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HomeMy WebLinkAboutApproved Minutes - 2025-03-18 O s� CITY COUNCIL REGULAR MEETING H MINUTES March 18, 2025 ) _!?EGO. 1. CALL TO ORDER Mayor Buck called the regular City Council meeting to order at 3:01 p.m. on Tuesday, March 18, 2025. The meeting was held both virtually via video conferencing and in-person in the Council Chamber at City Hall 380 A Avenue. 2. ROLL CALL Present: Mayor Buck, Councilors Afghan, Mboup, Wendland Verdick, Corrigan, Rapf. Staff Present: Martha Bennett, City Manager; Ellen Osoinach, City Attorney; Kari Linder, City Recorder; Melissa Kelly, Library Director; Courtney Simms, Associate Planner, Madison Thesing, Deputy City Manager; Shawn Cross, Finance Director; Erica Rooney, City Engineer I Public Works Director; Nell Diamond, Management Analyst; Erik Olson, Long Range Planning Manager Others Present: Sergey Tarasov, Consultant with FCS Group via video conferencing 3. PLEDGE OF ALLEGIANCE Mayor Buck led the Council in the Pledge of Allegiance. 4. PRESENTATIONS 4.1 Proclamation — Day of Nowruz I Persian New Year. Councilor Afghan read the Proclamation declaring that March 21, 2025, was the Day of Nowruz in Lake Oswego. The full proclamation was available on the City's website. 4.2 Proclamation —Arbor Month. Mayor Buck proclaimed the month of April as Arbor Month in Lake Oswego. The full text of the proclamation and information regarding events and activities to celebrate Arbor Month were available on the City's website and would be included in the April issue of Hello LO. City Council Regular Meeting Minutes Page 1 of 12 March 18, 2025 4.3 Lake Oswego Reads 2025. Director Kelly presented a PowerPoint summarizing the selected book, How to Read a Book by Monica Woods, and the 32 events planned for the 19th Annual Lake Oswego Reads program. Additional information was available on the Library's website and social media. Mayor Buck thanked Director Kelly for the presentation and for her work, along with the work of the Library community, supporters, and volunteers who had kept the Lake Oswego Reads program running for nearly two decades. 5. PUBLIC COMMENT • Cherie Dupuis, resident, said she had been attending City Council meetings intermittently and was delighted in the intelligence shown in the discussions, in priorities, and openness to public comment, but grimaced when she heard inclusion mentioned as a partisan issue instead of simple humanity. Asking people of color if they could be their true selves in LOC was the starting question. • Jeff Gudman, Oswego Heritage Council, invited Councilors and members of the public to attend a new exhibit commemorating 50 years of Vietnamese culture in Oregon. The exhibit, titled The Story Begins, was curated by the Vietnamese Cultural Arts Alliance and would open April 5, 2025, at the Oswego Heritage Council. • Dianne Cassidy, resident, continued her comments from the previous Council meeting, expressing concern that the City Council 2025 goals showed partisanship and political bias. • Sylvia Drill, resident, expressed concern about invasive species killing trees, especially vines wrapping around the trees on public and private property. She asked whether a coalition or group existed to address the issue. Mayor Buck responded that a stewardship program existed, with volunteers who had adopted natural areas and held work parties to remove invasive species from trees. City staff would follow up with Ms. Drill. 6. CONSENT AGENDA 6.1 Approving the Work Plans for the 2025 City Council Goals & Initiatives. 6.2 Ordinance 2956, An Ordinance of the City Council of the City of Lake Oswego Amending LOC Chapter 20 Licenses, to Establish an Additional Recycling Collection Services License. 6.3 Authorizing an Intergovernmental Agreement with Clackamas County for the Plastic Pollution and Recycling Modernization Act. END CONSENT Councilor Mboup moved to adopt the Consent Agenda. Councilor Verdick seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Afghan, Mboup, Wendland, Verdick, Corrigan, and Rapf voting `aye,' (7-0). City Council Regular Meeting Minutes Page 2 of 12 March 18, 2025 7. ITEMS REMOVED FROM CONSENT AGENDA No items were removed from the Consent Agenda. 8. COUNCIL BUSINESS 8.1 AP 24-05, Appeal of Type II Tree Removal Application to remove 1 tree to construct the required public improvements as part of a new Cottage Cluster middle housing development. Attorney Osoinach clarified that no legislative action was needed. The item was a continuation of Council's deliberations, and in response to Council's request, the City Engineer would address questions about the alley width determination and whether the tree could be saved. Councilor Rapf would recuse himself from deliberation and the vote, as he had not been present at the hearing. Director Rooney presented the Council report via PowerPoint, summarizing the tree's location and required protection zone. Constructing the alley would impact the tree's roots and the arborist's opinion was that the chances of the tree living are slim because any road on top of the roots, no matter the width, would have a negative impact. The report provided background on City standards and explained the desire for a fully improved 20-foot right-of-way to match other alleys in the neighborhood and maintain consistency in new development. Ms. Simms added that the maximum allowable disturbance within the tree protection zone was 25 percent. Only about 9.5 feet of alley width could be added, which would not meet Fire Code or engineering design standards. Even if the alley were built to a narrower width, there was no guarantee the tree could be saved. The determination was made by Staff after reviewing all the information in the record. Councilor Afghan asked if the tree protection had to be on the alley side or only on the construction side. Ms. Simms clarified that the tree protection zone was the circumference around the tree, calculated as one foot for every inch of the tree's DBH to protect the entire surrounding area, as the impact would occur on all sides of the tree. Councilor Afghan confirmed with Staff that the grade would change 10-inches. In his experience, the grade could be changed up to two inches every year or two years without impacting the roots and tree, but 10 inches was different. Attorney Osoinach noted that Councilor's Afghan's comments were not in the record and instructed the Councilors to make their decision based on what was in the record. Councilor Mboup noted that hemlocks could live to be 800 years old and asked if there was any way to save the tree without violating the Code. Ms. Simms replied that if the City followed tree protection best practices according to the arborist's report, the resulting alleyway width would be 9.5 feet; however, that alley width was not acceptable under the Development Code, Engineering Standards, and Fire Code. Director Rooney said the construction alone would impact the tree protection zone so there was no guarantee the tree would live. Councilor Mboup asked if there was any way for the alley to go around the tree. Director Rooney noted the placement of the alley would still impact the area where there were roots and the 9.5-foot-wide alley was not adequate according to City standards. City Council Regular Meeting Minutes Page 3 of 12 March 18, 2025 Councilor Mboup moved to tentatively affirm the Commission's decision to approve the tree removal application 499-24-001844-TREE, with conditions of approval and direct staff to present findings, conclusions, and an order finalizing the Council's tentative decision on April 1, 2025. Councilor Verdick seconded the motion. Councilor Mboup noted that people had worked hard to save the tree, but the City Engineer said a narrower alley would violate Code and even if the City did go that route, the arborist's opinion was that the tree may still die. Councilor Afghan believed the answer Staff brought back would have been different had Council asked what it would take for the developer and Engineering Department to save the tree. Mayor Buck responded the answer was a small alley that did not meet the Fire Code. Councilor Afghan said that when envisioning the tree and its canopy, he struggled to see how the alley was blocked and asked what prevented full 20-foot access if the tree was at the property line. Director Rooney clarified that repeated driving or cutting into the tree's roots with heavy machinery would cause both short and long-term damage and likely kill the tree. The canopy was not the problem. Councilor Afghan asked whether the City forecasted the traffic in the area would increase and therefore damage the tree roots. Attorney Osoinach believed the record reflected that the anticipated traffic would be garbage trucks. Ms. Simms clarified that alleyway traffic would include cars as well as fire and emergency access. She confirmed there would be construction vehicle activity during construction of the site. Councilor Afghan added that if the tree were going to die, he would like it to die on its own rather than cutting it down. A roll call vote was held, and the motion passed, with Mayor Buck and Councilors Wendland, Verdick, Corrigan, voting `aye,' Councilors Afghan and Mboup voting (no), and Councilor Rapf abstaining (4-2-1). Mayor Buck commented that he spoke with an arborist on an unrelated matter who noted that many of the trees that fell during the recent storm had roots showing one of two diseases caused by development. The arborist also commented that Lake Oswego had stringent standards for protecting trees during development. 8.2 Legislative Update. Ms. Thesing noted the legislative session was one-third completed and approaching the first deadline. She updated on three advocacy areas as follows: Housing bills were moving quickly, including the governor's bill and technical bills related to shot clocks, preemptions, and design standards. The City would provide testimony, details of which would be sent to the Council via email. Recreational immunity, one of the City's top priorities, had passed the Senate unanimously and was moving to the House. Staff had no concerns about the bill which was expected to pass. City Council Regular Meeting Minutes Page 4 of 12 March 18, 2025 Senate Bill 916 would allow striking employees to receive unemployment benefits after two weeks. The City had concerns about longer strikes and budget impacts. The School District was also concerned about the bill, and Ms. Thesing was reaching out to its Staff contact as the bill gained Senate support. Ms. Thesing provided additional context on the housing bills, noting State law mandated how quickly permits must be processed through the planning process. Under the proposed legislation, that timeline pressure would extend into the engineering review of design and standards, effectively creating a shot clock. The concern was that the timeline may not be met, despite City Staff currently processing permits quickly. Noncompliance could have consequences, though it was unclear whether that would fall under the Housing Accountability and Production Office. In addition, other building design standards were being drafted and, if approved by the State, would apply regardless of local community circumstances. Mayor Buck noted the proposed legislation regarding design standards would impact the City's ability to exact on public improvements. Ms. Thesing said she would send a follow-up email with a summary that included bill numbers and testimony letters. Councilor Wendland said if all housing changes went through, it would limit the City's ability to save trees, period. Citizens should be concerned because the State was making the rules, and Salem would soon take away the City's right to make local decisions. Now was a good time for residents to contact their state representative. Ms. Thesing said with shot clock legislation, some appeals and hearing processes would have to be removed due to lack of time. Mayor Buck said he did not believe Lake Oswego's senator was a sponsor of the strike and noted that the legislation would require the local government to pay the unemployment benefit for striking workers on top of paying for replacement workers. The legislation would hit school districts and local government hard, and it could have huge budget impacts. Councilor Wendland noted that it would also affect the private sector, and companies would not invest in Oregon. Mayor Buck said other states had similar provisions for the private sector, but Oregon would be the only state with the provision for its public employees. 9. PUBLIC HEARING 9.1 Resolution 24-29, A Resolution of the City Council of the City of Lake Oswego Amending Resolution 19-03, Regarding Fees and Minimum Insurance Limits for Utilities Operating in the Public Rights-of-Way; and Ordinance 2931, An Ordinance of the City Council of the City of Lake Oswego Amending LOC Chapter 51 (Utility Facilities in Public Rights-of-Way), to Clarify and Improve Definitions Licensing and Reporting Requirements, and the Enforcement Process Regarding Utility Providers Using and Public Rights-of-Way. Attorney Osoinach reviewed the public hearing procedures and asked if any Councilor had any financial conflicts of interest. None were heard. City Council Regular Meeting Minutes Page 5 of 12 March 18, 2025 The City had been working on the Ordinance and Resolution for quite some time with a consultant, the utilities, and the industry providers, and the City had received extensive comments from the wireless industry. There were respectful disagreements with some of the industry's policy positions, but the Staff wanted additional time to consult on two specific areas: radio frequencies and the distinction between small cell wireless and larger wireless providers. Staff recommended the Council continue the hearing following testimony and questions until May 6, at which time Staff could return to answer questions and address the two concerns. Director Rooney presented the report via PowerPoint, explaining that the City had been working to bring its Code and regulations up to current federal, state, and local law, particularly regarding franchise utilities in the public right-of-way. The proposed ordinance focused on updating Chapter 51 to improve readability, clarify language, and update fee structures for both major and minor private utilities using the right-of-way, such as PGE, Comcast, Ziply, Crown Castle, and Verizon. The effort involved managing conflicts between City infrastructure and private utilities sharing limited space with the goal of aligning the City's Code with other jurisdictions for fairness and consistency. Some minor providers opposed language requiring their sublessors to pay rent, and recent comments from groups like CTIA, Crown Castle, and WPG brought clarity to the concerns. Although the original recommendation was to move forward, the City was open to a four-to-six- week extension to revisit some language and address recent feedback. She clarified "small" referred both to the size of the company and amount of revenue generated by the company. The City received approximately $3.1 million per year from franchise utilities, excluding Republic Services. Of that amount, $125,000 to $150,000, or about five percent, came from the minor providers. The major providers—PGE, NW Natural Gas, and Comcast—accounted for approximately 95 percent of franchise utility revenue. Ms. Diamond stated the idea was for the City to produce an equitable solution that was within FCC law and congruent with what other cities were doing. The City thought it was moving in that direction, but there were still issues that needed more time to evaluate in order to be good community partners and work with the utilities. Public Testimony: Lelah Vaga, Verizon, summarized the concerns and suggestions included in the written letter of testimony. Ms. Vaga responded to questions from Councilors as follows: • Verizon's assets in the City were largely macro site facilities located on private property. The wireless industry had not placed many assets in the public right-of-way because the 7 percent gross revenue fee had made it cost prohibitive. As a result, deploying infrastructure in Lake Oswego had been a challenge, and that lack of right-of-way siting was one reason for the City's poor cell service. To her knowledge, there were no small wireless facilities currently in Lake Oswego, though it would not have surprised her to see build plans in the future, as Verizon was committed to improving both coverage and capacity. • Small wireless facilities involved placing smaller equipment in the right-of-way on utility or light poles, in contrast to traditional macro sites, which were typically rooftop installations or tall towers with six to twelve large antennas ranging from four to eight feet in height. These macro sites served as the coverage layer to ensure basic connectivity but became bogged down as network traffic increased. Small cells addressed this by using lower power equipment positioned closer to the end user, typically serving areas within a few hundred feet. This City Council Regular Meeting Minutes Page 6 of 12 March 18, 2025 offloaded demand from the macro sites and allowed them to better serve broader areas. Given the exponential growth in data usage, layered coverage and capacity had become increasingly necessary to meet user demand. • Small or micro coverage assets were typically placed on PGE poles or attached to City-owned streetlight poles. To her knowledge, Verizon did not have any such facilities in Lake Oswego. • The industry appreciated the City's responsiveness in aligning the per-site fee structure with FCC regulations, but were concerned about how the fee was applied. For example, if an infrastructure company such as Crown Castle built a small cell facility and Verizon was the carrier utilizing that facility, then under the current draft, both Crown Castle and Verizon would pay the same fee for the same utility. This effectively doubled the cost of operating the facility. • There were many complexities involved in tower ownership and financing, which contributed to why wireless companies might lease equipment instead of installing it themselves. Crown Castle and similar organizations built and managed sites efficiently and absorbed the expense and operational responsibilities. That model originated with macro facilities and extended to small cell infrastructure. Similar to a business owner who might lease rather than own the property where they operate, a wireless carrier might not want to own the structure providing the service. While carriers licensed frequencies from the FCC and operated the wireless communication services, they often chose to lease the infrastructure housing those services. • Typically in the region, wireless was regulated on a per-site basis with definitions in the fee resolution that matched the associated ordinance. The wireless industry had been in conversation with jurisdictions throughout the region, including a recent work session with the City of Portland where industry members met with Staff and the Oregon Department of Transportation to review language and work toward consistency. Many of the comments included in her letter and in the CTIA letter were aimed at achieving that consistent language. • Regarding regulation in the right-of-way, there was no objection to the license model over the franchise model, and the industry understood the intent to simplify administration. The primary concern was ensuring that local ordinances remained consistent with FCC regulations. As these ordinances effectively replaced franchise agreements, they were also reviewed by attorneys and risk management professionals, since some provisions typically handled in franchise agreements were now incorporated into the Code. • In the past, if small wireless facilities were to be located in Lake Oswego, the understanding was that the Code subjected carriers to a gross revenue fee as soon as equipment was placed in the right-of-way. In her professional opinion that had contributed to the lack of investment in such facilities, as it became a matter of cost and competition for national funding. Large corporations allocated funding to areas where they could build, and internal processes within wireless carriers favored projects with streamlined permitting and lower costs. If a project had a higher cost or an uncertain process, it was less likely to receive funding than one in a more predictable jurisdiction. • The Ordinance, as she understood the intent of City Staff, introduced a per-site fee compliant with FCC regulations that could support additional investment in Lake Oswego by opening access to right-of-way infrastructure and prioritizing structures in the right-of-way within the broader wireless Code could further support deployment, especially in large residential areas. Crown Castle raised a valid concern about the double fee structure in which both the infrastructure provider and the wireless carrier paid the same fee for the same site. Such a structure made it harder for those entities to operate and, in turn, made it harder for carriers to use services that might expedite equipment installation. City Council Regular Meeting Minutes Page 7 of 12 March 18, 2025 • Over the past five years, the network radio protocols that allowed for more efficient use of the existing 4G spectrum had rolled out. Often, when a phone displayed "5G," it was using the same frequencies as 4G, but with improved efficiency. The ultra-high-speed millimeter wave technology that enabled gigabyte speeds required close proximity—typically between 200 and 1,000 feet depending on the equipment—and fell under the broader umbrella of fifth generation technology. Setting terminology aside, the core issue was that expanding opportunities to place more wireless facilities improved both coverage and capacity by supporting a dual-layer model: macro sites provided wide-area coverage, while smaller facilities targeted high-traffic areas to offload the macro sites. However, small cells had not seen the level of adoption anticipated five years ago, due to a range of factors that included operational costs and regulatory barriers to entering and operating in the right-of-way. The wireless industry responded by retooling and developing complementary alternatives for 5G deployment. Because industry and technology evolved so rapidly, the approach had shifted as plans changed and new methods were deployed. • Meridee Pabst, Wireless Policy Group (WPG), via video conferencing, stated WPG supported a continuance that would allow further discussion between Staff and wireless industry representatives. Some issues became complex in terms of what was required by federal law, what constituted a small cell, and how other communities were regulating them. With additional time, agreement could be reached on minor amendments to the proposal. She reviewed three edits referenced in WPG's previously submitted written testimony and noted that the understanding of the City's intentions in 2022 was influencing how the current proposal was being interpreted. Mayor Buck confirmed there was no further public testimony and closed the public hearing. Councilor Mboup noted one letter described the City's fees as prohibitive and unlawful, and asked for clarification on that point. Attorney Osoinach replied that Lake Oswego, along with the League of Cities and the City of Portland, had a respectful disagreement with the industry's position on what it called double taxation. Cities, as right-of-way holders, believed they were entitled to recover fees from multiple users occupying space. The definition of small cell wireless was a federal one, and while the City may not change its definition, it would be wise to revisit it with the industry given the rapid evolution of deployment. In 2022, the divide between the industry and the City had been much greater and some of the current comments seemed aimed more at asking the City to clarify its intent than asserting that the City's regulations conflicted with federal law. While the City did not believe there was a conflict, it took seriously any industry concern that a local definition might be preempted. While the City stood by its legal position on fees, it was open to further discussion with the industry over the next six weeks to better understand differences and consider whether changes or clarifications were appropriate. Councilors supported a continuance to allow more time to address industry feedback and refine the proposed ordinance. Several acknowledged that current cell service in Lake Oswego was poor and believed it was reasonable for the City to expect fair compensation from providers using the public right-of-way, though fee structures carefully to determine whether payments from infrastructure providers and carriers constituted double fees or reflected separate revenue streams. Councilors also expressed a desire for Lake Oswego to align with other jurisdictions while maintaining a regulatory environment that encouraged improved service. One suggestion was to consider including a future City Council goal focused on positioning the City to receive exceptional wireless service. City Council Regular Meeting Minutes Page 8 of 12 March 18, 2025 Mayor Buck moved to reopen the public hearing and continue the public hearing to the May 6 meeting. Councilor Corrigan seconded the motion. A voice vote was held, and the motion passed, with Mayor Buck and Councilors Afghan, Mboup, Wendland, Verdick, Corrigan and Rapf voting `aye,' (7-0). Council recessed from 4:40 p.m. to 4:53 p.m. 10. STUDY SESSIONS 10.1 Foothills Refinement Plan Update (PP 25-005). Mr. Olson presented the Council report via PowerPoint, providing background on the Foothills District and reviewing previous planning efforts, including the 2012 Framework Plan and the repealed Urban Renewal Plan, which was being revisited now due to the City's plan to replace the existing Tryon Creek Wastewater Treatment Facility with a new facility on an adjacent site, which altered street network assumptions and created new redevelopment opportunities. The presentation outlined the scope of work in the request for proposal issued March 7, summarized the $745,000 Metro grant to support the effort, and reviewed tentative project milestones. The final framework plan was expected to be adopted by the end of 2026, with implementation amendments adopted by the end of 2027. Councilor Wendland asked whether the Metro grant came with strings attached. Mr. Olson replied that the City had to follow the grant agreement, including deadlines and reporting protocols, but Metro had not provided direction on development. Metro appreciated the focus on community engagement and shared those goals. City Manager Bennett commented that the area was within the Town Center and would be subject to the regional framework plan for intensity. Metro was interested in helping cities meet housing production strategies on existing land and awarded the grant to explore whether Lake Oswego could meet its targets without expanding the urban growth boundary. She was not concerned about a hidden Metro agenda and said Metro would expect the City to meet standards it had already adopted. Councilor Wendland said the area was an open canvas and suggested the City not steer community input toward a predetermined target. He supported housing but wanted flexibility and hoped the consultant would have the capacity to consider a range of possibilities and was not focused solely on a housing target. City Manager Bennett noted that most of the 2012 development was mixed-use and questioned whether that much retail space was still appropriate. The City should stay open to alternatives and reconsider assumptions made in 2009 and 2010. Councilor Wendland commented that the City needed to be mindful of private funding. City Manager Bennett stated that the Urban Renewal Plan and consultant RFP included market feasibility, and the City would not be able to form an urban renewal district unless development followed. Mr. Olson confirmed that cost estimating was included and said the Housing Production Strategy identified a project for tax increment financing in this area. The City had established its own boundaries and needed to work within them. Not all development needed to be affordable City Council Regular Meeting Minutes Page 9 of 12 March 18, 2025 housing, but some commitments were already in place. Councilor Wendland replied that the project should not be marketed as an affordable housing effort, as that could limit the broader vision. Mr. Olson said the RFP was written to seek consultants with a range of skills, not just urban design. Engineering knowledge would be critical, and transportation barriers had to be addressed for redevelopment to occur. Councilor Afghan expressed support for the project and asked what kind of outcome the City could be proud of in 30 years. He raised concerns about residential proximity to the wastewater treatment facility. Mr. Olson responded that integrating the facility into a broader vision would be necessary. The project required attention to both fine details and a larger vision that would be clear and viable. Mayor Buck noted that the 2012 plan focused on connecting Foothills and downtown, noting the area remained a valuable but hidden resource. This effort would involve evaluating infrastructure, feasibility, and a range of ideas. Constraints from 2012 still existed, and the City should look at improvements to support development. He recommended forming a visionary committee that combined local perspective with professional expertise and said the previous plan failed politically, not technically. He supported the reintroduction of the plan and the future urban renewal district and said the work would extend beyond the current Council. Mr. Olson said the area could become a gateway to the Willamette River. The site had constraints but was directly adjacent to downtown and located on the river. 10.2 Wholesale Water Rates Adjustments and Proposal. Director Rooney introduced members of the City's consulting team and provided background information on the Lake Oswego-Tigard water treatment plant and the other water districts and cooperatives within the city that purchased water from the LO-Tigard plant and paid wholesale water utility rates. Mr. Tarasov presented the report via PowerPoint, reviewing the current wholesale rate methodology adopted in 2019 that had not been adjusted for inflation, noting wholesale water rates accounted for approximately 1 percent of annual revenues. The presentation detailed an alternative methodology that would allocate costs based on peaking. Historical system utilization showed that most wholesale customers used the system during summer peak periods, when resources were constrained and operating at highest capacity. Council's feedback was requested on whether to maintain the current methodology or adopt the alternative that accounted for peaking, whether to include an automatic annual inflation adjustment effective July 1 tied to an accredited inflationary index, and whether to proceed with standardizing interlocal agreements to avoid future delays. Questions from Councilors were addressed as noted: • Mr. Tarasov confirmed the alternative rate accounted for peaking, but the customer would pay the same rate year-round. Director Rooney added that the rates were tiered based on cubic feet used. Director Cross clarified the base rate before Council was for bulk water City Council Regular Meeting Minutes Page 10 of 12 March 18, 2025 customers, not residential customers. The base rate reflected the City's efforts to recoup the cost of $10,000 water meters over 20 years. • City Manager Bennett clarified that the rates tried to account for the fact that the City's infrastructure was oversized for the peak. Because wholesale customers used the majority of their water in the summer, the City wanted to charge for the size of the infrastructure needed to deliver that much water during that time. In the winter, the City used half or a third of the water it used in the summer, but its pump stations, pipes, and reservoirs had to be much larger to accommodate peak use. Director Cross noted the rate charged came down to whether Council believed the customer should be paying for the oversize of the pipe. • Director Cross stated that Tigard paid its pro rata share based on actual water use. The City measured total production, and the amount Tigard pulled, and Tigard paid its portion of the plant, intake, and related operating costs on an annual basis. • Mr. Tarasov said the rate methodology based on peaking would result in $60,000 more revenue than the current methodology. The total revenue was a couple hundred thousand dollars. City Manager Bennett clarified the City could not calculate the average difference for a household in one of the bulk water districts because each water district set its own rates and the portion of water supplied by Lake Oswego varied by utility. There was no way to determine the specific impact on a district's customers. • Director Rooney said the ultimate goal of the water treatment plant was for all wholesale customers to eventually become retail customers. Master planning and facility sizing assumed that everyone within the urban services boundary would be the City's responsibility to serve as typical retail customers. The timeline was uncertain—whether 10, 20, or 30 years—but the system was built to serve the area from 1-5 to the river in anticipation of that long-term responsibility. Mayor Buck confirmed Councilors were in favor of the peaking rate methodology and adjusting for inflation. Director Rooney said Staff would return in two to four weeks with a resolution identifying the alternative method and incorporating rates based on that methodology. Because the City had different IGAs with each water district dating back to the 1960s, Staff needed to determine whether the City could apply the inflation adjustment annually or would need to notify each district of a rate increase each year. Hopefully, that would not be a newly created process but one that could be completed each year through the master fees and charges process. 11. INFORMATION FROM COUNCIL Mayor Buck, Councilors Wendland, Mboup, and Verdick discussed their recent trip to Washington, D.C. with area students, sharing memories and highlights of the trip. 12. REPORTS OF OFFICERS City Manager Bennett said Ms. Thesing had sent Councilors an email during the meeting to let them know that Senate Bill 916 was going to come out of committee this week and head to the City Council Regular Meeting Minutes Page 11 of 12 March 18, 2025 Senate floor. If the Council did wish to speak to Senator Wagner, now was the time to contact him. She highlighted specific incidents over the past week that required action from the Fire and Police Departments and thanked those responsible for keeping residents safe. She would be in Vancouver, Washington, on Wednesday and Thursday for the Northwest Regional Managers Meeting and would return Friday afternoon. Megan Phelan would serve as City Manager pro tern on Wednesday and Director Rooney on Thursday. 13. ADJOURNMENT Mayor Buck adjourned the City Council meeting at 6:12 p.m. Respectfully submitted, &513k4‘.. Kari Linder, City Recorder Approved by the City Council on April 15, 2025. Joseph M Buck, Mayor City Council Regular Meeting Minutes Page 12 of 12 March 18, 2025