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Agenda Packet - 2024-10-01 503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY AGENDA CITY COUNCIL MEETING Tuesday, October 1, 2024 5:30 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 Proclamation – Meals on Wheels Month. 4.2 Proclamation – Indigenous People’s Day: October 14. 4.3 Proclamation – Hispanic Heritage Month: September 15 – October 15. 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. Page 2 503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 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. 6.1 Resolution 24-41, A Resolution of the City Council of the City of Lake Oswego Adjusting the Budget for the Biennium Commencing July 1, 2023 by Adopting a Supplemental Budget, Approving Resources/Requirements, and Making Appropriations. Motion: Move to adopt Resolution 24-41. 6.2 Ordinance 2950, An Ordinance Annexing to the City of Lake Oswego One Parcel, Consisting of 0.24 Acres at 5077 Dawn Street; Declaring City of Lake Oswego Zoning of R-10 Pursuant to LOC 50.01.004.5(a-c); and Removing the Territory from Certain Districts (AN 24-0003). Motion: Move to enact Ordinance 2950. 6.3 Resolution 24-42, A Resolution of the City Council of the City of Lake Oswego Granting Portland General Electric a Franchise to Operate an Electric Light and Power System in the City of Lake Oswego, Oregon. Motion: Move to adopt Resolution 24-42. 7. ITEMS REMOVED FROM CONSENT AGENDA 8. CONSENT AGENDA – Councilors Only [Note: Only Councilors vote to concur in Mayor’s appointments of Committee members, per Charter, Section 19] 8.1 Resolution 24-39, A Resolution of the City Council of the City of Lake Oswego Approving Appointments to the South Shore Fire Station Task Force. Motion: Move to adopt Resolution 24-39. Page 3 503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 9. PUBLIC HEARING 9.1 Ordinance 2940, An Ordinance of the City Council of the City of Lake Oswego Establishing a Privilege Tax on Electric Utilities. Public Hearing Process: 1. Review of hearing procedure by Ellen Osoinach, City Attorney 2. Staff Report by Erica Rooney, City Engineer | Public Works Director 3. Testimony – the following time limits shall be observed, but may be changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; 5 minutes per individual 4. Questions of Staff Motion: Move to enact Ordinance 2940. 10. STUDY SESSION 10.1 Code Amendments to Comply with FEMA National Flood Insurance Program (NFIP) Endangered Species Act (ESA) Integration in Oregon. Motion: Move to direct staff to notify FEMA that Lake Oswego is proceeding with NFIP Pre-Implementation Measure Option 1 and; draft proposed code amendments consistent with the FEMA model Ordinance. 11. INFORMATION FROM COUNCIL 12. REPORTS OF OFFICERS 13. ADJOURNMENT Proclamation Meals on Wheels Month WHEREAS, there is a need to assure that no senior goes hungry or suffers from social isolation in Lake Oswego; and WHEREAS, the need for home delivered meals will only increase as nearly 44% of Lake Oswego residents are 50 and older; and WHEREAS, 95% of seniors want to remain independent and in their own homes as they age; and WHEREAS, Meals on Wheels allows seniors to stay in their home at least two years longer; and WHEREAS, the program was started in Lake Oswego in 1972 by seven people; and WHEREAS, the City of Lake Oswego memorialized its commitment to Meals on Wheels in 2004 by partnering with the nonprofit board Lake Oswego Meals on Wheels; and WHEREAS, the program engages 155 Lake Oswego volunteers in meaningful service to others; and WHEREAS, there are more than 18,000 made from scratch, nutritionally balanced meals served annually to senior and disabled Lake Oswegans each year; and NOW, THEREFORE, I, Joseph M. Buck, Mayor of the City of Lake Oswego, do hereby proclaim the month of October as Meals on Wheels Month in Lake Oswego. I urge all residents in our community to celebrate older adults and the Lake Oswego Meals on Wheels program that supports healthy aging in Lake Oswego. __________________________ Joseph M. Buck, Mayor October 1, 2024 4.1 Proclamation Indigenous People’s Day WHEREAS the area known as the City of Lake Oswego is located on ancestral and contemporary lands that have been called home by the Clackamas, Chinook, Clowewalla, Tualatin, Molalla, Multnomah, Siletz and Kalapuya people since time immemorial; and WHEREAS the City of Lake Oswego is situated on the west bank of the Wilmut (Willamette in Chinuk Wawa) River, which served as a source of sustenance and means of transportation, commerce and life for local tribes on the waterfront; and WHEREAS and the centuries of colonization, exploitation, oppression and systemic racism that indigenous peoples have endured at the hands of institutions and state and federal governments, including the Oregon Donation Land Act of 1850 and the Willamette Valley Treaty of 1855, in and outside of the City of Lake Oswego; and WHEREAS the City of Lake Oswego recognizes the immense historical, cultural, ecological and contemporary significance of the indigenous peoples to our community; and WHEREAS Indigenous Peoples’ Day provides an occasion to engage in dialogue about the ongoing challenges faced by Indigenous communities and to reaffirm our commitment to ensuring indigenous people have access to the opportunities and quality of life of our community; and WHEREAS the City of Lake Oswego recognizes that Indigenous Peoples’ Day can serve as a meaningful opportunity for our residents to learn about and honor the sovereignty, resilience and invaluable contributions made by indigenous peoples, NOW, THEREFORE, BE IT RESOLVED, that we, the Lake Oswego City Council, proclaim October 14, 2024 as Indigenous Peoples’ Day in the City of Lake Oswego and urge all residents to join in celebrating and recognizing the cultures, contributions, and resilience of Indigenous peoples and take the opportunity to learn about the history and ongoing struggles of Indigenous communities. Let us use this day to reflect on our shared responsibility to acknowledge the past, celebrate the present and work together towards a more inclusive, respectful, and equitable future for all residents of the City of Lake Oswego. __________________________ Joseph M. Buck, Mayor October 1, 2024 4.2 Proclamation Hispanic Heritage Month WHEREAS, the rich and evolving history of Lake Oswego is deeply intertwined with the contributions of Hispanic and Latino community members, including many immigrants from Mexico and Latin America. Hispanic residents, business owners, educators, City employees, first responders, civic leaders and others have enriched our city in countless ways, sharing their diverse talents, vibrant cultures, and unique perspectives, which have helped shape the community we know today; and WHEREAS, this year’s Hispanic Heritage Month theme, “Pioneers of Change: Shaping the Future Together,” spotlights the dynamic role Hispanic and Latino individuals have played, and continue to play, in driving prosperity, innovation, and progress within both the nation and our local community. From bolstering our economy to leading social and political movements, their efforts and leadership have strengthened not only the cultural fabric of Lake Oswego but also the very spirit of collaboration and unity we seek to embody as a city. Their forward-thinking mindset have positioned them as true pioneers of change, guiding us toward a more inclusive and promising future; and WHEREAS, we honor the shifting demographics in Oregon and celebrate the Hispanic and Latino population, which represents the third-largest racial group in our city. As we recognize this, let us continue to work towards empowering our Hispanic community members to assume leadership roles in government, business, and civic life, ensuring their voices and contributions are amplified. NOW, THEREFORE, BE IT RESOLVED, that we, the Lake Oswego City Council, declare September 15, 2024 – October 15, 2024, as Hispanic Heritage Month. We invite all community members to celebrate by participating in programs and activities honoring the contributions of Hispanic and Latino individuals, both past and present. May we continue to uplift and support the voices of our Hispanic neighbors in Lake Oswego, fostering a more inclusive and empowered community for all. __________________________ Joseph M. Buck, Mayor October 1, 2024 4.3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-41, Modifying the 2023-25 Biennial Budget through a Supplemental Budget Meeting Date: October 1, 2024 Report Date: September 12, 2024 Staff Member: Shawn Cross, Finance Director Department: Finance Action Required Advisory Board/Commission Recommendation ☐Motion ☐Approval ☐Public Hearing ☐Denial☐Ordinance ☐None Forwarded ☒Resolution ☒Not Applicable☐Information Only Comments: ☐Council Direction ☒Consent Agenda Staff Recommendation: Adopt Resolution 24-41, modifying the 2023-25 biennial budget through a supplemental budget. Recommended Language for Motion: Move to adopt Resolution 24-41. Project / Issue Relates To: 2023-25 Biennial Budget Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable BACKGROUND Throughout a budget year, new information may give reason to make adjustments to the adopted budget. Local Budget Law allows these adjustments under certain conditions and with certain requirements. This request is brought forward as a supplemental budget and does not require a public hearing, due to all the adjustments are less than ten percent of the already authorized expenditures. 6.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY DISCUSSION This budget amendment is requested after a staff review of the comparison of actual biennium- to-date revenues and expenditures with the current budget. Budgets were also evaluated to ensure there was sufficient appropriation for transactions that will occur before the end of the biennium (Bn). Explanations for all of the adjustments contained in this supplemental budget are included below. • The City is the recipient of two new grants that need to be appropriated in the biennial budget. One is from the State to pay for infrastructure improvements related to the Habitat for Humanity project over in Lake Grove for just over $1.7 million. The other is from the County fund a grant to Hunger Fighters of $125,000 and for a behavioral health case manager position in Police of $155,000. This $280,000 from the County is the annual amount the City will be getting over the next three years. • Expenditures related to the Lake Lawsuit are coming in higher than what was budgeted. We had originally budgeted $250,000 for the biennium. Actual costs are just under $400,000. This budget adjustment moves an additional $250,000 from contingency and moves it to risk management in the general administration section. • The Willamette Shoreline Consortium met and authorized a few needed repairs to the trolley barn. Most of the work can be funded through saving from first fiscal year. This adjustment moves funding from contingency for the additional costs beyond the savings. FISCAL IMPACT The fiscal impact is described in detail on the resolution itself. RECOMMENDATION Adopt Resolution 24-41. ATTACHMENTS 1. Resolution 24-41 DRAFT RESOLUTION 24-41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO ADJUSTING THE BUDGET FOR THE BIENNIUM COMMENCING JULY 1, 2023 BY ADOPTING A SUPPLEMENTAL BUDGET, APPROVING RESOURCES/REQUIREMENTS, AND MAKING APPROPRIATIONS. WHEREAS, Certain conditions and situations have arisen since the initial preparation of the 2023-25 budget and necessitate changes in financial planning, now, therefore, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Council hereby adjusts the budget for biennium 2023-25 in the amount of $2,034,000. Section 2. The City Council hereby authorizes: A) The appropriation of resources and approval of requirements listed below; B) The transfers of funds and transfers of fund appropriations as listed herein; General Fund Adopted Revised Difference Resources: Intergovernmental 12,116,000$ 14,150,000$ 2,034,000$ Requirements: General Administration 26,659,914$ 26,909,914$ 250,000$ Police 36,856,594 37,011,594 155,000 Nondepartmental Materials and Services 1,375,000 3,254,000 1,879,000 Contingency 10,036,000 9,786,000 (250,000) 2,034,000$ Explanation of Major Changes: For additoinal legal fees related to the lake lawsuit and award of new state and county grants. Trolley Fund Adopted Revised Difference Requirements: Trolley 271,000$ 298,000$ 27,000$ Contingency 441,602 414,602 (27,000) -$ Explanation of Major Changes: For additional repairs and maintenance approved by the Willamette Shore Consortium. Considered and enacted at a regular meeting of the City Council held on the 1st day of October, 2024. AYES: NOES: Resolution 24-41 Page 1 of 2 ATTACHMENT 1 DRAFTABSTAIN: ABSENT: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Ellen Osoinach, City Attorney Resolution 24-41 Page 2 of 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Ordinance 2950, Annexing property at 5077 Dawn Street (AN 24-0003) Meeting Date: October 1, 2024 Report Date: September 11, 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 under an expedited review provided under Metro Code 3.09.045. ☐Council Direction ☒Consent Agenda Staff Recommendation: Enact Ordinance 2950. Recommended Language for Motion: Move to enact Ordinance 2950. 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 0.24 acres of residential land to the City. This annexation is being processed as an expedited review provided under Metro Code 3.09.045 because 100% consent of all owners has been obtained and no right-of-way is included in the territory to be annexed. 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 2950). Applicant/Property Owner: Xiuhong Xu Location/Size: The subject property consists of 0.24 acres (10,454 square feet) and is located on the north side of Dawn Street, 1000 feet east of the intersection of Dawn Street and Pilkington Road. 6.2 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Existing Land Use: Tax Lot 900 is occupied by a single-family dwelling and takes access from Dawn Street. Neighborhood: The property is located within the Rosewood Neighborhood. Purpose of Annexation: The property owner initiated the annexation to connect to city sanitary services. Plan and Zone Designation: The subject property is currently under Clackamas County’s jurisdiction and zoned Low Density Residential (R-10). It is designated R-10, Low Density Residential on the City of Lake Oswego Comprehensive Plan Map and will be zoned R-10 upon annexation. Development Potential: This is a 0.24-acre parcel. Based on the size and shape of the parcel, the property could not be further divided. Sensitive Lands: There are no Sensitive Lands designated on the property. 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. Vicinity Map Proposed Annexation Ar r o w o o d A v e . Dawn Street Dawn Street Re d w i n g W a y Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Staff has provided findings (Exhibit A-1, Attachment B) that the proposed annexation and designation of City R-10 zoning are consistent with the Comprehensive Plan and Map, and will help to meet the City’s housing needs as identified by the Housing Needs Analysis (HNA). The proposal would provide the opportunity for needed housing as identified in the HNA, 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 an eight-inch sewer main terminating at a manhole in Dawn Street approximately 20 feet west of the property’s western property line. This sewer main can provide public sanitary sewer service to the existing dwelling and any future development of the property. Future sewer connection to this property would require a public sewer main extension in Dawn Street terminating at the eastern property line of 5077 Dawn Street. Note: The Engineering Staff has preliminarily commented by memo on the development standards that would apply for the sewer connection. Water is available from a six-inch Rivergrove Water District line in Dawn Street and will remain in the District’s service area after annexation. 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 new development does not have an adverse effect on adjoining properties and does not overburden the City stormwater system. Service Districts: Upon annexation and by operation of ORS 222.520, the property will be withdrawn from the Lake Grove Fire District #57, the Surface Water Management Agency of Clackamas County, and the Clackamas County Enhanced Sheriff’s Patrol D istrict, but will remain in the Lake Grove Park Area, the Library District of Clackamas County and the Rivergrove Water District. Transportation: The City’s Transportation System Plan (TSP) implements the multi-modal transportation system that will meet the needs of the city for a 20-year planning horizon. Dawn Street is identified as a local street in the City’s Transportation System Plan, and although the portion of this roadway along the frontage of this property has been annexed to the city, the road maintenance jurisdiction will not be transferred to the City until it is appropriate to complete a road transfer process with the County in the future. Tri-Met Line 36 provides service on Pilkington Road to the transfer station in the City of Tualatin. 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 $294,935. The estimated tax revenue after the lot is annexed is $763. Page 4 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY RECOMMENDATION Approve AN 24-0003 (Ordinance 2950). EXHIBITS A. Draft Ordinance A-1 Ordinance 2950 (Draft 09/11/24) Attachment A: Map of Proposed Annexation, 08/12/24 Attachment B: Criteria, Findings, Conclusion, and Effective Date, 09/11/24 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) LINK TO PUBLIC RECORDS FOLDER FOR THIS CASE https://www.ci.oswego.or.us/WebLink/Browse.aspx?id=2768462&repo=CityOfLakeOswego Ordinance 2950, AN 24-0003 (21E19AB00900) EXHIBIT A-1/PAGE 1 OF 3 ORDINANCE 2950 AN ORDINANCE ANNEXING TO THE CITY OF LAKE OSWEGO ONE PARCEL, CONSISTING OF 0.24 ACRES AT 5077 DAWN STREET; DECLARING CITY OF LAKE OSWEGO ZONING OF R-10 PURSUANT TO LOC 50.01.004.5(a-c); AND REMOVING THE TERRITORY FROM CERTAIN DISTRICTS (AN 24-0003). 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, the part of the territory that lies within the Surface Water Management Agency of Clackamas County and the district has no bonded debt, the city elects ORS 222.520(2)(b) and the territory shall be withdrawn from that agency immediately 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 3.09.040(A) (1-4) and 3.09.045. EXHIBIT A-1 Ordinance 2950, AN 24-0003 (21E19AB00900) EXHIBIT A-1/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 northeast quarter of Section 19, Township 2 South, Range 1 East of the Willamette Meridian, City of Lake Oswego, Clackamas County, Oregon; said tract of land being all that property conveyed Xiuhong Xu, by Statutory Warranty Deed recorded June 6, 2024 in the Official Records of Clackamas County, as Recording No. 2024-019807; said tract of land more particularly described as follows: Lot 11, Block 3, Indian Creek (Plat No. 1171), Clackamas County plat records. 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 Rivergrove Water District Library District of Clackamas County 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 Surface Water Management Agency of Clackamas County Section 5. In accordance with LOC 50.01.004.5, the City zoning designation of R-10 shall be applied to the subject property on the effective date of annexation, as shown on Attachment A. 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 Ordinance 2950, AN 24-0003 (21E19AB00900) EXHIBIT A-1/PAGE 3 OF 3 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 1st day of October, 2024. AYES: NOES: ABSTAIN: EXCUSED: ________________________________ Joseph M. Buck, Mayor ________________________________ Dated ATTEST: ______________________________________ Kari Linder, City Recorder APPROVED AS TO FORM: ____________________________________ Ellen Osoinach, City Attorney 52 8 8 52 5 6 51 8 2 51 4 4 49 8 0 49 9 0 50 2 8 50 3 2 50 3 0 49 0 2 49 1 0 49 2 4 49 4 8 52 8 0 52 1 5 50 7 7 50 0 1 49 0 1 51 7 0 19201 19241 19210 19240 19251 19250 19251 19241 19201 19181 19111 19110 19180 19200 19240 19250 53 7 5 52 3 7 53 6 1 52 2 3 52 1 5 52 2 5 52 1 9 52 9 0 53 0 0 52 5 0 52 2 6 18951 18975 18954 18978 19026 18973 18949 19061 19101 19060 19100 19200 52 2 1 51 0 1 50 7 7 50 5 5 49 9 3 49 0 1 48 4 1 48 9 0 49 9 6 51 4 6 51 5 0 51 5 6 51 9 0 51 8 0 49 0 0 48 4 9 48 8 1 49 0 3 49 1 0 48 4 6 1883618833 18887 1892718926 18892 18866 18834 18929 18895 18867 18831 18814 5318 52 9 0 5 2 8 4 5 2 7 0 52 8 9 53 1 7 52 9 2 52 5 5 19203 19245 19263 19285 19288 19266 19240 19200 19305 19313 19321 19318 19310 19302 5184 5172 5185 5173 5167 5011 5023 5035 5004 5016 5028 52 9 0 Dawn St Childs Rd S W Ar r o w o o d A v e SW Dawn St SW Childs Rd SW Red L e a f S t W o o d c r e s t LnRi v e r w o o d L n SW M e g l y C t SW M a r e e C t SW Indian Creek Ave Annexation to the City of Lake Oswego AN 24-0003/Ordinance 2950 ³ 8/12/2024 Lake Oswego City Limits Subject Property R-10 Attachment A Tax Lot IDs:21E19AB00900 City of Lake Oswego: COMPREHENSIVE PLAN = R-10, Residential Low Density ZONING = R-10, Residential Low Density Clackamas County: ZONING = R-10, Residential Low Density 0 100 200 300 40050 Feet Ordinance 2950 (AN 24-0003) 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. 3.09.040(A)(1-4) Requirements for Petitions. 2.3.09.045 (A-E) 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 “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 property owner 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. The City has provided written notification of this annexation by publishing a notice once each week for two Ordinance 2950 (AN 24-0003) ATTACHMENT B/PAGE 2 OF 10 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 the City Hall, the Adult Community Center the City Library and the Operations Center. 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 is vacant, there are no electors residing on the property. The property owner (who does not reside on the property) has also consented to the annexation. owner, who is one in the same as the elector residing on the property, consented to the annexation. The proposed annexation complies with this statute. B. Metro Code 1. 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. 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. 2. 3.09.045 – Expedited Decisions A. The governing body of a city or Metro may use the process set forth in this section for minor boundary changes for which the petition is accompanied by the written consents of one hundred percent of property owners and at least fifty percent of the electors, if any, within the affected territory. No public hearing is required. B. The expedited process must provide for a minimum of 20 days’ notice prior to the date set for decision to all necessary parties and other persons entitled to notice by the laws of the city or Metro. The notice shall state that the petition is subject to the expedited process unless a necessary party 1 gives written notice of its objection to the boundary change. C. At least seven days prior to the date of decision the city or Metro shall make available to the public a report that includes the following information: 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 2950 (AN 24-0003) ATTACHMENT B/PAGE 3 OF 10 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. Metro Code 3.09.045(A) states that an expedited review of an annexation, where no public hearing is required, can be considered by a governing body within the area proposed to be annexed if one hundred percent of the property owners and not less than 50 percent of the electors, if any, residing in the territory consent in writing to the annexation. The property owner has signed the annexation application. One hundred percent of the owners and electors have consented to this annexation. Metro Code 3.09.045(B) requires a minimum of 20 days’ notice to all necessary parties prior to the decision date. The County, Metro and local service districts are the necessary parties under the Metro Code 3.09.020(J) and all have been notified on September 11, 2024 more than 20 days before the scheduled decision date. Metro Code 3.09.045(C) requires that the report discussing availability of urban services, withdrawal of the affected territory and the proposed effective date of the boundary change be made available at least seven days prior to the date of decision. The annexation report has been prepared and made available on September 11, 2024, no later than seven days prior to the public meeting. The proposed annexation complies with the Metro Code. D. To approve a boundary change through the 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 Oswego School District, and 2) Lake Grove Fire 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 these properties from the District. Lake Grove Fire District #57: 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. These properties are within the boundaries of the Lake Grove Fire District #57 and the annexation will withdraw these properties from that District. The proposed annexation is consistent with these agreements. 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. Ordinance 2950 (AN 24-0003) ATTACHMENT B/PAGE 4 OF 10 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). Waste water Master Plan: Sanitary sewer service is available from an 8-inch collection line terminating at a manhole in Dawn Street approximately 20 feet west of the property’s western property line. This sewer main can provide public sanitary sewer service to the existing dwelling and any future development of the property. Future sewer connection to this property would require a public sewer main extension in Dawn Street terminating at the eastern property line of 5077 Dawn Street. The sewer main shall be deep enough to provide gravity service to homes on both sides of the street continuing to the east and north along Arrowood Avenue. Each home will be charged the applicable System Development Charge (SDC) for connection to the public sewer. Note: The Engineering Staff has preliminarily commented by memo on the development standards that would apply for the sewer connection. The sewer line has been installed and maintained in accordance with the provisions of the City’s Waste water Master Plan. Water System Master Plan: Water is available from a 6-inch Rivergrove Water District line in Dawn Street and will remain in the District’s service area after annexation. A fire hydrant is located 150 feet east of the property on the southeast corner of Arrowood Avenue and Dawn Street. The City of Lake Oswego entered into an agreement with the Rivergrove Water District on February 8, 1984 for water services. The agreement stipulates that the District will continue to serve the property upon annexation if it is capable of delivering a minimum flow of 1500 gallons per minute with a 20-psi residual pressure during periods of peak domestic demand. The District is currently able to meet these demands. If upon further development, this level of service is not provided, then City water may need to be provided. The water line and system has been installed and is being maintained in accordance with the provisions of the City’s Water System Master Plan. Clean Streams (Stormwater) Plan: After annexation, on-site surface water management will fall under various provisions of the Lake Oswego Code and the Clean Streams plan. However, 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). The Clean Streams (Stormwater) Plan does not identify any future projects for this section of Oakridge Road. Ordinance 2950 (AN 24-0003) ATTACHMENT B/PAGE 5 OF 10 Transportation (Statewide Planning Goal 12): 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. Dawn Street is identified as a local street in the City’s Transportation System Plan, and although the portion of this roadway along the frontage of this property has been annexed to the city, the road maintenance jurisdiction will not be transferred to the City until it is appropriate to complete a road transfer process with the County in the future. Tri Met Line 36 provides service on Pilkington Road to the transfer station in the City of Tualatin. 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-10 Low Density Residential on Clackamas County’s Comprehensive Plan and Zoning Maps. It is designated Low Density Residential, R-10 on the City’s Comprehensive Plan Map. As required under LOC 50.01.005.5, upon annexation, a City zoning designation of R-10 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-10 is consistent with the Urban Growth Management Agreement between the County and the City. Comprehensive Plan Policies: 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.” The property to be annexed 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 0.24 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 these properties 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 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.” Availability of urban services serving this property is discussed below: Water: Water is available to serve the subject property as detailed in subsection D.1.d. Sewer: Sanitary sewer service is available to serve the subject areas 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. The District has no bonded debt. Upon annexation, the property will be withdrawn from this fire district per a July 2003 urban service agreement and will be Ordinance 2950 (AN 24-0003) ATTACHMENT B/PAGE 6 OF 10 served directly by the City. The Fire station on 4555 Jean Road, located north of the site, would be able to respond to emergencies under the eight-minute goal established in the Comprehensive Plan. Police: Upon annexation, this property will be withdrawn from the Clackamas County Enhanced Sheriff’s Patrol District and served by the City of Lake Oswego. The Sheriff’s District has no bonded debt. 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 Canal Acres/Bryant Woods Natural Park and Pilkington Park. Canal Acres park is 31 acres and located on the north and south sides of Childs Road. Because this is a natural park, there are no amenities for organized recreation activities. Pilkington Park is located east of the site. It is a 3.7-acre neighborhood park and provides drop-in play fields, a walking path and a picnic table. 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. This property will remain within the Lake Grove Park District following annexation. Library District of Clackamas County: The Library District was formed to act as the fiscal agent for the distribution of property tax revenues raised by the District permanent rate to participating local governments who operate public libraries within Clackamas County. This property will remain within the Library District of Clackamas County following annexation. Surface Water Management Agency of Clackamas County: The Surface Water Management program protects water quality with programs to prevent, minimize and reduce pollution in rivers streams and wetlands caused by urban story water runoff. This property will be withdrawn from the district upon approval of this 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. Statewide Goal 10 and Complete Neighborhoods and Housing 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): 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. Ordinance 2950 (AN 24-0003) ATTACHMENT B/PAGE 7 OF 10 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 are 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 with the USB upon annexation to Lake Oswego. 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 UGMA 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-10. The HNA is based on the Comprehensive Plan Map’s residential land use designations. Figure 6.3 of the HNA, excerpted below, forecasts a citywide deficit of 642 units (86 acres), including a deficit of 192 units (38 acres) of low-density residential land, to meet the city’s housing needs by 2043. The proposed annexation would add 0.24 acres of low-density residential land to the City’s Buildable Lands inventory (BLI), which would correspondingly reduce the deficit of low-density residential land needed to meet the city’s housing needs by 2043 by 0.24 acres. The proposed annexation and designation of City zoning is consistent with the Comprehensive Plan and Map, and will help to meet the City’s housing needs as 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 as identified in the HNA. 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). Ordinance 2950 (AN 24-0003) ATTACHMENT B/PAGE 8 OF 10 “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 24-0003 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. The City’s R-10 zone is proposed to be applied consistent with (matching) the R-10 land use designation in the City’s Goal 10/Metro Housing Rule-compliant comprehensive plan. The Metropolitan Housing Rule (OAR 660-007-0035(3)) state that Lake Oswego must provide for an overall density of ten or more dwelling units per net buildable acre. The City’s R-10 zone allows for the development of cottage cluster developments of up to 8 dwelling units on properties meeting the minimum lot size of 10,000 sq. ft., corresponding to a density of more than 34 dwelling units per acre. The City’s R-10 zone also allows for the development of quadplexes containing 4 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than 17 dwelling units per acre. Further, the City’s R-10 zone allows for the development of triplexes containing 3 dwelling units on properties meeting the minimum lot size, corresponding to a density of more than 13 dwelling units per acre. Therefore, the City’s R-10 zone meets the requirement to provide for an overall density of ten or more dwelling units per net buildable acre. 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 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-10 zoning is consistent with the Comprehensive Plan and City-County UGMA for the subject properties, and the City Council does not have other zoning options from which to choose in approving AN 24-0003. Urban Growth Management Agreement 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. Similarly, 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. 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: Ordinance 2950 (AN 24-0003) ATTACHMENT B/PAGE 9 OF 10 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.” 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 3.09.045(B), which requires mailing notice to all necessary parties, 20 days prior to the annexation decision for all necessary parties (other governmental entities). The notice shall state that the petition is subject to the expedited process unless a “necessary party” gives written notice of its objection to the boundary change. The County is a necessary party under the Metro Code definition and has been notified. “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 ORS 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). The right-of-way adjacent to this property is within the City Boundary and although the portion of this road way along the frontage of this property has been annexed to the city, the road maintenance jurisdiction will not be transferred to the City until it is appropriate to complete a road transfer process with the County in the future. f. Any applicable concept plan There 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. It 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 City’s Urban Growth Boundary (UGB). CONCLUSION: Ordinance 2950 (AN 24-0003) ATTACHMENT B/PAGE 10 OF 10 Based on the criteria and findings set forth above, the City Council concludes that AN 24-0003 complies 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. Source: Lake Oswego Chamber of Commerce CITY OF LAKE OSWEGO, OR HOUSING NEEDS ANALYSIS (OREGON STATEWIDE PLANNING GOAL 10) 20-YEAR HOUSING NEED2023 - 2043 September 21, 2023ATTACHMENT 2 (ORDINANCE 2934)LU 23-0023AN 24-0003EXHIBIT E-1/PAGE 1 OF 55EXHIBIT E-1 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 1 Acknowledgments Johnson Economics prepared this report for the City of Lake Oswego. Johnson Economics and the City of Lake Oswego thank the many people who helped to develop this document. City Staff Erik Olson, Long Range Planning Manager Jessica Numanoglu, Interim Community Development Director Lake Oswego Housing Task Force Kasey Adler, Transportation Advisory Board Kyrsten Baumgart, Housing producer Phil Bertrand, Housing producer Joseph M. Buck, City Council Liaison Thea Croman, DLCD Kelly Reid, DLCD Douglas Corder, 50+ Advisory Board Pat Ginn, Resident Diana Howell, Resident Cara Kao-Young , Resident Betty Jung, Resident Yoko Kinoshita, Resident Rebecca Lane, Resident Rosalie Nowalk, Resident John E. Pauley, Resident Bruce Poinsette, Development Review Commission Phillip Stewart, Planning Commission Liaison David Tangvald, Housing producer Kimvi To, D.E.I. Advisory Board John Turchi, Resident Sarah Walker, Housing producer Consultants Brendan Buckley, Johnson Economics Andrew Parish, MIG Matt Hastie, MIG This report was prepared in accordance with the requirements of OAR 660 Division 8: Interpretation of Goal 10 Housing. This project is funded by the State of Oregon through the Department of Land Conservation and Development. The contents of this document do not necessarily reflect the views or policies of the State of Oregon. City of Lake Oswego 380 A Ave. Lake Oswego, OR 97034 (503)635-0270Johnson Economics 621 SW Alder Street Suite 605 Portland, OR 97205 (503) 295-7832AN 24-0003EXHIBIT E-1/PAGE 2 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 2 TABLE OF CONTENTS I. INTRODUCTION 3 II. CITY OF LAKE OSWEGO DEMOGRAPHIC PROFILE 4 A. POPULATION GROWTH 5 B. HOUSEHOLD GROWTH & SIZE 5 C. FAMILY HOUSEHOLDS 5 D. GROUP QUARTERS POPULATION 6 E. HOUSING UNITS 6 F. AGE TRENDS 6 G. DIVERSITY TRENDS 8 H. PEOPLE WITH A DISABILITY 10 I. INCOME TRENDS 11 J. POVERTY STATISTICS 12 K. EMPLOYMENT LOCATION TRENDS 12 III. CURRENT HOUSING CONDITIONS 14 A. HOUSING TENURE 14 B. HOUSING STOCK 14 C. NUMBER OF BEDROOMS 14 D. UNIT TYPES BY TENURE 15 E. AGE AND CONDITION OF HOUSING STOCK 16 F. HOUSING COSTS VS. LOCAL INCOMES 17 G. PUBLICLY ASSISTED HOUSING 18 IV. CURRENT HOUSING NEEDS (CITY OF LAKE OSWEGO) 20 V. FUTURE HOUSING NEEDS - 2043 (CITY OF LAKE OSWEGO) 26 VI. RECONCILIATION OF FUTURE NEED (2043) & LAND SUPPLY 32 APPENDIX A: BUILDABLE LAND INVENTORY SUMMARY 35 AN 24-0003EXHIBIT E-1/PAGE 3 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 3 I. INTRODUCTION This analysis outlines a forecast of housing need within the City of Lake Oswego. Housing need and resulting land need are forecast to 2043, consistent with the 20-year need assessment requirements of Oregon Revised Statutes.1 This report presents a housing need analysis (presented in number and types of housing units) and a residential land need analysis, based on those projections. The primary data sources used in generating this forecast were: ▪ Portland State University Population Research Center ▪ Metro ▪ U.S. Census ▪ Claritas2 ▪ Oregon Employment Department ▪ City of Lake Oswego ▪ Clackamas County ▪ Other sources are identified as appropriate. This analysis relies heavily on Census data from both the 2020 Decennial Census and the American Community Survey (ACS). All Census data feature some margin of error but remain the best source of data available on many demographic and housing subjects. One limitation of the 2020 Census is the release schedule of data sets, which takes place over several years following the year of the Census. Thus far, data has been released on: Population; Race; Latino ethnicity; number of Households; number of Housing Units; and Group Quarters population. While these are key baseline data sets utilized in this analysis, any additional nuance on demographics and housing from the 2020 Census are not yet available, with the next data release expected later in 2023. Despite the limitations, the 2020 Census is relied upon here as the best available source for the key indicators listed above in Lake Oswego, as of 2023. For more detailed data sets on demographics and housing, this analysis relies on the American Community Survey (ACS), which features a higher margin of error on all tables than the Decennial Census. The ACS is a survey of a representative sample of households which the Census uses to make estimates generalized to the population of the relevant geography. This analysis relies whenever possible on the most recent 2021 ACS 5-year estimates. The 5-year estimates have a lower margin of error than the ACS 1-year estimates. 1 ORS 197.628; OAR 660-025 2 Claritas is a third-party company providing data on demographics and market segmentation. It licenses data from the Nielson Company which conducts direct market research including surveying of households across the nation. Nielson combines proprietary data with data from the U.S. Census, Postal Service, and other federal sources, as well as local-level sources such as Equifax, Vallassis and the National Association of Realtors. Projections of future growth by demographic segments are based on the continuation of long-term and emergent demographic trends identified through the above sources. AN 24-0003EXHIBIT E-1/PAGE 4 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 4 II. CITY OF LAKE OSWEGO DEMOGRAPHIC PROFILE SUMMARY The following table (Figure 2.1) presents a profile of City of Lake Oswego demographics from the 2000 and 2010 Census. It also reflects the estimated population of this area as of 2023 from PSU estimates, forecasted forward to 2023 using the estimated 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 estimated population, Lake Oswego is the 13th largest city in the state by population, similar in size to Oregon City regionally, or Keizer and Grants Pass statewide. Lake Oswego has about 1.5 times the population of neighboring West Linn or Tualatin, and about 75% of the population 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 population growth of 26% and 25% respectively. (US Census and PSU Population Research Center) FIGURE 2.1: LAKE OSWEGO DEMOGRAPHIC PROFILE ▪ Lake Oswego was home to an estimated 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 estimated to have remained fairly stable during this period. 20002010Growth2023Growth(Census)(Census)00-10(PSU)10-23Population135,27836,6194%41,55013%Households214,82415,8937%17,48110%Families39,77510,0793%11,84217%Housing Units415,66816,9958%18,3458%Group Quarters Population516322236%32948%Household Size (non-group)2.372.29-3%2.363%Avg. Family Size2.932.88-2%2.973%20002010Growth2023Growth(Census)(Census)00-10(Proj.)10-23Per Capita ($)$42,166$53,65227%$74,60039%Median HH ($)$71,597$84,18618%$123,30046%SOURCE: Census, Metro Consolidated Forecast, PSU Population Research Center, and Johnson EconomicsCensus Tables: DP-1 (2000, 2010); DP-3 (2000); S1901; S193011 From Census, PSU Population Research Center, growth rate 2010-2022 extended to 20232 2023 Households = (2023 population - Group Quarters Population)/2023 HH Size3 Ratio of 2023 Families to total HH is based on 2021 ACS 5-year Estimates4 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 2017-2021PER CAPITA AND MEDIAN HOUSEHOLD INCOMEPOPULATION, HOUSEHOLDS, FAMILIES, AND YEAR-ROUND HOUSING UNITSAN 24-0003EXHIBIT E-1/PAGE 5 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 5 ▪ Lake Oswego’s estimated 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. A. POPULATION GROWTH Since 2000, Lake Oswego has grown by nearly 6,300 people within the UGB, or 18% in 23 years. This was lower than the countywide rate of growth. Clackamas County as a whole has grown an estimated 26% since 2000, while other cities in the county such as West Linn and Oregon City grew by 23% and 46% respectively. Portland’s population grew by an estimated 19% during this period (PSU Population Research Center). B. HOUSEHOLD GROWTH & SIZE As of 2023, the city has an estimated 17,500 households. Since 2000, Lake Oswego has added an estimated 2,650 households. This is an average of roughly 115 households annually during this period. The growth since 2000 has paced the growth in new housing units, which have been permitted at the rate of roughly 117 units per year. There has been a general trend in Oregon and nationwide towards declining household size as birth rates have fallen, more people have chosen to live alone, and the Baby Boomers have become “empty nesters.” While this trend of diminishing household size is expected to continue nationwide, there are limits to how far the average can fall. Lake Oswego’s average household size of 2.4 people, with 68% family households, is smaller than Clackamas County (2.6 persons; 69% families). Figure 2.2 shows the share of households by the number of people for renter and owner households in 2021 (latest data available), according to the Census. Renter households are more likely to be one-person households, with 75% having two or fewer residents. Owner households are more likely to have two or more persons. FIGURE 2.2: NUMBER OF PEOPLE PER HOUSEHOLD, CITY OF LAKE OSWEGO SOURCE: US Census, JOHNSON ECONOMICS LLC Census Tables: B25009 (2021 ACS 5-yr Estimates) C. 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 estimated to have grown by over 2,060 since 2000. The Census defines family households as two or more persons, related by marriage, birth or adoption and living together. In 2023, family households in Lake Oswego have an estimated average size of 2.97 people. 20%38%19%18%4%2%0%40%35%11%11%3%1%0%0%5%10%15%20%25%30%35%40%1-person2-person3-person4-person5-person6-person7-or-moreShare of HouseholdsHousehold SizeRenterOwnerAN 24-0003EXHIBIT E-1/PAGE 6 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 6 D. GROUP QUARTERS POPULATION As of the 2020 Census, the City of Lake Oswego had an estimated group quarters population of 0.8% of the total population, or 329 persons. Group quarters include such shared housing situations as nursing homes, prisons, dorms, group residences, military housing, or shelters. For the purposes of this analysis, these residents are removed from the estimated population 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 population is found in assisted living facilities. E. HOUSING UNITS Data from the City of Lake Oswego and the US Census indicate that the city added roughly 2,680 new housing units since 2000, representing 17% growth in the housing stock. This number of new units is slightly higher than the growth in new households estimated during the same period (2,660), indicating that housing growth has kept pace with growing need. As of 2023, the city had an estimated housing stock of roughly 18,350 units for its 17,500 estimated households. This translates to an estimated average vacancy rate of 4.7%. Residential Permits: An average of 117 units have been permitted annually since 2000, with 24% being multi-family units. Most multi-family housing in Lake Oswego has been built in the last decade. FIGURE 2.3: HISTORIC AND PROJECTED RESIDENTIAL PERMITS, CITY OF LAKE OSWEGO SOURCE: HUD F. AGE TRENDS The following figure shows the share of the population falling in different age cohorts between the 2000 Census and the most recent 5-year American Community Survey estimates. As the chart shows, there is a general trend for middle age and young cohorts to fall as share of total population, while older cohorts have grown in share. This is in keeping with the national trend caused by the aging of the Baby Boom generation. Overall, Lake Oswego has an older population than the county, with a similar share of children, but a smaller share of those aged 25 to 44 years. 050100150200250300350Housing PermitsMulti-FamilySingle FamilyAN 24-0003EXHIBIT E-1/PAGE 7 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 7 FIGURE 2.4: AGE COHORT TRENDS, 2000 - 2021 SOURCE: US Census, JOHNSON ECONOMICS LLC Census Tables: QT-P1 (2000); S0101 (2021 ACS 5-yr Estimates) ▪ The cohorts which grew the most in share during this period were those aged 55 to 74 years. Still, an estimated 79% of the population is under 65 years of age. ▪ In the 2021 ACS, the local median age was an estimated 46 years, compared to 40 years in Oregon, and 39 years nationally. Figure 2.5 presents the share of households with children, and the share of population over 65 years for comparison. Compared to state and national averages, Lake Oswego has a similar share of households with children. However, at 21%, the share of population over 65 is higher than the state and national figures. FIGURE 2.5: 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 Estimates) 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)31%28%31%0%10%20%30%40%Lake OswegoOregonUSAShare of Households with Children21%18%16%0%10%20%30%40%Lake OswegoOregonUSAShare of Population Over 65 YearsAN 24-0003EXHIBIT E-1/PAGE 8 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 8 G. DIVERSITY TRENDS The following figure presents the distribution of Lake Oswego’s population by race and Hispanic ethnicity. The community grew more diverse between the 2010 and 2020 Census, with the population’s white (non-Hispanic) share falling from 90% to 80%. The Asian population makes up 8% of the population, and the Hispanic or Latino population makes up 5% of residents. 9% of residents identify as two or more races. FIGURE 2.6: 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 population identifying as white is also 80% in Clackamas County, and 75% statewide. The share of Lake Oswego’s population identifying as Hispanic or Latino is 5% of the population, indicating over 2,100 people as of the 2020 Census. This is lower than the 14% share statewide. FIGURE 2.7: 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. 80%1%0%8%0%1%9%5%0%20%40%60%80%100%WhiteBlack or AfricanAmericanAmerican andAlaska NativeAsianHawaiian andPacific IslanderSome Other RaceTwo or moreracesHispanic or Latino(any race)Share of Population by RaceLake Oswego (2010)Lake Oswego (2020)Clackamas Co.Oregon2.52.42.52.82.83.53.74.02.70.01.02.03.04.05.0All HouseholdsWhite aloneBlack or African American aloneAmerican Indian and Alaska Native aloneAsian aloneNative Hawaiian and Pacific IslanderHispanic or LatinoSome Other Race aloneTwo or more races:Avg. Number of Persons per HouseholdAverage Household Size by Race & Ethnicity (Oregon)AN 24-0003EXHIBIT E-1/PAGE 9 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 9 Minority households tend to have a larger average household size than the average of all households (Figure 2.7). (This figure presents statewide data due to the high margin of error for local data in this data set.) Households identifying as “white alone” have the lowest average household size (2.4 persons), while all other racial and ethnic categories have a larger estimated average household size. Some of the non-white categories, such as black households and those of two or more races, are still similar in average size (2.5 and 2.7 persons, respectively). Those with the largest estimated households are Latinos, Pacific Islanders, and those identifying 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 minorities are currently less likely to own the homes they occupy (Figure 2.8) – 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). While the country and state try to address explicit discrimination through the law, the legacy of these barriers continues to hamper home ownership for many minority households. Going forward, many communities would benefit from more entry-level homebuying opportunities for these households, as well as additional rental housing for those who are still unready or unable to buy a home. FIGURE 2.8: 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. Populations 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 population. Such income levels are correlated with a greater share of renter households and impact the types of housing these populations consume, as discussed in further detail below. 63%65%36%48%63%32%45%43%50%0%20%40%60%80%100%All HouseholdsWhite aloneBlack or African American aloneAmerican Indian and Alaska Native aloneAsian aloneNative Hawaiian and Pacific IslanderHispanic or LatinoSome Other Race aloneTwo or more races:Ownership RateOwner-Occupied Households by Race & Ethnicity (Oregon)AN 24-0003EXHIBIT E-1/PAGE 10 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 10 H. PEOPLE WITH A DISABILITY An estimated 8% of the population 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 statistics for the “non-institutionalized population.”) The following figure presents Census estimates 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 often need units with expanded access for a wheelchair, walker, or scooter. Those with self-care or independent living disabilities may require additional safety precautions around the home to protect a resident who cannot always be directly monitored. FIGURE 2.9: LAKE OSWEGO SHARE OF THE POPULATION WITH DISABILITY, BY TYPE SOURCE: US Census, JOHNSON ECONOMICS LLC Census Tables: DP02, (2020 ACS 5-year) FIGURE 2.10: LAKE OSWEGO POPULATION WITH A DISABILITY, BY AGE 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 disabilityHearing difficultyVision difficultyCognitive difficultyAmbulatory difficultySelf-care difficultyIndependent living difficultyShare of Population7.8%2.0%5.8%19.5%0%5%10%15%20%25%Total populationUnder 18 years18 to 64 years65 years and overShare of Population with Disability by AgeAN 24-0003EXHIBIT E-1/PAGE 11 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 11 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 population reports a disability, and 2% of children. Because Census data tends to undercount the homeless and other vulnerable populations, there are likely more disabled residents in Lake Oswego than reflected in these data. I. INCOME TRENDS The following figure presents data on Lake Oswego’s income trends. FIGURE 2.11: INCOME TRENDS, 2000 – 2023 (LAKE OSWEGO) ▪ Lake Oswego’s estimated 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 estimated 46% between 2010 and 2023, in real dollars. Inflation was an estimated 34% over this period, so the local median income has well exceeded inflation. This is not the case in many regions and nationally, where income growth has not kept pace with inflation. FIGURE 2.12: HOUSEHOLD INCOME COHORTS, 2021 (LAKE OSWEGO) SOURCE: US Census, Census Tables: S1901 (2021 ACS 5-yr Est.) Figure 2.12 presents the estimated distribution 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%). ▪ 41% of households earn less than $100,000. ▪ Roughly 19% of households earn less than $50k per year. 2000 2010Growth2023Growth(Census) (Census) 00-10 (Proj.) 10-23Per Capita ($)$42,166 $53,65227%$74,60039%Median HH ($)$71,597 $84,18618%$123,30046%SOURCE: Census, Metro Consolidated Forecast, PSU Population Research Center, and Johnson EconomicsCensus Tables: DP-1 (2000, 2010); DP-3 (2000); S1901; S19301PER CAPITA AND MEDIAN HOUSEHOLD INCOME3%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 moreHousehold Income GroupsAN 24-0003EXHIBIT E-1/PAGE 12 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 12 J. POVERTY STATISTICS According to the US Census, the official poverty rate in Lake Oswego is an estimated 4% over the most recent period reported (2021 5-year estimates).3 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%. 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 estimated 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. Information on affordable housing is presented in Section II F of this report. FIGURE 2.13: POVERTY STATUS BY CATEGORY (LAKE OSWEGO) SOURCE: US Census Census Tables: S1701 (2021 ACS 5-yr Est.) K. EMPLOYMENT LOCATION TRENDS This section provides an overview of employment and industry trends in Lake Oswego that are related to housing. Commuting Patterns: The following figure shows the inflow and outflow of commuters to Lake Oswego according to the Census Employment Dynamics Database. These figures reflect “covered employment” as of 2019, the most recent year available. Covered employment refers to those jobs where the employee is covered by federal unemployment insurance. This category does not include many contract employees and self-employed and therefore is not a complete picture of local employment. The figure discussed here is best understood as indicators of the general pattern of commuting and not exact figures. As of 2017, the most recent year available, the Census estimated there were roughly 23,100 covered employment jobs located in Lake Oswego. Of these, an estimated 2,250 or 10%, are held by local residents, while nearly 21,000 employees commute into the city from elsewhere. This general pattern is fairly common among many communities 3 Census Tables: S1701 (2018 ACS 5-yr Estimates); Methodology The Census Bureau uses a set of income thresholds that vary by family size and composition to determine who is in poverty. There are 48 separate income thresholds set based on the possible combinations of household composition. 3%4%5%2%7%11%10%7%3%0%5%10%15%20%Under 18 years18 to 64 years65 years and overEmployedUnemployedLess than high schoolHigh schoolSome college, associate'sBachelor's degree or higherPoverty Level of SubgroupsAN 24-0003EXHIBIT E-1/PAGE 13 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 13 in the Metro area, but the pattern is particularly stark here. The most common homes of local workers commuting into the city are Portland, Beaverton, or Tigard. This data set predates the surge in remote working that has taken place over the last few years. In prior years, it was safe to assume that most residents holding jobs outside the community likely commuted physically. Now, a resident might hold a job in another city but work from home. Unfortunately, these data do not quantify this growing segment. Similarly, of the estimated 18,000 employed Lake Oswego residents, 88% of them commute elsewhere to their employment. The most common destinations for Lake Oswego commuters are Portland and Beaverton. Smaller shares work elsewhere in the Portland metro or in the mid-Willamette Valley. FIGURE 2.14: COMMUTING PATTERNS (PRIMARY JOBS), LAKE OSWEGO Source: US Census Longitudinal Employer-Household Dynamics Jobs/Household Ratio: Lake Oswego features a balanced jobs-to-households ratio. There are an estimated 23,000 jobs in Lake Oswego (covered), and an estimated 17,500 households in Lake Oswego. This represents 1.3 jobs per household. There is no standard jobs-to-households ratio that is right for all communities, but it can provide a guide to the balance between employment uses and residential uses in the city. There is an average of 1.0 job held for each Lake Oswego household, a majority of which are located outside the city. 20,900Work in Lake Oswego,live elsewhere15,800Live in Lake Oswego,work elsewhere2,250Live and workin Lake Oswego90% / 10%12% / 88%AN 24-0003EXHIBIT E-1/PAGE 14 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 14 III. CURRENT HOUSING CONDITIONS This section presents a profile of the current housing stock and market indicators in Lake Oswego. This profile forms the foundation to which current and future housing needs will be compared. A. HOUSING TENURE Lake Oswego has a greater share of homeowner households than renter households. The 2021 ACS estimates that 71% of occupied units were owner occupied, and only 29% renter occupied. The ownership rate is little changed since 2000. The estimated ownership rate is higher across Clackamas County (73%) and lower statewide (63%). B. HOUSING STOCK As shown in Figure 2.1, Lake Oswego had an estimated 18,350 housing units in 2023, with a vacancy rate of 5% (includes ownership and rental units). The housing stock has increased by roughly 2,680 units since 2000, or growth of over 17%. FIGURE 3.1: ESTIMATED SHARE OF UNITS, BY PROPERTY TYPE, 2023 SOURCE: US Census, City of Lake Oswego Figure 3.1 shows the estimated number of units by type in 2023 based on US Census. Detached single-family homes represent an estimated 63% of housing units. Units in larger apartment complexes of 5 or more units represent 21% of units, and other types of attached homes represent 16% of units. (Attached single family generally includes townhomes, and some 2 to 4-plexes which are separately metered.) Manufactured homes represent well less than 1% of the inventory. C. NUMBER OF BEDROOMS Figure 3.2 shows the share of units for owners and renters by the number of bedrooms they have. In general, owner-occupied units are much more likely to have three or more bedrooms, while renter-occupied units are much more likely to have two or fewer bedrooms. 63%9%1%6%21%0%0%0%20%40%60%80%SingleDetachedSingleAttachedDuplex3- or 4-plex5+ UnitsMFRManuf.homeBoat, RV,other tempLake Oswego, OregonAN 24-0003EXHIBIT E-1/PAGE 15 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 15 FIGURE 3.2: NUMBER OF BEDROOMS FOR OWNER AND RENTER UNITS, 2021 (LAKE OSWEGO) SOURCE: US Census Census Tables: B25042 (2021 ACS 5-year Estimates) D. UNIT TYPES BY TENURE As Figure 3.3 and 3.4 show, a large share of owner-occupied units (81%), are detached homes, which is related to why owner-occupied units tend to have more bedrooms. Renter-occupied units are much more distributed among a range of structure types. About 18% of rented units are estimated to be detached homes or manufactured homes, while the remainder are some form of attached unit. Nearly 60% of rental units are in larger apartment complexes. FIGURE 3.3: CURRENT INVENTORY BY UNIT TYPE, FOR OWNERSHIP AND RENTAL HOUSING (LAKE OSWEGO) OWNERSHIP HOUSING RENTAL HOUSING Sources: US Census, JOHNSON ECONOMICS, CITY OF LAKE OSWEGO 0%2%14%33%39%11%6%27%43%19%5%1%0%10%20%30%40%50%Studio1 bedroom2 bedrooms3 bedrooms4 bedrooms5 or moreNumber of BedroomsRenterOwnerSingle DetachedSingle AttachedDuplex3- or 4-plex5+ Units MFRManuf. homeBoat, RV, other tempTotal UnitsTotals:10,557 1,2929337 781 320 13,008Percentage:81.2% 9.9%0.1% 2.6% 6.0% 0.2% 0.0%100%OWNERSHIP HOUSINGSingle DetachedSingle AttachedDuplex3- or 4-plex5+ Units MFRManuf. homeBoat, RV, other tempTotal UnitsTotals:934 332250 6753,145 0 0 5,337Percentage:17.5% 6.2%4.7% 12.7% 58.9% 0.0% 0.0%100%RENTAL HOUSINGAN 24-0003EXHIBIT E-1/PAGE 16 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 16 FIGURE 3.4: CURRENT INVENTORY BY UNIT TYPE, BY SHARE Sources: US Census, JOHNSON ECONOMICS, CITY OF LAKE OSWEGO E. AGE AND CONDITION OF HOUSING STOCK Lake Oswego’s housing stock reflects the pattern of development over time. The greatest periods of development in Lake Oswego were in the 1970’s and 1980’s. Roughly 15% of the housing stock has been built since 2000. FIGURE 3.5: AGE OF UNITS FOR OWNERS AND RENTERS (LAKE OSWEGO) SOURCE: US Census Census Tables: B25036 (2021 ACS 5-year Estimates) ▪ Unfortunately, good quantitative data on housing condition is generally unavailable without an intensive on-site survey of all local housing, which is beyond the scope of this analysis. Census categories related to housing condition are ill-suited for this analysis, dealing with such issues as units without indoor plumbing, which was more common in the mid-20th Century, but is an increasingly rare situation. Age of units serves as the closest reliable proxy for condition with available data. ▪ For ownership units, older homes may be in poor condition, but are also more likely to have undergone some repair and renovation over the years. Rental units are more likely to degrade steadily with age and wear-and-81%10%0%3%6%0%0%18%6%5%13%59%0%0%0%20%40%60%80%100%SingleDetachedSingleAttachedDuplex3- or 4-plex5+ UnitsMFRManuf.homeBoat, RV,other tempShare of UnitsUnit TypeLake Oswego, OregonOwnerRental7%8%17%20%23%10%7%3%5%9%8%20%25%23%5%5%1%3%0%5%10%15%20%25%30%Year Housing Unit BuiltOwnerRenterAN 24-0003EXHIBIT E-1/PAGE 17 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 17 tear, and less likely to receive sufficient reinvestment to keep them in top condition, though this is not universally true. F. HOUSING COSTS VS. LOCAL INCOMES Figure 3.6 shows the share of owner and renter households who are paying more than 30% of their household income towards housing costs, by income segment. (Spending 30% or less on housing costs is a common measure of “affordability” used by HUD and others, and in the analysis presented in this report.) As one would expect, households with lower incomes tend to spend more than 30% of their income on housing, while incrementally fewer of those in higher income groups spend more than 30% of their incomes on housing costs. Of those earning less than $20,000, an estimated 91% of owner households and 100% of renters spend more than 30% of income on housing costs. Even among households earning between $50,000 and $75,000 per year, a majority are housing cost burdened. Because Lake Oswego has an income distribution skewed towards higher income levels, there are relatively few households in these lower income segments, compared to most other cities. In total, the US Census estimates that over 31% of Lake Oswego households pay more than 30% of income towards housing costs (2021 American Community Survey, B25106) FIGURE 3.6: SHARE OF LAKE OSWEGO HOUSEHOLDS SPENDING MORE THAN 30% ON HOUSING COSTS, BY INCOME GROUP Sources: US Census, JOHNSON ECONOMICS Census Table: B25106 (2021 ACS 5-yr Estimates) Housing is generally one of a household’s largest living costs, if not the largest. The ability to find affordable housing options, and even build wealth through ownership, is one of the biggest contributors to helping lower income households save and cultivate wealth. Even if renting, affordable housing costs allow for more household income to be put to other needs, including saving. The following figures show the percentage of household income spent towards gross rent4 for local renter households only. This more fine-grained data shows that not only are 49% of renters spending more than 30% of their income on gross rent, but an estimated 29% of renters are spending 50% or more of their income on housing and are considered severely rent-burdened. 4 The Census defines Gross Rent as “the contract rent plus the estimated average monthly cost of utilities (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, utilities and condo or HOA dues. 91%82%74%51%12%100%92%88%64%16%0%20%40%60%80%100%Less than$20,000$20,000 to$34,999$35,000 to$49,999$50,000 to$74,999$75,000 ormoreShare of HH: Housing Costs >30% of IncomeHousehold IncomeOwner HouseholdsRenter HouseholdsAN 24-0003EXHIBIT E-1/PAGE 18 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 18 Renters are disproportionately lower income relative to homeowners. Housing cost burdens are felt more broadly for these households, and as the analysis presented in a later section shows there is a need for more affordable rental units in Lake Oswego, as in most communities. FIGURE 3.7: PERCENTAGE OF HOUSEHOLD INCOME SPENT ON GROSS RENT, LAKE OSWEGO RENTER HOUSEHOLDS Sources: US Census, JOHNSON ECONOMICS Census Table: B25070 (2021 ACS 5-yr Estimates) G. PUBLICLY ASSISTED HOUSING Oregon Housing and Community Services (OHCS) tracks three currently operating affordable housing properties in Lake Oswego, with a total of 76 units. These are properties 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. Completion is expected in 2024. The Housing Authority of Clackamas County administers over 1,600 Section 8 housing choice vouchers that allow low-income participants to find rental units anywhere in the county. Under this program, the renters can find participating 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 still 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 Worker Housing: Lake Oswego is not currently home to properties dedicated to agricultural workers. This population may also be served by other available affordable units. People Experiencing Homelessness: The Census does make a multi-faceted effort to include the unhoused population in the total Decennial Census count, by attempting to enumerate these individuals at service providers, and in transitory locations 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 population, and it is generally presumed that the unhoused are undercounted in the Census. The most recent (January 2022) Point-in-Time count of people experiencing homelessness and households experiencing homelessness in Clackamas County5 found 597 unhoused individuals on the streets, in shelters, or 5 Figures are for the entire County 3%22%25%14%7%29%0%5%10%15%20%25%30%35%Share of Households% of Income to Gross RentAN 24-0003EXHIBIT E-1/PAGE 19 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 19 other temporary and/or precarious housing. The estimated 597 unhoused individuals represent 0.1% of the county’s total estimated population in 2022. ▪ An estimated 45% of individuals were in some sort of temporary shelter, while 55% were unsheltered. ▪ The total included 51 children (under age 18), and 26 youth (aged 18-24). ▪ Of those indicating a gender, 60% of those counted identified as men, 40% women. ▪ 5% of those counted were Hispanic or Latino compared to 9.5% in the general population. ▪ 304 individuals, or 51%, were counted as “chronically homeless”.6 While the Point-in-Time count is one of the few systematized efforts to count people experiencing homelessness across the country in a regular, structured way, it is widely thought to undercount the population of unhoused individuals and households. People who are doubled up, couch surfing, or experiencing domestic violence may not always be accurately counted. In addition 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-reporting. A recent analysis prepared for OHCS to test a potential approach for preparing Housing Capacity Analyses on a regional basis included estimates of the unhoused population in Oregon communities, including Lake Oswego. The approach utilizes a combination of data from the bi-annual Point-in-Time count and from tracking of unhoused school-aged children in keeping with the McKinney-Vento Act. The analysis estimates 239 households experiencing homelessness in Lake Oswego as of mid-2020. These include households that are unsheltered, in temporary shelters, or staying with friends or relatives. These households are a component of current and future housing need. The persistence of people experiencing homelessness speaks to the need for continuing to build a full spectrum of services and housing types to shelter this population, 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 potential shortfall is included in the following sections of this report. 6 HUD defines “chronically homeless” as an individual with a disability as defined by the McKinney-Vento Assistance Act, who has been in uninhabitable conditions for more than 12 mo. or on four separate occasions in the last three years; or has been in institutional care for less than 90 days; or a family with an adult head of household who meets this definition. AN 24-0003EXHIBIT E-1/PAGE 20 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 20 IV. CURRENT HOUSING NEEDS (CITY OF LAKE OSWEGO) The profile of current housing conditions in the study area is based on Census 2010, which the Portland State University Population Research Center (PRC) uses to develop yearly estimates through 2019. The 2019 estimate is forecasted to 2023 using the estimated growth rate realized since 2010. FIGURE 4.1: CURRENT LAKE OSWEGO HOUSING PROFILE (2023) *This table reflects population, household and housing unit projections shown in Figure 2.1 We estimate a current population of 41,550 residents, living in 17,481 households (excluding group living situations). Average household size is 2.4 persons. There are an estimated 18,345 housing units in the city, indicating an estimated vacancy rate of 5%. This includes units vacant for any reason, not just those which are currently for sale or rent. ESTIMATE OF CURRENT HOUSING DEMAND Following the establishment of the current housing profile, the current housing demand was determined based upon the age and income characteristics of current households. The analysis considered the propensity of households in specific age and income levels to either rent or own their home (tenure), in order to derive the current demand for ownership and rental housing units and the appropriate housing cost level of each. This is done by combining data on tenure by age and tenure by income from the Census American Community Survey (tables: B25007 and B25118, 2021 ACS 5-yr Estimates). The analysis takes into account the average amount that owners and renters tend to spend on housing costs. For instance, lower income households tend to spend more of their total income on housing, while upper income households spend less on a percentage basis. In this case, it was assumed that households in lower income bands would prefer housing costs at no more than 30% of gross income (a common measure of affordability). Higher income households pay a decreasing share down to 20% for the highest income households. While the Census estimates that most low-income households pay more than 30% of their income for housing, this is an estimate of current preferred demand. It assumes that low-income households prefer (or demand) units affordable to them at no more than 30% of income, rather than more expensive units. SOURCETotal 2023 Population:41,550PSU Pop. Research Center- Estimated group housing population:329(0.8% of Total)US CensusEstimated Non-Group 2023 Population: 41,221(Total - Group)Avg. HH Size:2.36US CensusEstimated Non-Group 2023 Households: 17,481(Pop/HH Size)Total Housing Units:18,345(Occupied + Vacant)Census 2010 + permitsOccupied Housing Units:17,481(= # of HH)Vacant Housing Units:864(Total HH - Occupied)Current Vacancy Rate:4.7%(Vacant units/ Total units)Sources: Johnson Economics, City of Lake Oswego, PSU Population Research Center, U.S. CensusCURRENT HOUSING CONDITIONS (2023)AN 24-0003EXHIBIT E-1/PAGE 21 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 21 Figure 4.2 presents a snapshot of current housing demand (i.e. preferences) equal to the number of households in the study area (17,481). The breakdown of tenure (owners vs. renters) reflects data from the 2021 ACS. FIGURE 4.2: ESTIMATE OF CURRENT HOUSING DEMAND IN LAKE OSWEGO (2023) Sources: PSU Population Research Center, Claritas., Census, JOHNSON ECONOMICS Census Tables: B25007, B25106, B25118 (2021 ACS 5-yr Estimates) Claritas: Estimates of income by age of householder The estimated home price and rent ranges are irregular because they are mapped to the affordability levels of the Census income level categories. For instance, an affordable home for those in the lowest income category (less than $15,000) would have to cost $80,000 or less. Affordable rent for someone in this category would be $400 or less. The affordable price level for ownership housing assumes 30-year amortization, at an interest rate of 5% (somewhat less than the current market rate, but in line with historic norms), with 10% down payment. These assumptions are designed to represent prudent lending and borrowing levels for ownership households. The 30-year mortgage commonly serves as the standard. In the 2000’s, down payment requirements fell significantly, but lending standards tightened significantly since the 2008/9 credit crisis. While 20% is often cited as the standard for most buyers, it is common for homebuyers, particularly first-time buyers, to pay significantly less than this using available programs. Interest rates are subject to disruption from national and global economic forces, and therefore impossible to forecast beyond the short term. The 5% used here is roughly the average 30-year rate over the last 20 years. The Price Range# of HouseholdsIncome Range% of TotalCumulative$0k - $80k330Less than $15,0002.7%2.7%$80k - $130k267$15,000 - $24,9992.2%4.9%$130k - $180k357$25,000 - $34,9992.9%7.8%$180k - $250k636$35,000 - $49,9995.2%13.0%$250k - $350k1,051$50,000 - $74,9998.6%21.7%$350k - $440k1,147$75,000 - $99,9999.4%31.1%$440k - $510k1,109$100,000 - $124,9999.1%40.2%$510k - $560k892$125,000 - $149,9997.3%47.5%$560k - $680k1,827$150,000 - $199,99915.0%62.5%$680k +4,577$200,000+37.5%100.0%Totals:12,191% of All:69.7%Rent Level# of HouseholdsIncome Range% of TotalCumulative$0 - $400348Less than $15,000 6.6% 6.6%$400 - $700383$15,000 - $24,999 7.2% 13.8%$700 - $900554$25,000 - $34,999 10.5% 24.3%$900 - $1300621$35,000 - $49,999 11.7% 36.0%$1300 - $1800837$50,000 - $74,999 15.8% 51.9%$1800 - $2200764$75,000 - $99,999 14.4% 66.3%$2200 - $2500505$100,000 - $124,999 9.6% 75.9%$2500 - $2800410$125,000 - $149,999 7.8% 83.6%$2800 - $3400271$150,000 - $199,999 5.1% 88.7%$3400 +596$200,000+11.3% 100.0%All HouseholdsTotals:5,290% of All: 30.3% 17,481RentalOwnershipAN 24-0003EXHIBIT E-1/PAGE 22 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 22 general trend has been falling interest rates since the early 1980’s, but coming out of the recent inflationary period, the Federal Reserve has raised its base rate significantly in recent years and mortgage rates have also climbed to levels not seen in almost 20 years. CURRENT HOUSING INVENTORY The profile of current housing demand (Figure 4.2) represents the preference and affordability levels of households. In reality, the current housing supply (Figures 4.3 and 4.4 below) differs from this profile, meaning that some households may find themselves in housing units which are not optimal, either not meeting the household’s own/rent preference, or being unaffordable (requiring more than 30% of gross income). A profile of current housing supply in Lake Oswego was estimated based on permit data from the City of Lake Oswego and Census data from the most recently available 2021 ACS, which provides a profile of housing types (single family, attached, manufactured home, etc.), tenure, housing values, and rent levels. The 5-year estimates from the ACS were used because margin of error is lower than 1-year ACS estimates. ▪ An estimated 71% of housing units are ownership units, while an estimated 29% of housing units are rental units. This is slightly different than the estimated demand profile shown in Figure 4.2, which estimated a bit higher demand for rental units given local income and age levels. The inventory includes vacant units. ▪ 81% of ownership units are detached homes, and very few are manufactured homes. 17.5% of rental units are either single family homes or manufactured homes, while 59% are in structures of 5 units or more. ▪ Of total housing units, an estimated 63% are detached homes or manufactured homes. 37% are some sort of attached unit type. FIGURE 4.3: PROFILE OF CURRENT HOUSING SUPPLY BY TYPE (2023) Sources: US Census, PSU Population Research Center, JOHNSON ECONOMICS Census Tables: B25004, B25032, B25063, B25075 (2021 ACS 5-yr Estimates) ▪ The affordability of different unit types is an approximation based on Census data on the distribution of housing units by value (ownership) or gross rent (rentals). ▪ Most subsidized affordable housing units found in the city are represented by the inventory at the lowest end of the rental spectrum. ▪ Ownership housing found at the lower end of the value spectrum generally reflect older, smaller homes, or homes in poor condition on small or irregular lots. It is important to note that these represent estimates of 81%10%0%3%6%0%0%18%6%5%13%59%0%0%0%20%40%60%80%100%SingleDetachedSingleAttachedDuplex3- or 4-plex5+ Units MFRManuf.homeBoat, RV,other tempShare of UnitsUnit TypeLake Oswego, OregonOwnerRentalAN 24-0003EXHIBIT E-1/PAGE 23 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 23 current property value or current housing cost to the owner, not the current market pricing of homes for sale in the city. These properties may be candidates for redevelopment when next they sell but are currently estimated to have low value. FIGURE 4.4: PROFILE OF CURRENT HOUSING SUPPLY, ESTIMATED AFFORDABILITY IN LAKE OSWEGO (2023) Sources: US Census, PSU Population Research Center, JOHNSON ECONOMICS Census Tables: B25004, B25032, B25063, B25075 (2021 ACS 5-yr Estimates) ▪ Most housing (58%) in Lake Oswego is found in price and rent levels affordable to those earning at least $125,000 per year, which is close to the city’s median income. There is very little housing available to those in lower income segments. Over 90% of housing is affordable to those earning at least $50,000, and only 9% affordable to those earning less than this. COMPARISON OF CURRENT HOUSING DEMAND WITH CURRENT SUPPLY A comparison of estimated current housing demand with the existing supply identifies the existing discrepancies between needs and the housing which is currently available. The estimated number of units outnumbers the number of households by roughly 865 units, indicating an average vacancy rate of 4.7%. In general, this identifies that there is currently support for more ownership housing at lower price points, while the upper end of the market is generally well supplied. This is because most housing in Lake Oswego is clustered at higher property values, which matches the community’s high average household income but leaves some households underserved. The analysis finds that the current market rates for most rental units are in the $1,300 to $2,200/month range. Therefore, this is where most of the rental unit supply is currently clustered. However, the greatest unmet need is found at the lower end of the income scale, where many current renters pay more than 30% of their income in housing costs. Rentals at the most expensive levels generally represent single family homes for rent. Figures 4.5 and 4.6 present this information in chart form, comparing the estimated number of households in given income ranges, and the supply of units currently valued (ownership) or priced (rentals) within those income ranges. The data is presented for owner and renter households. Affordable Estimated Affordable EstimatedPrice Level Units Rent Level UnitsLess than $15,000 $0k - $80k135$0 - $40070$15,000 - $24,999 $80k - $130k129$400 - $70043$25,000 - $34,999 $130k - $180k170$700 - $900106$35,000 - $49,999 $180k - $250k406$900 - $1300518$50,000 - $74,999 $250k - $350k735$1300 - $1800 1,852$75,000 - $99,999 $350k - $440k839$1800 - $2200 1,289$100,000 - $124,999 $440k - $510k753$2200 - $2500602$125,000 - $149,999 $510k - $560k924$2500 - $2800223$150,000 - $199,999 $560k - $680k 2,217 $2800 - $3400229$200,000+$680k +6,700 $3400 +40471%13,00829%5,337Income RangeOwnership HousingRental HousingShare of Total Units1%1%2%5%14%12%7%6%13%39%0%10%20%30%40%AN 24-0003EXHIBIT E-1/PAGE 24 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 24 FIGURE 4.5: COMPARISON OF OWNER HOUSEHOLD INCOME GROUPS TO ESTIMATED SUPPLY AFFORDABLE AT THOSE INCOME LEVELS IN LAKE OSWEGO (2023) Sources: PSU Population Research Center, City of Lake Oswego, Census, JOHNSON ECONOMICS FIGURE 4.6: COMPARISON OF RENTER HOUSEHOLD INCOME GROUPS TO ESTIMATED SUPPLY AFFORDABLE AT THOSE INCOME LEVELS IN LAKE OSWEGO (2023) Sources: PSU Population Research Center, City of Lake Oswego, Census, JOHNSON ECONOMICS The home value and rent segments which show a “surplus” in Figures 4.5 and 4.6 illustrate where current property values and market rent levels are in Lake Oswego. Housing prices and rent levels will tend to congregate around those levels. These levels will be too costly for some (i.e. require more than 30% in gross income) or “too affordable” for others (i.e. they have income levels that indicate they could afford more expensive housing if they chose). In general, these findings demonstrate that there are few lower-value housing opportunities for many owner households, and potential support for some less expensive types of ownership housing. There is a need for more rental units at lower rent levels (<$900/mo.). HOME SALE PRICES It is important to note that the figures presented in the prior section represent estimates of current property value or current housing cost to the owner, not the current market pricing of homes for sale in the city. For instance, a household living in a manufactured home that has been paid off over many years may have relatively low housing costs. This indicates that one owner household is living in a “lower value” unit. It does not indicate that units at this price point are available on the current market. 01,0002,0003,0004,0005,0006,0007,000# of Households/UnitsIncome CohortsOwner Households vs. Current UnitsEst. Owner HouseholdsUnits Valued at Income Level05001,0001,5002,000# of Households/UnitsIncome CohortsRenter Households vs. Current UnitsEst. Renter HouseholdsUnits Affordable at Income LevelAN 24-0003EXHIBIT E-1/PAGE 25 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 25 If this hypothetical household were to sell their home, it would sell at a higher price reflecting inflation and current achievable market prices. For this reason, many of the lower value or lower rent units found in the previous section will actually become higher-priced units when they are sold or become vacant. For reference, this section presents home sales data from 2022 to indicate housing costs for new entrants into the market (Figure 4.7). • The median sale price was $860,000. • The average (mean) sale price was $1,075,000. • The average price per square foot was $430/s.f. • The median square footage was 2,300 s.f. FIGURE 4.7: LAKE OSWEGO HOME SALES (12 MONTHS) Sources: RMLS, JOHNSON ECONOMICS • 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. 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. * * * The findings of current need form the foundation for projected future housing need, presented in the following section. 72%0%8%20%Home Sales by Unit TypeDetached HomeManuf. HomeAttached HomeCondo03434731395667663190100200300400<$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 LevelAN 24-0003EXHIBIT E-1/PAGE 26 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 26 V. FUTURE HOUSING NEEDS - 2043 (CITY OF LAKE OSWEGO) The projected future (20-year) housing profile (Figure 5.1) in the study area is based on the current housing profile (2023), multiplied by an assumed projected future household growth rate. The projected future growth is the forecasted 2043 population for the City of Lake Oswego included in the most recently adopted Coordinated Population Forecast from Metro for all cities in the region. This was adopted in 2021 and projected a very modest growth rate for Lake Oswego of well less than 1% per year.7 FIGURE 5.1: FUTURE HOUSING PROFILE (2043), LAKE OSWEGO Sources: PSU Population Research Center, Metro, Census, JOHNSON ECONOMICS LLC *Projections are applied to estimates of 2023 population, household and housing units shown in Figure 2.1 The model projects growth in the number of non-group households over 20 years of over 1,800 households, but with accompanying population growth of just 411 new residents. The difference is that the household size is expected to decrease significantly to 2.2 persons, meaning more smaller households to house the same population. (The number of households differs from the number of housing units, because the total number of housing units includes a percentage of vacancy. Projected housing unit needs are discussed below.) 7 The projected growth and housing need presented in this report conforms to the statutory approach to completing a Goal 10 needs analysis. To comply with state rules, the analysis relies on estimates of current population from the Portland State University Population Research Center (PRC) and projections of future growth from the most recent Metro distributed forecast. The forecasted growth rates from Metro are very low in comparison to rates experienced during the past 20 years and low in comparison to projected rates in other parts of the region and state. The City's population increased by about 18%, with an average annual growth rate of about 1% between 2000 and 2020 per year. During the next 20 years, forecasted growth is projected to be a total of 1%, with an average annual growth rate of just 0.05% per year. Many community members in Lake Oswego, including members of the project Task Force, as well as members of the City's Planning Commission and City Council, have questioned the accuracy of the projected growth rates, but no contrary expert testimony of the population forecast is presented. To the extent the City grows faster than the growth rates predict, the deficit of land available to accommodate housing over the long term will be more acute and the City will consume remaining buildable land more quickly, potentially running out of buildable land within several years. Per ORS 197.297, the City is required to adopt an updated HNA at least once every six years; thus, the City will have an additional opportunity in 2029 to correct the population forecast, if the projections in the 2023 HNA are notably different than observed trends. It will be important for the City to coordinate closely with Metro as it updates its growth rates and to continue to monitor actual growth patterns, as well as the supply of buildable land in the City. To the extent growth occurs at a faster rate than projected, the City will need to identify and implement strategies to address a potential shortage in available land for housing in the near term. SOURCE2023 Population (Minus Group Pop.)41,221(Est. 2022 pop. - Group Housing Pop.)PSUProjected Annual Growth Rate0.05%Metro Coordinated Forecast (2021)Metro2043 Population (Minus Group Pop.)41,629(Total 2043 Population - Group Housing Pop.)Estimated group housing population:3321.7% of total pop. (held constant from 2022)US CensusTotal Estimated 2043 Population:41,961Metro Coordinated Forecast (2021)MetroEstimated Non-Group 2043 Households:19,298Metro Coordinated Forecast (2021)MetroNew Households 2023 to 20431,816Avg. Household Size:2.16Projected 2043 pop./2043 houseoldsUS CensusTotal Housing Units:20,313Occupied Units plus VacantOccupied Housing Units:19,298(= Number of Non-Group Households)Vacant Housing Units:1,016(= Total Units - Occupied Units)Projected Market Vacancy Rate:5.0%Stabilized vacancy assumptionPROJECTED FUTURE HOUSING CONDITIONS (2023 - 2043)AN 24-0003EXHIBIT E-1/PAGE 27 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 27 PROJECTION OF FUTURE HOUSING UNIT DEMAND (2043) The profile of future housing demand was derived using the same methodology used to produce the estimate of current housing need. This estimate includes current and future households but does not include a vacancy assumption. The vacancy assumption is added in the subsequent step. Therefore, the need identified below is the total need for actual households in occupied units (19,298). The analysis considered the propensity of households at specific age and income levels to either rent or own their home, in order to derive the future need for ownership and rental housing units, and the affordable cost level of each. The projected need is for all 2043 households and therefore includes the needs of current households. The price levels presented here use the same assumptions regarding the amount of gross income applied to housing costs, from 30% for low income households down to 20% for the highest income households. The affordable price level for ownership housing assumes 30-year amortization, at an interest rate of 5%, with 10% down payment. Because of the impossibility of predicting variables such as interest rates 20 years into the future, these assumptions were kept constant from the estimation of current housing demand. Income levels and price levels are presented in 2023 dollars. Figure 5.2 presents the projected occupied future housing demand (current and new households, without vacancy) in 2043. FIGURE 5.2: PROJECTED OCCUPIED FUTURE HOUSING DEMAND (2043), LAKE OSWEGO Sources: Census, Claritas, JOHNSON ECONOMICS Price Range# of HouseholdsIncome Range% of TotalCumulative$0k - $80k364Less than $15,0002.7%2.7%Extremely$80k - $130k295$15,000 - $24,9992.2%4.9%Low Income$130k - $180k394$25,000 - $34,9992.9%7.8%Very Low$180k - $250k702$35,000 - $49,9995.2%13.0%Income$250k - $350k1,160$50,000 - $74,9998.6%21.7%Low Income<80% MFI$350k - $440k1,266$75,000 - $99,9999.4%31.1%$440k - $510k1,224$100,000 - $124,9999.1%40.2%$510k - $560k984$125,000 - $149,9997.3%47.5%$560k - $680k2,017$150,000 - $199,99915.0%62.5%$680k +5,053$200,000+37.5%100.0%Totals:13,458% of All:69.7%Rent Level# of HouseholdsIncome Range% of TotalCumulative$0 - $400385Less than $15,000 6.6% 6.6% Extremely$400 - $700423$15,000 - $24,999 7.2% 13.8% Low Income$700 - $900611$25,000 - $34,999 10.5% 24.3% Very Low$900 - $1300686$35,000 - $49,999 11.7% 36.0% Income$1300 - $1800924$50,000 - $74,999 15.8% 51.9% Low Income <80% MFI$1800 - $2200843$75,000 - $99,999 14.4% 66.3%$2200 - $2500558$100,000 - $124,999 9.6% 75.9%$2500 - $2800453$125,000 - $149,999 7.8% 83.6%$2800 - $3400299$150,000 - $199,999 5.1% 88.7%$3400 +658$200,000+11.3% 100.0%All UnitsTotals:5,840% of All: 30.3% 19,298<30% MFI<50% MFIOwnershipRental<30% MFI<50% MFIAN 24-0003EXHIBIT E-1/PAGE 28 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 28 The number of households across the income spectrum seeking a range of both ownership and rental housing is anticipated to grow. It is projected that the homeownership rate in Lake Oswego will fall somewhat over the next 20 years to under 70% from 71%. COMPARISON OF FUTURE HOUSING DEMAND TO CURRENT HOUSING INVENTORY The profile of occupied future housing demand presented above (Figure 5.2) was compared to the current housing inventory presented in the previous section to determine the total future need for new housing units by type and price range (Figure 5.3). This estimate includes a vacancy assumption. As reflected by the most recent Census data, and as is common in most communities, the vacancy rate for rental units is typically higher than that for ownership units. An average vacancy rate of 5% is assumed for the purpose of this analysis. FIGURE 5.3: PROJECTED FUTURE NEED FOR NEW HOUSING UNITS (2043), LAKE OSWEGO Sources: PSU, City of Lake Oswego, Census, Claritas, JOHNSON ECONOMICS ▪ The results show a need for 1,968 new housing units by 2043. ▪ Of the new units needed, roughly 52% are projected to be ownership units, while 48% are projected to be rental units. This represents more renters than the estimated tenure split, but it is projected that more rental units will need to be added to correct the current modest deficit of rental units, plus the future ownership rate will fall slightly. This results in a proportionately greater share of future units being rental, rather than ownership units. ▪ There is some need for new ownership housing at the middle to low-end of the pricing spectrum. But income trends suggest that the greatest demand will remain in the upper-middle price ranges ($300k to $600k). ▪ The greatest need for rental units is found at the lowest and some higher price points. Market rents are currently clustered in the $1,300 to $2,200 range in current dollars. Therefore, most units are to be found in this range. Single DetachedSingle Attached2-unit3- or 4-plex5+ Units MFRManuf. homeBoat, RV, other tempTotal Units% of UnitsTotals:708132315792301,02452.0%Percentage:69.2%12.9%3.1%5.6%9.0%0.2%0.0%100%Single DetachedSingle Attached2-unit3- or 4-plex5+ Units MFRManuf. homeBoat, RV, other tempTotal Units% of UnitsTotals:5287731485850094448.0%Percentage:5.5%9.2%7.7%15.7%61.9%0.0%0.0%100%Single DetachedSingle Attached2-unit3- or 4-plex5+ Units MFRManuf. homeBoat, RV, other tempTotal Units% of UnitsTotals:760 220 104 205 677301,968100%Percentage:38.6% 11.2% 5.3% 10.4% 34.4% 0.1% 0.0%100%Unit Type:OWNERSHIP HOUSINGMulti-FamilyUnit Type:RENTAL HOUSINGMulti-FamilyUnit Type:TOTAL HOUSING UNITSMulti-FamilyAN 24-0003EXHIBIT E-1/PAGE 29 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 29 ▪ There is insufficient rental housing for the lowest income households making $35,000 or less or detached single-family homes for rent. Many households will need rent levels lower than the market rate in order to maintain housing costs that are affordable (see more detail below). Needed Unit Types The mix of needed unit types shown in Figure 5.3 reflects both past trends and anticipated future trends. Single detached units are expected to continue to make up a large share of new housing development for ownership households over the next 20 years. However, an increasing share of new needed units is anticipated to be attached housing types to accommodate renters and first-time home buyers. ▪ 39% of the new units are projected to be single detached homes or new manufactured homes, while 61% is projected to be some form of attached housing. ▪ Single attached units (townhomes on individual lots) are projected to meet roughly 11% of future need. These are defined as units on separate tax lots, attached by a wall but separately metered, the most common example being townhome units. ▪ Duplex, triplex, and four-plex units are projected to represent a growing 16% of the total need, reflecting new state rules for middle housing zoning. Duplex units would include a detached single-family home with an accessory dwelling unit on the same lot, or with a separate unit in the home (for instance, a rental basement unit.) ▪ 34% of all needed units are projected to be multi-family in structures of 5+ attached units. ▪ Less than 1% of new needed units are projected to be manufactured home units, which meet the needs of some low-income households for both ownership and rental. ▪ Of ownership units, 69% are projected to be single detached homes or manufactured homes, and 31% are projected to be attached forms. ▪ Nearly all new rental units are projected to be found in new attached buildings, with 62% projected in rental properties of 5 or more units, and 33% in other attached housing forms. Only 5.5% of new rental units are projected to be detached homes, including manufactured homes. Group Housing Needs: There is an estimated population of 332 individuals living in group housing in 2043, based on an assumption that the share of the population living in group quarters (1.7%) remains stable from current levels. This would represent an increase of just a few people living in group quarters, as forecasted population growth is modest. In Lake Oswego, the Census estimates that nearly all of Lake Oswego’s group housing population lives in nursing facilities. NEEDED AFFORDABILITY LEVELS Figure 5.4 presents the estimated need for net new housing units by major income segment, based on the projected demographics of new households to the market area. The needed affordability levels presented here are based on current dollars. Figure 5.4 also discusses the housing types typically attainable by residents at these income levels. Note that Figure 5.4 presents the official state measure of “low income” used to set rent and income limits for various affordable housing programs. This estimate via OHCS and HUD are based on an estimate of median income in Clackamas County of $106k in 2022, based on a family of four, while the median income in Lake Oswego was a higher $123k. For this analysis, the estimated Median Family Income (MFI) for a family of four ($106k) was adjusted to match the average household size in Lake Oswego of 2.4 persons ($89.5k) so that the estimates presented below reflect the city average. AN 24-0003EXHIBIT E-1/PAGE 30 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 30 Figure 5.4 presents some of the types of housing product that might commonly serve households in these income ranges. Many households below 60% MFI or even higher income will require some sort of subsidized affordable unit or voucher to find housing affordability. Those at 60% to 100% MFI may find housing in older and substandard market rate rentals, manufactured homes, and middle housing types. FIGURE 5.4: PROJECTED NEED FOR NEW HOUSING AT DIFFERENT INCOME LEVELS, LAKE OSWEGO Sources: HUD, Census, Claritas, JOHNSON ECONOMICS ▪ Figure 5.3 presents the net NEW housing unit need over the next 20 years. However, there is also a current need for more affordable units. For all households, current and new, to pay 30% or less of their income towards housing in 2043, more affordable rental units (subsidized and non-subsidized) would be required. This indicates that some of the current supply, while it shows up as existing available housing, would need to become less expensive to meet the needs of current households. ▪ There is a finding of new need at the lowest end of the rental spectrum ($900 and less). ▪ The projection of future ownership units finds that the supply at the lowest end of the spectrum will be insufficient due to the prevalence of newer homes, many of which will be detached houses. (This reflects the estimated value of the total housing stock, and not necessarily the average pricing for housing currently for sale.) Ownership options and lower and middle price points are often manufactured homes, townhomes, condos, and small detached homes, often on smaller lots. Subsidized Affordability Housing Need As alluded to in Figure 5.4, some low-income households, and particularly the lowest income households, typically need some sort of subsidized affordable housing in order to find rents affordable given their modest resources and other household spending needs. Figure 5.5 below presents estimates of need at key low-income affordability levels in 2022 and in 2043. The table uses HUD definitions of Extremely Low, Very Low, and Low Income, as well as 60% MFI which is a common affordability level for tax credit properties. ▪ There is an existing and on-going need at these levels, based on income levels specified by OHCS for Clackamas County. An estimated 12% of households qualify as at least “low income” or lower on the income scale, while Income Level (Rounded)Owner UnitsRenter UnitsTotalShareCommon Housing ProductExtremely Low Inc.< 30% MFI< $27,5005614920510%Government-subsidized; Voucher; Shelter; TransitionalVery Low Income30% - 60% MFI$27.5k - $55k9522131716%Aging/substandard rentals; Government-subsidized; Voucher; Manufactured homesLow Income60% - 80% MFI$55k - $73k7112019010%Aging apartments; Government-subsidized; Plexes; Aging single-detached; Small homesMiddle Income80% - 120% MFI$73k - $110k13417230616%Single-detached homes; Townhomes; Condominiums; Newer apartmentsUpper Income> 120% MFI> $110,00066928295148%Single-detached homes; Townhomes; Condominiums; New apartmentsTOTAL:1,0249441,968100%Household Income SegmentAN 24-0003EXHIBIT E-1/PAGE 31 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 31 9% of households qualify as “extremely low income”. (Again, this is based on the official state measure of Clackamas County median income for application to HUD and other subsidized affordable housing programs, which is relatively high.) FIGURE 5.5: PROJECTED NEED FOR HOUSING AFFORDABLE AT LOW INCOME LEVELS, LAKE OSWEGO Sources: OHCS, Claritas, JOHNSON ECONOMICS, HUD * Income levels are based on OHCS guidelines for avg. Lake Oswego household size of 2.4 persons. ▪ Typically, only rent-subsidized affordable properties can accommodate these extremely-low-income households and many other low-income households at “affordable” housing cost levels. Often the lowest income households must be served by housing choice vouchers and public housing. Tax credit projects are more likely to serve those earning 50% to 60% of MFI. Housing Need for People Experiencing Homelessness: Given the low forecasted population growth, Lake Oswego is assumed to maintain a fairly stable number of unhoused individuals and households over this period. Unhoused individuals and families may require a mixture of shelter types depending on individual circumstances, ranging from emergency shelter to transitional housing to permanent subsidized housing. This population is a subset of the extremely-low-income population shown in prior figures. Agricultural Worker Housing: There is currently no housing dedicated to this population in Lake Oswego. Based on the assumption that this type of housing will maintain its current representation in the local housing stock, this indicates that there will likely be no new need for housing dedicated specifically for agricultural workers over the planning period. However, this population may also be served by other available affordable units. # of Units % of All # of Units % of All # of Units % of AllExtremely Low Inc.≤ 30% MFI ≤$26,8001,4929%1,6979% 205 10%Very Low Income30% - 50% MFI≤$44,7001,5609%1,7719% 212 11%Low Income50% - 80% MFI≤$71,6002,07512%2,37012% 295 15%TOTAL:чϴϬйD&/ ч$71,6005,12729%5,83930%71236%Tax Credit≤ 60% MFI ≤$53,7003,96223%4,48323% 521 26%Income Level*NEW Need (20-Year)Affordablilty LevelCurrent Need (2022)Future Need (2043)AN 24-0003EXHIBIT E-1/PAGE 32 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 32 VI. RECONCILIATION OF FUTURE NEED (2043) & LAND SUPPLY This section summarizes the results of the Buildable Lands Inventory (BLI). The BLI is presented in detail in an accompanying memo to this report. The BLI was conducted for land within the city limits, assessing vacant and partially vacant lands based on residential zoning, and environmental and other constraints that may impact development. The following table (Figure 6.1) presents the estimated new unit capacity of the buildable lands identified in the City of Lake Oswego and within the UGB. Residential zones, as well as mixed-use zones that can accommodate some residential uses, were included in the inventory, and are broken into broad categories based on housing density. FIGURE 6.1: ESTIMATED BUILDABLE LANDS CAPACITY BY ACREAGE AND NO. OF UNITS (2023) Source: MIG • There is a total estimated remaining capacity of 1,327 units of different types within the study area. • The estimated remaining capacity for low density housing units remains the greatest share at capacity for 655 units, or 49% of the total. • There is a total estimated capacity for 195 middle housing units, including future infill in low density zones. This is roughly 15% of the total unit capacity. ACRESLand TypeGross AcresConstrained Area (Acres)Unconstrained Area (Acres)Developable AcresUnit CapacityResidential3,5308022,784174705Mixed Use4909639710146Non-Residential17221150--Public/Other3,1471,2741,899--Acres Total:7,3392,1935,230185851UNITSHousing TypeSingle Family UnitsMiddle Housing UnitsMulti-Family UnitsUnit CapacityResidential6483917705Mixed Use523118146Non-Residential----Public/Other----Vacant and Partially Vacant Total:65362135851Additional CapacityApproved Developments223341366Additional Middle Housing Infill-110-110TOTAL HOUSING UNIT CAPACITY:6551954761,327ACREAGEUNIT TYPEAN 24-0003EXHIBIT E-1/PAGE 33 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 33 • There is a total estimated capacity for 476 housing units in higher density multi-dwelling properties. This is roughly 36% of the total unit capacity. • 28% of the total capacity (366 units) is found in units already approved for development as of the time of this analysis. Additional infill opportunities identified on large-lot residential and some commercial lands account for an estimated 8% of capacity. See the attached Appendix for full Buildable Land Inventory details and methodology. The following table summarizes the forecasted future unit need for Lake Oswego. These are the summarized results from Section V of this report, presented here for reference. FIGURE 6.2: SUMMARY OF FORECASTED FUTURE UNIT NEED (2043) Sources: PSU Population Research Center, Census, Johnson Economics Comparison of Housing Need and Capacity There is a total forecasted need for nearly 2,000 units over the next 20 years based on the forecasted growth rate. This is greater than the estimated total capacity of 1,327 units. Figure 6.3 below presents a comparison of the BLI capacity for new housing units, compared to the estimate for new unit need by 2043. It breaks down need by general zoning category (LDR, MDR, HDR). • The projected demand for low-density housing types is higher than the remaining capacity by an estimated 192 units, or the equivalent of 38 acres of low density residential land. • The results find a deficit for medium-density housing of 249 units, or 31 acres. • The projected demand for high-density housing types is higher than the remaining capacity by an estimated 201 units, or the equivalent of 17 acres of high density residential land. Single DetachedSingle Attached2-unit3- or 4-plex5+ Units MFRManuf. homeBoat, RV, other tempTotal Units% of UnitsTotals:760 220 104 205 677301,968100%Percentage:38.6% 11.2% 5.3% 10.4% 34.4% 0.1% 0.0%100%TOTAL HOUSING UNITSMulti-FamilyUnit Type:7602203096773Single Detached HomesTownhomes2 - 4 Plex Units5 or More UnitsManufactured HomesHousing UnitsHousing Unit TypeNew Units NeededAN 24-0003EXHIBIT E-1/PAGE 34 OF 55 CITY OF LAKE OSWEGO | HOUSING CAPACITY ANALYSIS PAGE 34 • These findings assume that under newly adopted state rules, 3% of available buildable parcels in the LDR zone will be used for the various types of attached units (single-family attached townhomes, duplex – fourplex). FIGURE 6.3: COMPARISON OF FORECASTED FUTURE LAND NEED (2043) WITH AVAILABLE CAPACITY Sources: MIG, Johnson Economics • These findings point to a need for additional residential land in a range of zones over the 20-year planning period. Available inventory may meet an estimated 67% of total housing needs over the first half of the planning period, but a deficit is projected in the long run. • A range of potential housing policies and strategies will be considered in future development of a Housing Production Strategy by the City, including the ability of future plan areas to meet the need for different types of housing during the 20-year planning period. WITHIN CITY LIMITSUnitsAvg. Units/ac.AcresLow-Density Single-family detached; Some SF attached & plex655847(192)5(38)Med-DensitySF attached; Manufact. home; 2-4 plexes195444(249)8(31)High-DensityMulti-family apartments476677(201)12(17)TOTALS:1,3271,968(642)7(86)SUPPLY DEMANDGrowth Rate (0.05%)New Unit Need (2043)Zone & Plan CategoryTypical Housing TypeBuildable Land Inventory - Housing Unit CapacitySurplus or (Deficit)AN 24-0003EXHIBIT E-1/PAGE 35 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 35 APPENDIX A: LAKE OSWEGO RESIDENTIAL BUILDABLE LANDS INVENTORY Methodology and Results | July 18, 2023 Introduction This memorandum provides a Residential Buildable Lands Inventory (BLI) for the City of Lake Oswego, which will support the creation of a Housing Needs Analysis (HNA) for the City. The methodology for this BLI is based on the 2018 Metro BLI1 with further refinements through review and discussions with City staff. The BLI is conducted in the following steps: • Step 1: Study Area and Land Classification. This step identifies the land in the City that is available for residential uses. • Step 2: Constraints to Development. This step identifies constraints such as natural resources, steep slopes, and utility easements that limit development. • Step 3: Development Status. This step assigns a “Development Status” of vacant, partially vacant, or developed tax lots in the inventory. • Step 4: Net Buildable Area and Unit Capacity. This step removes land for future rights-of-way and other land needs to provide a net number of acres for each City zoning designation, then estimates number of units and mix of unit type (single detached, multi-dwelling, middle housing) expected based on the results of Step 4. Step 1: Study Area and Land Classification Study Area The study area for this analysis is shown in Figure 1. The study area includes land within the Lake Oswego City Limits.2 1 https://www.oregonmetro.gov/sites/default/files/2018/07/03/UGR_Appendix2_Buildable_Lands_Inventory.pdf 2 A prior version of this Buildable Lands Inventory included unannexed land outside of the Lake Oswego City Limits which has a City Comprehensive Plan designation. This land has been removed from the study area following AN 24-0003EXHIBIT E-1/PAGE 36 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 36 Figure 1. Study Area Map Land Classification Parcels in the inventory are categorized based on their Comprehensive Plan and Zoning designations, property ownership, and other characteristics available in City/regional datasets. These classifications are described in Table 1 and shown in Figure 4. Comprehensive Plan and Zoning Districts The City of Lake Oswego’s Comprehensive Plan Districts are described in Table 1. This is the primary basis for classifying lands into the categories of Residential, Mixed-Use, Nonresidential, and Publicly Owned/Other. Alignment with Zoning Districts are shown in the “Implementing Zones” column. Zoning discussion with the City’s Housing Production Strategy Task Force and Oregon Department of Land Conservation and Development (DLCD) staff. AN 24-0003EXHIBIT E-1/PAGE 37 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 37 and Comprehensive Plan map designations are shown in Figures 2 and 3, respectively. Overarching categories of land and how they are considered in this inventory are described on the pages following those figures. Table 1. City of Lake Oswego Comprehensive Plan and Zoning Districts Comprehensive Plan Designations Implementing Zones Zone Purpose Residential Low Density R-15 To provide lands for single-family residential development with densities ranging from two to five dwelling units per gross acre, and to provide lands for middle housing development. R-10 R-7.5 Residential Medium Density R-5 To provide lands for single- and multi-family residential development with densities ranging from seven to eight dwelling units per gross acre, and to provide lands for middle housing development. R-DD Zone (1) The purpose of the R-DD zone is to assure that both single-family homes and middle housing are protected from noise, light, glare and reduction in privacy to the maximum extent possible during the area’s transition to higher density residential use, to facilitate good architectural design and site planning which maintains residential choices of unit size, cost and other amenities and supports the economic feasibility of new construction and development, and to assure protection and compatibility of all land uses, including commercial, residential, park, open space and historic sites. (2) The R-DD zone is intended for use in low density residential districts which are undergoing transition to increased densities, and which have scenic, historic, natural or residential features which should be preserved and integrated with new development. R-6 The FAN R-6 zone is intended to implement the land use policies of the First Addition Neighborhood Plan. The purpose of this zone is to ensure the design quality of proposed development in the neighborhood by: (1) Ensuring that proposed building designs are visually compatible with the character of existing structures, maintain adequate light and air between structures, and complement the neighborhood’s architectural character. (2) Minimizing the visual impact of garages from the street, and to continue established alley uses and functions such as access to garages, off-street parking and trash removal. (3) Encouraging compatible and sensitive remodeling and renovation of existing residences. (4) Preserving the small-town character of the existing streetscape by allowing single-family and middle housing development that is human scale and pedestrian oriented. (5) Enhancing the natural environment of the neighborhood as one of the dominant characteristics. AN 24-0003EXHIBIT E-1/PAGE 38 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 38 Comprehensive Plan Designations Implementing Zones Zone Purpose (6) Preserving FAN’s historical and architectural character by encouraging infill development that is compatible in design character to landmark structures on abutting lots. Residential High Density R-3 To provide lands for single- and multi-family residential development with densities of at least 12 dwelling units per gross acre, and to provide lands for middle housing development. R-2 R-0 R-W Commercial Neighborhood Commercial (NC) To provide land near residential areas for lower intensity commercial activities that primarily serve the surrounding neighborhood, smaller public facility uses, and residential uses. General Commercial (GC) To provide lands for a mix of higher intensity commercial activities supplying a broad range of goods and services to a market area approximately equal to the planning area identified in the Comprehensive Plan, as well as residential, public facilities, and cultural uses. Highway Commercial (HC) To provide lands for commercial activities which meet the needs of the traveling public as well as other highway-oriented retail uses which require access to a market area larger than the general commercial zone. This zone is not intended for regional shopping centers. Mixed Commerce (MC) To provide for a mix of uses requiring highway access and which provide a strong visual identity. Intended uses include local and regional convention type facilities, office uses and supporting retail uses. Office Campus (OC) To provide lands for major concentrations of regionally-oriented offices and employment opportunities for a market area larger than the planning area. Campus Research and Development (CR&D) To provide a mix of clean, employee-intensive industries, offices and high-density housing with associated services and retail commercial uses in locations supportive of mass transit and the regional transportation network. Campus Institutional (CI) The purpose of the CI zone is to provide zoning regulations for the Marylhurst Campus in order to provide land where permitted or conditional uses can be provided for in a unified campus setting. East End General Commercial (EC) To implement Comprehensive Plan policies applicable to the Downtown Town Center and to provide land for a mix of higher intensity commercial, residential, and cultural uses and public facilities that support a traditional downtown commercial core. Industrial Industrial Zone (I) The purpose of the industrial zone is to provide land where general industrial development can be located. Industrial Park Zone (IP) To provide lands where primarily light industrial and employment uses can occur in a campus-like setting under controls to make activities mutually compatible and also compatible with existing uses bordering the zone. Mixed Use West Lake Grove Zones (Townhome Residential - WLG R-2.5, To provide zoning for townhome residential, commercial, and mixed-use development in the West Lake Grove District that accommodates lower intensity commercial, public facility and residential uses; and to provide a transition between the Lake Grove Village Center and adjacent residential neighborhoods. AN 24-0003EXHIBIT E-1/PAGE 39 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 39 Comprehensive Plan Designations Implementing Zones Zone Purpose Residential Mixed Use - WLG RMU, and Office-Commercial - WLG OC) These districts are intended to supply services to a market area that is comprised of adjacent neighborhoods. Foothills Mixed Use (FMU) To foster a mix of housing, retail and office uses in a central location proximate to downtown and along the Willamette River. Commercial uses are allowed but are not intended to dominate the character of the area. Retail uses are limited in size to complement the downtown core and facilitate the development of neighborhood-focused retail served by transit. The design and development standards are intended to create a unique Lake Oswego community. The emphasis of the zone is on residentially related uses. The Foothills Mixed Use code provisions are intended to: i. Connect the FMU area with downtown, Tryon Creek, Old Town, the Willamette River and Oswego Lake; ii. Create a sustainable walkable neighborhood that possesses a thriving, active, and comfortable pedestrian environment; iii. Create visual interest through varied building heights that are urban in character, yet include detailed amenities at the ground floor that enhance the pedestrian environment; iv. Create high quality buildings, of long lasting materials, to promote the permanence of the community; v. Allow for a mix of residential uses, with urban density, and neighborhood scale retail and office development; and vi. Establish a standard of design that reinforces Lake Oswego’s sense of place. Public Use Public Functions (PF) The Public Functions (PF) zone is intended to specify appropriate land uses and development standards for public uses, such as government services, education, and similar activities. Park and Natural Area (PNA) Park and Natural Area (PNA) The purposes of the Park and Natural Area (PNA) zone are to: i. Protect, preserve, conserve and enhance natural areas, greenways and parks; ii. Permit a wide range of passive and active recreational uses, and accessory uses, on property for the future use and enjoyment of the City and its residents; iii. Implement Statewide Planning Goal 8, Recreational Needs; and iv. Establish a master plan process for park planning and development. AN 24-0003EXHIBIT E-1/PAGE 40 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 40 Figure 2. City of Lake Oswego Zoning Designations AN 24-0003EXHIBIT E-1/PAGE 41 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 41 Figure 3. City of Lake Oswego Comprehensive Plan Designations Residential Land Residential Land is intended to meet the City’s need for residential uses of various types. It includes land within the R-0, R-2, R-3, R-5, R-6, R-7.5, R-10, R-15, R-W, and WLG R-2.5 Comprehensive Plan designations, unless it meets the criteria for “Publicly Owned/Other” land. Mixed Use Land Mixed Use land can be developed to meet the City’s residential and employment needs – sometimes within the same structure. It includes land within the WLG RMU, CI, CR&D, EC, FMU, GC, HC, NC, OC, and WLG OC Comprehensive Plan designations unless it meets the criteria for “Publicly Owned/Other” land. More information about the assumptions for future housing development in these areas is found later in this report. Nonresidential Land Nonresidential land includes employment land and “Publicly Owned/Other” land, as follows. This land is not included in the inventory. AN 24-0003EXHIBIT E-1/PAGE 42 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 42 Employment Land Employment Land is intended to meet the City’s employment needs. It includes land within the MC and IP Comprehensive Plan designations unless it meets the criteria for “Public/Other” land. Publicly Owned/Other This category of land includes the SP, PF, and PNA designations, as well as land in the following categories: • Land in another Comprehensive Plan designation under City, County, State, Federal, or Special District Ownership • Land commonly held in Homeowners’ Associations (HOA) common ownership, such as required open space. • Religious or fraternal properties (with the notable exception of Marylhurst University, which is accounted for in a separate line item). • Private driveways and ROW As noted above, properties in this category are generally not included in the inventory. However, some specific parcels in this category may be included in other classifications if information is available to suggest that they have development capacity for residential or employment uses. AN 24-0003EXHIBIT E-1/PAGE 43 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 43 Figure 4.BLI Land Classification AN 24-0003EXHIBIT E-1/PAGE 44 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 44 Step 2: Constraints to Development One of the primary tasks of this BLI is to identify land that is constrained by one or more of the following physical constraints. Constraints may overlap one another spatially – in this case the more restrictive constraint applies. Assumptions for these constraints are listed below – they have been discussed with City staff but are subject to further refinement, as needed. Constraints are described in Table 2 and shown on Figure 5. Table 2. Development Constraints Constraint Description Developable Portion Steep Slopes Slopes greater than 25%. Density transfer resulting in the construction of 1-2 dwelling units allowed. 5% Developable Water Bodies Includes lakes, streams, other areas of open water 0% Developable FEMA Flood Hazard Areas Includes Zones A, AE, and X. Density transfer resulting in the construction of 1-2 dwelling units allowed. 5% Developable Greenway Management Overlay District Protects land along the Willamette River. Permitted uses include single-family dwellings and accessory structures associated with such dwellings. 25% Developable Sensitive Lands Includes Resource Protection (Streams and Wetlands; RP), Resource Conservation (Tree Groves; RC), and Habitat Benefit Areas (Tree Groves; HBA). RP and RC areas are tightly regulated, while HBAs are areas with optional resource protection incentives rather than regulations. RP – Density transfer possible. RC - Mostly applies to public land and open space tracts, which are not developable (PF and PNA zones, OS tracts in private developments, typically). HBA - Incentives, rather than regulations, are applied to protect natural resources. Usually does not limit development beyond a modest reduction. RP – 50% Developable RC – 0% Developable HBA – 95% Developable AN 24-0003EXHIBIT E-1/PAGE 45 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 45 Figure 5. Constraints to Development AN 24-0003EXHIBIT E-1/PAGE 46 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 46 The BLI includes the following information for each tax lot in the study area based on the location of constraints. • Acres – Total size of the tax lot • Constrained Acres – Acreage of constrained areas, per Table 2 • Unconstrained Acres – Total acres minus Constrained Acres The following table shows gross acres of land in each primary land classification in the Study Area. Table 2. Constrained and Unconstrained Acres by Land Type Land Type Total Acres Constrained Acres Unconstrained Acres Residential 3,530 802 2,784 Mixed Use 490 96 397 Non-Residential 172 21 150 Publicly Owned/Other 3,147 1,274 1,899 Total 7,339 2,193 5,230 Step 3: Development Status Each tax lot in the study area is categorized as Vacant, Partially Vacant, or Developed. The following data is used to determine development capacity of Study Area tax lots: • Tax assessor data, including Property Land Use Code, Improvement Value, and Land Value; • City inventory of outdoor areas, used in identifying public and commonly-held open spaces such as public facilities, parks and Homeowners Association-owned open spaces; • Metro Vacant Land Inventory derived annually from aerial photo information; • Review of recent aerial imagery; and • Discussion and review with City staff and the Housing Production Strategy (HPS) Task Force. Generally, vacant tax lots are assumed to have development capacity equal to the area unconstrained by natural resources, minus additional set-asides for future Right-of-Way and infrastructure (see Step 4). Developed parcels will be subject to further screening for redevelopment potential, described in later steps. Partially Vacant properties have an existing home but are large enough to subdivide based on criteria such as parcel size and allowable lot size, as described in this section. Residential Development Status • Vacant. Land that has a building improvement value of less than $20,000, as indicated by assessor data. All land outside of constrained areas is included in the developable area for these properties. • Vacant – Platted. Vacant land that is part of a platted but unbuilt subdivision is included in this category. Platted lots are assumed to contain one unit each unless other information is available (see Step 4). “Developable Acres” is shown as “0” because they are treated separately from other acreage in the inventory. AN 24-0003EXHIBIT E-1/PAGE 47 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 47 • Partially Vacant. This designation is intended for parcels with an existing single-detached home that are large enough to further subdivide or develop to provide additional residential units. While middle housing and townhomes are allowed in many zones, this analysis uses the minimum lot size required for single-detached dwellings as the basis for the Partially Vacant designation, as follows: o Parcels greater than 5 times the minimum lot size: These lots are categorized as “Partially Vacant.” ¼ acre is assumed to remain for the existing home and the remaining unconstrained acreage is assumed to be developable. o Parcels between 2 and 5 times the minimum lot size: For lots with a building value below $200,000, ¼ acre is assumed to remain for the existing home and the remaining unconstrained acreage is assumed to be developable. o Parcels less than 2 times the minimum lot size: These lots are categorized as “Developed” if improvement value is present or aerial photo review shows development. • Developed. All other residential land is designated Developed and has no developable area. Mixed Use Development Status Mixed Use development is subject to the same criteria as Residential Land. However, an additional screen is used to determine the likelihood of redevelopment of mixed-use parcels in Step 4, and assumptions about the residential/employment mix (see Error! Reference source not found.3) are applied. Mixed Use Residential Proportion Mixed use designations are assumed to develop partly with residential uses and partly with non-residential uses, per the following table. Table 3. Residential Portions of Mixed Use Tax Lots Mixed Use Designation Residential Portion Nonresidential Portion Notes West Lake Grove Residential Mixed Use (WLG RMU) 50% 50% Townhomes only allowed with office use in the same building West Lake Grove Office-Commercial (WLG OC) 25% 75% Residential limited to Boones Ferry Staging site, per LOC 50.03.003.2.d. Residential limited to Boones Ferry Staging Site. Percentage based on the size of this site in relation to the total size of district (see LOC 50.03.003.2.d for geography). Campus Institutional (CI) 50% 50% Multifamily development is limited to Subarea I of the Marylhurst Campus Zone. Campus Research & Development (CR&D) 30% 70% Assumption based on trends in this area East End Commercial (EC) 80% 20% Foothills Mixed Use (FMU) 80% 20% Most similar to EC in terms of residential/non-residential mix General Commercial (GC) 30% 70% AN 24-0003EXHIBIT E-1/PAGE 48 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 48 Highway Commercial (HC) 10% 90% Neighborhood Commercial (NC) 50% 50% Office Campus (OC) 30% 70% Summary The following table lists the number of tax lots, total and constrained acreage, and developable area by land type. A map summarizing development status is shown in Figure 6. Table 4. Developable Area of Residential and Mixed Use Tax Lots Land Type Gross Acres Constrained Area (Acres) Unconstrained Area (Acres) Developable Acres Residential 3,530 802 2,784 175 Mixed Use 490 96 397 14 Non-Residential 172 21 150 - Public/Other 3,147 1,274 1,899 - Total 7,339 2,193 5,230 189 AN 24-0003EXHIBIT E-1/PAGE 49 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 49 Figure 6. Development Status of Residential and Mixed Use Land AN 24-0003EXHIBIT E-1/PAGE 50 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 50 Step 4: Net Buildable Area and Unit Capacity This step of the BLI establishes the net buildable area of residential land in the Study Area by removing land needed for future right-of-way and other infrastructure set-asides, and by subtracting the non-residential portions of mixed-use zones. This step also accounts for platted subdivisions and other development with known approvals. Right of Way and Other Set-Asides When vacant land develops, land for roads, infrastructure, open space, and other needs reduce the gross available acres into a net developable acreage. The BLI uses the following assumptions to calculate net developable acreage for each parcel. • Residential Land: 20% of vacant properties, 0% of partially vacant properties • Mixed Use Land: 20% of vacant properties, 0% of partially vacant properties Assumed Density and Housing Mix Table 4 shows the assumed density for various zoning designations in the City of Lake Oswego. This information is based on the minimum lot sizes, likely densities, and staff assumptions based on recent projects and comparable zones, and parcel-by-parcel analysis. The proportion of units expected to be developed as Single Family Detached, Middle Housing, and Multi-Family are also shown. Table 4. Unit Density and Mix Assumptions Zoning Designation Notes Density % Single Family Detached % Middle Housing % Multi-Family Residential-Low Density Zones R-15 Min 15,000 sf lot area. 2.9 DU/AC net 2.9 DU/AC net 95% 5% - R-10 Min 10,000 sf lot area. 4.3 du/ac net. 4.3 du/ac net 95% 5% - R-7.5 Min 7,500 sf lot area 5.8 du/ac net 5.8 du/ac 95% 5% - Residential-Medium Density Zones R-5 7-8 units per gross acre, per code. 5,000 sf min lot size for single-family. 1,500 for townhouse. ~8 du/ac 90% 5% 5% R-DD Buffer zone. 21 du/ac theoretically possible. ~8 du/ac 95% 5% - R-6 First Addition Neighborhood (FAN) zone 6,000 sf lot area for Single-Family. 1,500 for townhouse. ~7 du/ac 95% 5% - Residential-High Density Zones AN 24-0003EXHIBIT E-1/PAGE 51 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 51 Zoning Designation Notes Density % Single Family Detached % Middle Housing % Multi-Family R-3 At least 12 du/ac. (3,375 min per dwelling, or 12.9 du/ac). Townhomes up to 29 du/ac ~12 du/ac 70% 10% 20% R-2 Min 12 du/ac 12 du/ac 60% 10% 30% R-0 Min 20 du/ac 20 du/ac 60% 10% 30% R-W ~12 du/ac 60% 10% 30% Mixed Use Zones West Lake Grove Residential Mixed Use (WLG RMU) Table 50.03.002-2 notes “R-5 density or greater” ~5 du/ac - 50% 50% West Lake Grove Office-Commercial (WLG OC) Table 50.03.002-2 notes “R-5 density or greater” 35 du/ac expected in BFR Staging Site, nothing in other areas - 20% 80% Campus Institutional (CI) Table 50.03.002-2 notes “R-5 density or greater.” Must have commercial on ground floor. Generally applies to Marylhurst University, which is treated separately. - - 100% Campus Research & Development (CR&D) Table 50.03.002-2 notes “R-5 density or greater” 54 du/ac for projects that include residential (~30% of the district, as above) based on LU 19-0041 - - 100% East End Commercial (EC) Table 50.03.002-2 notes “R-5 density or greater.” Must have commercial on ground floor. ~56 du/ac - - 100% Foothills Mixed Use (FMU) Table 50.03.002-2 notes “R-5 density or greater” ~56 du/ac - - 100% General Commercial (GC) Table 50.03.002-2 notes “R-5 density or greater.” Must have commercial on ground floor. Residential not allowed “In the GC-zoned area in the vicinity of Jean Way and Boones Ferry Road.” ~27 du/ac based on Mercantile project (LU 18-0026) - 25% 75% Highway Commercial (HC) Table 50.03.002-2 notes “R-5 density or greater” 8 du/ac (or R-5 density) for the 10% that may develop as residential - - 100% AN 24-0003EXHIBIT E-1/PAGE 52 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 52 Zoning Designation Notes Density % Single Family Detached % Middle Housing % Multi-Family Neighborhood Commercial (NC) Table 50.03.002-2 notes “R-5 density or greater.” Must have commercial on ground floor. 67 du/ac for the 50% that may develop as residential (based on LU 07-0031) - 50% 50% Office Campus (OC) Table 50.03.002-2 notes “R-5 density or greater” 21 du/ac for the 50% that may develop as residential (based on Galewood Commons Apartments) - - 100% Summary of Vacant and Partially Vacant Land Table 5 summarizes net residential acreage for both residential and mixed-use land in the study area, and Table 6 shows the breakdown of capacity by zoning designation. Land with a known development approval has been removed and is accounted for in a later step. Table 5. Capacity of Residential and Mixed Use Land Land Type Developable Acres Unit Capacity Residential 174 705 Mixed Use 10 146 Non-Residential - - Public/Other - - Total 185 851 Table 6. Unit Capacity by Zoning Designation Land Type Unit Capacity Land Type Unit Capacity Residential Land 705 Mixed Use Land 146 EC/R-0 5 CR&D 14 R-0 2 EC 67 R-10 241 GC 12 R-10 Comp Plan 14 NC 23 R-15 131 NC/R-0 9 R-3 28 OC/R-3 5 R-5 116 R-0 8 R-7.5 149 WLG-OC 7 R-7.5 Comp Plan 3 WLG-R RMU 1 R-DD 12 R-W 1 WLG-R 2.5 3 Total Capacity: 851 Units AN 24-0003EXHIBIT E-1/PAGE 53 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 53 Table 7.Mix of Unit Capacity on Vacant and Partially Vacant Land Land Type Unit Capacity Single Family Units Middle Housing Units Multi-Family Units Residential 705 648 39 17 Mixed Use 146 5 23 118 Non-Residential - - - - Public/Other - - - - Total 851 653 62 136 Additional Capacity: In addition to the capacity listed above, the following categories of additional residential unit capacity have been identified. These are listed in Table 7, along with the expected mix of housing units. • Approved Development. Several parcels have land use approvals and/or are actively undergoing development. Where information about the unit capacity of these approvals is known, that information is used as future capacity (rather than an average assumption based on the zoning designation). These approvals are listed in Table 8. • Additional Middle Housing Capacity: Due to the City’s middle housing legislation, most single family lots can be converted to duplexes or other middle housing types. The number of new units expected to be created through this process in the planning horizon is estimated at 1.5% of developed lots with single-detached dwellings outside of PUDs/easements. This totals 110 Units3. • Redevelopment of Commercial Land and Town Centers: An initial “strike price” analysis4 found very few properties that appear to be good candidates for redevelopment at $30/sf. Value per square foot for many properties along Kruse Way and in Town Centers is generally $50/sf or greater. There may be some opportunity to utilize parking areas for new residential uses, depending on the City’s development code and many other factors, though additional commercial infill is also a possibility. For the purposes of this BLI, no redevelopment capacity is assumed. 3 A previous version of this analysis assumed 3% of all single detached units, regardless of whether they were located in a PUD. Feedback from stakeholders and DLCD was that this infill assumption seemed high and was unrealistic due to the prevalence of CC&Rs in Lake Oswego. 4 “Strike Price” is a measure of land and building value per square foot at which a developer is assumed to be able to profitably redevelop a piece of property. The 2018 Metro BLI used a strike price of $12/sf for suburban jurisdictions – this analysis examine a more aggressive $30/sf and still found very few candidates for redevelopment. AN 24-0003EXHIBIT E-1/PAGE 54 OF 55 Lake Oswego Housing Needs Analysis July 18, 2023 APPENDIX A: Buildable Lands Inventory Page 54 Table 8. Parcels with Approved Development and Assumed Capacity Land Type Taxlot(s) Total Unit Capacity Single Family Units Middle Housing Units Multi-Family Units Habitat for Humanity Townhomes [Link] 21E18AB00400 21E18AB00300 21E18AB00200 21E18AB00100 21E18AA00400 23 0 23 0 5400 Meadows [Link] 21E07BA00900 160 0 0 160 Twin Fir Road 21E08AB02100 21E08AB02000 2 2 0 0 The Boulder [Link] 21E07DD02300 21E07DD02500 11 0 0 11 Marylhurst University 21E14DB02900 21E14 00300 21E14 00400 21E14 00401 21E14 00402 21E14 00403 21E14 00404 21E14 90000 21E14 900A1 21E14 900B2 170 0 0 170 Total 366 2 23 341 Table 9. Summary of Unit Capacity Land Type Total Unit Capacity Single Family Units Middle Housing Units Multi-Family Units Vacant & Partially Vacant Land 851 653 62 136 Approved Developments 366 2 23 341 Additional Middle Housing Infill 110 - 110 - Total 1,327 655 195 477 Next Steps This inventory will inform the Housing Capacity Analysis and Housing Needs Assessment to provide a picture of the availability of residential land as it compares to the need of certain types of housing units in the next 20 years. It forms part of the factual basis for City policies to address any deficiencies in unit capacity. AN 24-0003EXHIBIT E-1/PAGE 55 OF 55 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-42, PGE Franchise Agreement Meeting Date: October 1, 2024 Report Date: September 24, 2024 Staff Member: Erica Rooney, PE City Engineer / Public Works 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: Adopt Resolution 24-42 granting a franchise to Portland General Electric Company to Operate an Electric Light and Power System until October 1, 2034. Recommended Language for Motion: Move to adopt Resolution 24-42. Project / Issue Relates To: Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable EXECUTIVE SUMMARY The City of Lake Oswego has a long-standing utility franchise agreement with Portland General Electric (PGE), with the most recent contract expiring on January 31, 2024. While negotiating a new agreement, the City and PGE continued operating under the terms of the expired contract. The new franchise agreement, now finalized, retains largely the same terms as the previous one, with mostly technical updates and adjustments. BACKGROUND Prior to 2019, the City individually negotiated franchise agreements to allow utilities and telecommunications companies to use public right-of-way to install and operate facilities, in 6.3 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY order to provide various services to the public. These services are typically power, natural gas, telecommunications, fiber, and internet. In December 2012, the Council enacted Ordinance 2610, which was a special ordinance granting PGE a franchise to operate in the City of Lake Oswego. The agreement expired in January 2023, and Council extended the expiration date until January 2024 via Ordinance 2610. In January 2019, the Council enacted Ordinance 2804, which created LOC Chapter 51 Utility Facilities in Public Rights-of-Way, to grant “public utilities,” including telecommunication companies, licenses (rather than franchises) to install and operate facilities in the public right- of-way. The objective was to standardize the terms for utilities’ use of the public right-of-way (ROW). However, existing franchises continued and remain an alternative method of permitting use within the public ROW. On September 17, 2024 City Council held a study session regarding the proposed agreement with PGE, with a particular focus on the manner in which the City receives compensation from utilities using the public ROW. As a result of that session, Council directed to staff to finalize the draft PGE Franchise Agreement and to return to Council with an Ordinance establishing a privilege tax of 1.5% on the gross receipts of electric utilizes operating in Lake Oswego. DISCUSSION City staff, with PGE's agreement, recommend continuing with a new franchise agreement that is largely the same as the one originally established by Ordinance 2610. Although the previous agreement has expired, both parties have continued to work together, with PGE making regular payments and following the terms of Ordinance 2610. The new agreement will allow PGE to operate within public rights-of-way in compliance with Lake Oswego's code, state law, and local needs, such as allowing the City to hang flower baskets from PGE utility poles. FISCAL IMPACT This agreement does not change the amount or timing of the franchise payments, which PGE has continued to make during this interregnum. RECOMMENDATION Adopt Resolution 24-42 ATTACHMENTS 1. Resolution 24-42, with Exhibit A Resolution 24-42 Page 1 of 1 RESOLUTION 24-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO GRANTING PORTLAND GENERAL ELECTRIC A FRANCHISE TO OPERATE AN ELECTRIC LIGHT AND POWER SYSTEM IN THE CITY OF LAKE OSWEGO, OREGON. WHEREAS, the City of Lake Oswego has a long-standing utility franchise relationship with PGE, with the most recent agreement expiring on January 31, 2024. WHERAS, the City Council held a study session on the proposed new agreement on September 17, 2024, and directed staff to draft a Resolution granting a Franchise to PGE. WHEREAS, PGE and the City negotiated a new 10-year agreement with an expiration date of October 1, 2034. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Manager is hereby authorized to execute the franchise agreement with Portland General Electric, in substantially the form attached as Exhibit A. Section 2. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 1st day of October, 2024. AYES: NOES: EXCUSED: ABSTAIN: ___________________________________ Joseph M. Buck, Mayor ATTEST: ___________________________________ Kari Linder, City Recorder APPROVED AS TO FORM: ________________________________ Ellen Osoinach, City Attorney ATTACHMENT 1 1 FRANCHISE AGREEMENT This Franchise Agreement (“Franchise”) grants Portland General Electric Company (“Grantee”) a non-exclusive franchise for ten years to erect, construct, maintain, repair, update and operate an electric light and power system within the City of Lake Oswego (“City”), sets forth the terms and conditions of the franchise and provides an effective date. WHEREAS, Grantee has been providing electricity and electric services within the City; and WHEREAS, Grantee is duly authorized by the Oregon Public Utility Commission (“OPUC”) to supply electricity and electric services within the City; and WHEREAS, the City has the authority to regulate the use of the Public ROW (as defined below) within the City and to receive compensation for the use of the Public ROW; and WHEREAS, the City and Grantee both desire Grantee to continue to be able to provide electrical service within the City and to establish the terms by which Grantee shall use and occupy the Public ROW. NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS: SECTION 1. NATURE AND TERM OF FRANCHISE. (A)The City hereby grants to Grantee and its successors and assigns, subject to the terms and conditions in this Franchise, a nonexclusive franchise to erect, construct, repair, maintain, upgrade and operate an electric system within the City as it now exists or may be extended in the future, including related communication equipment and Grantee Facilities (as defined below). All requirements for Grantee to obtain, maintain and renew a License under LOC Chapter 51 are hereby waived by City during the Term of this Franchise. (B)This Franchise includes the privilege to install, repair, maintain, upgrade and operate Grantee Facilities upon, over, along, and across the surface of and the space above and below the streets, alleys, roads, highways, sidewalks, bridges, and other public ways (collectively, “Public ROW”), as well as public utility easements on third party property on which a preliminary subdivision plat has been approved by the City, and which will be managed by the City thereafter (“PUEs”), for the provision of public utility services within the City. Nothing in this Franchise limits the City EXHIBIT A 2 from granting others the right to carry on activities similar to, or different from, the ones described in this Franchise. (C) All Grantee Facilities in possession of Grantee currently or during the Term (as defined in Section 2(A)) that are located within the Public ROW are covered by this Franchise and the placement thereof is hereby subject to the Rights-of-Way License and this Franchise. (D) To the extent subject matter is expressly covered under this Franchise and LOC Chapter 51, the provisions of this Franchise shall apply rather than the provisions set forth in LOC Chapter 51. LOC Chapter 51 shall govern all subject matter not expressly covered under this Franchise. SECTION 2. TERM AND EFFECTIVE DATE. (A) Effective Date. The effective date of this Franchise shall be thirty (30) days after the City Council passes an ordinance adopting this Franchise and both parties have executed this Franchise Upon becoming effective, this Franchise shall supercede and replace any and all other franchise agreements that may be or have been in place between Grantee and City as of or prior to the Effective Date. (B) Duration of Franchise. The term of this Franchise, and all rights and obligations pertaining thereto, shall be ten (10) years from the effective date of the Franchise (“Term”) unless renegotiated or terminated as provided herein. (C) Charter and General Ordinances to Apply. To the extent authorized by law, this Franchise is subject to the Charter of the City of Lake Oswego and general ordinance provisions passed pursuant thereto, including the applicable provisions of Lake Oswego Code requiring underground utilities in subdivisions or partitions, and state statutes and regulations existing during the Term. Nothing in this Franchise shall be deemed to waive the requirements of the various codes and ordinances of the City regarding permits, fees to be paid that are generally applicable to other similar businesses operating within the City, or the manner of construction. SECTION 3. DEFINITIONS. (A) Captions. Throughout this Franchise, captions to sections are intended solely to facilitate reading and to reference the provisions of this Franchise. The captions shall not affect the meaning and interpretation of this Franchise. 3 (B) Definitions. For purposes of this Franchise, the following terms, phrases, and their derivations shall have the meanings given below unless the context indicates otherwise. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. (1) "City" means the City of Lake Oswego, Oregon, a municipal corporation, and all of the territory within its corporate boundaries, as such may change from time to time. (2) “City Council” means the City Council of the City. (3) “City Engineer” means the City Engineer of the City. (4) “City Manager” means the City Manager of the City. (5) “City Recorder” means the City Recorder of the City. (6) “Director of Finance” means the Director of Finance of the City. (7) "Franchise" means this Franchise Agreement as fully executed by the City and Grantee. (8) “Grantee” means Portland General Electric Company, an Oregon corporation. (9) "Grantee Facility" means any tangible component of Grantee’s Electric System, including but not limited to any poles, guy wires, anchors, wire, fixtures, equipment, conduit, circuits, vaults, switch cabinets, transformers, secondary junction cabinets, antennas, communication equipment and other property necessary or convenient to supply electric light and power by Grantee within the City. (10) "Grantee’s Electric System" means all real property and Grantee Facilities used by Grantee in the provision of its services that are approved and regulated by the Oregon Public Utilities Commission, that are located inside the boundaries of the City. (11) “Gross Revenues" shall be deemed to include any and all revenues derived by Grantee within the City from Grantee’s Electric System, and includes, but is not limited to, the sale of and use of electricity and electric services, and the use, rental, or lease of Grantee Facilities, after adjustment for the net write-off of uncollectible accounts. Gross Revenues do not include proceeds from the sale of bonds, mortgages or other evidence of indebtedness, securities or stocks, any amounts collected from Grantee customers that are subsequently 4 passed through to one or more third party entities pursuant to law or a tariff, or sales at wholesale by one public utility to another of electrical energy when the utility purchasing such electrical energy is not the ultimate consumer. Gross Revenues also do not include revenue from joint pole use. For purposes of this Franchise, revenue from joint pole use includes any revenue collected by Grantee from other franchisees, permittees, or licensees of the City for the right to attach wires, cable or other facilities or equipment to Grantee’s poles or place them in Grantee’s conduits. For purposes of this Franchise, revenue from joint pole use does not include rental or other similar revenue collected by Grantee from other franchises, permittees, or licensees of the City for the right to pole attachments for small cell wireless antennas and distributed antenna systems (DAS). (12) “NESC” means the National Electrical Safety Code. (13) “OPUC” means the Oregon Public Utility Commission. (14) “Term” shall have the meaning described in Section 2. (15) "Person" means any individual, sole proprietorship, partnership, association, corporation, cooperative, People’s Utility District, or other form of organization authorized to do business in the State of Oregon, and includes any natural person. (16) “Public ROW” shall have the meaning described in Section 1 (B). (17) "PUE” shall have the meaning described in Section 1 (B). (18) "Year," "annual," or "annually" means the period consisting of a full calendar year, beginning January 1, and ending December 31, unless otherwise provided in this Franchise. SECTION 4. CONSTRUCTION. (A) Construction. Subject to the NESC, Grantee’s Electric System shall be constructed and maintained in such manner as not to interfere with sewers, water pipes, fiber, or any other property of the City, or with any other pipes, wires, conduits or other facilities that may have been laid in the Public ROW by or under the City’s, County’s, State’s authority. Grantee and the City shall work together during any design process affecting the Public ROW to establish suitable locations for Grantee’s Facilities using commercially reasonable efforts to minimize the cost impact to both parties. Assuming there is sufficient space in the Public ROW, all facilities shall be placed between 5 the sidewalk and the edge of the Public ROW unless another location is approved by the City Engineer. If there is not sufficient space in the Public ROW, the City agrees to provide a suitable alternative location, as mutually agreed, that meets Grantee’s construction standards as provided to the OPUC and NESC requirements in order to maintain sufficient service. The foregoing sentence shall not apply if the Grantee’s construction activities are undertaken by Grantee for a system improvement required as a result of a third-party project. (B) Emergency Repairs. In the event emergency repairs to Grantee Facilities are necessary, Grantee shall as soon as reasonably possible notify the City of the need for such repairs. Grantee may immediately initiate such emergency repairs and apply for appropriate permits the next business day or as soon as reasonably possible following discovery of the emergency. (C) Reasonable Care. All work completed by Grantee within the Public ROW shall be conducted with reasonable care and with the goal of minimizing the risk to those using the Public ROW and to minimize the risk of damage to public and third-party property. All work shall be performed in accordance with all applicable laws and regulations, including but not limited to the NESC. Any work completed by Grantee within the Public ROW may be inspected by the City to determine whether it has been placed in its approved location according to Grantee’s permit issued by the City. If emergency work has been completed by Grantee in the Public ROW and the City determines such work was not completed in a City approved location, the City shall notify Grantee and provide Grantee with sixty (60) days after the emergency has passed to reperform the work in a City approved location, subject to the NESC. SECTION 5. SUPPLYING MAPS. (A) Grantee shall maintain maps and data pertaining to the location of Grantee Facilities on file at its corporate offices or at an office in Oregon. Upon request of the City and without charge, Grantee shall furnish current maps to the City by electronic data in read-only format showing the general location of Grantee Facilities, excluding Grantee proprietary information. Unless required by law, including Oregon’s Public Records Law (ORS 192.311, et. seq.), the City will not sell or provide Grantee-prepared maps or data to third parties without written permission from Grantee. Upon request of Grantee, the City will make available to Grantee any relevant City-prepared maps or 6 data at no charge to Grantee. SECTION 6. EXCAVATION AND RESTORATION AFTER EXCAVATION. (A) Excavation. Subject to Sections 4 and 7, and after obtaining any permits required by the City, Grantee may make all necessary excavations within the Public ROW for the purpose of installing, repairing, upgrading or maintaining Grantee Facilities, except that in the case of an emergency, no permit shall be required prior to excavation. Notwithstanding any terms or conditions stated in a permit granted by the City, the terms of this Franchise shall control. All excavations made by Grantee in the Public ROW shall be properly safeguarded for the prevention of accidents. All of Grantee’s work under this Section 6 shall be completed in compliance with all applicable rules, regulations and ordinances of the City. Should a customer of Grantee be required, pursuant to Grantee’s tariff on file with the OPUC, to make excavations that are located in the Public ROW, the City agrees that Grantee shall not be responsible or liable for any failure by such customer to comply with any applicable rules, regulations, ordinances of the City and/or with City standards. (B) Restoration after Excavation. Except as otherwise provided for in this Section, Grantee shall restore the surface of the Public ROW disturbed by any excavation by Grantee to at least the same condition that it was in prior to excavation. If Grantee excavates the surface of the Public ROW, Grantee shall be responsible for restoration of the Public ROW and the area affected by the excavation. If Grantee fails to restore the Public ROW to at least the same condition that it was in prior to the excavation, the City shall give Grantee written notice and provide Grantee a reasonable period of time, not to exceed thirty (30) days, to restore the Public ROW. If the work of Grantee creates a public safety hazard as determined by the City Engineer, Grantee may be required to repair or restore the Public ROW within twenty-four (24) hours’ notice from the City, or such time as agreed between the City Engineer and Grantee, taking into consideration weather and other relevant factors. Should Grantee fail to make such repairs or restorations within the aforementioned time frames, the City may, after providing notice to Grantee and a reasonable opportunity to cure, refill or repave any opening made by Grantee in the Public ROW and the expense thereof shall be paid by Grantee. The City reserves the right, after providing notice to Grantee, to remove or repair any work completed by Grantee, which, in the determination of the 7 City Engineer is inadequate, using a qualified contractor in accordance with applicable state and federal safety laws and regulations. The cost thereof, including the cost of inspection and supervision, shall be paid by Grantee. In the event that Grantee’s work is coordinated with other construction work in the Public ROW, the City Engineer may excuse Grantee from restoring the surface of the Public ROW; provided that as part of the coordinated work, the Public ROW is restored to good order and condition. SECTION 7. VEGETATION MANAGEMENT. Grantee or its contractor may prune and/or remove all vegetation which present the risk of growing-in, overhanging, or falling-into Grantee’s overhead electrical system, whether such vegetation originated within or outside the Public ROW, to prevent such vegetation from interfering with Grantee Facilities. A growth inhibitor treatment may be used for trees and vegetation species that are fast-growing and problematic. Grantee’s vegetation management practices shall comply with all vegetation management requirements established by the OPUC. SECTION 8. RELOCATION. (A) Permanent Relocation Required by City or Lake Oswego Redevelopment Agency (LORA). This subsection (A) covers permanent relocation of overhead Grantee Facilities that will remain overhead, and underground Grantee Facilities that will remain underground. When it is necessary or convenient in the interest of the public for a City or a LORA project, the City shall have the right to require Grantee to change the location of Grantee’s Electric System, and, unless otherwise agreed, the expenses thereof shall be paid by Grantee. The City shall provide Grantee a reasonable amount of time, based on Grantee’s reasonable determination, to adequately design such relocation. The City agrees to provide a suitable location in the Public ROW as mutually agreed, or, failing that, to provide either the necessary easements from the private property owners or PUEs for Grantee Facilities, that meets the Grantee’s construction standards as provided to the OPUC and NESC requirements, to accommodate and permit upgrades of Grantee Facilities in order to maintain sufficient service. Should Grantee fail to remove or relocate any such Grantee Facilities within ninety (90) days after the date established by the City (the “Relocation Date”), which, except in the event of public emergency, shall not occur sooner than ninety (90) days after 8 the City provides written notice to remove/relocate to Grantee or such longer time in the event the design of such relocation will take longer to complete based on Grantee’s reasonable determination, the City may cause or effect such removal or relocation, performed by a qualified contractor in accordance with applicable state and federal safety laws and regulations, including the NESC, and the expense thereof shall be paid by Grantee. (B) Delay Associated with City or LORA public projects: In the event a public project is delayed as a result of a relocation not being completed by the Relocation Date, City agrees to use its best efforts to convene a meeting with all parties who potentially could have caused the delay to discuss who is responsible for the delay. (C) Notice. The City will endeavor to provide as much notice prior to requiring Grantee to relocate Grantee Facilities as possible. The notice shall specify the date by which the existing Grantee Facilities must be removed or relocated. Nothing in this provision shall prevent the City and Grantee from agreeing, either before or after notice is provided, to a schedule for relocation. (D) Permanent Relocation Undergrounding. This subsection (D) applies to conversions of Grantee Facilities from overhead to underground regardless of whether such conversion is made in conjunction with a public project. As permitted by, and in accordance with City ordinance and any applicable law, administrative rule, or regulation, the City may require Grantee to convert any overhead Grantee Facilities to underground Grantee Facilities at the same or different locations, subject to Grantee’s engineering and safety standards. This subsection shall not apply to Grantee Facilities used for or in connection with the transmission of electric energy at nominal voltages in excess of 35,000 volts or to pedestals, cabinets or other above-ground equipment. In the event aboveground equipment must be relocated as part of the conversion of overhead Grantee Facilities, Grantee agrees to provide City an opportunity to consult on the location of such aboveground equipment. Any such relocation shall be consistent with applicable long- term development plans or projects of the City, or as approved by the City. The expense of such a conversion shall be paid by Grantee in accordance with Grantee’s tariff; and City shall remain responsible for certain ancillary costs as set forth in Grantee’s tariff approved by the OPUC (e.g., expenses associated with the pathway, conduit, vaults, etc.). Additionally, nothing in this section 9 limits Grantee ability to recover its costs from its customers in accordance with its tariff approved by the OPUC, state law, administrative rule, or regulation. The City agrees to provide a suitable location in the Public ROW, as mutually agreed, that meets Grantee’s construction standards as provided to the OPUC and NESC requirements and if sufficient space is not available in the Public ROW, then the City will obtain sufficient easements from private property owners to accommodate Grantee Facilities in order to maintain service and permit upgrades of Grantee Facilities. Nothing in this subsection prevents the City and Grantee from agreeing to a different form of cost recovery consistent with applicable statutes, administrative rules, or regulations on a case-by-case basis. (E) Temporary Relocation at Request of Third Parties. Whenever it is necessary to temporarily relocate or rearrange any Grantee Facility in order to permit the passage of any building, machinery or other object, Grantee shall perform the work after receiving sixty (60) business days written notice from the persons desiring to move the building, machinery or other object. The notice shall: (1) demonstrate that the third party has acquired at its expense all necessary permits from the City; (2) detail the route of movement of the building, machinery, or other object; (3) provide that the person requesting the temporary relocation shall be responsible for Grantee’s costs; (4) provide that the requestor shall indemnify and hold harmless the City and Grantee from any and all damages or claims resulting either from the moving of the building, machinery or other object or from the temporary relocation of Grantee Facilities; and (5) be accompanied by a cash deposit or other security acceptable to Grantee for the costs of relocation. Grantee in its sole discretion may waive the security obligation. The cash deposit or other security shall be in an amount reasonably calculated by Grantee to cover Grantee’s costs of temporary relocation and restoration. All temporary relocations under this subsection shall comply with ORS 757.805. (F) Temporary Relocation at Request of City. This subsection (F) covers temporary relocation of overhead Grantee Facilities that will remain overhead, as well as underground facilities that will remain underground. The City may require Grantee to temporarily remove and relocate Grantee Facilities by giving sixty (60) days’ notice to Grantee. Prior to such relocation, the City agrees to provide a suitable location in the Public ROW, as mutually agreed, that meets the Grantee’s construction standards as provided to the OPUC and NESC requirements, or a temporary 10 construction easement that meets the Grantee’s construction standards as provided to the OPUC and NESC requirements, and that allows Grantee to place Grantee Facilities on the easement, in order for such relocated Grantee Facilities to maintain sufficient service and permit upgrades to such Grantee Facilities until such time as the Grantee moves such Grantee Facilities to their permanent location. The City will obtain easements from private property owners if sufficient square footage is not available in the Public ROW or the City has not obtained construction easements for the public project necessitating the temporary relocation of Grantee Facilities. The cost of temporary removal or relocation of Grantee Facilities that is necessary or convenient for public projects, as well as the cost of replacing Grantee Facilities in their permanent location, shall be paid by Grantee; however, when relocation is to be temporary and both the initial and the subsequent relocation are necessary or convenient for public projects and not at the request of or to accommodate a third party, the initial relocation shall be at the expense of Grantee and subsequent relocations occurring less than one (1) year after the initial relocation shall be at the expense of the City. (G) Permanent Relocation at Request of Third Party. In the event that any relocation is requested by or is to accommodate a third party, Grantee shall seek reimbursement from the third party and not from the City. Such relocation shall be consistent with an applicable long-term development plan or projection of the City or approved by the City. The City and Grantee agree to cooperate to minimize the economic impact of such relocation on each party. However, if relocation of Grantee Facilities is caused or required by conditions placed by the City on approval of projects for third parties, such relocation shall in no event fall under the provisions of subsections (A), (D), or (F). SECTION 9. PUBLIC ROW VACATION. If all or a portion of the Public ROW used by Grantee is vacated by the City during the Term, and if reasonably possible, the City shall either condition the approval of the vacation on the reservation of an easement for Grantee Facilities in their then- current location that prohibits any use of the vacated property that interferes with Grantee’s full enjoyment and use of its easement, or permit Grantee Facilities to remain in a PUE. If neither of these options is reasonably possible, Grantee shall, after notice from the City and without expense 11 to the City, remove Grantee Facilities from such vacated Public ROW, restore, repair or reconstruct the Public ROW where such removal has occurred, and place the Public ROW in good order and condition as may be required by the City. The costs for such removal shall be born in accordance with Section 8 (A), (D), or (F), depending on which of the Sections applies to the specific circumstances. In the event of failure, neglect or refusal of Grantee, after providing Grantee with ninety (90) days prior written notice, to repair, restore, or reconstruct such Public ROW, the City may complete such work or cause it to be completed by a qualified contractor in accordance with applicable state and federal safety laws and regulations, and the cost thereof shall be borne by the Grantee. Upon request, the City will cooperate with Grantee to identify alternative locations within the Public ROW for Grantee Facilities if they are not permitted to remain in the vacated area or provide reasonable assistance to Grantee in obtaining easements to maintain Grantee Facilities in the same location. SECTION 10. CITY PUBLIC WORKS AND IMPROVEMENTS. Nothing in this Franchise shall be construed in any way to prevent the City from excavating, grading, paving, planking, repairing, widening, altering, or completing any work that may be needed or convenient in the Public ROW that is consistent with the NESC. The City shall coordinate any such work with Grantee to avoid, to the extent reasonably foreseeable, any obstruction, injury or restrictions on the use by Grantee of any Grantee Facilities, and the City shall be responsible for the costs to repair any damage to Grantee Facilities arising out of such work. Nothing in this Section relieves Grantee from its obligations stated in Section 8. SECTION 11. USE OF GRANTEE FACILITIES. City shall maintain attachment agreements and permits to string wires on Grantee’s poles or run wires in Grantee’s trenches and/or conduit for municipal purposes and to attach fire and police alarm and communication equipment to Grantee’s poles, and traffic control signs/devices, as well as to hang flower baskets provided and maintained by the Lake Oswego Chamber Foundation; provided that such wires and equipment: a) do not unreasonably interfere with Grantee operations; b) conform to the NESC; and c) the City’s excess capacity on such wires and equipment is not leased to, sold to or otherwise used by non-governmental third parties. Grantee shall not charge the City for such attachments to its poles 12 or in its conduits; however, the City shall be responsible for paying for any make-ready and inspections Grantee must perform in order to provide access to Grantee Facilities for City wires and equipment in accordance with the NESC. Should any of the City’s attachments to Grantee Facilities violate the NESC, the City shall work with Grantee to address and correct such violations in an agreed-upon period of time. The City shall indemnify and hold Grantee harmless from loss or damage resulting from the presence of City’s wires and equipment on or in Grantee Facilities. For purposes of this Franchise, “make-ready” shall mean engineering or construction activities necessary to make a pole, conduit, or other support equipment available for a new attachment, attachment modifications, or additional facilities. SECTION 12. PAYMENT FOR USE OF PUBLIC ROW. (A) Use of Public ROW. In consideration for its use of the Public ROW in accordance with the terms of this Franchise, Grantee agrees to pay the City an amount equal to three and a half percent (3.5%) of the Gross Revenue received by Grantee from its customers within the City (“Franchise Fee”). The payment for each year shall be based on the Gross Revenue collected by Grantee during the previous calendar year, and shall be paid on an annual basis. To the extent permissible under state law and regulation, the payment imposed by this subsection shall be considered an operating expense of Grantee and shall not be itemized or billed separately to consumers within the City. (B) Property Tax Limitations Do Not Apply. The payment described in this Section 12 is not subject to the property tax limitations of Article XI, Sections 11(b) and 11(19) of the Oregon Constitution and is not a fee imposed on property or property owners by fact of ownership. (C) Privilege Tax. The City shall retain the right, as permitted by Oregon law, to charge a privilege tax based on a percentage of the Gross Revenue earned from Grantee’s customers within the City in addition to the payment amounts set forth in subsection (A). The City shall provide Grantee at least ninety (90) days’ notice prior to such privilege tax becoming effective. Grantee shall follow state regulations regarding the inclusion of such privilege tax as an itemized charge on the electricity bills of its customers within the City. In no event shall any amounts of privilege tax collected from Grantee customers in accordance with State regulation be treated or otherwise considered Gross Revenue for purposes of this Franchise. 13 (D) Remittance of Annual Payment. Grantee shall remit to the Director of Finance on or before the first (1st) day of April of each year, the annual three and a half percent ( 3 ½%) Franchise Fee payment, as well as payment of any additional privilege tax, to be made in such year. Payment must be made in immediately available federal funds. With its annual payment, Grantee shall provide the City a statement showing the Gross Revenue for the preceding year. (E) Acceptance of Payment. Acceptance by the City of any payment due under this Section shall not be a waiver by the City of any breach of this Franchise occurring prior to the acceptance, nor shall the acceptance by the City preclude the City from later establishing that a larger amount was actually due, or from collecting the balance due to the City. (F) Late Payments. Interest on late payments shall accrue from the due date based on the one- year U.S. treasury bill rate as of the due date, and shall be computed based on the actual number of days elapsed from the due date until payment. Interest shall accrue without regard to whether the City has provided notice of delinquency. (G) No Exemption From Other Fees or Taxes. Payment of the amounts described in this Section 12 shall not exempt Grantee from the payment of any other license fee, tax or charge on the business, occupation, property or income of Grantee that may be lawfully imposed by the City or any other taxing authority, except as may otherwise be provided in the ordinance or laws imposing such other license fee, tax or charge. (H) Payment Obligation Survives Franchise. If prior to the expiration of this Franchise the parties do not finish negotiation of a new franchise agreement, the obligation to make the payments imposed by this Section 12 shall survive expiration of this Franchise until a new franchise agreement becomes effective and supersedes this Franchise. In the event this Franchise is terminated before expiration, Grantee shall make the remaining payments owed, if any, within ninety (90) days of the termination date. SECTION 13. AUDIT. (A) Audit Notice and Record Access. The City may audit Grantee’s calculation of Gross Revenues for the prior two (2) calendar years. Within ten (10) business days after receiving a written request from the City, or such other time frame as agreed by both parties, Grantee shall 14 furnish the City and any auditor retained by the City information sufficient to demonstrate that Grantee is in compliance with this Franchise as reasonably requested by the City. Grantee shall provide access to such information to City within the City, or the Portland, Oregon metropolitan area, during regular Grantee business hours. (B) Audit Payment. If the City’s audit shows that the amounts due to the City are higher than those based on the Grantee’s calculation of Gross Revenue, then Grantee shall make a payment for the difference within sixty (60) days after the delivery to Grantee of the audit results. In addition to paying any underpayment, Grantee shall pay interest at the prevailing one-year U.S. Treasury bill rate, but not penalties, as specified in this Franchise, from the original due date. In the event the City’s audit shows that Grantee’s calculation of Gross Revenue resulted in an overpayment to the City by five percent (5%) or more in any one year, the Grantee may deduct such overpayment from the next annual franchise fee payment. If the City’s audit shows that the amounts due to the City based on the Grantee’s calculation of Gross Revenue deviated by five percent (5%) or more in any one year from the City’s calculation during the audit, Grantee shall reimburse City for the cost of the audit, not to exceed one percent (1%) of the total annual franchise payment for the applicable audit period. SECTION 14. TERMINATION AND REMEDIES. (A) By City if City Will Provide Service. The City may terminate this Franchise upon one year’s written notice to Grantee in the event that the City decides to engage in public ownership of the electric facilities located in the Public ROW and the public distribution of electric energy to customers throughout the City in accordance with ORS 758.470. (B) City Reserves Right to Terminate. In addition to any other rights provided for in this Franchise, the City reserves the right, subject to subsections 14 (D) and (E), to terminate this Franchise in the event that: (1) The Grantee materially violates any material provision of this Franchise; (2) The Grantee is found by a court of competent jurisdiction to have practiced any material fraud or deceit upon the City; (3) There is a final determination that Grantee has failed, refused, neglected or is otherwise 15 unable to obtain or maintain Grantee’s service territory designation required by any federal or state regulatory body regarding Grantee's operation of Grantee’s Electric System; or (4) Grantee becomes unable or unwilling to pay its debts, or is adjudged bankrupt. (C) Notice and Opportunity to Cure. The City shall provide Grantee thirty (30) days prior written notice of its intent to exercise its right to terminate, stating the reasons for such action. If Grantee cures the basis for termination or if the Grantee initiates efforts satisfactory to the City to remedy the basis for termination and the efforts continue in good faith within the thirty (30) day notice period, the City shall not exercise its termination right. If Grantee fails to cure the basis for termination or if the Grantee does not undertake and/or maintain efforts satisfactory to the City to remedy the basis for termination within the thirty (30) day notice period, then the City Council may impose any or all of the remedies available under this Section 14. (D) Remedies. In determining which remedy or remedies are appropriate, the City shall consider the nature of the violation, the person or persons burdened by the violation, the nature of the remedy required in order to prevent further such violations, and any other matters the City deems appropriate. (E) Financial Penalty. In addition to any rights set out elsewhere in this Franchise, as well as its rights under the City Code or other law, the City reserves the right at its sole option to impose a financial penalty of up to Five Hundred Dollars ($500.00) per day for a violation of a material provision of this Franchise when the opportunity to cure has passed. SECTION 15. ASSIGNMENT OF FRANCHISE. Grantee shall not sell, assign, transfer, or convey this Franchise to a third party without the City Council giving its consent in a duly passed ordinance. Upon obtaining such consent, this Franchise shall inure to and bind such third party. Grantee shall not sell or assign this Franchise to an entity that is not authorized by the OPUC to provide electric service to retail consumers in the City or is not otherwise authorized to provide electric service to retail consumers under Oregon law. Prior to any proposed transfer, Grantee shall be in full compliance with this Franchise and the proposed transferee shall agree in writing to be bound by this Franchise. In the event Grantee is purchased by or merged into another entity and Grantee survives such purchase or merger as a public utility, Grantee shall provide notice to the 16 City of such purchase or merger, but shall have no obligation under this Franchise to obtain the consent of the City Council for such purchase or merger. SECTION 16. REMOVAL OF FACILITIES. If this Franchise is terminated or expires on its own terms and is not replaced by a new franchise agreement or similar authorization, the City may determine whether Grantee Facilities are to be removed from the Public ROW or remain in place. The City shall provide written notice of any requirement to remove Grantee Facilities and shall provide Grantee sixty (60) days to comment on such requirement to move Grantee Facilities. Following consideration of any such comments, the City Manager may issue an order requiring removal of Grantee Facilities within nine (9) months after such order is declared. In the event Grantee facilities are abandoned when this Franchise is in effect, the Grantee shall remove facilities within a period agreed to by the City and Grantee unless Grantee has requested permission to abandon facilities in place and the City has granted permission to do so. Nothing in this Section prevents the City and Grantee from mutually agreeing to a longer time period for removal of abandoned facilities. SECTION 17. NONDISCRIMINATION AND EQUAL OPPORTUNITY. (A) Nondiscrimination of Customers. Grantee shall provide service its cost-of-service electric light and power consumers in the City without undue discrimination or undue preference or disadvantage, in accordance with Oregon law. (B) Equal Opportunity Employer. Grantee is committed to a workplace free of discrimination based on race, color, religion, national origin, gender, age, military status, sexual orientation, marital status, or physical or mental disability or any other protected status in accordance with all federal, state or local laws. Grantee shall not, solely because of race, color, religion, national origin, gender, age, military status, sexual orientation, marital status, or physical or mental disability, refuse to hire, discharge, promote, demote or discriminate in matters of compensation, against any person otherwise qualified. Grantee is committed to undertaking programs that identify, consider and develop persons of color, women and members of other under-represented groups for positions at any skill and management levels within Grantee’s organization. In order to enhance the diversity of the employees of Grantee, Grantee is committed to recruiting diverse 17 employees by strategies such as collaborating with colleges, universities and technical schools with diverse student populations, utilizing diversity-specific media to advertise employment opportunities, internships, and engaging recruiting firms with diversity-specific expertise. Additionally, in order to enhance opportunities for advancement of persons of color, women and members of other under-represented groups, Grantee will offer training and development opportunities to its employees, including mentoring programs, trainings programs, classroom training and leadership programs. (C) Contracting and Economic Development. Grantee is committed to make available to minority and women owned business enterprises and other small and/or disadvantaged business enterprises the maximum practical opportunity to compete with other service providers, contractors, vendors and suppliers in the marketplace. Grantee is committed to increase the proportion of Grantee contracts awarded to minority and women owned business enterprises and other small and/or disadvantaged business enterprises for services, construction, equipment and supplies to the maximum extent consistent with the efficient and economic operation of Grantee. SECTION 18. INDEMNIFICATION. To the fullest extent permitted by law, Grantee shall indemnify and hold harmless the City against any and all claims, damages, costs and expenses, including attorney’s fees and costs, to which the City may be subjected as a result of any negligent or willful misconduct of Grantee, or its affiliates, officers, employees, agents, contractors or subcontractors, arising out of the rights and privileges granted by this Franchise. The obligations imposed by this Section are intended to survive termination of this Franchise. SECTION 19. INSURANCE. Grantee shall maintain in full force and effect, for the entire Term, the following insurance covering risks associated with Grantee’s ownership and use of Grantee Facilities and the Public ROW: (A) Commercial General Liability insurance covering all operations by or on behalf of Grantee for Bodily Injury and Property Damage, including Completed Operations and Contractual Liability coverage, in an amount not less than Two Million Dollars ($2,000,000.00) per occurrence and in the aggregate. (B) Business Automobile Liability insurance to cover any vehicles used in connection with its 18 activities under this Franchise, with a combined single limit not less than One Million Dollars ($1,000,000.00) per accident. (C) Workers’ Compensation coverage as required by law and Employer’s Liability Insurance with limits of One Million Dollars ($1,000,000). (D) With the exception of Workers’ Compensation and Employers Liability coverage, Grantee shall include the City as an additional insured on all applicable policies, but only to the extent of Grantee’s contractually assumed indemnity obligation as set forth under Section 18. Grantee agrees to provide City with thirty (30) days prior written notice if any of Grantee’s insurance policies under this Franchise will be canceled. Grantee shall provide the City with a certificate of insurance evidencing such coverage as a condition of this Franchise and shall provide updated certificates upon request. (E) In Lieu of Insurance. In lieu of the insurance policies required by this Section 19, Grantee shall have the right to self- insure any and all of the coverage outlined hereunder. If Grantee elects to self-insure, it shall do so in an amount at least equal to the coverage requirements of this Section 19 in a form acceptable to the City. Grantee shall provide proof of self-insurance to the City before this Franchise takes effect and thereafter upon request by the City. SECTION 20. DAMAGE TO FACILITIES. The City shall not be liable for any consequential damages or losses resulting from any damage to or loss of any facility as a result of or in connection with any work by or for the City unless the damage or loss is the direct and proximate result of willful, intentionally tortious, negligent or malicious acts or omissions by the City, its employees, or agents. In such case, the City shall indemnify and hold harmless Grantee against any and all claims, damages, costs and expenses, including attorney’s fees and costs, arising therefrom, subject to any applicable limitations in the Oregon Constitution and the Oregon Tort Claims Act. The obligations imposed by this Section are intended to survive termination of this Franchise. SECTION 21. LIMITATION ON PRIVILEGES. All rights and authority granted to Grantee by the City under this Franchise are conditioned on the understanding and agreement that the privileges in the Public ROW shall not be an enhancement of Grantee’s properties or an asset or item of ownership of Grantee. 19 SECTION 22. FRANCHISE NOT EXCLUSIVE. This Franchise is not exclusive and shall not be construed to limit the City from granting rights, privileges and authority to other persons similar to or different from those set forth in this Franchise. SECTION 23. REMEDIES AND PENALTIES NOT EXCLUSIVE. All remedies and penalties under this Franchise, including termination, are cumulative and not exclusive, and the recovery or enforcement by one available remedy or imposition of a penalty is not a bar to recovery or enforcement by any other remedy or imposition of any other penalty. The City reserves the right to enforce the penal provisions of any City ordinance or resolution and to avail itself to any and all remedies available at law or in equity. Failure to enforce any term, condition or obligation of this Franchise shall not be construed as a waiver of a breach of any term, condition or obligation of this Franchise. A specific waiver of a particular breach of any term, condition or obligation of this Franchise shall not be a waiver of any other, subsequent or future breach of the same or any other term, condition or obligation of this Franchise. SECTION 24. SEVERABILITY CLAUSE. If any section, subsection, sentence, clause, phrase, or other portion of this Franchise is, for any reason, held to be invalid or unconstitutional by a court of competent jurisdiction, all portions of this Franchise that are not held to be invalid or unconstitutional shall remain in effect until this Franchise is terminated or expired. After any declaration of invalidity or unconstitutionality of a portion of this Franchise, either party may demand that the other party meet to discuss amending the terms of this Franchise to conform to the original intent of the parties. If the parties are unable to agree on a revised franchise agreement within ninety (90) days after a portion of this Franchise is found to be invalid or unconstitutional, either party may terminate this Franchise by delivering one hundred and eighty (180) days’ notice to the other party. SECTION 24. NOTICE. Any notice provided for under this Franchise shall be sufficient if in writing and (1) delivered personally to the following addressee, (2) deposited in the United States mail, postage prepaid, certified mail, return receipt requested, or (3) sent by overnight or commercial air courier (such as Federal Express or UPS), or to such other address as the receiving party hereafter shall specify in writing: 20 If to the City: City Manager, City of Lake Oswego 380 A Ave. Lake Oswego, OR 97034 With a copy to: City Attorney City of Lake Oswego 380 A Ave. Lake Oswego, OR 97034 If to the Grantee: Regional Manager Portland General Electric Company Address XXX, Oregon 97XXX With a copy to: Portland General Electric Company Attn: General Counsel One World Trade Center, 17th Floor 121 SW Salmon Street Portland, Oregon 97204 Any such notice, communication or delivery shall be deemed effective and delivered upon the earliest to occur of actual delivery, three (3) business days after depositing in the United States mail or one (1) business day after shipment by commercial air courier. IN WITNESS WHEREOF, the parties, through their duly authorized representatives, have executed this Franchise as of the dates indicated below. PORTLAND GENERAL ELECTRIC COMPANY CITY OF LAKE OSWEGO By: By: Name: Name: Title: Title: Date: Date: 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Resolution 24-39, Approving Appointments to the ad hoc South Shore Fire Station Task Force Meeting Date: October 1, 2024 Report Date: September 20, 2024 Staff Member: Kristine Artman, Assistant Fire Chief Quin Brunner, Management Analyst Department: Fire & 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: Adopt Resolution 24-39. Recommended Language for Motion: Move to adopt Resolution 24-39. Project / Issue Relates To: 2024 City Council Initiative: Begin a needs assessment and community engagement process to rebuild the South Shore Fire Station. Issue before Council (Highlight Policy Question): ☒Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable BACKGROUND On September 3rd, the City Council passed Resolution 24-38, creating an ad hoc Task Force to study the feasibility of rebuilding the South Shore Fire Station. Between September 4th and September 16th, staff recruited community members to serve on the South Shore Fire Station Task Force. Eleven members were nominated to represent key 8.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY stakeholder groups while eight were selected for at-large position. The eight members selected for at-large positions were chosen from a pool of forty applicants. The selected at-large members include two youth appointees. Councilor Trudy Corrigan will serve as a non-voting Council liaison to the Task Force. Lieutenant Jonathan Isbell will serve as the Fire Department Labor Union’s non-voting liaison to the Task Force. DISCUSSION Resolution 24-39 approves the members to the Task Force appointed by the Mayor. Per City Charter, Sec. 19, the Mayor appoints “with approval of the Councilors” members to the City’s committees, boards, and commissions. The Mayor has recommended the persons named in Resolution 24-39; only the Councilors vote on approval of the Resolution. ATTACHMENTS 1. Resolution 24-39, with Exhibit A. Resolution 24-39 Page 1 of 1 RESOLUTION 24-39 A RESOLUTION OF THE CITY COUNCILORS OF THE CITY OF LAKE OSWEGO APPROVING APPOINTMENTS TO THE SOUTH SHORE FIRE STATION TASK FORCE. WHEREAS, the Lake Oswego City Council has adopted Resolution 24-38 creating an ad hoc South Shore Fire Station Task Force; and WHEREAS, the Mayor has proposed appointing, subject to the approval of the Councilors per City Charter, Sec. 19, those listed on Exhibit A to this Resolution as members of the South Shore Fire Station Task Force. NOW, THEREFORE, BE IT RESOLVED by the Councilors of the City Council of the City of Lake Oswego that: Section 1. The persons identified on Exhibit A are approved for appointment to the South Shore Fire Station Task Force created under Resolution 24-38. 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 1st day of October, 2024. AYES: NOES: EXCUSED: ABSTAIN: ___________________________________ Joseph M. Buck, Mayor ATTEST: ___________________________________ Kari Linder, City Recorder APPROVED AS TO FORM: ________________________________ Ellen Osoinach, City Attorney ATTACHMENT 1 CITY COUNCIL Exhibit A to Resolution 24-39 South Shore Fire Station Task Force Appointments October 1, 2024 (term expires March 1, 2025) 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY 1.City Council Liaison (non-voting): Councilor Trudy Corrigan 2.Labor Liaison (non-voting): Jonathan Isbell, Lieutenant 3.Hallinan Neighborhood Representative: Christian Manz 4.McVey-South Shore Neighborhood Representative: Ellen Steel 5.Palisades Neighborhood Representative: Chris Durkee 6.Mary’s Woods Representative: Patrick Cechini 7.Lake Grove Fire District Representative: Jonathan Harrell 8.Chamber of Commerce Representative: Pakin Chanyapakorn 9.Budget Committee Representative: Carrie Love 10.DEI Advisory Board Representative: Ginny Perelson 11.Sustainability Advisory Board Representative: Buzz Chandler 12.At-Large, Youth: Aidan Shannon 13.At-Large, Youth: Dashel Hinrichs 14.At-Large: Gabriella Tuna Garamvolgyi G. Roman 15.At-Large: Jeff Gudman 16.At-Large: Karen Sampson 17.At-Large: Kianna Angelo 18.At-Large: Jim Wolper 19.At-Large: Mignon Reynolds 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: Ordinance 2940, Establishing a Privilege Tax on Electric Utilities Meeting Date: October 1, 2024 Report Date: September 24, 2024 Staff Members: Shawn Cross, Finance Director Ellen Osoinach, City Attorney Department: Finance, 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 a 1.5% privilege tax on PGE’s gross revenue in the City. Recommended Language for Motion: Move to enact Ordinance 2940. Project / Issue Relates To: Compensation for PGE use of the city’s Right of Way Issue before Council (Highlight Policy Question): ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable ISSUE BEFORE COUNCIL Should the City impose a 1.5% privilege tax on gross revenue received by PGE from its customers within the City? BACKGROUND Lake Oswego, like all other Oregon cities, has the authority to regulate the use of the public right-of-way (ROW) and receive compensation from utilities like PGE for using public property. In January 2019, the City adopted a 5% ROW usage fee for all utilities. However, PGE was under a franchise agreement that didn’t expire until 2023, so the 5% fee didn’t apply to them in 2019. The City originally planned to switch PGE to the ROW Code after the franchise expired, but PGE 9.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY preferred to continue using a franchise agreement because it is easier to manage and provides consistency. Since there is no significant legal difference between regulating PGE through a franchise or the Chapter 51 ROW Code, the City agreed to negotiate a new franchise agreement. Per the new franchise agreement contained in Resolution 24-42, PGE pays the City the maximum franchise fee allowed by state law: 3.5% of the gross revenue received by PGE from its customers within the City. Per state law, a “franchise fee” may not exceed 3.5% of gross but cities may raise the effective rate of compensation by imposing a “privilege tax” of up to 2.5%. In other words, to collect the full 5% the City intended, the City must adopt a 1.5% privilege tax for electric utilities. DISCUSSION PGE is the City's largest utility and only electricity provider. Pursuant to their franchise agreement, PGE paid $1,373,232 in FY 2023-24 at the 3.5% rate. Increasing the effective rate to 5% would generate approximately $650,000 more in annual revenue for the General Fund, an amount already factored into the 2023-25 biennial budget when the City anticipated switching PGE to the ROW Code which imposes 5% of gross on ROW users. Current rates for neighboring jurisdictions: • Portland: 5% • West Linn: 5% • Milwaukie: 5% • Oregon City: 5% • Tualatin: 3.5% • Tigard: 5% • Beaverton: 5% ADVANTAGES AND DISADVANTAGES 1. Raising the effective rate to 5% on PGE gross revenue in the city: • Advantage: Adds $650,000 annually to the General Fund, aligning PGE’s effective rate with the ROW percentages applied to other utilities. • Disadvantage: Adds 1.5% increase to PGE customer bills because PGE passes along these fees and taxes directly to customers. 2. Imposing only a franchise fee of 3.5% on PGE gross revenue in the city: • Advantage: Avoids passing the tax increase to customers. • Disadvantage: Reduces budget flexibility by excluding the additional revenue. Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY FISCAL IMPACT Increasing the franchise fee to 5% would generate approximately $650,000 more for the General Fund annually, with potential growth based on future PGE rate increases. RECOMMENDATION Move to enact Ordinance 2940 imposing a 1.5% privilege tax on PGE’s gross revenue in the City. ATTACHMENT 1. Ordinance 2940, Establishing a Privilege Tax on Electric Utilities Ordinance 2940 Page 1 of 2 ORDINANCE 2940 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO ESTABLISHING A PRIVILEGE TAX ON ELECTRIC UTILITIES. The City of Lake Oswego ordains as follows: Section 1. The Lake Oswego Code is hereby amended to add a new Chapter or Article as follows: PRIVILEGE TAX ON ELECTRIC UTILITIES In General XX.xx.010 Privilege Tax Imposed. For the privilege of occupying and using the public rights of way within the City, a tax of one and one-half percent (1.5%) is imposed on the gross revenues received by any supplier of electrical energy to customers within the City that has a franchise from the City. The privilege tax shall be in addition to, not in lieu of, any franchise fees required from the supplier of electrical energy by franchise agreement. XX.xx.020 Definition. “Gross Revenues" means any and all revenues derived by any supplier of electrical energy to customers within the City from the supplier’s Electric System, and includes, but is not limited to, the sale of and use of electricity and electric services, and the use, rental, or lease of electrical facilities, after adjustment for the net write-off of uncollectible accounts. Gross Revenues do not include proceeds from the sale of bonds, mortgages or other evidence of indebtedness, securities or stocks, any amounts collected from electrical energy customers that are subsequently passed through to one or more third party entities pursuant to law or a tariff, or sales at wholesale by one public utility to another of electrical energy when the utility purchasing such electrical energy is not the ultimate consumer. Gross Revenues also do not include revenue from joint pole use. For purposes of this [Chapter or Article], revenue from joint pole use includes any revenue collected by the electrical energy supplier from other franchisees, permittees, or licensees of the City for the right to attach wires, cable or other facilities or equipment to the electrical energy supplier’s poles or place them in the electrical energy supplier’s conduits. For purposes of this [Chapter or Article], revenue from joint pole use does not include rental or other similar revenue collected by the electrical energy supplier from other franchises, permittees, or licensees of the City for the right to pole attachments for small cell wireless antennas and distributed antenna systems (DAS). XX.xx.030 Collection of Tax. ATTACHMENT 1 Ordinance 2940 Page 2 of 2 Payment of the taxes imposed by this Article shall be due on or before the 1st day of April each year for taxes imposed during the previous calendar year. Section 2. 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. Section 3. The City Attorney shall determine the appropriate enumeration and placement of this Chapter or Article in the Lake Oswego City Code. Enacted at the regular meeting of the City Council of the City of Lake Oswego held on the ______ day of ________________, 2024. AYES: NOES: ABSTAIN: EXCUSED: ___________________________________ Joseph M. Buck, Mayor ATTEST: ___________________________________ Kari Linder, City Recorder APPROVED AS TO FORM: ________________________________ Ellen Osoinach, City Attorney 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Subject: FEMA National Flood Insurance Program (NFIP) – Endangered Species Act (ESA) Integration in Oregon Meeting Date: October 1, 2024 Report Date: September 18, 2024 Staff Members: Michael McNamee, Associate Planner Stefan Broadus, Assistant City Engineer Departments: Planning, 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: Direct staff to: •Notify FEMA that Lake Oswego is proceeding with NFIP Pre-Implementation Measure Option 1 and; •Draft proposed code amendments consistent with the FEMA model ordinance Recommended Language for Motion: Move to direct staff to: •Notify FEMA that Lake Oswego is proceeding with NFIP Pre-Implementation Measure Option 1 and; •Draft proposed code amendments consistent with the FEMA model ordinance Project / Issue Relates To: Comprehensive Plan, Community Health & Public Safety / Natural Hazards section, Policy B-2. Issue before Council (Highlight Policy Question): Shall the City continue as a participating community in the National Flood Insurance Program by selecting one of three NFIP – ESA Integrations Options? ☐Council Goals/Priorities ☐Adopted Master Plan(s)☒Not Applicable EXECUTIVE SUMMARY The Federal Emergency Management Agency (FEMA) is integrating requirements under the Endangered Species Act (ESA) into the National Flood Insurance Program (NFIP). In particular, the EPA requires the protection of salmon and steelhead habitat. Full implementation of the ESA 10.1 Page 2 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY requirements is currently estimated by FEMA to happen in 2027. In the meantime, FEMA is requiring localities that wish to maintain eligibility for the NFIP to select from one of three “pre- implementation compliance measures” (PICMs). Localities must select a PICM option by December 1, 2024, with data collection from new development in the Flood Management Area (Special Flood Hazard Areas) to begin on January 31, 2025. Full implementation of the chosen PICM option must be complete by July 31, 2025. BACKGROUND NFIP and Endangered Species Act FEMA is required to consider whether NFIP activities affect listed threatened or endangered species protected by the ESA. FEMA is required to consult with the National Marine Fisheries Service (NMFS) when any action the agency carries out, funds, or authorizes may affect a listed endangered or threatened species or adversely modify the habitat of such species. In 2009, the Portland Audubon Society (now Bird Alliance of Oregon) sued FEMA, alleging the agency failed to consult with NMFS on the impacts of implementing the NFIP in Oregon on listed species present in the state’s watersheds. A settlement agreement was reached in 2010, and informal consultation with NMFS started soon after. On April 4, 2016, NMFS issued a Biological Opinion (BiOp), concluding the NFIP in Oregon was likely to jeopardize the critical habitat and continued existence of 16 ESA- protected anadromous fish species and the Southern Resident Killer Whale. The Reasonable and Prudent Alternative (RPA) included within the BiOp proposed alternative approaches to NFIP performance standards that, when implemented, would avoid continued jeopardy for the listed species and habitat described in the BiOp.1 The NFIP is a voluntary insurance program; almost all cities and counties in Oregon that are subject to flooding participate in the NFIP.2 2024 NFIP ESA Oregon Implementation Plan The recent NFIP changes stem from the need for compliance with the ESA. The purpose of these changes specifically is for applicants to demonstrate that their development in the floodplain will not result in a net loss of habitat for endangered species in Oregon through a habitat assessment. The main rule for this is “no net loss,” meaning either through alteration of construction plans or mitigation efforts, the end result of the project will not result in any loss of habitat for critically endangered species. Conditional Letter of Map Revision Based on Fill Processing Delay In a letter dated July 15, 2024, FEMA also notified the City that as “a part of the PICM, FEMA will implement a delay in the processing of two types of Letters of Map Changes in the Oregon NFIP-ESA Implementation Plan area, specifically Letters of Map Changes associated with the placement of fill in the floodplain: Conditional Letter of Map Revision Based on Fill (CLOMR-F) and Letter of Map 1 Summarized from FEMA Draft Oregon Implementation Plan, pgs. 1-2. 2 DLCD webpage: https://www.oregon.gov/lcd/NH/Pages/NFIP.aspx Page 3 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Revision Based on Fill (LOMR-F) requests… This delay in processing will begin on August 1, 2024, and will be in place until the Final Implementation Plan is released” which FEMA anticipates will be released by 2026. DISCUSSION Lake Oswego Comprehensive Plan, Community Health & Public Safety / Natural Hazards section, Policy B-2 states: Continue to participate in the National Flood Insurance Program and comply with Federal Emergency Management Agency (FEMA) standards. Additionally, Oregon Statewide Planning Goal 7 (Areas Subject to Natural Hazards) states: Local governments will be deemed to comply with Goal 7 for coastal and riverine flood hazards by adopting and implementing local floodplain regulations that meet the minimum National Flood Insurance Program (NFIP) requirements. FEMA Options FEMA has provided three options for communities to comply with the new NFIP requirements: 1. Adopt a model ordinance provided by FEMA, through amendments to LOC 50.05.011 Flood Management Area, to implement the NFIP ESA implementation measures. The model ordinance includes performance standards regarding “no net loss” to flood storage, water quality, and riparian vegetation from new development impacts in the Flood Management Area, to address the habitat assessments and mitigation options. This is the preferred option by City staff because it identifies specific indicators and states the parameters to be measured, resulting in clearer and more objective standards, and is expected to result in lower cost for analysis by applicants and lower cost for review by city staff or retained consultants, as compared to Option 2. Attachment 1 is a working draft of the proposed code amendments, based upon the FEMA model ordinance. 2. Require a “permit-by-permit” approach where applicants must provide a Floodplain Habitat Assessment documenting that their proposed development will achieve “no net loss.” Each floodplain development permit must be reviewed for potential impacts to species and habitat. This option puts the onus on the applicant to procure a satisfactory habitat assessment and demonstrate the “no net loss” standard for their project. Because the entirety of the impacts upon the fish and its habitat would need to be considered, staff anticipates that this would result in higher cost to applicants as well as greater cost for review by the City’s staff / retained consultants, as compared to Option 1. 3. Prohibit all new development in the floodplain. Page 4 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY This option could result in a regulatory taking, whereby the use of private property in the floodplain is so restricted that property owners essentially cannot use it. This would create the risk of legal action being taken against the City by property owners in the floodplain. Moreover, this option would ban development in a large swath of the city at a time when at least 2,000 housing units need to be constructed in Lake Oswego over the next 20 years per the City’s Housing Needs Analysis (adopted in 2023) to meet current and future housing demand. Future City projects such as the Wastewater Treatment Facility and the redevelopment of the Foothills area could also be impacted by taking this option. Schedule FEMA is requiring jurisdictions to submit a decision on which Option they would like to take by December 1st, 2024. If we do not select an Option before December 1, we will default to the permit- by-permit option until a different path is adopted. Data collection must begin by January 31, 2025. The data to be collected from each new development after January 31 consists of: • Amount of fill, compensatory storage, and new impervious surfaces. • Area of clearing and grading. • Trees removed greater than six inches diameter. • Track acres disconnected or reconnected from the floodplain. • Mitigation provided. Although FEMA’s PICM states that implementation of the selected path is required by July 31, 2025, because the city would be required to report on effects of developments beginning on January 31, 2025, staff finds that implementation (code amendments to obtain the data) must actually occur before January 31, 2025. City Projects and CLOMR-F Processing Delay This processing delay could have significant impacts to proposed projects that require a letter for fill in the floodplain, perhaps most notably the Wastewater Treatment Facility (WWTF) to replace the existing Tryon Creek Wastewater Treatment Plant. The EPCOR Foothills Water Partners (EFWP) submitted a Permitting Plan in October 2023 that noted a CLOMR-F and a LOMR-F will be required for the project due to the proposed fill in the floodplain. While the City elected not to proceed to construction with EFWP, it is highly likely that the eventual final design will continue to propose fill in the floodplain and the requirement for a CLOMR-F and LOMR-F will remain. The WWTF project team is coordinating with FEMA to minimize the schedule impacts from this processing delay. ALTERNATIVES The City could choose not to comply with any of the three PICM options, which would place Lake Oswego out of compliance with the National Flood Insurance Program (NFIP). As a result, property owners would no longer be eligible for new flood insurance policies or renewal of existing policies under the program. Property owners would still have access to private flood insurance. Page 5 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY As noted in the Discussion section, the Comprehensive Plan would need to be amended if the City chose to fall out of compliance with the NFIP requirements. The Comprehensive Plan currently states that the City should maintain compliance with the NFIP, so that provision would need to be removed. The City would also have to demonstrate compliance with Statewide Planning Goal 7, Areas Subject to Natural Hazards. A locality can be considered compliant with Goal 7 if they follow all NFIP requirements, but if they are not compliant with the NFIP they can demonstrate compliance with Goal 7 using additional standards listed in the regulations. It should be noted that falling out of compliance with the NFIP does not mean that private property owners would not have to comply with the Endangered Species Act. They would still have to demonstrate no net loss of salmon and steelhead population for new development. The onus would be placed fully on property owners rather than the City, which could result in noncompliance through ignorance on the part of private property owners. FISCAL IMPACT There is no fiscal impact to the City in deciding which Option to pursue. Note: This Fiscal Impact statement relates only to the City’s direct costs of the recommendation, not of the possible additional costs for applicant compliance and City review under Options 1 and 2. If the Council elects to proceed with Option 1 or 2, when implemented, there would be additional staff resources needed to review development applications in Flood Management Areas, and the Council may then consider additional fees for that review. RECOMMENDATION Staff recommends the Council direct staff to: • Notify FEMA that Lake Oswego is proceeding with NFIP Pre-Implementation Measure Option 1 and; • Draft proposed code amendments consistent with the FEMA model ordinance ATTACHMENT 1. Working Draft Code Amendments to LOC 50.05.11 (per FEMA Model Ordinance) LOC 50.05.011 Flood Management Area Page 1 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 § 50.05.011. Flood Management Area. 1.Applicability. This section applies to the lands within the "flood management area" and is applied when development occurs within the "flood management area." All development within special flood hazard areas ("flood management area") is subject to the terms of this section and other applicable regulations. A development permit shall be obtained before construction or development begins within any area horizontally within the mapped flood management area as defined in subsection 3 of this section, Definitions, and as the referenced maps are amended per subsection 4 of this section, Map Administration. The development permit shall be required for all structures, including manufactured dwellings, and for all other development, as defined in subsection 3 of this section, Definitions, and LOC § 50.10.003.2, Definition of Terms, including fill and other development activities. 2.Purpose; Abrogation; Rules of Interpretation; Warning; Disclaimer of Liability. a.Purpose. It is the purpose of this section to promote public health, safety, and general welfare, and to minimize public and private losses due to flooding in flood hazard areas by provisions designed to: i.Protect human life and health; ii.Notify potential buyers that the property is in a special flood hazard area; and iii.Preserve natural and beneficial floodplain functions; and iii.iv. Participate in and maintain eligibility for flood insurance and disaster relief. b.Abrogation. In addition to LOC § 50.01.002.4, this section is not intended to repeal, abrogate, or impair any existing easements, covenants, or deed restrictions. However, where this section and another Code provision, easement, covenant, or deed restriction conflict or overlap, whichever imposes the more stringent restrictions shall prevail. c.Interpretation. In the interpretation and application of this section, all provisions shall be: i.Considered as minimum requirements; ii.Liberally construed in favor of the City; and iii.Deemed neither to limit nor repeal any other powers granted under state statutes. d.Warning. The degree of flood protection required by this section is considered reasonable for regulatory purposes and is based on scientific and engineering considerations. Larger floods can and will occur on rare occasions. Flood heights may be increased by manmade or natural causes. These flood management standards do not imply that land outside the areas of special flood hazards or uses permitted within such areas will be free from flooding or flood damages. e.Disclaimer of Liability. This section shall not create liability on the part of the City of Lake Oswego, any officer or employee thereof, or the Federal Insurance Administrator for any flood damages that result from reliance on the provisions of this section or any administrative decision lawfully made hereunder. ATTACHMENT 1 LOC 50.05.011 Flood Management Area Page 2 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 3. Definitions. Unless specifically defined below, words or phrases used in this section shall be interpreted so as to give them the meaning they have in common usage. For purposes of this section, the following definitions shall apply: APPURTENANT STRUCTURE "Appurtenant structure" means a structure that is on the same parcel or lot as the principal structure and the use of which is incidental to the use of the principal structure. (Note: Also referred to as "accessory structure" in other articles within this Code.) AREA OF SHALLOW FLOODING A designated Zone AO, AH, AR/AO or AR/AH on the Flood Insurance Rate Map (FIRM) with a one percent or greater annual chance of flooding to an average depth of one to three feet where a clearly defined channel does not exist, where the path of flooding is unpredictable, and where velocity flow may be evident. Such flooding is characterized by ponding or sheet flow. AREA OF SPECIAL FLOOD HAZARD The land in the floodplain subject to a one percent or greater chance of flooding in any given year. It is shown on the Flood Insurance Rate Map (FIRM) as Zone A, AO, AH, A1-30, AE, A99, and AR. "Special flood hazard area" is synonymous in meaning and definition with the phrase "area of special flood hazard." BASE FLOOD The flood having a one percent chance of being equaled or exceeded in any given year. BASE FLOOD ELEVATION (BFE) The elevation to which floodwater is anticipated to rise during the base flood, per FEMA designation. BREAKAWAY WALL A wall that is not part of the structural support of the building and is intended through its design and construction to collapse under specific lateral loading forces, without causing damage to the elevated portion of the building or supporting foundation system. CRAWLSPACE (BELOW-GRADE) An enclosed area below the base flood elevation in which the interior grade is not more than two feet below the lowest adjacent exterior grade and the height, measured from the interior grade of the crawlspace to the top of the crawlspace foundation, does not exceed four feet at any point. DESIGN FLOOD ELEVATION (LODFE) One foot above either the base flood elevation or the 1996 Flood Inundation Areas (Map D, below), whichever is higher. FILLING (FILL) See definition of "fill" in LOC § 50.10.003.2. LOC 50.05.011 Flood Management Area Page 3 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 FILL (Definition limited to LOC 50.05.011) Placement of any materials such as soil, gravel, crushed stone, or other materials that change the elevation of the floodplain. The placement of fill is considered “development.” FISH ACCESSIBLE SPACE The volumetric space available to fish to access. FISH EGRESS-ABLE SPACE The volumetric space available to fish to exit or leave from. FLOOD OR FLOODING A general and temporary condition of partial or complete inundation of normally dry land area from: a. The overflow of inland or tidal waters; b. The unusual and rapid accumulation of runoff of surface waters from any source; or c. Mudslides (i.e., mudflows) which are proximately caused by flooding due to unusual and rapid accumulation of runoff of surface waters from any source and are akin to a river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water and deposited along the path of the current. The collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels or suddenly caused by an unusually high water level in a natural body of water, accompanied by a severe storm, or by an unanticipated force of nature, such as flash flood or an abnormal tidal surge, or by some similarly unusual and unforeseeable event which results in flooding due to overflow of inland or tidal waters. FLOOD INSURANCE RATE MAP (FIRM) The official map on which the Federal Insurance Administrator has delineated both the areas of special flood hazards and the risk premium zones applicable to Lake Oswego. A FIRM that has been made available digitally is called a Digital Flood Insurance Rate Map (DFIRM). FLOOD INSURANCE STUDY (FIS) An examination, evaluation and determination of flood hazards and, if appropriate, corresponding water surface elevations, or an examination, evaluation and determination of mudslide (i.e., mudflow) and/or flood-related erosion hazards. FLOOD MANAGEMENT AREA The areas depicted on the Flood Management Area Maps, Figures 50.05.011-A to 50.05.011-D. (In the event the maps show the same general area, the mapped areas that have the higher mapped flood elevation shall prevail.) The Flood Management Area Map shows: a. FEMA MAPPED AREAS i. 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; LOC 50.05.011 Flood Management Area Page 4 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 ii. FIRM, as issued by FEMA at the time of last amendment of the Flood Management Area Map was effective pursuant to subsection 4 of this section; and which are hereby adopted by reference and declared to be a part of this article. b. 1996 FLOOD AREAS The area inundated during the February 1996 flood along the Willamette River as shown on Figure 50.05.011-D, which is based on the flood elevation data available at the Engineering Department. The 1996 Flood Areas will be used for regulatory purposes; provided, that the data is at least as restrictive as the FEMA Mapped Areas, subsection a of this definition. FLOODPROOFING Any combination of structural and nonstructural additions, changes, or adjustments to structures which reduce or eliminate risk of flood damage to real estate or improved real property, water and sanitary facilities, structures, and their contents. FLOODWAY The channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than a designated height, as determined in the Flood Insurance Study. Also referred to as "regulatory floodway." FLOODWAY FRINGE The area of the floodplain lying outside the floodway. FUNCTIONALLY DEPENDENT USE A use that cannot perform its intended purpose unless it is located or carried out in close proximity to water. The term includes only docking facilities, port facilities that are necessary for the loading and unloading of cargo or passengers, and ship building and ship repair facilities, and does not include long-term storage or related manufacturing facilities. GREEN INFRASTRUCTURE Use of natural or human-made hydrologic features to manage water and provide environmental and community benefits. Green infrastructure uses management approaches and technologies that use, enhance, and/or mimic the natural hydrologic cycle processes of infiltration, evapotranspiration, and reuse. At a large scale, it is an interconnected network of green space that conserves natural systems and provides assorted benefits to human populations. At a local scale, it manages stormwater by infiltrating it into the ground where it is generated using vegetation or porous surfaces, or by capturing it for later reuse. Green infrastructure practices can be used to achieve no net loss of pervious surface by creating infiltration of stormwater in an amount equal to or greater than the infiltration lost by the placement of new impervious surface. HABITAT RESTORATION ACTIVITES Activities with the sole purpose of restoring habitats that have only temporary impacts and long- term benefits to habitat. Such projects cannot include ancillary structures such as a storage shed for maintenance equipment, must demonstrate that no rise in the BFE would occur as a result of the project and obtain a CLOMR and LOMR, and have obtained any other requirement permits (e.g., CWA Section 404 permit). LOC 50.05.011 Flood Management Area Page 5 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 HAZARD TREES (Definition limited to LOC 50.05.011) Standing dead, dying, or diseased trees or ones with a structural defect that makes it likely to fail in whole or in part and that present a potential hazard to a structure or as defined by the community. HAZARDOUS MATERIAL "Hazardous material" is any of the following: a. Hazardous waste as defined in ORS 466.005; b. Radioactive waste as defined in ORS 469.300, radioactive material identified by the Energy Facility Siting Council under ORS 469.605 and radioactive substances defined in ORS 453.005; c. Communicable disease agents as regulated by the Health Division under ORS Chapter 431 and ORS 433.010 to 433.045 and 433.106 to 433.990; d. Hazardous substances designated by the United States Environmental Protection Agency (EPA) under Section 311 of the Federal Water Pollution Control Act, P.L. 92-500, as amended; e. EPA in Section 40 of the Code of Federal Regulations, Part 302 — ode of Federal Regulations, Part 302 – Table 302.4 (list of Hazardous Substances and Reportable Quantities) and amendments; f. Material regulated as a chemical agent under ORS 465.550; g. Material used as a weapon of mass destruction, or biological weapon; h. Pesticide residue; i. Dry cleaning solvent as defined by ORS 465.200(9). HIGHEST ADJACENT GRADE The highest natural elevation of the ground surface prior to construction next to the proposed walls of a structure. HISTORIC STRUCTURE A landmark or contributing resource structure, or National Register property, as defined in LOC § 50.10.003.2, Definitions. HYDRAULICALLY EQUIVALENT ELEVATION A location (e.g., a site where no net loss standards are implemented) that is approximately equivalent to another (e.g., the impacted site) relative to the same 100-year water surface elevation contour or base flood elevation. This may be estimated based on a point that is along the same approximate line perpendicular to the direction of flow. HYDROGLOGICALLY CONNECTED The interconnection of groundwater and surface water such that they constitute one water supply and use of either results in an impact to both. IMPERVIOUS SURFACE (Definition limited to LOC 50.05.011) LOC 50.05.011 Flood Management Area Page 6 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 A surface that cannot be penetrated by water and thereby prevents infiltration and increases the amount and rate of surface water runoff, leading to erosion of stream banks, degradation of habitat, and increased sediment loads in streams. Such surfaces can accumulate large amounts of pollutants that are then “flushed” into local water bodies during storms and can also interfere with recharge of groundwater and the base flows to water bodies. LOW IMPACT DEVELOPMENT (Definition limited to LOC 50.05.011) An approach to land development (or redevelopment) that works with nature to manage stormwater as close to its source as possible. It employs principles such as preserving and recreating natural landscape features and minimizing effective imperviousness to create functional and appealing site drainage that treats stormwater as a resource rather than a waste product. Low Impact Development refers to designing and implementing practices that can be employed at the site level to control stormwater and help replicate the predevelopment hydrology of the site. Low impact development helps achieve no net loss of pervious surface by infiltrating stormwater in an amount equal to or greater than the infiltration lost by the placement of new impervious surface. LID is a subset of green infrastructure. LOWEST FLOOR The lowest floor of the lowest enclosed area (including basement). An unfinished or flood-resistant enclosure, usable solely for parking of vehicles, building access or storage in an area other than a basement area, is not considered a building’s lowest floor; provided, that such enclosure is not built so as to render the structure in violation of the applicable nonelevation design requirements of this ordinance.1 MANUFACTURED DWELLING A structure, transportable in one or more sections, which is built on a permanent chassis and is designed for use with or without a permanent foundation when attached to the required utilities. The term "manufactured dwelling" does not include a "recreational vehicle" and is synonymous with "manufactured home." MANUFACTURED DWELLING PARK OR SUBDIVISION A parcel (or contiguous parcels) of land divided into two or more manufactured dwelling lots for rent or sale. MEAN HIGHER-HIGH WATER The average of the higher-high water height of each tidal day observed over the National Tidal Datum Epoch. MEAN SEA LEVEL "Mean sea level" and other references to elevations are based on the National Geodetic Vertical Datum (NGVD) of 1929 or other datum, to which base flood elevations shown on Lake Oswego Flood Insurance Rate Map are referenced. NEW CONSTRUCTION "New construction" means structures for which the "start of construction" commenced on or after October 13, 1981, and includes any subsequent improvements to such structures. 1 Editor’s Note: "This ordinance" is the text adopted by Ord. 2847, enacting new and amendments to the flood management area provisions (LOC § 50.05.011) and related sections. LOC 50.05.011 Flood Management Area Page 7 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 NO NET LOSS A standard where adverse impacts must be avoided or offset through adherence to certain requirements so that there is no net change in the function from the existing condition when a development application is submitted to the state, tribal, or local jurisdiction. The floodplain functions of floodplain storage, water quality, and vegetation must be maintained. OFFSITE Mitigation occurring outside of the project area. ONSITE Mitigation occurring within the project area. ORDINARY HIGH WATER MARK The line on the shore established by the fluctuations of water and indicated by physical characteristics such as a clear, natural line impressed on the bank; shelving; changes in the character of soil; destruction of terrestrial vegetation; the presence of litter and debris; or other appropriate means that consider the characteristics of the surrounding areas. OSWEGO LAKE Oswego Lake includes the main lake and all embayments and canals that have the same elevation as the main lake. QUALIFIED PROFESSIONAL Appropriate subject matter expert that is defined by the City Engineer. REACH A section of a stream or river along which similar hydrologic conditions exist, such as discharge, depth, area, and slope. It can also be the length of a stream or river 9withy varying conditions) between major tributaries or two stream gages, or a length of river for which the characteristics are well described by readings at a single stream gage. RECREATIONAL VEHICLE A vehicle that is: a. Built on a single chassis; b. Four hundred square feet or less when measured at the largest horizontal projection; c. Designed to be self-propelled or permanently towable by a light duty truck; and d. Designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational, camping, travel, or seasonal use. RIPARIAN (Definition limited to LOC 50.05.011) Of, adjacent to, or living on, the bank of a river, lake, pond, or other water body. RIPARIAN BUFFER ZONE (RBZ) (Definition limited to LOC 50.05.011) The outer boundary of the riparian buffer zone is measured from the ordinary high water line of a fresh waterbody (lake; pond; ephemeral, intermittent, or perennial stream) or mean higher-high LOC 50.05.011 Flood Management Area Page 8 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 water line of a marine shoreline or tidally influenced river reach to 170 feet horizontally on each side of the stream or 170 feet inland from the MHHW (Marine Higher-High Water line). The riparian buffer zone includes the area between these outer boundaries on each side of the stream, including the stream channel. Where the RBZ is larger than the special flood hazard area, the no net loss standards shall only apply to the area within the special flood hazard area. RIPARIAN BUFFER ZONE FRINGE The area outside of the RBZ and floodway but still within the SFHA. SILVICULTURE (Definition limited to LOC 50.05.011) The art and science of controlling the establishment, growth, composition, health, and quality of forests and woodlands. SPECIAL FLOOD HAZARD AREA See "area of special flood hazard" for this definition. START OF CONSTRUCTION Includes substantial improvement and means the date the building permit was issued, provided the actual start of construction, repair, reconstruction, rehabilitation, addition, placement, or other improvement was within 180 days from the date of the permit. The "actual start" means either the first placement of permanent construction of a structure on a site, such as the pouring of slab or footings, the installation of piles, the construction of columns, or any work beyond the stage of excavation; or the placement of a manufactured dwelling on a foundation. Permanent construction does not include land preparation, such as clearing, grading, and filling; nor does it include the installation of streets and/or walkways; nor does it include excavation for a basement, footings, piers, or foundations or the erection of temporary forms; nor does it include the installation on the property of accessory buildings, such as garages or sheds not occupied as dwelling units or not part of the main structure. For a substantial improvement, the "actual start of construction" means the first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects the external dimensions of the building. STRUCTURE A walled and roofed building, including a gas or liquid storage tank, principally above ground, as well as a manufactured dwelling. SUBSTANTIAL DAMAGE Damage of any origin sustained by a structure whereby the cost of restoring the structure to its before-damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. SUBSTANTIAL IMPROVEMENT Any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the "start of construction" of the improvement. This term includes structures which have incurred "substantial damage," regardless of the actual repair work performed. The term does not, however, include either: a. Any project for improvement of a structure to correct existing violations of state or local health, sanitary, or safety code specifications which have been identified by the City enforcement official and which are the minimum necessary to assure safe living LOC 50.05.011 Flood Management Area Page 9 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 conditions; or b. Any alteration of a "historic structure"; provided, that the alteration will not preclude the structure’s continued designation as a "historic structure." UNDEVELOPED SPACE The volume of flood capacity and fish-accessible/egress-able habitat from the existing ground to the Base Flood Elevation that is undeveloped. Any form of development including, but not limited to, the addition of fill, structures, concrete structures (vaults or tanks), pilings, levees and dikes, or any other development that reduces flood storage volume and fish accessible/egress-able habitat must achieve no net loss. VARIANCE A grant of relief pursuant to subsection 8 of this section from the terms of a floodplain management regulation. WATERCOURSE A bed or channel of a riverine drainageway such as a river, stream, creek, or brook. // // // LOC 50.05.011 Flood Management Area Page 10 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 Figure 50.05.011-A: Flood Management Area Map A LOC 50.05.011 Flood Management Area Page 11 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 Figure 50.05.011-B: Flood Management Area Map B LOC 50.05.011 Flood Management Area Page 12 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 Figure 50.05.011-C: Flood Management Area Map C LOC 50.05.011 Flood Management Area Page 13 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 Figure 50.05.011-D: Flood Management Area Map D LOC 50.05.011 Flood Management Area Page 14 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 4. Map Administration. The purpose of this section is to outline the process for amending the Flood Management Area Map, Figures 50.05.011-A to 50.05.011-D. a. Revision of FIRM (Figures 50.05.011-A to 50.05.011-C). If amendments to the Flood Management Area Map are due to changes to the Special Flood Hazards Areas depicted on Flood Insurance Rate Maps of the National Flood Insurance Program or by Letter of Map Revision (but not including Letter of Map Revision – Fill (LOMR-F)), the amendment shall be dependent upon successful compliance with the map and revision process of the National Flood Insurance Program (44 CFR 65). When an applicant proposes to revise the FIRM, including as a result of a Letter of Map Revision (LOMR) but not including by a LOMR-F, a public hearing shall be held, and notice given in the same manner as for subsection 4.b of this section. The amendment of the Flood Management Area Map shall be recommended by the Planning Commission, and amended by the City Council upon finding that the map revision process of the National Flood Insurance Program (44 CFR 65) was followed and that FEMA has revised the FIRM by the LOMR process. b. Revision of 1996 Flood Map (Figure 50.05.011-D). i. When an applicant proposes revision of the 1996 Flood Map (Figure 50.05.011-D), the application shall be processed per LOC § 50.07.003.16 either as a legislative decision or as a quasi-judicial decision. The criteria to adopt the revision shall be as provided in subsection 4.b.ii of this section and provisions of LOC § 50.07.003.16.b, including applicable Policies in Sections A and B of the Natural Hazards section of the Comprehensive Plan and LCDC Goal 7. The manner of public notice, and of public hearing before the Planning Commission and City Council shall be: (1) Legislative Decision: See LOC § 50.07.003.16. (2) Quasi-Judicial Decision: As provided for major developments in LOC § 50.07.003.15.c. ii. The 1996 Flood Map (Figure 50.05.011-D) shall be revised if an applicant demonstrates there is an error in the existence or location of the 1996 Flood Areas. A public hearing shall be held before the Planning Commission for recommendation to the City Council. The City Manager shall provide notice of the public hearing at which the Planning Commission will review the error for compliance with this section. Notice of the hearing shall be sent to property owners who have property that will be included or withdrawn from the Flood Management Area as a result of the change. Notice of the public hearing shall be given in the manner required by LOC § 50.07.003.16.e, except that notice shall also be mailed to owners of property within 100 feet of the affected properties. Following the public hearing, the Planning Commission shall make a recommendation to the City Council as to whether the 1996 Flood Map boundaries should be changed. 5. Development Review. LOC 50.05.011 Flood Management Area Page 15 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 a. Authority and Criteria. Development review is required for all development proposed within the flood management area. The reviewing authority shall review all development permits to: i. Determine that the permit requirements of this section have been satisfied; ii. Determine that all other required local, state, and federal permits have been obtained and approved; iii. Determine if the proposed development is located in a floodway. If located in the floodway assure that the floodway provisions in subsection 6.b.xi of this section, Encroachment within Floodway, are met; and iv. Determine if the proposed development is located in an area where base flood elevation (BFE) data is available either through the Flood Insurance Study (FIS) or from another authoritative source. If BFE data is not available then ensure compliance with the provisions of LOC § 50.07.004.13.b; and v. Provide to building official the design flood elevation (LODFE) applicable to any structure requiring a development permit; vi. Determine if the proposed development qualifies as a substantial improvement as defined in subsection 3 of this section, Definitions; vii. Determine if the proposed development activity is a watercourse alteration. If a watercourse alteration is proposed, ensure compliance with the provisions in subsection 6.b.vii of this section, Alteration or Relocation of Watercourses; viii. Determine if the proposed development activity includes the placement of fill or excavation. ix. Determine whether the proposed development activity complies with the no net loss standards in Section 7. b. Records. The City shall maintain for public inspection: i. All records pertaining to the provisions of this section and the submission documents required by LOC § 50.07.004.13; and i.ii. Documentation of how no net loss standards have been met (see Section 7). [Cross-Reference: See Flood Management Area submittal requirements in LOC § 50.07.004.13.] 6. Flood Management Area Development Standards. The no net loss standards (see Section 7) and the following standards apply to development, including fill, within the flood management area: a. Permitted Development. i. Planting new trees or vegetation excluding plants listed on the Plant List as invasive plants. ii. Restoration or enhancement of floodplains, riparian areas, wetland, upland and streams LOC 50.05.011 Flood Management Area Page 16 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 that meet federal and state standards; provided, that any restoration project which encroaches on the floodway complies with the requirements of subsection 6.b.xi of this section, Encroachment within Floodway. iii. Work necessary to protect, repair, maintain, or replace existing structures, utility facilities, roadways, driveways, accessory uses and exterior improvements in response to emergencies; provided, that within 90 days after the emergency has passed, a development permit application has been filed for approval under the standards and criteria of this section. iv. Except as set forth in subsection 6.b of this section, new culverts, stream crossings, and transportation projects may be permitted if designed as balanced cut and fill projects or designed to not significantly raise the base flood elevation. v. Water dependent uses, such as boathouses, boat docks, decks, boat lifts, piers, or similar structures. When located within the floodway, water dependent uses shall meet the floodway encroachment standards. vi. All uses allowed in the base zone are allowed in the flood management area subject to compliance with this section. vii. Lake-related infrastructure. b. Development Restrictions. In the Flood Management Area, the no net loss standards (see Section 7) and the following standards shall be adhered to: i. Fill. (1) Fill in the Floodway. Fill shall only be placed in the floodway when done in accordance with the floodway encroachment standards of subsection 6.b.xi of this section. (2) Fill – General Provisions. The following standards apply throughout the flood management area: (a) Fill is allowed for the construction of stormwater detention facilities or structures, and other facilities such as levees specifically designed to reduce or mitigate flood impacts. Levees shall not be used to create vacant buildable lands. (b) In areas outside of the floodway, fill is permitted under the following conditions: (i) Fill in quantities of ten cubic yards or less is permitted. (ii) Fill in quantities greater than ten cubic yards is permitted within the floodplain of Oswego Lake and the developed areas of its outlets. Fill in quantities greater than ten cubic yards is permitted elsewhere within the flood management area when balanced with removal of an equal amount of material such as sand, gravel, soil, rock, and building material. Only removal of material below the base flood elevation within the same watershed shall be counted as compensating for fill. LOC 50.05.011 Flood Management Area Page 17 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 (iii) Excavation shall not be counted as compensating for fill if such areas will be filled with water in nonstorm winter conditions. (c) Temporary fill during construction is permitted provided it is removed prior to final inspection. ii. Transportation Projects. New culverts, stream crossings, and transportation projects shall be designed to minimize the area of fill in the flood management area and to minimize erosive velocities to the extent practicable. Stream crossings shall be as close to perpendicular to the stream as practicable. Bridges shall be used instead of culverts wherever practicable. iii. Storage. (1) Hazardous Materials. Uncontained hazardous material or development providing for the storage or processing of materials that are buoyant, flammable, explosive, toxic, or that could be injurious to human, animal, or plant life in time of flooding are prohibited in the flood management area. Exceptions include: (a) Materials that are typically used for household purposes and in quantities that are normal for household use. (b) Materials that are typically used for recreational boat operation and maintenance. For a commercial marina or for sites used for lake maintenance in flood conditions, hazardous materials below the base flood elevation must be contained in watertight and secured containers. For residential use, materials are only allowed in quantities that are typical for residence-based recreational boat activity. (2) Other Storage. Storage of other materials or equipment is allowed in the flood management area if materials or equipment are: (a) Not subject to major damage due to flood; (b) Firmly anchored to prevent flotation; or (c) Readily removable from the area after flood warning. iv. Structures. (1) Residential Construction. (a) New construction and substantial improvement of any residential structure shall have the lowest floor, including basement, elevated to at or above the LODFE. (See subsection 6.b.iv(4) of this section, Appurtenant Structures, for accessory structure.) (b) Fully enclosed areas below the lowest floor and below the design flood elevation that are subject to flooding shall comply with the flood opening requirements in subsection 6.b.iv(6), Flood Openings. (2) Garages. (a) Attached garages may be constructed with the garage floor slab below the LOC 50.05.011 Flood Management Area Page 18 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 design flood elevation (LODFE) in riverine flood zones, if the following requirements are met: (i) If located within a floodway the proposed garage must comply with the requirements of subsection 6.b.xi of this section, Encroachment within Floodway; (ii) The floors are at or above grade on not less than one side; (iii) The garage is used solely for parking, building access, and/or storage; (iv) The garage is constructed with flood openings in compliance with subsection 6.b.iv(6) of this section, Flood Openings, to equalize hydrostatic flood forces on exterior walls by allowing for the automatic entry and exit of floodwater; (v) The portions of the garage constructed below the LODFE are constructed with materials resistant to flood damage; (vi) The garage is constructed in compliance with the standards in this subsection, Flood Management Area Development Standards, and subsection of this section, Standards for Construction; and (vii) The garage is constructed with electrical and other service facilities located and installed so as to prevent water from entering or accumulating within the components during conditions of the base flood. (b) Detached garages must be constructed in compliance with the standards for appurtenant structures in subsection 6.b.iv(4) of this section or nonresidential structures in subsection 6.b.iv(3) of this section depending on the square footage of the garage. (3) Nonresidential Construction. New construction and substantial improvement of any commercial, public use, industrial or other nonresidential structure shall: (a) Have the lowest floor, including a basement, elevated to at or above the LODFE; or (b) Together with attendant utility and sanitary facilities, shall: (i) Be floodproofed to the LODFE, so that the structure is watertight with walls substantially impermeable to the passage of water; (ii) Have structural components capable of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; (iii) Be certified by a registered professional engineer or architect that the design and methods of construction are in accordance with accepted standards of practice for meeting provisions of this subsection based on their development and/ or review of the structural design, specifications and plans. Such certifications shall be provided to the City Manager as set forth in subsection 6.b.iv(2) of this section, Garages; and LOC 50.05.011 Flood Management Area Page 19 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 (c) Nonresidential structures that are elevated, not floodproofed, shall comply with the standards for enclosed areas below the lowest floor in subsection 6.b.iv(6) of this section, Flood Openings. (4) Appurtenant Structures. Relief from elevation or floodproofing requirements for residential and nonresidential structures in riverine (noncoastal) flood zones may be granted for appurtenant structures that meet all of the following: (a) Appurtenant structures located partially or entirely within the floodway must comply with requirements for development within a floodway found in subsection 6.b.xi of this section, Encroachment within Floodway; (b) Appurtenant structures must only be used for parking, access, and/or storage and shall not be used for human habitation; (c) In compliance with Lake Oswego Building Code, appurtenant structures on properties that are zoned residential are limited to one-story structures less than 200 square feet, or 400 square feet if the property is greater than two acres in area and the proposed appurtenant structure will be located a minimum of 20 feet from all property lines. Appurtenant structures on properties that are zoned as nonresidential are limited in size to 120 square feet; (d) The portions of the appurtenant structure located below the LODFE must be built using flood-resistant materials; (e) The appurtenant structure must be adequately anchored to prevent flotation, collapse, and lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy, during conditions of the base flood; (f) The appurtenant structure must be designed and constructed to equalize hydrostatic flood forces on exterior walls and comply with the requirements for flood openings in subsection 6.b.iv(6) of this section, Flood Openings; (g) Appurtenant structures shall be located and constructed to have low damage potential; (h) Appurtenant structures shall not be used to store hazardous material (see subsection 6.b.iii of this section), oil, or gasoline, or any priority persistent pollutant identified by the Oregon Department of Environmental Quality unless confined in a tank installed in compliance with subsection 7.c of this section, Tanks; (i) Appurtenant structures shall be constructed with electrical, mechanical, and other service facilities located and installed so as to prevent water from entering or accumulating within the components during conditions of the base flood. (5) Manufactured Homes. LOC 50.05.011 Flood Management Area Page 20 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 (a) New or substantially improved manufactured dwellings supported on solid foundation walls shall be constructed with flood openings that comply with subsection 6.b.iv(6) of this section, Flood Openings; (b) The bottom of the longitudinal chassis frame beam shall be at or above one foot above the design flood elevation; (c) New or substantially improved manufactured dwellings shall be anchored to prevent flotation, collapse, and lateral movement during the base flood. Anchoring methods may include, but are not limited to, use of over-the-top or frame ties to ground anchors (reference FEMA’s "Manufactured Home Installation in Flood Hazard Areas" guidebook for additional techniques); and (d) Electrical crossover connections shall be a minimum of one foot above the design flood elevation. (6) Flood Openings. All new construction and substantial improvements with fully enclosed areas below the lowest floor (excluding basements) are subject to the following requirements. Enclosed areas below the LODFE, including crawl spaces shall: (a) Be designed to automatically equalize hydrostatic flood forces on walls by allowing for the entry and exit of floodwaters; (b) Be used solely for parking, storage, or building access; (c) Be certified by a registered professional engineer or architect or meet or exceed all of the following minimum criteria: (i) A minimum of two openings, (ii) The total net area of nonengineered openings shall be not less than one square inch for each square foot of enclosed area, where the enclosed area is measured on the exterior of the enclosure walls, (iii) The bottom of all openings shall be no higher than one foot above grade. (iv) Openings may be equipped with screens, louvers, valves, or other coverings or devices; provided, that they shall allow the automatic flow of floodwater into and out of the enclosed areas and shall be accounted for in the determination of the net open area. (v) Any additional higher standards for flood openings in the Lake Oswego Building Code, Oregon Residential Specialty Codes Section R322.2.2, shall be complied with when applicable. (7) Crawlspaces (Below Grade). (a) The building must be designed and adequately anchored to resist flotation, collapse, and lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy. Hydrostatic loads and the effects of buoyancy can usually be addressed through the required flood LOC 50.05.011 Flood Management Area Page 21 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 openings stated in subsection 6.b.iv(6) of this section. Because of hydrodynamic loads, crawlspace construction is not allowed in areas with flood velocities greater than five feet per second unless the design is reviewed by a qualified design professional, such as a registered architect or professional engineer. Other types of foundations are recommended for these areas. (b) The crawlspace is an enclosed area below the LODFE and, as such, must have openings that equalize hydrostatic pressures by allowing the automatic entry and exit of floodwaters. The bottom of each flood vent opening can be no more than one foot above the lowest adjacent exterior grade. (c) Portions of the building below the LODFE must be constructed with materials resistant to flood damage. This includes not only the foundation walls of the crawlspace used to elevate the building, but also any joists, insulation, or other materials that extend below the LODFE. The recommended construction practice is to elevate the bottom of joists and all insulation above LODFE. (d) Any building utility systems within the crawlspace must be elevated above LODFE or designed so that floodwaters cannot enter or accumulate within the system components during flood conditions. Ductwork, in particular, must either be placed above the LODFE or sealed from floodwaters. (e) The interior grade of a crawlspace below the LODFE must not be more than two feet below the lowest adjacent exterior grade. (f) The height of the below-grade crawlspace, measured from the interior grade of the crawlspace to the top of the crawlspace foundation wall, must not exceed four feet at any point. The height limitation is the maximum allowable unsupported wall height according to the engineering analyses and building code requirements for flood hazard areas. (g) There must be an adequate drainage system that removes floodwaters from the interior area of the crawlspace. The enclosed area should be drained within a reasonable time after a flood event. The type of drainage system will vary because of the site gradient and other drainage characteristics, such as soil types. Possible options include natural drainage through porous, well-drained soils and drainage systems such as perforated pipes, drainage tiles or gravel or crushed stone drainage by gravity or mechanical means. (h) The velocity of floodwaters at the site shall not exceed five feet per second for any crawlspace. For velocities in excess of five feet per second, other foundation types should be used. (8) Structures Located in Multiple or Partial Flood Zones. (a) When a structure is located in multiple flood zones on the community’s Flood Insurance Rate Maps (FIRM) the provisions for the more restrictive flood zone shall apply. (b) When a structure is partially located in a special flood hazard area, the entire structure shall meet the requirements for new construction and substantial improvements. LOC 50.05.011 Flood Management Area Page 22 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 v. Utilities. (1) All new and replacement utilities, such as sanitary sewer, storm drain, water, gas, and power service line shall be designed, located, and constructed to minimize flood damage. (2) All new and replacement water supply systems shall be designed and constructed to minimize infiltration of flood waters into the system. (3) All new and replacement sanitary sewer systems shall be designed and constructed to minimize infiltration of flood waters into the systems and discharge from the systems into flood waters. (4) On-site waste disposal systems (on-site sewerage systems) shall be located to avoid impairment to them or contamination from them during flooding consistent with the Oregon Department of Environmental Quality regulations. vi. Lake-Related Infrastructure. New lake-related infrastructure and substantial improvements to lake-related infrastructure shall be permitted provided appropriate permits have been obtained from state and federal agencies. vii. Alteration or Relocation of Watercourses. (1) The flood carrying capacity within the altered or relocated portion of said watercourse shall be maintained and maintenance shall be provided within the altered or relocated portion of said watercourse to ensure that the flood carrying capacity is not diminished. Also comply with LOC § 50.07.004.13.a.xiv, Alteration or Relocation of Watercourse, and LOC § 50.07.004.13.b. (2) As a condition of approval, the applicant shall submit either: (a) A proposed maintenance plan to assure the flood carrying capacity within the altered or relocated portion of the watercourse is maintained; or (b) Certification by a registered professional engineer that the project has been designed to retain its flood carrying capacity without periodic maintenance, and, as appropriate, notify the Federal Insurance Administration as a Letter of Map Revision (LOMR). (3) The applicant shall submit a Conditional Letter of Map Revision (CLOMR) when required under LOC § 50.07.004.13.b. Ensure compliance with all applicable requirements and this subsection. viii. Recreational Vehicles. Recreational vehicles placed on sites are required to: (1) Be on the site for fewer than 180 consecutive days (and comply with any more restrictive code requirements, e.g., LOC §§ 50.03.005.1 and 50.03.005.3); and (2) Be fully licensed and ready for highway use, be on its wheels or a jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanent attached additions. LOC 50.05.011 Flood Management Area Page 23 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 ix. Development Change in Base Flood Elevation. When development changes the base flood elevation, the applicant shall submit to FEMA a CLOMR/LOMR application (with a copy of the submitted application to the City) and pay any processing or application fees associated with the CLOMR/LOMR. The City Manager shall be under no obligation to sign the Community Acknowledgement Form, which is part of the CLOMR/LOMR application, until the applicant demonstrates that the project will or has met the requirements of this code and all applicable state and federal laws. x. Subdivisions/Manufactured Dwelling Parks and Subdivisions. All new subdivision proposals and proposals for manufactured dwelling parks and subdivisions shall: (1) Be consistent with the need to minimize flood damage. (2) Have public utilities and facilities such as sewer, gas, electrical, and water systems located and constructed to minimize or eliminate flood damage. (3) Have adequate drainage provided to reduce exposure to flood hazards. (4) Comply with no net loss standards in Section 7. xi. Encroachment within Floodway. Located within the special flood hazard areas established in the definition of "flood management area," subsection 3 of this section, Definitions, are areas designated as floodways. Since the floodway is an extremely hazardous area due to the velocity of the floodwaters which carry debris, potential projectiles, and erosion potential, the following provisions apply, in addition to other standards within this subsection 6: (1) Encroachments are prohibited, including fill, new construction, substantial improvements, and other development within the adopted regulatory floodway unless either: (a) Certification by a registered professional engineer is provided demonstrating through hydrologic and hydraulic analyses performed in accordance with standard engineering practice that encroachment would not result in any increase in the flood level during the occurrence of the base flood discharge; or (b) Encroachments within an adopted regulatory floodway that would result in an increase in base flood elevations; provided, that a Conditional Letter of Map Revision (CLOMR) is applied for and approved by the Federal Insurance Administrator, and the requirements for such revision as established under Volume 44 of the Code of Federal Regulations, Section 65.12 are fulfilled. conditional approval has been obtained by the Federal Insurance Administrator through the Conditional Letter of Map Revision (CLOMR) application process, all requirements established under 44 CFR 65.12 are fulfilled, and the encroachment(s) comply with the no net loss standards in Section 7. (2) If the requirements of subsection 6.b.xi(1) are satisfied, all new construction, substantial improvements, and other development shall comply with all other applicable flood hazard reduction provisions of this subsection, Flood Management LOC 50.05.011 Flood Management Area Page 24 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 Area Development Standards and subsection of this section, Standards for Construction. xii. Encroachment into Portions of Tryon, Springbrook and Oswego Creeks (Undesignated Floodway). Along Tryon Creek, Springbrook Creek, and Oswego Creek in areas where a floodway has not been designated, no new construction, substantial improvements, or other development (including fill) shall be permitted within Zones A1-30, AE, and unnumbered A Zones on the FIRM, unless it is demonstrated that the cumulative effect of the proposed development, when combined with all other existing and anticipated development, will not increase the water surface elevation of the base flood more than one foot at any point in the flood management area. When determined that structural elevation is not possible and where the placement of fill cannot meet the above standard, impacts to undeveloped space must adhere to the no net loss standards in section 6.a.iii. xiii. Standards for Shallow Flooding Areas. Shallow flooding areas appear on FIRMs as AO Zones with depth designations or as AH Zones with Base Flood Elevations. For AO Zones the base flood depths range from one to three feet above ground where a clearly defined channel does not exist, or where the path of flooding is unpredictable and where velocity flow may be evident. Such flooding is usually characterized as sheet flow. (1) Standards for AH Zones. Development within AH Zones must comply with the standards in this subsection, Flood Management Area Development Standards and subsection of this section, Standards for Construction, and adequate drainage paths are required around structures on slopes to guide floodwaters around and away from proposed structures. (2) Standards for AO Zones. In AO Zones, the following provisions apply in addition to the requirement in this subsection, Flood Management Area Development Standards and subsection of this section, Standards for Construction, and adequate drainage paths are required around structures on slopes to guide floodwaters around and away from proposed structures: (a) New construction and substantial improvement of residential structures and manufactured dwellings within AO Zones shall have the lowest floor, including basement, elevated above the highest grade adjacent to the building, at a minimum of one foot above the depth number specified on the FIRM or a minimum of two feet above the highest adjacent grade if no depth number is specified. For manufactured dwellings the lowest floor is considered to be the bottom of the longitudinal chassis frame beam. (b) New construction and substantial improvements of non-nonresidential structures within AO Zones shall either: (i) Have the lowest floor (including basement) elevated above the highest adjacent grade of the building site, at a minimum of one foot above the depth number specified on the FIRM or a minimum of two feet above the highest adjacent grade if no depth number is specified; or (ii) Together with attendant utility and sanitary facilities, be completely floodproofed to a minimum of one foot above the depth number LOC 50.05.011 Flood Management Area Page 25 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 specified on the FIRM or a minimum of two feet above the highest adjacent grade if no depth number is specified, so that any space below that level is watertight with walls substantially impermeable to the passage of water and with structural components having the capability of resisting hydrostatic and hydrodynamic loads and effects of buoyancy. If this method is used, compliance shall be certified by a registered professional engineer as stated in subsection 6.b.iv(3)(b)(iii) of this section, Nonresidential Construction. (c) Recreational vehicles placed on sites within AO Zones shall comply with subsection 6.b.viii of this section, Recreational Vehicles. (d) In AO Zones, new and substantially improved appurtenant structures must comply with the standards in subsection 6.b.iv(4) of this section, Appurtenant Structures. (e) In AO Zones, enclosed areas beneath elevated structures shall comply with the requirements in subsection 6.b.iv(6) of this section, Flood Openings. 7. STANDARDS FOR PROTECTION OF SFHA FLOODPLAIN FUNCTIONS The standards described below apply to all special flood hazard areas as defined in Section 3 Definitions. a. No Net Loss Standards i. No net loss of the three proxies for the floodplain functions mentioned in subsection 2.a is required for development in the special flood hazard area that would reduce undeveloped space, increase impervious surface, or result in a loss of trees that are 6- inches DBH or greater. No net loss can be achieved by first avoiding negative effects to floodplain functions to the degree possible, then minimizing remaining effects, then replacing and/or otherwise compensating for, offsetting, or rectifying the residual adverse effects to the three floodplain functions. Prior to the issuance of any development authorization, the applicant shall: (1) Demonstrate a legal right by the project proponent to implement the proposed activities to achieve no net loss (e.g., property owner agreement); (2) Demonstrate that financial assurances are in place for the long-term maintenance and monitoring of all projects to achieve no net loss; (3) Include a management plan that identifies the responsible site manager, stipulates what activities are allowed on site, and requires the posting of signage identifying the site as a mitigation area. ii. Compliance with no net loss for undeveloped space or impervious surface is preferred to occur prior to the loss of habitat function but, at a minimum, shall occur concurrent with the loss. To offset the impacts of delay in implementing no net loss, a 25 percent increase in the required minimum area is added for each year no net loss implementation is delayed. LOC 50.05.011 Flood Management Area Page 26 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 ii.iii. No net loss must be provided within, in order of preference: 1) the lot or parcel that floodplain functions were removed from, 2) the same reach of the waterbody where the development is proposed, or 3) the special flood hazard area within the same hydrologically connected area as the proposed development. Table 1 presents the no net loss ratios, which increase based on the preferences listed above. b. Undeveloped Space i. Development proposals shall not reduce the fish-accessible and egress-able undeveloped space within the special flood hazard area. ii. A development proposal with an activity that would impact undeveloped space shall achieve no net loss of fish-accessible and egress-able space. iii. Lost undeveloped space must be replaced with fish-accessible and egress-able compensatory volume based on the ratio in Table 1 and at the same flood level at which the development causes an impact (i.e., plus or minus 1 foot of the hydraulically equivalent elevation). (1) Hydraulically equivalent sites must be found within either the equivalent 1-foot elevations or the same flood elevation bands of the development proposal. The flood elevation bands are identified as follows: (a) Ordinary High Water Mark to 10-year, (b) 10-year to 25-year, (c) 25-year to 50-year, (d) And 50-year to 100-year (2) Hydrologically connected to the waterbody that is the flooding source; (3) Designed so that there is no increase in velocity; and (4) Designed to fill and drain in a manner that minimizes anadromous fish stranding to the greatest extent possible. c. Impervious Surfaces Impervious surface mitigation shall be mitigated through any of the following options: i. Development proposals shall not result in a net increase in impervious surface area within the SFHA, or ii. Use low impact development or green infrastructure to infiltrate and treat stormwater produced by the new impervious surface, as documented by a qualified professional, or iii. If prior methods are not feasible and documented by a qualified professional stormwater retention is required to ensure no increase in peak volume or flow and to maximize infiltration, and treatment is required to minimize pollutant loading. See subsection 7.e.iii. below for stormwater retention specifications. LOC 50.05.011 Flood Management Area Page 27 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 d. Trees i. Development proposals shall result in no net loss of trees 6-inches dbh or greater within the special flood hazard area. This requirement does not apply to silviculture where there is no development. (1) Trees of or exceeding 6-inches dbh that are removed from the RBZ, Floodway, or RBZ-fringe must be replaced at the ratios in Table 1. (2) Replacement trees must be native species that would occur naturally in the Level III ecoregion of the impact area. e. Stormwater Management Any development proposal that cannot mitigate as specified in subsections 7.c.i.-ii. must include the following: i. Water quality (pollution reduction) treatment for post-construction stormwater runoff from any net increase in impervious area; and ii. Water quantity treatment (retention facilities) unless the outfall discharges into the ocean. iii. Retention facilities must: (1) Limit discharge to match the pre-development peak discharge rate (i.e., the discharge rate of the site based on its natural groundcover and grade before any development occurred) for the 10-year peak flow using a continuous simulation for flows between 50 percent of the 2-year event and the 10-year flow event (annual series). (2) Treat stormwater to remove sediment and pollutants from impervious surfaces such that at least 80 percent of the suspended solids are removed from the stormwater prior to discharging to the receiving water body. (3) Be designed to not entrap fish and drain the source of flooding. (4) Be certified by a qualified professional. iv. Stormwater treatment practices for multi-parcel facilities, including subdivisions, shall have an enforceable operation and maintenance agreement to ensure the system functions as designed. This agreement will include: (1) Access to stormwater treatment facilities at the site by the City for the purpose of inspection and repair. (2) A legally binding document specifying the parties responsible for the proper maintenance of the stormwater treatment facilities. The agreement will be recorded and bind subsequent purchasers and sellers even if they were not party to the original agreement. (3) For stormwater controls that include vegetation and/or soil permeability, the operation and maintenance manual must include maintenance of these elements to maintain the functionality of the feature. (4) The responsible party for the operation and maintenance of the stormwater facility shall LOC 50.05.011 Flood Management Area Page 28 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 have the operation and maintenance manual on site and available at all times. Records of the maintenance and repairs shall be retained and made available for inspection by the City for five years. f. Activities Exempt from No Net Loss Standards The following activities are not subject to the no net loss standards in subsection 7.a; however, they may not be exempt from floodplain development permit requirements. i. Normal maintenance of structures, such as re-roofing and replacing siding, provided there is no change in the footprint or expansion of the roof of the structure; ii. Normal street, sidewalk, and road maintenance, including filling potholes, repaving, and installing signs and traffic signals, that does not alter contours, use, or alter culverts. Activities exempt do not include expansion of paved areas; iii. Routine maintenance of landscaping that does not involve grading, excavation, or filling; iv. Routine agricultural practices such as tilling, plowing, harvesting, soil amendments, and ditch cleaning that does not alter the ditch configuration provided the spoils are removed from special flood hazard area or tilled into fields as a soil amendment; v. Routine silviculture practices that do not meet the definition of development, including harvesting of trees as long as root balls are left in place and forest road construction or maintenance that does not alter contours, use, or alter culverts; vi. Removal of noxious weeds and hazard trees, and replacement of non-native vegetation with native vegetation; vii. Normal maintenance of above ground utilities and facilities, such as replacing downed power lines and utility poles provided there is no net change in footprint; viii. Normal maintenance of a levee or other flood control facility prescribed in the operations and maintenance plan for the levee or flood control facility. Normal maintenance does not include repair from flood damage, expansion of the prism, expansion of the face or toe or addition of protection on the face or toe with rock armor. ix. Habitat restoration activities. g. Riparian Buffer Zone (RBZ) i. Riparian Buffer Zone is measured from the ordinary high-water line of a fresh waterbody (lake; pond; ephemeral, intermittent, or perennial stream) or mean higher-high water of a marine shoreline or tidally influenced river reach to 170 feet horizontally on each side of the stream or inland of the MHHW. The riparian buffer zone includes the area between these outer boundaries on each side of the stream, including the stream channel. ii. Habitat restoration activities in the RBZ are considered self-mitigating and are not subject to the no net loss standards described above. iii. Functionally dependent uses are only subject to the no net loss standards for development in the LOC 50.05.011 Flood Management Area Page 29 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 RBZ. Ancillary features that are associated with but do not directly impact the functionally dependent use in the RBZ (including manufacturing support facilities and restrooms) are subject to the beneficial gain standard in addition to no net loss standards. iv. Any other use of the RBZ requires a greater offset to achieve no net loss of floodplain functions, on top of the no net loss standards described above, through the beneficial gain standard. v. Under FEMA’s beneficial gain standard, an area within the same reach of the project and equivalent to 5% of the total project area within the RBZ shall be planted with native herbaceous and shrub vegetation and designated as open space. Table 1 No Net Loss Standards Basic Mitigate Ratios Undeveloped Space (ft3) Impervious Surface (ft2) Trees (6”<dbh≤20”) Trees (20”<dbh≤39”) Trees (39” <dbh) RBZ and Floodway 2:1* 1:1 3:1* 5:1 6:1 RBZ-Fringe 1.5:1* 1:1 2:1* 4:1 5:1 Mitigation Multipliers Mitigation onsite to Mitigation offsite, same reach 100% 100% 100% 100% 100% Mitigation onsite to Mitigation offsite, different reach, same watershed (5th field) 200%* 200%* 200%* 200% 200% Notes: 1. Ratios with asterisks are indicated in the BiOp. 2. Mitigation multipliers of 100% result in the required mitigation occurring at the same value described by the ratios above, while multipliers of 200% result in the required mitigation being doubled. a. For example, if only 500 ft2 of the total 1000 ft2 of required pervious surface mitigation can be conducted onsite and in the same reach, the remaining 500 ft2 of required pervious surface mitigation occurring offsite at a different reach would double because of the 200% multiplier. 3. RBZ impacts must be offset in the RBZ, on-site or off-site. 4. Additional standards may apply in the RBZ (See subsection 7.g. Riparian Buffer Zone). LOC 50.05.011 Flood Management Area Page 30 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 8. Standards for Construction. The no net loss standards (see Section 7) and the following standards apply within the flood management area: a. Anchoring. i. All new construction, including manufactured homes, and substantial improvements in the flood management area shall be anchored to prevent flotation, collapse, or lateral movement of the structure, resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy. ii. All manufactured dwellings shall be anchored per subsection 6.b.iv(5) of this section, Manufactured Homes. b. Construction Materials and Method. i. All new construction and substantial improvements shall be constructed with materials and utility equipment resistant to flood damage. ii. All new construction and substantial improvements shall be constructed using methods and practices that minimize flood damage. iii. Electrical, heating, ventilating, air-conditioning, plumbing, duct systems, and other equipment and service facilities shall be elevated to or above the LODFE or shall be designed and installed to prevent water from entering or accumulating within the components and to resist hydrostatic and hydrodynamic loads and stresses, including the effects of buoyancy, during conditions of flooding. In addition, electrical, heating, ventilating, air-conditioning, plumbing, duct systems, and other equipment and service facilities shall: (1) If replaced as part of a substantial improvement, meet all the requirements of this section. (2) Not be mounted on or penetrate through breakaway walls. c. Tanks. i. Underground tanks shall be anchored to prevent flotation, collapse and lateral movement under conditions of the design flood. ii. Above-ground tanks shall be installed at or above the LODFE or shall be anchored to prevent flotation, collapse, and lateral movement under conditions of the design flood. 9. Flood Management Area Variance. a. Limitation of Variance. The issuance of a variance is for floodplain management purposes only. Flood insurance premium rates are determined by federal statute according to actuarial risk and will not be modified by the granting of a variance. b. Applicability. Variances may be issued for new construction and substantial improvements LOC 50.05.011 Flood Management Area Page 31 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 to be erected on a lot of one-half acre or less in size contiguous to and surrounded by lots with existing structures constructed below the base flood level, in conformance with the provisions of subsections 89.c.ii(3), 89.c.ii(7) and 89.d of this section. As the lot size increases beyond one-half acre, the technical justification required for issuing a variance increases. c. Variance Requirements. i. Variances to the requirements of this section shall only be allowed through variances authorized under this section. ii. To vary from the requirements of this section, the applicant shall demonstrate the following: (1) The variance is for new construction and substantial improvements to be erected on a lot contiguous to and surrounded by lots with existing structures constructed below the base flood level, in conformance with the provisions of subsections 89.c.ii(3), 89.c.ii(7) and 89.d of this section; (2) The variance is the minimum necessary, considering the flood hazard, to afford relief; (3) Within any floodway, no increase in flood levels during the base flood discharge would result (which may be demonstrated by a "no rise" analysis by a licensed engineer); (4) A showing of good and sufficient cause; (5) Failure to grant the variance would result in an exceptional hardship to the applicant; (6) Granting the variance will not result in increased flood heights, additional threats to public safety, extraordinary public expense, create nuisances, cause fraud on or victimization of the public, or conflict with existing laws or ordinances; and (7) The variance is for new construction and substantial improvements and for other development necessary for the conduct of a functionally dependent use, and the structure or other development is protected by methods that minimize flood damages during the base flood and create no additional threats to public safety. (8) Variances shall not be issued unless it is demonstrated that the development will not result in net loss of the following proxies for the three floodplain functions of SFHA: undeveloped space; pervious surface; or trees 6 inches dbh or greater (see Section 7.0 and associated options in Table 1). d. Notification to Applicant Upon Issuance of Variance. Any applicant to whom a variance is granted shall be given written notice that the issuance of a variance to construct a structure below the LODFE will result in increased premium rates for flood insurance and that such construction below the LODFE increases risks to life and property. Such notification and a record of all variance actions, including justification for their issuance, shall be maintained in accordance with LOC § 50.07.004.13, including LOC § 50.07.004.13.a.xii. LOC 50.05.011 Flood Management Area Page 32 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1 10. Calculations for Determining Substantial Improvements and Substantial Damage. a. For purposes of determining substantial improvements and substantial damage, the City shall base real market value estimates of the structure on one of the following methods selected by the applicant: i. The most recent real market building values listed in the County assessment records plus any improvements made since the last County appraisal. The value of recent improvements shall be based on building permit documents; or ii. An appraisal provided by the applicant conducted by a licensed real estate appraiser selected by the applicant. Such appraisal must provide building market value separate from land value. b. When determining if any reconstruction of an existing structure, or an alteration or addition to an existing structure is a substantial improvement, the City will consider construction improvement values cumulatively on a 12-month period after a final approval. Improvement values shall be based on standard methodologies used to determine construction costs per the FEMA Substantial Improvement/Substantial Damage Desk Reference (FEMA P-758). 11. Designation of Floodplain Administrator – NFIP Administration. The City Manager is hereby appointed to be the Floodplain Administrator to administer, implement, and enforce this section by granting or denying development permits in accordance with its provisions. The Floodplain Administrator may delegate authority to implement these provisions. The Floodplain Administrator shall perform the following administration requirements relating to participation and compliance with the federal National Flood Insurance Program: a. Flood Hazard Boundary Alteration. Notify the Federal Insurance Administrator in writing whenever the boundaries of Lake Oswego have been modified by annexation or Lake Oswego has otherwise assumed authority or no longer has authority to adopt and enforce floodplain management regulations for a particular area, to ensure that all Flood Hazard Boundary Maps (FHBM) and Flood Insurance Rate Maps (FIRM) accurately represent the community’s boundaries. Include within such notification a copy of a map of Lake Oswego suitable for reproduction, clearly delineating the new corporate limits or new area for which Lake Oswego has assumed or relinquished floodplain management regulatory authority. b. Substantial Improvement and Substantial Damage Assessments and Determinations. i. Conduct substantial improvement (SI) (as defined in subsection 3 of this section) reviews for all structural development proposal applications and maintain a record of SI calculations within permit files in accordance with LOC § 50.07.004.13.b. ii. Conduct substantial damage (SD) (as defined in subsection 3 of this section) assessments when structures are damaged due to a natural hazard event or other causes. iii.Make SD determinations whenever structures within the special flood hazard area (as established in this section) are damaged to the extent that the cost of restoring the structure to its before damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. LOC 50.05.011 Flood Management Area Page 33 of 33 2024 Code Amendments [National Flood Insurance Program (NFIP)-Endangered Species Act (ESA) Integration in Oregon, FEMA Model Ordinance] LU 24-0037 ATTACHMENT 1