax incen�ves. Time Frame Implementa�on: To be determined based on further discussion Impact: The tax exemp�on can be used once it is adopted, and for as long as the City offers the exemp�on. The impact on housing supply is expected to be longer-term. Implementa�on Ac�ons •Define VHDZ geography(ies). Analyze displacement risk and consider an�- displacement strategies as part of this process. •Work with other taxing jurisdic�ons to gain approval. •City Council ac�on: Adopt tax exemp�on program by resolu�on or ordinance. Lead & Partners Lead: Lake Oswego Community Development Partners: Lake Oswego Finance Department; overlapping taxing jurisdic�ons 2.4 Mul�ple Unit Property Tax Exemp�on (MUPTE) (E04) Descrip�on This exemp�on can be used to encourage mul�-family or middle housing with par�cular features or at par�cular price points by offering qualifying developments a par�al property tax exemp�on for 10 years (or longer, for housing subject to affordability agreements). It can be offered to new development or exis�ng housing that is converted to meet the eligibility criteria. MUPTE is a flexible tax abatement that can be used in various ways to encourage needed housing. The City has broad discre�on as to how to structure the program. Eligibility criteria could include requirements for affordability, accessibility/universal design, unit size, or other desirable features. The City must designate specific areas where the MUPTE applies, unless including affordability as a criterion, in which case the whole city could be eligible. (Authorized by ORS 307.600-637) PP 22-0005 ATTACHMENT 3/PAGE 31 OF 42 Considera�ons • Could incen�vize mul�-family developers to incorporate desirable features in their projects, such as accessible units or family-size units. Affordability to lower-income households could also be an eligibility criterion, if desired. •As noted below, this strategy could outcompete affordable housing tax incen�ves with for-profit developers who would rather build market-rate housing in some cases. An�cipated Impact •Housing Need Addressed: This strategy has the poten�al to increase development of mul�-family housing in targeted areas of the city. Stakeholders in the HPS process iden�fied a par�cular need for more mul�- family housing outside the Town Center. Depending on how it is structured, this program could also encourage apartments with family-sized units (2-3 bedrooms) and accessible housing op�ons for seniors – both of which were also iden�fied by stakeholders as gaps in the local market. •Popula�on served: Depends on how the program is structured; could be targeted to benefit low-income households, people with disabili�es, larger families, etc. •Income level: Depends on how the program is structured. •Benefits and Burdens: This strategy has the poten�al to benefit various priority popula�ons by encouraging housing needed by those communi�es (accessible units, family units, affordable units, etc.). The City could also target a MUPTE program to specific geographies to target housing development in neighborhoods where it is most needed. A challenge for the City will be to determine how best to balance those various needs to determine what housing types or features are most appropriate to include as criteria for the MUPTE abatement. This should be considered in the broader context of the HPS to ensure that the City’s ac�ons benefit all priority popula�ons in equitable ways. No burdens on priority popula�ons are an�cipated for this strategy, provided it is implemented in the ways described above. •Housing tenure: Typically for-rent. •Magnitude: Moderate – This strategy could encourage produc�on of more mul�-family units that meet housing needs not currently being met by the private market. However this program does not necessarily require the provision of affordable housing; therefore, it may outcompete affordable housing tax incen�ves with for-profit developers who would rather build market-rate housing. This program should be carefully considered as compe��ve with the low-income tax exemp�ons. However, the MUPTE can also be designed to require affordable units as well. Time Frame Implementa�on: To be determined based on further discussion Impact: The MUPTE can be used once it is adopted, and for as long as the City offers the exemp�on. The impact on housing supply is expected to be longer- term. Implementa�on Ac�ons •Further evaluate the various op�ons for structuring the MUPTE program to determine whether—and how—it should be implemented. PP 22-0005 ATTACHMENT 3/PAGE 32 OF 42 •Consult with developers and housing providers to determine their level of interest. •Determine desired eligibility criteria (e.g., affordability, accessibility, etc.). •Seek input from overlapping taxing districts on their willingness to support the exemp�on. •City Council Ac�on: Adopt tax exemp�on program by resolu�on or ordinance. Lead & Partners Lead: Lake Oswego Community Development Partners: Lake Oswego Finance Department; overlapping taxing jurisdic�ons 2.5 Pre-approved plan sets for middle housing typologies (A20) Descrip�on The pre-approved plan sets strategy discussed above (Strategy 1.12) could also be used to encourage more development of middle housing typologies, such as duplexes, triplexes, and cotage clusters. Considera�ons • This could help atract developers that typically develop only single-family housing to get involved. •Middle housing builders have expressed support for this strategy and believe it would be frequently used and would cut down on costs. •A poten�al consequence is too much architectural uniformity. •Template plans may not work on all lot layouts or provide enough personal design flexibility, so they would not be appropriate for all projects. Lake Oswego has significant topography and o�en requires customized designs, so template plans for middle housing may be less feasible. •See other considera�ons under Strategy 1.12, Pre -Approved Plan Sets for ADUs. An�cipated Impact •Housing Need Addressed: Increased housing choices, including homeownership op�ons. •Popula�on served: Moderate to higher-income households •Income level: Likely 80% AMI and above •Benefits and Burdens: This strategy is expected to primarily benefit moderate- or higher-income households, rather than low-income popula�ons. However, the strategy may support more affordable homeownership opportuni�es via middle housing development – thereby increasing the overall stock of atainable ownership housing available in the community. This has the poten�al to benefit people of color and other households that have faced systemic barriers to homeownership. Middle housing types with smaller footprints can also benefit seniors looking to downsize. Poten�al burdens from this strategy are that facilita�ng middle housing development could increase likelihood of demoli�on of older low-cost homes and displacement of low-income residents. This strategy should be PP 22-0005 ATTACHMENT 3/PAGE 33 OF 42 paired with a displacement risk analysis and poten�ally displacement mi�ga�on measures to support low-income residents as well as inclusive engagement, home repair assistance, and other programs that support low- income homeowners. •Housing tenure: For sale or rent •Magnitude: Moderate – This strategy would likely lead to more development of middle housing in the city. The cost savings to builders wouldn’t necessarily translate to reduced sale prices or rents, but would have the poten�al to deliver more housing. In addi�on, many forms of middle housing will have a lower market-rate price point than detached single-family housing. Time Frame Implementa�on: Longer Term Impact: The ac�on can begin to have an impact a�er the permit-ready plans are pre-approved and made available to builders. Implementa�on Ac�ons •Evaluate which housing type(s) to adopt plans for and which programma�c approaches to pursue. •Develop middle housing type plans in collabora�on with one or more of the partners listed below. •Work with the Building Department to ensure plans meet all City Code standards, approve the plans, and adopt reduced fees for the plans. •Work with the Building Department to implement a streamlined review process. Lead & Partners Lead: Lake Oswego Community Development (including Building Department) Partners: Universi�es, design ins�tu�ons, and/or design firms 3.Con�ngent Strategies The following strategies describe various ways that the City could allocate funds to support affordable housing produc�on or preserva�on. Each of these strategies are con�ngent on adop�on of a new funding source, such as Construc�on Excise Tax, for the City to par�cipate meaningfully. Currently, the City has very litle in the way of uncommited resources that it can use to support affordable housing. 3.1 Housing Trust Funds (D03) Descrip�on Housing Trust Funds are a public sector tool used to direct financial resources to support a variety of affordable housing ac�vi�es. Housing Trust Funds are not revenue sources themselves, but rather are tools for consolida�ng revenue, planning for how the funds are spent, and direc�ng them to housing programs. A Construc�on Excise Tax could be a poten�al revenue source (see Strategy 2.2). Other sources could include the City’s general fund, TIF funds, state grant funding, and/or other types of taxes or fees. For example, the City of Ashland PP 22-0005 ATTACHMENT 3/PAGE 34 OF 42 dedicates a por�on of its local marijuana sales tax to fund Ashland’s Affordable Housing Trust Fund.10 Considera�ons • Provides flexibility for opportunity-based investment. However, some funding sources (e.g., CET) have requirements for how funds are spent. •Takes �me to accumulate enough to make a difference and requires consistent investment with a long-term outcome perspec�ve. •Relies on iden�fying a sustainable funding source with sufficient revenue to have impac�ul contribu�ons. •There is poten�ally a high cost to seed the program. An�cipated Impact •Housing Need Addressed: Government-subsidized affordable housing. •Popula�on served: Low-income households •Income level: 0-80% AMI •Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support produc�on of subsidized affordable housing and other housing programs. Because Housing Trust Funds offer flexibility for the local government to choose which projects and programs to support, the City has opportuni�es to direct funding toward projects that benefit priority popula�ons that need addi�onal support. This could include extremely- or very-low income residents and those needing wraparound support services. No burdens on priority popula�ons are an�cipated. •Housing tenure: For rent or sale •Magnitude: The amount of housing produc�on depends on the funds raised and contributed through these resources. See Strategy 2.2 (CET) for further evalua�on. In and of itself, the strategy does not result in produc�on of units. Time Frame Implementa�on: To be determined based on further discussion. Con�ngent on adop�on of a new revenue source. Impact: This strategy may take several years for funds to accumulate to an amount that could be used to support development of housing. Implementa�on Ac�ons •Iden�fy a poten�al funding source (or sources). •Iden�fy priori�es for how funds will be spent. •Con�nuously fund a Housing Trust Fund. Lead & Partners Lead: Lake Oswego Community Development Partners: Nonprofit affordable housing providers 10 City of Ashland, Housing Trust Funds. https://www.ashland.or.us/page.asp?navid=10828 PP 22-0005 ATTACHMENT 3/PAGE 35 OF 42 3.2 Low-interest loans/Revolving loan fund (D13) Descrip�on This strategy would provide low-interest loans or revolving loans for affordable housing produc�on, preserva�on, or maintenance ac�vi�es. Housing Repair and Weatheriza�on Assistance is offered to low-income households through various County governments – the City could contribute funding for use within Lake Oswego. An example of offering loans for housing produc�on is the City of Tigard’s Middle Housing Revolving Loan Fund. This fund was created by the Tigard City Council in 2021, using funds from the American Rescue Plan Act, and was made available in September 2023. The fund is managed by the Network for Oregon Affordable Housing, Cra�3, and the Community Housing Fund, and will provide short-term construc�on lending to developers building middle housing. At least 30 percent of the units must be made available to lower-income buyers par�cipa�ng in down payment assistance programs. Considera�ons • Opportuni�es depend on what type of loans are offered. •Loans for home repair could help prevent displacement by assis�ng exis�ng low-income residents remain in their homes. •Loans for affordable housing development could help non-profit developers bridge gaps in construc�on lending. An�cipated Impact •Housing Need Addressed: New or rehabilitated housing for low-income households. •Popula�on served: Low-income households •Income level: 0-80% AMI •Benefits and Burdens: This strategy would primarily benefit low-income households by increasing the City’s capacity to support produc�on or preserva�on of affordable housing, or to contribute to programs that promote housing stability for low-income residents. No burdens on priority popula�ons are an�cipated. •Housing tenure: For rent or sale •Magnitude: High (if funded via a new revenue source; else Low) – This strategy can be used to par�cipate in public/private partnerships and administer the types of programs discussed in previous sec�ons. The benefit of this program is that it regenerates funding as loans are repaid to be used again on future projects. For developers who need financing for their projects (which is almost always the case), offering lower-interest loans that may have other favorable terms can have a large impact on the feasibility of a development, as interest rates are a significant cost factor over �me. Time Frame Implementa�on: To be determined based on further discussion. Con�ngent on adop�on of a new revenue source. Impact: The impact on housing produc�on or preserva�on is an�cipated to be longer term. PP 22-0005 ATTACHMENT 3/PAGE 36 OF 42 Implementa�on Ac�ons •Iden�fy a poten�al funding source (or sources). •Iden�fy priori�es for how funds will be spent. •Develop loan programs, poten�ally in partnership with lending ins�tu�ons. Lead & Partners Lead: Lake Oswego Community Development Partners: Housing developers and providers; Clackamas County and other organiza�ons offering home repair and weatheriza�on services 3.3 Community Land Trusts (F03) Descrip�on Community land trust (CLT) is a model wherein a community organiza�on owns land and provides long-term ground leases to low-income households to purchase homes on the land, agreeing to purchase prices, resale prices, equity capture, and other terms. This model allows low-income households to become homeowners and capture some equity as the home appreciates, but ensures that the home remains affordable for future homebuyers. Proud Ground is an example of a CLT working in the region. Proud Ground partners with other organiza�ons to build the homes, then manages the sales, ground leases, and other programs. Habitat for Humanity uses a similar approach to CLT to maintain the affordability of the homes it builds—largely through volunteer labor and limi�ng resale prices, while allowing owners to accrue home equity. Portland Region Habitat for Humanity is the local affiliate organiza�on. Ci�es can support CLT and other models for affordable homeownership by providing land, grants/loans, direct funding, or leveraging state/regional resources. Considera�ons • Dependent on partnership, funding stream, and land acquisi�on. •Financing the ini�al acquisi�on of land and securing enough equity to scale the strategy are key challenges for the CLT model. Across the country, land trusts use a variety of land acquisi�on mechanisms, from private financing and municipal subsidies to rela�onships with land bank en��es. •CLTs are unlikely to produce substan�al unit numbers unless significant resources are raised from a broad mix of funding partners, but they can provide permanent affordability of the units they develop. The City’s funds can help to leverage investments from other partners. An�cipated Impact •Popula�on served: Low-income households •Income level: 0-80% AMI Benefits and Burdens: In addi�on to benefi�ng low-income households, depending on how it is administered, this strategy has the poten�al to benefit communi�es that have faced structural barriers to homeownership – par�cularly people of color and other marginalized communi�es. No burdens on priority popula�ons are an�cipated. •Housing tenure: For sale PP 22-0005 ATTACHMENT 3/PAGE 37 OF 42 •Magnitude: Moderate (if funded via a new revenue source; else Low) – The effec�veness and impact of CLT programs is highly reliant on the partner who is developing and administering the property. Another factor is the availability of residen�al building sites large enough to accommodate mul�ple housing units, though CLT model can be applied to small developments as well. Ci�es can provide en�tlements, incen�ves, and perhaps funding to the development partner (usually a non-profit agency). This is one of the few models to provide lower-cost ownership opportuni�es as opposed to rental opportuni�es. Time Frame Implementa�on: To be determined based on further discussion. Con�ngent on adop�on of a new revenue source. Impact: Timing of impact depends on partnership opportuni�es with a CLT. Given availability of funds, impact to housing produc�on would be expected to occur over the longer term. Implementa�on Ac�ons •Work with CLTs to discuss opportuni�es in Lake Oswego. •Take ac�on on partnership models and programs that best benefit the organiza�on and the City’s financial and/or administra�ve capacity. •Poten�ally provide on-going financial support through development/ rehabilita�on grants, homeownership grants/loans, dona�on of City-owned land, and/or an annual funding set-aside. Lead & Partners Lead: Lake Oswego Community Development Partners: Proud Ground, Habitat for Humanity, and/or other nonprofit developers of for-sale units 3.4 Preserving low-cost rental housing to mi�gate displacement (F05) Descrip�on This strategy involves preven�ng displacement and preserving "naturally occurring" affordable housing through acquisi�on, low-interest loans/revolving loan fund for preserva�on, and/or code enforcement. Most low-income households do not live in the limited supply of subsidized affordable units that are available. Rather they live in market rate housing that is “naturally” more affordable due to the loca�on, age, size, condi�on, or other factors that lead to lower rent or cost. O�en it is much more cost effec�ve for housing agencies to try to preserve this type of housing (e.g., a mobile home park) than try to create an equivalent number of new units. While con�nuing to produce new higher-standard affordable units is necessary and key goal, protec�ng the units that are currently low cost is also important. Considera�ons • Dependent on partnership and funding stream. •Acquisi�on of exis�ng low-cost housing is only possible if property owners are willing to sell. •Lake Oswego does not have a large stock of naturally occurring affordable housing. However, what ’s there is important to preserve if possible. PP 22-0005 ATTACHMENT 3/PAGE 38 OF 42 An�cipated Impact •Housing Need Addressed: Government-subsidized affordable housing. •Popula�on served: Low-income households •Income level: 0-80% AMI •Benefits and Burdens: This strategy is expected to benefit low-income residents by ensuring preserva�on of the city’s low-cost housing stock, and ensuring it remains affordable long-term. No burdens on priority popula�ons are an�cipated. •Housing tenure: For rent •Magnitude: Moderate (if funded via a new revenue source, and if inventory is available; else Low) – This can be an effec�ve approach and is a major focus of the Portland Housing Bureau, for instance, which has bought large older apartment complexes for preserva�on, and hotels/motels for conversion. In becoming involved in areas or proper�es where housing is naturally less expensive, it can be important to be cau�ous and take a “first do no harm” approach, as atempts to improve or invest in these proper�es can some�mes have the unintended effect of raising property value and rents/housing costs. Time Frame Implementa�on: To be determined based on further discussion. Con�ngent on adop�on of a new revenue source. Impact: This strategy can begin to have an impact a�er the City has conducted an inventory of affordable housing and accumulated adequate funds to contribute to housing acquisi�on. Impact to the City’s supply of affordable housing is expected to be longer term. Implementa�on Ac�ons •Iden�fy a poten�al funding source (or sources). •Iden�fy affordable housing units to preserve (see Strategy 1.10. •Develop loan programs, poten�ally in partnership with lending ins�tu�ons. Lead & Partners Lead: Lake Oswego Community Development Partners: Housing property owners; nonprofit affordable housing providers PP 22-0005 ATTACHMENT 3/PAGE 39 OF 42 4.Not Recommended The following strategy is not recommended for implementa�on in the HPS because it is not expected to have a meaningful impact on housing produc�on in Lake Oswego. 4.1 Homebuyer Opportunity Limited Tax Exemp�on Program (HOLTE) (E06) Descrip�on The purpose of this program is to encourage homeownership among low- and moderate-income households and to s�mulate the purchase, rehabilita�on, and construc�on of residences in certain areas as a form of infill development. The program allows a limited 10-year property tax exemp�on to owner-occupied single-unit housing that has a market value upon comple�on of no more than 120% of median sales price of dwelling units located within the city (or a lesser value adopted by the jurisdic�on). The tax exemp�on can be granted for up to 10 successive years, and only applies to the value associated with property improvements, not the land value. While not required by statute, local governments can establish income criteria for eligible homebuyers. For example, the City of Portland limits eligible homebuyers to those earning no more than 100% of the area median income.11 Single-family housing units, townhomes, mul�-family homeownership units (i.e., condos), and manufactured housing are eligible for the exemp�on. Eligible units can be new construc�on or rehabilitated exis�ng homes. The housing must be in an area defined and designated by the City. The City also would create criteria and establish required design elements or public benefits that would be applied to proper�es using the exemp�on. (Authorized by ORS 307.651-687) Considera�ons • Strategy to facilitate homeownership among moderate-income households. •Effec�veness depends on the local housing market and land costs. The recent median sale price in Lake Oswego is $780k, so this program could in theory apply to home values of $940k (120% of median). An income of about $200k is needed to afford the median home with a 20% down payment. With less of a down payment, even higher incomes would be needed. The HNA found that the number of homes selling at the lower end (less than $500k for instance) was a small share of the overall inventory. •The City could consider lower sales price limits (below 120% of median sales price), but this would be less en�cing to developers given the profit poten�al of market-rate development in Lake Oswego. An�cipated Impact •Housing Need Addressed: Homeownership op�ons for moderate-income households. The HNA indicates a need for 1,024 new ownership units (52% of new needed housing) over the 20-year period. The HNA also indicates that 11 City of Porland, HOLTE Program. https://www.portland.gov/phb/holte/sale-requirements PP 22-0005 ATTACHMENT 3/PAGE 40 OF 42 16% of all new needed units will need to be affordable for moderate-income households (80-120% AMI). •Popula�on served: Moderat e-income households •Income level: 80-120% AMI •Benefits and Burdens: If calibrated effec�vely, this strategy would be expected to benefit moderate-income households by increasing affordable homeownership opportuni�es. This would especially benefit first-�me homebuyers that would otherwise be challenged to purchase a home in Lake Oswego, and poten�ally seniors looking to purchase a downsized home. This strategy also has the poten�al to benefit communi�es that have historically faced structural barriers to homeownership – par�cularly people of color and other marginalized communi�es. No burdens on priority popula�ons are an�cipated. •Housing tenure: For sale •Magnitude: Low – This program is expected to have limited impact due to the land and housing costs that prevail in Lake Oswego. Unfortunately, there will be few opportuni�es for appropriate homes for lower-income first-�me homebuyers. While this exemp�on would certainly help with homebuyer finances, it would not apply to land cost, and there are few homes or neighborhoods in the community that are low-cost candidates for rehabilita�on. Time Frame Implementa�on: Not Recommended Impact: The HOLTE can be used once it is adopted, and for as long as the City offers the exemp�on. The impact on housing supply is expected to be longer- term. Implementa�on Ac�ons •Define eligibility and design criteria. •Work with other taxing jurisdic�ons to gain approval. •City Council ac�on: Adopt tax exemp�on program by resolu�on or ordinance. Lead & Partners Lead: Lake Oswego Community Development Partners: Lake Oswego Finance Department; overlapping taxing jurisdic�ons PP 22-0005 ATTACHMENT 3/PAGE 41 OF 42 Appendix A: CET Supplemental Memo The atached memo provides addi�onal informa�on about Construc�on Excise Tax (CET). An ini�al version of this memo was included in the agenda packet for the Planning Commission’s January 8, 2024 Work Session. Addi�onal informa�on has been added, exam ining poten�al CET revenue genera�on based on past permit data in Lake Oswego. PP 22-0005 ATTACHMENT 3/PAGE 42 OF 42 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Wastewater Treatment Facility Request for Proposals Honorarium Meeting Date: July 16, 2024 Report Date: July 5, 2024 Staff Member: Department: Stefan Broadus, PE Director of Special Projects Public Works - Engineering Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval☐Public Hearing ☐Denial ☐Ordinance ☐None Forwarded ☐Resolution ☐Not Applicable ☐Information Only Comments: ☐Council Direction☐Consent Agenda Staff Recommendation: Approve an Honoraria for the Request for Proposals for Wastewater Treatment Facility Project. Recommended Language for Motion: Move to authorize the City Manager to award honoraria payments to responsive proposals to the Request for Proposals for the Wastewater Treatment Facility project not to exceed $500,000. Project / Issue Relates To: Collaborate with the City of Portland to make a financially and environmentally responsible long-term investment in a wastewater treatment facility. Issue before Council (Highlight Policy Question): ☒Council Goals/Priorities ☐Adopted Master Plan(s)☐Not Applicable BACKGROUND The existing Tryon Creek Wastewater Treatment Plant (TCWTP) was built in 1964 and is owned and operated by the Portland Bureau of Environmental Services (BES). The plant is reaching the end of its useful life cycle and needs to be upgraded or replaced. In 2018, the cities of Lake Oswego and Portland began actively exploring the option of a new Wastewater Treatment Facility (WWTF) to replace the existing Tryon Creek plant under a public- private partnership. On December 18, 2018, the Council approved Resolution 18-55, which 10.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY authorized a special procurement using a competitive process to enter into a Design, Build, Finance, Operate, and Maintain (DBFOM) contract for new wastewater treatment plant. Following a competitive process that included a solicitation for Requests for Qualifications (February 2019) and then Request for Proposals (Fall 2020) from the qualified firms, the City selected EPCOR Foothills Water Partners (EWFP) as the preferred proposer. On May 4, 2021, the City entered into a Preliminary Services Agreement (PSA) for the DBFOM of a new plant with EWFP. Under the PSA, EFWP advanced designs to a 90% level and successfully completed phase one of the WWTF Project. In January 2024, the City and EWFP were not able to reach agreement on the terms of the Project Agreement, and the Council directed staff to explore competitive procurement methods, including special procurement and alternative contracting methods for final design, construction, operation and maintenance of a new WWTF. On May 7th 2024, Council approved Resolution 24-19 amending Resolution 18-55 and authorizing a special procurement for a new Design, Build, Operate, and Maintain (DBOM) procurement for the WWTF project. DISCUSSION The DBOM contract will be the result of a two-step procurement. The first step is a Request for Qualifications. The three highest scored responses are expected to be shortlisted and eligible to submit on the second step of the procurement which is a Request for Proposals. It is industry standard practice with this delivery method to provide an honorarium or stipend to help to partially reimburse the proposers not selected for award for their considerable effort in preparing a fully responsive proposal. Many other procurement methods do not use an honorarium because the level of effort required to submit a proposal is significantly less. For example, the original DBFOM procurement for the Project did not include an honorarium because proposers were not asked to commit to pricing at the time of the proposal, complete design elements, plan detailed construction logistics, or lay out thirty years of O&M in their proposal. Submitting a bid or proposal for any procurement is a business decision that incurs costs for these entities, but fixed price DBOM and similar models are on the next order of magnitude and thus an honorarium should be considered. The fixed price DBOM will provide competitive proposals to help ensure the City is getting the best price the market can provide. It is anticipated that the RFQ would shortlist 3 firms and the RFP would result in a Project Agreement with the top firm. The two firms not selected would each receive the recommended honorarium of $125,000 assuming a responsive proposal. The top firm would only receive an honorarium in the event the City elects to not proceed with the project, which is not anticipated. This is typically twice the amount provided to the firms not selected, in this case $250,000. Under this structure, the maximum value of the honoraria would be $500,000, but the anticipated total would be $250,000. RECOMMENDATION Move to authorize the City Manager to award honoraria payments to responsive proposals to the Request for Proposals for the Wastewater Treatment Facility project not to exceed $500,000. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-28, A Resolution of the City Council of the City of Lake Oswego Submitting a Measure to the Voter’s at the November 5, 2024 General Election to allow a road safety project at the intersection of Stafford Road and Childs Road Meeting Date: July 16, 2024 Report Date: July 5, 2024 Staff Member: Martha Bennett, City Manager Ellen Osoinach, City Attorney Department: City Manager’s Office City Attorney’s Office Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval ☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded ☒Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction☐Consent Agenda Staff Recommendation: Adopt Resolution 24-28. Recommended Language for Motion: Move to adopt Resolution 24-28. Project / Issue Relates To: n/a Issue before Council (Highlight Policy Question): Shall the City Council refer Resolution 24-28 to the November 2024 ballot for voter approval? ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable BACKGROUND In 2018, Clackamas County completed a road safety audit of Stafford Road between Lake Oswego and Wilsonville. One of the top priority projects was installing a signal or a roundabout at the intersection of Stafford Road and Childs Road. The County began design work in 2021 and has refined the design through today. The County needs approximately 0.4 acres of Stevens Meadows property—2% of the park’s 25 acres—for the proposed design as follows: 10.2 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY •0.2 acres for road improvements •0.2 acres for temporary construction access and staging, including realignment of the existing gravel driveway used by the City’s parks maintenance staff to maintain Stevens Meadows. After project completion, the construction access road will become the new permanent gravel driveway and access road for park maintenance The existing gravel driveway covers about 0.1 acres and will no longer be used as a road. In November 2021, the voters of the City of Lake Oswego approved an initiative amending Chapter X of the City' s Charter. The 2021 initiative expanded Chapter X' s protections to 14 additional properties beyond the initial one park, designated in the charter as " nature preserves," and also expanded the list of prohibited improvements. One of the activities that is prohibited is construction of, ". . . any parking lot, road, or trail for motorized vehicles within a Nature Preserve." City Council, with Clackamas County Board of Commissioners support, directed staff to investigate whether the ballot initiative process could allow voters to decide whether to allow park property to be used for the County road project. The ballot measure as proposed would give voters the decision whether to amend the Charter to withdraw up to 0.4 acres of park property from Chapter X. If the voters approve the measure, the Charter Amendment must be drafted after the election, and neither the ballot title nor the explanatory statement will include proposed amendment language. In order to better inform Council and the public about how the Charter might be amended in conformance with a successful ballot measure, the City Attorney has drafted preliminary language (Attachment 3). DISCUSSION POLLING To initiate the ballot preparation process and to gauge the opinions of the community, staff hired DHM and Quinn Thomas for polling and communications strategy. Public opinion polling took place from June 27 to July 2, 2024. The purpose of the survey was to evaluate voter support and assess voter priorities related to the proposed road project. Top level polling results will be shared during the July 16 City Council meeting (Attachment 3). ELECTION DEADLINES The election filing deadlines for a city-referred measure to the November 5, 2024 election are as follows: •August 16th— last day a City may file a ballot title for publication of notice. •Electors have seven (7) business days to challenge a ballot title in circuit court. Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY •August – Submit communications material to the Secretary of State for “Safe Harbor” review. •September 5th—last day a City may file a notice of measure election, which contains the ballot title and an explanatory statement. The notice may only be filed upon completion of the ballot title challenge process. •September 9th—last day to file arguments for inclusion in the county voters’ pamphlet. City staff may not file or assist in the filing of arguments in support or opposition. •September to November – public information distribution •November 5th – Election Day So long as the City adopts Resolution 24-28 in July, City staff will be able to meet these deadlines. FISCAL IMPACT Staff has contracted polling and communications work to DHM and Quinn Thomas. Current expenses reflect the work performed to date. If City Council elects not to move forward with the proposed Resolution for the November 2024 ballot, the City will end all expenditures, including staff time, on the measure effective immediately. Additionally, if the Council chooses not to move forward with the ballot measure, Clackamas County might proceed with condemnation of a portion of the Steven Meadows property or withdraw from the project entirely and redirect the funds to other important road projects in the county. Condemnation would require staff time and additional funding; project withdraw would not result in additional City expenditures or staff time. RECOMMENDATION Staff recommends adoption of Resolution 24-28. ATTACHMENTS 1.Resolution 24-28 2. Top-level Polling Results, prepared by DHM 3.Draft Charter Language Resolution 24-28 Page 1 of 3 RESOLUTION 24-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO SUBMITTING A MEASURE TO THE VOTER’S AT THE NOVEMBER 5, 2024 GENERAL ELECTION TO ALLOW A ROAD SAFETY PROJECT AT THE INTERSECTION OF STAFFORD ROAD AND CHILDS ROAD. WHEREAS, the City Charter prohibits the City from allowing road construction on Stevens Meadows Park, which is adjacent to Stafford and Childs Roads; and WHEREAS, Clackamas County is responsible for Stafford and Childs Roads and has determined that improvements to the Stafford/Childs intersection are necessary to ease congestion and reduce injuries from accidents; and WHEREAS, the County’s road safety project will reduce crashes, ease traffic congestion, create bike lanes, make safer pedestrian paths, and realign the existing gravel driveway used for park maintenance; and WHEREAS, the County’s final design for the project requires the use of about 0.4 acres of Stevens Meadows—2% of the park’s total acreage—for the following purposes: about 0.2 acres for permanent road improvements and about 0.2 acres for temporary construction access and staging; and WHEREAS, the City’s only vehicular access to maintain the park is via the existing gravel driveway; and WHEREAS the County’s final design also calls for realigning the existing gravel driveway and connecting it to the temporary construction access road; and WHEREAS, once the County road safety project is complete, the temporary construction access road will become the new permanent gravel driveway and access road for park maintenance; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Council refers to the November 5, 2024 election a ballot measure proposing to allow a road safety project on Stevens Meadows Park by amending the Charter. Section 2. The Clackamas, Multnomah, and Washington County Elections Offices will conduct the election. The precincts for said election shall be and constitute all of the territory included within the corporate limits of the City of Lake Oswego. Section 3. The ballot title certified and filed by the City Council shall be as follows: Caption: Allows road safety project, driveway realignment on specific park property. ATTACHMENT 1 Resolution 24-28 Page 2 of 3 Question: Shall Lake Oswego amend Charter to allow Clackamas County to improve road safety using 0.4 acres of Stevens Meadows? Summary: The City owns Stevens Meadows, a 25-acre park outside City limits in Clackamas County. The County is responsible for Stafford and Childs Roads which are adjacent to the park. The County has determined that improvements to the Stafford/Childs intersection are necessary to ease congestion and reduce injuries from accidents. The road improvements, which will be paid for and constructed by the County, will reduce crashes, ease traffic congestion, and create bike lanes and safer pedestrian paths. The County estimates the road improvements will decrease crashes by 85% at the intersection. The County needs to use about 0.2 acres—1% of the total—for these road improvements. The project will also realign an existing gravel driveway used for park maintenance, affecting an area of about 0.2 acres. The City Charter prohibits the City from allowing roads on Stevens Meadows. If approved, this measure would amend the Charter, allowing the City to enable County use of up to 0.4 acres of Stevens Meadows Park for the limited purposes of public safety road improvements and driveway realignment. Section 4. The City Manager, City Attorney, and City Recorder shall take all steps on behalf of the City as necessary to carry out the intent and purposes of this resolution in compliance with state and local law including but not limited to publishing the ballot title as provided by state law, publishing notice of the measure as required, submitting an explanatory statement, and filing this measure with the appropriate County Elections Divisions. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 16th day of July, 2024. AYES: NOES: EXCUSED: ABSTAIN: ___________________________________ Joseph M. Buck, Mayor ATTEST: ___________________________________ Kari Linder, City Recorder Resolution 24-28 Page 3 of 3 APPROVED AS TO FORM: ________________________________ Ellen Osoinach, City Attorney 503.220.0575 555 SE MLK Jr Blvd, Suite 105 Portland, OR 97214 www.dhmresearch.com DHM Research | Stevens Meadow Ballot Survey | June 2024 1 July 9, 2024 To: Madison Thesing, City of Lake Oswego From: Michelle Neiss, DHM Research Re: City of Lake Oswego Stevens Meadow Ballot Measure Survey, #01310 Introduction & Methodology From June 27-July 2, 2024, DHM Research conducted a survey of voters in the City of Lake Oswego. The purpose of the survey was to evaluate voter support and assess voter priorities related to the proposed safety improvements on Stafford Road and Childs Road. Results will aid the council in deciding whether to proceed with putting the proposal to voters in the fall election. Research Methodology The hybrid survey consisted of n=400 Lake Oswego voters and took approximately 12 minutes to complete. This is a sufficient sample size to assess voter opinions generally and to review findings by multiple subgroups, including age, gender, and zip code. Hybrid Respondents were contacted from multiple lists which may include a list of registered voters; a landline household list compiled from public records and consumer lists; and a cellular consumer list based off of cell and cable consumer information matched to publicly available address information. Telephone respondents were contacted by a live interviewer and text-to-online respondents received a text invitation directing them to an online survey. In gathering responses, a variety of quality control measures were employed, including questionnaire pre-testing and validation. Quotas were set by age, gender, ethnicity, education, political party, and zip code to ensure a representative sample. Statement of Limitations Any sampling of opinions or attitudes is subject to a margin of error. The margin of error is a standard statistical calculation that represents differences between the sample and total population at a confidence interval, or probability, calculated to be 95%. This means that there is a 95% probability that the sample taken for this study would fall within the stated margin of error if compared with the results achieved from surveying the entire population. The margin of error for this survey is +/- 4.9%. DHM Research Background DHM Research has been providing opinion research and consultation throughout the Pacific Northwest and other regions of the United States for over 40 years. The firm is nonpartisan and independent and specializes in research projects to support public policy. ATTACHMENT 2 DHM Research | Stevens Meadow Ballot Survey | June 2024 2 City of Lake Oswego Stevens Meadows Ballot Measure Survey June 27–July 2, 2024 City of Lake Oswego Voters N=400, 12 minutes; ±4.9% margin of error DHM Research Project #0 1310 [Telephone only] If at any time you are unsure of your answer, just let us know. VOTER MOOD 1. All things considered, would you say that things in Lake Oswego are headed in the right direction or are they off on the wrong track? Response category n=400 Right direction 61% Wrong track 18% Don’t know 21% 2. What would you say is the biggest issue facing the city of Lake Oswego at this time? [Open] Response category n=400 Transportation/Infrastructure (NET) 21% Trafﬁc 8% Roads/Road maintenance 5% Walkability/sidewalks 5% Infrastructure, general 4% Parking 1% Bike lanes 1% Housing affordability 15% Growth/Population/Development 12% Education/Schools 11% Economic issues (NET) 9% Cost of living/Inﬂation 4% Taxes 3% Economy 1% Economic inequality <1% Recession <1% Poor le adership/government mismanagement 5% Lake, lake access and ownership 5% Crime/Public safety 5% Social inequality/Discrimination 5% Environment/Pollution/Climate change 4% Tree management 3% Racism/Race 2% Ethics/Morals/Values 2% Policing (NET) 1% Anti-police sentiment 1% Support for police <1% Spillover from Portland/other counties 1% DHM Research | Stevens Meadow Ballot Survey | June 2024 3 Response category n=400 Political division/Partisanship 1% Need more social services 1% Mental health <1% Immigration/Illegal immigration <1% Other mentions 6% Don’t know 4% Nothing 3% No detailed mentions 1% INITIAL BALLOT TEST The following measure may be on the ballot in the city of Lake Oswego in November 2024. Please listen carefully, this is exactly how it will appear on the ballots. A measure that allows road safety improvements on speciﬁc park property; amends Charter. Shall Lake Oswego allow Clackamas County to improve safety using 0.2 acres of Stevens Meadows Park for road construction? 3. If the election were today, would you vote “yes” to support the measure, or “no” to oppose it? Response category n=400 Total Yes 48% Yes —certain 22% Yes —lean 26% Total No 23% No—lean 13% No—certain 10% Don’t know 29% BALLOT ELEMENTS The following is more information about the proposed safety improvements on Stafford Road and Childs Road and how it could beneﬁt the community. For each, indicate if knowing this makes you much more positive, somewhat more positive, neither positive nor negative, somewhat more negative, or much more negative about the measure. Response category Total Positive Much more positive Somewhat more positive Neither positive nor negative Total Negative Somewhat more negative Much more negative Don’t know 4. The project will require that the county use 0.2 acres of Stevens Meadows Natural Area, adjacent to the road. 43% 20% 23% 23% 26% 16% 10% 7% DHM Research | Stevens Meadow Ballot Survey | June 2024 4 Response category Total Positive Much more positive Somewhat more positive Neither positive nor negative Total Negative Somewhat more negative Much more negative Don’t know 5. The County solicited feedback from residents and redesigned their proposal to try to meet the needs and priorities of the community. 70% 34% 36% 15% 5% 2% 3% 10% 6. The County will pay the full cost of the $17 million improvement. 67% 42% 25% 19% 8% 5% 3% 6% 7. A 2018 safety audit of Stafford Rd between Lake Oswego and Wilsonville identiﬁed the Childs Rd intersection as a key priority to improve the safety of the corridor. Planning for this improvement has been under way for several years. 73% 46% 27% 16% 5% 4% 2% 6% 8. Which of the following is the most important to you when it comes to thinking about the proposed interchange improvement at Childs Rd? Response category n=400 Reducing trafﬁc crashes that cause injuries to people and property damage 49% Preservation of protected natural areas 11% Pedestrian and bicyclist improvements 10% Cost to Lake Oswego residents 10% Reduced commute times 7% Environmental impact 6% Something else [Open] 4% [Don’t read] Don’t know 2% MESSAGES The following are reasons that some people support the use of limited City park land for Clackamas County’s road project. For each, indicate if you think it is a very good, good, poor, or very poor reason to support it. Response category Total Good Very good Good Total Poor Poor Very poor Don’t know 9. If we reject this plan, the County may cancel or postpone the improvements, which leaves us with a dangerous intersection and long trafﬁc delays. 49% 26% 22% 38% 20% 18% 13% 10. Installing a roundabout at Child’s Lane will reduce congestion and allow trafﬁc to ﬂow more smoothly along Stafford Rd. 81% 47% 33% 13% 6% 7% 6% DHM Research | Stevens Meadow Ballot Survey | June 2024 5 The following are reasons that some people oppose this measure. For each, indicate if you think it is a very good, good, poor, or very poor reason to oppose it. Response category Total Good Very good Good Total Poor Poor Very poor Don’t know 19. Lake Oswego residents do not want new road construction impacting natural areas, including Stevens Meadows. The beneﬁts of this proposal are not high enough to approve an exception. 33% 15% 18% 54% 30% 24% 12% 20. The city knew about the restrictions on Stevens Meadows land and should have raised those issues earlier in the process. Engineers should ﬁnd another solution that increases safety while preserving natural lands. 47% 17% 30% 40% 22% 18% 13% 21. Protecting natural areas is more valuable to the community than expanding roads so people can have a faster commute. 50% 21% 29% 45% 26% 19% 6% Response category Total Good Very good Good Total Poor Poor Very poor Don’t know 11. This section of road is one of the most accident-prone and dangerous in the area. We have a responsibility to ﬁx it–and the improvements will reduce fatal and injury accidents by 88%. 90% 61% 29% 7% 3% 3% 4% 12. The project connects bike trails in Lake Oswego to the existing bike lanes along Stafford. It’ll increase safety for bicyclists and reduce delays for motorists. 83% 51% 32% 11% 5% 6% 6% 13. This project is a great deal for Lake Oswego. If approved, Clackamas County will pay the full cost of the improvements, with no funding coming from the City of Lake Oswego and no tax increase for city residents. 87% 59% 28% 7% 4% 3% 6% 14. The improvements are designed to reduce environmental impacts and protect high value natural resources in perpetuity. 83% 41% 43% 9% 5% 4% 8% 15. Clackamas County designed these improvements based on feedback from community members about their safety and trafﬁc ﬂow concerns. By moving forward with this project, Lake Oswego and the county are responding to the community’s concerns. 85% 47% 38% 8% 5% 3% 7% 16. The people most affected by the safety and traffic problems along Stafford Rd live outside of Lake Oswego’s city limits and do not get to vote on this. We have a responsibility to listen to our neighbors and work to support them on these safety improvements. ` 67% 28% 39% 23% 16% 8% 10% 17. The ballot measure upholds the city's commitment to obtain voter approval for project-speciﬁc development in natural areas. 83% 42% 41% 9% 7% 2% 9% 18. Approving this plan will protect water quality and ﬁsh habitat in Pecan Creek, which is just south of Childs Road. 77% 43% 34% 11% 8% 4% 12% DHM Research | Stevens Meadow Ballot Survey | June 2024 6 FINAL BALLOT TEST Sometimes people change their minds when they learn more about an issue. 22. Now that you’re heard more about it, if the election were today, would you vote YES to support the measure to allow for road construction or NO to oppose it? Response category n=400 Total Yes 75% Yes —certain 40% Yes —lean 36% Total No 16% No—lean 9% No—certain 6% Don’t know 9% MESSENGERS For the following individuals or groups, who would you trust when it comes to deciding about how to vote for the ballot measure? Please indicate if you would place a lot of trust, some trust, not much trust, or no trust at all in those individuals or groups. Response category Total Trust A lot of trust Some trust Total No trust Not much trust No trust at all Don’t know 23. Lake Oswego City Councilors 52% 11% 41% 43% 28% 15% 5% 24. Environmental advocates 66% 19% 46% 32% 18% 14% 2% 25. First responders, such as the police, ﬁre, and EMS staff who respond to trafﬁc accidents 90% 66% 24% 7% 4% 2% 3% 26. County residents who live along or near Stafford Rd 80% 29% 51% 15% 12% 3% 5% 27. Leaders of local nonproﬁts 51% 13% 38% 42% 31% 11% 8% 28. Local community groups 66% 10% 56% 28% 22% 6% 6% 29. County Commissioners and project staff 54% 8% 46% 41% 26% 15% 4% DHM Research | Stevens Meadow Ballot Survey | June 2024 7 CHAPTER X SITUATIONS In 2021, Lake Oswego voters approved an amendment to the city’s charter, which expanded protections for local natural areas. Fifteen natural areas were designated as under protection, with increased limits on the City’s use of those lands. The voters are required to approve proposed uses restricted by Chapter X 30. When the city is weighing developments that are restricted by Chapter X, which of the following best describes how you feel about the city putting proposed development to voters? Response category n=400 If the city explores multiple options and then puts the issue to voters, they are allowing the voters to have the ﬁnal say, which is what voters wanted. 62% By entertaining the possibility of development on protected lands, the council is disregarding voters’ intent in passing the Chapter X amendment. 20% Don’t know 19% DEMOGRAPHICS These last questions make sure we have a valid sample of the community. It’s important to collect answers to all of the following questions, and please keep in mind that your responses are conﬁdential. 31. How do you describe your gender? Response category n=400 Man 47% Woman 53% Non-binary or gender non- conforming -- Another way [Open] -- I prefer not to say -- DHM Research | Stevens Meadow Ballot Survey | June 2024 8 32. Which of the following best describes your race or ethnicity? You may choose more than one. [Allow for multiple responses] Response category n=400 Asian/Pacific Islander 4% Black/African/African American 3% Hispanic/Latino/a/x 6% Native American/American Indian 2% White/Caucasian 77% Other 8% Don’t know 1% I prefer not to say 6% White alone 73% POC 21% 33. Which category best describes your gross household income, before taxes? Remember to include everyone living in your household. Your best estimate will do. Response category n=400 Less than $25,000 5% $25,000 to less than $50,000 8% $50,000 to less than $75,000 8% $75,000 to less than $100,000 13% $100,000 to less than $150,000 18% $150,000 or more 37% I prefer not to say 11% 34. Age Response category n=400 18–29 15% 30–44 20% 45–64 32% 65+ 32% 35. What is your party registration? Response category n=400 Democrat 43% Republican 20% Another party 7% Not afﬁliated with a political party 30% DHM Research | Stevens Meadow Ballot Survey | June 2024 9 36. Voting history Response category n=400 0 of 4 9% 1 of 4 10% 2 of 4 17% 3 of 4 20% 4 of 4 44% 37. Zip code Response category n=400 97034 50% 97035 50% 38. What is the highest level of education that you have completed? Response category n=400 Less than high school 1% High school diploma/GED 8% Some college/2-year degree 20% College degree/4-year degree 37% Graduate/professional school 33% I prefer not to say 2% Downloaded from https://ecode360.com/LA4508 on 2024-07-10 Section 43. Limitations on Development. [Amended 11-7-1978 ; 11-2-2021 ] The City of Lake Oswego shall insure that all development within a Nature Preserve is consistent with the preservation of a Nature Preserve as a natural area available for public enjoyment. To facilitate public access and use, the City of Lake Oswego may build trails for hiking, jogging, horse-back and bicycle riding, may provide benches and interpretive displays, and may provide picnic and sanitary facilities within a Nature Preserve. To access and use particularly fragile habitats, boardwalks may be built; however, trails shall refrain from using hard surface materials, such as asphalt and concrete, in order to remain consistent with the natural conditions of a Nature Preserve. The City of Lake Oswego shall not construct or develop (or allow any person to construct or develop) any Athletic Facility, any Telecommunications Facility, or any parking lot, road, or trail for motorized vehicles within a Nature Preserve. The City of Lake Oswego shall not cut (or allow any person to cut) any tree in a Nature Preserve for the purpose of facilitating the construction or development of any Athletic Facility, any Telecommunications Facility, or any parking lot, road, or trail for motorized vehicles. The City of Lake Oswego shall not construct or develop (or allow any person to construct or develop) any facility or any structure above ground that would impair or be inconsistent with the natural conditions of a Nature Preserve. The City of Lake Oswego shall not cut (or allow any person to cut) any tree in a Nature Preserve for the purpose of commercial logging. The City of Lake Oswego shall be allowed to maintain (or allow any person to maintain) a Nature Preserve for the purposes of ecological restoration that provides a safe and healthy natural area that is accessible for public enjoyment, provides a healthy habitat for wildlife, eliminates invasive species, restores native species, and mitigates fire hazards. The City of Lake Oswego shall be allowed to maintain (or allow any person to maintain) any existing facility or existing structure, or any existing parking lot, road, or trail for motorized vehicles in a Nature Preserve constructed before November 2, 2021 that is above ground as long as that facility or structure, or parking lot, road, or trail for motorized vehicles is not altered in any manner that would further impair or be inconsistent with the natural conditions of a Nature Preserve. The City of Lake Oswego shall be allowed to implement (or allow any person to implement) a park master plan for a Nature Preserve that was adopted before November 2, 2021. ADD: +The City of Lake Oswego shall be allowed to permit Clackamas County to utilize up to 0.4 acres of Stevens Meadows Park for the limited purposes of constructing road improvements and driveway realignment+ ATTACHMENT 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-17, Referral of Psilocybin Facility Ban to Voters Meeting Date: July 16, 2024 Report Date: July 8, 2024 Staff Member: Martha Bennett, City Manager Ellen Osoinach, City Attorney Department: City Manager’s Office City Attorney’s Office Action Required Advisory Board/Commission Recommendation ☒Motion ☐Approval ☐Public Hearing ☐Denial ☐Ordinance ☐None Forwarded ☒Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction☐Consent Agenda Staff Recommendation: Adopt Resolution 24-17. Recommended Language for Motions: Move to adopt Resolution 24-17. Project / Issue Relates To: City Council enacted Ordinance 2903 in December 2022, temporarily prohibiting psilocybin facilities in the City until the general election of November 2024. In December 2023, Council enacted Ordinance 2928 imposing local time, place and manner restrictions on psilocybin facilities beyond those in state statute and administrative rule. Issue before Council (Highlight Policy Question): Shall the City Council refer Resolution 24-17 to the November 2024 ballot for voter approval? ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable 10.3 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY BACKGROUND In 2020, Oregon voters approved Measure 109 1, which legalized and regulated psilocybin in Oregon. The Oregon Health Authority (OHA) began accepting license applications on January 2, 2023, but cities could opt-out, requiring any ban to be voted on in the next general election. On December 6, 2022, the City Council adopted Ordinance 2903 (Attachment 2), temporarily banning psilocybin facilities and mandating a vote on the ban at the next statewide general election on November 5, 2024. The Council also asked the Planning Commission and staff to recommend additional local restrictions on psilocybin facilities—as allowed by ORS 475A.530— which would only apply if the voters decide to allow psilocybin facilities in Lake Oswego. On December 5, 2023, the Council adopted Ordinance 2928, adding local restrictions (Attachment 3). Proposed Resolution 24-17 (Attachment 1) refers to the November 5, 2024 election, a ballot measure proposing the prohibition of psilocybin facilities in Lake Oswego and certifies for filing the associated ballot title (i.e. Caption, Question, and Summary). DISCUSSION ELECTION DEADLINES The election filing deadlines for a city-referred measure to the November 5, 2024 election are as follows: •August 16th— last day a City may file a ballot title for publication of notice. •Electors have seven (7) business days to challenge a ballot title in circuit court. •August – Submit communications material to the Secretary of State for “Safe Harbor” review. •September 5th—last day a City may file a notice of measure election, which contains the ballot title and an explanatory statement. The notice may only be filed upon completion of the ballot title challenge process. •September 9th—last day to file arguments for inclusion in the county voters’ pamphlet. City staff may not file or assist in the filing of arguments in support or opposition. •September to November – public information distribution •November 5th – Election Day So long as the City adopts Resolution 24-17 in July, City staff will be able to meet these deadlines. SUMMARY OF LOCAL REGULATIONS In adopting Ordinance 2928, Council noted that the land use impacts of psilocybin facilities were not known due to Oregon being the first in the nation to legalize psilocybin, and OHA had 1 Now codified in ORS Chapter 475A. Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY only granted a few licenses2. Although the City’s local regulations are “on the books,” they will not apply to psilocybin facilities unless the voters decide at the November 2024 election to allow psilocybin facilities within the City. If the voters decide to allow psilocybin facilities, Council intends to review the adopted psilocybin time, place and manner (TPM) restrictions three years from the effective date of Ordinance 2928 in order to notify psilocybin licensees that local regulations are intended to be re-examined in three years with the purpose of assessing whether the regulations are effective in addressing impacts and to determine if more, or less local regulations are appropriate. Lake Oswego’s local regulations are intended to address the following issues/impacts: •Protection of children: State rules require a buffer from service centers to public and private schools, but do not afford the same protection to licensed childcare facilities. •Proximity and access of the use to marijuana retail: proximity of psilocybin facilities to marijuana retail could provide an easy opportunity for a person that will be or was administered psilocybin to conveniently obtain marijuana, which would further impair the individual. •Incompatibility with residential use: State rules prohibit psilocybin service centers in an area zoned exclusively residential and prohibits the interior and exterior areas of both service centers and manufacturing businesses from overlapping with a residence (OAR 333-333-4300), but does not address proximity of residences to these uses in mixed- used commercial/residential zones. Psilocybin Service Centers Psilocybin service centers are businesses licensed by OHA for the administration of psilocybin mushrooms and products to members of the public by licensed facilitators. The City Council adopted the following local regulations for service centers: •Prohibit the use in residential zones (R-zones) and as a home occupation; •Allow the use in all commercial and industrial zones in the City, except that a conditional use permit would be required for the use in the NC, WLG OC, and WLG RMU zones; •Require a 1,000-ft. buffer from registered childcare facilities3 (this is in addition to the 1,000-ft. buffer from public and private schools required by the statute) and; •Prohibit any psilocybin service center from being in the same building as marijuana businesses and residences. 2 The first license for a psilocybin service center was issued about May 5, 2023, and by July 2, 2023 OHA had only issued five licenses. OHA Press Release. As of July 8, 2024, OHA had issued about forty-three (43) licenses for psilocybin facilities. 3 The Oregon Dept. of Education licenses child care facilities and maintains a database. Not all child care facilities are required to be licensed; for instance, no license is required for the care of three or fewer children. Licensed Child Care | Early Learning Division, OR (oregonearlylearning.com). Page 4 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Psilocybin Production Psilocybin production is a business licensed by the OHA for the growing, production and testing of psilocybin mushrooms and products. The City Council adopted the following local regulations for service centers: • Allow the use only in the Industrial (I) and Industrial Park (IP) zones; • Prohibit the use in residential zones (R- zones) and as a home occupation; • Require a 1,000-ft. buffer from registered childcare facilities (this is in addition to the 1,000-ft. buffer from public and private schools required by the statute); • Prohibit any psilocybin facility from being in the same building as marijuana businesses and residences (to address mixed-use zones) and; • Require the use to be within a fully enclosed facility. FISCAL IMPACT None. RECOMMENDATION Staff recommends adoption of Resolution 24-17. ATTACHMENTS 1. Resolution 24-17 2. Ordinance 2903 (enacted December 2022) 3. Ordinance 2928 (enacted December 2023) BACKGROUND MATERIAL AND REFERENCES Staff reports, staff memos and other materials that were prepared for prior Planning Commission work sessions related to local psilocybin regulations can be viewed at the webpage for LU 23-0001. Use the link below to visit the City’s “Project” page. In the “Search” box enter LU 23-0001, then press “Submit”: https://www.ci.oswego.or.us/all-projects Resolution 24-17 Page 1 of 2 RESOLUTION 24-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO SUBMITING A MEASURE TO THE VOTERS AT THE NOVEMBER 5, 2024 GENERAL ELECTION PROHIBITING PSILOCYBIN FACILITIES WITHIN THE CITY. WHEREAS, Ballot Measure 109, known as the Oregon Psilocybin Services Act, which passed in November 2020, required the Oregon Health Authority (OHA) to begin accepting applications for licenses to manufacture, deliver and administer psilocybin on January 2, 2023; and WHEREAS, Ballot Measure 109 also allows local governments to prohibit psilocybin service centers and the manufacture of psilocybin products (collectively “psilocybin facilities”) by referring an ordinance to the voters at a statewide general election; and WHEREAS, the City Council of the City of Lake Oswego adopted Ordinance No. 2903 which prohibits psilocybin facilities in the area subject to the jurisdiction of the City and refers the matter to the electors of the City; and WHEREAS, Ballot Measure 109 also allows local governments to adopt reasonable time, place, and manner restrictions for psilocybin facilities in addition to those found in state statutes (ORS. Ch. 475A) and administrative rules (Oregon Health Authority, OAR Div 333-333)—regardless of whether the local government also adopted an Ordinance prohibiting such facilities in the areas subject to the jurisdiction of the City; and WHEREAS, on December 5, 2023 the City Council of the City of Lake Oswego adopted Ordinance No. 2928 imposing local time, place, and manner restriction on psilocybin facilities; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Council refers to the November 5, 2024 election a ballot measure proposing the prohibition of psilocybin-facilities in Lake Oswego. Section 2. The Clackamas, Multnomah and Washington County Elections Offices will conduct the election. The precincts for said election shall be and constitute all of the territory included within the corporate limits of the City of Lake Oswego. Section 3. The ballot title certified and filed by the City Council shall be as follows: Caption: Prohibits psilocybin businesses within the City of Lake Oswego. Question: Shall the City of Lake Oswego prohibit psilocybin service centers and the manufacture of psilocybin products within the City? Summary: State law authorizes the manufacturing, transportation, delivery, sale, and purchase of psilocybin, the psychedelic drug found in certain mushrooms, in Oregon. A city may “opt- out” by adopting an ordinance prohibiting the establishment of licensed psilocybin product ATTACHMENT 1 Resolution 24-17 Page 2 of 2 manufacturers and/or psilocybin service centers within their boundaries. A city that “opts-in” may also adopt local time, place, and manner restrictions on psilocybin product manufacturers and/or psilocybin service centers that are in addition to those already imposed by state law. The City adopted an ordinance prohibiting the establishment of psilocybin product manufacturers and psilocybin service center operators (collectively, “psilocybin facilities”) within the City. State law requires that this ordinance must be approved by the voters before it may take effect. The City Council also adopted an ordinance imposing local time, place, and manner restrictions on psilocybin facilities in addition to those already imposed by state law. Approval of this measure would prohibit psilocybin facilities within the City. Rejection of the measure would allow psilocybin facilities within the City subject to state and local restrictions. Section 4. The City Manager, City Attorney, and City Recorder shall take all steps on behalf of the City as necessary to carry out the intent and purposes of this resolution in compliance with state and local law including but not limited to publishing the ballot title as provided by state law, publishing notice of the measure as required, submitting an explanatory statement, and filing this measure with the appropriate County Elections Divisions. Section 5. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 17th day of July, 2024. AYES: NOES: EXCUSED: ABSTAIN: ___________________________________ Joseph M. Buck, Mayor ATTEST: ___________________________________ Kari Linder, City Recorder APPROVED AS TO FORM: ________________________________ Ellen Osoinach, City Attorney Effective Date: January 5, 2023ATTACHMENT 2 Ordinance 2928 PAGE 1 OF 3 ORDINANCE 2928 AN ORDINANCE OF THE CITY OF LAKE OSWEGO AMENDING LOC 50.03.002, 50.03.003, 50.03.004, and 50.10.003 OF CHAPTER 50 (COMMUNITY DEVELOPMENT CODE) ESTABLISHING PSILOCYBIN TIME, PLACE AND MANNER LAND USE REGULATIONS; AND ADOPTING FINDINGS (LU 23-0001). WHEREAS, Measure 109 legalized and regulates the manufacture, sale, and administration of Psilocybin in Oregon, and authorizes cities to impose certain types of “reasonable regulations” beyond those imposed by state law; and WHEREAS, the City Council enacted Ordinance 2903 temporarily prohibiting Psilocybin facilities and the temporary ban must be referred to the City’s voters at the next statewide general election (November 5, 2024) unless the City Council adopts an ordinance repealing the prohibition before the election; and WHEREAS, the City Council has directed the Planning Commission to recommend reasonable Psilocybin “Time, Place and Manner” regulations in Lake Oswego; and WHEREAS, the proposed Psilocybin Time, Place, and Manner regulations are in addition to those already imposed by state law (2020 Measure 109, now codified in ORS 475A.200 - .586) and rules (OAR Division 333-333), and are necessary to protect public health, safety, and welfare; and WHEREAS, notice of the public hearing for consideration of this Ordinance was duly given in the manner required by law; and WHEREAS, a public hearing before the Planning Commission was held on June 12, 2023, at which the staff report, testimony, and evidence were received and considered; and WHEREAS, the Planning Commission has recommended to the Council the adoption of certain time, manner and place land use restrictions as set forth in its Findings, Conclusions and Order for LU 23-0001; and WHEREAS, a public hearing on LU 23-0001 was held before the City Council of the City of Lake Oswego on July 18, 2023, at which the staff report, testimony, and evidence were received and considered; and WHEREAS, •The manufacture of psilocybin and the administration of psilocybin to the public through service centers is a new use in Oregon, having been authorized by initiative measure in 2020; and •To date, the only other state that has authorized the administration of psilocybin to the public is Colorado; however, Colorado has not yet issued any licenses for the manufacture of psilocybin or for administration of psilocybin in mental healthcare and EFFECTIVE DATE: January 4, 2024ATTACHMENT 3 Ordinance 2928 PAGE 2 OF 3 therapeutic settings; and • The Oregon Health Authority issued a license for the first service center on May 5, 2023; and • The impacts of psilocybin manufacturers and service centers cannot yet be fully quantified or analyzed, as to whether more -- or less -- time, place and manner restrictions would be appropriate for their compatibility to surrounding businesses and nearby residences; and • Some cities and counties in Oregon are not imposing any time, place and manner restrictions above those promulgated by the Oregon Health Authority, while other cities and counties are imposing some additional restrictions, but to-date only a few licenses have been issued at this time; and • Therefore, the Council finds it is appropriate to state an intention to review these time, place and manner restrictions three years from the effective date of this ordinance, provided however, this statement of intent does not preclude the Council from reviewing these restrictions sooner – or later -- than three years. The City of Lake Oswego ordains as follows: Section 1. The City Council hereby adopts the Findings and Conclusions (LU 23-0001), attached as Attachment A. Section 2. The Lake Oswego Code is hereby amended by adding the new text shown in double underlined type and deleting text shown in strikethrough type in Attachment B, dated December 5, 2023. Section 3. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. Enacted at the meeting of the Lake Oswego City Council of the City of Lake Oswego held on the 5th day of December, 2023. AYES: Mayor Buck, Mboup, Verdick, Rapf, Afghan, Corrigan, Wendland NOES: None ABSENT: None ABSTAIN: None EXCUSED: None 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ATTACHMENT A/PAGE 1 – FINDINGS AND CONCLUSIONS (LU 23-0001) BEFORE THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO A REQUEST FOR LEGISLATIVE TEXT AMENDMENTS TO THE COMMUNITY DEVELOPMENT CODE FOR REGULATING PSILOCYBIN FACILITIES. LU 23-0001 CITY OF LAKE OSWEGO FINDINGS AND CONCLUSIONS NATURE OF PROCEEDINGS This matter came before the Lake Oswego City Council on the recommendation of the Planning Commission for legislative amendments to the Community Development Code (CDC) (LOC 50.03.002, 50.03.003, 50.03.004, and 50.10.003) for the purpose of establishing psilocybin time, place and manner land use regulations. HEARINGS The Planning Commission (“Commission”) held a public hearing and considered this application at its meeting on June 12, 2023. The Commission adopted its Findings, Conclusion and Order recommending approval of LU 23-0001 on June 26, 2023. The City Council held a public hearing and considered the Commission’s recommendation on July 18, 2023. CRITERIA AND STANDARDS A.City of Lake Oswego Comprehensive Plan Land Use Planning Policies A-1, B-2, C-1 Inspiring Spaces and Places Goal 1 - Policy 1.b Economic Vitality Policy B-1 Community Health and Public Safety Public Safety, Police and Fire Protection Section, Policies 1-4 ATTACHMENT A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ATTACHMENT A/PAGE 2 – FINDINGS AND CONCLUSIONS (LU 23-0001) B. City of Lake Oswego Community Development Code LOC 50.07.003.16 Legislative Decisions (includes Required Notice to DLCD; Planning Commission Recommendation Required; and City Council Review and Decision) C. Metro Urban Growth Management Functional Plan Title 4: Protection of Employment Areas, Metro Code Section 3.07.440 FINDINGS AND REASONS The City Council incorporates the Commission Staff Report dated May 17, 2023 (Exhibit D-4) for LU 23-0001, with all exhibits, the Findings, Conclusions and Order approved on June 26, 2023 (Exhibit B-1), and the staff Council Report dated July 7, 2023, as support for the Council’s decision, supplemented by the following further findings and conclusions, except as to those proposed sections that the Council has declined to adopt, which findings are set forth below. In the event of any inconsistency between the Council’s supplemental findings and conclusion and the incorporated materials, the supplemental findings and conclusions control. Following are the supplemental findings and conclusions of this Council. The Council finds that, as proposed, the collective regulations in the Commission’s proposed time, place and manner restrictions recommended in LU 23-0001 for Ordinance 2928 would effectively prohibit or severely limit the locations where psilocybin facilities could be sited. For these reasons, the Council finds that the Commission’s recommendations for Ordinance 2928 should be revised as follows (the “removed provisions”): • Do not require a buffer between psilocybin facilities or from tenant spaces occupied by businesses with a liquor license; and • Do not prohibit psilocybin facilities from locating in the same building as health care facilities as defined by ORS 442.015(12)(a). The Council finds that the revisions to the Commission’s recommendation continue to comply with all applicable Comprehensive Plan policies because the purpose of the applicable policies is to provide for compatible uses. The Council finds: • Psilocybin manufacturing and service center uses are new for all jurisdictions in 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ATTACHMENT A/PAGE 3 – FINDINGS AND CONCLUSIONS (LU 23-0001) Oregon and the potential impacts are unknown at this time; • The Measure 109 provisions (now codified as ORS 475A.200 - .586) and Oregon Health Authority rules (OAR Division 333-333) regulate the broad spectrum of the manufacturing and administration of psilocybin, and have time, place and manner restrictions to be applied statewide; • The Oregon Health Authority has issued few licenses for psilocybin facilities since it was eligible to do so beginning on January 1, 2023; and • The Commission forecasted the theoretical impacts of the use as best they could based on the information and testimony presented to them, and the Commission’s recommendations regarding the removed provisions were necessarily based on conjecture rather than evidence of incompatibility. The Council finds that it can always reconsider -- either before the November 2024 election or later -- if evidence from other Oregon jurisdictions show that there is, in fact, a basis to find incompatibility to warrant adoption of the removed provisions from the Commission’s recommendations. Until some evidence of incompatibility is presented, recognizing the Council can impose restrictions later if such evidence shows incompatibility, the Council finds that the proposed Ordinance 2928, excluding the removed provisions, would reasonably allow potential psilocybin providers to plan for operation (if the voters repeal the ban). Given the barriers to opening a business already (cost and other restrictions), the extensive requirements of ORS 475A.200 - .586 and the Oregon Health Authority rules (OAR Division 333-333), and the remaining recommended provisions of Ordinance 2928 (pending evidence from other jurisdictions), the potential for land use incompatibility is low. The Council finds that the removed provisions – and any other potential restrictions – should be considered at a later date when evidence from other jurisdictions is received, so that any additional restrictions are based on evidence of actual impacts and can be tailored to address these impacts, rather than based on speculation of impacts. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ATTACHMENT A/PAGE 4 – FINDINGS AND CONCLUSIONS (LU 23-0001) Based upon the above findings, the Council further finds that the existing temporary ban on psilocybin facilities (Ordinance 2903) should remain in effect until Ordinance 2928, as revised above, is referred to a citywide vote at the next general election on November 5, 2024, as required by Measure 109/ORS Ch. 475A.718(2). CONCLUSION The Council concludes that the proposed revised Ordinance 2928, with Attachment B, dated December 5, 2023, complies with all applicable criteria and should be enacted. 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 1 OF 5 Psilocybin Time, Place, and Manner - Proposed Community Development Code Amendments // 50.03.002 USE TABLE // 3. COMMERCIAL, MIXED USE, INDUSTRIAL, AND SPECIAL PURPOSE DISTRICTS USE TABLE TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE P = Permitted Use | Blank = Not Permitted | C = Conditional Use | A = Accessory Use [x] Table notes located at the end of the table Use Category Use Type Commercial, Mixed Use, Industrial Special Purpose Use-Specific Standards NC [8] , [9 ] GC HC [9] OC [8] EC [8] CR&D MC WLG [4] FMU [4], [7] I IP [5] CI PF [3] PNA OC RMU R-2.5 // COMMERCIAL USES [6] 50.03.003.6 // Business or Professional Services // // // // // // // // // // // // / // // // // // Psilocybin Service Center C P P P P P P C C P P P 50.03.003.6.t Commercial Services // // // // // // // // // // // // / // // // // // Repair, rental, and service P P P P P P P P P P 50.03.003.6.tu Retail Sales Retail < 10,000 sq. ft. gross floor area P P P P P P P P P C [5 ] 50.03.003.6.v w Retail ≥ 10,000 and < 20,000 sq. ft. gross floor area P P P P P P C [5 ] 50.03.003.6.w x ATTACHMENT B Ordinance 2928 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 2 OF 5 TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE P = Permitted Use | Blank = Not Permitted | C = Conditional Use | A = Accessory Use [x] Table notes located at the end of the table Use Category Use Type Commercial, Mixed Use, Industrial Special Purpose Use-Specific Standards NC [8] , [9 ] GC HC [9] OC [8] EC [8] CR&D MC WLG [4] FMU [4], [7] I IP [5] CI PF [3] PNA OC RMU R-2.5 Retail ≥ 20,000 sq. ft. gross floor area P/ C P P P [5] 50.03.003.6.xy INDUSTRIAL/MANUFACTURI NG USES 50.03.003.7 Manufacturi ng // // // // // // // // // // // // / // // // // // Psilocybin Production P P 50.03.003.7.c 50.03.003 USE-SPECIFIC STANDARDS // 6.USE-SPECIFIC STANDARDS FOR COMMERCIAL USES // t.Psilocybin Service Center i.Compliance with Oregon Health Authority (OHA) Rules. Service Centers shall be licensed by the OHA and comply with all applicable regulations and requirements administered by OHA per OAR 333-333 and ORS 475A.310. ii.Restrictions on Location. A Psilocybin Service Center shall not locate: (1)Within 1,000 ft., as measured by a straight-line measurement in a radius extending in any direction from the closest point anywhere on the boundary line of the real property comprising a school or registered childcare facility to the closest point of the licensed premises of a service center, of: (a)A public elementary or secondary school for which attendance is compulsory under ORS 339.020; 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 3 OF 5 (b)A private or parochial elementary or secondary school teaching children as described in ORS 339.030; and (c)A childcare facility registered with the Oregon Department of Education. EXCEPTION: The 1,000-ft. buffer required by subsection (1)(a)-(c), above, may be reduced to 500 ft. if there is a physical or geographic barrier capable of preventing children from traversing to the premises of the psilocybin service center, such as a body of water, an interstate freeway, or similar barrier that people cannot walk across. A door, fence, wall, or gate is not a physical or geographic barrier for the purpose of this standard. (2)Within the same building that contains any of the following uses: Marijuana production, processing, wholesale, laboratory/testing, or retail; or a residential unit. EXCEPTION: A psilocybin facility that met the location requirements, above, at the time of the issuance to the Oregon Health Authority of a land use compatibility statement may legally remain at that location if it existed before any of the uses listed in subsections (1)-(2), above, later located within a required buffer from the facility or within the same building. iii.In the HC, MC, CR&D, CI and IP zones, the cumulative square footage of commercial retail businesses, including psilocybin service centers, or buildings on a site shall not exceed 60,000 sq. ft. gross floor area on a single lot or parcel or on adjacent lots or parcels. ut. Repair, Rental, Service *** vu. Restaurant *** wv. Retail, Under 10,000 Sq. Ft. Gross Floor Area *** xw. Retail, 10,000 – 20,000 Sq. Ft. Gross Floor Area *** yx. Retail, Over 20,000 Sq. Ft. Gross Floor Area *** zy. Social, Recreational, or Cultural Facilities, Non-profit 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 4 OF 5 *** aaz. Veterinary Clinic *** 7.INDUSTRIAL USES // c.Psilocybin Production i.Compliance with Oregon Health Authority (OHA) Rules. Psilocybin Production facilities shall be licensed by the OHA and comply with all applicable regulations and requirements administered by OHA per OAR 333-333 and ORS 475A.310. ii.Restrictions on Location. A Psilocybin Production Facility shall not locate: (1)Within 1,000 ft., as measured by a straight-line measurement in a radius extending in any direction from the closest point anywhere on the boundary line of the real property comprising a school or registered childcare facility to the closest point of the licensed premises of a service center, of: (a)a public elementary or secondary school for which attendance is compulsory under ORS 339.020; (b)A private or parochial elementary or secondary school teaching children as described in ORS 339.030; (c)A childcare facility registered with the Oregon Department of Education; and EXCEPTION: The 1,000-ft. buffer required by (1)(a)-(c), above, may be reduced to 500 ft. if there is a physical or geographic barrier capable of preventing children from traversing to the premises of the psilocybin production facility, such as a body of water, an interstate freeway, or similar barrier that people cannot walk across. A door, fence, wall, or gate is not a physical or geographic barrier for the purpose of this standard. (2)Within the same building that contains any of the following uses: Marijuana production, processing, wholesale, laboratory/testing, or retail; or a residential unit. EXCEPTION: A psilocybin production facility that met the location requirements, above, at the time of the issuance to the Oregon Health Authority of a land use compatibility statement may legally remain at that location if it existed before any of the uses listed in subsection (1)-(2), above, later located within a required buffer or within the same building. 12/05/2023 LU 23-0001 ATTACHMENT B (ORDINANCE 2928)/PAGE 5 OF 5 iii.All manufacturing, growing and testing shall be conducted within a fully enclosed building. 50.03.004 ACCESSORY STRUCTURES AND USES 1.ACCESSORY USES // b.Home Occupations A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied with: // (6)Marijuana facilities, psilocybin service centers, and psilocybin production are prohibited. // 50.10.003 DEFINITIONS // Psilocybin Production A location licensed by the Oregon Health Authority for the growing, production and testing of psilocybin mushrooms and products. Psilocybin Service Center A location licensed by the Oregon Health Authority for the administration of psilocybin mushrooms and products to members of the public by licensed facilitators. -End of code amendments -