HomeMy WebLinkAboutCouncil Report f-Res 06-30-23 CC Mtg 07-18-23 w-Attach AN 23-0005
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
Subject: Resolution 23-27, initiating proceedings to withdraw one parcel, 5022 Upper Drive
Tax Lot /Map 21E18AA00400, from the Lake Grove Water District.
Meeting Date: July 18, 2023
Report Date: June 30, 2023
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:
☐ Council Direction ☐ Consent Agenda
Staff Recommendation: Adopt Resolution 23-27, to initiate the withdrawal of one parcel
consisting of approximately 0.43 acres from the Lake Grove Water District.
Recommended Language for Motion: Move to adopt Resolution 23-27.
Project / Issue Relates To:
☐Council Goals/Priorities
☐Adopted Master Plan(s)
☒Not Applicable
ISSUE BEFORE COUNCIL
Shall the Council initiate a withdrawal proceeding pursuant to ORS 222.524, to withdraw one
parcel, 5022 Upper Drive, from the Lake Grove Water District (LGWD)?
If the withdrawal proceedings are initiated and later approved, it would result in the withdrawal
of approximately 0.43 acres of territory from the LGWD. A map of the property is shown in
Attachment A to Resolution 23-27 (Exhibit 1).
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503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
BACKGROUND
City Council approved the annexation of this property on April 3, 2018 (AN 17-0011). The
property was retained within the LGWD due to its location within the LGWD boundary and
Resolution 94-22 (Exhibit 2).
Resolution 94-22
The City Council adopted Resolution 94-22 on June 7, 1994 (Exhibit 2). This Resolution
acknowledges the LGWD district boundaries and agrees to retain annexed property within the
district unless “a cooperative agreement is entered into setting forth roles and responsibilities
for future planning and provision of water service within the area or including other measures
for enhancing the cost efficiency of providing urban services.” Resolution 94-22, Section 2.
This is being processed under ORS 222.524, which authorizes the City to withdraw territory
from service districts after annexation. This Council Report describes the reasons for the
withdrawal from the LGWD and provides background information.
DISCUSSION
This parcel is part of a 1.9-acre unified site plan for development by Habitat for Humanity
consisting of five vacant tax lots that have frontage on Boones Ferry Road and Upper Drive. The
site received previous approval for a 23-lot townhouse subdivision with a private street (LU 18-
0024). On November 14, 2022, the current owner of the property, Habitat for Humanity
Portland/Metro, applied for development review (LU 22-0059) to construct 23 townhomes.
The first public hearing before the Development Review Commission is scheduled for June 21.
There is both a 4-inch Lake Oswego water line and a 6-inch LGWD water line in Upper Drive. As
a part of the preliminary analysis for the future project on this site, it was found that the
property can be served by the LGWD and the City because of the two water lines at the parcel’s
frontage. Although this parcel of the development site lies within the LGWD’s service
boundary, the balance of the parcels within the site are served by Lake Oswego.
The City Engineering and LGWD staffs agree that withdrawal of the parcel from LGWD would be
a “[measure] for enhancing the cost efficiency of providing urban services” (per Resolution 94-
22) to the parcel because it is neither efficient nor cost effective to have two separate systems
serving the same development. Accordingly, LGWD staff indicated that they support removing
this property from their district1.
If the proposed withdrawal from the LGWD is approved, it would allow water service to be
provided for the entire development site by the City of Lake Oswego. Staff requests City
1 Email sent from Tammy Schalk (LGWD) to Erica Rooney, City Engineer dated 05/25/23.
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503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
Council initiation of the withdrawal proceeding because staff believes that withdrawal of this
property from LGWD is in the public interest for the reasons stated herein.
ORS 222.520 Annexation of less than entire district; assumption of obligations by city
conditional.
1. Whenever a part less than the entire area of a district named in ORS 222.510 becomes
incorporated as or annexed to a city …, after the incorporation or annexation…, the city
may cause the part to be withdrawn from the district in the manner set forth in ORS
222.120 ORS 222.120 (Procedure for annexation without election) or at any time after the
incorporation or annexation in the manner set forth in ORS 222.524 ORS 222.524
(Procedure for withdrawal of part of district from district). Until withdrawn, the part of
the district incorporated as or annexed to the city shall continue to be a part of the
district.
The City can withdraw this parcel from LGWD in a manner set forth in ORS 222.120 at the time
of annexation or at any time after the annexation in the manner set forth in ORS 222.520 or
ORS 222.524. It was not withdrawn at the time of annexation, so accordingly, withdrawal must
be per ORS 222.520 and 222.524.
The 4-inch Lake Oswego water line and the 6-inch LGWD water line in Upper Drive constitute a
duplication of services. As stated above, the City Engineering and LGWD staff agreed that it
would not be efficient or cost effective having two separate systems serving the same
development, and LGWD staff indicated that they would support removing this property from
their district.
Approving this Resolution for the City Council to initiate the withdrawal of this parcel from
LGWD does not bind the Council to approval, as the Council must find after the public hearing
that it meets the relevant criteria provided under ORS 222.120 (Procedure for annexation
without election).
2. The part withdrawn pursuant to subsection (1) of this section is not relieved from
liabilities and indebtedness previously contracted by the district. For the purposes of
paying the liabilities and indebtedness of the district, property in the part withdrawn shall
continue to be subject to assessment and taxation uniformly with property in the area
remaining in the district. The city of which it became a part shall, however, assume such
obligations if the obligations assumed do not bring the total of the city’s obligations
above any applicable limitations prescribed by statute. When the city assumes the
obligations it shall be liable to the district for one of the following, at the option of the
city:
a. The amount of taxes that otherwise would be extended each year for the obligations
against the property in the part withdrawn; or
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503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
b. Payment annually, as the bonds of the district that were outstanding on the effective
date of the withdrawal mature, of the same proportion of the outstanding bonds, and the
interest on the bonds, as the assessed valuation of the part withdrawn bears to the
assessed valuation of the entire district on the effective date of the withdrawal. After the
city agrees to make payments under this paragraph, neither the city nor the part
withdrawn shall be charged by the district with any future liabilities, obligations or
functions of the district.
The Clackamas County Department of Assessment and Taxation stated that there is no
outstanding bonded debt or any taxes due on the property. The Tax Account on this
property became exempt as of January 2022 at the time of purchase by the Habitat for
Humanity, a non-profit organization.
ORS 222.524 Procedure for withdrawal of part of district from district.
(1) If as authorized by ORS 222.520 the governing body of the city elects to cause the
withdrawal from a district …, it shall hold a public hearing on the question of such
withdrawal. At the hearing, the governing body of the city shall hear objections to the
withdrawal and shall determine whether such withdrawal is for the best interest of the city.
For the reasons stated herein, staff believes that the evidence will show at the public hearing
that the efficient distribution of City water is in the public interest.
(2) The governing body shall fix a date, time and place for the hearing and cause notice of the
date, time, place and purpose of the hearing to be published once each week for two
successive weeks prior to the date of the hearing in a newspaper of general circulation in the
city, and shall cause notices of the hearing to be posted in four public places in the city for a
like period.
Resolution 23-27 would initiate the notice and public hearing process.
(3) After the hearing, the governing body of the city may by ordinance declare that the part of
the district which was theretofore incorporated as or annexed to the city is withdrawn from
the district.
(4) The ordinance referred to in subsection (3) of this section is subject to referendum.
(5) The city may withdraw from all of such districts at the same time in one proceeding under
this section or may withdraw from each district in separate proceedings at different times.
(6) ***.
A form of ordinance complying with ORS 222.525(1 and 3-5) to withdraw the parcel from the
LGWD will be submitted to the Council at the time of the public hearing.
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503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
OPTIONS
There are two options available to the City Council
1. Approve initiation of the withdrawal proceeding and schedule a public hearing for
September 19, 2023.
2. Decline initiation of the withdrawal proceeding
FISCAL IMPACT
There are no direct fiscal impacts for the City initiating a public hearing for the withdrawal of
this property from the Lake Grove Water District.
RECOMMENDATION
Adopt Resolution 23-27, initiating the withdrawal of 5022 Upper Drive Tax Lot /Map
21E18AA00400 from the Lake Grove Water District.
EXHIBITS
1. Resolution 23-27, dated 06/30/2023
• Attachment A – Map, dated 06/08/23
2. Resolution 94-22 IGA between LGWD and City - Rev 06/07/94
3. Email from Tammy Schalk (LGWD) to Erica Rooney, City Engineer, dated 05/25/23
DRAFT: 06/30/23
Resolution 23-27 EXHIBIT 1/Page 1 of 2
RESOLUTION 23-27
A RESOLUTION OF THE CITY COUNCIL INITIATING THE PROCEEDINGS TO WITHDRAW
TERRITORY CONSISTING OF 0.43 ACRES LOCATED AT 5022 UPPER DRIVE IN THE CITY OF LAKE
OSWEGO FROM THE LAKE GROVE WATER DISTRICT, AND AUTHORIZING THE CITY RECORDER
TO GIVE NOTICE OF A PUBLIC HEARING (AN 23-0005).
WHEREAS, withdrawal of the territory from the Lake Grove Water District comprising
approximately 0.43 acres located at 5022 Upper Drive, shown on the map in Attachment “A”
and described below would constitute a withdrawal of territory under ORS 222.524 and;
WHEREAS, ORS 222.524 authorizes the governing body of a city to cause the withdrawal from a
water district, that portion of such district incorporated in, or annexed to the city and to hold a
public hearing on the question of such withdrawal; and,
WHEREAS, the City of Lake Oswego annexed the subject property but the property has not
been withdrawn from the Lake Grove Water District; and,
WHEREAS, the subject parcel is part of a larger unified site for development of a 23-lot
townhouse subdivision per approved LU 18e-0024 and pending LU 22-0059; and
WHEREAS, the City has received concurrence from the Lake Grove Water District staff that
withdrawal of the parcel would comply with Resolution 94-22; and,
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Owego that:
Section 1. The Council incorporates the above recitals.
Section 2. Pursuant to the provisions of ORS 222.524, the City Council herby initiates
proceedings to withdraw of territory (5022 Upper Drive) from the Lake Grove Water District as
depicted on Attachment A.
Section 3. The City Recorder shall give such notice as required by ORS 222.524 of a public
hearing to be held before the City Council concerning this proposed vacation on or after July 18,
2023.
Section 4. The Resolution shall be effective upon passage.
Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego
on the 18th day of July, 2023.
DRAFT: 06/30/23
Resolution 23-27 EXHIBIT 1/Page 2 of 2
AYES:
NOES:
ABSTAIN:
EXCUSED:
______________________________________
Joseph M. Buck, Mayor
________________________________
Dated:
ATTEST:
______________________________________
Kari Linder, City Recorder
APPROVED AS TO FORM:
____________________________________
Ellen Osoinach, City Attorney
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6/6/2023
Attachment A
Map and Lot #:21E18AA00400
0 75 150 225 300
Feet
WLG OC
WLG RMU
R-5
WLG R-2.5
R-7.5
WLG RMU
Removal of Territory from Lake Grove
Water District
AN 23-0005/Resolution
1
2
6
3
6
-27
Area to be removed
AN 23-0005 EXHIBIT 2/PAGE 1 OF 4
AN 23-0005 EXHIBIT 2/PAGE 2 OF 4
AN 23-0005 EXHIBIT 2/PAGE 3 OF 4
AN 23-0005 EXHIBIT 2/PAGE 4 OF 4
From:Rooney, Erica
Sent:Thursday, May 25, 2023 6:55 AM
To:Espe, Paul
Subject:FW: 5022 Upper Drive - Boundary Change to be served by Lake Oswego
Paul,
I have the LGWD concurrence in writing here, as noted below.
Erica Rooney, PE
Public Works Director & City Engineer | Public Works
City of Lake Oswego
PO BOX 369 | 380 A Avenue | Lake Oswego OR 97034
503-635-0264
Respect. Excellence. Trust. Service.
Stay Connected | Facebook | Instagram | Twitter | e-updates
From: Tammy . <tammy@lakegrovewater.com>
Sent: Wednesday, May 24, 2023 2:22 PM
To: Rooney, Erica <erooney@ci.oswego.or.us>; Bruce Goldson <thetaengllc@gmail.com>
Cc: Knepper, Todd <tknepper@ci.oswego.or.us>
Subject: Re: 5022 Upper Drive - Boundary Change to be served by Lake Oswego
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking
links, especially from unknown senders.
Hi Erica,
Yes we are in agreement with this. Bruce has been in contact with Ed to coordinate termination of our water line.
On Wed, May 24, 2023 at 2:01 PM Rooney, Erica <erooney@ci.oswego.or.us> wrote:
Tammy,
I know it has been a while since we talked about this matter, but I wanted to get us back on the same page.
Your team reached out to us in mid-August 2022 to talk about serving the proposed Habitat for Humanity project site
near Boones Ferry Road and Upper Drive. We responded back with an email on August 23, which is attached, and
then we also met virtually to discuss further and to explain why it made sense for this site to be served by Lake
Oswego. From my notes, where we left off was that we would do a boundary adjustment or “de-annexation” from
AN 23-0005 EXHIBIT 3/PAGE 1 OF 3
LGWD to Lake Oswego water, much like was done in 2018 when Joel Komarek assisted with cleaning up the service
boundary for the properties on Carmen Drive (Ordinance 2792 is attached).
Again, this makes the most sense given that the vast majority of the Habitat for Humanity development site will be
within existing Lake Oswego service area, and it would not be efficient nor cost effective to have two separate systems
serving the same development. Development and construction plans are in the final stages with the intention of
serving the site from Lake Oswego water mains.
With that said, the time has come for me to get this on the City Council agenda, and I want to confirm that you’re still in
agreement this is the direction we are moving forward.
o According to our Planning Department, we would have this on the July 18 City Council Agenda with a
Resolution to initiate proceedings to withdraw property (5022 Upper Drive) from LWWD.
o The final action to withdraw, an Ordinance, would be at either the September 5 or October 3 City
Council
Please let me know if you have any questions with this approach, and if not, please confirm this is acceptable to LGWD.
Thank you for your assistance on this matter as we work together to make this clear and reasonable for the
development of the Habitat for Humanity project.
Erica Rooney, PE
Public Works Director & City Engineer | Public Works
City of Lake Oswego
PO BOX 369 | 380 A Avenue | Lake Oswego OR 97034
503-635-0264
Respect. Excellence. Trust. Service.
Stay Connected | Facebook | Instagram | Twitter | e-updates
AN 23-0005 EXHIBIT 3/PAGE 2 OF 3
PUBLIC RECORDS LAW DISCLOSURE This e-mail is a public record of the City of Lake Oswego and is subject to public
disclosure unless exempt from disclosure under Oregon Public Records Law. This email is subject to the State Retention
Schedule.
--
Thank you,
Tammy Schalk
District Manager
Lake Grove Water District
(503)636-1617
fax (503) 635-5066
www.lakegrovewater.com
AN 23-0005 EXHIBIT 3/PAGE 3 OF 3