HomeMy WebLinkAboutAgenda Item - 2025-10-07 - Number 07.3 - IGA with LOSD for LORAC E r, COUNCIL REPORT
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Subject: Amendment to the Use Agreement with the Lake Oswego School District for the
competition pool at the Lake Oswego Recreation and Aquatics Center (LORAC)
Meeting Date: October 21, 2025 Staff Member: Martha Bennett, City Manager
Report Date: September 30, 2025 Department: City Manager's Office
Action Required Advisory Board/Commission Recommendation
❑X Motion ❑ Approval
❑ Public Hearing ❑ Denial
❑ Ordinance ❑ None Forwarded
❑ Resolution ❑X Not Applicable
❑ Information Only Comments:
❑ Council Direction
❑ Consent Agenda
Staff Recommendation: Authorize the Mayor to sign the amendment to the Use Agreement
with LOSD to realign payment amounts and dates
Recommended Language for Motion: I move to authorize the Mayor to sign the amendment
to the intergovernmental agreement between the City of Lake Oswego and Lake Oswego
School District No. 7J—Recreation and Aquatics Center Use and Lease Agreement
Project/ Issue Relates To:
Issue before Council (Highlight Policy Question):
❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑Not Applicable
DISCUSSION
The City and Lake Oswego School District (LOSD) signed an intergovernmental agreement
governing the use of the LORAC in February 2022. That agreement sets forth the roles, rights,
obligations and responsibilities and Parties for the use, operation, maintenance, repair and
replacement of the Lake Oswego Recreation and Aquatic Center (LORAC). The agreement also
included provisions for the amount that LOSD would pay for use of the competition pool. In
March 2023, the two parties updated the agreement. At that time, we anticipated that the
competition pool would be open during the 2024-2025 school year, and so there was a
Respect. Trust.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
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complicated formula for allocating operational costs because the City anticipated that the
District would use the Competition Pool for a portion of the 2024-2025 school year.
Additionally, at that time, fees for the District's use would be paid on a calendar year basis.
The attached amendment reflects two major changes:
1. It is more straightforward for both LOSD and the City if the fees are paid on the basis of
the fiscal year. Both entities have a July 1 to June 30 fiscal year. That also more closely
mirrors the school calendar.
2. The formula for pro-rating the first year is deleted as LOSD's use of the LORAC began
with the 2025-2026 school year.
Under the agreement, LOSD will pay the following amounts:
Fiscal Year 2025-2026 $204,000
Fiscal Year 2026-2027 $208,000
Fiscal Year 2027-2028 $212,000
During the third fiscal year, the City and LOSD will negotiate future payments based on the
actual costs of the hours used by LOSD.
FISCAL IMPACT
These amounts are currently reflected in the budget for Parks & Recreation for the biennium.
RECOMMENDATION
Staff recommends approval of this amendment.
ATTACHMENTS
1. Amendment to the Intergovernmental Agreement
Respect. Trust.
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN
CITY OF LAKE OSWEGO
AND
LAKE OSWEGO SCHOOL DISTRICT NO. 7J
THIS AMENDMENT is made effective this day of 2025, by and between the
City of Lake Oswego, an Oregon municipal corporation ("City") and Lake Oswego School District
No. 7J, also known as Clackamas County School District No. 7, a common school district of the
State of Oregon ("District") and amends the First Amended and Restated Intergovernmental
Agreement between City of Lake Oswego and Lake Oswego School District No. 7J — Recreation
and Aquatics Center Use and Lease Agreement.
RECITALS
A. Pursuant to an intergovernmental agreement, the City and District jointly funded the
construction of a Recreation and Aquatic Center (the "LORAC").
B. Construction of the LORAC was completed in June 2025.
C. The City and District signed an intergovernmental agreement governing the use and
lease of the LORAC on May 3, 2022. That agreement set forth, among other things, the
roles, rights, obligations and responsibilities and procedures of the Parties for the use,
operation, maintenance, repair and replacement of the Project upon completion of
construction and the method for sharing and providing for payment of those costs.
D. The City and District signed First Amended and Restated Intergovernmental Agreement
—Construction Agreement updating the cost share on March 8, 2023 ("Amended and
Restated Agreement").
E. The Use and Lease Agreement anticipated that the LORAC would open in calendar year
2024. The actual opening date was June 26, 2025. The District's use of the LORAC
began with the 2025-2026 school year.
F. The Use and Lease Agreement anticipated that it may be amended.
G. The City and District wish to make certain amendments to the Use and Lease Agreement
relative to the schedule of payments for the District's use of the facility including
payment amounts and timing.
This Amendment is entered into under the authority of ORS 190.010. No intergovernmental
entity is created under ORS 190.010(5).
THE CITY AND DISTRICT AGREE AS FOLLOWS:
1. Unless otherwise indicated, capitalized terms in this Amendment will have the meanings
given to them in the Use and Lease Agreement.
2. Section 6.2.3 of the Use and Lease Agreement is replaced in its entirety with the
following:
The District agrees to pay the City a minimum annual fee of$204,000 each fiscal year for
use and operational support of the Aquatic Facility. The City will invoice the District on
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November 15 of each fiscal year, and the District will remit payment to the City within
30 days of receipt. Over the first three fiscal years of this agreement, commencing on
July 1, 2025, the District agrees to pay the City:
Fiscal Year 2025-2026 $204,000
Fiscal Year 2026-2027 $208,000
Fiscal Year 2027-2028 $212,000
During Fiscal Year 2027-2028, the District and City will review the actual costs
associated with managing and operating the Aquatic Facility for the first two full years
of operations for the purposes of establishing the fees to be paid by the District in
future years. The City and District agree to complete this review prior to May 1, 2028
and to update this Agreement with the new payment schedule by July 1, 2028.
3. This Amendment, when executed, constitutes a modification to the Use and Lease
Agreement, and all provisions of the Agreement, except as modified above and by any previous
amendments, shall remain in full force and effect.
4. This Amendment may be executed in counterparts (including as a "pdf" or similar
attachment to an email) each of which will be deemed an original and, when taken together,
will be deemed to be one in the same Amendment.
CITY OF LAKE OSWEGO, LAKE OSWEGO SCHOOL DISTRICT No. 7J
an Oregon municipal corporation
Joe Buck, Mayor Chair
Date Date
Attest:
Laural Hawkins, City Recorder Attest:
Approved as to Form Approved as to Form
City Attorney District Legal Counsel
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